M&M Investor Presentation

Transcription

1 M&M Investor Presentation June 2013 Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved. 1

2 Three Speed Economies Phrase Courtesy : Christine Lagarde 2

3 All around us US on Path of Growth Europe - Contraction External Factors Emerging Markets - Growing 3

4 All around us India story Policy Action Investment Slowdown Political Uncertainty GDP Growth Cost of Borrowing Current Account Deficit FY 2014 will be crucial one to watch 4

5 Double-Edged Sword Global Domestic 5

6 The Mahindra Group comprises 10 business sectors with a presence in 18 Industries Business Sectors Automotive & Farm Equipment Financial Services Hospitality 2 Wheeler Aftermarket Systech Information Technology Real Estate Defence Systems Mahindra Partners (Steel, Retail, Trade, Logistics, Boats, Energy, Media) 6

7 Mahindra Group Business Leadership Market leader in Utility Vehicles in India Market leader in Tractors in India. Number One Global tractor manufacturer (Single legal entity) Mahindra Finance : Leader in rural financing Tech Mahindra : Leader in Telecom Software Mahindra Holidays : Leader in Time Share 7

8 Mahindra & Mahindra Ltd. Company Overview M&M is one of India's leading utility vehicle and tractor manufacturers Market leader for FY13 both in UVs (market share 47.7%) and in tractors (market share 40.2%) Equity Structure of the company 25.2% Promoter & Promoter Group, 74.8% Public (44.2% Foreign) As at March 31, 2013 Manufacturing plants all across India Auto plants 6, Tractor plants 7, Foundry plant 1 Subsidiaries Total - 125, Operational 41 As at March 31,

9 Shareholding Pattern Top 10 Shareholders with > 1% FI / MF / Banks 1.4% Individuals 15.2% Promoter and Promoter Group 25.2% Life Insurance Corporation of India Golboot Holdings Ltd (Goldman Sachs) ICICI Prudential Life Insurance Ltd First State Investments Insurance Cos. 14.0% Europacific Growth Fund General Insurance Corporation of India Government of Singapore The New India Assurance Company Ltd FII / NRI / GDR 44.1% Vanguard Emerging Markets Stock Index Fund J P Morgan Group 9

10 Financials 10

11 Financial Highlights Q4- FY13 Vs Q4- FY12 (M&M + MVML) Growth in Total income Growth in EBIDTA Growth in in PAT * Rs 11,342 crs Rs 1,435 crs Rs 963 crs 10% 31% 6% Rs 10,334 crs Rs 1,092 crs Rs 911 crs Rs 872 crs 33% * On like to like comparison, excluding one time benefit of Rs. 257 crores on account of MADPL merger from FY 2012 & 91 crs in FY 13 of Exceptional Gain on sale of MHRIL shares Rs 654 crs 11

12 Financial Highlights FY13 Vs FY12 (M&M + MVML) Growth in Total income Growth in EBIDTA Growth in in PAT * Rs 43,655 crs Rs 5,329 crs Rs 3,634 crs 25% 28% 21% Rs 35,005 crs Rs 4,150 crs Rs 2,997 crs Rs 3,544 crs * On like to like comparison, excluding one time benefit of Rs. 257 crores on account of MADPL merger from FY 2012 & Rs. 91 crs in FY 13 of Exceptional Gain on sale of MHRIL shares 29% Rs 2,740 crs 12

13 Strong Growth Trajectory Figures on Standalone basis (M&M + MVML) Gross Revenue & Other Income PAT Rs. Crs. 30% 43,655 43% 3,634 15,072 20,735 26,201 35, ,068 2,687 2,997 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 EBITDA 13.9% 47% 5, % 2,965 3,621 4,150 1,155 FY09 FY10 FY11 FY12 FY13 13

14 Strong Growth Trajectory Gross Revenue & Other Income Consolidated Accounts PAT after MI Rs. Crs. 27% 74,403 31% 4,099 63,358 3,080 3,127 28,992 33,790 39,864 1,405 2,479 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 EBITDA 24% 7,449 5,015 5,449 6,245 3,163 FY09 FY10 FY11 FY12 FY13 14

15 Delivering consistent, long term value Last 21 years Last 11 years Last 5 years M&M Sensex Gold Note: Adjusted for Bonus & Stock-split Ex Dividend price Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved. 15

16 Original Investment Cost Vs. CMP As on 31 st, March 2013 Cost Market Value Listed Companies Rs. Crs Subsidiaries ,090 Associates 649 6,592 Total 3,644 17,683 16

17 Unlocking Shareholders Value Since 2005 Corporate Actions Bonus Issue FY :1 Stock Split FY :2 17

18 Strong Credit Profile DE Ratio M&M + MVML Gearing Multiple M&M + MVML Stable Rating AA+ by CRISIL/ICRA/CARE * F 2009 F 2010 F 2011 F 2012 F 2013 F 2009 F 2010 F 2011 F 2012 F 2013 Healthy financial risk profile supported by considerable financial flexibility arising from market value of investments - Crisil s Credit Rating Report, April 2013 * Rating is for M&M Ltd (Standalone Company) Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved. 18

19 Marathon Runner Prudent Capital Allocation Support growth with Strategic Acquisition Maintain strong Credit Rating Deliver long term shareholder value 19

20 M&M + MVML- FINANCIAL PERFORMANCE F 2013 Q4 F 2012 Q4 Rs. Crs. % Inc/ (Dec) Gross Turnover 11,342 10, Net Sales & Op. Inc. 9,983 9, PBIT 1, PAT OPM (%) Adjusted PAT

21 M&M + MVML- FINANCIAL PERFORMANCE (full year) Rs. Crs. F 2013 F 2012 % Inc/ (Dec) Gross Turnover 43,655 35, Net Sales & Op. Inc. 38,357 31, PBIT 5,081 3, PAT 3,634 2, OPM (%) Adjusted PAT 3,544 2,

22 M&M + MVML - BALANCE SHEET Rs. Crs. F F Source of Funds Shareholder s Funds 15,055 12,219 Loan Funds * 4,464 4,544 Deferred Tax Liability Total 20,275 17,352 * Includes current maturities of Long Term Liabilities 22

23 M&M + MVML - BALANCE SHEET Rs. Crs. F F Application of Funds Fixed Assets 7,747 6,889 Investments 10,894 9,474 Long Term Loans & Advances 2,562 1,734 Cash & Bank Balances 1,823 1,291 Proposed Dividend (891) (869) Other Assets (Net) (1860) (1167) Total 20,275 17,352 23

24 Key Ratios Particulars F 2013 F 2012 OPM (%) ROCE Interest Coverage Ratio Debt / Service Ratio EPS (Basic) (Rs.) Book Value (Rs.)

25 25

26 Financial Highlights M&M Consolidated FY 13 vs. FY 12 Growth in Total income Growth in EBIDTA Growth in PAT after MI Rs. 74,403 crs Rs. 7,449 Rs. 4,099 crs 17% 19% 31% Rs. 63,358 crs Rs. 6,245 Rs. 3,127 crs 26

27 M&M Group Consolidated Results Rs. Crs. F 2013 F 2012 % Inc/ (Dec) Net Sales & Op. Income 68,735 59, PAT before MI # 4,129 3, PAT after MI 4,099 3, # includes share in profits of Associates 27

28 Subsidiary Company Results F 2013 F 2012 Rs. Crs. % Inc/ (Dec) Net Revenue 36,970 33,580 10% PAT before MI # % PAT after MI % # includes share in profits of Associates 28

29 Group Companies Top 4 PAT Earners MMFSL MLDL TML MHRIL F13 Rs.927 crs F13 Rs 141 crs F13 Rs. 1,288 crs F13 Rs.91 crs F12 Rs.644 crs 44% F12 Rs 119 crs 18% F12 Rs. 1,096 crs 18% F12 Rs. 102 crs (11%) On Consolidated basis. 29

30 Segment Details Systech STP * Revenue Revenue Rs. Crs. IT Services Revenue FY 13 4,988 1,416 1,464 5% 5% 50% FY 12 5,249 1,486 2,904 Systech STP * IT Services Results Results Results FY 13 (44) % 28% 48% FY * STP Steel Trading & processing Segment Results is before Exceptional items 30

31 Segment Details FY 13 FY 12 Farm Equip. Revenue 13,384 4% 13,283 Rs. Crs. Others Revenue 2,850 15% 2,469 FY 13 FY 12 Farm Equip. Results 1,828 5% 1,925 Others Results (295) 15% (256) Segment Results is before Exceptional items 31

32 Automotive Revenue Segment Details Fin. Services IDS Revenue Revenue Rs. Crs. Hospitality Revenue FY 13 41,874 4, FY 13 27% 42% 5% 13% FY 12 32,838 2, FY 12 Automotive Fin. Service IDS Hospitality Results Results Results Results FY 13 2,330 1, FY % 35% 23% 7% FY 12 1, FY 12 Segment Results is before Exceptional items 32

33 Automotive Sector 33

34 F-83 F-84 F-85 F-86 F-87 F-88 F-89 F-90 F-91 F-92 F-93 F-94 F-95 F-96 F-97 F-98 F-99 F-00 F-01 F-02 F-03 F-04 F-05 F-06 F-07 F-08 F-09 F-10 F-11 F12 F13 Indian Auto Industry Vehicle Sales Series4 Series3 Series2 Series1 3,600,000 3,400,000 3,200,000 3,000,000 2,800,000 2,600,000 2,400,000 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 - Total 4W Industry CAGR Growth CAGR % CAGR % Source : SIAM FY13 / FY12.2.0% 34

35 M&M Auto Sector sales Domestic + Export Total AS Sales ( 000) 21% CAGR F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13 35

36 Utility Vehicle Player in India *M&M Ltd. is the largest utility vehicle company in India SIAM data 36

37 F13: Unique Year for UV industry F13 likely to repeat for next two years 60.0% 50.0% 40.0% 30.0% Car Vs UV Growth % Car Growth 52.2% 60.0% 50.0% 40.0% 30.0% M&M Vs Industry Growth % M&M UV Growth UV Industry Growth 52.2% 30.5% 20.0% 20.0% 10.0% 10.0% 0.0% -10.0% -20.0% F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13-6.7% Increased Focus on the UV market F02 F13 UVs available UVs (MNC make) 2 25 Price range (Rs. Lac) UV / (UV + Cars) 17% 23% Source: SIAM, Industry 0.0% F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F % -20.0% 80.0% Changing Dynamics of UV Segment 70.0% 60.0% Indian OEM Share 50.0% MNC OEM Share 40.0% 30.0% 20.0% 57.5% 42.5% F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13 37

38 Presence across all price points L L L L 8L L 7.4 L L 5.9 L 7.7 L 6.7 L 7.4 L 5L L 15 L L 20 L 38

39 Presence across all price points 5.5 L 6.2 L 3.7 L 3.8 L 5.5 L 3.5 L 3.7 L 4.1 L 4.5 L 3.4 L 1.9 L L L 1L 2L 3L 4L 5L 6.2 L 39

40 FY Domestic Market Performance Auto Indsustry & M&M - FY13 / FY12 M&M AS Industry M&M Mkt. Share Segment F13 F13 F13 F12 Growth Growth Actual Actual Actual Actual UV Total 263, % 553, % 47.7% 55.6% Cars (Verito) 15, % 226, % 6.8% 9.5% Vans Total 31, % 237, % 13.2% 10.9% SCV < 2T 39, % 247, % 16.1% 21.5% 2T > LCV < 3.5T 102, % 190, % 54.0% 66.4% 3W Total 65, % 538, % 12.2% 13.1% LCV > 3.5 T Total 8, % 87, % 10.3% 10.4% MHCV (>16.2 T) 2, % 116, % 2.6% 2.0% Source : SIAM 40

41 F13: M&M International Market Performance High growth in H1, Slowdown in H2 H1 F13 H2 F13 29,176 F13 32,456 12,956 18,190 40% 16,220 14,226 12% 11% H1 F12 H1 F13 H2 F12 H2 F13 F12 F13 F13 Growth Markets South Africa 57% Chile 48% Nepal 47% F13 Concern Markets Sri Lanka 18% Mkt. drop + duty impact Bangladesh 63% Mkt. drop Bhutan 77% Regulation for import payment 41

42 SYMC Bn KRW CY 12 CY11 Growth Volume (No.) 120, , % Revenue 3, , % PBDIT 39.0 (31.3) - PBT (106.1) (112.4) 1. CY 12 PBDIT before provision of unpaid leave workers legal case of KRW 15.6 Bill 2. CY 11 PBT includes KRW 49 Bill income from creditors write back as per rehabilitation plan Bn KRW Q1 CY 13 Q1 CY12 Growth Volume (No.) 31,265 26, % Revenue % PBDIT PBT (9.8) (31.6) - 1. Q1 CY 13 PBDIT before provision of unpaid leave workers legal case of KRW 5.8 Bill Rexton W Korando C Korando Turismo 42

43 Customer Satisfaction Performance JD Power 2012 CSI TNS 2012 TCS JD Power 2012 IQS Most improved brand for th Rank (11 th in 2011) XUV500 ranked No. 1 with Renault Duster Bolero ranked No.1 with Toyota Innova First time M&M product is under 100 PP100V 43

44 Presence in every nook and corner Sales Network 1232 Service Network Network reaching more than 70% of the districts in India Total of 1,300 up-country outlets in 900 towns/semi-urban and rural areas across the country 44

45 Financial Performance AD + MVML Rs. Crs. Q4FY2013 %YoY FY2013 %YoY Segment Revenue Rs. 7,163 38% Rs. 26,489 34% Segment Results (after exceptional items) Segment capital employed Rs % Rs. 3,118 45% Rs. 6,167 20% Rs. 6,167-45

46 SIAM F14 Outlook Segment F13 Actual Growth F14 Growth (Est) (as on Apr-13) Cars -6.70% 3-5% UVs 52.20% 11-13% Vans 1.10% 4-6% PV Total 2.20% 5-7% LCV Goods 15.90% 10-12% MHCV Goods % 1-3% Passenger Buses -4.10% 6-8% 2W 2.90% 6-8% 3 W Goods -9.20% 2-4% 3W Passenger 8.60% 3-5% 3W Total 4.90% 3-5% Total Industry 2.60% 6-8% 46

47 Farm Equipment Sector 47

48 F73 F75 F77 F79 F81 F83 F85 F87 F89 F91 F93 F95 F97 F99 F01 F03 F05 F07 F09 F11 F13 Domestic Industry Historical Volumes No. of tractors CAGR : 15.0% (F73-F82) (F86-F92) (F94-F00) (F03-F11) CAGR: 8.2% (F73 F13) Source : TMA 48

49 * M&M Ltd. is the largest tractor company in the world, by volume 49

50 M&M Domestic Market Performance 18% 166, , , ,596 CAGR78,048 60,005 41,282 44,807 95,006 90, ,269 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13 50

51 F13 : One of The Lows F12 Industry F13 F12 M&M F13 Continued Domination FES MS : 40.2% (Loss : 1.2% over PY) 51

52 Tractor Market Share Total no. of Tractors % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 302, , , , , , F08 F09 F10 F11 F12 F13 JD FNH Others Sonalika Escorts Tafe+Eicher Mahindra Source : TMA 52

53 F13 : Exports 11,812 13,722 12,289 5,746 4,769 5,385 6,981 7,525 8,533 6,933 8,837 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13 Degrowth in SAARC Countries 53

54 Customer Satisfaction Index Mahindra & Swaraj : among Top 2 Brands F08 F09 F10 F11 F12 F13 54

55 Beyond tractors towards Farm Tech Prosperity 55

56 Powerol Powerol Gross Revenue (Rs. Crs) 1,000 Powerol Revenue Share 870 F12 15% F13 HUPS 7% Ind. Eng. Apps 3% Exports 3% Telecom 18% Service 35% Retail 34% 56

57 Agri Business Agri Business Revenue (Rs. Crs) % F12 F13 Agri Business Revenue Share Agri Inputs 28% MIS 47% F&V 25% 57

58 Financial Performance FES Rs. Crs. Q4FY2013 %YoY FY2013 %YoY Segment Revenue Rs. 2,853 3% Rs. 11,990 3% Segment Results (after exceptional items) Segment capital employed Rs.456 5% Rs. 1,858 1% Rs. 2,504 7% Rs. 2,504-58

59 F14 : Industry Outlook Industry expected to grow at 6-8% 59

60 Sustainability Released annual sustainability reports since 2008 to map triple bottom line performance Received A+ rating which is externally assured Ranked 1 st in S&P s ESG India Index-2012 One of the top rankers in the Asian Sustainability Ratings ( ASR ) Winner in the automobiles category, under the Energy Intensive industries cluster, in the Green Business Leaders award instituted by Emergent Ventures India & Financial Express. CII Sustainability Plus Rating:- M & M rated no.1 in transport equipment sector in Gold category and secured 9 th place out of total 100 rated companies. In the year Carbon Disclosure Leadership Index:- M&M Limited was rated with a second highest score of 82 among the top 200 Indian companies in the CDLI ratings for

61 Commitment to Society The Mahindra Group has pledged to dedicate 1% of its Profit after Tax to CSR initiatives 61

62 Thank you Visit us at Disclaimer Mahindra & Mahindra herein referred to as M&M, and its subsidiary companies provide a wide array of presentations and reports, with the contributions of various professionals. These presentations and reports are for informational purposes and private circulation only and do not constitute an offer to buy or sell any securities mentioned therein. They do not purport to be a complete description of the markets conditions or developments referred to in the material. While utmost care has been taken in preparing the above, we claim no responsibility for their accuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the viewers are requested to use the information contained herein at their own risk. These presentations and reports should not be reproduced, re-circulated, published in any media, website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of M&M or its subsidiaries. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. Unless specifically noted, M&M or any of its subsidiary companies is not responsible for the content of these presentations and/or the opinions of the presenters. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. You may not repackage or sell the presentation. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by M&M or its subsidiary companies. Information contained in a presentation hosted or promoted by M&M is provided as is without warranty of any kind, either expressed or implied, including any warranty of merchantability or fitness for a particular purpose. M&M or its subsidiary companies assume no liability or responsibility for the contents of a presentation or the opinions expressed by the presenters. All expressions of opinion are subject to change without notice. Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved. 62