#1Mahindra & Mahindra Limited REIGNITED VALUE CREATION Investor Presentation June 2023 1701 00 Rise mahindra#2OUR DNA INITIATIVE IS MAHINDRA&MOHAMMED B initiative of the individual. A significant combination, which represents what might well be termed a co-operative effort to secure for India that industrial development so indispensable to the full realisation of her future dreams. You have heard of plans, many plans, in this connection. Now comes a positive, concrete and co-ordinated scheme to develop India's resources and raise the standard of living of the masses. Devised by an Indian business man after a careful three-year study of American irtime achievements, it has secured the support and ready assistance of a group of siness men with long experience and a firm faith in their country's destiny. DIGNITY dignity of human toil. Sha min mat acti ETHICS oppose anti-social trends. MERITOCRACY In their anxiety to further the industrial and agricultural development of this country, the founders of this co-operative organisation believe that they must have the support of those who will benefit most-the general public-and to secure that support it is essential that their aims and objects should be generally acceptable. Here, then, are the principles which will guide their future activities - FIRSTLY, encouragement of private enterprise and the initiative of the individual. SECONDLY, belief in the ability of corporate institutions to oppose anti-social trends, such as monopolies and cartels. THIRDLY, recognition of the fact that the labourer is worthy of his hire and that in co-operative working lies the dignity of human toil. FOURTHLY, confidence in the ultimate success of their ventures and in the capacity and aptitude of the people to give effect to them. FIFTHLY, acceptance of the fact that ability is the sole test of merit and advancement and that neither colour, creed nor caste should stand in the way of harmonious working. What, you will have asked yourself, do dod test (pic scio expe unlik (pic DIVERSITY colour, creed nor caste should stand in the way whom do they represent, and what has all this business moralising got to do with me? Well, MAHINDRA & MOHAMMED are concerned with what might be termed basic engineering providing the tools with which to finish the job of India's industrial and agricultural rehabilitation. ability is the sole test of merit That rehabilitation, of course, has a great deal to do with you for it holds out the e of a better land for you to live in and a healthier and happier life for you to enjoy. As to the moralising, it is intended to place on record that MAHINDRA & MMED, though a business firm, are imbued with a national purpose and a new Whom do they represent? As the name implies, this is a joint venture of Hindus and Muslims. The Chairman is Mr. K. C. Mahindra, who has just returned after three years abroad as Head of the Government of India Supply Mission in America. him una chan capa "67 such said the 2 scie sity, 2#3OUR REFRESHED PURPOSE Drive positive change in the lives of our communities. Only when we enable others to rise will we rise. #Together we rise 3#4OUR BUSINESSES TAKE PRIDE IN DOING GOOD FINANCIAL INCLUSIVITY DRIVING RURAL PROSPERITY GREEN LIVING SPACES CLEAN ENERGY ~1MM low income houses financed 200 agronomy centers benefiting 800,000+ farmers ✓ 2 MM+ farmers empowered through Krish e app ✓ 100,000+ e3Wheelers improving lives of communities GREEN MOBILITY ✓ Haryali Initiative: 22MM+ trees planted ✓ 1 MM annual target for women empowerment ✓ 550,000+ women educated 50 MM+ Water saved through green army initiative 4#5OUR SUSTAINABILITY COMMITMENT M&M Auto: Net-Zero by 2040 F23 (A) F25 F30 F35 F40 Decarbonize Industries Reduce Scope 3 emissions Net Zero Carbon¹ Scope 1+2 intensity reduction % VS F19 (-) 43% (-) 47% (-) 60% (-) 70% (-) 80% Renewable Electricity Share % share Robust pipeline for launch of multiple passenger EVs, electric Last Mile Mobility solutions 49% 50% >90% 100% Energy Productivity % VS (+) 94% (+) 95% >100% Improvement F09 Net Zero Water² Water Positivity % >100% Net Zero Waste² Zero Waste to Landfill (ZWL) % sites 87% 100% Highlights • • Energy productivity: Mahindra Heavy Engines India's 1st co. to double energy productivity ('20); Multiple industry 1st initiatives, e.g., hybrid solar for HVAC Water: Water positive at group level since 2014; 70% of total water withdrawn in F23 replenished through groundwater recharge • • • Science Based Target set for 30% reduction in intensity by F34 (vs F19) presence in XUV400 launched: Fastest booked e-SUV in India (15k in 13 days), manufactured at 100% water-positive facility using renewable energy Strong Pipeline: 4 more new e-SUV launches planned till 2027 LMM: 70% market share in e-3 wheelers; New unit in Zaheerabad, ~INR 1,000 Cr. investment planned Decarbonizing supply chain First of its kind India pilot of Sustainable Supplier Impact Program in partnership with United Nations Global Compact Active climate advocacy via partners, e.g., WEF's First Movers Coalition Rejuvenating Nature 22M+ trees planted till date as part of afforestation program (Hariyali) Biodiversity assessment and conservation underway across sites • Scope 1+2: Internal targets more stringent than publicly committed Note: (1) Standalone for Auto Division (2) Consolidated for AFS Sector 5#6M&M HISTORY OF VALUE CREATION Rise mahindra#7M&M Best performing stock in NIFTY 50 since 2002* 1st in last 20 years 2nd in last 1 year Company TSR% Ranking Company TSR% Ranking Mahindra 27% 1 ITC 68% 1 Britannia 27% 2 Mahindra 57% 2 Dabur India 26% Bajaj Holdings 26% HCL Tech 25% Sun Pharma 25% NIIT Lim. 25% 34 56 M Coal India 41% 3 NTPC 34% 4 Britannia 32% LO 5 Eicher Motors 21% 6 7 IndusInd Bank 18% 7 HDFC Bank 24% 8 L&T 17% 8 L&T 24% 9 ICICI Bank 16% 9 Tata Chem. 24% 10 HUL 15% 10 Nifty50 companies considered at the point in time (20, 5, and 1 year back as on 31st March of the corresponding years) Note: TSR stands for Total Shareholder Returns, calculated as capital gains (increase in stock price) + dividends adjusted for stock splits, bonus issues, etc. TSR returns taken as avg. of monthly closing of Jan, Feb and Mar for the corresponding years. 7#88 ACCELERATED TRAJECTORY PAT Lens: History of value creation with accelerating trajectory PAT* (Rs. Cr.) FY2002-2023 CAGR -5% CAGR 4,667 3,347^ +43% 66 FY02 * After Exceptional Items after Non-Controlling Interest ^ PAT after El for continuing operations FY14 3X in 2 years CAGR +75% 10,282 FY21 FY23 8#9ACCELERATED TRAJECTORY PAT'02* (Rs. Cr.) PAT'23* (Rs. Cr.) CAGR 1,290 Auto 41 18% (Core Auto 2,620 Cr**) 30 3,950 26% Farm Services (IT, Financial, Logistics, (5) Holidays, Real Estate, Etc.) 5,042 ++ Why Services? Brand, Governance premium, Synergies with Core, Market reach and Talent ~ Significant value creation of Rs 47K Crover last 20 years Positioned to capitalize on macro trends driving growth in India (& globally) * After Exceptional Items after Non-Controlling Interest ^ PAT after El for continuing operations Core Auto here refers to consolidated Auto PAT before El. El items such as write-off in trucks and buses division, exit in PMTC result in 1,330 Cr reduction in Auto PAT for F23. 9#1010 VALUE CREATION... Accelerated in F23 Market cap of M&M (Rs. kCr.) +42 43 +57 +45 100 144 1 FY 2002 FY 2012 FY 2022 FY 2023 NSE Market Cap* (Rs. Lac Cr.) 6 61 * After Exceptional Items after Non-Controlling Interest ^ PAT after El for continuing operations 262 243 Incremental market cap created by Mahindra Group in F23 is comparable to the incremental market cap created in the last decade 10#11OUR PATH TO VALUE CREATION FY21 FY22 Capital allocation (1 year agenda) Strategy - Turnaround or exit loss making companies - - Commitments 18% ROE Pivot to growth (2 years agenda) - Transform Core Establish Growth Gems 15-20% EPS growth Purpose and Values FY23 11#121 Turnaround MAGNA AG NORTH AMERICA HISARLAR Ag Machinery ERKUNT MITSUBISHI MAHINDRA AGRICULTURAL MACHINERY CO., LTD. SAMPO ROSENLEW In process MAHINDRA AUTOMOTIVE NORTH AMERICA AUTOMOBILI pininfarin CAPITAL ALLOCATION 2 D Exit SSANGYONG 31 GIPPSAERO Z genze First Choice ANY CAR SERVICE Mahindra CONVEYOR SYSTEMS HISARLAR PEUGEOT Mahindra WASTE TO ENERGY SOLUTIONS LIMITED PAT^ (Rs. Cr.) Loss making entities (26)* MeraKisan (3,429) PEUGEOT MOTOCYCLES Mahindra Mahindra Consulting Engineers SANYO FY20 FY23 medwellventures ORIGINFRUITDIRECT your link to production Mahindra ODYSSEA * FY23 PAT is for continuing operations and does not include any losses of exited entities. It excludes hyperinflation accounting impact of Rs 120 Cr for Turkish operations ^ International Auto & Farm operations; PAT After NCI, before El 12#13Transform Auto PIVOT TO GROWTH... Transforming the core Actions Outcome 5 mega launches... Quantum leap Regaining EV leadership; $9.1 Bn valuation UV revenue MS: 13.2% → 19.6% (Q4F20) (Q4F23) Farm Strengthened leadership through new launches and network expansion Farm machinery revenue growth by 40% Market share: 39.4% → 40.7% (Q4F20) (Q4F23) MMFSL Leadership, Asset quality, Tech and Data Transformation underway 010111 001010 101101 TechM * Refers to gross stage 3 delinquent contracts GNPA: 8.4% → 4.5% (Q4F20) (Q4F23) Early wins in large deals Succession plan in place Margin transformation to commence in F24 13#14Growth Gems PIVOT TO GROWTH... Gems Deep Dive: FY22 & FY23 - ...and establishing growth gems Progress made so far Valuation' ($ Mn) On track to achieve target FY20 FY23 mahindra 67% market share in 3W EV; IFC investment (<1002) +630 Mn 734 LAST MILE MOBILITY Unlock susten OTPP investment to accelerate scale-up (<200 +90 Mn (290) By Mahindra mahindra LIFESPACES Robust launch pipeline with 9 launches; 4000+ Crs GDV acquired (120) +550 Mn 670 Customer & inventory adds, curated customer experience 230 +430 Mn 660) ClubMahindra Growth Mindset mahindra LOGISTICS Integrated logistics play with multiple acquisitions 200 +120 Mn (320) Revenue ($ Mn) mahindra ACCELO Pivot to decarbonizing of Mobility and Energy 182 +332 Mn 514 4 car&bike Retail scale-up across multiple formats (50 +91 Mn (141) Emerging CLASSIC LEGENDS New launches, distribution scale up and exports (56) +28 Mn (84 1. Closing value as of 31-March for corresponding years; 2. F20 Valuation based on rough estimate of Jeeto and 3 Wheelers ICE portfolio Note: For FY20: $1 = INR 74.1; For FY23: $1 = INR 81.7 14#15REIGNITED VALUE CREATION We delivered, and built foundation for growth Return on Equity EPS 13.8% Market cap* in INR in INR '000 Cr. +6.1 pts 19.9% 92 144 1.9X 1.7X 4.4% 49 16 99 84 FY19 FY21^ FY23 FY19 FY21^ FY23 FY19 FY21 FY23 Purpose Talent Enablers Data & Technology Customer Experience Synergy *M&M Limited market cap; Closing value as of 31 March for corresponding year for market cap ^Considering continuing & discontinued operations 15#16M&M PATH FORWARD Rise mahindra 16#17Opportunity today? VALUE CREATION PATH FORWARD India is well positioned across global macrotrends Mahindra portfolio is aligned with India growth We are poised to make world class products. at scale... Global play 17#18No Presence INDIA GROWTH OPPORTUNITIES India will add $4.2 Trillion to its GDP by 2030 Sectors mapped to macrotrends Sector contribution to GDP growth ($ Bn) FY23 FY30 Consumer, lifestyle and eCommerce 740 +1185 1925 Presence in Sectors Agriculture solutions Manufacturing and capital goods Financial services Logistics and mobility 4 Green energy Technology solutions 11 Health and wellness 400 540 180 +280 460 140 +180 320 100 +120 220 55 +100 155 50 +60 110 +430 +415 830 955 Infrastructural development (Construction, Utilities, etc.) Others (Information & communication, Education, etc.) 235 +310 960 545 +1115 2075 Note: Others includes Information and communication ($132 Bn), Education ($115 Bn), Extraction ($33 Bn), Telecommunications ($26 Bn), Publishing and broadcasting activities ($7 Bn) Source: Oxford Economics 18#19No Presence Presence in Sectors MAHINDRA PORTFOLIO ALIGNED WITH INDIA GROWTH Sectors mapped to macrotrends Consumer, lifestyle and eCommerce Agriculture solutions Manufacturing and capital goods Financial services Logistics and mobility Green energy " Technology solutions " Current portfolio Core mahindra TRACTORS SUVs LCVs SPORT UTILITY VEHICLES mahindra mahindra FINANCE TECH mahindra Growth Gems mahindra LIFESPACES ClubMahindra car&bike mahindra ACCELO CLASSIC LEGENDS mahindra LAST MILE MOBILITY mahindra LOGISTICS susten By Mahindre No intended play at present No intended play at present Health and wellness Infrastructural development (Construction, Utilities, etc.) Others (Information & communication, Education, etc.) Note: Others includes Extraction, Publishing and broadcasting activities, Education, Telecommunications, Information and communication No intended play at present 19#20FY21 MAHINDRA STRATEGIC IMPERATIVES FY22 - 23 FY24 - 26 Capital Allocation Pivot to growth Deliver Scale Market Leadership Resilience Value Creation 20#21DELIVER SCALE Capitalize on Market Leadership SUVs LCVs Unlock Full Potential mahindra FINANCE 5X Challenge for Growth Gems mahindra LAST MILE MOBILITY ClubMahindra mahindra SPORT UTILITY VEHICLES mahindra TRACTORS TECH mahindra mahindra LOGISTICS CLASSIC LEGENDS mahindra LIFESPACES car&bike mahindra ACCELO 21#22AUTO... Strategic imperatives SUV Love affair Opportunity Strategic actions 56% 51% #1 SUV as % of PV 28% 1. Customer Obsessed Brands: Differentiated SUV brand experience, innovative omni-channel models Brand Power FY19 FY23 FY26 *India PV market is 6% of the global PV market 2. Propel ICE SUVS with cutting edge products: Turn-on Design, Democratize technology, Class leading Performance, Advanced Safety, Premiumization #1 Rev MS A bold leap into the world of EVs 17% EV penetration in SUVS (Industry) 2% 3. Pioneering a new era with category creating E-SUVs: Purpose- built platforms, Software defined architecture, Ecosystem partnership approach ++ MS FY23 FY26 4. LCV (< 3.5T): Capitalizing on the growth potential Build CV Moat: Higher earnings with Maxx pickup range as Core prop and UPP as disruptive proposition ++ MS 16% 810 LCV (<3.5T) 523 Industry 5. Go Global: Scale up priority markets by leveraging the new Global PU and Electric SUVS +++ Rev Growth TIV in'000 FY23 FY26 *Source: Marklines, Includes Trucks for US Market, internal estimates 22#23FARM ... Strategic imperatives Opportunity Domestic tractor industry will continue to grow 2.4 4.0 Hp/hectare 1.9 0.8 FY15 FY20 FY23 Govt target¹ Opportunity to grow our share in global markets 41.2 F23 Relevant tractor Market share,% 4.4 Global (ex China) India Significant potential for Farm Machinery Ratio of FM industry to tractor industry 1.7 M&M India market share in Tractor vs Farm Machinery, % 41.2 1. Strategic Actions Build a domestic fortress through product launches and channel expansion: Grow market share Industry-best profitability 2. Significantly grow international business: with a focus on product launches and new market entry 3. Pioneering technology leadership: Bring disruptive change through electrification, automation, loT devices 4. Scale FM India exponentially: by building out product portfolio and channel expansion 5. Leverage partnerships for FM and global growth, and for technology solutions 0.2 India FM industry $1.2Bn Global $100 Bn 6.0 Tractor Farm Machinery 1. NABARD report, with F30 Govt target of 4.0 hp/hectare 2. <150 hp tractor industry 23#24MMFSL UNLOCK FULL POTENTIAL Improve asset quality OIOIII 101101 Digital transformation 123 Growth through diversification High-impact Ecosystem partnerships At consolidated level SUV Revenue market share Does not include M&A Tech Mahindra Drive 300 bps margin expansion Lead the market and drive 5G proliferation. Grow new age offerings IIII Augment Deep-Tech 2 Drive synergy from portfolio companies 24#25Growth Gems 5X CHALLENGE FOR GROWTH GEMS Unlock Growth Mindset 4 mahindra LAST MILE MOBILITY susten By Mahindra mahindra LIFESPACES ClubMahindra mahindra LOGISTICS mahindra ACCELO car&bike Strategic Imperatives Launch 10+ products/upgrades with best-in-class powertrain efficiency and design Scale-up from 1.5 GW to 7.0 GW by F27 with value unlock through InvIT structure Focus on key markets (MMR, Pune and BLR) through bock-bluster launches (15+ annually) Double the cumulative room inventory from 5,000 in FY23 to 10,000 by FY30 Launch integrated Tech stack (LogiOne) to create transformative and differentiated tech capabilities Become largest player in organized vehicle recycling with target market share of ~25% by FY28 Position Car&Bike as India's leading 'content to commerce' brand for cars and bikes Emerging =CLASSIC LEGENDS= New launches, distribution scale up and exports 25#26SUMMARY Re-ignited Well positioned to tap India Committed to Deliver Scale Driven by Purpose Value Creation Opportunity 26#27THANK YOU#28Revenue 57,787 84,960 M&M STANDALONE F23 47% PAT before El* PAT after El Rs Cr 7,770 52% 6,549 34% 5,120 4,870 F22 F23 F22 F23 F22 F23 * PAT before El (net of taxes) 28#29MMFSL TechM 44,646 MAHINDRA FINANCE & TECH MAHINDRA Revenue 19% 53,290 F22 F23 Disbursements 27,581 49,541 80% PAT 5,566 (13)% 4,831 F22 F23 PAT Highlights TCV of $2.9Bn+ ... soft market demand Improved free cash flow conversion Margins under pressure Highlights Highest ever disbursements; AUM 27% 1,984 2.0x 989 Asset quality improvement continues... Stage 3 improved to 4.5% from 7.7% F22 F23 F22 F23 Rs Cr 29#30* PAT Logistics* 50% 18 26 GROWTH GEMS (LISTED) PAT 68 Hospitality 115 71% PAT 155 Real estate 101 (35)% F22 F23 Crossed 5K of revenue 24%; EBITDA margin 60 bps Space under management 19 Mn Sq Ft Acquisitions to fuel future growth F22 F23 Membership sales ↑ 70%; member adds at 17.5K & upgrades High resort occupancy of 84% HCRO: Recovery in Q4 driving positive financial performance F22 F23 Record pre-sales of 1,812 Cr Foray into society redevelopment ... 2 deals announced Gearing up IC businesses Jaipur & Chennai F22 financials include impact of new acquisitions 30 Rs Cr#31M&M STANDALONE CASH FLOWF23 Auto and Farm Group companies Total Opening Balance + Inflow 12,099 6,228 9,659 3,018 12,677 - Capex (3,431) (3,431) Capital deployed (2,890) (262) (3,152) Net cashflow (incl. invt) 3,338 2,756 6,094 - M&M Debt repayment & others (2,348) Dividend payout (1,436) Closing Balance 14,410 Free cashflow post investment in subsidiaries Rs Cr 31#32CASH DEPLOYMENT F22-F24 Base Invt Change Total Comments Auto capex (excl MEAL^) 7,900 +1,600 9,500 Capacity & Regulatory MEAL Investments 2,075 +1,125 3,200 Farm capex 3,400 3,400 Auto & Farm Investments* 1,500 +500 2,000 Group Cos. Investments 2,700 (1,100) 1,600 External investor funding Monetization & Partnerships (2,500) (1,300) (3,800) Value creation Total 15,075 +825 15,900 SAFE HARBOR STATEMENT: "Certain statements with regard to our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward- Does not include any investments for inorganic growth MEAL stands for Mahindra Electric Automotive Limited excluding Ssangyong looking statements." Rs Cr 32