Mahind ndra ra Farm rm Equ quipmen ment t Sec ector or An - PowerPoint PPT Presentation

Mahind ndra ra Farm rm Equ quipmen ment t Sec ector or An Analyst Meet F16 1

In Industry ustry Vo Volum ume F06 6 to F16 16 : 6.4% 4% CAGR Domestic Tractor Sales ('000) 634 600 551 536 527 500 493 480 400 400 300 264 302 243 215 246 200 184 176 146 89 136 74 100 118 59 31 74 22 77 42 26 0 F73 F74 F75 F76 F77 F78 F79 F80 F81 F82 F83 F84 F85 F86 F87 F88 F89 F90 F91 F92 F93 F94 F95 F96 F97 F98 F99 F00 F01 F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13 F14 F15 F16 Industry is Volatile with Highs/Lows 2

Low sent ntiments iments throu roughou ghout t the ye year.. r.. Delayed ed monsoon Overa rall ll monsoon was about t 14 14 % % Two Consec ecutiv utive e years s of drought ht below the normal l rainfall ll across India Apr Jun Jul Nov Jan Feb Mar May Aug Sep Oct Dec Untimely ely rainfall/ ll/ El Nino & below normal al rains Lowered d Kharif Sowing Hailsto torms rms predicte cted d • Agri global l commodi dity ty prices s falli ling: • internati tional al grain prices s slipped ped by 15%. • Interna rnati tional l food prices falling g sharply ply by almost t 3% in 2014 &14% in 2015 • Increas ase e in farm inputs ts costs leading to lowered d agri incomes 3

In Industry ustry Vo Volum ume:F16 e:F16 vs F15 55096 0963 49349 3497 FY1 Y15 FY1 Y16 4

Domestic mestic Tr Tractor ctor Vo Volumes umes Q4: F16 6 v/s F15 5 volumes lumes F16 6 v/s s F15 volumes lumes 2,20 20,15 157 41035 41035 2,02 02,04 046 34511 34511 FY1 Y15 FY1 Y16 FY15 FY16 Highes est t grow owth th for Q4 Indu dustry stry Drop op : 10.4 % 5

33 ye years rs of f Domest mestic ic Leadership ership  Highest hest Market ket Sh Share e (41 41%) in last st 4 ye 4 years rs  Gain ined ed 1% 1% po point nt in F16 16 6

Maint ntaining aining No. . 1 p position sition 50% 50% 40.6% 6% 41% 41% 40% 40% 40.1% 1% 40.0% 0% 30% 30% 22% 20% 20% 10% 10% 0% 0% FY1 Y13 FY1 Y14 FY1 Y15 FY1 Y16 -5% -10% -1 -8% -14% -20% -2 FES Growt wth MS % MS 7

Marke rket t Share e Ga Gain: n: Ke Key y Ac Action ions  New Product Launches  Pioneering Technology: Launch of Mahindra Yuvo  Strengthening our Channel  Continued focus on Quality 8

New Produ oduct ct Laun unches:F16 ches:F16 555 PP 245 Orcha hard rd 415 DI Arjun Novo 4WD Swaraj j 717 Swaraj j 960 9

Pioneering neering Te Technology: hnology: Laun unch ch of f Mahi hindra ndra YU YUVO VO  AV 10

Streng engthening thening our ur cha hann nnel el Highly customer centric dealer ambience Customer service in the most efficient way 11

Continued Co ntinued fo focus us on n Qua uality ity Mahindra Tractor wins Swaraj Tractor wins TPM Special Award by JIPM Japan TPM Consistency Award by JIPM 12

Ex Export port Vo Volum lumes es 13866 866 11545 545 FY15 FY16 De-growth due to meltdown in key export markets 13

Overseas Ov rseas operations rations Mahindra USA Mahindra China Revenue nue in Rmb( b(Mn) n) Revenu nue in USD(Mn) D(Mn) F15 F16 F15 F16 14

Farm m Ma Machi chinery nery Bu Busin siness ess 15

Ap Applitrac litrac Bus Business ness Revenue in Rs. Crs. 266 266 237 237 FY15 FY16 16

Global Gl bal Farm rm Machinery hinery In Industry ustry Value in Billion $ Produc uct t Segments nts 2013 2013 2018 2018 2023 2023  Global Farm Machinery:$ 94bn Harvesting 27.2 39.7 56.0 Planting & Fertilizer 10.6 15.1 21.5  Set up of Global Farm Machinery Vertical Haying 9.2 12.8 17.9  Focus Areas: Solutions for Tillage 7.5 10.8 15.1 – Rice Value Chain Others 13.8 19.0 25.9 – Combine Harvesters Parts & Attachments 26.0 33.6 42.9 Total 94.3 94.3 131 131 179.3 179.3 Source : Freedonia 2013 17

Mitsubishi tsubishi Mahindra indra Ag Agri ri Machinery chinery (MAM AM)  Acquired 33% Stake  Total revenue $440 mn (F15) & EBIT positive  Product Range: – Tractors – Rice Transplanters – Harvesters – Rotavators & Power Tillers  Acquisition will help address global rice value chain: Rice Transplanters and Harvesters 18

Sampo o Ro Rosenlew nlew  Acquiring 35% Stake in this Finland based company  Stand-alone revenue of € 93 mn in 2014 -15  JV in Algeria with revenue of € 45 mn in 2014-15.  Cash positive & profitable company  Strong player in Europe, Eurasia and North Africa  Acquisition will help global expand in Asia, Africa and Latin America. 19

Farm m Machinery hinery portfoli rtfolio o fo for r global obal marke rkets ts MAM: Addressing global rice value chain SAMPO ROSENLEW: Addressing global combine harvester business 20

F16 Financial ncial Per erformanc formance e 21

Financial nancial Performance formance 22

Stability bility in Vo n Volati latility lity 23

In Industry ustry Out utlook: look:F17 F17  Favor vorab able le Monso soon on in n F17 17 – IMD MD foreca ecast:1 st:105 05-106 06 % abov ove e LPA – Skymet met forecas ecast: t: 10 109% 9% above ove LPA 24

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