Mahindra & Mahindra Financial Services Limited

[Pages:47]Mahindra & Mahindra Financial Services Limited

FY 2017 Result Update

March - 2017

Corporate Office: Mahindra Towers, 4th Floor, Dr. G. M. Bhosale Marg, Worli, Mumbai 400 018 India

Tel: +91 22 66526000 Fax: +91 22 24953608 Email: Investorhelpline_mmfsl@

Regd. Office: Gateway Building, Apollo Bunder, Mumbai 400 001 India

Tel: +91 22 2289 5500 Fax: +91 22 2287 5485 CIN - L65921MH1991PLC059642

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Company Overview

Industry Overview

Business Strategy

Financial Information

Key Subsidiaries

Awards & Accolades

Risk Management Policies

Transforming rural lives across the country

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Company Background

Parentage:

Mahindra & Mahindra Financial Services Limited ("MMFSL") is a subsidiary of Mahindra and Mahindra Limited (Mcap: Rs 785 billion)*, Indias largest tractor and utility vehicle manufacturer

About MMFSL:

MMFSL (Mcap: Rs 195 billion)*, one of Indias leading non-banking finance companies focused in the rural and semi-urban sector is the largest Indian tractor financier

Key Business Area:

Primarily in the business of financing purchase of new and pre-owned auto and utility vehicles, tractors, cars, commercial vehicles, construction equipments and SME Financing

Vision:

MMFSLs vision is to be a leading provider of financial services in the rural and semi-urban areas of India

Reach:

Has 1182 offices covering 27 states and 4 union territories in India, with over 4.71 million vehicle finance customer contracts since inception

Credit Ratings:

India Ratings has assigned AAA(ind)/Stable, CARE Ratings has assigned AAA/Stable, Brickwork has assigned AAA/Stable and CRISIL has assigned AA+/Stable rating to the Companys long term and subordinated debt

*Source: Market capitalisation as of April 24, 2017 from BSE website

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MMFSL Group structure

Mahindra & Mahindra Limited

51.20%

Mahindra & Mahindra Financial Services Limited

85%(1) 87.5%(2) 49% 100%

Mahindra Insurance Brokers Limited ("MIBL")

Mahindra Rural Housing Finance Limited ("MRHFL")

Mahindra Finance USA LLC (Joint venture with Rabobank group subsidiary)

Mahindra Asset Management Company Pvt. Ltd

100%

Note: 1. Balance 15% with Inclusion Resources Pvt. Ltd.,a subsidiary of Leapfrog Financial Inclusion Fund, incorporated in Singapore. 2. Balance 12.5% with National Housing Bank (NHB)

Mahindra Trustee Company Pvt. Ltd

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Our Journey

Commenced housing finance business through MRHFL

Raised Rs. 4.14 Bn through Private Equity

Maiden QIP Issue of Rs. 4.26 Bn

JV with Rabobank subsidiary for tractor financing in USA

Long term debt rating upgraded to AAA by India Ratings and Brickwork.

CARE Ratings assigned AAA rating to long term debt

Maiden Retail NCD Issue of Rs. 1000 crores. Oversubscribed over 7 times over base issue size of Rs. 250 crores

Crossed 1 million cumulative customer contracts

Reach extended to over 1100 offices

Completed IPO, Subscribed ~ 27 times

Equity participation of 12.5%by NHB in MRHFL

Recommenced Fixed Deposit Program

Stake sale in MIBL to Inclusion Resources Pvt. Ltd.

QIP Issue of Rs. 8.67 Bn

Crossed 4 million cumulative customer contracts

Certificate of Registration received from SEBI by Mahindra Mutual Fund

FY 06

FY 08

FY 09

FY 10

FY 11

FY 13

FY 15

FY 16

5

FY 17

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Shareholding Pattern (as on 31st March 2017)

Shareholding Pattern Chart

Top 10 Public Shareholders

5.9% 11.8%

30.4%

51.9%

Promoters* Mutual Funds and DIIs

FIIs Non Institutions

Franklin Templeton Investment Funds Aranda Investments (Mauritius) Pte Ltd Valiant Mauritius Partners Offshore Limited Amansa Holdings Private Limited Life Insurance Corporation Of India Bank Muscat India Fund Valiant Mauritius Partners Limited Vanguard Emerging Markets Stock Index Fund Merrill Lynch Markets Singapore Pte. Ltd. HDFC Standard Life Insurance Company

* Mahindra & Mahindra Limited holds a stake of 51.2% in the Company. ESOP trust holds the balance 0.7%

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Company Overview

Industry Overview

Business Strategy

Financial Information

Key Subsidiaries

Awards & Accolades

Risk Management Policies

Transforming rural lives across the country

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Auto Industry: Long term growth potential

Global Comparison in terms of PV per thousand people

Addressable HHs to increase over the next 5 years

588

476 500 526

300

250

385

200 270 294

150 196

147 93

100

18 39

50

0

240

41 14

2010-11E

262

68 21

2015-16E

285

132 35

2020-21P

India China Thailand Brazil Mexico Russia S. Korea

USA Japan

UK Germany

Italy

Total Households

Addressable Household

Total PV Population (Mn)

With 18 cars per 1000 people (FY 2016), on account of strong long term growth prospects penetration is expected to increase to 27 cars per 1000 people (FY 2020)

As more households come under the addressable market, sales of small cars are likely to increase 9-11% CAGR from 2015-16 to 2020-21. CRISIL Research expects sedan sales to rise 5-7% CAGR and utility vehicle (UV) sales 12-14%.

Source: *CRISIL Research, Cars & UV ? January 2017

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