Mahindra & Mahindra

MahindraFINANCE Financial Services Ltd.

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

Tel: +91 22 66526000

Fax: +91 22 24984170
+91 22 24984171

24th April, 2019

The General Manager-Department of The Manager-Listing Department,

Corporate Services, National Stock Exchange of India Limited,
BSE Limited, "Exchange Plaza", 5th Floor,
Phiroze Jeejeebhoy Towers, Plot No.C/1, G Block,
Dalal Street, Mumbai - 400 001. Bandra-Kurla Complex,
Bandra (East), Mumbai - 400 051.
Scrip Code : 532720
Scrip Code : M&MFIN

Dear Sirs,

Sub: Investors / Analysts' Presentation

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing

Obligations and Disclosure Requirements) Regulations, 2015 ["Listing Regulations"],
we are enclosing herewith the presentation to be made to the Investors/ Analysts on
the Financial Results of the Company for the fourth quarter and financial year ended
31st March, 2019.

The presentation is also being uploaded on the website of the Company at the URL
http://www.inahindrafinance.com/analyst-presentations.aspxin accordance with
Regulation 46 of the Listing Regulations.

Kindly take the same on record.

Thanking you,

Yours Faithfully,
Mahindra & Mahindra Financial Services Limited

Arnavaz M. Pardiwalla
Company Secretary & Compliance Officer

Encl: a/a

Regd. office: Gateway Building, Apollo Bunder, Mumbai 400 001 India
Tel: +91 22 2289 5500 I Fax: +91 22 2287 5485 I www.mahindrafinance.com
CIN: L65921MH1991PLC059642
Email : [email protected]
 Mahindra & Mahindra Financial
Services Limited
FY 2019 Result Update
March - 2019

Corporate Office: Regd. Office:

Mahindra Towers, 4th Floor, Gateway Building, Apollo Bunder,
Dr. G. M. Bhosale Marg, Worli, Mumbai-400 001, India
Mumbai-400 018, India
Tel: +91 22 2289 5500
Tel: +91 22 66526000 Fax:+91 22 2287 5485
Fax:+91 22 24953608 www.mahindrafinance.com
Email: [email protected] CIN - L65921MH1991PLC059642

1
 Company Overview

Industry Overview

Business Strategy

Financial Information

Key Subsidiaries

Awards & Accolades

Risk Management Policies

Transforming rural lives across the country

2
 Company Background

Parentage: Mahindra & Mahindra Financial Services Limited (“MMFSL”) is a subsidiary of Mahindra and
Mahindra Limited (Mcap: Rs 830 billion)*, India‟s largest tractor and utility vehicle manufacturer

About MMFSL: MMFSL (Mcap: Rs 268 billion)*, one of India‟s 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 equipment and SME Financing

Vision: MMFSL‟s vision is to be a leading provider of financial services in the rural and semi-urban areas
of India

Reach: Has 1,321 offices covering 27 states and 5 union territories in India, with over 6.10 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 Company‟s long term
and subordinated debt

*Source: Market capitalisation as of April 24, 2019 from BSE website

3
 MMFSL Group structure

(1)
80%
Mahindra Insurance Brokers Limited (“MIBL”)

Mahindra & Mahindra Limited

88.75%(2)
Mahindra Rural Housing Finance Limited
(“MRHFL”)
51.19%

49%
Mahindra Finance USA LLC
(Joint venture with Rabobank group subsidiary)

Mahindra & Mahindra

Financial Services Limited 100% Mahindra Asset Management Company Pvt.
Ltd

100%
Mahindra Trustee Company Pvt. Ltd
Note:
1. Balance 20% with Inclusion Resources Pvt. Ltd. (IRPL), subsidiary of AXA XL Group
2. Balance 9.68%% with National Housing Bank (NHB), 1.57% with MRHFL Employee Welfare Trust. In March 2019, the Board of Directors of the Company approved the acquisition of 9.68% of MRHFL held
by NHB for a consideration of Rs. 2,867.76 million * As on March 31, 2019

4
 Our Journey

Commenced housing finance Maiden Retail NCD Issue Raised Rs. 2147
Long term debt rating
business through MRHFL Maiden QIP Issue of Rs. 4.26 Bn of Rs. 1000 crores. crores from
upgraded to AAA by
Oversubscribed over 7 Tranche 1 of the
India Ratings and
Raised Rs. 4.14 Bn through JV with Rabobank subsidiary for times over base issue size 3rd Public Issue
Brickwork.
Private Equity tractor financing in USA of Rs. 250 crores of NCD
CARE Ratings assigned
Maiden issue of
AAA rating to long term
ECB undertaken.
debt Raised Rs. 1150 Raised over $200
crores from the mn.
Crossed 1 million
Reach extended to over second Retail NCD
cumulative customer
1100 offices Issue Crossed 6 million
contracts
cumulative
Sale of 5% of
customer
Completed IPO, Crossed 4 million MIBL at a
contracts
Subscribed ~ Stake sale in MIBL to cumulative customer valuation of Rs.
27 times Inclusion Resources contracts 1300 crores
Equity participation of
12.5%by NHB in MRHFL Pvt. Ltd.
Certificate of Registration QIP Issuance :
QIP Issue of Rs. 8.67 Bn received from SEBI by Rs. 10.56 bn and
Recommenced Fixed
Mahindra Mutual Fund Preferential Issue to
Deposit Program
M&M : Rs. 10.55 bn

FY 06 FY 08 FY 09 FY 10 FY 11 FY 13 FY 15 FY 16 FY 17 FY 18 FY 19

5
 Shareholding Pattern (as on 31st March, 2019)

Shareholding Pattern Chart Top 10 Public Shareholders

 HDFC Life Insurance Company Limited

7.93%
 Blackrock Global Funds - Asian Growth Leaders Fund

13.64%  Blackrock Global Funds Asian Dragon Fund

 Kotak Funds - India Midcap Fund

51.19%
 Valiant Mauritius Partners Offshore Limited
26.77%
 SBI Blue Chip Fund

 Bank Muscat India Fund

 Vanguard Emerging Markets Stock Index Fund, A Seri

0.47%
 Vanguard Total International Stock Index Fund
Promoters ESOP Trust
FIIs Mutual Funds and DIIs  JP Morgan Indian Investment Company (Mauritius) Li
Non-Institutions

Mahindra & Mahindra Limited holds a stake of 51.19% in the Company

6
 Company Overview

Industry Overview

Business Strategy

Financial Information

Key Subsidiaries

Awards & Accolades

Risk Management Policies

Transforming rural lives across the country

7
 Auto Industry: Long term growth potential

Expansion in Addressable market with Low Cost of Ownership Decile-wise penetration (Urban versus Rural)
(Mn) 55%
350 326 44.5%
45%
292
300
255
35%
250 224
200 25% 18.6%
141
150
15% 10.0%
100 67 3.0% 4.5% 5.5% 6.0%
5% 0.4% 0.8% 1.7% 11.3%
50 28 37
16 4.0%
0 -5% 0.2% 0.5% 0.5% 0.7% 0.8% 1.4% 1.6% 1.9%
2011-12E 2017-18E 2022-23E 1 2 3 4 5 6 7 8 9 10
Urban Rural
Total Households Addressable Household Total PV Population

 Improving income to result in rise from the current estimated 21 vehicles to 26 vehicles per 1,000 people in fiscal 2023
 Increasing urbanization, expanding working population, increasing disposable income and availability of finance to aid growth in sales
 Relatively stable price of cost of ownership is expected to boost long term demand

Source: CRISIL Research, Cars & UVs – February 2019

8
 Passenger Vehicles Industry: Overall Demand Drivers

FY 08 – FY13 FY 13 – FY 18 FY 18 – FY 23 (P)  Small cars and UV expected to continue growth

Small Cars 11% 4% 5% – 7% as more households come under parameters,
improving economic scenario, positive rural
Large Cars 3% (5%) (2%) – (4%) sentiments
 Higher cost of ownership (increased fuel price,
UV + Vans 19% 7% 7% – 9%
higher insurance expense, dearer interest rates)
Total (Cars + UVs) 12% 4% 5% – 7% resulting in reduction in growth rate

Volumes in „000 FY 2017 FY 2018 FY 2019 (P) FY 2020 (P)

Volume Growth Volume Growth Growth Growth

Small Cars 1,891 6% 1,964 4% 5% – 7% 5% – 7%

Large Cars 211 (9%) 209 (1%) (5%) – (7%) (1%) – (3%)

UV + Vans 944 24% 1,114 18% 1% – 3% 9% - 11%

Total (Cars + UVs) 3,047 9% 3,287 8% 3% – 5% 6% - 8%

 Income growth and profitability with respect of ownership will rev up passenger vehicle demand.
 Prices to rise with compliance of emission norms and mandatory safety features with sharper price rise on account of BS-VI migration
 Improving economic scenario, positive rural sentiments, new launches in small cars and UV segment to continue growth momentum

Source: CRISIL Research, Cars & UVs – February 2019

9
 Commercial Vehicles Industry: Overall Demand Drivers

 Lower finance availability hurting MHCV sales. CV

FY 08 – FY 13 FY 13 – FY 18 FY 18 – FY 23 (P)
lending rates increased marginally
MHCV (1%) 7% 6% – 8%  Reduction in sale price of second hand vehicles resulting
in slower buying of new vehicles
LCV 20% (0.4%) 5% – 7%
 Advancement of purchase expected since BS-VI
Buses 7% (2%) 7% – 9% implementation shall increase prices and growth rates

FY 2016 FY 2017 FY 2018 FY 2019 (P) FY 2020 (P)

Volume Growth Volume Growth Volume Growth Growth Growth

MHCV 257,987 32% 255,234 (1%) 304,664 19% 15% – 17% 3% – 5%

LCV 334,371 (1%) 360,842 8% 467,224 29% 20% – 22% 10% – 12%

Buses 92,845 15% 98,126 6% 84,573 (14%) 6% – 8% 4% – 6%

 GST implementation benefitting larger and ICVs truck operators because of input credit

 Expected improved GDP in FY 2020 shall result in increased demand along with OEM aggressiveness, road construction by NHAI
& infra spends

 Healthy industrial growth and focus on infra, mining to bolster tipper demand

Source: CRISIL Research, Commercial Vehicles – March 2019

10
 Tractors Industry: Overall Demand Drivers

FY 2016 FY 2017 FY 2018 FY 2019 (P) FY 2020 (P) FY 18 – FY 23 (P)

Volume Growth Volume Growth Volume Growth Growth Growth Growth

Tractors 493,764 (10%) 582,844 18% 711,478 22% 10% - 12% 6% - 8% 7% – 9%

 Long term growth of 7-9% over 5 years even after considering 1-2 deficient rainfall years

20% 18% 18%

15% 14%
12%
11%
8%-10% 10%
10% 7%-9% 6%-8%
6% 7%-9%
4%-6%
5% 4%
3%
1%
0%

India North West East South

FY08-FY13 CAGR FY13-FY18 CAGR FY18-FY23 CAGR
 Positive farm sentiments and governments rural push in pre-election year to support growth
 Favourable: Farm Income (MSP; Crop Output), Demand Indicators (Infra & Mining) and Finance availability
 Neutral: Supply
Source: CRISIL Research, Tractors – February 2019
11
 Auto Industry Volume

Domestic Sales FY19 FY18 Y-o-Y FY17

(Volume in „000) (Nos.) (Nos.) Growth (%) (Nos.)

Passenger Vehicles (PVs)

Passenger Cars / Vans 2,219 2,174 2% 2,103

UV‟s 1,159 1,115 4% 944

Commercial Vehicles (CVs)

M&HCVs 391 341 15% 302

LCVs 617 516 20% 412

Three Wheelers 701 636 10% 512

Tractors 785 711 10% 583

The growth rate in all vehicle categories have improved significantly over the previous year (especially in Commercial Vehicles)

Source: CRISIL Research

12
 Automobile Finance Market: 5 years Projected Growth@15-17%

Segment-wise growth in disbursement

FY 13 (Rs. Bn.) CAGR FY 13 – FY 18 FY 18 (Rs. Bn.) CAGR FY 18 – FY 23 FY 23 (Rs. Bn.)
Passenger vehicle 639 8% 959 15% 1,929
Commercial vehicle 452 8% 652 13% 1,179
Two wheelers 123 17% 270 16% 575
Three wheelers 70 7% 98 13% 180
Total 1,284 9% 1,978 14% 3,863
Source: CRISIL Research, Retail Finance - Auto, September 2018
Car & UV Loan Portfolio Top 20 Cities Other Cities

Outstanding Loan Composition 58% 42%

Finance Penetration Ratio 80.0% 65.0%

 By FY 2023P, penetration levels are projected to increase to 79% for cars and 76.5% for utility vehicles from 77% and 72.5% respectively
(FY 2018) as a result of a moderation in interest rates and better availability of credit information

 Loan-to-value (LTVs) expected to increase marginally to 77% for cars and 75.8% for UVs from 76% and 73.4% respectively over the same
period

 Finance penetration in cities (excluding top 20) are expected to grow with NBFC‟s expanding reach and better availability of credit information

13
 Housing Finance Growth
Rs. Tn.
Housing Portfolio
25
Banks HFCs
 Growth momentum in the sector expected to slow down
20
22.0 especially for HFC‟s. However, demand side fundamentals
16.0
remain strong.
14.8
15 HFC's 5 Year CAGR
11.8 18%-19%  Affordable housing a new growth engine. PSL enhancement
10 to also support growth
8.3

5  Share of loans from Banks to increase as HFCs reduce

disbursements
0
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY23  Deeper mortgage penetration and increased demand from
Tier II/ smaller towns to fuel loan growth over the period
Growth Rate
24%
22.4% 22.4% HFCs
21.4%
 Government‟s aggressive push towards affordable housing
22% Banks
20.5% leading to 3x increase in number of houses
20%
18.5%
18%
 Mortgage penetration in India is 9 – 11 years behind other
18.4% 18.4% 16.4%
regional emerging markets like China and Thailand
16% 16.7% 17.0%
16.2%
14% 15.2% 13.1%  Despite mortgage penetration improving by 300 – 400 bps
12% 13.3% over the last six years (now at 10%), the same is still low.
FY14E FY15E FY16E FY17E FY18E FY19P FY20P

Source: Crisil Retail Finance – Housing, December 2018

14
 Company Overview

Industry Overview

Business Strategy

Financial Information

Key Subsidiaries

Awards & Accolades

Risk Management Policies

Transforming rural lives across the country

15
Business Strategy

Grow in rural and semi urban markets for vehicle and automobile financing

Expand Branch Network

Leverage existing customers base through Direct Marketing Initiatives

Diversify Product Portfolio

Broad base Liability Mix

Continuing to attract, train and retain talented employees

Effective use of technology to improve productivity

Leverage the “Mahindra” Ecosystem

16
 Extensive Branch Network

 Extensive branch network with presence in 27 states and 5 union territories in India through 1,321 offices

 Branches have authority to approve loans within prescribed guidelines

Coverage Branch Network as of

1,284 1,321
1,182

893

547
436
256

Mar'05 Mar'08 Mar'11 Mar'14 Mar'17 Mar'18 Mar'19

17
 Diversified Product Portfolio
 Loans for auto and utility vehicles, tractors, cars, commercial vehicles and construction
Vehicle Financing
equipments

Pre-Owned Vehicles  Loans for pre-owned cars, multi-utility vehicles, tractors and commercial vehicles

 Loans for varied purposes like project finance, equipment finance and working capital
SME Financing
finance

 Offers personal loans typically for weddings, children‟s education, medical treatment and
Personal Loans
working capital

 Advises clients on investing money through AMFI certified professionals under the brand
Mutual Fund Distribution
“MAHINDRA FINANCE FINSMART”

 Insurance solutions to retail customers as well as corporations through our subsidiary

Insurance Broking
MIBL

 Loans for buying, renovating, extending and improving homes in rural and semi-urban
Housing Finance
India through our subsidiary MRHFL

 Asset Management Company/ Investment Manager to „Mahindra Mutual Fund‟, which

Mutual Fund & AMC
received certificate of registration from SEBI

18
 Break down of estimated value of Assets Financed

Year ended Year ended Year ended

Asset Class
March – 19 March – 18 March – 17

Auto/ Utility vehicles 25% 26% 28%

Tractors 18% 18% 19%

Cars 20% 20% 22%

Commercial vehicles and Construction equipments 19% 13% 11%

Pre-owned vehicles 14% 14% 13%

SME and Others 4% 9% 7%

* Standalone

19
 Break down of AUM

As on As on As on
Asset Class
March – 19 March – 18 March – 17

Auto/ Utility vehicles 26% 27% 30%

Tractors 17% 17% 17%

Cars 21% 22% 23%

Commercial vehicles and Construction equipments 18% 14% 13%

Pre-owned vehicles 9% 8% 9%

SME and Others 9% 12% 8%

As on 31st March 19, ~43% of the AUM was from M&M assets
* Share of SME: 5% * Standalone

20
 Break down by Geography

Central CENTRAL
West WEST
10% 10%
17% 16%

East
EAST
Loan Assets 25% SOUTH Disbursement 25%
South
as on March, 2019 For FY2019
20% 19%

North
NORTH
28%
30%

NORTH: Chandigarh, Delhi, Haryana, Himachal Pradesh, Jammu and Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttaranchal;
EAST: Assam, Bihar, Jharkhand, Meghalaya, Mizoram, Orissa, Sikkim, Tripura, West Bengal; WEST: Dadra and Nagar Haveli, Gujarat, Maharashtra, Goa;
CENTRAL: Chhattisgarh, Madhya Pradesh; SOUTH: Andaman and Nicobar Island, Andhra Pradesh, Karnataka, Kerala, Pondicherry, Tamil Nadu, Telangana;
* Standalone

21
 Credit Rating

MMFSL believes that its credit rating and strong brand equity enables it to borrow funds at competitive rates

Credit Rating India Ratings Outlook

Long term and Subordinated debt IND AAA Stable

Short term debt IND A1+ --

CARE Ratings Outlook

Long term and Subordinated debt CARE AAA Stable

Brickwork Outlook

Long term and Subordinated debt BWR AAA Stable

CRISIL Outlook

Fixed Deposit Programme FAAA Stable

Short term debt CRISIL A1+ --
Long term and Subordinated debt; Bank Facilities CRISIL AA+ Stable

22
 Broad Based Liability Mix

Working Capital Consortium Facility enhanced to Rs. 20,000 mn. comprising several banks

Funding Mix by Investor profile (Mar’19) Funding Mix by type of Instrument (Mar’19)

Investor Type Amount (INR mn.) % Share Instrument Type Amount (INR mn.) % Share

Banks 246,604 46.4% NCDs 191,370 36.0%

Retail NCDs 42,975 8.1%

Mutual Fund 76,405 14.4%
Bank Loans 146,577 27.6%
Insurance &
83,607 15.8% Offshore Borrowings 13,970 2.6%
Pension Funds

FIIs & Corporates 53,755 10.1% Fixed Deposits 56,989 10.7%

CP, ICD 35,765 6.8%

Others 70,749 13.3%
Securitisation/ Assignment 43,474 8.2%
Total 531,120 100% Total 531,120 100%

* Based on holding as on 31st March, 2019 ^ For purpose of presentation, Borrowings are recognised at Face Value (NCD, ZCB and CP)

23
 ALM Position

Cumulative Mismatch Cumulative Surplus (%)

- Positive (INR cr.)
14,000 120.0%
12,057
12,000 100.0%

10,000 9,301
80.0%
8,240
8,000
5,084 6,523 6,582 60.0%
6,000
5,094
40.0%
4,000

2,000 20.0%

- 0.0%
Upto Upto Upto Upto Upto Upto Upto
1 month 2 months 3 months 6 months 1 year 3 years 5 years

As on 31st March 19 * Based on provisional filing with RBI

24
 Employee Management and Technology Initiatives

Employee engagement & training Technology initiatives

 Training programs for employees on regular basis  All our offices are connected to the centralised data centre in
Mumbai through Lease line/HHD
 5 days induction program on product knowledge, business
processes and aptitude training  Through hand held devices connected by GPRS to the central
server, we transfer data which provides
 Mahindra Finance Academy training programs for prospective – Prompt intimation by SMS to customers
and existing employees at 5 locations – Complete information to handle customer queries with
transaction security
 Assessment & Development Centre for promising employees – On-line collection of MIS on management‟s dashboard
– Recording customer commitments
 Employee recognition programs such as– Dhruv Tara, Annual – Enables better internal checks & controls
Convention Award and Achievement Box

 Participation in Mahindra Group‟s Talent Management and

Retention program

25
 Company Overview

Industry Overview

Business Strategy

Financial Information

Key Subsidiaries

Awards & Accolades

Risk Management Policies

Transforming rural lives across the country

26
 Disclaimer

 This is the first financial year of Indian Accounting Standards (“IND-AS”) for the purposes of the Company’s financial
reporting.

 The impact of the transition from previous GAAP (“I-GAAP”) has been made in the opening reserves of FY 2018

 Except the full year account’s (FY19) which have been subject to audit, all other reportings and disclosure made in
the presentation are based on management reports. The auditors have not reviewed any of those disclosures.

 The disclosures provided here are to merely provide a summary of the performance and for comparing key
differences with previous accounting standards.

 There is a possibility of the financial results and the additional disclosures to be updated, modified or amended
because of adjustments which may be required to be made on account of introduction of new standards or its
interpretation, receipt of guidelines or circulars from regulatory bodies and/ or Reserve Bank of India and/or changes
because of exercising any available exemptions.

27
 Key Financials
Figures on standalone basis

Total Income Profit after Tax Value of Asset Financed

Q4 FY 19 Rs. 24,795 mn Rs. 5,880 mn Rs. 117,257 mn

37% 87% -1%

Q4 FY 18 Rs. 18,077 mn Rs. 3,144 mn Rs. 118,610 mn

FY 19 Rs. 88,098 mn Rs. 15,571 mn Rs. 462,103 mn

32% 45% 22%

FY 18 Rs. 66,852 mn Rs. 10,761 mn Rs. 377,729 mn

* As per IND-AS

28
 Key Financials (Consolidated)

Total Income Profit after Tax Value of Asset Financed

FY 19 Rs. 104,309 mn Rs. 18,673 mn Rs. 487,914 mn

32% 54% 20%

FY 18 Rs. 79,122 mn Rs. 12,163 mn Rs. 405,621 mn

* As per IND-AS

29
 Growth Trajectory
Figures on standalone basis

Loan Book (Rs. Bn) Revenues (Rs. Bn)

I-GAAP IND-AS I-GAAP IND-AS
88.10
612.50
510.04 72.06
485.47 66.85
59.05 62.38
423.56
366.62

FY16 FY17 FY18 FY18 FY19 FY16 FY17 FY18 FY18 FY19

Profit after Tax (1) (Rs. Bn) Book Value Per Share (2) (Rs.)
I-GAAP IND-AS I-GAAP IND-AS

15.57 176.6
150.6 155.8
10.76
8.92 107.0 113.9
6.73
4.00

FY16 FY17 FY18 FY18 FY19 FY16 FY17 FY18 FY18 FY19
Note :(1) PAT post exceptional items. (2) Calculated as Shareholders funds/ Number of shares.

30
 Financial Performance
Figures on standalone basis

Cost to income ratio (1) (%) Return on Assets (ROA) (2) (%)

I-GAAP IND-AS I-GAAP IND-AS

2.6%
2.2%
42.9%
39.7% 39.8% 1.8% 1.9%
38.0%
36.1%
1.0%

FY16 FY17 FY18 FY18 FY19 FY16 FY17 FY18 FY18 FY19

Return on Net Worth (RONW) (%) Asset Quality

I-GAAP IND-AS I-GAAP IND-AS
Gross NPA Net NPA
15.2% 9.0% 9.0%
8.0% 8.5%
13.3%
11.4% 11.3% 6.2% 5.9%
4.8%
3.2% 3.6% 3.8%
6.4%

FY16 FY17 FY18 FY18 FY19

Provision Coverage 61.7% 61.8% 58.1% 34.0% 19.2%
FY16 FY17 FY18 FY18 FY19 Ratio
4 months 4 months 3 months Stage 3 Stage 3
Note : (1) Cost to Income calculated as Operating Expenses (including depreciation)/(Net Interest Income +
Other Income). (2) Calculated based on average total assets * GNPA under I-GAAP after including income reversal

31
 Standalone Profit & Loss Account: IND-AS
Accounting Basis As per IND-AS

Particulars (Rs. in Million) Q4FY19 Q3FY19 Q-o-Q Q4FY18 Y-o-Y

Revenue from operations 24,552 22,304 10.1% 17,968 36.6%

Less: Finance cost 11,443 10,205 12.1% 7,779 47.1%

NII 13,109 12,099 8.3% 10,189 28.7%

Other Income 243 157 55.2% 109 124.3%

Total Income 13,352 12,256 8.9% 10,298 29.7%

Employee benefits expense 3,141 2,716 15.7% 2,454 28.0%

Provisions and write-offs (1,144) 2,256 -150.7% 948 -220.7%

Other expenses 2,235 1,935 15.5% 1,651 35.4%

Depreciation and amortization 173 152 14.0% 117 47.2%

Total Expenses 4,405 7,059 -37.6% 5,170 -14.8%

Profit before Tax 8,947 5,197 72.2% 5,128 74.5%

Tax expense 3,067d 2,010 52.6% 1,984 54.6%

Net Profit after Taxes 5,880 3,187 84.5% 3,144 87.0%

* Figures re-grouped and rounded where found relevant

32
 Standalone Profit & Loss Account: IND-AS
Accounting Basis As per IND-AS
Particulars (Rs. in Million) FY 19 FY 18 Y-o-Y
Revenue from operations 87,229 66,334 31.5%
Less: Finance cost 39,445 30,816 28.0%
NII 47,784 35,518 34.5%
Other Income 869 517 68.0%
Total Income 48,653 36,035 35.0%
Employee benefits expense 10,901 8,325 31.0%
Provisions and write Offs 6,352 5,681 11.8%
Other expenses 6,973 5,569 25.2%
Depreciation and amortization 602 442 36.3%
Total Expenses 24,828 20,017 24.0%
Profit before Tax (before Exceptional) 23,825 16,018 48.7%
Exceptional Items ^ - 650 NA
Profit before Tax 23,825 16,668 42.9%
Tax expense 8,254 5,907 39.7%
Net Profit after Taxes 15,571 10,761 44.7%

* Figures re-grouped and rounded where found relevant

^ on account of sale of 5% equity of MIBL
33
 Standalone Balance Sheet
Particulars (Rs. in Million) As on Mar 31, 2019 As on Mar 31, 2018

ASSETS
Financial Asset
a) Cash and cash equivalents 5,017 2,719
b) Bank balance other than (a) above 4,568 1,392
c) Derivative financial instruments 100 4
d) Trade Receivables 52 37
e) Loans 612,496 485,470
f) Investments 37,917 27,341
g) Other Financial Assets 1,690 945
Financial Asset 661,840 517,908
Non-Financial Asset
a) Current tax assets (Net) 3,021 2,168
b) Deferred tax Assets (Net) 3,717 6,275
c) Property, plant and equipment 1,325 1,124
d) Intangible assets under development - -
e) Other Intangible assets 306 72
f) Other non-financial assets 571 380
Non-Financial Assets 8,940 10,019
Total Assets 670,780 527,927

* Figures re-grouped where found relevant

34
 Standalone Balance Sheet (Contd.)
Particulars (Rs. in Million) As on Mar 31, 2019 As on Mar 31, 2018
LIABILITIES AND EQUITY
Financial Liabilities
a) Derivative financial instruments 770 261
b) Payables
i) Trade payables 9,795 10,554
ii) Other payables 342 -
c) Debt Securities 223,194 203,451
d) Borrowings (Other than Debt Securities) 213,015 133,892
e) Deposits 56,672 31,248
f) Subordinated Liabilities 35,589 32,341
g) Other financial liabilities 19,266 17,593
Financial Liabilities 558,643 429,340
Non-Financial liabilities
a) Current tax liabilities (Net) 139 356
b) Provisions 2,065 1,359
c) Other non-financial liabilities 853 653
Non-Financial Liabilities 3,057 2,368
Equity
a) Equity Share capital 1,230 1,229
b) Other Equity 107,850 94,990
Equity 109,080 96,219
Total Equities and Liabilities 670,780 527,927

* Figures re-grouped where found relevant

35
 Consolidated Profit & Loss Account
Particulars (Rs. in Million) FY19 FY18 Y-o-Y

Revenue from operations 103,717 78,839 31.6%

Less: Finance cost 44,323 34,362 29.0%

NII 59,394 44,477 33.5%

Other Income 592 283 108.8%

Total Income 59,986 44,760 34.0%

Employee benefits expense 14,779 11,366 30.0%

Provisions and write Offs 7,171 6,769 5.9%

Other expenses 9,342 7,332 27.4%

Depreciation and amortization 755 552 36.8%

Total Expenses 32,047 26,019 23.2%

Profit before tax (before Exceptional) 27,939 18,741 49.1%

Share of profit of associates 469 307 52.9%

Profit before tax 28,408 19,048 49.1%

Tax expense 9,735 6,885 41.4%

Net Profit after Taxes 18,673 12,163 53.5%

* Figures re-grouped and rounded where found relevant

36
 Consolidated Balance Sheet
Particulars (Rs. in Million) As on Mar 31, 2019 As on Mar 31, 2018

ASSETS
Financial Asset
a) Cash and cash equivalents 5,372 3,387
b) Bank balance other than (a) above 4,568 1,392
c) Derivative financial instruments 100 4
d) Trade Receivables 536 564
e) Loans 689,390 545,497
f) Investments 33,274 23,779
g) Other Financial Assets 2,121 1,328
Financial Asset 735,361 575,951
Non-Financial Asset
a) Current tax assets (Net) 3,121 2,138
b) Deferred tax Assets (Net) 4,497 7,185
c) Property, plant and equipment 1,682 1,374
d) Intangible assets under development 8 5
e) Other Intangible assets 333 93
f) Other non-financial assets 758 555
Non-Financial Assets 10,399 11,350
Total Assets 745,760 587,301

* Figures re-grouped where found relevant

37
 Consolidated Balance Sheet (Contd.)
Particulars (Rs. in Million) As on Mar 31, 2019 As on Mar 31, 2018
LIABILITIES AND EQUITY
Financial Liabilities
a) Derivative financial instruments 770 261
b) Payables
i) Trade payables 11,143 11,314
ii) Other payables 342 68
c) Debt Securities 247,159 219,444
d) Borrowings (Other than Debt Securities) 246,327 165,272
e) Deposits 56,309 30,520
f) Subordinated Liabilities 38,221 34,625
g) Other financial liabilities 28,408 22,667
Financial Liabilities 628,679 484,171
Non-Financial liabilities
a) Current tax liabilities (Net) 139 357
b) Provisions 2,550 1,954
c) Other non-financial liabilities 917 818
Non-Financial Liabilities 3,606 3,129
Equity
a) Equity Share capital 1,230 1,229
b) Other Equity 111,460 97,321
c) Non-controlling interests 785 1,451
Equity (incl attributable to minority investors) 113,475 100,001
Total Equities and Liabilities 745,760 587,301

* Figures re-grouped where found relevant

38
 Summary & Key Ratios
Figures on standalone basis

As per IND-AS

Year ended Year ended

Particulars (Rs. in Million)
March – 19 March – 18

RONW (Avg. Net Worth) ^ 15.2% 13.3%

Debt / Equity 4.84:1 4.17:1

Capital Adequacy$ 20.3% 22.7%

Tier I 15.5% 17.0%

Tier II 4.8% 5.7%

EPS (Basic) (Rs.) 25.33 18.52

Book Value (Rs.) 176.6 155.8

Dividend % 325% 200%

New Contracts During the period (Nos.) 761,381 626,172

No. of employees 21,789 18,733

$ as per IND-As after considering proposed dividend * Figures re-grouped and rounded where found relevant

39
 Spread Analysis
Figures on standalone basis

As per IND-AS

Year ended Year ended

Particulars (Rs. in Million)
March – 19 March – 18

Total Income / Average Assets 14.7% 13.9%

Interest / Average Assets 6.6% 6.4%

Gross Spread 8.1% 7.5%

Overheads / Average Assets 3.1% 2.9%

Write offs & NPA provisions / Average Assets 1.0% 1.2%

Net Spread 4.0% 3.4%

Net Spread after Tax 2.6% 2.2%

* Average Assets is computed based on Net Total Assets i.e Total Assets less Provisions

40
 NPA Analysis (As per IND-AS)
Figures on standalone basis

As on Mar 31, 2019 As on Mar 31, 2018

Total Assets (including Provisions) 689,410 557,826

Gross NPA (Stage 3) 40,602 50,419

Less: ECL Provisions (Stage 3) 7,799 17,161

Net NPA (Stage 3) 32,803 33,258

Gross NPA % (Stage 3) 5.9% 9.0%

Net NPA % (Stage 3) 4.8% 6.2%

Coverage Ratio (%) – based on Stage 3 ECL 19.2% 34.0%

Stage 1 & 2 provision to Total Assets (%) 1.6% 2.3%

Coverage Ratio(%) – including Stage 1 & 2 provision 46.1% 59.5%

As on Mar 31, 2019 As on Mar 31, 2018 As on Mar 31, 2017

Contracts under NPA (90 dpd) 93,084 132,947 138,357

% of Live Cases under NPA 4.0% 6.4% 7.2%
Repossessed Assets (out of above NPA) 9,832 11,596 13,185

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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

42
 Mahindra Rural Housing Finance Limited

Accounting Basis As per IND-AS

Year ended Year ended
Particulars (Rs. million)
March – 19 March – 18

Loans disbursed 25,811 27,892

No. of Customer Contracts (nos.) 171,187 218,572

Outstanding loan book 76,892 60,025

Total income 13,839 10,348

PBT 3,662 2,412

PAT 2,505 1,739

Net-worth 11,271 7,454

GNPA % – IND-AS | I-GAAP 13.02% | 9.65% 13.63% | 10.53%

NNPA % – IND-AS (after Stage-3) | I-GAAP 10.77% | 6.81% 11.51% | 7.85%

NNPA % – IND-AS | I-GAAP (Net of Total Provisions) 8.87% | 6.53% 8.98% | 7.54%

 Business Area: Provide loans for home construction, extension, purchase and improvement to customers in rural and semi-urban India
 Shareholding pattern: MMFSL – 88.75%; NHB – 9.68%; MRHFL Employee Trust – 1.57%
 Reach: Currently spread in 13 States & 1 Union Territory * Figures re-grouped and rounded where found relevant

43
 Mahindra Insurance Brokers Limited

Accounting Basis As per IND-AS

Year ended Year ended
Particulars (Rs. million)
March – 19 March – 18

No. of Policies for the Period (nos.) 2,265,146 2,058,613

Net Premium 19,238 17,490

Total income 3,234 2451

PBT 1,029 812*

PAT 715 522

No. of employees (nos.) 1,097 987

* After accounting for one time milestone reward plan to employees/ directors of Rs. 235.53 million

 Business Area: Licensed by IRDA for undertaking insurance broking in Life, Non-Life and reinsurance businesses

 Shareholding pattern: MMFSL – 80%; Inclusion Resources Pvt. Ltd. – 20%

44
 Company Overview

Industry Overview

Business Strategy

Financial Information

Key Subsidiaries

Awards & Accolades

Risk Management Policies

Transforming rural lives across the country

45
 Awards and Accolades

■ Mahindra Finance has been ranked at 11th among the Best Large Workplaces in the Asia’s
Best Workplaces 2019 list by The Great Place to Work Institute®
■ Mahindra Finance has been has been recognized in the list of 20 Best Workplaces in BFSI –
2019 in India by The Great Place to Work Institute®

■ Mahindra Finance has been awarded Golden Peacock Award for Corporate Social
Responsibility – 2018 by Institute of Directors

■ Mahindra Finance was awarded ET NOW CSR Leadership Award for Best CSR Practices and
Skill development.

■ Mahindra Financial Services Sector‟s (MMFSL)Annual Family Fun Day - Vrindavan 2019 has
attained Yale‟s Gold Level Green Certificate

■ MMFSL Ranked #1 for the third consecutive time in the MCARES Survey, with Mahindra
Finance securing a position in the top percentile group

46
 Company Overview

Industry Overview

Business Strategy

Financial Information

Key Subsidiaries

Awards & Accolades

Risk Management Policies

Transforming rural lives across the country

47
 Risk Management Policies
Provisioning Norms

Stage Description Provision Mechanism

Stage 1 0- 30 days past due PD * LGD * Stage 1 Asset

Stage 2 > 30 to <= 90days past due PD * LGD * Stage 2 Asset

Stage 3 > 90 days past due LGD * EAD of Stage 3 Asset

PD – Probability of Default; LGD – Loss given Default; EAD – Exposure at Default

Key Risks & Management Strategies

Key Risks Management Strategies

 Volatility in interest rates Matching of asset and liabilities
 Rising competition Increasing branch network
 Raising funds at competitive rates Maintaining credit rating & improving asset quality
 Dependence on M&M Increasing non-M&M Portfolio
 Occurrence of natural disasters Increasing geographical spread
 Adhering to write-off standards Diversify the product portfolio
 Employee retention Job rotation / ESOP/ Recovery based performance initiatives
 Physical cash management Insurance & effective internal control

48
 Disclaimer

This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities
of Mahindra & Mahindra Financial Services Limited (the “Company”), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with,
any contract or commitment there for.

This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the
Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words
such as “expects,” “plans,” “will,” “estimates,” “projects,” or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve
risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to
be reasonable in light of its operating experience in recent years. The Company does not undertake to revise any forward-looking statement that may be made from time to time by
or on behalf of the Company.

No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness or fairness of
the information, estimates, projections and opinions contained in this presentation. Potential investors must make their own assessment of the relevance, accuracy and adequacy
of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Any opinions
expressed in this presentation are subject to change without notice. None of the Company, the placement agents, promoters or any other persons that may participate in the
offering of any securities of the Company shall have any responsibility or liability whatsoever for any loss howsoever arising from this presentation or its contents or otherwise
arising in connection therewith.

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CRISIL DISCLAIMER: CRISIL limited has used due care and caution in preparing this report. Information has been obtained by CRISIL from sources which it considers reliable.
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49
 Thank You

Transforming rural lives

across the country

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