Mahindra & Mahindra Financial Services Limited is one of India's leading non-bank finance companies focused on rural and semi-urban sectors. It has entered over 641,000 customer contracts and has an extensive distribution network of 403 branches across 25 states and 2 union territories. For the fiscal year ending March 31, 2007, the company reported total revenues of INR 8,446 million and a profit after tax of INR 1,329 million with total assets of INR 62,809 million. The company aims to continue diversifying its product portfolio and expanding into new business areas like housing and personal loans.

1. Mahindra & Mahindra
Financial Services Limited
Analyst Meet
Mahindra & Mahindra Ltd.
May 28, 2007
0

2. OVERVIEW
The Company is one of India’s leading non-bank finance companies
focused on the rural and semi-urban sector
The Company has entered into over 641,000 customers contracts
CRISIL has assigned a AA+ rating to the Company’s long term debt
reflecting a high degree of safety
Estimated Value of Assets Financed have increased from
Rs.4478crs to Rs.5441crs year-on-year basis
MMFSL recorded total revenues of INR 8,446 million and profit after
tax of INR 1329 million for the year ended March 31, 2007 and had
Total assets of INR 62,809 million as of March 31, 2007
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3. Business Strengths
Knowledge of the rural and semi-urban markets
Knowledge of the rural and semi-urban markets
Extensive branch network
Extensive branch network
Relationship with M&M
Relationship with M&M
Quick approval and simple administration procedures
Quick approval and simple administration procedures
Client Relationship
Client Relationship
Dealer relationships
Dealer relationships
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4. Business Strategy
Diversify Product Portfolio
Started financing non-M&M vehicles
Commenced insurance broking business thru MIBL
Commenced financing Commercial Vehicles
Commenced mutual fund distribution business
Commenced financing Two-wheeler on pilot basis
Plans to enter housing loans and personal loans business
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5. Extensive Distribution Network
MMFSL has an extensive distribution network with presence in 25 states and 2 union territories in India
through 403 branches
– Our market categorised into five zones and 16 regions with branches reporting into their respective
regional office
– Branches provided authority to approve loans within prescribed guidelines
Coverage Branch Network
1 Total Branches ( as on 31.03.07): 403
Metro : 4
14 5
3
Urban/Semi Urban : 86
12
2 3 Rural : 313
38 500
52 4
9 403
42 7 18 400
1
33
17 305
11 300
39 256
224
196
200
2 19 22 151
115 128
1 1
100 81
25 22 31
11
0
FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07
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6. Source of Borrowing
Insurance Co.
Mutual Fund (293Crs) Bonds
(2377Crs) 5% ( 3387Crs)
41%
59%
Others
(88Crs) Banks
2% (2979Crs)
52% Banks Fixed
(1520Crs.) Securitisation Deposits
27% ( 826Crs ) ( Rs.4Crs )
14% 0%
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7. CUMULATIVE NO. OF CUSTOMER
CONTRACTS (NOS.)
700,000 CAGR 38% 641,087
600,000
500,000 467,977
400,000 336,819
300,000
200,000
100,000
0
FY05 FY06 FY07
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8. TOTAL ASSETS (INR MILLION)
70,000
62,809
%
R 43
60,000 CAG
50,201
50,000
40,000
31,147
30,000
20,000
10,000
0
FY05 FY06 FY07
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9. TOTAL INCOME (INR MILLION)
9,000 44%
8,446
CAGR
8,000
7,000
5,964
6,000
5,000
4,048
4,000
3,000
2,000
1,000
0
FY05 FY06 FY07
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10. PROFIT AFTER TAX (INR MILLION)
27%
1,400 CAGR 1,329
1,200 1,083
1,000
823
800
600
400
200
0
FY05 FY06 FY07
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11. TOTAL INCOME (INR MILLION)
CONSOLIDATED
9,000 45%
8,500
CAGR
8,000
7,000
5,980
6,000
5,000
4,068
4,000
3,000
2,000
1,000
0
FY05 FY06 FY07
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12. PROFIT BEFORE TAX (INR MILLION)
CONSOLIDATED
%
R 23
CAG
2,500
2,068
2,000
1,646
1,500 1,356
1,000
500
0
FY05 FY06 FY07
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13. PROFIT AFTER TAX (INR MILLION)
CONSOLIDATED
27%
CAGR
1,600
1,400 1,347
1,200 1,091
1,000
840
800
600
400
200
0
FY05 FY06 FY07
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14. Key Investment Themes
Immense potential in the rural and semi urban markets
Early entry and knowledge of the rural and semi urban market
M&M Parentage
Strong Capital Base
Extensive Branch Network / Dealer Relationships
Consistent financial performance
Client Base
Prudent loan approval and administration procedures
Ability to borrow at competitive rates
Experienced Board and executive management team
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15. Thank you
Thank you
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