Apollo Tyres Limited. · NSE:APOLLOTYRE
Apollo Tyres — Apollo Tyres - Corporate Day 2022
40 slides from Apollo Tyres's conference presentation, Jun 17, 2022
Slide 1: Exchange filing cover letter for Investor Presentation
ATL/SEC/21 June 17, 2022 The Secretary, The Secretary, BSE Ltd. National Stock Exchange of India Ltd, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra-Kurla Complex, Mumbai – 400001. Bandra (E), Mumbai - 400 051 Sub: Investor Presentation Dear Sirs, Pursuant to Regulation 30(6) and 46
Slide 2: Investor Presentation | June 2022
Investor Presentation | June 2022
Slide 3: Disclaimer
Disclaimer These materials have been prepared by Apollo Tyres Limited together with its subsidiaries (the “Company”), are for informational purposes only and do not constitute a prospectus or an offer document, or form part of an offer, solicitation or invitation of any offer to purchase or subscrib
Slide 4: Vision FY2026
APOLLO TYRES LTD ion FY2026
Slide 5: Vision, Purpose and Values
APOLLO TYRES LTD Vision DRIVING PROGRESS, TOGETHER Purpose ENABLING EXCELLENCE Value FOLLOWING ONE TAKING OUR PASSION FAMILY RESPONSIBILITY
Slide 6: Performance Goals (FY26)
wa APOLLO “# «a TYRESLTD Performance Goals (FY 26) S5Bn >15% =12% to 15% <2
Slide 7: Enabling Excellence – Key Enablers
Enabling Excellence – 5 Key Enablers Digitalisation Technology Sustainability & Innovation DRIVING PROGRESS, TOGETHER Brand People 6
Slide 8: Digitalisation
Digitalisation Business Growth, Efficiency Improvements and Risk Mitigation Digitalisation • Innovate – New business / Revenue models, CRM and enhanced Technology customer service Sustainability & • Connect – Supply chain digitalisation DRIVING Innovation • Industry 4.0 - Build on the IOT installati
Slide 9: Technology & Innovation
Technology & Innovation Drive Product Leadership and Maintain Technology Readiness Digitalisation • Consistent focus on investments in R&D and product excellence for long term Technology • New product launches and range extension Sustainability & • Focus on EVs DRIVING Innovation PROGRESS, • Help ma
Slide 10: People
People Attract, Engage and Retain Best Talent Digitalisation • Apollo One Family Technology Sustainability & • Diversity and Inclusion Innovation DRIVING • Employee Engagement and Retention PROGRESS, • Professional Growth and Career Advancement TOGETHER • Succession Planning Brand People 9
Slide 11: Brands - India
Brands - India Brand Leadership in India Digitalisation • Full range player with leadership in radial technology Technology • Focus on growth and success of both brands Sustainability & • Increasing focus on brand building and marketing DRIVING Innovation PROGRESS, • Leveraging new age tools (digita
Slide 12: Brands – Europe / North America
Brands – Europe / North America Driving Premiumisation Digitalisation • Gaining footprint in geographies with big profit pool (Europe / North America) Technology • Increasing association with marquee German OEMs in Europe Sustainability & • Strong focus on UHP / UUHP segments DRIVING Innovation • Ne
Slide 13: Sustainability
Sustainability Ensure Long Term Sustainability and target to be Carbon Neutral Digitalisation • Sustainability Governance Technology • Circular Economy & Sustainability Innovation • People DRIVING PROGRESS, • Climate Change TOGETHER • Responsible value chain • Communities Brand People 12
Slide 14: Sustainability FY'26 Roadmap
Sustainability FY’26 Roadmap 2 Climate Change Sustainability Governance • Commitment to Carbon Neutrality by 2050- • Sustainability Governance as 1 Drawing de-carbonization roadmap for FY’26 per ISO 26000 • Water efficiency- Roadmap to improve water use efficiency • Waste conscious operations 3 4 Ci
Slide 15: Company Overview
Company Overview
Slide 16: Apollo Tyres Snapshot (FY22)
Apollo Tyres Snapshot (FY22) INR 209,476 Mn 12.3% 7% INR 6,386 Mn Consolidated Consolidated Consolidated Consolidated Revenue EBIDTA Margin 5 Yr EBIDTA CAGR Net Profit 2.3% 32% 1.8x INR 18,462 Mn CSR Spend % of 3 Yr Dividend % of Net Profit Net Debt/EBIDTA Capex Outlay Average Standalone Dividend –
Slide 17: Company Overview
Company Overview Experienced leadership team & board, and State of art production facilities and Leading global tyre manufacturer backed by long-term PE investor continued focus on R&D • Incorporated in 1972 • Experienced leadership team • 7 Manufacturing Plants (India: 5, Europe: 2) • A full range
Slide 18: Key Milestones
Key Milestones 2013 • Global R&D Center, Netherlands • Partnered with 2016 Manchester United • Launched two-wheeler 1991 tyres in India • Second Plant in Limda, Gujarat 2017 1995 • Second plant in Hungary, Europe • Acquired plant in Kalamassery, Kerala 1977 1991-1995 2006-2010 2011-2013 2014-2015 20
Slide 19: Eminent Board of Directors with Wide Ranging Expertise
Eminent Board of Directors with Wide Ranging Expertise Onkar Neeraj Akshay Gen. Bikram Singh Francesco Francesco Lakshmi Kanwar Kanwar Chudasama (Retd.) Crispino Gori Puri Chairman Vice Chairman & Independent Independent Non Independent Independent Managing Director Director Independent Director Dir
Slide 20: Strong Management Team with Deep Experience
Strong Management Team with Deep Experience Onkar Kanwar Neeraj Kanwar Benoit Rivallant Daniele Lorenzetti Gaurav Kumar European Operations Research & Technology Finance & Legal Chairman Vice Chairman & Total Experience: 34 years Total Experience: 28 years Total Experience:29 years Managing Director
Slide 21: Manufacturing Facilities
Manufacturing Facilities Sales to more than 100 countries worldwide Plant: Enschede, Netherlands Revenue Mix –FY22 Others, 2% Gyöngyöshalász, Hungary Europe, 30% Limda Geography (%) Chinnapandur Oragadam Kalamassery APMEA, Perambra 68% Manufacturing Plant Extensive distribution network in India- Dis
Slide 22: R&D and Technology (1/2)
R&D and Technology (1/2) • Established R&D centres of excellence in Asia & Europe • Established Original Equipment Manufacturer (OEM) focussed R&D centre in Germany • Well qualified and experienced team of ~425 scientists • Driving innovation, developing future technologies and winning products for
Slide 23: R&D and Technology (2/2)
R&D and Technology (2/2) Tyre Sensors EV Tyres RFID TAG Replacement Market • RFID Tag technology enhances tyre • Dedicated tyre product lines for EV have identification for fleet and customer services been developed for Apollo Tyres reference markets • RFID Tag technology has been developed and mark
Slide 24: OEM Partnerships
OEM Partnerships Auol BENTLEY e wy ||| conn Ferrari JOHN DEERE MASSEY FERGUSON Pix gases MS 5OEU Hyg) asa Mercedes-Benz _ ae = @ <p ose | VOLV (assed fooosan = ron IvECcO OLWO Lin e€—3 A = CATERPILLAR 5S §6© © «2 © @ APOLLO TYRES LTD (03)
Slide 25: Awards & Recognitions
Awards & Recognitions Leadership Customer Services Marketing / PR Human Resources Onkar S Kanwar awarded Onkar S Kanwar awarded Cannes: Silver Lion for Cannes: Golden India’s Best Companies to Work for Excellence in Customer Delight Dolphin for Marketing Order of the Rising Sun, Gold with the Office
Slide 26: Marketing Highlights
Marketing Highlights • Continued association with Manchester United FC • Partnership with Indian Super League & Chennaiyin FC • Vredestein Launch in India Recent customer engagement activities: • Consistent focus on new product launches o Abhimanyu - Virtual Product Launch with Sachin Tendulkar o Ap
Slide 27: Environment
Environment Climate Change Strategy • Conducted Climate Risk Assessment as per Taskforce on Climate related Financial Disclosures (TCFD) Framework. • Established Environment Working Group with a core focus on 3 areas – 1. Carbon Neutrality 2. Water Conservation 3. Waste Management • Carbon Neutralit
Slide 28: Social
Social India - Target to reach out to over 11 million beneficiaries by FY’26 Healthcare for Trucking Community - Reached out to over 7.2 million Livelihood for rural women - Reached out to over 15000 women beneficiaries. beneficiaries through 32 Apollo Tyres Healthcare Centres, in 19 States. EkN
Slide 29: Governance
Governance A Strong Board • More than 90% attendance in board meetings held in FY22 • Eminent people with strong Industry experience across domains • Strong governance model in place with representation from industry leaders and independent board members in various committees • Audit Committee • Sta
Slide 30: Business Overview
Business Overview
Slide 31: Our Brands & Product Portfolio
Our Brands & Product Portfolio Well Positioned Multi-Brand Strategy Across Different Segments Passenger Car Tyres Summer Winter Commercial Farm/Off Bicycle Pricing Brand All Season Two Wheeler Brand Vehicle Highway Segment Positioning Tyres Tyres Tyres Tyres Tyres Tyres Tyres Top Global Niche Premiu
Slide 32: Balanced Business Portfolio
Balanced Business Portfolio Product Revenue Mix - FY22 Two Wheeler, Others, 2% Others, 3% 4% Commercial Vehicle, 12% Farm/Off Highway, 8% Passenger Vehicle, India Farm/Off Highway, 16% Europe 21% Commercial Vehicle, 65% Passenger Vehicle, 69% 31
Slide 33: Product Portfolio
Product Portfolio Commercial Vehicle Segment Passenger Vehicles Segment • Leadership in the commercial vehicle segment in India, with a • One of the leading players in India with ~20% market share market share of ~30% • Recently launched premium Vredestein brand in India • The company caters to all
Slide 34: Strategic Overview
Strategic Overview
Slide 35: Key Areas of Focus
Key Areas of Focus Targeting significant improvement in financial Generating Sweating of metrics to reach Vision positive free Assets FY2026 performance Cash flow targets Strengthening of Improvement in Balance Sheet Return Ratios 34
Slide 36: Financial Overview
Financial Overview
Slide 37: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Revenue (INR Mn) EBITDA (INR Mn) & Margins (%) PAT (INR Mn) & Margins (%) 27,975 8000 7,239 209,476 25,741 6,798 7000 6,386 175,488 173,970 163,502 19,587 19,386 6000 150,977 5% 4,764 16,536 5000 16% 4000 4% 3,502 3% 12% 12% 3000 3% 11% 11% 2000 2% 1000
Slide 38: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY18 FY19 FY20 FY21 FY22 Revenue 150,977 175,488 163,502 173,970 209,476 Expenses 134,441 155,902 144,116 145,995 183,735 EBITDA 16,536 19,586 19,386 27,975 25,741 EBITDA Margin (%) 10.9% 11.2% 11.9% 16.1% 12.3% Other Income 1,142 1,231 2
Slide 39: Capital Market Data
Capital Market Data Stock Price Performance Dividend Payout Ratio (%) 260% 1 63% 210% 1 160% 1 0 36% 110% 32% 0 27% 24% 60% 0 10% 0 -40% 0 FY18 FY19 FY20 FY21 FY22 Apollo Tyres BSE Sensex Shareholding Pattern as on 31st March 2022 Top Marquee Shareholders as on 31st March 2022 Shareholder % Sharehol
Slide 40: Thank you
For further details please feel free to get in touch with the IR team Himanshu Sharma Head – IR & Budgeting himanshu.sharma1@apollotyres.com Thank you