Ceat Limited · NSE:CEATLTD
Ceat — Q3 FY22 Earnings Presentation
27 slides from Ceat's earnings presentation, Jan 19, 2022
Slide 1: Stock exchange letter: Q3 FY22 Investors Presentation
January 19, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai 400 001 Mumbai 400 051 Security Code: 500878 Symbol: CEATLTD NCD Symbol: CL23, CL25 CP Listed ISIN: INE482A14AR9, INE482A14AT5, I
Slide 2: Q3 FY22 – Investor Presentation
Q3 FY22 – Investor Presentation | 19th January 2022
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: Table of Contents
Table of Contents Section 1: RPG Group Overview 4-6 Section 2: Business Overview 7-17 Section 3: Financial Performance 18-26 Section 4: ESG Highlights 27-31
Slide 5: Section 1: RPG Group Overview
Section 1: RPG Group Overview Section 1: RPG Group Overview
Slide 6: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics UNLEASHTALENT RPG Enterprises was founded in 1979. The group currently operates various businesses in Infrastructure, Technology, Life Sciences, Plantations and Tyre industries . The group has business TOUCHLIVES history dating back to 1820 AD in banki
Slide 7: RPG Group: Key Financials
RPG Group: Key Financials FY17-21 Gross Total Income (Rs Cr.) FY17-21 CAGR: EBITDA PAT CAGR: 7.0% EBITDA 10.1% 3,006 PAT 8.9% 26,269 2,594 23,833 24,682 2,423 21,766 2,218 20,052 2,045 1,377 1,031 1,099 1,111 980 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Net Worth ROE ROCE Market Cap 12,000.
Slide 8: Section 2: Business Overview
Section 2: Business Overview Section 1: RPG Group Overview
Slide 9: Overview
Overview India’s leading tyre company for 60+ years Presence in 100+ countries, with strong brand recall 4,500+ dealers, 550+ CEAT special channels #No 1 player in Sri Lanka in terms of market share 7 Manufacturing facilities - Mumbai, Nasik, Halol, Nagpur, Ambernath, Chennai & Sri Lanka H1 FY22 Rev
Slide 10: Board of Directors
Board of Directors Harsh Vardhan Goenka Anant Goenka Arnab Banerjee Pierre E. Cohade Chairman, Non Executive Director Managing Director COO and Whole Time Director Non Executive, Non Independent Director Paras K. Chowdhary Atul C. Choksey Haigreve Khaitan Mahesh S. Gupta Non Executive, Non Independe
Slide 11: Leadership Team
Leadership Team Anant Goenka Kumar Subbiah Arnab Banerjee Milind Apte Managing Director Executive Director, Finance & CFO Chief Operating Officer Senior Vice President, Human Resources Dilip Modak Saurav Mukherjee Peter Becker Senior Vice President, Manufacturing Senior Vice President, Global Sales
Slide 12: Growth Strategy
Growth Strategy Extensive Distribution Accelerated Growth in International Business Strong Brand Differentiated Products OEM Relationships World Class R&D 11
Slide 13: Extensive Distribution
1 Extensive Distribution FMCG style distribution, industry leading number of Continuously expanding footprint and enriching touch-points customer experience 4,500+ 400 600+ 100 300+ 10 580+ Dealers & Channel Partners CEAT Special Channels Distributors Districts (Shoppe / SIS) Approximate number as o
Slide 14: Strong Brand
2 Strong Brand Focused campaigns around umbrella theme of Safer & Smarter Mobility “Best Product Launch Campaign” Smarties India 2021 Select digital campaigns for Q3 FY22 “Best Brand Promotion on OTT & Video Streaming“ Brand Equity Media Strategy Awards 2021 13
Slide 15: Deep OEM Partnerships
3 Deep OEM Partnerships Honda Royal Enfield Bajaj Yamaha Suzuki Hero Hero Electric Piaggio LML Tork Tunwal Okinawa Scooters Kawasaki Maruti Suzuki TATA Motors Mahindra Renault Hyundai KIA Nissan Force Motors Datsun Skoda Peugeot Volkswagen Morris Garage TATA Motors Ashok Leyland VECV Escorts AMW TAF
Slide 16: World Class R&D
4 World Class R&D • Consistently churning variants across vehicle platforms and geographies • Focus on upcoming technologies like Electric Vehicle, Smart Tyres and Sustainability • Significant investment on tyre testing infrastructure like Anechoic Chamber, Flat Track Test Machine • 100+ patent fili
Slide 17: Differentiated Products – Platforms & Recent OEM Launches
5 Differentiated Products – Platforms & Recent OEM Launches Performance based platforms Stronger OEM relationships, better traction for replacement cycle Skoda Slavia Mahindra Bolero Neo Nissan Magnite Okaya EV Scooter Hero HF Deluxe Suzuki Gixxer Olectra EV Bus Ashok Leyland Ecomet Tata Motors BS V
Slide 18: Accelerated Growth In International Business
6 Accelerated Growth In International Business Key Export Markets 45% Emerging markets YoY Growth in Export Revenue 100+ 12 Countries Present EU and Americas new focus areas. Business driven by local insights and marketing 680+ 68 SKUs in Off-Highway Tyres Addition / progress in 9M FY22 17
Slide 19: Section 3: Financial Performance
Section 3: Financial Performance
Slide 20: Consolidated: Q3 FY22 Financial Highlights
Consolidated: Q3 FY22 Financial Highlights Q3 FY22 v/s Q3 FY21 (YoY) Q3 v/s Q2 FY22 (QoQ) • Net revenue INR 2,413 Crs increased 8.6% • Net revenue INR 2,413 Crs declined 1.6% • Gross margin 34.0 % contracted by 1,156 bps • Gross margin 34.0 % contracted by 292 bps • EBITDA margin 5.9% contracted by
Slide 21: Consolidated: Q3 and 9M FY22 Financials
Consolidated: Q3 and 9M FY22 Financials All figures in INR Crs Parameter Q3 FY21 Q2 FY22 Q3 FY22 QoQ YoY 9M FY21 9M FY22 YoY Net Revenue from operations 2,221.3 2,451.8 2,413.3 -2% 9% 5,319.9 6,771.4 27% Raw Material 1,209.6 1,547.0 1,593.2 3% 32% 2,938.0 4,304.5 47% Gross margin 1,011.7 904.8 820.1
Slide 22: Consolidated: Financial Trends
Consolidated: Financial Trends All figures in INR Crs Revenue EBITDA and Margin 7,610 1,019 6,985 6,779 6,771 741 751 663 5,320 543 9.5% 10.9% 13.4% 14.1% 8.0% FY19 FY20 FY21 9M FY21 9M FY22 FY19 FY20 FY21 9M FY21 9M FY22 PAT and Margin Debt and Leverage Ratios 432 2,260 1,929 279 1,498 1,556 251 23
Slide 23: Standalone: Q3 and 9M FY22 Financials
Standalone: Q3 and 9M FY22 Financials All figures in INR Crs Parameter Q3 FY21 Q2 FY22 Q3 FY22 QoQ YoY 9M FY21 9M FY22 YoY Net Revenue from operations 2,212.5 2,432.3 2,406.1 -1% 9% 5,293.8 6,736.2 27% Raw Material 1,206.5 1,535.9 1,591.9 4% 32% 2,925.4 4,291.6 47% Gross margin 1,006.0 896.5 814.3 -
Slide 24: Section 4: ESG Highlights
Section 4: ESG Highlights ORPG cent ll
Slide 25: Sustainability Goals
Sustainability Goals Manufacturing ✓ Plant electricity through rooftop / captive solar plants ✓ Using briquette as fuel Materials Transportation ✓ Greener raw materials; Reduce Carbon Footprint by 50% ✓ Network optimization recycled crumb rubber by 2030 ✓ Alternate Mode of Transport ✓ ESG compliant
Slide 26: Select Environment & Society Initiatives
Select Environment & Society Initiatives 5-10% reduction in Nasik, Bhandup and Halol, Nasik, 26% plant power Nagpur, Chennai rolling resistance Nagpur plant certified Nagpur, Chennai through solar roof platinum and Halol for select SKUs (YoY) for energy and Ambernath ZLD top plant gold certified man
Slide 27: GOO06
GOO06 000 ORPG