Apollo Tyres Limited. · NSE:APOLLOTYRE
Apollo Tyres — Non-Deal Roadshow (May 2018)
32 slides from Apollo Tyres's roadshow presentation, May 14, 2018
Slide 1: Investor Conference Presentation Cover Letter to Exchanges
APOLLO TYRES LTD 7 Institutional Area Sector 32 Gurgaon 122001, India T: +91124 2383002 F: +91124 2383021 apollotyres.com GST No.: 06AAACA6990QlZ2 ATL/SEC/21 May 14, 2018 The Secretary, The Secretary, BSE Ltd. National Stock Exchange of India Ltd, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Str
Slide 2: Management Presentation May 2018
MANAGEMENT PRESENTATION May 2018
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: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 25 5 KEY STRATEGIES 28 6 APPENDIX 30 apollotyres.com
Slide 5: Vision and Values
VISION AND VALUES The following are the values we strive to adhere to VISION 2020 Customer first We believe that our customers and those whom they serve are central to everything we do Unlock a world Business ethics of opportunities. We act with integrity Care for society To be a premier tyre co
Slide 6: Company Snapshot
COMPANY SNAPSHOT One of the leading tyre companies in India with global presence Global tyre company Broad product portfolio Diversified product, channel & geographic split Revenue segmentation (FY 2017) One of the leading tyre companies in India Vehicle Wide footprint outside India with product
Slide 7: Regional Overview
REGIONAL OVERVIEW Diversified product portfolio across geographies India Europe Other geographies Brands Product portfolio Tyres for commercial vehicles, Tyres for passenger vehicles, Tyres for commercial vehicles, passenger vehicles, farm and other commercial vehicles, bicycles, passenger veh
Slide 8: Key Milestones
KEY MILESTONES Apollo’s growth has been driven by a mix of organic and inorganic initiatives Commercial production at Chennai brownfield expansion Commenced construction of Commenced production at Hungary (PCR & TBR) Hungary greenfield plant greenfield plant Global procurement office, Singap
Slide 9: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 25 5 KEY STRATEGIES 28 6 APPENDIX 30 apollotyres.com
Slide 10: Industry Dynamics – Indian Tyre Sector
INDUSTRY DYNAMICS – INDIAN TYRE SECTOR Sizeable industry… …with positive growth outlook Tyres available for sale in India1 (m units) Tyre sales in India (m units)3 CAGR (CY 2016 – CY 2021E) CAGR (FY 2012 – FY 2016) 141 147 100 121 118 122 124 112 5.9% 20 79 70 76 15 66 58 62 68 8.4% 61 4.6% 15 2 2 1
Slide 11: Industry Dynamics – European Tyre Sector
INDUSTRY DYNAMICS – EUROPEAN TYRE SECTOR Steady growth trend… …expected to continue Tyre sales in Europe (m units)1 Estimated tyre sales in Europe (m units)1 CAGR CAGR (CY 2012 – CY 2016) (CY 2016 – CY 2021E) 490 450 450 415 30 0.0% 25 30 4.7% 30 420 1.9% 420 460 1.8% 390 CY 2012 CY 2016 CY 2016 CY
Slide 12: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 25 5 KEY STRATEGIES 28 6 APPENDIX 30 apollotyres.com
Slide 13: Company Strengths
COMPANY STRENGTHS 1 Diversified product portfolio and geographical presence 2 Leadership in the Indian market with well positioned global brands 3 Extensive global footprint with widespread distribution network 4 Strategically located manufacturing plants 5 Well established relationships with global
Slide 14: Diversified Product Portfolio and Geographical Presence
DIVERSIFIED PRODUCT 1 PORTFOLIO AND GEOGRAPHICAL PRESENCE Product Segmentation (FY 2017) Channel Segmentation (FY 2017) Geographical Segmentation (FY 2017) Farm and Rest of the other World vehicle 8% 14% OEM Truck 23% Light truck 41% 6% Europe Net Sales Net Sales Net Sales 32% INR130.6bn INR130.6bn
Slide 15: Leadership in the Indian Market…
LEADERSHIP IN THE INDIAN 2 MARKET… Truck PCR Market share based on volume (9MFY 2017) 15% 25% 75% 85% Tractor (Rear) TBB TBR 19 % 28% 21% 81 72% 79% % Market share for Apollo Market share for other players One of the leading players in India with significant market share across product categories ap
Slide 16: …With Well Positioned Global Brands
…WITH WELL POSITIONED 2 GLOBAL BRANDS Commercial Two Pricing Primary UHP and Passenger car Farm vehicle Off highway Brand vehicle (Truck Bicycle tyres wheeler segment geography winter tyres tyres tyres vehicle tyres & LCV) tyres tyres Top Europe Medium India, Europe Others Indi
Slide 17: Extensive Global Footprint…
EXTENSIVE GLOBAL 3 FOOTPRINT… Europe Head Office: Amsterdam, Netherlands R&D Centre Europe: Enschede & Raunheim1 Corporate / Global Marketing Office: India Head Office: Gurgaon London, UK R&D Centre APMEA: Chennai & Bengaluru1 Sales / Marketing Office: Dubai, UAE Sales / Marketing Offi
Slide 18: …With Widespread Distribution Network
…WITH WIDESPREAD 3 DISTRIBUTION NETWORK India Europe Other geographies Extensive distribution network in India1 Distribution network across Europe1 Expanding distribution network1 ~5,300 third party dealers (including ~1,700 ~5,800 third party dealers in Europe 140 third party dealers in Thail
Slide 19: Strategically Located Manufacturing Plants
STRATEGICALLY LOCATED 4 MANUFACTURING PLANTS Enschede, Netherlands Tyres: Passenger vehicle and Agricultural vehicles Limda, Gujarat Tyres: Passenger cars, light trucks, Gyöngyöshalász, Hungary truck bias, farm vehicles, OHV and Tyres: Passenger car & trucks other vehicles Located in proximi
Slide 20: Well Established Relationships with Global Industry Players
WELL ESTABLISHED 5 RELATIONSHIPS WITH GLOBAL INDUSTRY PLAYERS Key Customers Audi Daimler AG Hyundai Mahindra & Mahindra Fiat Skoda Chrysler Ford General Motors Volkswagen Ashok Leyland John Deere New Holland Maruti Tata Motors Volvo Eicher Toyota MAN Nissan Porsche Suzuki Raw Material Suppliers Birl
Slide 21: Strong Research and Development Capabilities…
STRONG RESEARCH AND 6 DEVELOPMENT CAPABILITIES… Focused on commercial vehicle, passenger vehicle, off-road and two wheeler tyres Focus on new product development to R&D Centre, grow market share APMEA, R&D focus helped establish leadership position in PCR OEM segment in Chennai, India India
Slide 22: …With a Track Record of Innovation
…WITH A TRACK RECORD OF 6 INNOVATION Strong research and development capabilities Apollo Apollo Apollo Vredestein AMAZER 4G LIFE ALNAC 4G APTERRA HT2 Ultrac Satin- Summer tyre Recent tests demonstrate high quality of products Technological innovations Air Master Amazer 4G Life Space master Striving
Slide 23: Seasoned Management and Experienced Board (1/2)
SEASONED MANAGEMENT AND 7 EXPERIENCED BOARD (1/2) Board of Directors Onkar S Kanwar – Chairman & Managing Director • Accomplished business professional with over four decades of experience • Served as the President of FICCI and Chairman of the Automotive Tyre Sunam Sarkar Francesco Gori Robert Stein
Slide 24: Seasoned Management and Experienced Board (2/2)
SEASONED MANAGEMENT AND 7 EXPERIENCED BOARD (2/2) Management Board Sunam Sarkar Robert Steinmetz P K Mohamed Markus Korsten Gaurav Kumar President & Chief Business Advisor Chief Advisor, R&D Chief Manufacturing Chief Financial Officer Officer Officer Onkar S Kanwar Chairman & Managing Director Satis
Slide 25: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 25 5 KEY STRATEGIES 28 6 APPENDIX 30 apollotyres.com
Slide 26: Financial Track Record (1/2)
FINANCIAL TRACK RECORD (1/2) Net sales EBITDA 11.4% 14.1% 15.2% 17.0% 14.0% 11.1% 146.7 127.9 133.1 127.3 130.6 18.8 19.3 20.0 117.4 18.5 16.5 14.6 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Net sales¹ (INRbn) EBITDA² (INRbn) EBITDA2 margin (%) Ne
Slide 27: Financial Track Record (2/2)
FINANCIAL TRACK RECORD (2/2) Capital return 23.6% 23.9% 25.2% 18.3% 20.7% 19.7% 20.3% 18.7% 15.2% 15.8% 8.8% 8.5% FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 2,3 1,3 ROCE1,3 ROCE (%)(%) ROEROE (%) (%) Leverage 0.7 0.2 0.1 0.1 0.4 0.3 1.6 0.5 0.2 0.
Slide 28: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 25 5 KEY STRATEGIES 28 6 APPENDIX 30 apollotyres.com
Slide 29: Key Strategies
KEY STRATEGIES Maintain leadership position and grow Premiumization in Europe Improve cost competitiveness market share in India Positioned to take advantage of the Aim to substantially increase the share in Establishing cost efficient greenfield growth in the Indian tyre market the premium se
Slide 30: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 25 5 KEY STRATEGIES 28 6 APPENDIX 30 apollotyres.com
Slide 31: List of Abbreviations
LIST OF ABBREVATIONS APMEA Asia Pacific Middle East and Africa Group M&HCV Medium and Heavy Commercial Vehicles ASEAN Association of Southeast Asian Nations OEM Original Equipment Manufacturer ATMA Automotive Tyre Manufacturers’ Association OHV Off Highway Vehicle BRICS Brazil, Russia, India, China
Slide 32: Thank You
Thank You apollotyres.com 31