Slide 1: Exchange filing cover letter: Investor Presentation Q4 FY2021
ATL/ SEC-21 May 13, 2021 The Secretary, The Secretary, National Stock Exchange of India Ltd., BSE Ltd. Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (E), Mumbai – 400001. Mumbai - 400 051 Sub: Investor Presentation – Q4 FY2021 Dear Sirs, Pursuant to Regulation
Slide 2: Q4 FY 2021 – Investor Presentation
Q4 FY 2021 – Investor Presentation May 2021
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 Company Overview & Highlights 4 2 COVID-19 Update 10 3 Key Near-Term Areas of Focus 14 4 Quarter Update (Q4 FY 2021) 20 5 Key Financials 27 apollotyres.com 3
Slide 5: Apollo Tyres – Top Radial Tyre Player in India
Apollo Tyres – Top Radial Tyre Player in India Revenue Mix – Consolidated FY 2021 Large scale & sustained profitability profile Consolidated Revenue of ~₹174 Bn in FY 2021 By Product By Channel Consolidated EBITDA of ~₹28 Bn (16%) in FY 2021 Light Truck, Others, 6% 5% Strong brands with leading
Slide 6: Well Set to Leverage Attractive Market Opportunity
Well Set to Leverage Attractive Market Opportunity Key milestones over past ~10 years Past Decade Significant investments made in 2020 building brand, plant 2018 infrastructure, distribution, and R&D capability 2017 Today Enjoy leading market position 2010 Commenced and industry-leading capacity pro
Slide 7: Strong Management Team with Deep Experience
Strong Management Team with Deep Experience Onkar Kanwar Neeraj Kanwar Hizmy Hassen Gaurav Kumar Daniele Lorenzetti Pedro Matos Chairman & Vice Chairman & IT & Digital Finance & Legal Research & Consultant - Managing Director Managing Director Technology Engineering Services, Project Management and
Slide 8: Experienced Board of Directors with Wide Expertise
Experienced Board of Directors with Wide Expertise Onkar Kanwar Neeraj Kanwar Anjali Bansal Akshay Francesco Crispino Francesco Gori Vishal Mahadevia Former Global Chudasama Chairman & Vice Chairman & Partner and MD Regional Managing Co-Founder Former-CEO MD, Head of Managing Director Managing Direc
Slide 9: Investment Highlights
Investment Highlights Strong Leadership Team & Board, Positive Industry Dynamics in India Strong Execution in a Challenging Market and Backed by Long-Term PE Investor Attractive market structure consolidating Revenues/Profits higher than prior year around strong, domestic brands for last couple
Slide 10: Table Of Contents
Table Of Contents Page # 1 Company Overview & Highlights 4 2 COVID-19 Update 10 3 Key Near-Term Areas of Focus 14 4 Quarter Update (Q4 FY 2021) 20 5 Key Financials 27 apollotyres.com 9
Slide 11: Performance During COVID-19
Performance During COVID-19 India Positive demand momentum across key segments / key channels driven by preference for personal mobility, government spend on infra, import restrictions, recovery in sectors like mining Q4 turnover highest ever clocked by the company, driven by YoY growth across p
Slide 12: Performance During COVID-19
Performance During COVID-19 Cash flows Generated free cash flow (consolidated) of ₹ 7bn during FY21, helped by Recovery in top line performance and control over costs Control over capex Working capital optimisation Fund mobilization Raised ₹ 10.8bn from a top private equity Investor Rais
Slide 13: Dealing with COVID-19 – Employee Initiatives
Dealing with COVID-19 – Employee Initiatives Employee Engagement, Recognition and Welfare Announced a slew of measures in last few months to support and help employees during these times Tied up with leading hospitals for providing timely doctor advice and support during home isolation Imported
Slide 14: Table Of Contents
Table Of Contents Page # 1 Company Overview & Highlights 4 2 COVID-19 Update 10 3 Key Near-Term Areas of Focus 14 4 Quarter Update (Q4 FY 2021) 20 5 Key Financials 27 apollotyres.com 13
Slide 15: Key Near-Term Areas of Focus
Key Near-Term Areas of Focus Strong focus on business fundamentals Consolidating position in India with 3R strategy Range – A formidable portfolio that allows leadership position in India and a wider footprint in export markets Rural – New distribution formats facilitating access to untapped
Slide 16: Key Near-Term Areas of Focus
Key Near-Term Areas of Focus Thrust on Digitalisation Focus areas - Process digitalization, Business Model Innovation and Social media use in media mix Multiple digital product launches across regions Focus on raw materials R&D focus on new recipes to a) boost performance and b) reduce inp
Slide 17: Focus on Brand Building
Focus on Brand Building Global brands with a legacy of performance, quality, trust and reliability Rank 53 Rank 69 Rank 93 Onboarded “God of Cricket” as Apollo Tyres’ Brand Ambassador apollotyres.com 16
Slide 18: Focus on Brand Building
Focus on Brand Building Customer engagement activities Bad Road Buddies 2.0 Apterra Cross Product Launch Abhimanyu Product Launch BOFO e-commerce Portal Launch apollotyres.com 17
Slide 19: Expanding Footprint in Rural India
Expanding Footprint in Rural India Total Rural Outlets (Including Sub dealers) 7000 5,800 6000 5000 4000 3000 2000 1,230 1,350 1000 0 FY 19 FY 20 FY 21 apollotyres.com 18
Slide 20: Table Of Contents
Table Of Contents Page # 1 Company Overview & Highlights 4 2 COVID-19 Update 10 3 Key Near-Term Areas of Focus 14 4 Quarter Update (Q4 FY 2021) 20 5 Key Financials 27 apollotyres.com 19
Slide 21: Key Marketing Initiatives and Customer Wins
Key Marketing Initiatives and Customer Wins India Continued focus on gaining new customers and deepening ties with existing customers in the OEM segment During the year gained leadership positions in radial categories and also registered strong resurgence in Bias segments Launched e-commerce p
Slide 22: Podium Positions in Europe
Podium Positions in Europe Date Test Agency Recommendation Position Tyre Model Apr-20 ADAC Recommendable 4th Vredestein Vorti Apr-20 AutoBild Top 50 Exemplary 4th+5th Vorti and Aspire XP Apr-20 AutoBild Allrad Exemplary 3rd Vredestein Ultrac Satin Apr-20 AutoBild Sportscars Good 4th Vredestein Vorti
Slide 23: Operating Highlights – Consolidated
Operating Highlights – Consolidated Revenue (₹ Mn) EBITDA Margin (%) 55,000 17.0% 16.2% 50,257 16.0% 50,000 15.0% 45,000 14.0% 13.3% 13.0% 40,000 36,156 12.0% 35,000 11.0% 30,000 10.0% Q4FY20 Q4FY21 Q4FY20 Q4FY21 Topline performance driven by demand recovery across key geographies The topline gr
Slide 24: Operating Highlights – India
Operating Highlights – India Revenue (₹ Mn) EBITDA Margin (%) 38,000 15.6% 36,296 15.4% 36,000 15.4% 34,000 15.2% 32,000 15.0% 30,000 14.8% 28,000 14.6% 14.4% 26,000 14.4% 24,313 24,000 14.2% 22,000 14.0% 20,000 13.8% Q4FY20 Q4FY21 Q4FY20 Q4FY21 Volume Best ever quarter in terms of sales, surpas
Slide 25: Operating Highlights – Europe
Operating Highlights – Europe Revenue (€ Mn) EBITDA Margin (%) 140 20.0% 18.1% 135 18.0% 135 16.0% 130 14.0% 124 125 12.0% 10.1% 120 10.0% 8.0% 115 6.0% 110 4.0% 105 2.0% 100 0.0% Q4FY20 Q4FY21 Q4FY20 Q4FY21 Decent recovery in industry volumes in Q4 FY21 YoY Gained market share in premium PCLT s
Slide 26: Consolidated Cash Flow & Balance Sheet Highlights
Consolidated Cash Flow & Balance Sheet Highlights Control over capex Free cash flow generation Capex (₹ Bn) Free Cash flow (₹ Bn) 30 28 8 7 6 25 4 20 2 - 15 12 FY20 FY21 (2) 10 (4) (6) 5 (8) - -8 (10) FY20 FY21 Notes: 1. Free Cash Flow: Cash from operating activities less capex, interest and lease p
Slide 27: Table Of Contents
Table Of Contents Page # 1 Company Overview & Highlights 4 2 COVID-19 Update 10 3 Key Near-Term Areas of Focus 14 4 Quarter Update (Q4 FY 2021) 20 5 Key Financials 27 apollotyres.com 26
Slide 28: Profit & Loss (Quarterly) – Consolidated (1 of 2)
Profit & Loss (Quarterly) – Consolidated (1 of 2) Particulars (₹ Mn) Q4FY21 Q4FY20 Q3FY21 % Change - YoY % Change - QoQ Net Sales 49,273 35,512 49,653 39% -1% Other operating Income 984 644 2,294 53% -57% Revenue from Operations 50,257 36,156 51,947 39% -3% Raw Material 1 27,585 19,020 27,039 45% 2%
Slide 29: Profit & Loss (Yearly) – Consolidated (2 of 2)
Profit & Loss (Yearly) – Consolidated (2 of 2) Particulars (₹ Mn) FY21 FY20 % Change - YoY Net Sales 169,546 160,965 5% Other operating Income 4,424 2,537 74% Revenue from Operations 173,970 163,502 6% Raw Material 1 93,945 90,756 4% Staff Cost 25,134 24,822 1% Other Costs 26,917 28,537 -6% EBITDA 2
Slide 30: Profit & Loss (Quarterly) – Standalone (1 of 2)
Profit & Loss (Quarterly) – Standalone (1 of 2) Particulars (₹ Mn) Q4FY21 Q4FY20 Q3FY21 % Change - YoY % Change - QoQ Net Sales 35,357 23,711 32,302 49% 9% Other operating Income 939 603 1,889 56% -50% Revenue from Operations 36,296 24,313 34,191 49% 6% Raw Material 1 22,273 14,501 19,419 54% 15% St
Slide 31: Profit & Loss (Yearly) – Standalone (2 of 2)
Profit & Loss (Yearly) – Standalone (2 of 2) Particulars (₹ Mn) FY21 FY20 % Change - YoY Net Sales 113,545 108,327 5% Other operating Income 3,789 2,356 61% Revenue from Operations 117,334 110,683 6% Raw Material 1 69,401 68,375 1% Staff Cost 9,109 8,261 10% Other Costs 18,481 20,055 -8% EBITDA 20,3
Slide 32: THANK YOU
THANK YOU For further details please feel free to get in touch with the IR team Ravi Shingari Group Head - Accounts and Taxation ravi.shingari@apollotyres.com +91 9810300390 Himanshu Sharma Divisional Head - Investor Relations himanshu.sharma1@apollotyres.com +91 9167661692 apollotyres.com 31