Slide 1: Exchange filing cover letter: Investor Presentation Q1 FY22
ATL/SEC/21 August 5, 2021 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 – Q1 FY22 Dear Sirs, Pursuant to Regulation 3
Slide 2: Investor Presentation Q1 FY22
Investor Presentation Q1 FY22
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: Content
Content • Company Overview & Highlights • Vision FY2026 • Recent Performance Update • Key Near-Term Areas of Focus • Quarter Update (Q1 FY22) • Key Financials 3
Slide 5: Company Overview & Highlights
Company Overview & Highlights 4
Slide 6: Leading Indian Tyre Player with Global Footprint
Leading Indian Tyre Player with Global Footprint Revenue Mix Consolidated – Q1 FY22 Large scale & sustained profitability profile Consolidated Revenue of ~₹174 Bn in FY21 By Product By Channel Consolidated EBITDA of ~₹28 Bn (16%) in FY21 Light Others Truck 7% 6% Strong brands with leading market
Slide 7: Well Set to Leverage Attractive Market Opportunity
Well Set to Leverage Attractive Market Opportunity Completed doubling of TBR capacity in Past Decade Chennai plant 2020 Significant investments made in brand building, plant infrastructure, 2018 distribution, and R&D capability Divested South African Ops 2017 Today Acquired 2013 Enjoys leading marke
Slide 8: 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 & Digitalisation & IT Finance & Legal Research & Technology Global Programme Managing Director Managing Director Management and European OE Busines
Slide 9: Eminent Board of Directors with Wide Ranging Expertise
Eminent Board of Directors with Wide Ranging Expertise Onkar Kanwar Neeraj Kanwar Anjali Bansal Akshay Chudasama Francesco Crispino Francesco Gori Vishal Mahadevia Former Global Partner Regional Managing Chairman & Vice Chairman & and MD Partner Co-Founder Former-CEO MD, Head of Managing Director Ma
Slide 10: 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 size & structure. Healthy revenue / operating performance Experienced leadership team with significant Consol
Slide 11: Vision FY2026
Vision FY2026 APOLLO TYRES LTD
Slide 12: Vision FY2026: Medium-Long Term Targets
Vision FY2026 Medium-Long Term Targets Revenue & Performance Goals Net Debt to Revenue EBITDA ROCE EBITDA $5Bn >15% 12% - 15% Under 2x 11
Slide 13: Vision FY2026 Enabling Excellence – Key Enablers
Vision FY2026 Enabling Excellence – 5 Key Enablers Digitalisation Technology Sustainability DRIVING & PROGRESS, Innovation TOGETHER Brand People 12
Slide 14: Recent Performance Update
Recent Performance Update 13
Slide 15: Recent Performance - Operations
Recent Performance - Operations India Post Covid wave 2nd we have witnessed healthy demand momentum across key segments / key channels driven by growing preference for personal mobility, government spend on infra, import restrictions etc Increased prices in replacement segment by ~6-9% in last 7
Slide 16: Recent Performance – Financial
Recent Performance – Financial Cash flows Negative free cash flow (consolidated) of ₹ 6bn in 1Q FY22, impacted by Subdued operating performance in India Covid 2nd wave impacting business Generated free cash flow (consolidated) of ₹ 7bn during FY21 Fund mobilization Raised ₹ 10.8bn from a t
Slide 17: Dealing with COVID-19 – Employee Initiatives
Dealing with COVID-19 – Employee Initiatives Ex Gratia: Supporting families of deceased employees through continuing CTC for a defined period Education Support: Organisation to cover children’s education cost till graduation Hospital Tie ups: Tie ups with leading hospitals for beds, oxygen con
Slide 18: Key Near-Term Areas of Focus
Key Near-Term Areas of Focus 17
Slide 19: 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 20: Key Near-Term Areas of Focus
Key Near-Term Areas of Focus Thrust on Digitalization 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 21: Focus on Brand Building
Focus on Brand Building Global brands with a legacy of performance, quality, trust and reliability Onboarded “God of Cricket” as Apollo Tyres’ Brand Ambassador 20
Slide 22: 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 21
Slide 23: Expanding Footprint in Rural India
Expanding Footprint in Rural India Total Rural Outlets (including Sub dealers) 6,200 5,800 1,230 1,350 FY19 FY20 FY21 Q1 FY22 22
Slide 24: Podium Positions in Europe
Podium Positions in Europe Podium positions are key driver of improvement in market share, price positioning and profitability 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 AutoBi
Slide 25: Quarter Update (Q1 FY22)
Quarter Update (Q1 FY22) APOLLO TYRES LTD
Slide 26: 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 New model wins in PCR OE segment during the quarter - Hyundai Alcazar, Skoda Kushaq & Tata Safari Increased focus on export markets to mitiga
Slide 27: Operating Highlights – Consolidated
Operating Highlights – Consolidated Revenue (₹ Mn) EBITDA Margin (%) 12.4% 45,845 8.5% 28,817 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 YoY topline growth driven by lower base in Q1 FY21 Consolidated operating performance supported by healthy operating performance in Europe Pricing environment was stabl
Slide 28: Operating Highlights – India
Operating Highlights – India Revenue (₹ Mn) EBITDA Margin (%) 32,200 10.8% 10.4% 17,732 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Volume The quarter got impacted by Covid 2nd wave. YoY growth driven by lower base in 1Q FY21 While we saw the maximum impact of 2nd wave in May 2021, June 2021 witnessed ste
Slide 29: Operating Highlights – Europe
Operating Highlights – Europe1 Revenue (€ Mn) EBITDA Margin (%) 114 16.3% 91 2.2% Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Witnessed demand momentum in industry volumes Gained market share in TBR and OHT segments Improvement in sales mix - UHP/ UUHP accounted for ~38% of PCLT sales in volume terms (Q1
Slide 30: Consolidated Cash Flow & Balance Sheet Highlights
Consolidated Cash Flow & Balance Sheet Highlights Capex level in line with guidance Subdued environment impacted free cash flow generation Capex (₹ Bn) Free Cash flow (₹ Bn) 7 12 5 FY21 YTD FY22 -6 FY21 YTD FY22 Notes: 1. Free Cash Flow: Cash from operating activities less capex, interest and lease
Slide 31: Key Financials
Key Financials APOLLO TYRES LTD
Slide 32: Profit & Loss (Quarterly) – Consolidated
Profit & Loss (Quarterly) – Consolidated Particulars (₹ Mn) Q1 FY22 Q1 FY21 Q4 FY21 % Change - YoY % Change - QoQ Revenues 45,845 28,817 50,257 59% -9% Raw Material 1 26,245 16,308 27,585 61% -5% Staff Cost 6,536 5,370 6,704 22% -3% Other Costs 7,396 4,684 7,821 58% -5% EBITDA 5,668 2,456 8,147 131%
Slide 33: Profit & Loss (Quarterly) – Standalone
Profit & Loss (Quarterly) – Standalone Particulars (₹ Mn) Q1 FY22 Q1 FY21 Q4 FY21 % Change - YoY % Change - QoQ Revenues 32,200 17,732 36,296 82% -11% Raw Material 1 21,192 10,901 22,273 94% -5% Staff Cost 2,623 1,957 2,724 34% -4% Other Costs 5,049 2,961 5,693 71% -11% EBITDA 3,336 1,913 5,606 74%
Slide 34: 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 Himanshu Sharma Head – IR & Budgeting himanshu.sharma1@apollotyres.com Thank you