Ceat Limited · NSE:CEATLTD
Ceat — Q3 FY18 Earnings Presentation
29 slides from Ceat's earnings presentation, Feb 1, 2018
Slide 1: Q3 FY18 – Investor Presentation
An Group Company Q3 FY18 – Investor Presentation | 1st February, 2018
Slide 2: 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 3: Table of Contents
Table of Contents Section 1: RPG Group Overview 5-6 Section 2: Business Overview 8-19 Section 3: Operational & Financial Overview 21-28
Slide 4: Section 1: RPG Group Overview
Section 1: RPG Group Overview
Slide 5: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics RPG Enterprises was founded in 1979. The group currently operates in various UNLEASHTALENT industries - Infrastructure, Technology, Life Sciences, Plantations and Tyre Manufacturing. The group has a history of business dating back to 1820 AD in TOUCHLI
Slide 6: RPG Group: Key Financials
RPG Group: Key Financials FY13-17 Net Revenue (Rs Cr) 19,297 EBITDA (Rs Cr) PAT (Rs Cr) 18,313 18,494 CAGR: 5.5% 17,364 FY13-17 CAGR: 2,016 2,053 15,567 EBITDA 14.1% PAT 26.7% 1,627 1,667 1,211 980 879 664 743 380 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Net Worth (Rs Cr) ROCE ROE 30,000 Ma
Slide 7: Section 2: Business Overview
Section Section2:4:Business BusinessOverview Overview
Slide 8: Board of Directors
Board of Directors Hari L. Mundra Harsh Vardhan Goenka Anant Vardhan Goenka Arnab Banerjee Non Executive Chairman, Non Executive Director Managing Director Whole -Time Director Non Independent Director Atul C. Choksey Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary Non Executive Non Executive No
Slide 9: Leadership Team
Leadership Team Anant Goenka Kumar Subbiah Arnab Banerjee Milind Apte Executive Director Senior Vice President Managing Director Chief Financial Officer - Operations - Human Resources Tom Thomas Dilip Modak Chandrashekhar Ajgaonkar Peter Becker Executive Director Senior Vice President Senior Vice Pr
Slide 10: Overview
Overview India’s leading tyre company with over 50 yrs of presence Distribution Network : 4,500+ dealers, 500+ exclusive CEAT franchisees 6 Manufacturing facilities - Bhandup, Nasik, Halol, Nagpur, Ambernath & Sri Lanka 100+ countries where products are sold with strong brand recall #No 1 player in
Slide 11: Strategy
Strategy 1 Differentiated Products Two wheelers Domestic 2 Strong Brand Passenger cars & Market Utility vehicles 3 Extensive Distribution Profitable growth 4 Deep OEM Partnerships International Off Highway Tyres Market Emerging markets 5 World Class R&D 6 Expanding Global Reach 11
Slide 12: Differentiated Products
1 Differentiated Products New Entries and Primary Supplier to OEM’s Key developments Focus on OEM, recent entries in new models – Honda Grazia, Hyundai New Verna, Ashok Leyland Dost, Mahindra E Alpha, Bajaj New Platina, Honda Cliq, Ashok Leyland Stag and Partner, Tork T6X, Hero Motocorp Achiever 1
Slide 13: Strong Brand
2 Strong Brand Launch of “CEAT Safety Scooter CEAT’s Association with Mahindra Adventures Handle Grip” with concealed Pepper Spray. Click here “Authentic Bhutan” expedition “Authentic North-East” expedition Association with yet another spectacular cricketer - Harmanpreet Kaur 13
Slide 14: Extensive Distribution
3 Extensive Distribution Shoppe Shop in Shop (SIS) Distribution Network 4,500+ dealers 500+ CEAT Franchisees (Shoppes + Hubs) 270+ two-wheeler distributors Developed Multi Brand Outlet / Shop in Shop model over last 2 years. Over 400 outlets so far Launched CEAT Bike Shoppes in Bangalore a
Slide 15: Deep OEM Partnerships
C=AT ORPG @ Deep OEM Partnerships «lp @® == VE COMMERCIAL VEHICLES = . = TATA Ashok Leyland VOLVO GROUP AND EIGHER MOTORS JOINT VENTURE ESCORTS a> : C/D ® ecHeR sme “®AMW sarewW: Mahindra DAIMLER 1IsuUZzU BUILT TO WIN : ws DD & o. a MARUTI ry Suzuki wmorrs Mahindra Wy UNDAI MOTORS ae RENAULT Ey SS B
Slide 16: World Class R&D
5 World Class R&D State of the art R&D facility at Halol plant R&D focussed on development of breakthrough products, alternate materials, green tyres & smart tyres Partnerships with global institutes and technology partners Breakthrough Products “Puncture Safe” tyres for Two Wheelers – India
Slide 17: Expanding Global Reach
6 Expanding Global Reach Key Export Clusters Emerging markets Europe Cluster Sri Lanka: Leadership position with US Cluster 50+% market share Middle East Cluster Focused product ASEAN and distribution West Africa East Africa Cluster strategy for LATAM Cluster Cluster select clusters Cluster 17
Slide 18: Off Highway Tyres
Off Highway Tyres Status Update Greenfield OHT (Off Highway Tyres) radial plant in Ambernath Invested INR 330 Crs for a Phase 1 capacity of 40 MT/day which will be further ramped up to 100 MT/day Plant is now live and commercial sales have begun across all key markets 18
Slide 19: Strategic Focus Areas – Continued Momentum
Strategic Focus Areas – Continued Momentum Strategic Focus Areas (Passenger Segment, Specialty Others Exports & Emerging Markets) 54% 50% 57% 61% 80% 68% CAGR of 25% Substantial contribution towards increasing 50% profitability 43% 46% Strategic 39% 32% Focus Areas 20% Market share growing FY
Slide 20: Section 3: Operational & Financial Overview
Section Section3:5:Operational Operational&&Financial Financial Overview Overview
Slide 21: Q3 FY18 Operational Highlights
Q3 FY18 Operational Highlights Product Launch OEM Entry Launch of premium motorcycle radial tyres - ‘Zoom Rad X1’ at the ‘India Bike Week ’ Honda Grazia 21
Slide 22: Consolidated: Q3 FY18 Financial Highlights
Consolidated: Q3 FY18 Financial Highlights Q3 FY18 v/s Q2 FY18 (Q-o-Q) Q3 FY18 v/s Q3 FY17 (Y-o-Y) Net revenue from operations increased by 3.4% at INR Net revenue from operations increased by 12.6% at INR 1,574 Crs from INR 1,532 Crs 1,574 Crs from INR 1,398 Crs Gross margins have expanded to
Slide 23: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth 5,508 5,705 5,722 5,447 5,009 4,557 Net Sales (Rs Cr) FY 13 FY 14 FY15 FY16 FY17 YTD Dec'17 14.9% 12.0% Margin trends 11.9% 11.9% 809 9.5% 680 685 EBITDA (Rs Cr) 8.7% 658 434 EBITDA to Net 438 Sales % FY 13 FY 14 FY15 FY16 FY17 YTD Dec'17 Note FY16 onwar
Slide 24: Consolidated: Financial Trends – PAT and Return Ratios
Consolidated: Financial Trends 8.0% 6.3% 438 PAT (Rs Cr) 5.6% PAT trends 4.9% 317 361 2.4% 271 PAT to Net 3.4% Sales% 120 156 FY 13 FY 14 FY15 FY16 FY17 YTD Dec'17 30% 25% Return Ratios 23% ROE (%) 16% 16% ROCE post tax 18% 17% 13% 17% (%) 11% FY 13 FY 14 FY15 FY16 FY17 Notes FY16 onwards the figure
Slide 25: Consolidated: Q3 FY18 Financials
Consolidated: Q3 FY18 Financials INR Cr Parameter Q3FY17 Q2FY18 Q3FY18 QoQ YoY YTD Dec'17 YTD Dec'18 YoY Net Revenue from operations 1,398 1,523 1,574 3% 13% 4,295 4,557 6% Raw Material 820 923 916 -1% 12% 2,475 2,800 13% Gross margin 578 600 658 10% 14% 1,820 1,757 -3% Gross margin % 41.3% 39.4% 41
Slide 26: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt 1038 1173 775 663 924 796 (INR Cr) 750 Total Debt / Equity Debt breakup 1.3 72 1.1 852 278 ST Debt (Rs Cr) 614 421 75 588 0.5 518 424 0.4 423 0.3 LT Debt / 354 Equity 0.3 FY 13 FY 14 FY 15 FY 16 FY 17 Q3 FY 18 Leverage ratios 809 EBITDA (Rs 680 8.
Slide 27: Standalone: Q3 FY18 Financials
Standalone: Q3 FY18 Financials INR Cr Parameter Q3FY17 Q2FY18 Q3FY18 QoQ YoY YTD Dec'17 YTD Dec'18 YoY Net Revenue from operations 1,382 1,512 1,550 3% 12% 4,251 4,513 6% Raw Material 813 920 910 -1% 12% 2,463 2,795 13% Gross margin 569 592 640 8% 12% 1,788 1,717 -4% Gross margin % 41.2% 39.2% 41.3%
Slide 28: Equity Shareholding & Price Trends
Equity Shareholding & Price trends Returns since January ’17 CEAT: 53% NIFTY: 36% Source : Capitaline. The above data is updated till 29h Jan 2018 Shareholding Pattern as on Market Information December 31, 2017 10% Market Price (Jan 29): INR 1,809/share Promoters 10% FPI / FII Face Value : I
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