Slide 1: Stock exchange filing letter for Q2 FY23 investor presentation
November 7, 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,CL26 CP Listed ISIN: INE482A14BF2, INE482A14B
Slide 2: Q2 FY23 – Investor Presentation | 7th November 2022
Q2 FY23 – Investor Presentation | 7th November 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 FY18-22 Gross Total Income (Rs Cr.) EBITDA PAT CAGR: 7.8% 3,006 2,594 2,520 29,207 2,423 26,269 2,218 23,833 24,682 21,766 1,377 1,031 1,099 1,111 966 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Net Worth ROE ROCE Market Cap 12,000.00 40.0% Group CEAT KEC ZENSAR 10,36
Slide 8: Section 2: Business Overview
Section 2: Business Overview Section 1: RPG Group Overview
Slide 9: Overview
Overview Rs. 9,363 cr Consolidated revenue (FY22) 7.9% Consolidated EBITDA margin (FY22) 7 State of Art manufacturing facilities, adopting Industry 4.0 Deming prize winner Presence in 110+ countries, with strong brand recall 51,000+ sales touchpoints 7,600+ Permanent employees, 300+ R&D team Diversi
Slide 10: Board of Directors
Board of Directors Harsh Vardhan Goenka Anant Goenka Arnab Banerjee Pierre E. Cohade Chairman, Non Executive Director Managing Director & CEO COO and Whole Time Director Non Executive, Non Independent Director Paras K. Chowdhary Atul C. Choksey Haigreve Khaitan Mahesh S. Gupta Non Executive, Non Ind
Slide 11: Leadership Team
Leadership Team Anant Goenka Kumar Subbiah Arnab Banerjee Milind Apte Saurav Mukherjee Managing Director & CEO Executive Director, Finance & CFO Chief Operating Officer Senior Vice President, Human Senior Vice President, Global Sales Resources & Supply Chain Peter Becker Renji Isaac Jayasankar Kurup
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 leader in sales Continuously expanding footprint and enriching touch points with 51,000+ sub dealers customer experience 4,900+ 300 700+ 70 490+ 40 600+ Dealers & Channel Partners CEAT Special Channels Distributors Districts (Exclusives / Sh
Slide 14: Strong Brand
2 Strong Brand Focused campaigns around umbrella theme of Safer & Smarter Mobility “Switch to Secura Drive” campaign wins EV platforms launches in 2W, PC/UV and Bus Secura Drive new video campaign IndIAA2022 award in Automotive & Accessories category 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 • 300+ strong team, 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
Slide 17: Differentiated Products: Platforms & Recent OEM Entries
5 Differentiated Products: Platforms & Recent OEM Entries Performance based platforms Stronger OEM relationships, better traction for replacement cycle Mahindra XUV 700 Volkswagen Virtus Mahindra Thar Ola EV Scooter Yezdi Adventure Okaya EV Scooter Tata ACE EV Olectra EV Bus Ashok Leyland Ecomet Sel
Slide 18: Accelerated Growth In International Business
6 Accelerated Growth In International Business Key Export Markets ~24% Emerging markets YoY Growth in Export Revenue 110+ Countries Present EU and Americas new focus areas. Business driven by local insights and marketing 770+ 30 SKUs in Off-Highway Tyres Addition / progress in H1 FY23 17
Slide 19: Section 3: Financial Performance
Section 3: Financial Performance
Slide 20: Consolidated: Q2 and H1 FY23
Consolidated: Q2 and H1 FY23 All figures in INR Crs Parameter Q2 FY22 Q1 FY23 Q2 FY23 QoQ YoY H1 FY22 H1 FY23 YoY Net Revenue from operations 2,451.8 2,818.4 2,894.5 2.7% 18.1% 4,358.2 5,712.9 31.1% Raw Material 1,547.0 1,925.0 1,953.3 1.5% 26.3% 2,711.3 3,878.3 43.0% Gross margin 904.8 893.4 941.2
Slide 21: Consolidated: Financial Trends
Consolidated: Financial Trends All figures in INR Crs Revenue EBITDA and Margin 9,363 1,019 7,610 741 739 6,985 6,779 663 5,713 375 9.5% 10.9% 13.4% 7.9% 6.6% FY19 FY20 FY21 FY22 H1FY23 FY19 FY20 FY21 FY22 H1FY23 PAT and Margin Debt and Leverage Ratios 432 2,302 2,097 1,929 251 230 1,498 1,418 2.3x
Slide 22: Standalone: Q2 and H1 FY23
Standalone: Q2 and H1 FY23 All figures in INR Crs Parameter Q2 FY22 Q1 FY23 Q2 FY23 QoQ YoY H1 FY22 H1 FY23 YoY Net Revenue from operations 2,432.3 2,803.1 2,886.4 3.0% 18.7% 4,330.1 5,689.5 31.4% Raw Material 1,535.9 1,916.5 1,951.1 1.8% 27.0% 2,699.7 3,867.6 43.3% Gross margin 896.5 886.6 935.3 5.
Slide 23: Section 4: ESG Highlights
Section 4: ESG Highlights ORPG cent ll
Slide 24: Sustainability Goals
Sustainability Goals Manufacturing ✓ Electricity through renewable sources ✓ Green fuel ✓ Reduce water consumption Materials Transportation ✓ Greener sources Reduce Carbon Footprint by 50% ✓ Network optimization ✓ Recycled raw material by 2030 ✓ Alternate modes of transport ✓ Plastic reduction in pa
Slide 25: Select Environment & Society Initiatives
Select Environment & Society Initiatives ~26% plant power ~20% reduction in All plants are Zero Four plants enabled ~22% natural rubber through renewable water consumption Liquid Discharge for biofuel for boiler sourced via alternate sources per MT (YoY H1 FY23) operation transport (lower footprint)
Slide 26: GOO06
GOO06 000 ORPG