Slide 1: Q4 FY18 – Investor Presentation
An Group Company Q4 FY18 – Investor Presentation | 30th April, 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 6,
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 Pierre E. Cohade Atul C. Choksey Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary Non Executive
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 - Projects & Senior Vice President S
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 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 150, Rena
Slide 13: Strong Brand
2 Strong Brand IPL’s official Strategic Time Out partner CEAT’s long lasting tyre range, Milaze, TVC Yet another exceptional cricketer associated with CEAT – Shubman Gill, Player of the Tournament in Under-19 Cricket World Cup 13
Slide 14: Extensive Distribution
3 Extensive Distribution Shoppe Shop in Shop (SIS) Distribution Network ▪ 4,500+ dealers ▪ 500+ CEAT Franchisees (Shoppes + Hubs) ▪ 280+ 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 : Tunwa
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 ▪ Exports to 90+ Countries in 7 Europe Cluster clusters US Cluster ▪ Sri Lanka: Manufacturing facility and Leadership position Middle East in the market and with 50+% Cluster market share Far East 1 Cluster Far East 2 Cluster ▪ Focused pr
Slide 18: Off Highway Tyres
Off Highway Tyres Status Update ▪ Greenfield OHT (Off Highway Tyres) radial plant in Ambernath ▪ 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% 52% 57% 61% 80% 68% ▪ CAGR of 23% ▪ Substantial contribution towards increasing profitability 46% 48% 43% 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: Q4 FY18 Operational Highlights
Q4 FY18 Operational Highlights Product Launch OEM Model Entry Honda Livo Honda Yuga Zoom Rad X1 Premium Motorcycle Radial tyres Honda Shine Bajaj Pulsar 150cc 21
Slide 22: Consolidated: Q4 FY18 Financial Highlights
Consolidated: Q4 FY18 Financial Highlights Q4 FY18 v/s Q3 FY18 (Q-o-Q) Q4 FY18 v/s Q4 FY17 (Y-o-Y) ▪ Net revenue from operations increased by 6.3% at INR ▪ Net revenue from operations increased by 13.7% at INR 1,674 Crs from INR 1,574 Crs 1,674 Crs from INR 1,472 Crs ▪ Gross margins contracted to 39
Slide 23: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth 6,231 5,705 5,722 5,508 5,447 Net Sales (Rs Cr) 2,983 3,248 FY 14 FY15 FY16 FY17 H1 FY18 H2 FY18 FY18 14.9% 11.9% 11.9% 12.0% 12.2% 10.2% 809 Margin trends 680 685 8.0% EBITDA (Rs 638 Cr) 658 398 EBITDA to Net Sales % 240 FY 14 FY15 FY16 FY17 H1 FY18 H2
Slide 24: Consolidated: Financial Trends – PAT and Return Ratios
Consolidated: Financial Trends 6.3% 4.9% 5.6% 4.9% PAT (Rs Cr) 438 3.7% PAT trends 317 361 271 2.5% 233 PAT to Net 159 Sales% 74 FY 14 FY15 FY16 FY17 H1 FY18 H2 FY18 FY18 Return Ratios 30% 25% 23% ROE (%) 16% 18% ROCE post 17% 17% tax (%) 9% 11% 9% FY 14 FY15 FY16 FY17 FY18 Notes Blue area denotes F
Slide 25: Consolidated: Q4 FY18 Financials
Consolidated: Q4 FY18 Financials INR Cr Parameter Q4 FY17 Q3 FY18 Q4 FY18 QoQ YoY FY17 FY18 YoY Net Revenue from operations 1,472 1,574 1,674 6% 14% 5,767 6,231 8% Raw Material 925 916 1,010 10% 9% 3,400 3,810 12% Gross margin 547 658 664 1% 21% 2,367 2,421 2% Gross margin % 37.1% 41.8% 39.7% -214 b
Slide 26: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt 1174 775 663 924 872 (INR Cr) 423 Debt breakup LT Debt (Rs Cr) 1.1 451 354 ST Debt (Rs Cr) 750 852 0.5 588 0.4 421 0.3 421 D/E 0.3 75 72 FY 14 FY 15 FY 16 FY 17 FY18 Leverage ratios 809 EBITDA (Rs Cr) 685 680 638 658 8.5 Debt / EBITDA (x) 5.2 8.4
Slide 27: Standalone: Q4 FY18 Financials
Standalone: Q4 FY18 Financials INR Cr Parameter Q4 FY17 Q3 FY18 Q4 FY18 QoQ YoY FY17 FY18 YoY Net Revenue from operations 1,451 1,550 1,649 6.4% 13.6% 5,702 6,161 8% Raw Material 912 910 1,008 10.7% 10.6% 3,375 3,804 13% Gross margin 539 640 640 0.1% 18.9% 2,326 2,358 1% Gross margin % 37.1% 41.3% 3
Slide 28: Equity Shareholding & Price trends
Equity Shareholding & Price trends Close Price (Rs) Total Volume 2,000.0 3,500,000 1,800.0 1,560 3,000,000 1,600.0 1,400.0 2,500,000 Returns since April ’17 1,200.0 2,000,000 1,000.0 800.0 1,500,000 ▪ CEAT: 17% 600.0 1,000,000 400.0 500,000 ▪ NIFTY: 16% 200.0 0.0 - Apr/17 May/17 Jun/17 Jul/17 Aug/17
Slide 29: 800006
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