Slide 1: Stock exchange cover letter for Q1 FY23 investor presentation
July 20, 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 CP Listed ISIN: INE482A14BD7, INE482A14BE5 Sub:
Slide 2: Q1 FY23 Investor Presentation | 20th July 2022
Q1 FY23– Investor Presentation | 20th July 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 India’s leading tyre company for 60+ years Presence in 100+ countries, with strong brand recall 4,700+ dealers, 650+ CEAT special channels #No 1 player in Sri Lanka in terms of market share 7 Manufacturing facilities - Mumbai, Nasik, Halol, Nagpur, Ambernath, Chennai & Sri Lanka FY22 Revenu
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 leading number of Continuously expanding footprint and enriching touch-points customer experience 4,700+ 150 650+ 30 475+ 20 600+ Dealers & Channel Partners CEAT Special Channels Distributors Districts (Shoppe / SIS) Approximate number as on
Slide 14: Strong Brand
2 Strong Brand Focused campaigns around umbrella theme of Safer & Smarter Mobility Strategic Timeout Partner for Select digital campaigns Most Trusted Tyre Brand Women’s T20 Challenge Father’s Day Campaign WinterDrive Sport launch - Germany As adjudged by TRA Research 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 • 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 • 120+ patent fili
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 Volkswagen Virtus Mahindra Thar Nissan Magnite Ola EV Scooter Yezdi Adventure Okaya EV Scooter Tata ACE EV Olectra EV Bus Ashok Leyland Ecomet Selec
Slide 18: Accelerated Growth In International Business
6 Accelerated Growth In International Business Key Export Markets ~36% Emerging markets YoY Growth in Export Revenue 110+ Countries Present EU and Americas new focus areas. Business driven by local insights and marketing 760+ 18 SKUs in Off-Highway Tyres Addition / progress in Q1FY23 17
Slide 19: Section 3: Financial Performance
Section 3: Financial Performance
Slide 20: Consolidated: Q1 FY23 Financial Highlights
Consolidated: Q1 FY23 Financial Highlights Q1 FY23 v/s Q1 FY22 (YoY) Q1 FY23 v/s Q4 FY22 (QoQ) • Net revenue INR 2,818 Crs increased 47.8% • Net revenue INR 2,818 Crs increased 8.7% • Gross margin 31.7 % contracted by 723 bps • Gross margin 31.7 % contracted by 182 bps • EBITDA margin 6.1% contracte
Slide 21: Consolidated: Q1 FY23
Consolidated: Q1 FY23 All figures in INR Crs Parameter Q1 FY22 Q4 FY22 Q1 FY23 QoQ YoY Net Revenue from operations 1,906.4 2,592.0 2,818.4 9% 48% Raw Material 1,164.3 1,723.1 1,925.0 12% 65% Gross margin 742.1 868.9 893.4 3% 20% Gross margin % 38.9% 33.5% 31.7% (182) bps (723) bps Employee Cost 177.
Slide 22: 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 2,818 171 9.5% 10.9% 13.4% 7.9% 6.1% FY19 FY20 FY21 FY22 Q1 FY23 FY19 FY20 FY21 FY22 Q1 FY23 PAT and Margin Debt and Leverage Ratios 432 2,097 2,139 1,929 251 1,498 1,418 230 2.3
Slide 23: Standalone: Q1 FY23
Standalone: Q1 FY23 All figures in INR Crs Parameter Q1 FY22 Q4 FY22 Q1 FY23 QoQ YoY Net Revenue from operations 1,897.8 2,576.4 2,803.1 9% 48% Raw Material 1,163.8 1,720.6 1,916.5 11% 65% Gross margin 733.9 855.9 886.6 4% 21% Gross margin % 38.7% 33.2% 31.6% (159) bps (704) bps Employee Cost 175.3
Slide 24: Section 4: ESG Highlights
Section 4: ESG Highlights ORPG cent ll
Slide 25: Sustainability Goals
Sustainability Goals Manufacturing ✓ Plant electricity through rooftop / captive solar & wind power ✓ Using biofuel Materials Transportation ✓ Greener raw materials; Reduce Carbon Footprint by 50% recycled crumb rubber ✓ Network optimization by 2030 ✓ Alternate mode of transport ✓ Plastic reduction
Slide 26: Select Environment & Society Initiatives
Select Environment & Society Initiatives ~29% reduction in water consumption 5-10% reduction in Nagpur, Chennai Four plants enabled 26% plant power per MT, and 70% rolling resistance platinum and Halol for biofuel for boiler through renewable reduction in for select SKUs plant gold certified operati
Slide 27: GOO06
GOO06 000 ORPG