Slide 1: Exchange filing letter: Q1 FY22 investors presentation
July 21, 2021 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai 400 001 Mumbai 400 051 Security Code: 500878 Symbol: CEATLTD NCD symbol: CL23, CL25 CP Listed ISIN: INE482A14AE7, INE482A14AF4, INE4
Slide 2: Q1 FY22 – Investor Presentation | 21st July 2021
An Group Company Q1 FY22 – Investor Presentation | 21st July 2021
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: Operational & Financial Overview 18-26 Section 4: Environment, Social and Governance (ESG) Overview 27-29
Slide 5: 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 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 7: RPG Group: Key Financials
RPG Group: Key Financials FY17-21 Gross Total Income (Rs Cr.) FY17-21 CAGR: CAGR: 7.0% EBITDA PAT EBITDA 10.1% 3,006 PAT 8.9% 26,269 2,594 23,833 24,682 2,423 21,766 2,218 20,052 2,045 1,377 1,031 1,099 1,111 980 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Market Cap Net Worth ROE ROCE 12,000.
Slide 8: Section 2: Business Overview
Section Section2:4:Business BusinessOverview Overview
Slide 9: Board of Directors
Board of Directors Harsh Vardhan Goenka Anant Goenka Arnab Banerjee Atul C. Choksey Chairman, Non Executive Director Managing Director COO and Whole Time Director Non Executive Independent Director Pierre E. Cohade Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary Non Executive Non Executive Non E
Slide 10: Leadership Team
Leadership Team Anant Goenka Kumar Subbiah Arnab Banerjee Milind Apte Senior Vice President Managing Director Chief Financial Officer Chief Operating Officer – Human Resources Dilip Modak Saurav Mukherjee Peter Becker Senior Vice President Senior Vice President Senior Vice President – Manufacturing
Slide 11: Overview
Overview India’s leading tyre company with over 60 yrs of presence Distribution Network : 4,100+ dealers, 300+ exclusive CEAT franchisees 7 Manufacturing facilities - Bhandup, Nasik, Halol, Nagpur, Ambernath, Chennai & Sri Lanka 100+ countries where products are sold with strong brand recall #No 1 p
Slide 12: Strategy
Strategy Differentiated Product OEM Relationships Strong Brand World Class R&D Extensive Distribution Global Reach 11
Slide 13: Differentiated Products
1 Differentiated Products Strengthening OEM Relationships Key developments ▪ Focus on OEM, recent entries in new models – Ashok Leyland Ecomet, Okaya EV Scooter, Hero MotoCorp Splendor iSmart (BSVI), Hero MotoCorp HF Deluxe (BSVI), Hero Glamour Refresh, Mahindra Jeeto Z Series, Nissan Magnite, Renau
Slide 14: Strong Brand
2 Strong Brand Launch of New Range of Tyres for CEAT Blog – Tyre Tips and Advice Compact SUVs Warranty Extension in wake of Covid 2nd wave / lockdowns Monsoon Campaigns 13
Slide 15: Extensive Distribution
3 Extensive Distribution CEAT Shoppe Shop in Shop (SIS) CEAT Bike Shoppe CEAT Truck Service Hub 4,100+ 290+ 580+ Dealers & Distributors Districts Channel Partners 300+ 40,000+ 180+ CEAT Shoppes Sub-dealers Shop In Shops 14
Slide 16: Deep OEM Partnerships
4 Deep OEM Partnerships TATA Motors Ashok Leyland VECV Escorts AMW TAFE Mahindra Daimler Eicher SML Isuzu JBM Group Maruti Suzuki TATA Motors Mahindra Renault Hyundai KIA Nissan Force Motors Datsun Skoda Peugeot Volkswagen Morris Garage Honda Royal Enfield Bajaj Yamaha Suzuki Hero Hero Electric Piag
Slide 17: World Class R&D
5 World Class R&D State-of-the-Art R&D Center, Halol R&D Office, Germany ▪ Significant investment on tyre testing infrastructure like Anechoic Chamber, Flat Track Test Machine ▪ Focus on upcoming technologies like Electric Vehicle, Sustainability and Smart Tyres ▪ 100+ patent filings till date 16
Slide 18: 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 19: Section 3: Operational & Financial Overview
Section Section3:5:Operational Operational&&Financial Financial Overview Overview
Slide 20: Q1 FY22 Operational Highlights
Q1 FY22 Operational Highlights New Initiatives Awards and Recognition Tyre Stop, a premium and futuristic Approval for Olectra EV Mint Business Transformation Award for CEAT Fleet retail format for Tier 2&3 cities Bus Solutions Revamped website with new features - Pick up at store, Home Recognized a
Slide 21: Consolidated: Q1 FY22 Financial Highlights
Consolidated: Q1 FY22 Financial Highlights Q1 FY22 v/s Q4 FY21 (Q-o-Q) Q1 FY22 v/s Q1 FY21 (Y-o-Y) ▪ Net revenue from declined by 16.7% to INR 1,906 Crs ▪ Net revenue from operations grew by 70.2% to INR 1,906 from INR 2,290 Crs Crs from INR 1,120 Crs ▪ Gross margin contracted to 38.9% from 42.0% ▪
Slide 22: Consolidated: Financial Trends – Revenue growth and margins
Consolidated: Financial Trends Revenue growth 7,610 6,985 6,779 6,283 5,722 Net Sales (INR Cr) 1,906 FY17 FY18 FY19 FY20 FY21 Q1 FY22 13.4% 16. 0% 14. 0% 12.0% 9.1% 10.2% 10.9% 1,019 Margin trends 12. 0% 9.5% EBITDA (INR 10. 0% Cr) 741 8.0 % 638 663 685 6.0 % EBITDA to Net 4.0 % Sales % 173 2.0 % 0.
Slide 23: Consolidated: Financial Trends – PAT trends
Consolidated: Financial Trends 500 9.0 % 450 8.0 % 400 6.3% PAT trends 5.7% 7.0 % 350 6.0 % 300 3.6% PAT (INR Cr) 3.7% 3.4% 5.0 % 250 200 432 4.0 % 150 361 3.0 % PAT to Net Sales% 100 233 251 230 1.2% 2.0 % 23 1.0 % 50 - 0.0 % FY17 FY18 FY19 FY20 FY21 Q1 FY22 Notes All figures are per IND AS 22
Slide 24: Consolidated: Q1 FY22 Financials
Consolidated: Q1 FY22 Financials Parameter Q1 FY21 Q4 FY21 Q1 FY22 QoQ YoY All figures in INR Cr Net Revenue from operations 1,120.2 2,289.7 1,906.4 -17% 70% Raw Material 669.3 1,328.3 1,164.3 -12% 74% Gross margin 450.9 961.5 742.1 -23% 65% Gross margin % 40.3% 42.0% 38.9% (306) bps (132) bps Emplo
Slide 25: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt (INR Cr) 2,000 924 872 1,498 1,929 1,418 1,785 1,693 1,800 1,600 1,431 LT Debt (INR Cr) Debt breakup 1,274 1,400 1,200 1,397 1,000 ST Debt (INR Cr) 0.66 866 0.54 800 676 0.53 600 0.38 0.42 0.33 400 D/E 200 196 224 236 21 355 0 58 FY 17 FY18 FY19 F
Slide 26: Standalone: Q1 FY22 Financials
Standalone: Q1 FY22 Financials Parameter Q1 FY21 Q4 FY21 Q1 FY22 QoQ YoY All figures in INR Cr Net Revenue from operations 1,116.2 2,279.0 1,897.8 -17% 70% Raw Material 669.6 1,325.9 1,163.8 -12% 74% Gross margin 446.5 953.1 733.9 -23% 64% Gross margin % 40.0% 41.8% 38.7% (315) bps (133) bps Employe
Slide 27: Equity Shareholding & Price trends
Equity Shareholding & Price trends Share Price (INR) Total Volume 2,000 40,00,000 35,00,000 1,500 30,00,000 25,00,000 1,000 20,00,000 15,00,000 500 10,00,000 5,00,000 - - Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Source : Stock Exchange. The above data is up
Slide 28: Section 4: Environment, Social and Governance (ESG) Overview
Section5: Section 4:Operational Environment,& Social, Financial Governance (ESG) Overview Overview
Slide 29: CEAT's Sustainability Goal
CEAT’s Sustainability Goal Manufacturing ✓ Using briquette as fuel ✓ Plant electricity through rooftop / captive solar plants Materials ✓ Greener raw materials; Reduce Carbon Footprint by 50% Transportation recycled crumb rubber ✓ Network optimization by 2030 ✓ ESG compliant vendors Product Use End
Slide 30: CEAT's Initiatives
CEAT’s Initiatives Commitment to Environment Diversity and Inclusion Commitment to Society ✓ Rooftop solar commissioned at Nagpur and Ambernath factories ✓ Donated 8 Fever Clinics (fully ✓ IGBC (Indian Green Building functional cabins with consultation, Council) Green Building Platinum ✓ Promoting d
Slide 31: Thank You
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