Slide 1: Intimation of Earnings Call cover letter
CEAT LTD. CEAT RPG House 463 Dr. Annie Besant Road, Worli, Mumbai 400030, India +91 22 24930621 CIN: L25100MH1958PLC011041 www.ceat.com January 28, 2019 National Stock Exchange of India Limited BSE Limited Plot No. C/1, “G” Block, Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Band
Slide 2: Q3 FY19 – Investor Presentation
An Group Company Q3 FY19 – Investor Presentation | 28th January, 2019
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 5-6 Section 2: Business Overview 8-17 Section 3: Operational & Financial Overview 19-26
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 FY14-18 FY14-18 CAGR: Gross Total Income (Rs Cr.) EBITDA PAT CAGR: 4.9% 21,766 EBITDA 8.0% PAT 11.7% 2,218 19,271 20,052 2,014 2,045 19,183 17,949 1,630 1,668 980 1,031 879 663 739 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 8,000.00 Net Worth ROE ROCE 40.0% Market Ca
Slide 8: Section 2: Business Overview
Section Section2:4:Business BusinessOverview Overview
Slide 9: Board of Directors
Board of Directors Harsh Vardhan Goenka Anant Vardhan Goenka Arnab Banerjee Atul C. Choksey Chairman, Non Executive Director Managing Director Whole -Time Director Non Executive Independent Director Pierre E. Cohade Hari L. Mundra* Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary Non Executive No
Slide 10: 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 11: 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 12: 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 ✓ Passenger Segments 5 World Class R&D 6 Expanding Global Reach 11
Slide 13: Differentiated Products
1 Differentiated Products New Entries and Supplier to OEM’s Key developments ▪ Focus on OEM, recent entries in new models – Bajaj New Platina, Honda Cliq, Ashok Leyland Stag and Partner, Tork T6X, Hero Motocorp Achiever 150, Renault Kwid, Himalayan ABS (Royal Enfield), The Ace Deluxe – Cleveland Cyc
Slide 14: Strong Brand
2 Strong Brand CEAT’s association continues Launched Gripp X3 Launched SecuraDrive Tyres for cars with Rohit Sharma Everlasting Grip Tyres for motorcycles CEAT’s GRIPP X3 #BeLikeNair ad campaign CEAT won 3 Mobexx Awards 13
Slide 15: 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 16: Deep OEM Partnerships
C=AT RPG © Deep OEM Partnerships «lp @® == VE COMMERCIAL VEHICLES = . = == AVOLM IROUP AND EICHER MOTOR: INT VENTURE, — = TATA Ashok Leyland VOLVO GROU! ICI MOTORS JO! UI ESCORTS : a= : CD 4 ecHeR sme “®AMW sarewW: Mahindra DAIMLER 1IsuUZzU BUILT TO WIN : oe if & © DAT" UN } : —-> SUZUKI TATA Mahind
Slide 17: 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 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: Q3 FY19 Operational Highlights
Q3 FY19 Operational Highlights Launch of CEAT’s Online Brand Store OEM Model Entry Hyundai New Santro Hero Destini Royal Enfield Classic ABS 19
Slide 21: Consolidated: Q3 FY19 Financial Highlights
Consolidated: Q3 FY19 Financial Highlights Q3 FY19 v/s Q2 FY19 (Q-o-Q) Q3 FY19 v/s Q3 FY18 (Y-o-Y) ▪ Net revenue from operations declined by 2.3% at INR ▪ Net revenue from operations increased by 8.9% at INR 1,714 Crs from INR 1,755 Crs 1,714 Crs from INR 1,574 Crs ▪ Gross margins grew to 40.9% from
Slide 22: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth 6,231 5,705 5,447 5,722 5,508 5,175 Net Sales (Rs Cr) FY 14 FY15 FY16 FY17 FY18 YTD Dec'18 14.9% 11.9% 11.9% 809 12.0% 10.2% Margin trends 9.6% 680 685 638 EBITDA (Rs Cr) 658 495 EBITDA to Net Sales % FY 14 FY15 FY16 FY17 FY18 YTD Dec'18 Note FY16 onward
Slide 23: Consolidated: Financial Trends – PAT trends
Consolidated: Financial Trends 500 9.0 % 8.0% 450 8.0 % 6.3% 400 7.0 % 350 5.6% 6.0 % 4.9% PAT (Rs Cr) PAT trends 300 5.0 % 250 3.7% 3.6% 200 438 4.0 % 361 317 PAT to Net Sales% 3.0 % 150 271 233 2.0 % 187 100 1.0 % 50 - 0.0 % FY 14 FY15 FY16 FY17 FY18 YTD Dec'18 Notes FY16 onwards the figures are p
Slide 24: Consolidated: Q3 FY19 Financials
Consolidated: Q3 FY19 Financials All figures in INR Cr Parameter Q3 FY18 Q2 FY19 Q3 FY19 QoQ YoY YTD Dec'17 YTD Dec'18 YoY Net Revenue from operations 1,574 1,755 1,714 -2% 9% 4,557 5,175 14% Raw Material 916 1,065 1,013 -5% 11% 2,800 3,113 11% Gross margin 658 690 701 2% 7% 1,757 2,062 17% Gross ma
Slide 25: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt 1174 775 663 924 872 755 943 1282 (INR Cr) 913 LT Debt (Rs Cr) 577 Debt breakup 1.14 866 581 676 ST Debt (Rs Cr) 503 649 630 0.46 0.47 0.32 0.38 0.33 0.34 597 0.28 D/E 363 369 272 196 34 58 106 FY 14 FY 15 FY 16 FY 17 FY18 Q1 FY19 Q2 FY19 Q3 FY19
Slide 26: Standalone: Q3 FY19 Financials
Standalone: Q3 FY19 Financials All figures in INR Cr Parameter Q3 FY18 Q2 FY19 Q3 FY19 QoQ YoY YTD Dec'17 YTD Dec'18 YoY Net Revenue from operations 1,550 1,718 1,673 -3% 8% 4,513 5,066 12% Raw Material 910 1,058 1,002 -5% 10% 2,795 3,087 10% Gross margin 640 660 672 2% 5% 1,717 1,978 15% Gross marg
Slide 27: Equity Shareholding & Price trends
Equity Shareholding & Price trends Source : Capitaline. The above data is updated till 25th January, 2019 Shareholding Pattern as on Dec 31, 2018 Market Information 17% ▪ Market Price (January 25): INR 1,220/share Promoters FPI / FII 10% 51% ▪ Face Value : INR 10/share DII Others 22% ▪ Market Cap (J
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