Ceat Limited · NSE:CEATLTD
Ceat — Macquarie and CLSA investor conferences, November 2018
28 slides from Ceat's conference presentation, Nov 12, 2018
Slide 1: Investor conference participation disclosure under Reg 30
CEATLTD, CEAT RPG House 463 Dr. Annie Besant Road, WorH, Mombai 400030, lndia +91 22 24930621 ClN: L25!00MH1958PLC011041 wmv.ceat.com November 12, 2018 BSE limited, The National Stock Exchange of India limited, Corporate Service Department, Exchange Plaza, 3'" Floor, 1st Floor, P.J. Towers, Plot No.
Slide 2: Q2 FY19 – Investor Presentation
An Group Company Q2 FY19 – Investor Presentation
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 Non
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 – Ashok Leyland Dost, Mahindra E Alpha, Bajaj New Platina, Honda Cliq, Ashok Leyland Stag and Partner, Tork T6X, Hero Motocorp Achiever 150, Renault Kwid, Himalayan ABS (Royal En
Slide 14: Strong Brand
2 Strong Brand CEAT became the official tyre partner of Torino FC, an elite CEAT’s SecuraDrive platform Serie A football club based in Italy targeting Superior Control at Higher Speed 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
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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: Q2 FY19 Operational Highlights
Q2 FY19 Operational Highlights Manufacturing Excellence OEM Model Entry CEAT’s Nagpur plant awarded the Ace Deluxe Cleveland Cycleworks British Safety Council’s ‘Sword of Honor’ 19
Slide 21: Consolidated: Q2 FY19 Financial Highlights
Consolidated: Q2 FY19 Financial Highlights Q2 FY19 v/s Q1 FY19 (Q-o-Q) Q2 FY19 v/s Q2 FY18 (Y-o-Y) ▪ Net revenue from operations increased by 2.8% at INR ▪ Net revenue from operations increased by 15.2% at INR 1,755 Crs from INR 1,706 Crs 1,755 Crs from INR 1,523 Crs ▪ Gross margins remained flattis
Slide 22: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth Net Sales (Rs Cr) 5,705 5,722 6,231 5,508 5,447 1,706 1,755 FY 14 FY15 FY16 FY17 FY18 Q1 FY19 Q2 FY19 14.9% 11.9% Margin trends 11.9% 12.0% 10.6% 10.2% EBITDA (Rs Cr) 9.4% EBITDA to Net 809 Sales % 658 680 685 638 181 165 FY 14 FY15 FY16 FY17 FY18 Q1 FY1
Slide 23: Consolidated: Financial Trends – PAT trends
Consolidated: Financial Trends 8.0% 500 9.0 % 450 8.0 % 6.3% 400 7.0 % 350 5.6% 6.0 % 4.9% PAT trends 300 PAT (Rs Cr) 4.2% 5.0 % 250 3.7% 3.6% 200 438 4.0 % 361 150 317 3.0 % PAT to Net Sales% 271 100 233 2.0 % 1.0 % 50 71 63 - 0.0 % FY 14 FY15 FY16 FY17 FY18 Q1 FY19 Q2 FY19 Notes FY16 onwards the f
Slide 24: Consolidated: Q2 FY19 Financials
Consolidated: Q2 FY19 Financials Parameter Q2 FY18 Q1 FY19 Q2 FY19 QoQ YoY Net Revenue from operations 1,523 1,706 1,755 3% 15% Raw Material 923 1,035 1,065 3% 15% Gross margin 600 671 690 3% 15% Gross margin % 39.4% 39.3% 39.3% Flattish -8 bps Employee Cost 111 119 142 19% 28% Other Expenses 314 37
Slide 25: Consolidated: Leverage / coverage Profile
Consolidated: Leverage / coverage Profile Total Debt 1174 775 663 924 872 755 943 (INR Cr) 577 LT Debt (Rs Cr) Debt breakup 1.14 866 581 676 503 649 ST Debt (Rs Cr) 630 0.46 0.32 0.38 0.33 0.34 597 0.28 363 D/E 272 196 34 106 58 FY 14 FY 15 FY 16 FY 17 FY18 Q1 FY19 Q2 FY19 900 809 EBITDA (Rs Cr) 800
Slide 26: Standalone: Q2 FY19 Financials
Standalone: Q2 FY19 Financials Parameter Q2 FY18 Q1 FY19 Q2 FY19 QoQ YoY Net Revenue from operations 1,512 1,674 1,718 3% 14% Raw Material 920 1,028 1,058 3% 15% Gross margin 592 646 660 2% 12% Gross margin % 39.2% 38.6% 38.4% -15 bps -72 bps Employee 105 110 132 19% 25% Other Expenses 306 362 372 3
Slide 27: Equity Shareholding & Price trends
Equity Shareholding & Price trends 2,000.0 Close Price (Rs) Total Volume 4,500,000 1,800.0 4,000,000 1,600.0 3,500,000 1,400.0 3,000,000 1,200.0 2,500,000 1,000.0 2,000,000 800.0 1,500,000 600.0 1,000,000 400.0 200.0 500,000 0.0 - Oct/17 Nov/17 Dec/17 Jan/18 Feb/18 Mar/18 Apr/18 May/18 Jun/18 Jul/18
Slide 28: 800006
800006 000
CEAT — Macquarie and CLSA investor conferences, November 2018 on 6ix