Slide 1: Investor Presentation May 2015
Investor Presentation May 2015
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balkrishna Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 3: Content
Content Pg 4-10: Company Overview Pg 11-15: Our Performance Pg 16-17: Advantage Bhuj, Gujarat Pg 18-20: Growth Strategies Pg 21-24: Financials 3
Slide 4: Company Overview
BK/T) GROWING TOGETHER Company Overview
Slide 5: Balkrishna Industries… About Us
Balkrishna Industries… Leading ‘Off-Highway Tire” Exporter BKT is India’s Leading player in the Global industry of ‘Off Highway Tire (OHT)’ Market Wide and comprehensive product portfolio Deep understanding of OHT market has led to capabilities to manufacture over 2,200 SKU Capacities Achievable cap
Slide 6: Growing Under the leadership of …
Growing Under the leadership of … Focused Promoters with a Global Vision… …backed by Experienced Team Mr. D M Vaidya Head - Technical Mr. Arvind Poddar Mr. Rajiv Poddar Mr. B K Bansal Chairman & Jt. Managing Managing Director Director Head - Finance Visionary with exemplary strategy and decision M
Slide 7: India Production with Global Sales – An Indian MNC
India Production with Global Sales – An Indian MNC Aurangabad, Maharashtra Bhiwadi, Rajasthan Chopanki, Rajasthan Dombivali, Maharashtra Our India – Our Bhuj, Manufacturing plants Gujarat Manufacturing base Our ‘India’ Manufacturing Base is one of the Biggest Competitive Advantage 7
Slide 8: Applications of our Tires
Applications of our Tires Agriculture Tires Cotton Pick Harvester Tractor Vineyard Harvester Pivot Irrigator Industrial Tires Loader Regular Dumper Trailer OTR Tires Load Haul Dump Underground Mining Container Handler 8
Slide 9: Serving Global OEMs
BK /T Serving Global OEMs GROWING TOGETHER eS 4.acco Your Agriculture Company JOHN DEERE CASE fit AGRICULTURE SAME. ganas or BS | ae Fe sree \S ; r / Kijhoko, HORS | CH FERRARI TAFE R KALMAR SAKAI ALANA
Slide 10: Accelerating Growth - R&D & Branding efforts
Accelerating Growth - R&D & Branding efforts Continuous investment in R&D Strong focus on Branding Investment in R&D is key in complex & BKT is official and evolving global market exclusive tire manufacturer of Our R&D centre in Chopanki hosts Monster Jam and its several laboratories as well a
Slide 11: Our Performance
BK T, GROWING TOGETHER Our Performance 11
Slide 12: Increasing Sales…
Increasing Sales… In MT +8.43% 1,54,156 1,42,810 1,38,339 1,33,039 1,11,543 FY11 FY12 FY13 FY14 FY15 Sustainable sales growth despite challenging Global environment 12
Slide 13: …with Global Presence…
…with Global Presence… Geographical Sales – FY15 53.8% 18.8% 15.1% 12.4% Europe Americas RoW* India * RoW – Rest of the World includes Middle East, Asia (excl India), Africa, Australia & New Zealand 13
Slide 14: …across segments…
…across segments… Segmental Sales – FY15 Others Agriculture 4% Tractors, Trailers, Farm equipments OTR OTR 33% Industrial, Construction & Earth Moving equipments Others 64% Agriculture All Terrain Vehicles, Lawn & Garden vehicles 14
Slide 15: …through Multi-channel Sales
…through Multi-channel Sales Sales Channel – FY15 Distributors Off-Take Caters to replacement market 4% Strong global network through a well diversified OEM distributor network 22% OEM’s Penetrating deeper in increasing share of business with existing OEM’s Forging new relationships to expan
Slide 16: Advantage Bhuj, Gujarat
KT] GROWING TOGETHER Advantage Bhuj, Gujarat 16
Slide 17: BHUJ Plant… Our new Growth Engine
BHUJ Plant… Our new Growth Engine Product Mix Operating Efficiency Optimal mix of Agriculture Tires v/s Industrial and OTR Proximity to Port & 20 MW Tires to focus on the Larger Captive power plant will result OTR Market 01 in cost savings & lead to higher operating efficiency Double Global Market S
Slide 18: Growth Strategies
BK T, GROWING TOGETHER Growth Strategies
Slide 19: Key Competitive Advantages
Key Competitive Advantages Low Operating cost Faster Mind to Market Flexible Plant vis-a-vis Global Peers Product Roll-out Operation & Location Labor intensive business, Strong R&D Team for Maximize utilization of however India product development entire basket of more than manufacturing leads
Slide 20: Roadmap for future growth
Roadmap for future growth Increase Utilization Ramp up sales from Bhuj Plant to reach 100% utilization by 2019 Utilization Expand OEM Base Increase our exposure to OEM thereby creating brand OEM Base value and pull factor in the Replacement Market Penetrate Geographies Focus energies towards Emergin
Slide 21: Financial Highlights
3K/T| GROWING TOGETHER Financial Highlights 21
Slide 22: Financial Highlights – FY15
Financial Highlights – FY15* Particulars in Rs.Crs Q4 FY15 Q4 FY14 YoY % FY15 FY14 YoY% Sales (MT) 39,290 40,825 -4% 1,54,156 1,42,810 8% Net Sales 872 1,031 3,606 3,536 Other Operating Income 5 6 33 41 Crystallised Exchange (Loss)/Gain 148 -41 253 -97 related to Sales Total Sales Revenue 1,025 996
Slide 23: Balance-Sheet FY15
Balance-Sheet FY15* Rs. Crs. Mar-15 Sep-14 Rs. Crs. Mar-15 Sep-14 Shareholder’s Fund 2,292 2,087 Non-current assets 3,275 3,274 Share capital 19 19 Fixed assets 3,049 2,941 Reserves & Surplus 2,273 2,068 Long-term loans and advances 168 117 Non-current liabilities 1,549 1,568 Non-current investments
Slide 24: Debt Management
Debt Management* 1,724 In Rs. Cr 875 Long Term loans are dollar denominated and Net Long 849 Term Debt to Equity is at 0.37x times as on March 2015 USD 58mn repayment is due in Q1-FY16 Company has cash & cash equivalents of Rs.875cr invested in Debt Mutual Funds & Bank Fixed Deposits Total Lon
Slide 25: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Balkrishna Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L99999MH1961PLC012185 CIN - U74140MH2010PTC204285 Mr. B K Bansal, Director - Finance Mr. Shogun Jain / Ms. Sanjita Ghosh bkbansal@bkt-tires.com jshogu