Slide 1: Intimation of Results Call letter to exchanges
C=AT August 1, 2019 BSE Limited Phiroze Jeejeebhoy Towers, CEAT LTD. RPG House 463 Dr. Annie Besant Road, Worli, Mumbai 400030, India +91 22 24930621 CIN: L25100MH1958PLC011041 www.ceat.com National Stock Exchange of India Limited Exchange Plaza, Dalal Street, Bandra Kurla Complex, Bandra (East), Mu
Slide 2: Q1 FY20 – Investor Presentation
An Group Company Q1 FY20 – Investor Presentation | 1st August, 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 FY15-19 FY15-19 CAGR: Gross Total Income (Rs Cr.) EBITDA PAT CAGR: 5.6% EBITDA 9.8% PAT 10.4% 2,423 23,833 2,218 21,766 2,014 2,045 19,183 19,271 20,052 1,668 1,031 1,099 879 980 739 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Net Worth ROE ROCE Market Cap 9,000.00 40
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 Tom Thomas Dilip Modak Vijay Gambhire Peter Becker Executive Director – Projects & Senior Vice President Managing Director –
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 Differentiated Product OEM Relationships Strong Brand World Class R&D Extensive Distribution 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 – Himalayan ABS (Royal Enfield), The Ace Deluxe – Cleveland Cycleworks, Hyundai New Santro, Hero Destini, Royal Enfield Classic ABS, Royal Enfield Bullet Trails, Okinawa i-Praise
Slide 14: Strong Brand
2 Strong Brand Continued Associate Sponsor of ICC Another innings of CEAT Cricket Rating Awards association with IPL World Cup on Hotstar CEAT strengthened its association with Hyundai with the launch of new CSUV ‘Venue Maruti Suzuki’s New Alto Rolls out on CEAT Fuelsmarrt 13
Slide 15: Extensive Distribution
3 Extensive Distribution CEAT Shoppe Shop in Shop (SIS) Multi Brand Outlet CEAT Bike Shoppe CEAT District Coverage 4500+ 280+ 612 Dealers 2W Distributors 464 212 500+ 400+ CEAT Franchisees MBO / SIS FY12 FY15 FY19 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 Hyundai Renault Force Motors Datsun Skoda Volkswagen Peugeot Honda Royal Enfield Bajaj Yamaha Suzuki Hero Hero Electric Piaggio LML Tork Tunwal Okina
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 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 FY20 Operational Highlights
Q1 FY20 Operational Highlights Recognition for CEAT OEM Model Entry Maruti Suzuki’s New Alto CEAT awarded as the Best Investor Relations team for the second year in a row by IR Magazine and Forum Hyundai Venue Hero XPulse 200 19
Slide 21: Consolidated: Q1 FY20 Financial Highlights
Consolidated: Q1 FY20 Financial Highlights Q1 FY20 v/s Q4 FY19 (Q-o-Q) Q1 FY20 v/s Q1 FY19 (Y-o-Y) ▪ Net revenue from operations declined by 0.5% at INR ▪ Net revenue from operations increased by 1.7% at INR 1,752 Crs from INR 1,760 Crs 1,752 Crs from INR 1,722 Crs ▪ Gross margin marginally expanded
Slide 22: Consolidated: Financial Trends – Revenue growth and EBITDA
Consolidated: Financial Trends Revenue growth 6,985 6,283 5,508 5,705 5,447 5,722 Net Sales (Rs Cr) 1,752 FY 14 FY15 FY16 FY17 FY18 FY19 Q1 FY20 14.9% 11.9% 11.9% 809 12.0% 9.5% 10.2% EBITDA (Rs Cr) Margin trends 9.8% 680 685 663 658 638 EBITDA to Net Sales % 172 FY 14 FY15 FY16 FY17 FY18 FY19 Q1 FY
Slide 23: Consolidated: Financial Trends – PAT trends
Consolidated: Financial Trends 500 8.0% 9.0 % 450 8.0 % 400 6.3% 5.6% 7.0 % 4.9% PAT (Rs Cr) 350 4.7% 6.0 % 3.6% 300 PAT trends 3.7% 5.0 % 250 438 4.0 % PAT to Net 361 200 150 271 317 3.0 % 100 233 251 2.0 % Sales% 50 82 1.0 % - 0.0 % FY 14 FY15 FY16 FY17 FY18 FY19 Q1 FY20 Notes FY16 onwards the fig
Slide 24: Consolidated: Q1 FY20 Financials
Consolidated: Q1 FY20 Financials All figures in INR Cr Parameter Q1 FY19 Q4 FY19 Q1 FY20 QoQ YoY Net Revenue from operations 1,722 1,760 1,752 0% 2% Raw Material 1,035 1,069 1,060 -1% 2% Gross margin 687 691 693 0% 1% Gross margin % 39.9% 39.3% 39.5% 26 bps 37 bps Employee Cost 119 128 134 5% 13% Ot
Slide 25: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt 1174 775 663 924 872 1498 1640 (INR Cr) 170 0 150 0 1277 LT Debt (Rs Cr) 577 1274 Debt breakup 130 0 1.14 110 0 900 ST Debt (Rs Cr) 700 866 676 503 0.54 0.57 500 0.46 630 0.38 0.33 300 597 0.32 D/E 272 34 224 363 100 58 196 -100 FY 14 FY 15 FY 16
Slide 26: Standalone: Q1 FY20 Financials
Standalone: Q1 FY20 Financials All figures in INR Cr Parameter Q1 FY19 Q4 FY19 Q1 FY20 QoQ YoY Net Revenue from operations 1,689 1,717 1,704 -1% 1% Raw Material 1,028 1,053 1,047 -1% 2% Gross margin 661 665 656 -1% -1% Gross margin % 39.1% 38.7% 38.5% -18 bps -62 bps Employee Cost 110 119 124 5% 12%
Slide 27: Equity Shareholding & Price trends
Equity Shareholding & Price trends Share Price Total Volume 1,600 5,000,000 1,400 4,000,000 1,200 1,000 3,000,000 800 600 2,000,000 400 1,000,000 200 - - Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Source : Capitaline. The above data is updated till 28t
Slide 28: 800006
800006 000