Slide 1: Q4 FY17 – Investor Presentation
An Group Company Q4 FY17 – Investor Presentation April 28th, 2017
Slide 2: 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 3: Table of Contents
Table of Contents Section 1: RPG Group Overview 5-6 Section 2: Industry Overview 8-9 Section 3: Business Overview 11-23 Section 4: Operational & Financial Overview 25-32
Slide 4: Section 1: RPG Group Overview
Section 1: RPG Group Overview
Slide 5: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics RPG Enterprises was founded in 1979 by Shri Rama Prasad Goenka, popularly known as RP UNLEASHTALENT Goenka, a pioneering fifth generation business leader from the Goenka family. The Goenkas have a history of business dating back to 1820 AD in banking,
Slide 6: RPG Group: Key Financials
RPG Group: Key Financials Net Revenue (Rs Cr) EBITDA (Rs Cr) PAT (Rs Cr) FY11-16 18,542 18,761 CAGR: 12% 17,614 FY11-16 CAGR: 2,090 15,788 EBITDA 17% PAT 19% 13,962 1,690 1,731 1,250 1,117 1,030 714 795 429 404 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Net Worth (Rs Cr) ROCE ROE 20,000 5,814
Slide 7: Section 2: Industry Overview
Section 2: Industry Overview
Slide 8: Indian Tyre Industry
Indian Tyre Industry Total Tyre Production in India (Numbers in Lakhs) 1,462 1,520 1,254 1,228 1,289 1,273 FY 12 FY 13 FY 14 FY 15 FY 16 YTD DEC'16 April-December FY16 April-December FY17 0.8% 0.6% 10.9% 9.5% 38.6% 37.2% 25.3% 26.3% 6.4% 6.1% 14.2% 3.7% 16.3% 4.0% Source: Industry Sources 8
Slide 9: Indian Tyre Industry
Indian Tyre Industry Tyre Production in India (Numbers in Lakhs) MHCV (T&B) 165 165 171 168 161 121 FY 12 FY 13 FY 14 FY 15 FY 16 YTD DEC' 16 Passenger Car / Jeep 2 / 3 wheeler 387 357 799 321 317 335 760 287 671 634 681 591 FY 12 FY 13 FY 14 FY 15 FY 16 YTD DEC' 16 FY 12 FY 13 FY 14 FY 15 FY 16 YTD
Slide 10: Section 3: Business Overview
Section Section3:4:Business BusinessOverview Overview
Slide 11: Board of Directors
Board of Directors Hari L. Mundra Harsh Vardhan Goenka Anant Vardhan Goenka Arnab Banerjee Non Executive Chairman, Non Executive Director Managing Director Whole -Time Director Non Independent Director Atul C. Choksey Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary Non Executive Non Executive No
Slide 12: 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 Executive Director Senior Vice President Senior Vice President - Tec
Slide 13: Overview
Overview India’s leading tyre company with over 50 yrs of presence Distribution Network : 4,500+ dealers, 450+ 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 14: 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 Emerging markets 5 World Class R&D 6 Expanding Global Reach 14
Slide 15: Differentiated Products
1 Differentiated Products New Entries and Primary Supplier to OEM’s Key developments Focus on OEM, recent entries as first source suppliers for OEM launches- Ashok Leyland Stag and Partner, Tork T6X, Hero Motocorp Achiever 150, Renault Kwid, M&M TUV 300, RE Himalayan, Honda Navi, Bajaj Vikrant V15
Slide 16: Strong Brand
2 Strong Brand In the new TVCs, “In the Game of Roads, CEAT Helps”, the concept of “Be Idiot Safe” campaign was evolved to the next level. It reflects CEAT’s purpose of making mobility safer & smarter “In the game of Roads–CEAT Helps” TVC video Drive Safe Dad Campaign- with the Bobble Head Dads rece
Slide 17: Extensive Distribution
3 Extensive Distribution Shoppe Shop in Shop (SIS) Distribution Network 4,500+ dealers 450+ CEAT Franchisees (Shoppes + Hubs) 250+ two-wheeler distributors Developed Multi Brand Outlet / Shop in Shop model over last 2 years. Over 350+ outlets so far Launched CEAT Bike Shoppes in Bangalore
Slide 18: Deep OEM Partnerships
C=AT RPG @ Deep OEM Partnerships . iid @® = VE COMMERCIAL VEHICLES = . A VOLVO GROUP AND EIGHER MOTORS JOINT VENTURE TATA Ashok Leyland : “ees ESCORTS : GD ® <= @AMW saees: Mahindra DAIMLER EICHER BUILT TO WIN : ms eA @D &® & --5 Sa MARUTI ry Suzuki wmorrs Mahindra Wy UNDAI MOTORS ae RENAULT Ey SS B
Slide 19: World Class R&D
5 World Class R&D New Products Developed 102 95 70 64 66 FY12 FY13 FY14 FY15 FY16 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 Increased allocation towards
Slide 20: Expanding Global Reach
6 Expanding Global Reach Key Export Clusters Emerging markets Europe Cluster Sri Lanka: Leadership position with US Cluster 50+% market share Middle East Cluster Focused product ASEAN and distribution West Africa East Africa Cluster strategy for LATAM Cluster Cluster select clusters Cluster 20
Slide 21: Passenger Segment Trends
Passenger Segment Trends 2/3 wheelers (Rs Cr) PC / UV (Rs Cr) 1,648 743 1,483 619 1,246 561 Revenue 476 899 376 639 284 525 FY 12 FY13 FY 14 FY 15 FY 16 FY 17 FY 12 FY13 FY 14 FY 15 FY 16 FY 17 Nagpur plant commissioned 67 MT/day capacity as of March 2017; total capacity of 120 MT/day Expanding
Slide 22: Off Highway Tyres
Off Highway Tyres Status Update Greenfield OHT (Off Highway Tyres) radial plant in Ambernath Investing Rs 330 Crs for a Phase 1 capacity of 40 MT/day which will be further ramped up to 100 MT/day Production shall commence in Q2 FY18 22
Slide 23: Strategic Focus Areas – Continued Momentum
Strategic Focus Areas – Continued Momentum Sales (Rs Cr) 2,850 5,508 5,705 5,447 5,722 Strategic Focus Areas (Passenger Segment, Specialty Exports & Emerging Markets) Others 57% 54% 68% 61% CAGR of 25% 80% 4.7x growth from Rs.570 (FY10) to Rs. 2,700 crs (FY17) 43% 46% Substantial contribution
Slide 24: Section 4: Operational & Financial Overview
Section Section4:5:Operational Operational&&Financial Financial Overview Overview
Slide 25: Q4 FY17 Operational Highlights
Q4 FY17 Operational Highlights Accolades OEM entries CEAT ranked highest in India for OE Tyre customer satisfaction as per J.D. Power 2017 India Original Equipment Tyre Customer Satisfaction Index (TCSI) Products Launch of MILAZE tyres for the high selling Taxi SUV segment across India Honda Activa
Slide 26: Consolidated: Q4 FY17 Financial Highlights
Consolidated: Q4 FY17 Financial Highlights Q4 FY17 v/s Q3 FY17 (Q-o-Q) Q4 FY17 v/s Q4 FY16 (Y-o-Y) Sales up by 5.2% at Rs 1,458 Crs from Rs 1,386 Crs Sales up by 5.2% at Rs 1,458 Crs from Rs 1,386 Crs Gross margins have contracted to 36.5% from 40.8% Gross margins have contracted to 36.5% fr
Slide 27: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth 5,508 5,705 5,447 5,722 5,009 4,614 Net Sales (Rs Cr) FY 12 FY 13 FY 14 FY15 FY16 FY17 14.9% 12.0% 11.9% 11.9% Margin trends 809 8.7% 680 685 EBITDA (Rs Cr) 658 5.9% 438 EBITDA to Net 274 Sales % FY 12 FY 13 FY 14 FY15 FY16 FY17 Notes FY16 and FY17 figur
Slide 28: Consolidated: Financial Trends – PAT and Return Ratios
Consolidated: Financial Trends 8.0% PAT (Rs Cr) 361 PAT trends 5.6% 438 4.9% 6.3% 317 PAT to Net 2.4% 271 Sales% 0.4% 120 18 FY 12 FY 13 FY 14 FY15 FY16 FY17 30% Return Ratios 25% ROE (%) 23% 16% 16% ROCE post tax 18% 17% 17% (%) 8% 13% 11% 3% FY 12 FY 13 FY 14 FY15 FY16 FY17 Notes For Income Statem
Slide 29: Consolidated: Q4 FY17 Financials
Consolidated: Q4 FY17 Financials Rs Cr Parameter Q4FY16 Q3FY17 Q4FY17 QoQ YoY FY16 FY17 YoY Net Sales 1,386 1,386 1,458 5.2% 5.2% 5,447 5,722 5.1% Raw Material 788 820 925 12.9% 17.4% 3,091 3,400 10.0% Gross margin 598 566 533 -5.9% -10.9% 2,356 2,323 -1.4% Gross margin % 43.1% 40.8% 36.5% -430 bps
Slide 30: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt 663 681 770 834 924 (Rs Cr) 0.4 0.4 ST Debt (Rs Cr) 0.3 72 Debt breakup 0.3 0.3 58 99 852 50 776 75 LT Debt (Rs Cr) 631 672 588 Total Debt / Equity Q4 FY 16 Q1 FY 17 Q2 FY 17 Q3 FY 17 Q4 FY 17 193 196 194 EBITDA (Rs Leverage ratios 11.9 158 Cr) 13
Slide 31: Standalone: Q4 FY17 Financials
Standalone: Q4 FY17 Financials Rs Cr Parameter Q4FY16 Q3FY17 Q4FY17 QoQ YoY FY16 FY17 YoY Net Sales 1,372 1,371 1,437 4.8% 4.7% 5,419 5,658 4.4% Raw Material 785 813 912 12.1% 16.2% 3,090 3,375 9.2% Gross margin 588 558 525 -5.9% -10.7% 2,329 2,283 -2.0% Gross margin % 42.8% 40.7% 36.5% -410 bps -63
Slide 32: Equity Shareholding & Price trends
Equity Shareholding & Price trends 1,600.0 Close Price (Rs) Total Volume 1,555 45,00,000 1,400.0 40,00,000 1,200.0 1,068 35,00,000 Returns since April’ 16 30,00,000 1,000.0 25,00,000 800.0 CEAT: 46% 20,00,000 600.0 15,00,000 NIFTY: 21% 400.0 10,00,000 200.0 5,00,000 0.0 - Apr-16 Jun-16 Aug-16 Oc
Slide 33: 800006
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