Apollo Tyres Limited. · NSE:APOLLOTYRE
Apollo Tyres — Q3 FY2021 Earnings Presentation
30 slides from Apollo Tyres's earnings presentation, Feb 3, 2021
Slide 1: Exchange filing cover letter for Q3 FY2021 investor presentation
ATL/SEC/21 February 3, 2021 The Secretary, The Secretary, BSE Ltd. National Stock Exchange of India Ltd, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra-Kurla Complex, Mumbai – 400001. Bandra (E), Mumbai - 400 051 Sub: Investor Presentation - Q3 FY2021 Dear Sirs, Pursuant to Regulati
Slide 2: Q3 FY 2021 – Investor Presentation
Q3 FY 2021 – Investor Presentation February 2021
Slide 3: Disclaimer
Disclaimer These materials have been prepared by Apollo Tyres Limited together with its subsidiaries (the “Company”), are for informational purposes only and do not constitute a prospectus or an offer document, or form part of an offer, solicitation or invitation of any offer to purchase or subscrib
Slide 4: Table Of Contents
Table Of Contents Page # 1 Company Overview & Highlights 4 2 COVID-19 Update 10 3 Key Near-Term Areas of Focus 14 4 Quarter Update (Q3 FY 2021) 20 5 Key Financials 27 apollotyres.com 3
Slide 5: Apollo Tyres – Top Radial Tyre Player in India
Apollo Tyres – Top Radial Tyre Player in India Large scale & sustained profitability profile Revenue Mix – Consolidated YTD FY 2021 Consolidated Revenue of ~₹161 Bn in FY 2020 Consolidated EBITDA of ~₹19 Bn (12%) in FY 2020 By Product By Channel Strong YTD FY21 performance (EBITDA margin - 16%
Slide 6: Well Set to Leverage Attractive Market Opportunity
Well Set to Leverage Attractive Market Opportunity Key milestones over past ~10 years Past Decade Significant investments made in 2020 building brand, plant 2018 infrastructure, distribution, and R&D capability 2017 Today Enjoy leading market position 2010 Commenced and industry-leading capacity pro
Slide 7: Strong Management Team with Deep Experience
Strong Management Team with Deep Experience Onkar Kanwar Neeraj Kanwar Hizmy Hassen Markus Korsten Gaurav Kumar Daniele Lorenzetti Chairman & Vice Chairman & IT & Digital Advanced Finance & Legal Research & Managing Director Managing Director Manufacturing & Technology European Manufacturing Operati
Slide 8: Experienced Board of Directors with Wide Expertise
Experienced Board of Directors with Wide Expertise Onkar Kanwar Neeraj Kanwar Anjali Bansal Akshay Francesco Crispino Francesco Gori Vishal Mahadevia Former Global Chudasama Chairman & Vice Chairman & Partner and India Regional Managing Co-Founder Former-CEO MD, Head of Managing Director Managing Di
Slide 9: Investment Highlights
Investment Highlights Positive Industry Dynamics in India Attractive market structure consolidating Strong Leadership Team & Board, around strong, domestic brands Strong Portfolio of Leading Brands and Backed by Long-Term PE Investor India still in rapid phase of radialization trend Volume & p
Slide 10: Table Of Contents
Table Of Contents Page # 1 Company Overview & Highlights 4 2 COVID-19 Update 10 3 Key Near-Term Areas of Focus 14 4 Quarter Update (Q3 FY 2021) 20 5 Key Financials 27 apollotyres.com 9
Slide 11: Performance During COVID-19
Performance During COVID-19 India Demand momentum across key segments / key channels on the back of preference for personal mobility, government spend on infra, import restrictions, recovery in sectors like mining Q3 turnover highest ever clocked by the company, driven by YoY growth in both OEM
Slide 12: Performance During COVID-19
Performance During COVID-19 Cash flows Generated free cash flow (consolidated) of ₹ 12bn during YTDFY21, helped by Recovery in top line performance and control over costs Control over capex Working capital optimisation Fund mobilization Raised ₹ 10.8bn from a top private equity Investor
Slide 13: Dealing with COVID-19 – Employee Initiatives
Dealing with COVID-19 – Employee Initiatives Employee Engagement, Recognition and Welfare apollotyres.com 12
Slide 14: Table Of Contents
Table Of Contents Page # 1 Company Overview & Highlights 4 2 COVID-19 Update 10 3 Key Near-Term Areas of Focus 14 4 Quarter Update (Q3 FY 2021) 20 5 Key Financials 27 apollotyres.com 13
Slide 15: Key Near-Term Areas of Focus
Key Near-Term Areas of Focus Strong focus on business fundamentals Consolidating position in India with 3R strategy Range – A formidable portfolio that allows leadership position in India and a wider footprint in export markets Rural – New distribution formats facilitating access to untapped
Slide 16: Key Near-Term Areas of Focus
Key Near-Term Areas of Focus Thrust on Digitalisation Focus areas - Process digitalization, Business Model Innovation and Social media use in media mix Multiple digital product launches across regions Focus on raw materials R&D focus on new recipes to a) boost performance and b) reduce inp
Slide 17: Focus on Brand Building
Focus on Brand Building Global brands with a legacy of performance, quality, trust and reliability Most Valuable Indian Brands (2019) – Brand Finance Rank 53 Rank 69 Rank 93 Apollo MRF JK Onboarded “God of Cricket” as Apollo Tyres’ Brand Ambassador apollotyres.com 16
Slide 18: Focus on Brand Building
Focus on Brand Building Customer engagement activities Bad road buddies Track day in Hungary XT 100 HD Product Launch BOFO e-commerce Portal Launch apollotyres.com 17
Slide 19: Expanding Footprint in Rural India
Expanding Footprint in Rural India Total rural outlets (including sub dealers) 6,000 5,330 5,000 4,000 3,000 2,000 1,350 1,230 1,000 0 FY19 FY20 Dec '20 apollotyres.com 18
Slide 20: Table Of Contents
Table Of Contents Page # 1 Company Overview & Highlights 4 2 COVID-19 Update 10 3 Key Near-Term Areas of Focus 14 4 Quarter Update (Q3 FY 2021) 20 5 Key Financials 27 apollotyres.com 19
Slide 21: Key Marketing Initiatives and Customer Wins
Key Marketing Initiatives and Customer Wins India Continued focus on gaining new customers and deepening ties with existing customers in the OEM segment Secured business from Isuzu Secured business for Tata’s Tipper ME exports; First company to start supplies of 16” radials to Tata and VECV
Slide 22: Podium Positions in Europe
Podium Positions in Europe Date Test Agency Recommendation Position Tyre Model Apr-20 ADAC Recommendable 4th Vredestein Vorti Apr-20 AutoBild Top 50 Exemplary 4th+5th Vorti and Aspire XP Apr-20 AutoBild Allrad Exemplary 3rd Vredestein Ultrac Satin Apr-20 AutoBild Sportscars Good 4th Vredestein Vorti
Slide 23: Operating Highlights – Consolidated
Operating Highlights – Consolidated Revenue (₹ Mn) EBITDA Margin (%) 55,000 25.0% 51,538 20.0% 19.2% 50,000 45,000 43,997 15.0% 12.1% 40,000 10.0% 35,000 5.0% 30,000 0.0% Q3FY20 Q3FY21 Q3FY20 Q3FY21 Topline performance driven by strong demand recovery across segments in India. The topline growth
Slide 24: Operating Highlights – India
Operating Highlights – India Revenue (₹ Mn) EBITDA Margin (%) 36,000 25.0% 34,179 21.4% 34,000 20.0% 32,000 30,000 15.0% 13.0% 28,000 27,536 26,000 10.0% 24,000 5.0% 22,000 20,000 0.0% Q3FY20 Q3FY21 Q3FY20 Q3FY21 Volume Saw strong volume growth in both OEM and Replacement segment during the quar
Slide 25: Operating Highlights – Europe
Operating Highlights – Europe Revenue (€ Mn) EBITDA Margin (%) 145 142 14.0% 13.1% 140 136 12.0% 135 10.0% 9.3% 130 125 8.0% 120 6.0% 115 4.0% 110 105 2.0% 100 0.0% Q3FY20 Q3FY21 Q3FY20 Q3FY21 Saw YoY decline in revenue on account of subdued demand environment, with growth in all season tyre parti
Slide 26: Consolidated Cash Flow & Balance Sheet Highlights
Consolidated Cash Flow & Balance Sheet Highlights Control over capex Free cash flow generation Capex (₹ Bn) Free Cash flow (₹ Bn) 30 28.1 15 11.7 25 10 20 5 15 9.9 10 - FY20 YTDFY21 5 (5) - FY20 YTDFY21 (10) -7.7 Notes: 1. Free Cash Flow: Cash from operating activities less capex, interest and lease
Slide 27: Table Of Contents
Table Of Contents Page # 1 Company Overview & Highlights 4 2 COVID-19 Update 10 3 Key Near-Term Areas of Focus 14 4 Quarter Update (Q3 FY 2021) 20 5 Key Financials 27 apollotyres.com 26
Slide 28: Profit & Loss – Consolidated
Profit & Loss – Consolidated Particulars (₹ Mn) Q3FY21 Q3FY20 Q2FY21 % Change - YoY % Change - QoQ Net Sales 49,653 43,472 42,338 14% 17% Other operating Income 1,885 526 489 259% 286% Revenue from Operations 51,538 43,997 42,827 17% 20% Raw Material 1 27,039 24,769 23,014 9% 17% Staff Cost 6,826 6,
Slide 29: Profit & Loss – Standalone
Profit & Loss – Standalone Particulars (₹ Mn) Q3FY21 Q3FY20 Q2FY21 % Change - YoY % Change - QoQ Net Sales 32,302 27,022 28,614 20% 13% Other operating Income 1,876 514 489 265% 284% Revenue from Operations 34,179 27,536 29,102 24% 17% Raw Material 1 19,419 16,780 16,808 16% 16% Staff Cost 2,263 2,1
Slide 30: THANK YOU
THANK YOU For further details please feel free to get in touch with the IR team Ravi Shingari Group Head - Accounts and Taxation ravi.shingari@apollotyres.com +91 9810300390 Himanshu Sharma Divisional Head - Investor Relations himanshu.sharma1@apollotyres.com +91 9167661692 apollotyres.com 29