Apollo Tyres Limited. · NSE:APOLLOTYRE
Apollo Tyres — Non-Deal Roadshow (February 2017)
31 slides from Apollo Tyres's roadshow presentation, Feb 19, 2017
Slide 1: Non Deal Road Show presentation cover letter to exchanges
APOLLO TYRES LTD 7 Institutional Area Sector 32 Gurgaon 122001, India T: +91124 2383002 F; +91124 2383021 apollotyres.com apollo ATL/SEC/21 February 19, 2016 The Secretary, The Secretary, BSE Ltd. National Stock Exchange of India Ltd, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra-K
Slide 2: Management Presentation February 2017
MANAGEMENT PRESENTATION February 2017
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 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 24 5 KEY STRATEGIES 27 6 APPENDIX 29 apollotyres.com 3
Slide 5: Vision and Values
VISION AND VALUES The following are the values we strive to adhere to VISION 2020 Customer first We believe that our customers and those whom they serve are central to everything we do Unlock a world Business ethics of opportunities. We act with integrity Care for society To be a premier tyre co
Slide 6: Company Snapshot
COMPANY SNAPSHOT One of the leading tyre companies in India with global presence Global tyre company Broad product portfolio Research & development capabilities One of the leading tyre companies in India Vehicle 2 R&D centres: R&D APMEA - Chennai and R&D Europe - Enschede Wide footprint outsid
Slide 7: Regional Overview
REGIONAL OVERVIEW Diversified product portfolio across geographies India Europe and America Other geographies Brands Product portfolio Tyres for commercial vehicles, Tyres for passenger vehicles, bicycles, Tyres for commercial vehicles, passenger vehicles, farm and other industrial and agricul
Slide 8: Key Milestones
KEY MILESTONES Apollo’s growth has been driven by a mix of organic and inorganic initiatives Commenced construction of Hungary greenfield plant Global procurement office, Singapore 2017 Apollo Dubai office 2016 Commenced operations at 2015 truck radial plant in 2014 Oragadam, Tamil Nadu 2013
Slide 9: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 24 5 KEY STRATEGIES 27 6 APPENDIX 29 apollotyres.com 8
Slide 10: Industry Dynamics – Indian Tyre Sector
INDUSTRY DYNAMICS – INDIAN TYRE SECTOR Sizeable industry… …with positive growth outlook Domestic tyre availability in India (m) Tyre sales in India (m) CAGR CAGR 158 (FY 2012 – FY 2016) (CY 2016E – CY 2021E) 152 131 128 134 101 89 95 81 83 14 7.1% 78 71 76 12 13 68 60 64 87 12 78 11 5 5 4.6% 10 5 5
Slide 11: Industry Dynamics – European Tyre Sector
INDUSTRY DYNAMICS – EUROPEAN TYRE SECTOR Sizeable industry… …with sales reviving The industry1 had an estimated turnover of €25bn in CY 2015 Tyre sales in Europe (m) Industry1 revenue split Industry1 channel split3 CAGR (CY 2015) (CY 2015) (CY 2015 – CY 2021E) HCV OEM 493 460 473 485 22% 23% 433 440
Slide 12: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 24 5 KEY STRATEGIES 27 6 APPENDIX 29 apollotyres.com 11
Slide 13: Company Strengths
COMPANY STRENGTHS 1 Leadership in the Indian market with well positioned global brands 2 Extensive global footprint with widespread distribution network 3 Strategically located manufacturing plants 4 Well established relationships with global industry players 5 Strong research and development capabi
Slide 14: Leadership in the Indian Market…
1 LEADERSHIP IN THE INDIAN MARKET… Truck PCR Market share based on volume (FY 2016) 25% 16% 75% 84% Farm (Tractors) TBB TBR 18% 25% 25% 75% 82% 75% Market share for Apollo Market share for other players One of the leading players in India with significant market share across product categories Sourc
Slide 15: …With Well Positioned Global Brands
1 …WITH WELL POSITIONED GLOBAL BRANDS UHP and Commercial Farm Two Pricing Primary Passenger Off highway Brand winter vehicle (Truck vehicle Bicycle tyres wheeler segment geography car tyres vehicle tyres tyres & LCV) tyres tyres tyres Top Europe Medium India, Europe Others Indi
Slide 16: Extensive Global Footprint…
2 EXTENSIVE GLOBAL FOOTPRINT… Europe Head Office: Amsterdam, Netherlands R&D Centre: Europe, Enschede & Frankfurt1 Corporate/ Global Marketing Office: India Head Office: Gurgaon London, UK R&D Centre: APMEA, Chennai & Bengaluru1 Sales & Marketing Office: Sales & Marketing Office: Sal
Slide 17: …With Widespread Distribution Network
2 …WITH WIDESPREAD DISTRIBUTION NETWORK India Europe and America Other geographies Extensive distribution network in India1 Distribution network across Europe and Expanding distribution network1 America1 ~4,900 third party dealers (including ~1,680 120 third party dealers in Thailand exclusive d
Slide 18: Strategically Located Manufacturing Plants
3 STRATEGICALLY LOCATED MANUFACTURING PLANTS 196 Enschede, Netherlands Tyres: Passenger vehicle Enschede, and Agricultural Netherlands Limda, Gujarat 512 Hungary Tyres: Passenger cars, light trucks, Tyres : Passenger car & trucks truck bias, farm vehicles, OHV and other vehicles Located in p
Slide 19: Well Established Relationships with Global Industry Players
4 WELL ESTABLISHED RELATIONSHIPS WITH GLOBAL INDUSTRY PLAYERS Key Customers Mahindra & Audi Daimler AG Hyundai Fiat Skoda Chrysler Mahindra Ford General Motors Volkswagen Ashok Leyland John Deere CNH New Holland Maruti Tata Motors Volvo Eicher Toyota MAN Nissan Porsche Suzuki Raw Material Suppliers
Slide 20: Strong Research and Development Capabilities…
5 STRONG RESEARCH AND DEVELOPMENT CAPABILITIES… Focused on commercial vehicle, passenger vehicle, off-road and two wheeler tyres R&D Centre, Focus on new product development to APMEA, Develops products to fulfill R&D needs of APMEA region grow market share Chennai, India Developed superior c
Slide 21: …With Proven Track Record of Innovation
5 …WITH PROVEN TRACK RECORD OF INNOVATION High performance winter tyre High performance all season Vredestein Ultrac Apollo Alnac 4G All 215/65 R 16 tyre 215/65 R 16 Satin Tyre Season Tyre Track record of developing new products Recent tests demonstrate high quality of products Technological innovat
Slide 22: Seasoned Management and Experienced Board (1/2)
6 SEASONED MANAGEMENT AND EXPERIENCED BOARD (1/2) Board of Directors Onkar S Kanwar – Chairman & Managing Director • Accomplished business professional with over four decades of experience • Served as the President of FICCI and Chairman of the Automotive Tyre Manufacturers’ Association in Sunam Sark
Slide 23: Seasoned Management and Experienced Board (2/2)
6 SEASONED MANAGEMENT AND EXPERIENCED BOARD (2/2) Management Board Sunam Sarkar Robert Steinmetz P K Mohamed Markus Korsten Gaurav Kumar President & Chief Business Advisor Chief Advisor, R&D Chief Manufacturing Chief Financial Officer Officer Officer Onkar S Kanwar Chairman & Managing Director Satis
Slide 24: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 24 5 KEY STRATEGIES 27 6 APPENDIX 29 apollotyres.com 23
Slide 25: Proven Financial Track Record (1/2)
PROVEN FINANCIAL TRACK RECORD (1/2) Net sales¹ … … with improving EBITDA margin … 9.6% 11.4% 14.1% 15.2% 16.8% 17.1% 15.1% 121.5 127.9 133.1 127.3 117.1 87.7 97.9 18.8 19.3 19.7 14.6 15.0 14.8 11.7 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 9MFY 9MFY FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 9MFY 9MFY 20
Slide 26: Proven Financial Track Record (2/2)
PROVEN FINANCIAL TRACK RECORD (2/2) Healthy return profile … 23.9% 25.2% 23.6% 21.8% 19.7% 20.3% 19.5% 18.3% 15.4% 15.6% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 ROCE¹ (%) ROE2(%) (%) … supported by strong balance sheet 1.0 0.7 0.2 0.1 0.1 2.3 1.6 0.5 0.2 0.2 2
Slide 27: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 24 5 KEY STRATEGIES 27 6 APPENDIX 29 apollotyres.com 26
Slide 28: Key Strategies
KEY STRATEGIES Maintain leadership position and grow Premiumization in Europe Improve cost competitiveness market share in India Positioned to take advantage of the growth Aim to substantially increase the share in Establishing cost efficient greenfield project in the Indian tyre market the pr
Slide 29: Table of Contents
TABLE OF CONTENTS Page # 1 INTRODUCTION 4 2 INDUSTRY OVERVIEW 9 3 COMPANY STRENGTHS 12 4 FINANCIAL OVERVIEW 24 5 KEY STRATEGIES 27 6 APPENDIX 29 apollotyres.com 28
Slide 30: List of Abbreviations
LIST OF ABBREVATIONS APMEA Asia Pacific Middle East and Africa Group M&HCV Medium and Heavy Commercial Vehicles ASEAN Association of Southeast Asian Nations OEM Original Equipment Manufacturer ATMA Automotive Tyre Manufacturers’ Association OHV Off Highway Vehicle BRICS Brazil, Russia, India, China
Slide 31: Thanks
Thanks http://www.apollotyres.com 7, Institutional Area, Sector 32, Gurgaon 122001 investors@apollotyres.com Board Line: +91-124-2721-000