Slide 1: Q2 FY20 – Investor Presentation
An Group Company Q2 FY20 – Investor Presentation | 22nd October, 2019
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: Business Overview 8-17 Section 3: Operational & Financial Overview 19-26
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. 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 6: 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 7: Section 2: Business Overview
Section Section2:4:Business BusinessOverview Overview
Slide 8: 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 9: 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 10: 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 11: Strategy
Strategy Differentiated Product OEM Relationships Strong Brand World Class R&D Extensive Distribution Global Reach 11
Slide 12: Differentiated Products
1 Differentiated Products New Entries and Supplier to OEM’s Key developments ▪ Focus on OEM, recent entries in new models – Royal Enfield Classic ABS, Royal Enfield Bullet Trails, Okinawa i-Praise, eSpa Scooter, Maruti Suzuki New Alto, Hyundai Venue, Hero XPulse 200, New Pulsar 125, New Suzuki Acces
Slide 13: Strong Brand
2 Strong Brand CEAT welcomed Shreyas Iyer Opening pair of India’s Test to the family CEAT’s innovative Exchange Offer on any old bike tyres Cricket team donning CEAT bats CEAT is associate sponsor of KBC CEAT is associate sponsor of Big Boss Tamil 13
Slide 14: 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 15: 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 Renault Hyundai KIA Force Motors Datsun Skoda Peugeot Volkswagen Morris Garage Honda Royal Enfield Bajaj Yamaha Suzuki Hero Hero Electric Piaggio LML
Slide 16: 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 17: 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 18: Section 3: Operational & Financial Overview
Section Section3:5:Operational Operational&&Financial Financial Overview Overview
Slide 19: Q2 FY20 Operational Highlights
Q2 FY20 Operational Highlights Product Launch and Customer Day OEM Model Entry CEAT launched X3 Truck tyres range CEAT celebrated its pan India across India Customer Day New Pulsar 125 New Suzuki Access 125 Renault Triber Hyundai Grand i10 Nios 19
Slide 20: Consolidated: Q2 FY20 Financial Highlights
Consolidated: Q2 FY20 Financial Highlights Q2 FY20 v/s Q1 FY20 (Q-o-Q) Q2 FY20 v/s Q2 FY19 (Y-o-Y) ▪ Net revenue from operations declined by 3.5% at INR ▪ Net revenue from operations declined by 4.6% at INR 1,692 Crs from INR 1,752 Crs 1,692 Crs from INR 1,772 Crs ▪ Gross margin expanded to 41.1% fr
Slide 21: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth 6,985 6,283 5,508 5,705 5,447 5,722 Net Sales (Rs Cr) 3,444 FY 14 FY15 FY16 FY17 FY18 FY19 H1 FY20 14.9% 11.9% 11.9% 12.0% 9.5% 10.2% 10.1% Margin trends EBITDA (Rs Cr) 809 EBITDA to Net Sales % 658 680 685 638 663 348 FY 14 FY15 FY16 FY17 FY18 FY19 H1 F
Slide 22: 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% 350 6.0 % 300 3.6% PAT (Rs Cr) PAT trends 3.7% 3.7% 5.0 % 250 438 4.0 % 361 200 150 271 317 3.0 % PAT to Net Sales% 100 233 251 2.0 % 50 126 1.0 % - 0.0 % FY 14 FY15 FY16 FY17 FY18 FY19 H1 FY20 Notes FY16 onwards the fi
Slide 23: Consolidated: Q2 FY20 Financials
Consolidated: Q2 FY20 Financials All figures in INR Cr Parameter Q2 FY19 Q1 FY20 Q2 FY20 QoQ YoY H1 FY19 H1 FY20 YoY Net Revenue from operations 1,772 1,752 1,692 -3.5% -4.6% 3,494 3,444 -1.4% Raw Material 1,065 1,060 996 -6.0% -6.5% 2,100 2,055 -2.1% Gross margin 707 693 696 0.5% -1.6% 1,394 1,388
Slide 24: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt (INR Cr) 775 663 924 872 1498 1843 1800 1600 1401 LT Debt (Rs Cr) 1400 Debt breakup 1274 1200 1000 ST Debt (Rs Cr) 503 800 630 866 0.64 600 0.46 676 0.54 0.32 0.38 0.33 400 D/E 200 272 58 442 34 196 224 0 FY 15 FY 16 FY 17 FY18 FY19 H1 FY20 Levera
Slide 25: Standalone: Q2 FY20 Financials
Standalone: Q2 FY20 Financials All figures in INR Cr Parameter Q2 FY19 Q1 FY20 Q2 FY20 QoQ YoY H1 FY19 H1 FY20 H2 YoY Net Revenue from operations 1,736 1,704 1,645 -3% -5% 3,425 3,349 -2% Raw Material 1,058 1,047 976 -7% -8% 2,086 2,023 -3% Gross margin 678 656 670 2% -1% 1,339 1,326 -1% Gross margi
Slide 26: Equity Shareholding & Price trends
Equity Shareholding & Price trends Share Price (INR) Total Volume 1,600 4,000,000 1,400 3,500,000 1,200 3,000,000 1,000 2,500,000 800 2,000,000 600 1,500,000 400 1,000,000 200 500,000 - - Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Source : Capitaline. The abo
Slide 27: 800006
800006 000