Slide 1: Q4 FY19 – Investor Presentation
An Group Company Q4 FY19 – Investor Presentation | 7th May, 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 8-18 Section 3: Operational & Financial Overview 20-27
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 FY14-18 FY14-18 CAGR: Gross Total Income (Rs Cr.) EBITDA PAT CAGR: 4.9% 21,766 EBITDA 8.0% PAT 11.7% 2,218 19,271 20,052 2,014 2,045 19,183 17,949 1,630 1,668 980 1,031 879 663 739 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 8,000.00 Net Worth ROE ROCE 40.0% Market Ca
Slide 7: Section 2: Business Overview
Section Section2:4:Business BusinessOverview Overview
Slide 8: Board of Directors
Board of Directors Harsh Vardhan Goenka Anant Vardhan Goenka Arnab Banerjee Atul C. Choksey Chairman, Non Executive Director Managing Director Whole -Time Director Non Executive Independent Director Pierre E. Cohade Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary Non Executive Non Executive Non
Slide 9: 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 Peter Becker Executive Director - Projects & Senior Vice President S
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 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 ✓ Passenger Segments 5 World Class R&D 6 Expanding 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 – Ashok Leyland Stag and Partner, Tork T6X, Hero Motocorp Achiever 150, Renault Kwid, Himalayan ABS (Royal Enfield), The Ace Deluxe – Cleveland Cycleworks, Hyundai New Santro, He
Slide 13: Strong Brand
2 Strong Brand CEAT launches association with Launched Gripp X3 Hyundai Partnership Awards Mayank Agarwal Everlasting Grip Tyres for motorcycles Awarded for “Excellence in Customer Delight” CEAT’s Safety Banner campaign at Kumbh Mela ET Innovation Award for Marketing & Brand Innovation 13
Slide 14: Extensive Distribution
3 Extensive Distribution Shoppe Shop in Shop (SIS) Distribution Network ▪ 4,500+ dealers ▪ 500+ CEAT Franchisees (Shoppes + Hubs) ▪ 280+ two-wheeler distributors ▪ Developed Multi Brand Outlet / Shop in Shop model over last 2 years. Over 400 outlets so far ▪ Launched CEAT Bike Shoppes in Bangalore a
Slide 15: Deep OEM Partnerships
C=AT RPG © Deep OEM Partnerships «lp @® == VE COMMERCIAL VEHICLES = . = == AVOLM IROUP AND EICHER MOTOR: INT VENTURE, — = TATA Ashok Leyland VOLVO GROU! ICI MOTORS JO! UI ESCORTS : a= : CD 4 ecHeR sme “®AMW sarewW: Mahindra DAIMLER 1IsuUZzU BUILT TO WIN : oe if & © DAT" UN } : —-> SUZUKI TATA Mahind
Slide 16: World Class R&D
5 World Class R&D ▪ 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 and technology partners Breakthrough Products ▪ “Puncture Safe” tyres for Two Wheelers – India
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: Halol Expansion – Commissioning and Smooth Ramp-up
6 Halol Expansion – Commissioning and Smooth Ramp-up Ramp-up in progress and on schedule 18
Slide 19: Section 3: Operational & Financial Overview
Section Section3:5:Operational Operational&&Financial Financial Overview Overview
Slide 20: Q4 FY19 Operational Highlights
Q4 FY19 Operational Highlights Launch of New Products OEM Model Entry Gripp X3 launched for motorcycles Maintains same grip in entire lifetime Mahindra Bolero Royal Enfield i-Praise e-Scooter Bullet Trails By Okinawa Scooters 350cc and 500cc Exclusive launch by CEAT 20
Slide 21: Consolidated: Q4 FY19 Financial Highlights
Consolidated: Q4 FY19 Financial Highlights Q4 FY19 v/s Q3 FY19 (Q-o-Q) Q4 FY19 v/s Q4 FY18 (Y-o-Y) ▪ Net revenue from operations increased by 1.8% at INR ▪ Net revenue from operations increased by 4.4% at INR 1,760 Crs from INR 1,730 Crs 1,760 Crs from INR 1,686 Crs ▪ Gross margins contracted to 39.
Slide 22: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth 6,985 6,283 5,508 5,705 5,447 5,767 Net Sales (Rs Cr) FY 14 FY15 FY16 FY17 FY18 FY19 14.9% 11.9% 11.9% 809 11.9% 9.5% 10.2% Margin trends 680 685 EBITDA (Rs Cr) 638 663 658 EBITDA to Net Sales % FY 14 FY15 FY16 FY17 FY18 FY19 Note FY16 onwards the figure
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% 350 6.0% 300 3.6% PAT (Rs Cr) 3.7% 5.0% PAT trends 250 438 4.0% 361 200 150 271 317 3.0% PAT to Net Sales% 100 233 251 2.0% 1.0% 50 - 0.0% FY 14 FY15 FY16 FY17 FY18 FY19 Notes FY16 onwards the figures are per IND AS; Other
Slide 24: Consolidated: Q4 FY19 Financials
Consolidated: Q4 FY19 Financials All figures in INR Cr Parameter Q4 FY18 Q3 FY19 Q4 FY19 QoQ YoY FY18 FY19 YoY Net Revenue from operations 1,686 1,730 = 1,760 2% 4% 6,283 6,985 11% Raw Material 1,010 1,013 1,069 6% 6% 3,810 4,182 10% Gross margin 676 717 691 -4% 2% 2,473 2,803 13% Gross margin % 40.
Slide 25: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt 1174 775 663 924 872 1498 (INR Cr) 1274 140 0 120 0 LT Debt (Rs Cr) Debt breakup 100 0 577 800 1.14 866 676 ST Debt (Rs Cr) 503 0.54 600 0.46 630 400 0.32 0.38 0.33 597 D/E 58 200 272 34 196 224 0 FY 14 FY 15 FY 16 FY 17 FY18 FY19 809 EBITDA (Rs C
Slide 26: Standalone: Q4 FY19 Financials
Standalone: Q4 FY19 Financials All figures in INR Cr Parameter Q4 FY18 Q3 FY19 Q4 FY19 QoQ YoY FY18 FY19 YoY Net Revenue from operations 1,661 1,689 1,717 2% 3% 6,213 6,831 10% Raw Material 1,008 1,002 1,053 5% 4% 3,804 4,140 9% Gross margin 653 687 665 -3% 2% 2,409 2,691 12% Gross margin % 39.3% 40
Slide 27: Equity Shareholding & Price Trends
Equity Shareholding & Price trends Close Price Total Volume 1,800 400,000 1,600 350,000 1,400 300,000 1,200 Share Price 250,000 Volume 1,000 200,000 800 150,000 600 400 100,000 200 50,000 0 0 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Source : Capitali
Slide 28: 800006
800006 000