Slide 1: Exchange filing cover letter for Q4 FY20 investor presentation
May 28, 2020 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai 400 001 Mumbai 400 051 Security Code: 500878 Symbol: CEATLTD CP Listing ISIN INE482A14932, INE482A14940, INE482A14957, INE482A14965,
Slide 2: Q4 FY20 – Investor Presentation | 28th May, 2020
An Group Company Q4 FY20 – Investor Presentation | 28th May, 2020
Slide 3: 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 4: 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 5: Section 1: RPG Group Overview
Section 1: RPG Group Overview
Slide 6: 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 7: 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 Market Cap Net Worth ROE ROCE 9,000.00 40
Slide 8: Section 2: Business Overview
Section Section2:4:Business BusinessOverview Overview
Slide 9: 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 10: 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 Dilip Modak Vijay Gambhire Peter Becker Senior Vice President Managing Director – CEAT Specialty, Senior Vice President – Ma
Slide 11: Overview
Overview India’s leading tyre company with over 50 yrs of presence Distribution Network : 4,000+ dealers, 500+ exclusive CEAT franchisees 7 Manufacturing facilities - Bhandup, Nasik, Halol, Nagpur, Ambernath, Chennai & Sri Lanka 100+ countries where products are sold with strong brand recall #No 1 p
Slide 12: Strategy
Strategy Differentiated Product OEM Relationships Strong Brand World Class R&D Extensive Distribution Global Reach 11
Slide 13: Differentiated Products
1 Differentiated Products New Entries and Supplier to OEM’s Key developments ▪ Focus on OEM, recent entries in new models –Honda Activa (BSVI), Honda CB Shine SP (BSVI), Hero MotoCorp Splendor iSmart (BSVI), Hero MotoCorp HF Deluxe (BSVI), Hero Dare 125, Hero Duet E, Maruti Suzuki Alto VXI+, Hero Gl
Slide 14: Strong Brand
2 Strong Brand CEAT’s colourful Limited Edited CEAT Zoom Rad Tubless tyres CEAT’s ode to the Unsung Heroes Truckers and Fleets CEAT products: providing superior performance across segments and terrains 13
Slide 15: Extensive Distribution
3 Extensive Distribution CEAT Shoppe Shop in Shop (SIS) Multi Brand Outlet CEAT Bike Shoppe 4000+ 300+ 600+ Dealers & 2W Distributors Districts Channel Partners 500+ 35,000+ 400+ CEAT Franchisees Sub-dealers MBO / SIS 14
Slide 16: 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 17: 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 18: 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 19: Expanding Global Reach
6 Expanding Global Reach CEAT commissioned its Greenfield facility at Chennai 18
Slide 20: Section 3: Operational & Financial Overview
Section Section3:5:Operational Operational&&Financial Financial Overview Overview
Slide 21: Q4 FY20 Operational Highlights
Q4 FY20 Operational Highlights Ratings and Awards OEM Model Entry CEAT’s credit ratings affirmed by CARE & India Rating AA for long term with stable outlook & A1+ for short term CEAT won Best Risk Management Framework Award from ICICI Lombard & CNBC 18 Hero Glamour Refresh Piaggio Aprilia Mahindra J
Slide 22: Consolidated: Q4 FY20 Financial Highlights
Consolidated: Q4 FY20 Financial Highlights Q4 FY20 v/s Q3 FY20 (Q-o-Q) Q4 FY20 v/s Q4 FY19 (Y-o-Y) ▪ Net revenue from operations declined by 10.7% at INR ▪ Net revenue from operations declined by 10.6% at INR 1,573 Crs from INR 1,762 Crs 1,573 Crs from INR 1,760 Crs ▪ Gross margin expanded to 45.6%
Slide 23: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth 6,985 6,779 6,283 5,705 5,722 5,447 Net Sales (Rs Cr) FY15 FY16 FY17 FY18 FY19 FY20 14.9% 16.0% 10.9% 12.0% 14.0% 11.9% 10.2% 9.5% Margin trends 12.0% 10.0% EBITDA (Rs Cr) 8.0% 809 741 680 685 638 663 6.0% EBITDA to Net 4.0% Sales % 2.0% 0.0% FY15 FY16 F
Slide 24: Consolidated: Financial Trends – PAT trends
Consolidated: Financial Trends 500 8.0% 9.0% 450 8.0% 400 6.3% 7.0% 350 5.6% 6.0% PAT (Rs Cr) 3.6% PAT trends 300 250 3.7% 3.4% 5.0% 438 4.0% PAT to Net 200 150 317 361 3.0% 100 233 251 230 2.0% Sales% 1.0% 50 - 0.0% FY15 FY16 FY17 FY18 FY19 FY20 Notes FY16 onwards the figures are per IND AS; Other
Slide 25: Consolidated: Q4 FY20 Financials
Consolidated: Q4 FY20 Financials All figures in INR Cr Parameter Q4 FY19 Q3 FY20 Q4 FY20 QoQ YoY FY19 FY20 YoY Net Revenue from operations 1,760.5 1,761.8 1,573.4 -11% -11% 6,984.5 6,778.8 -3% Raw Material 1,069.2 1,004.7 855.2 -15% -20% 4,181.8 3,915.1 -6% Gross margin 691.3 757.0 718.3 -5% 4% 2,80
Slide 26: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt (INR Cr) 775 663 924 872 1498 1929 180 0 1693 160 0 LT Debt (Rs Cr) Debt breakup 1274 140 0 120 0 100 0 ST Debt (Rs Cr) 503 800 630 866 0.66 676 0.54 0.46 0.38 600 0.32 0.33 400 D/E 58 200 272 34 196 224 236 0 FY 15 FY 16 FY 17 FY18 FY19 FY20 809
Slide 27: Standalone: Q4 FY20 Financials
Standalone: Q4 FY20 Financials All figures in INR Cr Parameter Q4 FY19 Q3 FY20 Q4 FY20 QoQ YoY FY19 FY20 YoY Net Revenue from operations 1,717.5 1,708.6 1,523.6 -11% -11% 6,831.3 6,581.1 -4% Raw Material 1,052.9 981.4 847.3 -14% -20% 4,140.3 3,851.8 -7% Gross margin 664.6 727.1 676.4 -7% 2% 2,691.0
Slide 28: Equity Shareholding & Price trends
Equity Shareholding & Price trends Share Price (INR) Total Volume 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 - - Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Source : Capitaline. The above data is updated till 31st Mar
Slide 29: 800006
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