Slide 1: Q1 FY19 – Investor Presentation
An Group Company Q1 FY19 – Investor Presentation | 20th July, 2018
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 8-19 Section 3: Operational & Financial Overview 21-28
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 Hari L. Mundra Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary 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 – Hyundai New Verna, Ashok Leyland Dost, Mahindra E Alpha, Bajaj New Platina, Honda Cliq, Ashok Leyland Stag and Partner, Tork T6X, Hero Motocorp Achiever 150, Renault Kwid, Hima
Slide 13: Strong Brand
2 Strong Brand Continues association with Ultimate Table Tennis Championship Another innings of CEAT Cricket Rating Awards CEAT’s Superior GRIP Scooter Tyres 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 ORPG @ Deep OEM Partnerships «lp @® == VE COMMERCIAL VEHICLES = . = TATA Ashok Leyland VOLVO GROUP AND EIGHER MOTORS JOINT VENTURE ESCORTS a> : C/D ® ecHeR sme “®AMW sarewW: Mahindra DAIMLER 1IsuUZzU BUILT TO WIN : vw TF De & Sf. & MARUTI ry Suzuki wmorrs Mahindra Wy UNDAI MOTORS ae AWA SCOOTER
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: Section 3: Operational & Financial Overview
Section Section3:5:Operational Operational&&Financial Financial Overview Overview
Slide 19: Q1 FY19 Operational Highlights
Q1 FY19 Operational Highlights Recognition for CEAT OEM Model Entry CEAT won best IR award under the Royal Enfield Himalayan ABS mid-cap category by IR magazine 19
Slide 20: Consolidated: Q1 FY19 Financial Highlights
Consolidated: Q1 FY19 Financial Highlights Q1 FY19 v/s Q4 FY18 (Q-o-Q) Q1 FY19 v/s Q1 FY18 (Y-o-Y) ▪ Net revenue from operations increased by 1.9% at INR ▪ Net revenue from operations increased by 16.9% at INR 1,706 Crs from INR 1,674 Crs 1,706 Crs from INR 1,460 Crs ▪ Gross margins contracted to 39
Slide 21: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth 6,231 5,508 5,705 5,447 5,722 Net Sales (Rs Cr) 1,706 FY 14 FY15 FY16 FY17 FY18 Q1 FY19 14.9% 11.9% 11.9% 809 12.0% 10.6% Margin trends 10.2% 680 685 EBITDA (Rs Cr) 638 658 EBITDA to Net Sales % 181 FY 14 FY15 FY16 FY17 FY18 Q1 FY19 Note FY16 onwards the
Slide 22: Consolidated: Financial Trends – PAT and Return Ratios
Consolidated: Financial Trends 8.0% 438 6.3% 4.9% 5.6% PAT (Rs Cr) 361 317 3.7% PAT trends 271 233 4.2% PAT to Net Sales% 71 FY 14 FY15 FY16 FY17 FY18 Q1 FY19 30% Return Ratios 25% 23% ROE (%) 16% 18% ROCE post tax 17% 17% 11% (%) 9% 11% 11% 9% FY 14 FY15 FY16 FY17 FY18 Q1 FY19 Notes FY16 onwards th
Slide 23: Consolidated: Q1 FY19 Financials
Consolidated: Q1 FY19 Financials Parameter Q1 FY18 Q4 FY18 Q1 FY19 QoQ YoY Net Revenue from operations 1,460 1,674 1,706 2% 17% Raw Material 961 1,010 1,035 2% 8% Gross margin 499 664 671 1% 35% Gross margin % 34.2% 39.7% 39.3% -32 bps 517 bps Employee 100 115 119 3% 19% Other Expenses 344 351 377 7
Slide 24: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt 1174 775 663 924 872 755 (INR Cr) 423 LT Debt (Rs Cr) Debt breakup 852 1.1 451 354 442 ST Debt (Rs Cr) 588 750 0.5 0.3 0.4 0.3 421 D/E 312 0.3 421 75 72 FY 14 FY 15 FY 16 FY 17 FY18 Q1 FY19 809 EBITDA (Rs Cr) Leverage ratios 658 680 8.5 685 638 8.
Slide 25: Standalone: Q1 FY19 Financials
Standalone: Q1 FY19 Financials Parameter Q1 FY18 Q4 FY18 Q1 FY19 QoQ YoY Net Revenue from operations 1,451 1,649 1,674 1.6% 15.4% Raw Material 965 1,008 1,028 2.0% 6.5% Gross margin 486 640 646 0.9% 32.9% Gross margin % 33.5% 38.8% 38.6% -25 bps 510 bps Employee 96 106 110 3.8% 14.7% Other Expenses
Slide 26: Equity Shareholding & Price trends
Equity Shareholding & Price trends Total Volume Close Price (Rs) 3,500,000 2,500 3,000,000 2,000 2,500,000 2,000,000 1,500 1,500,000 1,000 1,000,000 500 500,000 - - Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Source : Capitaline. The above data is updat
Slide 27: 800006
800006 000