CEAT Annual Investor Conference June 14, 2018 Overview One of - PowerPoint PPT Presentation

CEAT Annual Investor Conference June 14, 2018

Overview One of India’s Leading Tyre company Distribution Network : 4,500+ dealers, 450+ exclusive CEAT franchisees 6 Manufacturing facilities - Bhandup, Nasik, Halol, Nagpur, Ambernath & Sri Lanka 100+ countries where products are sold with strong brand recall FY 18 Revenue Breakup by Product FY 18 Revenue Breakup by Market Exports, 12%, Speciality, 4%, (5%) (14%) Farm, 7%, (7%) Passenger Cars / Truck and Buses, UV, 14%, (13%) 32%, (33%) OEM, 27%, (23%) Replacement, LCV, 12%, (13%) 61%, (63%) 2/3 wheelers, 31%, (29%) Note : Figures in parenthesis denote FY17 2

Key Financial Updates Financial Update Revenue Growth in Focus Segments 2/3 wheelers (Rs Cr) ▪ FY18 Sales at Rs 6,231 Crs; 8.1% growth 1,902 1,651 1,483 1,246 ▪ EBITDA at Rs 638 Crs; margin at 10.2% 899 639 ▪ PAT at Rs 233 Crs; margin at 3.7% FY13 FY 14 FY 15 FY 16 FY 17 FY18 ▪ Debt / equity ratio at 0.3 times PC / UV (Rs Cr) 848 744 619 561 476 376 FY13 FY 14 FY 15 FY 16 FY 17 FY18 3

Key Capacity Updates Overall Capacity: > 1,200 MT / day and “Increasing” PCR/TBR – 2 Wheelers TBB/Farm Operational facilities TBB OHT WIP Key Outsourcing facilities All 4

CEAT won the prestigious ‘Deming Prize’ Recognition for Total Quality Management (TQM) 5

Strategy 1 Differentiated Products ✓ Two wheelers Domestic ✓ Passenger cars & Strong Brand Market 2 Utility vehicles Extensive Distribution 3 Profitable growth Deep OEM Partnerships 4 ✓ Off Highway Tyres International ✓ Passenger Segments Market World Class R&D 5 Expanding Global Reach 6 6

Differentiated Products 1 Exciting New Products Launched every year Mileage up to Puncture-safe tyre 100,000 kms 7

Strong Brand 2 Continued association with Cricket Harmanpreet Ishan Kishan Ajinkya Rahane Rohit Sharma Shubhman Gill CEAT Cricket Awards IPL’s Strategic Time -Out 8

Strong Brand 2 Campaigns and TVCs 9

Extensive Distribution 3 Distribution Network Shoppe Shop in Shop (SIS) ▪ 4,500+ dealers ▪ 500+ CEAT Franchisees (Shoppes + Hubs) ▪ 280+ two-wheeler distributors ▪ 400+ Multi Brand Outlet / Shop in Shops ▪ Launched CEAT Bike Shoppes Multi Brand Outlet (MBO) Bike Shoppe District Coverage No. of CEAT Shoppes ~35 601 0 464 212 102 FY12 FY15 FY18 FY12 FY18 10

Deep OEM Partnerships 4 11

World Class R&D 5 ▪ State of the art R&D facility at Halol plant ▪ Set-up an R&D centre at Germany with CEAT R&D Head and ~20 people based out of there. ▪ Partnerships with global institutes and technology partners ▪ Increased allocation towards R&D: Among the highest YoY increase in R&D spend* Source: Global Tyre Industry – An Analysis, 2017 (ATMA Report) 12

Expanding Global Reach 6 ▪ Exports to 90+ Countries in 7 clusters ▪ Sri Lanka: Manufacturing facility and Leadership position in the market and with 50+% market share ▪ Focused product and distribution strategy for select clusters and countries ▪ Establishing footprint in Europe through PCR 13

Off Highway Tyres Status Update ▪ Greenfield OHT (Off Highway Tyres) radial plant in Ambernath ▪ Plant is now live and commercial sales have begun across all key markets 14

T H A N K Y O U