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

CEAT

Annual Investor Conference June 14, 2018

Overview

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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

Note : Figures in parenthesis denote FY17 Truck and Buses, 32%, (33%) 2/3 wheelers, 31%, (29%) LCV, 12%, (13%) Passenger Cars / UV, 14%, (13%) Farm, 7%, (7%) Speciality, 4%, (5%) Exports, 12%, (14%) OEM, 27%, (23%) Replacement, 61%, (63%)

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Key Financial Updates

▪ FY18 Sales at Rs 6,231 Crs; 8.1% growth ▪ EBITDA at Rs 638 Crs; margin at 10.2% ▪ PAT at Rs 233 Crs; margin at 3.7% ▪ Debt / equity ratio at 0.3 times Revenue Growth in Focus Segments Financial Update

639 899 1,246 1,483 1,651 1,902 FY13 FY 14 FY 15 FY 16 FY 17 FY18 2/3 wheelers (Rs Cr) 376 476 561 619 744 848 FY13 FY 14 FY 15 FY 16 FY 17 FY18 PC / UV (Rs Cr)

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Key Capacity Updates

Operational facilities

PCR/TBR –

WIP Key Outsourcing facilities

Overall Capacity: > 1,200 MT / day and “Increasing”

TBB TBB/Farm 2 Wheelers All OHT

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

Strategy

✓ Two wheelers ✓ Passenger cars & Utility vehicles Profitable growth Differentiated Products

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Strong Brand

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Extensive Distribution

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Deep OEM Partnerships

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World Class R&D

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Expanding Global Reach

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✓ Off Highway Tyres ✓ Passenger Segments Domestic Market International Market

Differentiated Products

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Mileage up to

100,000 kms Puncture-safe tyre Exciting New Products Launched every year

Strong Brand

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Continued association with Cricket

Ajinkya Rahane Rohit Sharma

Ishan Kishan Harmanpreet Shubhman Gill CEAT Cricket Awards IPL’s Strategic Time-Out

Strong Brand

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Campaigns and TVCs

Extensive Distribution

3 Distribution Network ▪ 4,500+ dealers ▪ 500+ CEAT Franchisees (Shoppes + Hubs) ▪ 280+ two-wheeler distributors ▪ 400+ Multi Brand Outlet / Shop in Shops ▪ Launched CEAT Bike Shoppes

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Shoppe Shop in Shop (SIS) Multi Brand Outlet (MBO) Bike Shoppe District Coverage

• No. of CEAT Shoppes

102 ~35

FY12 FY18

212 464 601

FY12 FY15 FY18

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Deep OEM Partnerships

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World Class R&D

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▪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

• f 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)

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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

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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

Y O U T H A N K