Ceat Ltd. — Investor Presentation 2021

Jun 14, 2021

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June 14, 2021

BSE Limited

National Stock Exchange of India Limited

Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Bandra Dalal Street, (East), Mumbai 400 001 Mumbai 400 051 Security Code: 500878 Symbol: CEATLTD NCD Symbol: CL23, CL25 CP Listed ISIN: INE482A14AD9, INE482A14AE7, INE482A14AF4, INE482A14AG2, INE482A14AH0

Sub: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Madam,

In continuation to our letter dated June 9, 2021, please find enclosed herewith the Investor’s Presentation which will be made during RPG Annual Investor Conference 2021.

You are requested to kindly take the same on record and disseminate appropriately.

Thanking you,

Yours faithfully

For CEAT Limited

Vallari Gupte Company Secretary and Compliance Officer

Encl. As above

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The Road Ahead…

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Last 10 years of CEAT…

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FY21 7,610 1,019 1,300 40K + 100+
4 new 25x in last
2.6x 3.3x 4x
plants 4 years
FY10 2,873 311 550 10K + NA
Revenue EBITDA Annual Distribution Patents Filed
(INR Cr) (INR Cr) Capacity Touchpoints
(TPD)
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Next 5 years..

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LEADERSHIP POSITION IN PASSENGER SEGMENTS (2/3W & PCR)

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TOP 3 IN TRUCK & BUS OVER 3x GROWTH IN SEGMENT INTERNATIONAL BUSINESS

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We have strengthened our capabilities across these businesses

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Extensive Strong
Distribution network Brand Equity
Passenger Segments
Superior Innovative
Product Service Models
Truck and Bus Segment
Customer centric Seeding Right
Product Development Markets
International Business
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We are leveraging multiple enablers to drive us towards our goals

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RESEARCH & DEVELOPMENT

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MANUFACTURING

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DIGITAL
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DISTRIBUTION & BRAND EQUITY

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FINANCIALS

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PEOPLE & SUSTAINABILITY

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Research & Development

CEAT’s Baroda R&D centre

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Advanced R&D Capabilities

Compounding

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• ✓ Global partnerships with universities

• ✓ Alternate materials

• ✓ Sustainability

• ✓ Optimizing costs

Testing

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• ✓ Rigorous indoor and outdoor testing

• ✓ Advanced digital systems to simulate on-road tyre performance

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Industrialization

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• ✓ Reduced product development time

• ✓ Digitized Product Life Cycle Management

Future Technologies

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• ✓ EV Tyres

• ✓ Green Tyres

• ✓ Tyres with sensors

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New Products Developed and OEM launches

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Mahindra Thar Hero Glamour Refresh Nissan Magnite

Hyundai i20

Renault Kiger B-SUV RE Interceptor

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Manufacturing

Tyre Building Machine at Chennai

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Our Manufacturing Locations
Ambernath
Halol
Nashik
Mumbai
Nagpur
Chennai
Sri Lanka
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State-of-the-art Plants

Commissioned new plants across Chennai, Nagpur & Ambernath

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Chennai Facility Nagpur Facility
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High levels of Automation, TQM Practices, Safety and Diversity

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Adding Capacities to Expand Market Share

	Segment	Unit	FY21 Exit	FY22 Exit	FY23 Exit
	Passenger Car Radial	Tyres / month	8,70,000	11,60,000	14,50,000
	2/3 - Wheeler	Tyres / month	33,04,000	33,55,000	41,65,000
	Truck and Bus Radial *	Tyres / month	1,00,000	1,20,000	1,56,000
	Truck and Bus Bias	Tyres / month	1,45,000	1,45,000	1,45,000
	Off-Highway (Bias + Radial)	Tonnes / day	165	200	225
	LM / LCV	Tonnes / day	80	80	80
	Sri Lanka	Tonnes / day	60	60	60

*Further 54,000 tyres/month of TBR capacity will be added post FY23

Note: Above numbers indicate company’s installed capacity for given periods. The actual production / capacity utilization will be a function of the demand environment at given points of time

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Off Highway Business Update

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Launched niche agricultural tyres based on Flex Technology (IF/VF)

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70% Growth in Europe Sales in FY21

2x Increase in channel partners in FY21

6 New countries

Ambernath plant is well poised to capture the market potential

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Digital

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Purchase: Superior Customer Experience

Search

Buy Deliver & Fit

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Doorstep delivery & fitment or Pick up at store

Seamless ordering 24x7 support

Available on all platforms

Over 40 customer experience journey touchpoints

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Post Purchase: Engagement
Indicative Personalized Customer Journey
Jan 2020 Dec 2020 Jun 2021 Dec 2021 Dec 2022
Customer purchases and Reminder for Personalized offers Re-targeting after
registers for warranty wheel alignment based on interest 3 years
Most Advanced Dealer Portal Quickest Claim Resolution – 15 minutes
Upload tyre images Instant claim resolution
using image analytics
WhatsApp Chat or
Dealer Portal
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Online order and get same day delivery

Brand Equity

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Improving Brand Equity – Associations and Innovative Campaigns

Aamir Khan CEAT’s New Brand Ambassador

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#DontBeADummy campaign

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IPL’s Official Strategic Timeout Partner

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CEAT Puncture Safe Tyre #KeelWaleBaba campaign

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Financials

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Profitable growth

Net Sales (INR Cr)

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7,610
6,985
6,779
6,283
5,722
FY17 FY18 FY19 FY20 FY21
EBITDA (INR Cr) & EBITDA Margin
13.4%
12.0%
10.9%
10.2% 9.5% 1,019
638 741
685 663
FY17 FY18 FY19 FY20 FY21
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16.0%
14.0%
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12.0%
10.0%
8.0%
6.0%
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4.0%

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2.0%
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0.0%
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All figures are per IND AS Company’s investment in Sri Lanka JV is accounted using Equity method EBITDA includes profit from Sri Lanka JV; EBITDA does not include Non-operating income

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Note

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Balance sheet

Debt Break-up

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924 872 1,498 1,929 1,418
2000
1800
LT Debt (INR Cr)
1600 1693
1400
1200 1274
1397
1000800 0.66 ST Debt (INR Cr)
0.54
600 866 676 0.42
400 D/E
0.33
200 0.38
0 58 196 224 236 21
FY 17 FY18 FY19 FY20 FY21
Leverage Ratios
1200
1019
8.4
1000
EBITDA (INR Cr)
663 741
800 638 5.8
685
600 6.6 7.5
400 4.9 Debt / EBITDA (x)
200 1.3 1.4 1.4
2.3 2.6
0
EBITDA / Interest (x)
FY 17 FY18 FY19 FY20 FY21
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Note

All figures are per IND AS Debt numbers are on Gross basis Company’s investment in Sri Lanka JV is accounted using Equity method EBITDA includes profit from Sri Lanka JV; EBITDA does not include Non- operating income Long Term debt also includes the ‘Current Maturities’ component of the long-term debt

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Sustainability

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Sustainability

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Manufacturing
✓ Using briquette as fuel
✓ ~25% of plant electricity
through rooftop solar plants
Materials
✓ Reduce Carbon Footprint
Greener raw materials;
recycled crumb rubber by 50% by 2030 ✓
✓ ESG compliant vendors
Product Use
End of Life
✓ Light weight tyres
✓ High recycling and recovery
✓ Low rolling resistance
rates
✓ Increased retreadability
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Transportation
✓ Network optimization
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THANK YOU

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