Ceat Ltd. — Investor Presentation 2021

May 27, 2021

May 27, 2021

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001 Security Code: 500878

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Symbol: CEATLTD NCD Symbol: CL23, CL25 CP Listed ISIN: INE482A14AD9, INE482A14AE7, INE482A14AF4, INE482A14AG2

Sub: Revised Investor Presentation – Q4 FY2021

Dear Sir/Madam,

In continuation of our letter dated April 29, 2021, and May 5, 2021 please find enclosed herewith revised Investor Presentation for the period ended March 31, 2021.

Kindly note that, revision has been made only in Section 4: Environment, Social, Governance (ESG) Overview covered through slide numbers 28 and 29 of the presentation and no other change is made including the financial information.

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

An Group Company

Q4 FY21 – Investor Presentation | 5 th May 2021

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, and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements.

The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company undertake no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise. Any opinions or information expressed in this presentation are subject to change without notice.

This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of CEAT Limited (the "Company"), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefore. Any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.

Section 1: RPG Group Overview	4-6
Section 2: Business Overview	7-17
Section 3: Operational & Financial Overview	18-26

Section 4: Environment, Social and Governance (ESG) Overview 27-28

Section 1: RPG Group Overview

RPG Group: Powered by Passion, Driven by Ethics

UNLEASHTALENT TOUCHLIVES OUTPERFORM AND☺

RPG Enterprises was founded in 1979. The group currently operates in various industries - Infrastructure, Technology, Life Sciences, Plantations and Tyre Manufacturing. The group has a history of business dating back to 1820 AD in banking, textiles, jute and tea. The Group grew in size and strength with several acquisitions in the 1980s and 1990s. CEAT became a part of the RPG Group in 1982, which is now one of India's fastest growing conglomerates with 20000+ employees, presence in 100+ countries and annual gross revenues of over $3 Bn.

RPG Group: Key Financials

3) Market Cap updated till 14th January 2021

Note:

Section 2: Business Overview Section 4: Business Overview

Board of Directors

Harsh Vardhan Goenka Chairman, Non Executive Director

Pierre E. Cohade Non Executive Non Independent Director

Anant Goenka Managing Director

Haigreve Khaitan Non Executive Independent Director

Arnab Banerjee COO and Whole Time Director

Atul C. Choksey Non Executive Independent Director

Mahesh S. Gupta Non Executive Independent Director

Paras K. Chowdhary Non Executive Independent Director

Priya Nair Non Executive Independent Director

Ranjit Pandit Non Executive Independent Director

Vinay Bansal Non Executive Independent Director

Leadership Team

Anant Goenka

Kumar Subbiah

Managing Director Chief Financial Officer

Arnab Banerjee

Chief Operating Officer

Milind Apte

Senior Vice President – Human Resources

Senior Vice President – Manufacturing

Dilip Modak Vijay Gambhire

Chief Executive – CEAT Specialty, Senior Vice President – QBM

Saurav Mukherjee

Senior Vice President – Global Sales

Peter Becker

Senior Vice President – R&D and Technology

India's leading tyre company with over 50 yrs of presence

Distribution Network : 3,400+ dealers, 300+ 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 player in Sri Lanka in terms of market share

1. Consolidated revenue breakup

2. Corresponding figures in investor presentations till Q4 FY19 had standalone revenue break-up

3. Figures in parenthesis denote FY20 consolidated Revenue (post CSTL merger) break-up

11

1 Differentiated Products

Strengthening OEM Relationships

Key developments

• Focus on OEM, recent entries in new models – Hero MotoCorp Splendor iSmart (BSVI), Hero MotoCorp HF Deluxe (BSVI), Hero Dare 125, Hero Duet E, Maruti Suzuki Alto VXI+, Hero Glammer Refresh, Mahindra Jeeto Z Series, Tata Intra, Mahindra Perak, Mahindra Thar, Nissan MAGNITE
• Recent entries into OEM's existing models – Honda Bikes till 125 CC, Yamaha FZ 150 CC, Suzuki Gixxer 150 CC, Ashok Leyland Truck 1618, Daimler BSVI Trucks, Piaggio Aprilia 150 CC, Hyundai i20
• Platforms like Fuelsmart, Gripp, Mileage X3, SecuraDrive, Vardhan etc.

Continued association Indian Premier League as the official Strategic Timeout Partners

cricket in an exclusively curated CEAT x The Edges &

Sledges Cricket Podcast

Challenging Norms and Changing Perceptions through CEAT's Advertisements and Initiatives

CEAT Shoppe Shop in Shop (SIS) Multi Brand Outlet CEAT Bike Shoppe

3400+

Dealers & Channel Partners

275+ 2W Distributors 600+ Districts

300+ CEAT Franchisees 35,000+ Sub-dealers

400+ MBO / SIS

TATA Motors	Ashok Leyland	VECV	EscortsAMW	TAFE
Mahindra	Daimler	Eicher	SML Isuzu	JBM Group
Maruti Suzuki	TATA Motors	Mahindra	RenaultHyundai	KIANissan
Force Motors	DatsunSkoda	Peugeot	Volkswagen	Morris Garage
Honda	BajajRoyal Enfield	Yamaha	SuzukiHero	Hero Electric
Piaggio	TorkLML	Tunwal	Okinawa Scooters	Kawasaki

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

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

Section 5: Operational & Financial Overview Section 3: Operational & Financial

Q4 FY21 Operational Highlights

Awards and Recognition Launches on CEAT

Awarded Best Company in Quality management for standard parts by Honda

Partnership with Renault Renault Kiger B-SUV rolled out on CEAT SecuraDrive tyres

Recognized among India's top 10 workplaces in health and wellness by GPTW institute

Royal Enfield Interceptor 650 on CEAT's Zoom Cruz tyres

Q4 FY21 v/s Q3 FY21 (Q-o-Q)

▪ Net revenue from operations grew by 3.1% to INR 2,290

Crs from INR 2,221 Crs

• Gross margin contracted to 42.0% from 45.5%
• EBITDA stood at INR 269 Crs compared to INR 339 Crs; margins at 11.7% from 15.3%
• PAT stood at INR 153 Crs compared to INR 132 Crs
• Debt / equity at 0.42x compared to 0.49x

Q4 FY21 v/s Q4 FY20 (Y-o-Y)

▪ Net revenue from operations grew by 45.5% to INR 2,290

Crs from INR 1,573 Crs

• Gross margin contracted to 42.0% from 45.6%
• EBITDA stood at INR 269 Crs compared to INR 203 Crs;

margins at 11.7% from 12.9%

• PAT stood at INR 153 Crs compared to INR 52 Crs
• Debt / equity at 0.42x compared to 0.66x

Consolidated: Financial Trends

Note

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

Consolidated: Financial Trends

Consolidated: Q4 FY21 Financials

								All figures in INR Cr
Parameter	Q4 FY20	Q3 FY21	Q4 FY21	QoQ	YoY	FY20	FY21	YoY
Net Revenue from operations	1,573.4	2,221.3	2,289.7	3%	46%	6,778.8	7,609.6	12%
Raw Material	855.2	1,209.6	1,328.3	10%	55%	3,915.1	4,266.3	9%
Gross margin	718.3	1,011.7	961.5	-5%	34%	2,863.8	3,343.3	17%
Gross margin %	45.6%	45.5%	42.0%	(355) bps	(366) bps	42.2%	43.9%	169 bps
Employee Cost	141.8	180.6	182.6	1%	29%	541.8	675.5	25%
Other Expenses	376.1	503.4	518.0	3%	38%	1,598.1	1,684.9	5%
EBITDA	202.9	339.4	268.7	-21%	32%	741.1	1,019.3	38%
EBITDA %	12.9%	15.3%	11.7%	(354) bps	(116) bps	10.9%	13.4%	246 bps
Finance Cost	40.7	41.9	39.9	-5%	-2%	150.9	175.5	16%
Depreciation	74.5	87.3	89.9	3%	21%	276.5	339.6	23%
Operating PBT	87.7	210.2	138.9	-34%	58%	313.6	504.1	61%
Exceptional expense	28.2	12.3	-	NA	NA	29.8	34.1	14%
Non-Operating income	3.5	4.1	3.2	-22%	-10%	20.5	13.8	-33%
PBT	63.1	202.0	142.1	-30%	125%	304.3	483.9	59%
PAT	51.7	132.3	153.0	16%	196%	230.1	432.3	88%

Notes

Figures are as per IND AS

Company's investment in Sri Lanka JV is accounted using Equity method under IND AS which was earlier consolidated using proportionate consolidation method

Gross margin includes impact of non-material cost movement of inventory (FG + SFG)

EBITDA includes profit from Sri Lanka JV

EBITDA does not include Non-operating income

Consolidated: Leverage / coverage Profile

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

								All figures in INR Cr
Parameter	Q4 FY20	Q3 FY21	Q4 FY21	QoQ	YoY	FY20	FY21	YoY
Net Revenue from operations	1,564.5	2,212.5	2,279.0	3%	46%	6,747.9	7,572.8	12%
Raw Material	851.6	1,206.5	1,325.9	10%	56%	3,905.3	4,251.3	9%
Gross margin	712.9	1,006.0	953.1	-5%	34%	2,842.6	3,321.5	17%
Gross margin %	45.6%	45.5%	41.8%	(365) bps	(375) bps	42.1%	43.9%	174 bps
Employee Cost	139.5	178.5	180.6	1%	29%	534.1	667.1	25%
Other Expenses	374.5	501.7	517.2	3%	38%	1,590.8	1,680.6	6%
EBITDA	199.0	325.8	255.3	-22%	28%	717.6	973.8	36%
EBITDA %	12.7%	14.7%	11.2%	(352) bps	(152) bps	10.6%	12.9%	222 bps
Finance Cost	40.1	41.2	39.2	-5%	-2%	149.1	173.1	16%
Depreciation	75.0	87.3	89.9	3%	20%	277.1	339.6	23%
Operating PBT	83.8	197.4	126.2	-36%	51%	291.5	461.2	58%
Exceptional expense	28.2	12.3	-			29.8	34.1	14%
Non-Operating income	3.8	10.0	3.1	-69%	-19%	30.7	31.8	4%
PBT	59.5	195.1	129.4	-34%	117%	292.4	458.9	57%
PAT	50.1	127.6	141.8	11%	183%	224.6	413.6	84%

Notes

Financials are as per IND AS

Gross margin includes impact of non-material cost movement of inventory (FG + SFG)

EBITDA does not include Non-operating income 25

Equity Shareholding & Price trends

Source : Stock Exchange. The above data is updated till 31st December 2020

• Market Price (May 4th, 2021): INR 1,378.00/share
• Face Value : INR 10/share
• Market Cap (May 4th, 2021): INR 5,574 Cr

Section 5: Operational & Financial Overview Section 4: Environment, Social, Governance (ESG) Overview

CEAT's ESG Journey

CEAT published its Maiden Integrated Annual Report in FY20

Over the last 2 years, the company has worked extensively on strengthening its existing Environment practices while developing long-term Environment Vision and Goals

2030 Sustainability Vision: Reduce Carbon Footprint by 50%

• Using the levers: Culture, Operational Systems and Management Systems to achieve long-term Vision and Goal
• Detailed action plans with focus on:
  • ✓ Renewable Energy sources
  • ✓ End-of-life-tyres management,
  • ✓ Greener products etc.

CEAT's Initiatives

Commitment to Environment

• ✓ Rooftop Solar plants with combined capacity of 14.6 MW, across 4 of our facilities with an investment of INR 50 crores.
• ✓ Post commissioning ~25% of our plant electricity consumption will be sourced through Solar.

Diversity and Inclusion

• ✓ Promoting diversity and inclusion across roles and demographics.
• ✓ 28% female workforce at Chennai facility. Target to reach 40%.
• ✓ CEAT Swayam program for training Women Drivers.

Commitment to Society

• ✓ Initiatives for our value chain partners and society at larger during COVID-19.
• ✓ 10K+ trucks sanitized, meal distribution for daily wage labourers, ventilator distribution, new business models for safer operations.

T H A N K Y O U