Apollo Tyres Limited. · NSE:APOLLOTYRE
Apollo Tyres — Investor Presentation (August 2018)
23 slides from Apollo Tyres's investor presentation, Aug 2, 2018
Slide 1: Stock exchange cover letter: Investor Meet presentation
APOLLO TYRES LTD 7 Institutional Area Sector 32 Gurgaon 122001, India T: +91124 2383002 F: +91124 2383021 apollotyres.com GST No.: 06AAACA6990Q1Z2 ap~l! ATL/SEC/21 August 2, 2018 The Secretary, The Secretary, BSE Ltd. National Stock Exchange of India Ltd, PhirozeJeejeebhoy Towers, Exchange Plaza, Da
Slide 2: Corporate Day, 2nd August 2018
Corporate Day 2nd August 2018 apollotyres.com 1
Slide 3: Disclaimer
DISCLAIMER These materials have been prepared by Apollo Tyres Limited together with its subsidiaries (the “Company”), are for informational purposes only and do not constitute a prospectus or an offer document, or form part of an offer, solicitation or invitation of any offer to purchase or subscrib
Slide 4: Table of Contents
TABLE OF CONTENTS Page # 1 KEY MILESTONES 4 2 APOLLO VISION 2020 6 3 MANAGEMENT AND BOARD 13 4 FINANCIAL OVERVIEW 17 5 WAY FORWARD 19 6 APPENDIX 21 apollotyres.com 3
Slide 5: Key Milestones
KEY MILESTONES Apollo’s growth has been driven by a mix of organic and inorganic initiatives Commenced production at Hungary greenfield plant Commenced construction of Hungary plant 2018 2017 2016 Fourth Inidia plant in Chennai, 2015 Tamil Nadu 2014 2013 Acquired Dunlop 2011 Tyres Internationa
Slide 6: Table of Contents
TABLE OF CONTENTS Page # 1 KEY MILESTONES 4 2 APOLLO VISION 2020 6 3 MANAGEMENT AND BOARD 13 4 FINANCIAL OVERVIEW 17 5 WAY FORWARD 19 6 APPENDIX 21 apollotyres.com 5
Slide 7: Vision 2020
VISION 2020 Maintain leadership across product categories in India Continue to establish Brands Cutting edge (Apollo and VISION Manufacturing and Vredestein) to drive profitable 2020 R&D to drive profitable growth growth Premium player in Europe apollotyres.com 6
Slide 8: India: Exciting Times Ahead
INDIA EXCITING TIMES AHEAD Key highlights – a) price and volume leadership in TBR driven by focus on R&D and product quality; b) consolidation in TBB to utilize existing capacities; c) Focus on R&D and brand building helped gain traction in PCR; d) full product range Some of the prominent OEM wins i
Slide 9: Europe Business: Premium Positioning
EUROPE BUSINESS PREMIUM POSITIONING Increasing share of UHP both in terms of quantity and value Gaining traction in segments like all season and summer segments as well OEM business* – Already supplying to Ford and Volkswagen and targeting to add few more names in FY19/ 20 Capacity ramp up at Hungar
Slide 10: Manufacturing & R&D: The Enablers
MANUFACTURING & R&D THE ENABLERS Consistent focus on manufacturing excellence and quality has helped Apollo bag new OEM contracts and carve a niche for itself in the aftermarket Technological advancements, environmental concerns and labor availability concerns have all made manufacturing more automa
Slide 11: Reinforcing Brands, Driving Profitable Growth
REINFORCING BRANDS DRIVING PROFITABLE GROWTH Continued association with football/ soccer in India and Europe Association with select global sports Icons Increased brand investments across categories and mediums (video/ digital/ print) CSR – Achieving sustainability by identifying and prioritising ke
Slide 12: CSR Initiatives: Taking a Closer Look
CSR INITIATIVES TAKING A CLOSER LOOK Social Environment Social Environment 1 ) Health Care For 2) Swachh Bharat 3) Community 4) Biodiversity Truck Drivers ‘’SPARSH’’ Development – Women Empowerment apollotyres.com 11
Slide 13: Table of Contents
TABLE OF CONTENTS Page # 1 KEY MILESTONES 4 2 APOLLO VISION 2020 6 3 MANAGEMENT AND BOARD 13 4 FINANCIAL OVERVIEW 17 5 WAY FORWARD 19 6 APPENDIX 21 apollotyres.com 12
Slide 14: Strong Experienced Board
STRONG EXPERIENCED BOARD Board of Directors Onkar S Kanwar – Chairman & Managing Director • Accomplished business professional with over four decades of experience • Served as the President of FICCI and Chairman of the Automotive Tyre Sunam Sarkar Francesco Gori Robert Steinmetz Vinod Rai Dr. S Nara
Slide 15: Seasoned Management
SEASONED MANAGEMENT Management Board Sunam Sarkar Robert Steinmetz P K Mohamed Markus Korsten Gaurav Kumar President & Chief Business Advisor Chief Advisor, R&D Chief Manufacturing Chief Financial Officer Officer Officer Onkar S Kanwar Chairman & Managing Director Satish Sharma Francesco Gori Daniel
Slide 16: Corporate Governance Awards
CORPORATE GOVERNANCE AWARDS ICSI National Award Golden Peacock Award Excellence in Corporate governance Excellence in Corporate governance A few more awards that team has won over last few years for setting industry leading benchmarks are - • Golden Peacock Award – Risk Management • ABCI Award 2017
Slide 17: Table of Contents
TABLE OF CONTENTS Page # 1 KEY MILESTONES 4 2 APOLLO VISION 2020 6 3 MANAGEMENT AND BOARD 13 4 FINANCIAL OVERVIEW 17 5 WAY FORWARD 19 6 APPENDIX 21 apollotyres.com 16
Slide 18: Financial Track Record: Consolidated
FINANCIAL TRACK RECORD CONSOLIDATED Net sales EBITDA 17.0% 15.2% 14.1% 14.1% 11.4% 20.0 11.1% 146.7 18.8 19.3 18.5 127.9 133.1 127.3 130.6 16.5 117.4 14.6 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Net sales¹ (INRbn) EBITDA² (INRbn) EBITDA² margin
Slide 19: Table of Contents
TABLE OF CONTENTS Page # 1 KEY MILESTONES 4 2 APOLLO VISION 2020 6 3 MANAGEMENT AND BOARD 13 4 FINANCIAL OVERVIEW 17 5 WAY FORWARD 19 6 APPENDIX 21 apollotyres.com 18
Slide 20: Way Forward
WAY FORWARD • Doubling of Chennai • Ramp up in Hungary • Grow presence in key Others Europe India TBR capacity will lead to improve cost markets to growth & competitiveness profitability • Increased OE • Greenfield facility in AP engagement to maintain leadership • Entry into TBR & capitalize on mar
Slide 21: Table of Contents
TABLE OF CONTENTS Page # 1 KEY MILESTONES 4 2 APOLLO VISION 2020 6 3 MANAGEMENT AND BOARD 13 4 FINANCIAL OVERVIEW 17 5 WAY FORWARD 19 6 APPENDIX 21 apollotyres.com 20
Slide 22: List of Abbreviations
LIST OF ABBREVATIONS APMEA Asia Pacific Middle East and Africa Group M&HCV Medium and Heavy Commercial Vehicles ASEAN Association of Southeast Asian Nations OEM Original Equipment Manufacturer ATMA Automotive Tyre Manufacturers’ Association OHV Off Highway Vehicle BRICS Brazil, Russia, India, China
Slide 23: Thank You
Thank You apollotyres.com 22