CEAT Investors

Presentation Third Quarter,

FY2011-12

Economic Environment

Industry Scenario – Market share & Growth Trend

Company Update

Sri Lanka Performance

CEAT : Q3 highlights

Con

ten

ts

Global Economic crisis to impact Indian Economy.

The overall sales growth rate recorded by Automobile Sector for April-December 2011 was 12.5% as compared to the corresponding period last year.

Passenger Vehicles grew marginally at 0.5%, Commercial Vehicles segment registered growth of 19.3 %, 2-3 Wheelers sales recorded de-growth of (-) 0.07% during April-December 2011 over same period last year.

Volatility in Fx Rates during the quarter. INR/USD rates depreciated by 8.5% during the quarter.

Economic Environment

MRF27%

APOLLO19%

JK16%

CEAT12%

BIRLA11%

Others15%

Industry Size FY 11 ~ Rs.30,000 cr.Top 5 contribute to 85% of sales

Industry Scenario

Industry Growth –Top 5

2006-07

2007-08

2008-09

2009-10

2010-11

5000

10000

15000

20000

25000

30000

13423 1482917017

20532

30000

Net Sales Rs in crs

Trailing CAGR 18.5%

Top 5 : CEAT, MRF,Apollo,JK,Birla

Company Update

Financial Performance and Update

2010-11 2009-10 2008-09 2007-08 2006-07Gross Sales 3752 2990 2611 2603 2391

Less: Excise Duty 283 182 245 273 256

Net Sales 3469 2808 2366 2330 2135

EBIDTA 141 306 48 205 150

Depreciation 34 27 31 33 31

Interest (Net) 66 40 54 54 58

Exceptional Item 8 0 0 -80 0

PBT 33 239 -37 198 61

Less: Tax 11 78 -21 49 22

PAT 22 161 -16 149 39

Proposed Dividend 8 16 0  16 10

Dividend % 20% 40% 0 40% 18%

(all figures in crores)

5 years Performance

Shareholding Pattern

Promoters; 51.3%

Financial Institution; 14.3%

Corporate Bodies; 7.3%

FII; 1.8%

Others; 25.3%

Net Sales Growth

2006-07 2007-08 2008-09 2009-10 2010-110

500

1000

1500

2000

2500

3000

3500

2135 2330 2366

2808

3469

CAGR - 12.9%

Net

Sale

s

(all figures in crore)

Quarterly Performance

9 months Particulars

Q1 Q2 Q3 9 months10-11 11-12 11-12 11-12 11-12

2695.1 Gross Sales 1160.8 1191.8 1129.8 3482.42490.6 Net Sales 1072.5 1104.7 1048.0 3225.3126.3 EBIDTA -9.4 61.1 60.2 112.043.1 Interest (net) 34.2 35.9 38.1 108.224.4 Depreciation 15.7 17.2 18.8 51.758.8 Operating PBT -59.2 8.0 3.3 -48.07.8 Exceptional expense (VRS) 3.2 - - -0.2 Non-Operating Income 0.4 0.3 0.2 0.9

51.2 PBT -62.0 8.3 3.5 -50.25.07% EBIDTA % -0.87% 5.52% 5.74% 3.47%

2.05% PBT % -0.05% 0.75% 0.33%-1.5%

(all figures in crore)

Sales and Market Mix – Q3 FY11-12

Sales Mix - MTMarket Mix - MT

Truck Bias; 45%

Truck Radial; 8%2/3 Whl;

13%

LCV; 8%

Car/UV Radials;

6%

Car/UV Bias; 1%

Speciality; 8%

Tractor; 7%

Others; 5%

Re-place-ment; 63%

OEM; 16%

Exports; 21%

Raw material and Selling price Index

Q3 '11 Q4 '11 Q1'12 Q2'12 Q3'12

100

111

123120

123

100104

112 118

123

RM Price hike

Raw Material- Price Trend Rs/Kg

RSS4 Prices as per Rubber Board Site Other RM Price derived from ICISLOR site

Dec,1

0

Jan,

11

Feb,

11

March

,11

April,

11

May,1

1

June

,11

July

,11

Aug-1

1

Sep-

11

Oct-1

1

Nov-1

1

Dec-1

1150

170

190

210

230

250

270

Natural Rubber

Per Kg

Dec,1

0

Jan,

11

Feb,

11

March

,11

April,

11

May,1

1

June

,11

July

,11

Aug-1

1

Sep-

11

Oct-1

1

Nov-1

1

Dec-1

1150

170

190

210

230

250

PBR

Per Kg

Dec,1

0

Jan,

11

Feb,

11

Mar

c...

April,

11

May

,11

June

,11

July

,11

Aug-1

1

Sep-

11

Oct-1

1

Nov-1

1

Dec-1

1150

170

190

210

230

250 SBR

Per Kg

Dec,1

0

Jan,

11

Feb,

11

Marc...

April,

11

May,1

1

June

,11

July

,11

Aug-1

1

Sep-

11

Oct-1

1

Nov-1

1

Dec-1

1240

260

280

300

320

340Nylon Cord

Per Kg

CEAT- Sri Lanka

 Q1

10-11Q2

10-11Q3

10-119M

10-11Q1

11-12Q2

11-12Q3

11-129M

11-12Net

Sales 70.9 90.5 97.7 259.1 79.2 107.1 111.0 297.4

EBIDTA 9.3 12.9 13.5 35.7 6.7 11.9 15.1 33.7

PBT 7.4 10.5 10.3 28.2 4.2 8.5 11.4 24.1

  PAT 7.4 7.0 5.9 20.3 3.3 5.2 8.7 17.2EBIDTA

% 13.1% 14.2% 13.8% 13.8% 8.5% 11.0% 13.6% 11.4%

PBT% 10.4% 11.6% 10.5% 10.9% 5.3% 7.9% 10.2% 8.1%

(Rs in crore)

Average capacity utilisation at Halol Plant was at 50%.

No adverse impact due to fluctuations in Fx rates.

CEAT: Q3 Highlights

CEAT

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