CEAT Investors Presentation

 Economic Environment  Industry Scenario  Financial Performance and Update  Product and Market Mix  Production Details  Raw Material – Price Trends  Highlights of the Year  Sri Lanka Performance  The Road Ahead Contents

 Indian GDP expected to grow by around 8.5% in FY’12.  Volatility in global energy and food prices fueling inflation the world over.  Automobile industry has registered volume growth of 27% in FY Commercial Vehicles registered highest growth rate of 33% over the previous year.  Tyre industry has registered double digit growth in FY’11. Margins are under pressure due to the steep increase in raw material prices. Economic Environment

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

Past Growth –Top 5 Top 5 : CEAT, MRF,Apollo,JK,Birla *JK Q4 figures are estimates

Company Update

Financial Performance and Update Gross Sales Less: Excise Duty Net Sales EBIDTA Depreciation Interest (Net) Exceptional Item PBT Less: Tax PAT Proposed Dividend Dividend %20%40%0 18% (all figures in ` crore) 5 years Performance

Shareholding Pattern

Net Sales Growth (Rs in crore)

Quarterly Performance Q4 Particulars Q1Q2Q3Q Gross Sales Net Sales EBIDTA Interest Depreciation Operating PBT Exceptional expense (VRS) Non-Operating Income PBT %EBIDTA %5.3% 4.7%1.5%

Lag between cost push and price hike

Sales and Market Mix – FY’11

Raw Material- Price Trend Rs/Kg RSS4 Prices as per Rubber Board Site Other RM Price derived from ICISLOR site

 Commencement of commercial production at radial facility in Halol, Gujarat, in March’11  Acquisition of global rights of CEAT brand from Pirelli, Italy for Euro 9 million  Capacity expansion by 35 MT/day at Nasik Plant  Increase in supply of 2/3 wheeler tyres from 2.00 lakh/month to 3.50 lakh/month. Highlights of the FY’11

Expansion Plans MT/day In value terms, 3 Year CAGR expected to be ~ 25% from FY10 to FY13

CEAT 2013 Scenario

CEAT- Sri Lanka FY10FY’11 Net Sales EBIDTA3840 PBT2931 PAT2123 EBIDTA %17%13% (in ` crore)

 Radial capacity at Halol Plant to ramp up to full capacity utilisation  Increased supply of 2/3 wheeler tyres from 3 lakh/month to 5 lakh/month  Raw material prices continue to be a concern  Radialisation to continue at rapid pace in Truck / Bus segment  BIS Regulation positive for the Tyre industry.  Increase in interest rates and commodity prices to impact the Automobile sector. The Road Ahead CEAT Industry

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