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JK Tyre & Industries Ltd. — Investor Presentation 2021
Oct 29, 2021
61707_rns_2021-10-29_4a1fc5fc-acf6-4c74-83fc-3479774d2ba8.pdf
Investor Presentation
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JKTIL:SECTL:SE:2021 Date:29tn October 2021
| BSE Ltd Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400 001. |
I National Stock Exchange of lndia Ltd. I Exchange Plaza, C -1, Block G, I Bandra -Kurla Complex, I Bandra (E), Mumbai -400 051, |
|---|---|
| Through: BSE Listing Centre | I Through: NEAPS |
| Scrip Code: 530007 | I Scrip Code: JKTYRE |
Dear Sir,
Re. Earnings Presentation - Q2 FY 2022
Further to our letter dated 28tn October 2021 re. lntimation of Schedule of Conference Call, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith Earnings Presentation Q2 FY 2022.
The presentation is also being posted on the website of the Company at www.jktyre,com
Thanking you,
You rs faithf u lly, For JK Tyre & lndustries Ltd.
Pawan Kumar Rustagi
Digitally signed by Pawan Kumar Rustagi Date: 2021.10.29 16:56:02 +05'30'
(PK Rustagi) Vice President (Legal) & Company Secretary
Encl: As Above

Admin. Off.: 3, Bahadur Shah Zafar Marg, New Delhi-l10 002, Fax: 91.11.23322059, Phone: 91.11.66001112,6600'l'122 i, **d. 0ff.: Jaykaygram, PO - Tyre Factory Kankroli - 313 342 (Rajasthan), Fax :02952-232018, Ph. : 02952-233400 / 233000 Website : wwwjktyre.com CIN : 167'120RJ195'l P1C045966


SUSTAINABILITY IN MOBILITY
EARNINGS PRESENTATION Q2 FY2022

Business Overview

Q2FY22 & H1FY22 Performance Review








| a |
|---|
100+ Countries of Operations around the world



Innovation at JK Tyre
- Pioneer of radial technology in India and No. 1 in Truck/Bus Radial (TBR) manufacturer
- State-of-the-art Centralized Tech Centre at Mysore "Raghupati Singhania Centre of Excellence (RPSCOE)"
- 1st company in India with OE fitment of tubeless passenger radials. Also, 1st in India to launch high performance H, V and Z-rated passenger radial tyres
- Acquired smart tyre technology start-up to revolutionise Indian tyre market – First in India to launch Tyre Pressure Monitoring System (TPMS) based on sensor technology
- Globally among the top 3 in lowest energy consumption
Global Manufacturing Platforms


12 Manufacturing Facilities with Annual Production Capacity of 5,75,000 Metric Tonnes (~32 million tyres)
| Installed Capacity (MT) |
Utilization Q2FY22 |
|
|---|---|---|
| Consolidated | 5,75,000 | 85% |
Annual Capacity by Product Line – Volumes in Million

Digital Marketing Initiatives


Extensive Distribution Network

Extensive Distribution Network
India Distribution Network
- 6,000+ Dealers
- 500 Distributors
- Tie up with 870 Fleet Operators
- Tie up with 3 Oil Marketing Companies
- 140 Sales, Service and Stocking Points
- 20 Regional Offices
Mexico Distribution Network
- 97 Dealers
- Network of 144 third party dealers/distributors
- Network of 34 Distributors for Exports
Other Geographies Network
- 76 Distributors in Middle East and South East Asia
- 61 Distributors in Africa
- 60 Distributors in North and Latin America

Expanding Footprint in India
Aggressive Network Expansion in FY21 & H1FY22
- Added 550+ dealers in H1FY22
- Tie up with Amazon online & ITC e-Choupal for rural connect
- Tie Up with Auto Portals for door-step delivery / fitment (Car Dekho | TyrePlex)



Managing Director

Director & President

A. K. Kinra Financial Advisor

Sanjeev Aggarwal CFO

Technical Director


Dr. R. Mukhopadhyay Director (R&D)

A. K. Makkar Manufacturing Director

Ashish Pandey VP–Materials

Head - International Trade

6
6
Strong R&D Capabilities

Technology – Global Tech Centre (RPSCOE):
- Centralized Tech Center in Mysore, Karnataka with more than 200 R&D and Technology Scientist and Engineers in following facilities: HASETRI - Asia's first and India's foremost highly versatile and State-of-the-art Tyre / Elastomer Institute and JK Tyre Tech Centre
- R&D efforts focused in the field of advanced materials, alternate materials, nanotechnology, process and product simulations, predictive technology, advanced tyre mechanics, etc.
- India's Biggest Anechoic chamber for Noise and Vibration Analysis capable to test all tyres including truck tyres.
- Green Technology Eco-range of tyres for cars, buses and two wheelers with ultra low rolling resistance.

R&D activities aimed at offering technologically advanced products to gain higher market share and enhanced profitability
Innovative Products Gaining Traction

TBR - JUH XF & JDH XF
- Fuel Saver Technology Design
- Low RRC & Low Noise
- High Mileage

PCR – UX Royale
- 5 Rib Asymmetric Design
- Stable Shoulder Tread Blocks
- Variable Draft Groove Technology

PCR – Levitas (UHP)
- Short Braking Distance
- High cornering stability
- Better Traction & Ride Comforts

2 wheeler - Blaze
- High Speed Stability
- Ride Comfort & Smooth Cornering
- High Mileage & Better traction


PCR – Taximax – 1Lac km. tyre
- Very High Mileage & Durability
- Superior Grip & Braking
- Unique Design for Low Noise

Farm - Shresth
- Step Lug Design & Superior Tread
- Superior Dimensions & aesthetics
- High Load Caring Capacity & Control

Smart Tyres Green Tyres
Recently acquired smart tyre technology start-up to revolutionize Indian tyre market – First in India to launch Tyre Pressure Monitoring System (TPMS) based on sensor technology
Key Features and Benefits
- Reduces fuel bills by increasing fuel efficiency
- Reduces breakdowns
- Enhances tyre life
- Enables real time mobile application based alerts for inflation & temperature breeches
- Offers real time asset tracking to avoid tyre theft

"Green tyre" technology increases fuel efficiency thereby conserving natural resources
Key Characteristics:
- Use eco-friendly materials leading to reduced emissions and increased tyre life-cycle
- Offer reduced rolling resistance (RRC) of up to 40% - today we have one of the lowest rolling resistance Tyre in supply
• No compromise in safety - globally benchmarked and certified by European test agency (ECE R117)



Key Customers



Gaining OEM footprint and volumes across segments


(The Future of Driving is here)
#FutureOfDriving I JK Smart Tyre Zindagi Ke Pahiye - Youtube Campaign
(Record hits of over 80 Million – Highest in Tyre Industry)


Revenue Mix by Market – Q2FY22





Q2FY22 & H1FY22 Performance Review




| Consolidated | Standalone | |||||
|---|---|---|---|---|---|---|
| (Rs. Crore) | Q2 FY22 | Q1 FY22 | Q2 FY21 | Q2 FY22 | Q1 FY22 | Q2 FY21 |
| Turnover | 2,998 | 2,618 | 2,286 | 2028 | 1734 | 1482 |
| EBITDA Margin |
303 10.1% |
289 11.1% |
367 16.0% |
201 9.9% |
188 10.9% |
228 15.4% |
| PBDT (Cash Profit) | 197 | 182 | 243 | 143 | 130 | 154 |
| PBT | 102 | 75 | 167 | 84 | 69 | 102 |
| PAT | 65 | 44 | 110 | 54 | 45 | 69 |
| Margin | 2.2% | 1.7% | 4.8% | 2.7% | 2.6% | 4.6% |
| EPS (Rs) | 2.70 | 1.88 | 4.26 | 2.21 | 1.81 | 2.79 |

| Consolidated | Standalone | |||||
|---|---|---|---|---|---|---|
| (Rs. Crore) | H1 FY22 | H1 FY21 | % change | H1 FY22 | H1 FY21 | % change |
| Turnover | 5,616 | 3,425 | 64% | 3,762 | 2,283 | 65% |
| EBITDA Margin |
593 10.6% |
370 10.8% |
60% (20) bps |
390 10.4% |
259 11.3% |
50% (90) bps |
| PBDT (Cash Profit) | 378 | 116 | 225% | 273 | 105 | 161% |
| PBT | 176 | (89) | 153 | (11) | ||
| PAT | 109 | (94) | 99 | (6) | ||
| Margin | 1.9% | NA | 2.6% | NA | ||
| EPS (Rs) | 4.58 | (3.81) | 4.02 | (0.24) |
H1 FY2022 Performance Highlights (Consolidated)



Target to reduce Long term Debt by 40% by FY2024

5.33x 3.32x 3.03x

• Higher net debt is due to increased working capital requirement to operate at higher level of operations
* EBDITA and Interest cost considered on TTM basis for calculation of above ratios.


Q2FY22 & H1FY22 Performance Review




Management remains fully committed to implement its strategy to further expand its market presence and gain market share








We strengthened our ESG initiatives around 5P's sustainability platform

* Conceptualized by JK Tyre

Sustainability initiatives & practices leading to resource conservation and manufacturing excellence
| Research & Development Led |
Usage of Bio sourced materials Higher usage of recycled material |
|---|---|
| Product Development Led |
Continuous improvement in RRC ( Rolling Resistance Coefficient) Continuous improvement in tyre dynamics, life and performance |
| Manufacturing Led | All plants in India awarded with "Sword of Honour" by British Safety of Council, UK for highest safety standards. GHG Emission – Reduction in Carbon footprints Energy Conservation – Global benchmark Material Conservation – Process waste reduction Raw water usage – Global benchmark Plantation and Alternate Fuel – eCO2 sequestration & Green Coal (Bamboo & Biomass) Manpower Productivity – Improved MDPT Zero Waste to landfill Single Use Plastic free |
Sustainability – Environment


Energy Consumption (GJ / Tonne)

World's Lowest energy consumption per ton of finish product, amongst top 3 globally


Source : Internal Estimates
Sustainability – Operational Efficiencies

Specific Power Consumption – Kwh / Kg

Reducing Power Consumption trend every year
Specific Steam Consumption (Kg / Kg)

Achieved the best consumption level in FY21

"Asian Manufacturing Leadership Award for Best in class Green Manufacturing"
Recognitions to our efforts

" Energy Management Award for exemplary implementation of ISO 50001 Energy Management System Standard by Clean Energy Ministerial ''

" National Water Award for Excellence in Energy and Water Management by CII ''
Corporate Social Responsibility (CSR)

| Livelihood Enhancement |
More than 1 lac people benefitted through our projects, viz., skill building, SHGs, agricultural & livestock development etc. |
|---|---|
| Education | Adult literacy programs in remote villages (over 50,000 beneficiaries), Mysuru prisoners (over 6,000), Adoption of three ITI's (over 5000 students benefitted), road safety awareness campaigns etc. Lakshmipat Singhania School in Jaykaygram, Rajasthan (more than 6,000 students in last one decade) |
| Healthcare & Sanitation |
HIV/ AIDS prevention programs, reproductive and child health care program "Parivartan", health camps & eye Camps, toilets construction under Swachh Bharat Mission . PSRI Hospital & Research Institute (Multi-speciality state-of-the-art hospital in New Delhi) |
| Water Conservation & Environment |
Construction / De-siltation of water tanks (Benefited >1 Lac farmers) & farm ponds, field bunding and plantation |
| COVID Management | Donated oxygen plant, oxygen concentrators, hospital beds, medicines, masks, PPE kits, sanitizers, food packets to hospitals, health centers, poor and needy people. |
| More than 10 Lac people have been benefitted through our CSR Initiatives. |

This presentation has been prepared by JK Tyre & Industries Limited (the "Company" or "JK Tyres") solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distributed or disseminated, directly or indirectly, in any manner. By reviewing this presentation, you agree to be bound by the trailing restrictions regarding the information disclosed in these materials.
This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the management with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements, as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, our ability to manage our international operations, government policies, regulations etc. The Company does not undertake any obligation to revise or update any forward-looking statement that may be made from time to time by or on behalf of the Company. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.
No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Such information and opinions are in all events not current after the date of this presentation. Further, past performance is not necessarily indicative of future results. Any opinions expressed in this presentation or the contents of this presentation are subject to change without notice. This presentation should not be construed as legal, tax, investment or any other advice.
None of the Company, any placement agent, promoter or any other persons that may participate in the offering of any securities of the Company shall have any responsibility or liability whatsoever for any loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith.
This presentation and its contents are confidential, and is/are only meant for consumption of its recipient, and should not be distributed, published or reproduced, in whole or part, or disclosed by recipients directly or indirectly to any other person.
This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company by any person in any jurisdiction, including in India, the United States, Australia, Canada or Japan, 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 investment decision or any contract or commitment therefore.
Securities of the Company may not be offered or sold in the United States absent registration or an applicable exemption from registration under the United States Securities Act of 1933, as amended.
This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law in India, or under any applicable law of any other Country.
| Sanjay Sharma |
Sanjeev Aggarwal, CFO |
|---|---|
| JK Tyre & Industries Ltd. | JK Tyre & Industries Ltd. |
| + 91 11 66001122 | +91 11 66001122 |
| [email protected] | [email protected] |
For further information, please contact:
