CEAT Investors

Presentation First Quarter,

FY2011-12

Economic Environment

Industry Scenario – Market share & Past Growth

Company Update – Financial Performance – 5 yearsShareholding PatternNet Sales growthQuarterly PerformanceSales and Market Mix

Raw Material – Cost-Sales price Lag, Price Trend

Sri Lanka Performance

The Road AheadCon

ten

ts

Indian GDP growth expected to be around 7.5 % - 8.0% in FY’12.

Volatility in global energy and food prices fueling inflation the world over.

Automobile industry has registered volume growth of 17% for Q1 Fy11-12 as compared to 26% last year.

Growth of Automobile Industry during the Current Year revised to 11% -13% from 16% - 17%. Increase in Interest Rates to impact the Automobile Industry.

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

Past 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 ` crore)

5 years Performance

Shareholding Pattern

Promoters, 49.20%

Mutual Fund / UTI;

6.37%

Insurance Co; 11.33%

FII / Bank, 1.88%

Public; 31.22%

Net Sales Growth (Rs in crore)

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

Quarterly Performance

Q4

Particulars

Q1 Q1

10-11 11-12 10-111056.5 Gross Sales 1161 838.2

978.2 Net Sales 1073 772.2

14.6 EBIDTA -9.30 40.9

22.9 Interest 34.2 12.0

9.8 Depreciation 15.7 8.1

-18.1 Operating PBT -59.3 20.9

Exceptional expense (VRS) 3.2

0.2 Non-Operating Income 0.4 0.1

-17.9 PBT -62.0 21.0

1.5% EBIDTA % -0.86% 5.30%

Sales and Market Mix – Q1 FY11-12

Repl 68%

OEM; 14%

Exports; 18%

Market Mix

Based on Value

Truck Bias; 50%

2-3 wheelers; 13%

LCV; 10%

Car / UV radial; 5%

Truck Radial; 4%

Speciality; 7%Tractor; 8%

Others; 3%

Sales Mix

Lag between cost push and price hike

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

100

106107

119

131

100104 105

109

117

RM Price hike

Raw Material- Price Trend Rs/Kg

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

June

,10

July,10

Aug,10

Sept

,10

Oct,1

0

Nov,10

Dec,10

Jan,11

Feb,11

March

,11

April,

11

May,11

June

,11

100120140160180200220240

SBR

June

,10

July

,10

Aug,1

0

Sept

,10

Oct,1

0

Nov,1

0

Dec,1

0

Jan,

11

Feb,

11

March

,11

April,

11

May,1

1

June

,11

50

54

58

62

66

70

Chart Title

June

,10

July,10

Aug,10

Sept

,10

Oct,1

0

Nov,10

Dec,10

Jan,11

Feb,11

March

,11

April,

11

May,11

June

,11

130

150

170

190

210

230

250

PBR

June

,10

Aug,10

Oct,1

0

Dec,10

Feb,11

April,

11

June

,11

140160180200220240260280300

Natural Rubber

NR per Kg LocalNR per Kg Imp

CEAT- Sri Lanka

  Q1 FY’10-11 Q1 FY’11-12

Net Sales 70.9 79.2

EBIDTA 9.3 6.7

PBT 7.4 4.2

  PAT 7.4 3.3

EBIDTA % 13.1% 8.5%

(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 expected to stabilise Radialisation to continue at rapid pace in Truck /

Bus segment Increase in interest rates and commodity prices to

impact the Automobile sector.

The Road Ahead

CEAT

Industry

THANK YOU