BALKRISHNA INDUSTRIES LTD

Investor Presentation
February 2020
 Safe Harbor

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balkrishna
Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any
offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be
relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the
Company will be made except by means of a statutory offering document containing detailed information about the
Company.

This Presentation has been prepared by the Company based on information and data which the Company considers
reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance
shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this
Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may
consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly
excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market
opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-
looking statements are not guarantees of future performance and are subject to known and unknown risks,
uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not
limited to, the performance of the Indian economy and of the economies of various international markets, the
performance of the tire industry in India and world-wide, competition, the company’s ability to successfully
implement its strategy, the Company’s future levels of growth and expansion, technological implementation,
changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its
exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or
achievements could differ materially and adversely from results expressed in or implied by this Presentation. The
Company assumes no obligation to update any forward-looking information contained in this Presentation. Any
forward-looking statements and projections made by third parties included in this Presentation are not adopted by
the Company and the Company is not responsible for such third party statements and projections.

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Our Performance

3
9MFY20 Performance

9MFY20

Rs. 974 Cr
143,794 MT Rs. 3,508 Cr EBITDA Rs. 688 Cr
Sales Volume Revenue Margin : 27.8% PAT

Q3FY20

Rs. 369 Cr
47,321 MT Rs. 1,183 Cr EBITDA* Rs. 221 Cr
Sales Volume Revenue Margin : 31.2% PAT

Board of Directors declared a 3rd Interim Dividend of Rs. 16/- per equity share

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Sales Profile

In MT

211,261
199,213

172,419

148,244 143,794

FY16 FY17 FY18 FY19 9MFY20

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Management Commentary

The markets continue to remain challenging. However, with improving global

01 macro-economic situation and expectation of better weather conditions and
therefore our business may see better growth in FY21 compared to the current year

During last quarter, we had guided for a better volume performance in H2FY20 over
H1FY20, and we remain confident on the same. We expect to end FY20 with minor
02 de-growth on sales volumes

With our growing focus on improving our product portfolio, consistent product
03 quality, efficient service levels, better brand recognition with end customers, we
believe we will continue to gain market share across segments in the years to come

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 Profit & Loss
Standalone
Particulars (Rs. Cr)
Q3FY20 Q3FY19 YoY % 9MFY20 9MFY19 YoY % FY19
Sales (MT) 47,321 46,780 1% 143,794 155,783 -8% 211,261

Revenue from Operations 1,161 1,206 3,425 3,893 5,244

Realized Gain on Foreign Exchange 23 -9 83 88 91

Total Income 1,183 1,197 -1% 3,508 3,981 -12% 5,335

Raw Material 501 571 1,559 1,867 2,501

(Increase) / Decrease in Stock -22 -18 -38 -63 -39

Employee Expenses 71 68 210 204 264

Other Expenses 264 273 802 880 1,133

Reported EBITDA 369 303 22% 974 1,093 -11% 1,430
Reported EBITDA Margin 31.2% 25.3% 27.8% 27.5% 26.8%
Other Income # 2 -1 86 72 96
Interest & Finance Charges 2 2 5 8 10
Depreciation 95 83 270 250 333
Profit Before Tax 275 217 27% 784 907 -14% 1,183
Tax 54 72 96 310 401
PAT 221 145 52% 688 597 15% 782
PAT Margin 18.6% 12.1% 19.6% 15.0% 14.7%

# Includes Investment Income and Unrealized Gain/(Loss)

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Other Income and Net Forex Gain/(Loss)

Standalone
Particulars (Rs. Cr) Q3FY20 Q3FY19 9MFY20 9MFY19
Exchange Difference Gain (Realized) 28 2 97 102
Exchange Difference Gain (Un-Realized) -22 -34 6 8
Others 24 33 80 64
Total Other Income 30 1 182 174

Standalone

Particulars (Rs. Cr) Q3FY20 Q3FY19 9MFY20 9MFY19

Foreign Exchange Fluctuation on Sales 23 -9 83 88

Foreign Exchange Fluctuation on Others 5 11 14 15

Total Realised Gain/(Loss) – A 28 2 97 102

Total Unrealized Gain/(Loss) - B -22 -34 6 8

Net Forex Gain/(Loss) = A + B 6 -32 103 110

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 Balance Sheet
Particulars (Rs. Cr.) Sep’19 Mar’19 Particulars (Rs. Cr.) Sep’19 Mar’19
ASSETS EQUITY AND LIABILITIES
Non-current assets 4,430 3,994 EQUITY 5,017 4,679
Property, Plant and Equipment 2,983 2,707 Equity Share Capital 39 39
Capital work-in-progress 506 585 Other Equity 4,979 4,640
Investment Property 87 77
Other Tangible Assets 3 2
Non-Current Liabilities 278 369
Financial Assets
Financial Liabilities
(i) Investments 495 320
(ii) Other Financial Assets (i) Borrowings 2 2
13 10
Income Tax Assets (Net) (i) Other Financial Liabilities 8 7
98 96
Other non-current assets 247 197 Provisions 22 17
Current assets 2,063 2,435 Deferred Tax Liabilities (Net) 217 326
Inventories 641 713 Other Non-Current Liabilities 30 16
Financial Assets Current liabilities 1,197 1,382
(i) Investments 660 763 Financial Liabilities
(ii) Trade Receivables 509 568 (i) Borrowings 669 827
(iii) Cash and cash equivalents 26 36 (ii) Trade Payables 327 357
(iv) Bank Balances other than (iii) above 19 19 (iii) Other Financial Liabilities 78 56
(v) Loans 5 5 Other Current Liabilities 116 135
(vi) Others 28 57 Provisions 8 8
Other Current Assets 174 273
TOTAL 6,493 6,430 TOTAL 6,493 6,430
All figures on Standalone basis 9
 Healthy Cash holdings

Rs. Cr

1,204
1,131 11
66
-280 61
-118 333

Mar-16 H1FY17 H2FY17 H1FY18 H2FY18 FY19 9MFY20 Current Cash

Holdings

Zero Long Term Debt

All figures on Standalone basis 10

BKT 2.0: Embarking on next Phase of Growth

03 0
02
01
Carbon Black Plant Replacement of Waluj Capex at Bhuj Plant
Plant
Commenced Production of New state of the art fully Upscaling to large sized All
Phase 1 of Carbon Black integrated facility at a capex steel radial OTR Tires by
project of 60,000 MT p.a. of approximately Rs. 500 investing in new capacity of
crores to replace a very old 5,000 MT p.a. Additionally
Phase 2 with capacity of existing plant to enhance building Warehouse and
80,000 MT p.a. to be productivity Mixing Plant at Bhuj in
commissioned in FY21 Gujarat. Total capex of up to
Rs. 500 crores

India Capex Plan is progressing as per schedule

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Strategy at BKT

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Our Focus Area

Market Reach
Expand reach within existing Sales Channels as
well increase footprint within replacement
segment and OEMs
01 Penetrate Americas
Increase share of business in USA markets by increasing
02 supplies from India

Product portfolio expansion

03 Expand the product portfolio by adding large sized tires
and strengthen relationship with Customer base

04 Indian Markets
Strengthen our distribution channels within Indian
Markets
05
Utilization
Reach 100% utilization levels at Bhuj Plant in the next
few years

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To Serve Global OEMs…

The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only
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With India Production and Global Sales

Waluj,
Maharashtra

Bhiwadi,
Rajasthan

Chopanki,
Rajasthan Our
plants India – Our
Bhuj,
Gujarat Manufacturing base

Mould plant,
Dombivali

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BKT – A Strong Indian Brand

Click here for BKT Corporate Video

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Balkrishna Industries – A Snapshot
Leading ‘Off-Highway Tire” Exporter
BKT is India’s Leading player in the Global ‘Off Highway Tire (OHT)’ Market

Wide and comprehensive product portfolio

Deep understanding of OHT market has led to capabilities to
manufacture over 2,700 SKU

Capacities
Current Achievable capacities of ~300,000 M.T.P.A

Global reach
Sales to over 160 countries through Distribution network in
Americas, Europe, India and Rest of the World

Strong OEM Presence

Strong Partnerships with Global OEM’s a testimony of our Brand
Acceptance & Performance

Experienced Management Team

Experienced Management Teams across business divisions and verticals

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 Our Strong Evolution

2018
Announced Capex for

2019
Started Manufacturing for large size
Replacement of Waluj Plant,
51” diameter tires at Bhuj.
capex at Bhuj Plant

Plant in

2015
2009
Crosses Rs. Plant in

2006
Chopanki, 1,000 cr Bhuj,
Rajasthan Turnover Gujarat

Production of
2002
Started Production Plant in
1995

2004
2003
of Bhiwadi, ATV, Gardening Launch of
Off-Highway Tires Rajasthan and earthmoving Radial Agrimax
Tires Tires
1987

Foundation Year
with 1st Plant in
Aurangabad India’s Largest Off-Highway Tire Manufacturer

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 Awards and Accolades

BKT Earthmax SR 45 M has been awarded the

best OTR tire at Hevea Awards for the Tyre BKT received award from John Deere
Industry, 2019 at Enterprise Supply Management for
Motortec Automechanika, Spain achieving Excellence
(Partner Level Performance)

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 Application of our Tires
Agriculture Tires

Cotton Pick Harvester Tractor Vineyard Tractor Pivot Irrigator

Industrial Tires

Loader Telehandler Mobile Crane

OTR Tires

Load Haul Dump Underground Mining Container Handler

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Strengthening BKT Brand : USA

BKT is the Official and Exclusive Tire manufacturer of MONSTER JAM and its
fleet of Monster Trucks – Monster Jam is a top sporting event in America
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Strengthening BKT Brand : Canada

BKT Continental Cup – Curling: BKT is the Title Sponsor of Continental Cup
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Strengthening BKT Brand : Italy, Europe

BKT is the new Title Sponsor for the ITALIAN SERIE ‘B’ FOOTBALL
CHAMPIONSHIP – THE NEWBORN - “SERIE BKT”
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Strengthening BKT Brand : Spain, Europe

BKT is the New Official Global Partner for the Spanish Football League
“La Liga”
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Strengthening BKT Brand : France, Europe

BKT is the New TITLE Sponsor for the FRENCH Football League
“COUPE DE LA LIGUE BKT”
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Strengthening BKT Brand : Australia

BKT is the Official “OFF-HIGHWAY TIRE PARTNER” for

KFC BIG BASH LEAGUE (THE AUSTRALIAN CRICKET LEAGUE)
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Strengthening BKT Brand : India

Supporting Kabbadi by becoming the official Tire Partner for 8 marquee

Teams in Pro Kabbadi League
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Strengthening BKT Brand : India

OFF-HIGHWAY TIRE PARTNER

FOR THE ‘TAMIL NADU
PREMIER LEAGUE’ (TNPL) FOR
T-20 CRICKET

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Strengthening BKT Brand : Sunny Deol
our Brand Ambassador

Popular Bollywood Icon Sunny Deol is the Brand Ambassador of BKT

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For further information, please contact:

Company : Investor Relations Advisors :

Balkrishna Industries Ltd. Strategic Growth Advisors Pvt. Ltd.

CIN - L99999MH1961PLC012185 CIN - U74140MH2010PTC204285
Mr. B K Bansal, Director - Finance Mr. Shogun Jain / Ms. Payal Dave
bkbansal@bkt-tires.com shogun.jain@sgapl.net / payal.dave@sgapl.net
+91 77383 77756 / +91 98199 16314
www.bkt-tires.com www.sgapl.net