#1ELECTO BXT PUD CARTE BALKRISHNA INDUSTRIES LTD Investor Presentation - August 2020 BKT GROWING TOGETHER#2Safe Harbor BKT GROWING TOGETHER 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. 2#3BKT GROWING TOGETHER Q1FY21 Performance Snapshot Sales Volumes 38,096 MT for Q1FY21 Revenue Rs. 942 Cr for Q1FY21 EBITDA Rs. 251 Cr EBITDA in Q1FY21 with margin of 26.7% PAT Rs. 122 Cr for Q1FY21 with a margin of 12.9% Board of Directors have declared an Interim Dividend of Rs. 3 per equity share All figures on Standalone basis 3#4Management Commentary 01 BKT GROWING TOGETHER Inspite of the impact of Covid-19, our Q1FY21 has been a good quarter for us. The pick- up in sales volumes in May and June led to a total sales volume of 38,096 MT in Q1FY21. The monthly run rate is gaining momentum and is very visible in July and August 02 The demand is strong in Agriculture segment across Geographies reinforcing our belief on the potential of this segment as well as the brand positioning of BKT in end markets which is continuously helping us to gain market share 03 The Non-Agriculture segment is moving slow, on-account of low commodity prices and end user demand however, we expect gradual uptick as economic activity increases across the globe 4#5BKT Operating with increased Safety Measures GROWING TOGETHER Employee Safety ✓ Encouraging employees to adopt to general principles of social distancing, health and safety of self and society at large. ✓ Launched interactive sessions for the wellbeing of employees Liquidity Management ✓ Financial prudence ✓ Each Cost Line item reviewed and actioned to optimize cost & resource utilization Engagement with stakeholders ✓ Continuous engagement with internal and external stakeholders through online meetings ✓ Facilitated Work From Home (WFH) to all employees except blue collar and field force teams Customer Management ✓ Enhancing customer relationships through regular interactions ✓ Closely monitoring business impact 5#6Sales Volume Profile In MT 148,244 8.01% 211,261 199,213 Lockdown Impact 172,419 BKT GROWING TOGETHER 201,760 38,096 FY16 FY17 FY18 FY19 FY20 Q1FY21 Despite low production and Sales Volume in April 2020, we remain confident to achieve similar Sales volumes in FY21 as we achieved in FY20 16#7Resilient Business Model Long Term Debt Free with Cash and Cash equivalents of Rs. 1,175 crs as 30th June 2020 Diversified Product Portfolio, spread across Agriculture, Industrial, Construction and mining tires O OOOOOO Capex ready BKT GROWING TOGETHER Self Reliant in Carbon Black along with Multiple sourcing arrangements for other Raw Materials BKT has built a resilient business model and is confident to withstand the near term challenges to emerge stronger with a higher global market share 7#8Profit & Loss Standalone Particulars (Rs.Cr) Q1FY21 Q1FY20 FY20 FY19 Sales (MT) 38,096 51,304 201,760 211,261 Revenue from Operations 929 1,193 4,782 5,245 Realized Gain on Foreign Exchange 13 24 115 91 Total Income 942 1,217 4,898 5,335 Raw Material 420 552 2,078 2,501 (Increase) Decrease in Stock -53 23 49 -39 Employee Expenses 70 70 286 264 Other Expenses 254 277 1,104 1,179 EBITDA 251 296 1,381 1,430 EBITDA Margin 26.7% 24.3% 28.2% 26.8% Other Income # 13 44 117 96 Interest & Finance Charges 2 2 7 10 Depreciation 100 84 368 333 Profit Before Tax 162 254 1,123 1,183 Tax 40 78 178 401 PAT 122 176 945 782 PAT Margin 12.9% 14.5% 19.3% 14.7% # Includes Investment Income and Unrealized Gain/(Loss) BKT GROWING TOGETHER 8#9Other Income and Net Forex Gain/(Loss) Standalone Particulars (Rs. Cr) Q1FY21 Q1FY20 FY20 FY19 Exchange Difference Gain (Realized) 21 28 132 118 Exchange Difference Gain (Un-Realized) -29 14 -0 10 Others 41 29 117 86 Total Other Income 33 72 249 214 BKT GROWING TOGETHER Standalone Particulars (Rs. Cr) Q1FY21 Q1FY20 FY20 FY19 Foreign Exchange Fluctuation on Sales 13 24 115 91 Foreign Exchange Fluctuation on Others 8 4 17 27 Total Realised Gain/(Loss) - A 21 28 132 118 Foreign Exchange Fluctuation on Non Derivative Items -29 14 -0 10 Total Unrealized Gain/(Loss) - B -29 14 -0 10 Net Forex Gain/(Loss) = A + B -8 42 131 128 9#10Balance Sheet BKT GROWING TOGETHER Particulars (Rs. Cr.) Mar'20 Mar'19 Particulars (Rs. Cr.) Mar' 20 Mar'19 ASSETS EQUITY AND LIABILITIES Non-current assets 4,854 3,994 EQUITY 5,028 4,679 Property, Plant and Equipment 3,189 2,707 Equity Share Capital 39 39 Capital work-in-progress 586 585 Other Equity 4,989 4,640 Investment Property 86 77 Other Tangible Assets 1 2 Non-Current Liabilities 476 369 Financial Assets Financial Liabilities (i) Investments 712 320 (ii) Other Financial Assets (i) Borrowings 2 2 13 10 Income Tax Assets (Net) 90 96 (i) Other Financial Liabilities 0 7 Other non-current assets 178 197 Provisions 24 17 Current assets Inventories Financial Assets 1,877 2,435 Deferred Tax Liabilities (Net) 178 326 580 713 Other Non-Current Liabilities 34 16 Current liabilities 1,465 1,382 (i) Investments 351 763 Financial Liabilities (ii) Trade Receivables 649 568 (i) Borrowings 859 827 (iii) Cash and cash equivalents 23 36 (ii) Trade Payables 361 356 (iv) Bank Balances other than (iii) above 22 19 (iii) Other Financial Liabilities 165 56 (v) Loans Other Current Liabilities 4 5 75 135 (vi) Others 14 57 Provisions 4 8 Other Current Assets 232 273 TOTAL 6,731 6,430 TOTAL All figures on Standalone basis 6,731 6,430 10#11Strong Balance Sheet performance in FY18 to FY20... Future Ready BKT GROWING TOGETHER Cash Accruals of Rs. 3,500cr Capex Spends to the tune of Rs.2,000cr from Internal Accruals Repaid Debt undertaken for Capex in Bhuj Long Term Debt Free FY18 to FY20 Distributed over Rs. 800cr Dividends Balance Sheet Cash and Cash equivalents of Rs. 1,086cr In Current unprecedented times, a Strong Balance Sheet helps substantially reduce any negative impact on Business All figures on Standalone basis 11#12BKT 2.0: Continuing the next Phase of Growth BKT GROWING TOGETHER 01 02 Replacement of Waluj Plant New state of the art fully integrated facility at a capex of approximately Rs. 500 crores to replace a very old existing plant to enhance productivity Capex at Bhuj Plant Upscaling to large sized All steel radial OTR Tires by investing in new capacity of 5,000 MT p.a. Additionally Warehouse building Mixing Plant at Bhuj in Gujarat. Total capex of up to Rs. 500 crores and Capex programs of the company are broadly on track, however the completion will depend on the COVID-19 situation which is changing rapidly 12#13Strategy at BKT Snow Ride BKT GROWING TOGETHER BKT GROWING TOGETHER 13#14Our Focus Area BKT GROWING TOGETHER 01 05 02 03 04 Market Reach Expand reach within existing Sales Channels as well increase footprint within replacement segment and OEMs Penetrate Americas Increase share of business in USA markets by increasing supplies from India Product portfolio expansion Expand the product portfolio by adding large sized tires and strengthen relationship with Customer base Indian Markets Strengthen our distribution channels within Indian Markets Utilization Reach 100% utilization levels at Bhuj Plant in the next few years 14#15'Atmanirbhar' BKT - Our Pledge FROM INDIA FOR INDIA BE INDIAN... BUY INDIAN श्री BKT GROWING TOGETHER We pledge to fulfil the vision of self-reliance by continuing to manufacture in India for domestic consumption and global markets Our focus will be on improving our product portfolio, sustaining the consistent product quality and efficient service levels, thus enhancing the brand recognition with end customers MAKE IN INDIR VOCAL FOR LOCAL BKT GROWING TOGETHER Make in India is going to provide an impetus to the self-reliant India serving the local and global markets thereby, enhancing the Brand equity of Indian Manufacturers 15#16To Serve Global OEMs... CASE III AGRICULTURE NEW HOLLAND AGRICULTURE JOHN DEERE SAME DEUTZ FAHR CLAAS BKT GROWING TOGETHER AGCO Your Agriculture Company Türk Traktör HTONIO CARRARO HORSCH Tractor people WIRTGEN GROUP HAMM KubotaⓇ Farming with Passion FERRARI CAT SAKAI JCB GOLDONI GREAVES SINCE 1A59 TEREX® TAFE KALMAR CARGOTEC MASTERS OF COMPACTION The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only 16#17With India Production and Global Sales BKT GROWING TOGETHER Waluj, Maharashtra Bhiwadi, Rajasthan Chopanki, Rajasthan Our plants Bhuj, Gujarat Mould plant, Dombivali India - Our Manufacturing base 17#18BKT GROWING TOGETHER 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 BKT GROWING TOGETHER Capacities Achievable capacities of ~300,000 M.T.P.A M 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 18#19Our Strong Evolution Plant in Chopanki, Rajasthan Self Reliant on Carbon Black with the completion of Phase 2 at Bhuj in Gujarat Crosses Rs. 1,000 cr Turnover 2006 1995 1987 Started Production of Off-Highway Tires Foundation Year with 1st Plant in Aurangabad 2009 2002 Plant in Bhiwadi, Rajasthan 2020 BKT GROWING TOGETHER Started Manufacturing for large size 51" diameter tires at Bhuj Started Greenfield Plant in Bhuj, Gujarat 2019 Announced Capex at Waluj and Bhuj 2015 2003 Production of ATV, Gardening and earthmoving Tires 2004 2018 Launch of Radial Agrimax Tires India's Largest Off-Highway Tire Manufacturer 19#20Awards and Accolades MEJOR NEUMÁTICO DE OTR BKT BKT Earthmax SR 45 M 2019 Premios HEVEA JOHN DEERE BKT GROWING TOGETHER Achieving Excellence In Recognition of Partner-level Performance 2019 Balkrishna Industries Presented by John Deere Enterprise Supply Management BKT Earthmax SR 45 M has been awarded the best OTR tire at Hevea Awards for the Tyre Industry, 2019 at Motortec Automechanika, Spain BKT received award from John Deere Enterprise Supply Management for achieving Excellence (Partner Level Performance) 20 20#21OTR Tires Industrial Tires Agriculture Tires Application of our Tires 10 Cotton Pick Harvester Tractor BKT GROWING TOGETHER Vineyard Tractor Pivot Irrigator Loader Telehandler Mobile Crane Load Haul Dump Underground Mining Container Handler 21#22BKT - A Strong Indian Brand BKT GROWING TOGETHER 222#23Strengthening BKT Brand: USA BKT GROWING TOGETHER MONSTER JAM TRIPLE HREAT SERIES Jam.com GRAVE DIGGER BKT BKT BKT BKT 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 23#24BKT GROWING TOGETHER Strengthening BKT Brand: Canada OKTIRE BKT CONTINENTAL CUP LONDON 2020 4:28 OKTIRE BKT TOK TIRE EKT CONNE TAL Service E CUP NDO 020 TIDET OKTIRE Team Europe's Silvana Tirinzoni gets ready for takeoff. BKT Continental Cup - Curling: BKT is the Title Sponsor of Continental Cup 224#25Strengthening BKT Brand: Italy, Europe BKT GROWING TOGETHER } Serie BKT Serie BKT VERKT porta in Campe BKT is the new Title Sponsor for the ITALIAN SERIE 'B' FOOTBALL CHAMPIONSHIP - THE NEWBORN - "SERIE BKT" 25 25#26Strengthening BKT Brand: Spain, Europe BKT GROWING TOGETHER 11 JUNIO 2020 #VolverEsGanar Rakuter Fly mirates ARATHON BET PlusSDE 03 o LaLiga Santander BKT OFFICIAL GLOBAL PARTNER LaLiga Sel BKT is the New Official Global Partner for the Spanish Football League “La Liga" 26 26#27Strengthening BKT Brand: France, Europe BKT GROWING TOGETHER COUPE DE LALIQUE BKT BANZA 23 CKT RADOVANOW BKT LA LIGUE OU #GROWINGTOGETHER COUPE DE gettyimages LA LIGUE BKT BKT is the New TITLE Sponsor for the FRENCH Football League "COUPE DE LA LIGUE BKT" 22 27#28Strengthening BKT Brand: Australia KFC BBL BKT GROWING TOGETHER WORE HAY TIRE OF KF BKT BKT GROWING TOGETHER TIRE OF THE BL BKT GROWING TOGETHER BKT is the Official "OFF-HIGHWAY TIRE PARTNER" for KFC BIG BASH LEAGUE (THE AUSTRALIAN CRICKET LEAGUE) 28#29Strengthening BKT Brand: India कबड्डी के अनेक रंग, BKT टायर जोड़े सबको संग. bkt-tires.com BABANG GUJARAT FORTUNEGIANTS PATNA PIRATES NDIGO MUMBA FORCE TAMIL THALAIVAS STEELERS HARYANA PALTAN PARTNER BKT GROWING TOGETHER TOOH UP BKT GROWING TOGETHER Supporting Kabbadi by becoming the official Tire Partner for 8 marquee Teams in Pro Kabbadi League 29 29#30SANKAR CEMENT TNPL MIFFON Strengthening BKT Brand: India क्रिकेट के अनेक रंग, BKT टायर जोड़े सबको संग BKT GROWING TOGETHER OFF-HIGHWAY TIRE PARTNER BKT GROWING TOGETHER OFF-HIGHWAY TIRE PARTNER FOR THE 'TAMIL NADU PREMIER LEAGUE' (TNPL) FOR T-20 CRICKET 30 30#31Strengthening BKT Brand: Sunny Deol our Brand Ambassador FIRE FOL NOLLA C देश की धरती से जुड़ा BKT GROWING TOGETHER खेत की मिट्टी पर जम के चले बी. के. टी टायर BKT GROWING TOGETHER E: [email protected] .bkt-tires.com B Popular Bollywood Icon Sunny Deol is the Brand Ambassador of BKT 31#32BKT GROWING TOGETHER Acting Together... Doing our Part Protecting Employees Supporting Communities TOGETHER Supporting Medical staff At plants 000 Standard Operating Procedures (SOP) introduced to support partial re-opening and safe working environment. Sanitization of all work places including transprtation vehicles At Offices Standard Operating Procedures (SOP) introduced to support partial re-opening and safe working environment 60,000+ food grains packages which would suffice a family of 4 for 15 days distributed in various regions of India 5 lacs+ meals distributed in India in collaboration with NGO Akshaya Patra and other organizations 4 lacs+ masks distributed under the #BKTTakeAStepChallenge project 3,000+ counter shields distributed to tire dealers Support for the NGOS CESVI in Italy and Samaritan's Purse in the USA 55,000+ protection personal equipment (PPE) distributed to medical staff 12 hemodynamic monitors donated to the Tata Memorial Hospital in Mumbai 15,000+ Doctor Scrub Suits distributed to various hospitals 1 lac+ disposable bed sheets distributed to various hospitals 32#33BKT stands for... Growing Together BKT GROWING TOGETHER BKT GROWING TOGETHER TOGETHER WE WILL FIGHT COVID 19 CSR Film: BKT supports Society in its bid to fight Covid-19 33 33#34People are our most valuable asset. #staysafe For further information, please contact: Company : BKT GROWING TOGETHER Balkrishna Industries Ltd. CIN L99999MH1961PLC012185 Mr. B K Bansal, Director - Finance [email protected] www.bkt-tires.com Investor Relations Advisors : SGA Strategic Growth Advisors Strategic Growth Advisors Pvt. Ltd. CIN U74140MH2010PTC204285 Mr. Shogun Jain / Ms. Payal Dave [email protected] / [email protected] +91 77383 77756 / +91 98199 16314 www.sgapl.net BKT GROWING TOGETHER