#1August'22 BALKRISHNA INDUSTRIES LTD Investor Presentation 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 YEARS OF GROWTH#4Performance Snapshot - Q1FY23 BKT GROWING TOGETHER Sales Volume Revenue 83,153 MT Rs 2,726 cr All Figures on Standalone basis EBITDA Margin 20.1% Net Profit Rs. 320 cr Declared 1st Interim Dividend of Rs. 4/- per equity share EBITDA Rs 547 cr 4#5Management Commentary BKT GROWING Raw Material prices have remained at elevated levels. In the current quarter. Raw material costs have come at 46.6% of sales versus 42.8% in Q1FY22 and 45.3% in Q4FY22. We expect some relief to come in Q4FY23 We continue to grapple with high logistics costs. In the current quarter, the logistics Icosts have come at 14.2% of sales versus 7.1% in Q1FY22 and 13.8% in Q4FY22. We expect relief in logistics costs towards the end of Q3/early Q4 We continue to see a sustained uptick in demand for BKT tires. However, in Q2 we expect sluggish demand given macro challenges in Europe coupled with Heatwaves and inflationary trends in USA Our continued focus on customer servicing especially in the last 2 years, since the start of the pandemic, gives us the confidence to outperform the competition Sales Volume guidance for FY23 stands at 320,000 330,000 MT TOGETHER 5#6Capex Status Brownfield Tire Plant at Bhuj ■ Commissioned the 50,000 MTPA brownfield tire plant at Bhuj ◉ Expect complete ramp-up in production in H2FY23 ☐ Project Capex Cost - Rs. 800cr BKT GROWING TOGETHER Carbon Black and Captive Power Plant Expect commissioning for 55,000 MTPA Carbon Black capacity along with Power Plant during Q3FY23 ■ The Project of advanced carbon material for 30,000 MTPA will be commissioned in Q4FY23 Project Capex cost - Rs. 650cr Modernization, Automation and Technology Upgradation ◉ Capex on Track Expect completion by end H1FY23 Project Capex cost - Rs. 450cr The achievable capacity by end of FY23 will be 360,000 MT p.a CO 6#7Sales Volume Profile - Q1FY23 In MT +10% 2,27,131 2,11,261 1,99,213 2,01,760 FY18 FY19 All Figures on Standalone basis FY20 FY21 FY23 Guidance: 320,000 MT - 330,000 MT BKT GROWING TOGETHER 2,88,795 83,153 FY22 Q1FY23 7#8Volume Profile Segmental Sales 3.2% 32.8% Q1FY23 64.0% 27.8% Channel Sales 2.4% Q1FY23 BKT GROWING TOGETHER Geographical Sales 9.6% 21.2% Q1FY23 49.7% 69.8% 19.6% Agriculture OTR Others Replacement OEM Others Europe Americas India ROW All Figures on Standalone basis 8#9Profit & Loss BKT GROWING TOGETHER Standalone Particulars (Rs in Cr) Q1FY23 Q1FY22 YOY Q4FY22 YOY FY22 Sales (MT) 83,153 68,606 21% 77,119 8% 288,795 Revenue from Operations 2,646 1,813 2,374 8,267 Realized Gain on Foreign Exchange 80 15 58 152 Total Income 2,726 1,828 49% 2,432 12% 8,419 Raw Material (Increase) / Decrease in Stock Employee Expenses Other Expenses EBITDA Margin Other Income Unrealized Gain / (Loss) Interest & Finance Charges Depreciation 1,400 880 1,144 4,034 -131 -98 -42 -255 107 94 90 380 803 417 663 2,078 EBITDA 547 535 2% 576 -5% 2,182 20.1% 29.2% 23.7% 25.9% -15 40 52 185 26 17 -21 39 3 2 2 8 126 104 117 444 Profit Before Tax 429 485 -12% 488 -12% 1,954 Tax 109 153 115 544 Profit After Tax 320 331 -3% 374 -14% 1,411 11.7% 18.1% 15.4% 16.8% PAT Margin All Figures on Standalone basis 9#10Net Forex Gain/(Loss) BKT GROWING TOGETHER Particulars (Rs in Cr) Q1FY23 Q1FY22 FY22 FY21 Foreign Exchange Fluctuation on Sales 80 15 152 -18 Foreign Exchange Fluctuation on Others 11 7 55 42 Total Realised Gain/(Loss) - A 91 22 207 24 Total Unrealized Gain/(Loss) - B 26 17 39 18 Net Forex Gain/(Loss) = A + B 117 38 246 42 All Figures on Standalone basis 10#11Balance Sheet BKT GROWING TOGETHER Particulars (Rs. Cr.) Mar' 22 Mar' 21 Particulars (Rs. Cr.) Mar'22 Mar' 21 ASSETS EQUITY AND LIABILITIES Non-current assets 7,054 5,652 EQUITY Property, Plant and Equipment 3,906 3,247 Equity Share Capital Capital work-in-progress 1,258 856 Other Equity 6,925 6,007 39 39 6,886 5,969 Investment Property 79 86 Other Tangible Assets 0 1 Non-Current Liabilities 807 262 Financial Assets Financial Liabilities (i) Investments 1,213 1,026 (i)Borrowings 501 1 (ii) Other Financial Assets 83 18 (i)Other Financial Liabilities 0 0 Income Tax Assets (Net) 8 70 Provisions 24 25 Other non-current assets 506 348 Deferred Tax Liabilities (Net) 251 204 Current assets 3,803 2,389 Other Non-Current Liabilities 31 33 Inventories 1,639 909 Current liabilities 3,126 1,771 Financial Assets Financial Liabilities (i)Investments 685 392 (i) Borrowings 1,942 893 (ii) Trade Receivables 1,098 730 (ii) Trade Payables 808 633 (iii) Cash and cash equivalents 29 34 (iii) Other Financial Liabilities 120 74 (iv) Bank Balances other than (iii) above 6 20 Other Current Liabilities 251 165 (v) Loans 3 4 Provisions 4 5 (vi) Others 65 35 Other Current Assets 277 264 TOTAL 10,857 8,040 TOTAL 10,857 8,040 All Figures on Standalone basis 11#12Resilient Business Model 24R20.3 BKT GROWING TOGETHER Gross Cash and Cash equivalents of Rs. 1,972 Cr as on 30th June, 2022 Diversified Product Portfolio, spread across Agriculture, Industrial, Construction, Earthmoving, Mining, Port, Lawn and Garden and ATV tires Self Reliant in Carbon Black along with Multiple sourcing arrangements for other Raw Materials Ongoing Capex DDDDDD 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 12#13Strategy at BKT BKT GROWING TOGETHER A LONG WAY TOGETHER 000 BKT GROWING TOGETHER 13#14Our Focus Area BKT GROWING TOGETHER Expand reach within existing Sales Channels as well increase footprint within replacement segment and OEMs Expand the product portfolio by adding large sized tires and strengthen relationship with Customer base Reach 100% utilization levels at Bhuj Plant in the next few years + Market Reach Penetrate Americas + Product portfolio expansion + Indian Markets + Utilization Increase share of business in USA markets by increasing supplies from India Strengthen our distribution channels within Indian Markets 14#15To Serve Global OEMs... CASE ADRIGUATURE NEW HOLLAND AGRICULTURE JOHN DEERE BKT GROWING TOGETHER AGCO SAME Your Agriculture Company DEUTZ FAHR CLAAS Türk Traktör HTONIO CARRARO 30 Tractor people SAKAI KubotaⓇ HORSCH MASTERS OF COMPACTION Farming with Passion GREAVES SINCE 1859 WIRTGEN CROUP HAMM 0 JCB FERRARI GOLDONI CAT KALMAR TAFE TEREX® CARGOTEC The Brand Names and logos mentioned are the property of their respective owners and are used here for identification purposes only 15#16BKT GROWING TOGETHER With India Production and Global Sales BKT Waluj, Maharashtra Bhiwadi, Rajasthan Chopanki, Rajasthan India Our Manufacturing base Bhuj, Gujarat Mould plant, Dombivali sel, sel Note - Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness 16#17Balkrishna Industries - A Snapshot BKT GROWING TOGETHER 01 BKT GROWING TOGETHER Leading 'Off-Highway Tire" Exporter BKT is India's Leading player in the Global 'Off Highway Tire (OHT)' Market 02 Wide and comprehensive product portfolio Deep understanding of OHT market has led to capabilities to manufacture over 3,200 SKUs 03 Capacities Achievable Capacity at end of FY23 will be 360,000 M.T.P.A. 04 Global reach Sales to over 160 countries through Distribution network in Americas, Europe, India and Rest of the World 05 Strong OEM Presence Strong Partnerships with Global OEM's a testimony of our Brand Acceptance & Performance 06 Experienced Management Team Experienced Management Teams across business divisions and verticals 17#18Our Strong Evolution 1987 1995 1st Plant in Aurangabad inaugurated by our Founder Chairman, Late Mr. M P Poddar 2011 Started Production of Off-Highway Tires 2009 BKT GROWING TOGETHER 2002 2003 Plant in Bhiwadi, Rajasthan 2008 Production of ATV, Gardening and earthmoving Tires 2006 2004 Rebranding of BKT Crosses Rs. 1,000 cr Turnover Launch of Earthmax Tires Plant in Chopanki, Rajasthan Launch of Radial Agrimax Tires 2015 Started Greenfield Plant in Bhuj, Gujarat 2018 Announced Capex at Waluj and Bhuj 2020 2021 2022 Self Reliant on Carbon Black with the completion of Phase 2 at Bhuj in Gujarat Commercialized new replacement plant at Waluj (Waluj 2) with capacity of 30,000 MTPA Commercialized brownfield tire plant at Bhuj with capacity of 50,000 MTPA India's Largest Off-Highway Tire Manufacturer 18#19Business Practices Driving our Long-Term Sustainability Energy Efficiency To ensure energy efficiency Initiated use of 'Green Energy' - installing 5MW windmills and 2 MW solar power plants for our greenfield projects • • Environment BKT GROWING TOGETHER Waste Management Controlled emissions through electrostatic precipitators in boilers and discharge through appropriate effluent treatment plants Replacing existing coal fired boilers with 'gas fired boilers Planted approximately 1,00,000 trees in and around Bhuj plant • Implemented disciplined waste management system for systematic collection of scrap and safe storage/disposal and re-use of wastes Promoted industrial recycling of waste like reclaim rubber, crumb powder and rubberised friction compound 19#20BKT GROWING TOGETHER Outcomes of our Sustainability Process BKT Key Performance Future Targets • Zero Liquid Discharge (ZLD) High-yield ratio between material input & output with 99% efficiency leading to minimal process 1:1 • Green House Gas (GHG) emissions • Waste reduction Proportion of recyclable raw materials wrt the total raw materials used • 2.5% Consumptions reduction • Green energy Waste reduction over the past three years 14.9% Reduction in consumption of natural resources like water and coal over the last four years 12-18% Recognitions BKT plants have been achieving 'Energy Conservation Award' by both the State & Central Government every year BKT-Bhuj has been awarded 'National Water Excellence Management Award' by CII 20#21Promoting Education, Health & Rural Development 9/89 BKT GROWING TOGETHER Our Endeavour is to improve the lives of children and adults, and our mission is to ensure health with dignity to every underprivileged children and adult 21#22BKT - A Strong Global Brand from INDIA BKT GROWING TOGETHER 22#23Strengthening BKT Brand: Americas BKT GROWING TOGETHER MONSTER MONSTER MONSTER MONSTER MONSTER OFFICIAL TIRE OF MONSTER JAM OFFICIAL TIRE OF MONSTER JAM BKT BKT MONSTER WAM AMERICA'S BEST CONTACTS EYEGLASSES AM! CONT 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#24Strengthening BKT Brand: Canada BKT BKT BKT BKT BKT GROWING TOGETHER BKT GROWING TOGETHER AKAD BKT Continental Cup - Curling: BKT is the Title Sponsor of Continental Cup BKT GROWING TOGETHER 24 24#25BKT GROWING TOGETHER Strengthening BKT Brand: Spain, Europe BKT 11 JUNIO 2020 #VolverEsGanar Rakuter FIV mirates MARATHON LaLiga Santander BKT OFFICIAL GLOBAL PARTNER LaLiga BKT is the Official Global Partner for the Spanish Football League "La Liga" 25#26Strengthening BKT Brand: Italy, Europe Serie BKT M BKT GROWING TOGETHER 9* Giornata #CREFRO AE An Serie KT BKT Ca porta in Camps BKT is the Title Sponsor for the ITALIAN SERIE 'B' FOOTBALL CHAMPIONSHIP - THE NEWBORN - "SERIE BKT" 26#27Strengthening BKT Brand: France, Europe betway 16 BKT ListosP BKT GROWING TOGETHER O LIGUE 2 BKT BKT is the Sponsor for the "LIGUE de Football Professionel (LFP)" in France 27#28Strengthening BKT Brand: France, Europe BKT GROWING TOGETHER HUGHT WORLD CUP TRAMS JEA BKT GROWING TOGETHER HULAY WORLD CUP FRAMES 3001 BKT GROWING TOGETHER WORLD CUP HANCE 3023 BKT GROWING TOORTHER KT SING TOGETHE WORLD CUP BKT GROWING TOGETHER RUCAT WORLD CUP FRANCE HALS BKT GROBING TOGET WORLD CUP FRANCE 2013 B GROW BKT RING TOGETHER FARURI WO KT OGETHER WORLD FRANCE TOL BKT wowwa TOGETHER WORLD CUP FRANCE MES CUP BKT GROWING TOGETHER T THER WORLD CUP RUGBY WORLD CUP FRANCE 2023 WORLD CUP FRANCE SOUS BK GROWING TOG BKT WING TOGETHER WILAY WORL T GETHER LD-CL BKT GROWING TOGETHER WORL FRANCE T WORLD CUP GETHER OFFICIAL TIRE BKT Is Official Tire Supplier for Rugby World Cup France 2023 28#29Strengthening BKT Brand: EUROPE 5:26 5:26 18 18 FAL POUR TURKISH AIRLINES #WeAreAllOneTeam KA K BKT ATION BKT GROWING TOGETHER TURKISH AIRLINES =VTB Assi Sani AX E adidas ARMANI EXCHANGE FRAGRA Premium Partner of EUROLEAGUE BASKETBALL 29 20#30BKT GROWING TOGETHER Strengthening BKT Brand: Tractor of the year (TotY) - EUROPE TOR OF THE TOTY YEAR 2027 SPONSORED BY BKT GROWING TOGETHER Team of 26 expert journalists in agricultural mechanization, assign the Tractor of the Year (TotY) award to the 'Best European Tractor' 30#31Strengthening BKT Brand: Australia net 77 inel SKT CKET KFC 72 BKT SKT SKT SKY BKT BKT GROWING TOGETHER BBL BKT GROWING TOGETHER OFFICIAL OFF-HIGHWAY TIRE PARTNER OF THE KFC BBL BKT is the Official "OFF-HIGHWAY TIRE PARTNER" for KFC BIG BASH LEAGUE (THE AUSTRALIAN CRICKET LEAGUE) 31#32Strengthening BKT Brand: India PUNJAB KINGS MUMBAI SUNRISERS INDIANS HYDERABAD RS RAJASTHAN ROYALS BKT GROWING TOGETHER DELHI CAPITALS GUJARAT TITANS Official Partner of Teams in the Cricket T20 League for Season 14 The Brand Names and logos mentioned are the property of their respective owners and are used here for identification purposes only KOLKATA Knight Riders BANGALOR ROYAL CHALLENGERS 32#33Strengthening BKT Brand: India BKT BKT GROWING TOGETHER Ranveer Singh is now the Brand Ambassador of BKT 33#34BKT GROWING TOGETHER Thank You Company BKT GROWING TOGETHER Balkrishna Industries Ltd. CIN L99999MH1961PLC012185 Mr. M S. Bajaj Senior President (Commercial) & CFO [email protected] www.bkt-tires.com Investor Relations Advisor SGA Strategic Growth Advisors Strategic Growth Advisors Pvt. Ltd. CIN U74140MH2010PTC204285 Mr. Shogun Jain [email protected] +91 77383 77756 www.sgapl.net All images, texts and graphics contained in this document are the copyright of BKT. Permission to print hard copies of this material and to share it with interested people is granted unless otherwise provided by the Author of the document. It is forbidden to extract parts of the presentation without the express consent of the author. Balkrishna Industries Limited (BKT) cannot be held responsible for any incorrect data contained in this document. Any other form of reproduction, electronic or otherwise, as well as the application of any changes, partially or entirely, to images, texts, graphs and data is strictly prohibited without prior written permission from BKT. Balkrishna Industries Limited (BKT) reserves itself the right to alter any details contained in the document without prior notice.