BALKRISHNA INDUSTRIES LTD

Investor Presentation - May 2021

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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 Performance Snapshot – Q4FY21

68,002 MT Rs.1,750cr Rs.558cr

Sales Volume Revenue EBITDA

+17% YOY +26% YOY +37% YOY

31.9% Rs.372cr

EBITDA margin Net Profit

+254 bps YOY +45% YOY

Achieved highest ever quarterly sales volume

All figures on Standalone basis 3

Management Commentary

The demand continues to be robust in Agriculture segment across Geographies. In

01 the other segments, demand has seen an uptick on back of increased commodity
prices, infrastructure creation and pick-up in economic activity

During FY21, the company faced multiple challenges related to raw material prices
02 and its availability. Supply chain issues was also a big challenge especially post Suez
Canal fiasco. However, a resilient BKT has been able to withstand these challenges
and emerged stronger by posting its highest ever annual sales volumes

For FY22, the company is guiding sales volume between 250,000-265,000 MT. We
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strongly believe that this demand trend is likely to continue in FY22 and years to
come; however, there may be covid 19 related softness in demand leading us to give
a wider range for annual guidance

The Board of Directors have recommended a final dividend of Rs. 5 per equity share
04 subject to shareholder approval at ensuing AGM, in addition to Rs. 12 per equity
share paid for 9MFY21. The total dividend paid will be Rs. 17 per equity share i.e.
850% of FV. FY21 Dividend payout will be ~28%

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Sales Volume Profile – FY21

In MT

+7%
227,131
211,261 Lockdown
199,213 Impact

172,419

201,760

FY17 FY18 FY19 FY20 FY21

FY22 Sales volume guidance: 250,000-265,000 MT

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 Volume Profile – FY21

Segmental Sales Channel Sales Geographical Sales

Others Others
RoW
4% 4%
13%

OEM
OTR 26%
32%

23%
50%

64%
India
70%

15%
Europe
Agriculture Americas
Replacement

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Profit & Loss
Standalone
Particulars (Rs.Cr)
Q4FY21 Q4FY20 Growth FY21 FY20 Growth
Sales (MT) 68,002 57,966 17% 227,131 201,760 13%
Revenue from Operations 1,746 1,357 5,758 4,782
Realized Gain on Foreign 4 32 -18 115
Exchange
Total Income 1,750 1,389 26% 5,740 4,898 17%
Raw Material 776 519 2,452 2,078
(Increase) / Decrease in Stock -54 86 -149 49
Employee Expenses 88 75 326 286
Other Expenses 383 302 1,302 1,104
EBITDA 558 407 37% 1,810 1,381 31%
EBITDA Margin 31.9% 29.3% 31.5% 28.2%
Other Income 20 38 119 117
Unrealized Gain / (Loss) 23 -6 18 -0
Interest & Finance Charges 2 2 10 7
Depreciation 103 98 406 368
Profit Before Tax 495 339 46% 1,531 1,123 36%
Tax 122 81 376 178
PAT 372 257 45% 1,155 945 22%
PAT Margin 21.3% 18.5% 20.1% 19.3%
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Net Forex Gain/(Loss)

Standalone

Q4FY21 Q4FY20 FY21 FY20

Particulars (Rs. Cr)
Foreign Exchange Fluctuation on Sales 4 32 -18 115

Foreign Exchange Fluctuation on Others 12 3 42 17

Total Realised Gain/(Loss) – A 16 35 24 132

Total Unrealized Gain/(Loss) - B 23 -6 18 -0

Net Forex Gain/(Loss) = A + B 38 29 42 131

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 Balance Sheet
Particulars (Rs. Cr.) Mar’21 Mar’20 Particulars (Rs. Cr.) Mar’21 Mar’20
ASSETS EQUITY AND LIABILITIES
Non-current assets 5,649 4,854 EQUITY 6,007 5,028
Property, Plant and Equipment 3,247 3,189 Equity Share Capital 39 39
Capital work-in-progress 856 586 Other Equity 5,969 4,989
Investment Property 86 86
Other Tangible Assets 1 2
Non-Current Liabilities 262 238
Financial Assets
Financial Liabilities
(i) Investments 1,026 712
(ii) Other Financial Assets (i) Borrowings 1 2
15 13
Income Tax Assets (Net) (i) Other Financial Liabilities 0 0
70 90
Other non-current assets 348 177 Provisions 25 24
Current assets 2,391 1,877 Deferred Tax Liabilities (Net) 204 178
Inventories 909 580 Other Non-Current Liabilities 33 34
Financial Assets Current liabilities 1,771 1,465
(i) Investments 392 351 Financial Liabilities
(ii) Trade Receivables 730 649 (i) Borrowings 892 859
(iii) Cash and cash equivalents 34 23 (ii) Trade Payables 633 361
(iv) Bank Balances other than (iii) above 23 22 (iii) Other Financial Liabilities 75 165
(v) Loans 4 4 Other Current Liabilities 165 75
(vi) Others 35 14 Provisions 5 4
Other Current Assets 264 232
TOTAL 8,040 6,731 TOTAL 8,040 6,731
All figures on Standalone basis 9
 Cash Flow

Particulars (Rs. Cr.) FY21 FY20

Operating profit before working capital changes 1,798 1,402

Changes in working capital -80 57

Cash generated from operations 1,719 1,459

Direct taxes paid (net of refund) and others -356 -295

Net Cash from Operating Activities 1,363 1,164

Net Cash from Investing Activities -1,159 -656

Net Cash from Financing Activities -194 -521

Net Change in cash and cash equivalents 10 -13

All figures on Standalone basis 10

Resilient Business Model

Long Term Debt Free with Cash and

Cash equivalents of Rs. 1,475 Cr as
on 31st March 2021

Diversified Product Portfolio,

Self Reliant in Carbon Black
spread across Agriculture,
along with Multiple sourcing
Industrial, Construction,
arrangements for other Raw
Earthmoving, Mining, Port, Lawn
Materials
and Garden and ATV tires

New Capex planned

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

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Capex Program of Rs. 1,900cr
▪ Debottlenecking and Brownfield expansion along with
Brownfield Tire Plant addition of balancing and ancillary equipment at Bhuj
▪ Expansion to add ~50,000 MTPA capacity; expected
completion by H2FY23
▪ Capex cost of up to Rs. 800cr ✓ Rs. 1,900cr Capex to be funded
by Internal Accrual and Debt, if
▪ Current achievable capacity at 115,000 MTPA. With
required
successful addition of new customers, carbon black
capacity is planned to be increased to 200,000 MTPA ✓ Post Brownfield capex achievable
including 30,000 MTPA of high value advanced carbon capacity of Tire Plant will stand
material and Power Plant
at 335,000 MTPA
Carbon Black and ▪ Facility will allow larger control over supply chain
Captive Power Plant while fulfilling internal demand on expanded capacity
of Tires and meeting increased demand from 3rd ✓ Embarking on new capex in
parties Carbon Black on back of Proven
▪ Capex cost of up to Rs. 650cr; expected completion quality of product coupled with
by H1FY23
strong demand for captive
consumption and 3rd parties.
▪ Modernization, automation and technology
upgradation of certain existing equipment and install ✓ Modernization capex to lead to
Modernization, automated material handling systems
Automation and better efficiency
▪ Capex to be undertaken at existing facilities at
Technology Rajasthan and Bhuj leading to improvement in
Upgradation quality and efficiency
▪ Capex cost of up to Rs. 450cr; expected to be
completed by H1FY23

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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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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 SKUs

Capacities
Achievable capacities of ~285,000 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

Self Reliant on Carbon

2019
Started Manufacturing for

2020
Black with the
large size 51” diameter tires
completion of Phase 2 at
at Bhuj
Bhuj in Gujarat

Crosses Rs. Started

2011

2018
2015
Announced
2009

Rebranding of Greenfield
1,000 cr Capex at Waluj
BKT Plant in Bhuj,
Turnover and Bhuj
Gujarat

Production of
2004
Plant in Launch of
2003

ATV, Gardening Launch of

2006

2008
and earthmoving Radial Agrimax Chopanki, Earthmax
Tires Tires Rajasthan Tires

1st Plant in Aurangabad

1987
2002

Plant in Started Production

1995

inaugurated by
Bhiwadi, of
our Founder Chairman,
Rajasthan Off-Highway Tires
Late Mr. M P Poddar

India’s Largest Off-Highway Tire Manufacturer

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BKT… at the forefront of Sustainability

• Part of electricity needs of the North India plants are being met by green
energy generated through our own wind and solar projects

• In Bhuj, the Company’s largest production site, the company has

o Planted over 100,000 trees
o Created two large water reservoirs and
o Set up a co-generation plant for self-efficiency

‘Sustainable Business Operations’ is core to our Business ethos

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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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BKT – A Strong Global Brand from INDIA

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Strengthening BKT Brand : Americas

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

BKT is the Sponsor for the “LIGUE de Football Professionel (LFP)” in France
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Strengthening BKT Brand : Europe

Premium Partner of EUROLEAGUE BASKETBALL

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Strengthening BKT Brand :
Tractor of the year (TotY) - EUROPE

Team of 26 expert journalists in agricultural mechanization, assign the Tractor of the Year (TotY)
award to the ‘Best European Tractor’
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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

Official Partner of Teams in the Cricket T20 League

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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. M S Bajaj Mr. Shogun Jain
President (Commercial) & CFO [email protected]
+91 77383 77756
www.bkt-tires.com www.sgapl.net