INVESTOR PRESENTATION JUNE 2017 Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by JK Tyre & 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. This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company. 2 OUR BOARD • Dr. Raghupati Singhania • Arvind Singh Mewar • Bakul Jain • Sunanda Singhania • Kalpataru Tripathy • Shreekant Somany • Vimal Bhandari • Dr. Wolfgang Holzbach • Bharat Hari Singhania (Managing Director) • Anshuman Singhania (Whole-time Director) • Arun K. Bajoria (Director & President – International Dr. Raghupati Singhania Operations) Chairman & Managing Director 3 MANAGEMENT TEAM Arun K. Bajoria Director & President – V.K. Misra A.K. Kinra International Operations Technical Director Finance Director Vikram Malhotra Dr. R.Mukhopadhyay A.K. Makkar Kumar Joshi Marketing Director Director (R&D) Manufacturing Executive Director – JK TORNEL Director Anshuman Singhania Sanjiv Saxena Ashish Pandey Whole-time Director VP- Corporate Accounts VP- Materials 4 Indian Tyre Industry - Overview Revenue Segmentation Indian Tyre Industry – over ` 50000 Crs. (US $ 8 Bn) Global Tyre Industry Others, 14% Truck & Bus, Commercial Tyre segment (Truck/Bus & LCVs) 28% Passenger Car/Light • About 75% (by value) of total tyre market Truck, 58% Exports to over 100 countries Indian Tyre Industry Others, 23% Truck & Radialisation Bus, 55% Passenger Car/Light - Car tyres – over 98% Truck, 22% - Truck tyres – 46% (OEM - 68%) For Jan-Mar’17 Qtr. Domestic - 47% OEM - 74% 3 / 4 top Indian players dominate the market 5 India – GDP Growth 15.0 13.0 11.0 Projected Actual GDP Growth (%) GDP Growth 9.0 7.9 7.8 7.3 7.1 7.6 6.9 7.0 5.1 5.0 3.0 2016-17 2017-18 2017-18 2012-13 2013-14 2014-15 2015-16 (Exp) (Proj) (Proj) GDP growth 5.1 6.9 7.3 7.9 7.1 7.6 7.8 Decline in GDP due to demonetization but India growth story to continue 6 Truck & Bus Radialisation In India Radialisation (%) 90 82 Radialisation will 80 80 75 be driven by : Actual 72 68 69 70 73 61 • Cost - Benefit Ratio 60 66 51 57 • Road Development 50 42 50 40 46 Expected 34 34 44 • Overload Control 30 25 33 • User Education 20 26 22 19 17 10 6 • Retreading 11 8 Infrastructure 0 2015-16 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2016-17 2017-18 2018-19 2019-20 2020-21 2008-09 For Jan-Mar’17 Qtr. Domestic - 47% Domestic OEM - 74% OEM …Radialisation Will Drive Indian Tyre Industry Growth… 7 JK Tyre - Overview Pioneer of Radial Technology in India Consolidated Growth India’s No. 1 Truck/Bus Radial (TBR) manufacturer, (Five –year CAGR) Market Share -30% approx. Revenue 2% 10% up for FY17 over FY16 EBITDA 29% Global Brands Gross Block 19% Ranked 24th largest tyre manufacturing company 12 Manufacturing Plants Total Capacity – 33 Mn. Tyres p.a. Manufacturing excellence with Large Talent pool of about 15000 employees world class consistent quality 1st in Asia to receive ISO 50001 certification for JK Tyre become first tyre energy management, and 2nd in the world company in India to have verified Carbon Footprint 1st company in India to commission India’s as per IS -14064 biggest & foremost research centre - HASETRI 8 JK TYRE –Outperforms Industry On basis of Volume Figures in % 2016-17 Industry JK Tyre* A. Growth 7 8 B. Truck 46 55 Radialisation C. Truck Bus Radial 8 17 Growth [(*) – Including CIL ] 9 JK Tyre – The Growth Journey Set up Major Incorporated Started All second tyre New OTR brownfield as a Private Steel Truck plant at Plant in expansion Limited radial Banmore, Mysore undertaken company Mysore MP in Chennai 2013 1951 1975 1991 1997 1999 2008 2010 2012 2016 & 2014 First Tyre Acquired Acquired Acquired New plant in plant Vikrant Tyres Tornel plant Cavendish Chennai in Kankroli, Ltd., Mysore in Mexico Industries Rajasthan 10 JK TYRE – Radial Leaders of India Truck Bus Radial FY 2016-17 Leadership - No.1 position in Truck/Bus Others Radials JK Tyre, /Imports, 31% 26% Ceat, 4% About 13 million JK Tyre TBRs on the roads Birla, 2% MRF, Apollo, (On basis of Domestic Sales 13% 24% Nos.) (%) Truck Radialisation catching up Fast Particulars 13-14 14-15 15-16 16-17 Jan’17-Mar’17 Qtr- 47% Total (Domestic) 26 33 44 46 OEM 51 61 72 68 OEMs driving Radialisation in Truck & Bus Jan’17-Mar’17 Qtr- 74% (%) Particulars 13-14 14-15 15-16 16-17 JK Tyre's Major Shift in Sales from Bias to Bias 54 48 42 39 Radial 46 52 58 61 Radial (On Basis of Total sales Value) (%) Particulars 13-14 14-15 15-16 16-17 JK Tyre -Major shift in Truck Tyre mix Bias 56 51 42 39 (On Basis of Domestic Sales Value) Radial 44 49 58 61 11 Key Competitive Strengths Manufacturing Highest TBR Market Excellence Share Extensive Continuous Distribution Innovation Network Strong OEM R& D Focus Presence Cost Strong presence Competitive across globe 12 Strategic Manufacturing Locations - India Uttarakhand Rajasthan Madhya Pradesh JK Tyre has 9 modern plants in India - strategically located at: - Kankroli, Rajasthan -1 - Banmore, Madhya Pradesh -1 - Mysore, Karnataka -3 Karnataka - Chennai, Tamil Nadu -1 - Laksar (Haridwar), Uttarakhand. - 3 Tamil Nadu 13 JK Tyre – Wide Product Range Industrial & Farm Specialty PCR Truck / Bus 2/3 Bias wheeler Balanced Product Truck / Portfolio Bus OTR Radial LCV / SCV Racing Bias LCV Military / Radial Defense 14 JK Tyre produces India’s Largest OTR Tyre Size : 40.00-57 VEM 045 Weight : 3700 Kg Height : 12 feet 15 JK Tyre – Distribution and Service Network 141 JK Tyre Selling Points 4000 Dealers across India – 1000 exclusive 30 JK Tyre Truck 230 JK Tyre Steel Wheels Over 1000 Wheels Exclusive Passenger Car Tyre Retailing Fleet Management Fully equipped Truck Tyre Direct Partnership with Fleet service centre Owners For enhancing customer experience by offering Total Tyre Solution 11 Xpress Wheels for Small Towns & Semi Urban Markets Also caters to 2/3 wheeler - As on 31.3.17 16 JK Tyre - Total Solution : For Fleet acquisition Fleet Truck Wheels CRM Retread Expert Management Expert Expert Expert Expert Total Products Expert Associations Relationship Life Tyre Care services 17 JK Tyre - Key Partners to Leading OEMs... Maruti Mahindra India/Mexico x X x JK Tornel, Mexico JK Tornel, Mexico - LTR India/Mexico 18 JK Tyre – Quality Excellence Journey 2017 ISMS ISO 27001:2013 – HO & ERP NABL 17025/2005- Main Laboratory – 5 locations 2015 SA 8000|:2008 ISO 27001:2013 NABL 17025:2005 ISO 14064 TPM Consistency Award-VTP GRI-4 (Sustainability Reporting ) 2013 OHSAS 18001:2007- CTP ISO 14001:2004 - CTP EnMs ISO-50001 - CTP, VTP CII GreenCo Rating - KTP 2012 EnMs ISO-50001-KTP TS 16949:2009 LOC CTP 2010 TPM Consistency Award 2015” by Japan Institute TPM of Plant Management (JIPM) – JK Tyre & 2003 ISO 9000-2000 Industries Limited, Vikrant Tyre Plant, Mysuru. TS-16949 2001 EFQM Commendation 1999 ISO 14001 1994 ISO 9001 & QS -9000 19 Brand Building – Racing The legend of Racing in India JK Tyre acquired Formula BMW Series Rechristened “JK Racing Asia Series” (JKRAS) Created history in Indian Motorsport First Indian company to acquire an FIA (Fédération Internationalede l'Automobile) accredited series 20 JK Tornel, Mexico – a Strategic Acquisition Low cost acquisition of additional capacity Free access to NAFTA & other trade blocks Enlarge JK Tyre’s global footprint North America and emerging Latin America markets 21 JK Tornel - Mexico Capacity : Product range Significantly improved operation in • Passenger Car Radial last 9 years through : 8.0 Mn Tyres p.a. • Truck Radial (outsourced) • Tornel awarded ‘Outstanding Quality Award winner’ by Chrysler No of Plants : • Light Truck Radial • Truck Bias • Enhanced capacity utilisation (40% to 70%) 3 plants in Mexico (Azcapotzalco, • Light Truck Bias • Improved Plant efficiencies Tultitlan &Hidalgo) • Farm Tyres • Enhanced market share across all products Present Market • Industrial Tyres Share: • Awarded “ Superbrand”, 2015 • Truck Bias : 91% Entered OEM Ist time Financials Mn `/Crs.