Tire Market – China

December 2014

2

Executive Summary

Market Overview

Drivers and Challenges

Competitive Landscape

Drivers:

Increase in Automobile Sales

Replacement Demand

Scope in Radialization

Export Demand

Availability of Low-cost Skilled Labour

Improvement in China’s Road Network

Challenges:

Barriers to Trade

Surging Costs of Raw Materials

Competition from Foreign Players

In 20--, domestic tire production in China reached x1 mn units

Chinese tire market is represented by more than x2 tire manufacturing enterprises, which contributed to nearly x3% of the global revenue from sales in 20--

The market is dominated by passenger car tires, and possesses significant capacity to produce truck tires

Chinese tires are highly in demand in overseas markets, creating strong export potential

TIRE MARKET IN CHINA 2014.PPT

Major Players

Player A Player B Player C

Player D Player E Player F

3

•Macroeconomic Indicators

•Introduction

•Market Overview

•Import and Export

•Drivers and Challenges

•Government Initiatives

•Trends

•Competitive Landscape

•Market Opportunities

•Strategic Recommendations

•Appendix

TIRE MARKET IN CHINA 2014.PPT

4

Market Overview – China (1/4)

• Domestic tire production in China reached x1 mn in 20--

It is expected to reach nearly x2 mn in 20--, growing at a CAGR of x3% between 20-- and 20--

• Tire production is concentrated along the east coast regions of China, with Shandong, Jiangsu and Zhejiang

accounting for nearly two-third of the entire output volume in the country

• Chinese tire makers are expected to put more emphasis on brand development as well as focus on exports to

support domestic production

Chinese tires are characterized by their low price, but players are now focused on improving their brand image

TIRE MARKET IN CHINA 2014.PPT

Tire Market – Size and Growth (Volume)

n1 n2

n3 n4

n5 n6

0

100

200

300

400

500

20-- 20-- 20-- 20-- 20-- 20--

units

p1

5

Drivers

Increase in Automobile Sales

Replacement Demand

Scope in Radialization

Export Demand

Availability of Low-cost Skilled Labour

Improvement in China’s Road Network

Challenges

Barriers to Trade

Surging Costs of Raw Materials

Competition from Foreign Players

Drivers and Challenges – Summary

TIRE MARKET IN CHINA 2014.PPT

6 TIRE MARKET IN CHINA 2014.PPT

Government Initiatives (-/-)

• Text

Radialization Target

Government Policies and Regulations

• Text • Text • Text

Permit Restriction

• Text

• Text

– Text

– Text

Advantage

Disadvantage

Impact on Global Players

SAMPLE

7 TIRE MARKET IN CHINA 2014.PPT

`

Emergence of Tubeless Tire

Focus on Upscale Models

Retreading of Tires Key Trends

Advent of Green Tires

Players Focusing on Radial Tires

Trends – Summary

8 TIRE MARKET IN CHINA 2014.PPT

Key People

Name Designation

Person A MD, CEO

Person B. Director

Person C Director

Person D Director

Products and Services

Company Information

Corporate Address

Company A, Street A

City B

State C

Tel No. 91 124 7239

Fax No. 91 124 4734111

Website www.company.co.in

Year of Incorporation 1767

Ticker Symbol 123456

Stock Exchange ABC

Category Products/Services

Tires

• Off-the-road tires

• Truck and bus radials

• Passenger car radial tires

• Tires for use in the military

• Tires for use in agriculture

• Tires for use in forestry

Offices and Centres – China

Headquarter

SAMPLE Public: Domestic Company – Company A (1/4)

9 TIRE MARKET IN CHINA 2014.PPT

SAMPLE Financial Snapshot Key Ratios

Financial Summary

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy) Market Capitalization (USD mn) u

Total Enterprise Value (USD mn)

v

EPS (USD) w

PE Ratio (Absolute) x

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Public: Domestic Company – Company A (2/4)

Improved Decline

Net Profit/Loss Total Income

0

5,000

10,000

15,000

20,000

-1,000

-500

0

500a

R1

USD units USD units

20--

d

R4

20--

c

R3

20--

b

R2

20--

The company incurred a net loss of USD d units in FY 20--, as compared to net loss of USD c units in FY 20-- The company reported total income of USD R4 units in FY 20--, registering an increase of m% over FY 20-- The company earned an operating margin of f% in FY 20--, an increase of g percentage points over FY 20-- The company reported debt to equity ratio of d in FY 20--, a decrease of h% over FY 20--

10 TIRE MARKET IN CHINA 2014.PPT

SAMPLE Key Business Segments Key Geographic Segments

Business Highlights

Public: Domestic Company – Company A (3/4)

0%

50%

100%

20--

Y4

X4

20--

Y3

X3

20--

Y2

X2

20--

Y1

X1 100%

50%

0%

20--

c4

a4 b4

20--

c3

a3 b3

20--

c2

a2 b2

20--

c1

a1 b1

N M L B A

Description News

Overview • Founded in 1965, Company A is located in Jiaozuo and has a total space of p1 sq. m for manufacturing

and research and development

• Company A ranks x1 among the top x2 global ranking tires

Products • Main products of the brand consist of Henan brand, Company A brand off-the-road tire, radial off-the-

road tire, truck and bus radial tire, light truck radial tire, truck and bus bias tire, military tire, among others

Recognition • Over the years, Company A has received multiple industry certifications and recognitions including ISO

9002, ISO 14001, CCC certification (China tire production compulsory certification), ISO /TS16949, among others

11 TIRE MARKET IN CHINA 2014.PPT

SAMPLE

T O

W S

Public: Domestic Company – Company A (4/4)

12 TIRE MARKET IN CHINA 2014.PPT

Recommendation 1

• Text

• Text

• Text

Recommendation 2

• Text

• Text

Strategic Recommendations (-/-)

• Focus on specific 1 due to high profitability from specific 2

SAMPLE

13

Thank you for the attention

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TIRE MARKET IN CHINA 2014.PPT