Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Enam Conference, Mumbai, November 2009
38 slides from Asian Paints's conference presentation, Nov 17, 2009
Slide 1: Enam Conference, Mumbai, November 17, 2009
Enam 2020 Conference Mumbai November 17, 2009
Slide 2: The Asian Paints Group Today
The Asian Paints Group Today… India’s largest paint company for four decades Operates in 18 countries with 26 paint manufacturing facilities Group revenue of Rs. 5,463 crores in FY 09
Slide 3: Business Operations – Consolidated
Business Operations – Consolidated Paints India Sales Contribution FY 2008-09 Decorative Coatings – India Industrial Coatings – India 17.3% APL – Industrial 4.6% APL - Paints APPG 1.6% Chemicals APICL APPG * + APICL International 76.5% Chemicals India International Operations * 50% of APPG considere
Slide 4: Decorative Coatings - India
Decorative Coatings - India Strong presence throughout the country across all product segments Introduced many innovative concept in the Indian paint industry like Small packs Exterior segment Home Solutions (painting solution service) Colour Next (prediction of Colour Trends through in-depth resear
Slide 5: Industrial Coatings - India
Industrial Coatings - India Asian Paints participates in the Industrial Coatings segment directly, through a 50:50 JV with PPG Inc. of US as well as through a 100% subsidiary The Auto segment is catered through our JV (APPG) Second largest supplier to the auto segment in India Now, the largest playe
Slide 6: Chemicals
Chemicals Asian Paints also manufactures Phthalic Anhydride (PAN) and Pentaerythritol PAN is manufactured in Gujarat and Penta in Tamil Nadu More than 50% consumed internally Chemicals business contributes 1.6 % to the group’s consolidated revenue Its contribution to the group’s revenue has been con
Slide 7: International Operations
International Operations Contributes 17.3% to the group turnover Began by establishing presence in Fiji in 1978 Presence in 17 countries spread over 5 regions Middle East Caribbean South Pacific Islands South Asia South East Asia Among top three in all markets in Decorative paints, except in South E
Slide 8: The Indian Paints Market
The Indian Paints Market The Indian Paint Industry is Gross Revenue Share FY 08-09 around Rs. 15,000 cr Top 4 paint companies Decorative: Industrial split of 17% 11% 75:25 Top 4 players constitute more 17% than 60% of the market Rest of the market is highly 55% fragmented with nearly 35% being in th
Slide 9: Environment – H1 FY 2009-10
Environment – H1 FY 2009-10 Indian Economy performs better than expected Retail demand good in many categories – FMCG, Durables, Automotive etc. Growth a challenge in the Industrial and Automotive paints segment Material prices stayed low in spite of increase in crude. However there are signs of inc
Slide 10: Presentation structure
Presentation structure Performance: Q2 & H1 FY 2009-10 Review of Business Units Outlook and Risks
Slide 11: Sales Performance Q2 FY 2009-10
Sales Performance Q2 FY 2009-10 Demand conditions remain buoyant in Q2 35% 29.3% 30.2% 30% 25.4% 25% 20% 17.5% 16.8% 15% 12.0% 10% 5% 0% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr FY 09 FY 09 FY 09 FY 09 FY 10 FY 10 Consolidated Sales Growth Consolidated sales grew by 16.8% in value terms Stand
Slide 12: Profit Performance Q2 FY 2009-10
Profit Performance Q2 FY 2009-10 Improved PBT margins in Q2 over corresponding period last year Consolidated PBT increased by 91.5% Other Income of Rs. 62.7 crores on account of sale of long term investment Paint Segment EBIT Margins (Excluding this growth of 60.2%) 25% 22.0% PBT growth aided by low
Slide 13: Sales Performance H1 FY 2009-10
Sales Performance H1 FY 2009-10 Robust growth Consolidated sales grew by 17.1% for H1 2009-10 in value terms Standalone sales grew by 17.8% Paints revenue grew by 18.8% Growth continues to be a challenge in the Industrial and Automotive paints segment Almost all subsidiaries in the International Ope
Slide 14: Profit Performance H1 FY 2009-10
Profit Performance H1 FY 2009-10 Consolidated PAT after Minority Interest shows a increase of 87.0% 100% 91.5% 80% Consolidated PBT shows a increase 64.3% 60% of 79.3% for H1 FY10 40% Excluding the profit on sale of long 20% 10.3% term investment, PBT growth is 62.0% 0% 3rd Qtr 4th Qtr 1st Qtr 2nd Q
Slide 15: Dividend
Dividend Interim dividend of Rs. 8.50 per share for FY 2009-10 In FY 2008-09 Interim dividend of Rs. 6.5 per share Total dividend of Rs. 17.5 per share Payout ratio 54.19%
Slide 16: Presentation structure
Presentation structure Performance : Q2 & H1 FY 2009-10 Review of Business Units Outlook and Risks
Slide 17: Review of Business Units
Review of Business Units Decorative Business - India Industrial Operations - India International Operations
Slide 18: Decoratives Business - India
Decoratives Business - India Demand Conditions Varying across geographies Retail demand has been good but not uniform across the country Excellent performance in the East Project Sales still affected by slowdown in builder segment although some signs of pick-up in September
Slide 19: Decoratives Business - India
Decoratives Business - India Material prices Material prices stayed low in spite of increase in crude. However there are signs of increase in Q III. Material price index of 91.69 in Q2 against 91.43 in Q1. Price index for H1 stood at 91.50 Strengthening of the Rupee offset by higher crude prices Ret
Slide 20: Decoratives Business - India
Decoratives Business - India Supply chain Initiatives Rohtak plant work is progressing well and is likely to be commissioned in April 2010 with an initial capacity of 1,50,000 KL Distribution Center project activities at Sriperumbudur plant nearing completion Land for the 7th paint plant in Maharash
Slide 21: Review of Business Units
Review of Business Units Decorative Business - India Industrial Operations - India International Operations
Slide 22: Industrial Operations
Industrial Operations Growth – a challenge Demand conditions continue to remain tight in the Industrial Liquid Paints and powder coating segments due to deferral of capex spends Sales of automotive JV (APPG) better than expected on account of Improvement in passenger car builds Refinish business doi
Slide 23: Review of Business Units
Review of Business Units Decorative Business - India Industrial Operations - India International Operations
Slide 24: International Operations
International Operations Almost all subsidiaries in the BU were impacted by global slowdown & challenging market conditions South Asia and Middle East regions performed well Marginal volume growth of 2% Net sales value growth at 17% Growth adjusted for exchange rate impact was at 5%. (Rs. crs) Value
Slide 25: International Operations
International Operations Material costs significantly lower at an overall level compared to last year because of the globally reduced prices of crude and other commodities leading to improved margins EBIT has grown by 59% Growth adjusted for exchange rate impact was at 35.5%. Focus on consolidating
Slide 26: Presentation structure
Presentation structure Performance : Q2 & H1 FY 2009-10 Review of Business Units Outlook and Risks
Slide 27: Outlook and Risks
Outlook and Risks GDP growth in India could surpass earlier estimates of about 6% Global growth trend key to a sustainable high growth in India Agricultural GDP might be adversely impacted due to poor rains, however extent of negative impact expected to be cushioned by robust industrial growth This
Slide 28: Outlook and Risks
Outlook and Risks Indian Operations Decorative paint demand conditions look good Material prices inching upwards – could lead to margin contraction Current margins at an all time high - not sustainable Growth a challenge in the Industrial and Automotive paints segment Market yet to recover because o
Slide 29: Outlook and Risks
Outlook and Risks International Operations Despite policy stimuli, economic responses remain uncertain Situation in Caribbean remains unpredictable owing to the poor state of the economy Project pipeline drying up in Middle East including Egypt South Asia expected to see good growth Sri Lankan econo
Slide 30: Disclaimer
Disclaimer This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views being expre
Slide 31: Thank you
Thank you... asianpaints
Slide 32: Annexure
Annexure asianpaints
Slide 33: Consolidated P&L – Q2 FY2009-10
Consolidated P&L – Q2 FY2009-10
Slide 34: Standalone P&L – Q2 FY2009-10
Standalone P&L – Q2 FY2009-10
Slide 35: Consolidated P&L – H1 FY2009-10
Consolidated P&L –H1 FY2009-10
Slide 36: Standalone P&L : H1 FY2009-10
Standalone P&L : H1 FY2009-10
Slide 37: Consolidated Sales breakup : H1 FY2009-10
Consolidated Sales breakup : H1 FY2009-10 * 50 % of Asian PPG Industries sales are included
Slide 38: Key Ratios
Key Ratios Standalone Consolidated H1 09-10 —H1 08-09) H1 09-10 H1 08-09 Mat cost/Net Sales 55.2% 60.2% 56.5% 60.8% PBDIT/ Net Sales 20.5% 15.0% 17.6% 12.8% PBT before Exceptional itern/ Net Sales 23.1% 15.1% 20.4% 13.3% PAT before Exceptional item / Net Sales 16.6% 10.1% 13.9% 6.7% asianpaints
Asian Paints — Enam Conference, Mumbai, November 2009 on 6ix