Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — 2002 DSP Merrill Lynch Investor Conference
26 slides from Asian Paints's conference presentation, Feb 6, 2002
Slide 1: Asian Paints (India) Limited 2002 DSP Merrill Lynch Investor Conference
1 Asian Paints (India) Limited 2002 DSP Merrill Lynch Investor Conference Cochin Mr. Ashwin Dani Vice Chairman & Managing Director February 6, 2002
Slide 2: Asian Paints - A perspective
2 asian paints - A perspective
Slide 3: Asian Paints dominates the Indian paint market
3 Asian Paints dominates the Indian paint market... Paint Revenue Share FY 01 Organised paint companies 12% 4% 3% 17% 20% 44% APIL GNP Berger ICI J & N Shalimar
Slide 4: Continuous gain in market share
4 Asian Paints (India) Limited Continuous gain in market share ... 45% 43% 41% 39% 37% 35% 33% 31% 29% 27% 25% 1988-89 1990-91 1992-93 1994-95 1996-97 1998-99 00-01 Mkt Share among top 6 major paint companies
Slide 5: Marketing at Asian Paints
5 Marketing at Asian Paints • A product for every price-value segment • Some of the most successful brands in the country – Asian Paints, Apcolite, Royale, Tractor, Utsav • 3-5 New Product introductions every year – Recent successful product launches – Apex, Ace, Asian Wall Putty
Slide 6: Asian Paints (I) Limited - CAGR
6 Asian Paints (I) Limited - CAGR 7 years 5 years 3 years Net Sales 16.86% 11.17% 14.24% PBDIT 19.69% 15.15% 17.08% PBT 20.56% 14.17% 15.76% PAT 22.56% 14.80% 16.37%
Slide 7: Asian Paints International Business
7 Asian Paints International Business
Slide 8: Asian Paints overseas ventures
8 Asian Paints overseas ventures • 9 overseas ventures with 10 manufacturing units – 5 ventures in the South Pacific region – 2 ventures in South Asia – 1 venture in Africa – 1 venture in the Middle-east
Slide 9: Financial Performance
9 Asian Paints (India) limited Financial Performance
Slide 10: Decorative BU constitutes 90% of the turnover
10 Asian Paints (India) Limited Decorative BU constitutes 90 % of the turnover FY 2001 - Segment information 7% 3% Decorative Business Unit Industrial coatings Chemicals 90%
Slide 11: Asian Paints - Q3 FY 2002
11 Asian Paints - Q3 FY 2002 • Net sales grew by 8.3 % to Rs. 9868.1 mn • PBDIT increases by 11.6 % • Profit before tax is up by 17.7 % • Net profit has increased by 12.1% to Rs. 837.4 million Significant improvement in working capital For the nine months period Apr- Dec 2001
Slide 12: Important Ratios
12 Important Ratios Apr - Dec’ 01 Apr - Dec’ 00 EBITDA /Net Sales 17.42 % 16.90 % EBITDA - OI /Net Sales 15.53 % 15.57 % EBIT / Net Sales 14.73 % 14.26 % EBT / Net Sales 13.29 % 12.23 % PAT/ Net Sales 8.49 % 8.19 %
Slide 13: Decorative Business unit
13 Asian Paints (India) limited Decorative Business unit
Slide 14: Decorative Business Unit
14 Decorative Business Unit • All product categories have shown growth in the first nine months – Exterior segment witnessed the highest growth at 35% • Product mix has changed towards the high end products – Price reductions in April, August & December – Weighted Average Selling price has increased
Slide 15: Decorative Business Unit
15 Decorative Business Unit • Price reductions effected – Due to soft raw material prices – Due to cost efficiency initiatives – To restructure competition • Margin expansion inspite of price decrease
Slide 16: New Products launched
16 New Products launched • Tractor Emulsion – Positioned as an Economy Emulsion paint – Upgradation alternative for the distemper user – Biggest product launch of the company in the last 24 months • Water Based Luxury enamel launched in few cities • Elastomeric exterior paint launched in Kerala, Mum
Slide 17: Progress on other initiatives
17 Progress on other initiatives • Asian Paints ‘Helpline’ continues to receive an enthusiastic response – The Helpline is now toll free and can be accessed at 1- 600-11-5678 • We are now able to cater to 40 locations – The Helpline is being used as the single communication point for Asian Paints Ho
Slide 18: Industrial coatings & Chemicals
18 Asian Paints (India) limited Industrial coatings & Chemicals
Slide 19: Industrial coatings
19 Industrial coatings Industrial slowdown affects demand for industrial coatings • APIL Industrial business has grown 1% by value in first nine months of the financial year – Non-Nippon business has grown by 40 % – Impressive performance by protective coatings and powder coatings business • Chemica
Slide 20: Asian Paints acquires Hawcoplast Chemicals ltd
20 Asian Paints acquires Hawcoplast Chemicals ltd • Acquired the powder coatings business of Hawcoplast Chemicals Ltd - the pioneer in powder coatings in India – Powder coatings is the fastest growing segment in industrial coatings with growth rates of 12-14%. • Price consideration is Rs. 160 millio
Slide 21: Focus to improve Shareholder value
21 Asian Paints (India) Limited Focus to improve Shareholder value
Slide 22: Improve shareholder value
22 Improve shareholder value • Increase marketshare • Maintain margins • Target ROCE of 35 % (EBIT/CE) • Control capital expenditure in next 2 financial years • Improve working capital cycle
Slide 23: Macro-indicators that will influence paint demand
23 Macro-indicators that will influence paint demand • The impetus given by the Finance minister to the housing industry will help boost paint demand • The Housing Finance segment has been recording excellent growth. This will help the paint industry in the long-run • Focus on infrastructure develop
Slide 24: Trends In The Paint Industry
24 Trends In The Paint Industry • Polarisation towards companies in the organised sector • Increased consumer involvement in the painting process • Huge opportunity in terms of upgradation in rural/economy segment • New emerging segment for high performance coatings • Improved media reach enabling b
Slide 25: Envisaging Asian Paints
25 Envisaging Asian Paints • Asian Paints would continue to shape the entire paint market • It will introduce new products and create new segments • It will continue its effort to move closer to the consumer • It will focus to become a strong player in the industrial coatings business • It will look
Slide 26: Thank you
26 Thank you "Ty asian paints’ 7 8
Asian Paints (India) — 2002 DSP Merrill Lynch Investor Conference on 6ix