Havells India Limited · NSE:HAVELLS

Havells India — Emkay Investor Relation Presentation London (May 2014)

15 slides from Havells India's conference presentation, May 2014

  1. Slide 1: Havells India Limited: Leveraging Brand & Distribution

    Havells India Limited Leveraging Brand & Distribution May 2014

  2. Slide 2: Introduction

    INTRODUCTION • Havells – a branded electrical consumer products company in India. • Started in 1971 with the acquisition of Havells brand. • Amongst top 4 brand in various product categories. • Acquired global lighting brand ‘Sylvania’ in 2007 to expand in international markets. • Consolidated Reven

  3. Slide 3: Favorable Industry Dynamics - India

    FAVORABLE INDUSTRY DYNAMICS - INDIA • Paradigm shift in consumer buying behavior, driven by aspiration. • Branded over unbranded, organized over unorganized. • Resulting in vast growth opportunity in branded electrical consumer products segment. Unbranded Branded • Increasing consumer/ end users eng

  4. Slide 4: Sustained Growth & Business Leadership

    SUSTAINED GROWTH & BUSINESS LEADERSHIP • Stronger focus on consumer business. • Brand promotion, distribution penetration, servicing and product expansion, inter-alia, to be key initiatives for higher growth. • Product mix to further gravitate towards consumer branded segment. • Benchmarking with in

  5. Slide 5: Backyard to Living Room

    BACKYARD TO LIVING ROOM 2004 2011 Lighting Fans Domestic Appliances Switch Till 2004 Industrial Cable Domestic Cable Switchgears 5

  6. Slide 6: Ability to Launch, Stabilize & Create Sizeable Business

    ABILITY TO LAUNCH, STABILIZE & CREATE SIZEABLE BUSINESS Revenue Mix- FY13 Successfully gained market share in new segments Electrical Consumer Electrical Consumer Durable - Fans Revenue from Durables Switchgears #3 Market Size ~ INR 45,000 million 19% new segments 25% Market share ~ 15% Peer Positio

  7. Slide 7: Maintaining Industry Leadership

    MAINTAINING INDUSTRY LEADERSHIP Creating Long Term Value Switchgears - Domestic MCB 50000 30% Revenue & EBIDTA #1 Market Size ~ INR 17,000 million 40000 25% Market share ~ 29% (15% in 2006) 33% & 37% 20% Peers – Legrand (Indo Asian), Schneider 30000 15% 20000 Switchgears - Switches 10% #2 Market Siz

  8. Slide 8: Wider, Deeper

    WIDER, DEEPER • Direct presence in 100 towns with >500k population. • Focus now on towns with 50-500k population. Out of 1200 towns, already reached nearly 750 towns. • Less than 50k towns currently served by distributors as opportunity constrained with inadequacy of quality and availability of powe

  9. Slide 9: Benchmarking with the Best Corporate, Financial and Shareholders Governance

    BENCHMARKING WITH THE BEST CORPORATE, FINANCIAL AND SHAREHOLDERS GOVERNANCE • Promoters- Single business focus, high Shareholding Pattern quality corporate governance practices. Indian Public 6.9% Mutual Alignment of interest with other investors Fund 0.5% through transfer of “HAVELLS” Brand at no c

  10. Slide 10: Havells Standalone Financials

    HAVELLS STANDALONE FINANCIALS in millions of Rupees Operational highlights Balance Sheet highlights FY12 FY13 9MFY14 March 12 March 13 Dec 13 Net Revenue 36,156 42,250 34,097 Net Worth 16,083 18,702 22,151 Growth (%) 22% 17% 12% Gross Debt 1,286 1,088 2,015 EBIDTA 4,591 5,332 4,733 Net Fixed Assets

  11. Slide 11: Sylvania Acquisition – Global Footprint

    SYLVANIA ACQUISITION – GLOBAL FOOTPRINT Lamps: • Acquired Sylvania lighting for expanding internationally with similar business profile- brand and distribution network. • 100 years old brand having distribution LEDs Traditional network across Europe, Latin America and global brand recall. Fixtures:

  12. Slide 12: Strategy-Sylvania

    STRATEGY-SYLVANIA • Stabilizing Europe, growth in Latin America and Asia. Net Sales EBIDTA margin € 495 • Incubating new territories viz South Africa, Chile. € 406 € 438 € 441 € 432 € 429 8.4% 5.5% 5.9% • Expand product categories to move beyond lighting 3.2% 5.4% into electrical products (like Have

  13. Slide 13: Sylvania Financials

    SYLVANIA FINANCIALS in millions of Euro Operational highlights Balance Sheet highlights CY11 CY12 CY13 Dec 11 Dec 12 Dec 13 Net Revenue € 441 € 432 € 429 Share Capital € 103 € 141 € 141 Growth (%) 1% -- -- Reserve & Surplus € (112) € (77) € (77) EBIDTA € 37 € 26 € 23 Net debt € 126 € 73 € 62 EBIDTA

  14. Slide 14: Consolidated

    CONSOLIDATED in millions of Rupees Operational highlights Balance Sheet highlights FY12 FY13 9MFY14 FY12 FY13 9MFY14 Net Revenue 65,182 72,478 59,567 Net worth 9,556 14,420 17,985 Growth (%) 16% 11% 13% Net debt 7,934 5,079 2,771 EBIDTA 6,785 6,860 5,952 Net fixed assets 10,946 11,555 12,131 As % to

  15. Slide 15: Summary

    SUMMARY • Havells metamorphosing into branded consumer company benchmarked against the best-in-class across industries (not just electrical). • Constant endeavor to align with best practices in each initiative for each stakeholder. • Sylvania to spearhead global expansion. • Continue to be ambitious

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