Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Merrill Lynch India Investor Conference 2014
38 slides from Asian Paints's conference presentation, Feb 21, 2014
Slide 1: Merrill Lynch India Investor Conference
Merrill Lynch India Investor Conference Mumbai February 21, 2014
Slide 2: 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 3: The Asian Paints Group Today
The Asian Paints Group Today… • India’s largest Paints company for over four decades • Ranked amongst the top coating companies in the world • 24 Paint Manufacturing locations spread across 17 countries • Group revenue in excess of USD 2 Billion • Over 7000 employees world wide • Part of Nifty 50 in
Slide 4: What got Asian Paints here?
What got Asian Paints here? • Long standing belief in fostering the principles of trust and transparency • Ability to adapt itself to the changing environment • Dynamic professional management team focused towards delivering stakeholder value with highest levels of corporate governance. • Innovative
Slide 5: Changing with times
do asianpaints Changing with times So asianpaints asianpaints , asian paints on 1954 2002 2012
Slide 6: The New Brand Identity
The New Brand Identity • Signifies our intent to establish a deeper connect with our customers • Ensure that the Asian Paints brand is able to stir the consumer’s imagination, ignite their creativity as well as expand their vision to a new vista of possibility • The new logo conveys these elements w
Slide 7: Corporate Brand Positioning
Corporate Brand Positioning “To be the fore runner of inspiring décor and to actively empower customers to create their dream homes”
Slide 8: Business Operations-Consolidated
Business Operations-Consolidated • Decorative Coatings – India • Industrial Coatings – India • PPG Asian Paints • Asian Paints PPG • Chemicals India • International Operations • Home Improvement Business
Slide 9: 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-
Slide 10: Industrial Coatings - India
Industrial Coatings - India • Asian Paints participates in the Industrial Coatings segment, through two 50:50 JVs with PPG Inc. of US • PPG AP (For Auto Coatings) – The Auto segment is catered through our JV (PPG AP) • Second largest supplier to the auto segment in India • Now, the largest player in
Slide 11: 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 about 1% to the group’s consolidated revenue – Its contribution to the group’s revenue
Slide 12: International Operations
International Operations • Contributes about 13% to the group turnover • Began by establishing presence in Fiji in 1978 • Presence in 16 countries spread over 4 regions – Middle East – Caribbean – South Pacific Islands – Asia (Includes Sri Lanka, Bangladesh, Nepal and Singapore) • Among top three in
Slide 13: Region-wise contribution
Region-wise contribution FY 2013 * Asia includes Sri Lanka, Nepal, Bangladesh and Singapore operations
Slide 14: International Presence
International Presence Asia Asia South Pacific Singapore India, Sri Lanka, Fiji, Tonga, Vanuatu, Nepal & Bangladesh Samoa & Solomon Islands Middle East UAE, Bahrain & Oman Egypt Caribbean Jamaica, Barbados, Trinidad & Tobago
Slide 15: Presentation structure
Presentation structure Economic Environment Company Performance Business Review Risks and Outlook
Slide 16: Presentation structure
Presentation structure Economic Environment Company Performance Business Review Risks and Outlook
Slide 17: Economic Environment
Economic Environment • Global growth in Calendar year 2013 was affected mainly by moderation in Emerging market growth rates and Recession in Euro Zone. • Overall Commodity prices were marginally higher in the third quarter. • Currency remained volatile and was impacted mainly due to higher CAD and
Slide 18: Presentation structure
Presentation structure Economic Environment Company Performance Business Review Risks and Outlook
Slide 19: Corporate Highlights – Q3 FY14
Corporate Highlights – Q3 FY14 • Standalone Income from operations for the quarter increases by 12.2% • Consolidated Income from operations for the quarter increases by 13.2% • 9M Standalone & Consolidated Income from operations up by 14.3% • Berger International Limited (BIL) stake increased to 96.
Slide 20: Standalone: Q3 & 9M – FY 2014
Standalone : Q3 & 9M - FY 2014 So asianpaints STANDALONE (Rs Crs) | Q3-FY14 | Q3-FY13 | Growth % Income from Operations 2,843.0 2,533.7 12.2% PEDIT 4777 4571.4 5.8% PEDIT % 16.85 17.85 STANDALONE (Rs Crs) | 9M-FY14| 9M-FY13 | Growth % Income from Operations 7,694.7 6,730.5 14.3% PEDIT 1,353.3 1,193.
Slide 21: Standalone Income from Operations – YoY Growth
Standalone Income from Operations – YoY Growth
Slide 22: Standalone: Q3 & 9M FY 2014
Standalone : Q3 & 9M FY 2014 • Depreciation for Q3 FY14 of Rs. 54 crores includes Khandala plant (Maharashtra, India) depreciation of Rs. 21 crores • Khandala plant depreciation for 9M FY14 is Rs. 62.5 crores • Other operating income for Q3 FY14 & 9M FY14 includes Rs. 20.7 crores (Nil in Q3 FY13) an
Slide 23: Consolidated: Q3 & 9M – FY 2014
Consolidated : Q3 & 9M – FY 2014
Slide 24: Presentation structure
Presentation structure Economic Environment Company Performance Business Review Risks and Outlook
Slide 25: Business Review – Decorative Business
Business Review – Decorative Business • Double digit growth was registered in the quarter. • Overall market remained challenging during the quarter. While the demand conditions improved in Oct’13, they were subdued in Nov’13. Price Revision • We have announced a price increase of 2.1% wef 1st Feb 20
Slide 26: Business Review – Industrial Business
Business Review – Industrial Business • For Industrial Coatings (APPPG), business continued to be impacted by sluggish manufacturing environment in the economy, with no major capex activity. • PPGAP, the automotive coatings JV was affected due to subdued demand in the automotive sector.
Slide 27: Business Review – International Business
Business Review – International Business • Middle East and Asia have done well. • However, the business environment in countries like Egypt and Bangladesh continues to be marred by large scale disruptions arising from the political impasse.
Slide 28: Home Improvement Business
Home Improvement Business • On 8th August 2013, Asian Paints invested Rs. 99.79 crores for 51% stake by subscription to equity shares of Sleek International Private Limited (SIPL) • Further investment of Rs. 19.69 crores was done on 10th August, 2013, as second tranche to the above mentioned transac
Slide 29: Key Updates
Key Updates Baddi Plant • Powder Coating Plant at Baddi was closed on 25th Nov 2013 due to significant decline in the processing volume of powder coatings in the last two years. • Going forward, demand for powder coatings will be catered by the facility at Sarigam in Gujarat. Berger International Li
Slide 30: Presentation structure
Presentation structure Economic Environment Company Performance Business Review Risks and Outlook
Slide 31: Risk & Outlook
Risk & Outlook • Going forward, the growth outlook is expected to be challenging. • However, the pre-election spending may have a positive impact on the rural demand. Additionally, the good agriculture growth might also drive rural growth. • Weak currency can continue to pose challenges on the margi
Slide 32: Thank you
do asianpaints Thank you
Slide 33: Annexures
do asianpaints Annexures
Slide 34: Standalone P&L Q3 FY 2013-14
Standalone P&L Q3 FY 2013-14 (Rs Crores) Q3 13-14 Q3 12-13 Gr % Total Income from Operations 2,843.01 2,533.69 12.2% Material Cost 1,666.14 1,482.40 12.4% Employee Remuneration 125.39 97.56 28.5% Other Expenses 573.76 502.34 14.2% PBDIT 477.71 451.39 5.8% Depreciation & amortisation Exp. 53.98 30.08
Slide 35: Consolidated P&L Q3 FY 2013-14
Consolidated P&L Q3 FY 2013-14 (Rs Crores) Q3 13-14 Q3 12-13 Gr % Total Income from Operations 3,451.92 3,049.64 13.2% Material Cost 2,037.88 1,813.33 12.4% Employee Remuneration 196.89 153.17 28.5% Other Expenses 679.84 572.56 18.7% PBDIT 537.31 510.58 5.2% Depreciation & amortisation Exp. 63.34 36
Slide 36: Standalone P&L 9M FY 2013-14
Standalone P&L 9M FY 2013-14 (Rs Crores) 9M 13-14 9M 12-13 Gr % Total Income from Operations 7,694.74 6,730.52 14.3% Material Cost 4,368.66 3,913.36 11.6% Employee Remuneration 379.95 299.74 26.8% Other Expenses 1,592.79 1,323.84 20.3% PBDIT 1,353.33 1,193.58 13.4% Depreciation & amortisation Exp. 1
Slide 37: Consolidated P&L 9M FY 2013-14
Consolidated P&L 9M FY 2013-14 (Rs Crores) 9M 13-14 9M 12-13 Gr % Total Income from Operations 9,407.68 8,228.63 14.3% Material Cost 5,418.09 4,868.60 11.3% Employee Remuneration 583.64 463.47 25.9% Other Expenses 1,893.19 1,557.60 21.5% PBDIT 1,512.76 1,338.96 13.0% Depreciation & amortisation Exp.
Slide 38: Key Ratios
So . asianpaints Key Ratios Standalone Consolidated % to Operating Income |9M 13-14 /9M 12-13 |9M 13-14 9M 12-13 Material Cost / Net Sales 56.8% 58.1% 57.6% 59.2% PBDIT / Net Sales 17.6% 17.7% 16.1% 16.3% PBT / Net Sales 17.1% 17.3% 14.9% 15.5% PAT / Net Sales 11.7% 12.0% 10.2% 10.9% For Consolidate
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