Berger Paints India Limited · NSE:BERGEPAINT
Berger Paints India — Investor Conference, London 2015
39 slides from Berger Paints India's conference presentation, Aug 4, 2015
Slide 1: Berger Paints India Ltd
BERGER PAINTS INDIA LTD Investor Conference, London, 4th August, 2015
Slide 2: Berger – History
BERGER – HISTORY 1760 – LEWIS BERGER, a young chemist, embarks on a journey into the world of colours in Europe – his successors eventually set up what is now known as Berger, Jenson & Nicholson UK Ltd 1923 – GEORGE HADFIELD, an Englishman, sets up HADFIELD’S INDIA LTD in Calcutta 1947 – BRITISH PAI
Slide 3: Berger – History
BERGER – HISTORY 1983 – Name of the Company changed to BERGER PAINTS INDIA LTD from British Paints India Ltd 1985-90 – Brand BERGER gains momentum – SILK, RANGOLI, LUXOL, BISON become household names in India – UB group acquires controlling stake 1991 – Mr K S Dhingra & Mr G S Dhingra (UK Paints Gro
Slide 4: Berger – History
BERGER – HISTORY 2001 – Acquisition of ICI India’s Motors and Industrial business and factory at Rishra, West Bengal 2004 – Rebranding of Berger Decorative to LEWIS BERGER. New containers and new logo comes into effect. 2007 – Berger Paints Overseas Ltd in Russia commences commercial production of a
Slide 5: Berger Paints India Limited Group
BERGER PAINTS INDIA LIMITED GROUP Berger Division 1. Berger Paints India Ltd. Decorative, Industrial, Protective & Powder Coatings British Paints Division - Decorative Coatings 2. Berger Becker Coatings Pvt. Ltd. Coil Coatings & Coatings for electrical (JV with Becker Industrifarg AG) appliances /TV
Slide 6: Berger Paints India Limited – Current Promoters
BERGER PAINTS INDIA LIMITED Current Promoters: • The Dhingra family, owners of the U.K. Paints Group • In the paint business in India since the 1890’s • The group owns almost 75% of the shares in Berger Paints India Ltd and 95% of the shares of Berger Bangladesh (the clear market leader with 55% mar
Slide 7: Organised Sector - Top Indian Companies % Market Share FY15
Organised Sector - Top 5 Indian Companies % Market Share FY15 Market Share (%) Shalimar, 1.9 Akzo , 11.1 KNP , 15.6 Asian , 53.6 Berger , 17.8 Turnover represents Sales net of excise duties Turnover includes Joint Ventures & Subsidiaries in India but excludes overseas operations 7
Slide 8: BPIL Consolidated CAGR Net Sales, PBDIT & PAT
BPIL CONSOLIDATED CAGR NET SALES, PBDIT & PAT 20.7 21.0 19.8 20.0 19.0 18.0 17.6 18.0 17.1 17.0 17.0 16.0 15.0 5 years 10 Years Net Sales PBDIT PAT
Slide 9: BPIL 5-Year Track Record: Net Operating Revenues - Consolidated
BPIL- 5-Year Track Record : Net Operating Revenues - Consolidated USD million 800 707 700 633 600 547 500 482 400 383 300 200 100 - 10-11 11-12 12-13 13-14 14-15 5-Year Track Record : Net Operating Revenues - Consolidated
Slide 10: BPIL 5-Year Track Record: Operating Profit - Consolidated
BPIL 5-Year Track Record : Operating Profit –Consolidated USD million 100 89 90 80 76 70 66 60 55 50 46 40 30 20 10 - 10-11 11-12 12-13 13-14 14-15 5-Year Track Record : Operating profit - Consolidated 10
Slide 11: Paint Manufacturing Units
PAINT MANUFACTURING UNITS Asian Pkg. - Jammu (3 units) Asian Pkg. - Delhi UKPI - Arinso Surajpur UKPI - Devla OWN FACTORIES TOLL PROCESSORS CONTAINER PROCESSORS 11
Slide 12: India-Wide Network Capability
INDIA-WIDE NETWORK CAPABILITY Over 160+ Stock Points Dedicated Sales Teams in all locations with empowered support staff to cater to customer needs 12
Slide 13: Berger Paints in Forbes India's Super 50 List
Berger Paints in Forbes India's Super 50 List Abstract from Forbes India article “ …..A voracious appetite for growth and innovation coupled with the ability to tide over tough times can yield great results. Consider Forbes India's Super 50 companies, which have earned their place in this list by co
Slide 14: Berger features within top 25 in Coatings World Journal
Berger features within top 25 in Coatings World Journal Berger India Group breaks into the Global top 25 6th in Asia
Slide 15: Berger Ranked 37 in Brandz Top 50 Most Valuable Indian Brands 2014
Berger Ranked 37 in Brandz Top 50 Most Valuable Indian Brands 2014 • Renowned global research agency Millward Brown and the largest media/advertising name in the world WPP, released a list that featured the Top 50 ‘India’s Most Valuable’ brands • Berger Paints has occupied a respectable position in
Slide 16: Diversified Business Segments
Diversified Business Segments RETAIL GI & AUTO PROTECTON POWDER Coating for Decorative Process Protective white goods, solutions Industry, Coating & consumer through General Infrastructure durables Dealers Industry & and and Automotive household Specifiers appliances & fittings
Slide 17: Decorative Product Portfolio
DECORATIVE PRODUCT PORTFOLIO
Slide 18: Comprehensive Product Range
COMPREHENSIVE PRODUCT RANGE
Slide 19: Comprehensive Product Range
COMPREHENSIVE PRODUCT RANGE NC CLEAR
Slide 20: Dealer Outlet Livery
= - RIC SMO FINISH SMS EASY CLEAN to 567672 Dealer Outlet Livery SMS EASY CLEAN to 567672
Slide 21: Premium Emulsion Brands
Silk – Luxury Interior Easy Clean – The most Emulsion washable emulsion in India PREMIUM EMULSION BRANDS Weather Coat AllGuard - The 1ST & only brand with Silicone Enhanced technology
Slide 22: Construction Chemicals
Construction Chemicals • These are specialty products used to extend structural life of buildings • These products impart protection from environmental hazards as well as reduce the amount of water and cement required
Slide 23: Services - Home Painting
Services - Home Painting SERVICES OFFERED ARE- • CONSUMER SERVICE DIVISION • SINGLE POINT SOLUTION FOR HASSLE FREE PAINTING • COST ESTIMATION • COLOUR CONSULTANCY • PRODUCT SELECTION • PAINT PURCHASE • FURNITURE SHIFTING • PAINTING BY EXPERT PAINTERS • SPECIALISED SUPERVISION • POST- PAINTING CLEAN
Slide 24: Services – Prolinks
Services – Prolinks • PROLINKS TEAM FOCUS IS ON CONVERSION OF VERY LARGE COMMONWEALTH GAMES VILLAGE DELHI PROJECTS • TEAM GETS PRODUCT APPROVAL FROM LARGE PROJECTS THROUGH PRESCRIPTIVE SELLING • SOME SPECIALISED SERVICES ARE- – AUDIT – ANALYSIS OF PROBLEM AND PROVISION OF SOLUTION – INTERACTION WITH
Slide 25: Services – Express Painting
Services – Express Painting • New age end-to-end painting solution • Faster, cleaner & better painting experience • Uses mechanized tools & skilled painters
Slide 26: Auto & Industrial
AUTO & INDUSTRIAL
Slide 27: Strategic Alliances in Industrial Coatings
Strategic Alliances in Industrial Coatings
Slide 28: Auto Divisions
Divisions CARS & MUV LCV,MCV,HCV 3 WHEELERS 2 WHEELERS
Slide 29: Powder Coating
POWDER COATING
Slide 30: Protective Coatings – Number One
Protective Coatings BERGER PAINTS IS THE NUMBER ONE IN THIS BUSINESS SEGMENT
Slide 31: Protective Coatings
PROTECTIVE COATINGS A LONG LIST OF ASSETS IN CORE INDUSTRIAL & INFRASTRUCTURE AREAS ARE PROTECTED BY BERGER’S PROTECTON RANGE OF COATINGS. WIDE RANGE OF COATINGS OFFERED TO MEET CUSTOMER’S REQUIREMENTS. FASTEST GROWING SEGMENTS •Oil & Gas, Refineries •Power •Infrastructure •Chemicals & Fertilizers •
Slide 32: Earnings Update Q1 FY 16
Earnings Update Q1 FY 16
Slide 33: Q1 FY16 Financial Results – Standalone Growth%
Q1 FY 16 Financial Results – Standalone Growth% 40.0 35.0 33.7 32.3 30.0 30.0 28.1 25.0 20.0 15.0 10.0 7.9 5.0 - Net Sales & Other PBDIT PBIT PBT PAT Operating Income
Slide 34: Statement of Standalone Profit and Loss: Q1 FY16
Statement of standalone Profit and loss : Q1 FY16 USD Mn Average Exchange rate: April 15 – June 15 = 63.5
Slide 35: Financial Results Synopsis – Standalone Q1 FY16
Financial Results Synopsis– Standalone Q1 FY16 • Decorative business growth was impacted by lower demand • Protective Coating business continue to show robust growth for the quarter • General Industrial/Automotive business lines continue to show sustained growth • Sustained improvement in material c
Slide 36: Q1 FY16 Financial Results – Consolidated Growth%
Q1 FY 16 Financial Results – Consolidated Growth% 40.0 34.1 34.5 35.0 30.3 30.0 27.7 25.0 20.0 15.0 10.0 5.7 5.0 - Net Sales & PBDIT PBIT PBT PAT Other Operating Income
Slide 37: Statement of Consolidated Profit and Loss: Q1 FY16
Statement of consolidated Profit and loss : Q1 FY16 USD MN Q1 FY 16 % to sales Q1 FY 15 % to sales Growth % Net sales and other operating income 177 167 5.7 Material Cost 102 57.7 101 60.4 Employee Cost 11 6.1 10 6.2 Other expenses 40 22.9 38 22.6 PBDIT 24 13.3 18 10.8 30.3 Depreciation 4 2.2 3 2.0
Slide 38: Financial Results Synopsis – Consolidated Q1 FY16
Financial Results Synopsis– Consolidated Q1 FY16 • Consolidated results effected by a) Slowdown in Coil Coatings demand impacting JV Berger Becker Coatings operations b) Company’s wholly owned subsidiary BJN Nepal operations were impacted in the aftermath of the twin earthquakes in April & May 2015
Slide 39: Disclaimer
Disclaimer This presentation has been prepared by Berger Paints India Limited for information purposes only. The forward looking statements, if any, involve risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the statements. 39
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