Century Plyboards (india) Ltd. · NSE:CENTURYPLY
Century Plyboards (india) — Investor Presentation (January 2015)
42 slides from Century Plyboards (india)'s investor presentation, January 2015
Slide 1: Century Plyboards (India) Limited Investor Presentation January 2015
CENTURY PLYBOARDS (INDIA) LIMITED INVESTOR PRESENTATION, January - 2015 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Century Plyboards (I) Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 3: Contents
Contents BUSINESS OVERVIEW 4 PLYWOOD 19 LAMINATES 23 CONTAINER FREIGHT STATIONS 24 FINANCIALS 31 3
Slide 4: Business Overview
Business Overview PLYWOOD LAMINATES India’s leading Plywood company Among top three laminate producers Pan- India: 6 Manufacturing facilities Fully integrated plant near Kolkata Strategically located across India, near Capacity – 4.8 Million Sheets Kolkata in East, near Kandla in West, near Focus on
Slide 5: Segment Contribution in FY2014
Segment Contribution in FY2014 Rs. Crores Revenue mix FY 2014 EBIDTA mix FY 2014 EBIT mix FY 2014 Revenue mix 9MFY15 EBIDTA mix 9MFY15 EBIT mix 9MFY15 Plywood 855.28 Laminates 213.08 Plywood 143.61 Laminates 26.46 Plywood 129.05 Laminates 16.49 Logistics 53.07 Others 26.10 Logistics 23.64 Others (1.
Slide 6: Promoters
Promoters Sajjan Bhajanka, Executive Chairman Sanjay Agarwal ,CEO and Managing Director Graduate with 45 years of industry experience Graduate with 30 years of industry experience Responsible for the overall strategic direction Responsible for Sales, Marketing, IT and HR and Production, Fina
Slide 7: Key Management Team
Key Management Team Ajay Baldawa, Executive Director (Technical) Arun Julasaria , CFO M.Tech from IIT with 30 years of plywood FCA, FCS with varied experience over 25 years industry experience. Responsible for Finance, Accounts, Audit Responsible for all technical matters Treasury, Corporate
Slide 8: Centuryply - Brand
Centuryply - Brand The first TVC was aired in 1993 with Late Cricketer Tiger Pataudi & Sharmila Tagore as the Brand Ambassadors. In the last two market researches the Brand character as it emerges is “It’s a trusted & old brand “ “CenturyPly is known for its quality” 8
Slide 9: Centuryply - Brand
Centuryply - Brand In 2005 the “Sab Sahe Mast Rahe” TVC campaign was aired which highlighted the product attributes of strength and durability. In 2014 a need was felt to connect directly with the end user and take CenturyPly from being a “Product brand” to a “Consumer brand” 9
Slide 10: Centuryply – The Final Brand Conviction
Centuryply – The Final Brand Conviction What vision do I come from? Being the best by continuously making life better What culture fuel fuels my belief? Omnipresent appetite for optimism despite stagnation and gloom What is my fight? Who are my advocates? Life Designers: Believe designing a home is
Slide 11: Centuryply – The Final Brand Conviction
Centuryply – The Final Brand Conviction 11
Slide 12: Centuryply - Brand
Centuryply - Brand In addition to being a literal translation of – PLATFORMS OF JOY, we believe that the expression is very unique, sticky, rich and holds a lot more potential. 12
Slide 13: The Brand Hierarchy was thus created...
The Brand Hierarchy was thus created...
Slide 14: Centuryply - Brand: Strong Brand value
Centuryply - Brand Strong Brand value 28 Year Old – India’s leading plywood brand Top 100 most valuable brands of India as per 4P Survey 2010 One of Nation’s top 200 Power Brands – ‘Legacy’, ‘Recall’ & ‘Trust’ CenturyPly has been adorned as ‘Master Brand’ by the CMO council Celebrity Endorse
Slide 15: More about Centuryply
More about Centuryply 28 Year Old Company promoted by first generation promoters Maiden IPO in 1997, Till date 3.36 crores fund raised from Public Uninterrupted Dividend and return to Investors TECHNOLOGY SAVVY- Runs on SAP ERP ASSET LIGHT MODEL- Capex Turnover Ratio 1:5 INNOVATIVE - First to introd
Slide 16: The INDIA Distribution story
The INDIA Distribution story Total Population – 1.25 billion Indian Towns based on Population density > 50,000 1097 Towns 50,000 – 100,000 601 Towns 100,001 – 500,000 407 Towns 500,001 – 1,000,000 43 Towns > 1,000,000 46 Towns Estimated no. of Dealers across India – 54,000 No. of Branches / Sales De
Slide 17: Distribution Strategy
Distribution Strategy Panel LOB Decoratives LOB A Distributor / Wholeseller / A Distributor / Retailer model Retailer model Objectives : Objectives : a. To bill 10000 retailers by 2015 a. Distributor driven business to against 8500 YTD contribute 20% of overall December’14 volume b. To increase Dist
Slide 18: Pan India Presence (Robust network)
Pan India Presence (Robust network) Manufacturing Units Ply* 6 Ply Myanmar# 1 Laminates 1 CFS 2 *Includes one subsidiary (51%) unit # Ply Myanmar is 100% subsidiary Branch Offices / Depot 35 Regional Dist. Centre 6 Distribution Network* Total* > 10,800 Direct > 1,500 *Includes dealers, sub-dealers,
Slide 19: Indian Plywood Industry (Overview 1)
Indian Plywood Industry (Overview 1) Indian Plywood & Panel Industry is ~ Rs. 15,000 Crores. Share of organized sector is 30% 50% of organized market controlled by two national players Century and Green. At national level virtual oligopoly. Balance 50% are region based confined to one or two s
Slide 20: Indian Plywood Industry (Overview 2)
Indian Plywood Industry (Overview 2) Faster Organized Sector growth Organized sector share has grown from 10% ( decade back) to 30% Organized sector suffered due to high Excise Duty of 16% which was reduced to 8% in 2006 and now pegged at 12% With migration from Sales Tax to VAT system, the cr
Slide 21: Indian Plywood Industry (Challenges and Opportunities)
Indian Plywood Industry(Challenges and Opportunities) Industry Challenges Raw Material Linkages Foreign Exchange Volatility Labour intensive Unorganized sector dominance Environmental Regulations Industry Opportunities Potential Housing and Infrastructure boom GST Stable Government,
Slide 22: Indian Plywood Industry (Our Positioning)
Indian Plywood Industry (Our Positioning) Century Ply position Pan India presence with strategic locations of six manufacturing facilities across all parts of India (North, South, East, West, North East, and Central) Robust pan India distribution network of over 30 branches with adequate warehou
Slide 23: Laminates
Laminates Industry Scenario Laminates are used to provide an aesthetic look to plywood Business synergy - Plywood and Laminates have same customer base Growth drivers for Laminate are same as Plywood Laminates market is organized and semi organized Raw Material for Laminates are paper and
Slide 24: Container Freight Stations (CFS)
Container Freight Stations (CFS) Kolkata Heavily congested due to consistent traffic growth Port Container Traffic at Kolkata expected to grow at a CAGR of 25% First Privately owned CFS of Eastern India (at Kolkata Port) Two CFS covering 1 Lac Square meter area Complete new facilities with state-of-
Slide 25: Furniture and Modular Kitchen
Others (Mainly Home Improvement) Exploring new but related business ideas Entered Furniture trading business in 2012 with two pilot retail FURNITURE AND MODULAR KITCHEN showrooms at Kolkata and Bangalore Based on 2 years experience and research decided to launch modular kitchen made of waterproof pl
Slide 26: Great Indian Opportunity
Great Indian Opportunity Stable Government Strong Leadership Fresh Optimism Stronger and Stable Rupee Housing Sector push Affordable housing loan High apartment inventory to be progressively liquidated GST implementation optimism Focus on Infrastructure and Development Increased hospitality, healthc
Slide 27: Game Changer at Century
Game Changer at Century Adequate Raw Material Security. First mover advantage at Myanmar (Unaffected by timber ban) Stable and strengthening rupee to result in lower raw material cost and forex advantages Beneficiary of Government’s housing and infrastructure thirst Targeting 25% YOY revenue growth
Slide 28: Future Horizons and Vision 2020
Future Horizons and Vision 2020 Financial Targets Minimum YOY growth of 25% ( Rs. 5000 Crore by 2020) Improving profitability, EBIDTA, ROE, ROCE ( Rs. 500 Crore NP by 2020) Multi-ply Raw material linkages Raw material availability & cost - Crucial for long term sustainability of business Eva
Slide 29: Upcoming New Units
Upcoming New Units LAOS In process of setting up new unit through 51% owned SPV ( 49% local partner) in SEZ Area At present arrangement with an existing unit in LAOS to whom we have given technical expertise and machinery on lease. Committed supply of face veneer through this existing unit and in pr
Slide 30: Competitive Advantage Summary
Competitive Advantage Summary Well established Brand Retail Driven Business Consumer Choice Pan India distribution net work Established market leadership Investing in Sales Competencies Quality Products First Generation Promoters Complete range of Products Professionally Managed
Slide 31: Financial Appendices
Financial Appendices Robust Growth Record – 10 Years CAGR Multi-ply Balance Sheet Profit and Loss Statement Segment Financials Capital Evolution Return to Investors 31
Slide 32: Robust Growth Record
Robust Growth Record PARTICULARS 2003-04 2013-14 CAGR % TOTAL INCOME 124.55 1293.45 26% EBIDTA 11.27 157.66 30% Cash Profit 10.45 102.55 26% EBIT 9.84 124.42 29% PBT 9.01 69.3 23% PAT 7.31 66.94 25% TOTAL FIXED ASSETS 22.79 230.73 26% TOTAL CAPITAL EMPLOYED 54.75 641.99 28% LONG TERM DEBT 27.75 119.
Slide 33: Balance Sheet
Balance Sheet Rs. Crores 2013 2014 9MFY15 Net Worth (Including Share Capital - 22.25 Cr) 249.67 291.41 392.73 Long Term Debt 155.66 117.98 86.83 Short Term Debt (Bank CC+Related party loan) 10.48 113.98 173.74 Total Liabilities 415.81 523.37 653.30 Fixed Assets 221.68 230.73 225.78 Investments 15.62
Slide 34: Profit & Loss Summary
Profit & Loss Summary Rs. Crores FY 12-13 FY 13-14 9M FY 14 9M FY 15 Net Sales 1,124.33 1,276.04 935.67 1,147.53 Other Operating Income 6.82 7.93 5.41 8.06 Expenditure (excl Forex Loss/(Gain) 1,020.99 1,119.03 812.94 976.82 EBITDA (Before Forex Fluctuation) 110.16 164.94 128.14 178.77 EBITDA Margin
Slide 35: Segment Comparison YOY
Segment Comparison YOY PLYWOOD LAMINATES CFS OTHERS TOTAL 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 Revenue Net Sales 964.84 826.12 236.69 210.86 52.22 55.85 22.29 31.50 1,276.04 1,124.33 Other Operating Income 1.40 1.93 5.78 4.19 0.74 0.69 0.01 0.01 7.93 6.82 S
Slide 36: Segment Comparison YOY (9 Months)
Segment Comparison YOY (9 Months) PLYWOOD LAMINATES CFS OTHERS TOTAL 9M FY 9M FY 9M FY 15 9M FY 14 9M FY 15 9M FY 14 9M FY 15 9M FY 14 9M FY 15 9M FY 14 15 14 Revenue Net Sales 855.28 701.08 213.08 175.02 53.07 42.31 26.10 17.26 1,147.53 935.67 Other Operating Income 2.84 1.08 4.46 3.62 0.74 0.71 0.
Slide 37: Capital Evolution
Capital Evolution Date Event No FV Rs. Issue Rs. Rs. Crores Rs. Crores Only 3.36 Crores capital infusion from Public (25% of Total Capital) 37
Slide 38: Return to Investors (Since IPO)
Return to Investors (Since IPO) Date Detail of Events FV (Rs) No Issue Rs. Total Rs. DIVIDEND HISTORY 27.05.1997 The IPO at a Premium of Rs.10 10 10 20 200 Year % 1 2013-14 100% 27.05.2004 Right Issue 40% at (Rs. 30 Premium) 10 4 40 160 2 2012-13 25% 30.07.2004 Bonus 1:2 ratio 10 7 0 0 3 2011-12 100
Slide 39: For further information, please contact:
For further information, please contact: Century Plyboards (I) Ltd. Mr. Arun Julasaria, CFO +919830292192 +913330252517 arun@centuryply.com www.centuryply.com 39
Slide 40: Notes
Notes 40
Slide 41: Notes
Notes 41
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