Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Q4 FY2021-22 Earnings Presentation
26 slides from Kansai Nerolac Paints's earnings presentation, May 11, 2022
Slide 1: Q4 FY 2021-22 Financial Results Conference Call – Investor Presentation
Page 1 of 26 [ ( KANSAI PAINT NEROLAC 11th May, 2022 1. Corporate Relationship Department 2. Manager – Listing BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai - 400001. Mumbai - 400051.
Slide 2: Page 2 of 26
Page 2 of 26
Slide 3: Investor Presentation (Update 21-22)
Page 3 of 26 • Investor Presentation (Update 21-22) All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
Slide 4: Disclaimer
[ ( KANSAI PAINT Page 4 of 26 NEROLAC Disclaimer This presentation may contain statements which reflect management’s current views and estimates and could be construed as forward making statements. The future involves certain risks and uncertainties that could cause actual results to differ material
Slide 5: Agenda
Page 5 of 26 Agenda • Business Environment FY 2021-22 All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
Slide 6: Recap of Business Environment 2021-22
Page [( ~~SAl, - - - - - - - - - - - - - - - - - - - - - - -6- of- 26- - - - - - - - - - - - - - - - - - - -~NEROLAC Recap of Business Environment 2021-22 ShullffU.Ot G0t"\ • 196844968 Geo political Challenges Currency COVID 2nd & 3rd wave Semiconductor shortages & Ukraine war appreciation URE )ntra
Slide 7: Agenda
Page 7 of 26 Agenda • Business Review FY 2021-22 All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
Slide 8: Decorative Highlights
[ ( KANSAI PAINT Page 8 of 26 NEROLAC Decorative Highlights • Product portfolio expanded NEROLAC • Price increase taken during the year ~21% PAINT+ • Construction Chemicals range further expanded • Premium Wood finishes have shown good •!:Sit' NERO LAC traction • Digitized the influencer journey IOI
Slide 9: Industrial Highlights
[ ( KANSAI PAINT Page 9 of 26 NEROLAC Industrial Highlights • Strengthen position in Automotive segment • Witnessed High material inflation and partly compensated by price increase • KNP is a key player in Electric vehicle segment • Best Supplier Awards from major OEMs like Honda Motorcycles and Sco
Slide 10: Manufacturing footprint
[ ( KANSAI PAINT Page 10 of 26 NEROLAC Manufacturing footprint • Capacity in 583 mn ltr. • Average Capacity utilization is 60% • Backward Integration • New resin manufacturing facility commissioned at Sayaka plant • New emulsion manufacturing facility commissioned at Amritsar plant • New Wood-finish
Slide 11: Supply Chain & Services
[ ( KANSAI PAINT Page 11 of 26 NEROLAC Supply Chain & Services • Focused on improving OTIF (On Time in Full) service level for Industrial customers. • For Decorative segment, we added 5 new regional distribution centers for improving customer service. • Company is now AEO certified which will aid fa
Slide 12: Human Capital
[ ( KANSAI PAINT Page 12 of 26 NEROLAC Human Capital Great Place Celebrating the incredible To • Certified Great Place to Work for second Women of Nerolac! Work® time in 2021 • Focused on employee health and well Certified JUL 2021-JUL 2022 being INDIA • Employee participation in CSR activities • In
Slide 13: Intellectual Capital
[ ( KANSAI PAINT Page 13 of 26 NEROLAC Intellectual Capital Our Edge - Decorative Our Edge - Industrial • Product range expansion through • Best-in-class technical services and Value- unique features added solutions • Complete range of products in • Sustainable and Resource efficient construction ch
Slide 14: ESG - Sustainability
[ ( KANSAI PAINT Page 14 of 26 NEROLAC ESG - Sustainability Our Approach Commitment • Follow a triple bottom line (3P – People, Planet and Profit) • Regular and transparent reporting of our progress on approach to judiciously manage the six capitals short/long-term goals on Environment, Social & Gov
Slide 15: Environment, Health and Safety – Key Highlights
[ ( KANSAI Page 15 of 26 NEROLAC Environment, Health and Safety – Key Highlights PAINT Greenbelt Development Certification • Total of 53,811 trees are planted inside factory premises across all Goind locations of which 6,564 trees were planted in FY 2021-22 Bawal Hosur Jainpur Lote Sayaka wal Perma,
Slide 16: Society – CSR Initiatives
[ ( KANSAI PAINT Page 16 of 26 NEROLAC Society – CSR Initiatives Rural development/Community development Promoting Education Preventive Health Care & Sanitation Ensuring Environmental Sustainability Investor Presentation (Rain Water Harvesting) May 2022
Slide 17: Governance
[ ( KANSAI PAINT Page 17 of 26 NEROLAC Governance Internal Audit with Focus on System enabled Control Efficiency Index (CEI) Online Compliance Tracking Enterprise Risk Management Robust Control Index (RCI) Governance Compliance Risk Investor Presentation May 2022
Slide 18: Digital Technologies
[ ( ~~SAi Page 18 of 26 NEROLAC , - - - - - - - - - - - - - - - - Digital Technologies Influencer Pragati APP Dealer Saathi APP Customer Experience I Am Nerolac Vendor Page Invoice Management Nerolac Premier League - Intelligent Cloud call Performance Employee Digital Operations center appraisal Exp
Slide 19: Financials – Standalone Q4 and FY 21-22
[ ( KANSAI PAINT Page 19 of 26 NEROLAC Financials – Standalone Q4 and FY 21-22 Q4 12M % to % to % to % to Rs. Millions 2020-21 2021-22 Gr % 2020-21 2021-22 Gr % Net Sale Net Sale Net Sale Net Sale Net Revenue 13558 14128 4.2 47709 59489 24.7 Material Costs 8873 65.4 10177 72.0 29574 41293 Overheads
Slide 20: Financials – Consolidated Q4 and FY 21-22
[ ( KANSAI PAINT Page 20 of 26 NEROLAC Financials – Consolidated Q4 and FY 21-22 Q4 12M % to % to % to % to Rs. Millions 2020-21 2021-22 Gr % 2020-21 2021-22 Gr % Net Sale Net Sale Net Sale Net Sale Net Revenue 14596 15366 5.3 50743 63694 25.5 Material Costs 9552 65.4 11074 72.1 31465 62.0 44273 69.
Slide 21: Working Capital
[ ( KANSAI PAINT Page 21 of 26 NEROLAC Working Capital Rs Million FY 2020-2021 FY 2021-2022 WORKING CAPITAL Value NOD Value NOD Inventories 11118 124 15315 135 Debtors 8465 50 9654 50 Loans & Advances 4438 4177 Cash & Bank balances (Excluding FD) 833 806 Total 24854 29952 Less: Curr. Liab. & Prov. 1
Slide 22: Dividend
[ ( KANSAI PAINT Page 22 of 26 NEROLAC Dividend Financial Year 2019-20 2020-21 2021-22 Dividend % 315 525* 225 * Includes special dividend of 200% Investor Presentation May 2022
Slide 23: CAPEX
[ ( KANSAI PAINT Page 23 of 26 NEROLAC CAPEX Rs Million 2019-20 2020-21 2021-22 Projects 1430 1140 1415 Normal 740 600 875 Total 2170 1740 2290 Investor Presentation May 2022
Slide 24: Subsidiaries – International
[ ( KANSAI PAINT Page 24 of 26 NEROLAC Subsidiaries – International Nepal Bangladesh Sri Lanka • YTD Net sales Growth : 22.5% • YTD Net Sales Growth: 41.2% • YTD Net sales Growth: 68.3% • Secondary sales were sluggish • Overall price increase of 18.5% • Sales were affected due to from Q4, due to slo
Slide 25: Subsidiaries – Domestic
[ ( KANSAI PAINT Page 25 of 26 NEROLAC Subsidiaries – Domestic Nerofix (Adhesives) • Sales growth was 57.8% for the year • Profitability lower due to high inflation of 35% • Total Price increase taken 18.5% • Completed the product Portfolio by Launching NeroFix Super, NeroFix Smart, NeroFix AquaSmar
Slide 26: Thank you
Page 26 of 26 • Thank you All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
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