Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — Investor Presentation (March 2015)
56 slides from Greenlam Industries's investor presentation, March 2015
Slide 1: Greenlam Industries Ltd
Greenlam Industries Ltd Transforming Spaces, Enriching Lives. March-2015
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Greenlam Industries Limited (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 Welcome to the new Us Slide 5 Our Product Range Page 16 We have what it takes to be No.1 Page 24 What lies ahead... Page 35 Financials Page 44 3
Slide 4: Demerger to unlock value
Demerger to unlock value Streamline businesses Greenply Ind. Ltd. • Greenlam – Decorative surfacing products (Laminates and Decorative Veneers) Plywood & MDF Decorative • Greenply – Wood based products (Plywood and MDF) Business Business Dedicated focus on each segment Encourage newer Product
Slide 5: Welcome to the new Us
Greenlam Industries Limited Welcome to the new Us
Slide 6: Our Business
Our Business “We are into the business of Transformation. Transformation of living spaces” “We offer Surfacing & Lifestyle Solutions for both Interior and Exteriors spaces” 6
Slide 7: Who are we?
Who are we? Millions of Pleased Customer Unlimited Choices Thousands of Décor & Surface solutions Global Presence of Greenlam Brand in over 100 countries State of the art Manufacturing Facilities Top of the line Certifications 2,500+ Employees Largest Network with over 12,000+ Distributor, Dealer &
Slide 8: Largest laminate company in Asia, 3rd largest globally
Today we are The Largest laminate Company in Asia & 3rd Largest Globally 8
Slide 9: The Values that Identify Us
The Values that Identify Us Trust - We trust people to be reliable and responsible and earn their trust similarly Speed and Agility - We are quick to decide, respond and execute Performance - We value performance across products, people and processes Team Work -We achieve more by collaborati
Slide 10: Board Members
Board Members Mr. Shiv Prakash Mittal Mr. Saurabh Mittal Chairman Managing Director & CEO Ms. Parul Mittal Mr. Vijay Kumar Chopra Director Marketing & Design Independent Director Ms. Urvashi Saxena Ms. Sonali Bhagwati Dalal Independent Director Independent Director 10
Slide 11: Management Team
Management Team Saurabh Mittal Parul Mittal B L Sharma Managing Director & Director Design & President- Plant CEO Marketing Operations Alex Joseph Anil Tyagi Ashok Sharma Vice President - Country Head Sales – CFO Marketing Flooring Vertical Alok Tibrewal Deepak Aadhar Lokesh Dutt Country Head Sales
Slide 12: Product Offerings
Product Offerings Laminate & Allied Decorative Veneer & Allied Laminate Compacts MFC Decorative Engineered Wood Engineered Veneers flooring Doors 12
Slide 13: Transformation...
Transformation... • Foundation stone of • Started Commercial • 2nd Laminate unit at • Sep: Decorative Division First laminate Unit at Production of Decorative Nalagarh starts demerger approved by Behror, Rajasthan Veneer commercial production Board of Directors 1992 1993 2002 2005-08 2009 2010-11 20
Slide 14: Our Flagship Brands
Our Flagship Brands Greenlam Industries Limite ™ Greenlam LAMINATES © Mikasa REAL WOOD FLOORS DECOWOSD 14
Slide 15: Robust Product variants & offerings
Robust Product variants & offerings Laminate Compact Decorative Veneer New Product Launches Greenlam Laminates Boards • Greenlam HPL (1mm) • Compact Boards • Greenlam Post Forming • LabGaurdian Value ad Products Service Oriented solutions • Unicore Laminate • Rest room Cubicle • Digital Lami
Slide 16: Laminates & Allied Products
Laminates & Allied Products Our Product Range
Slide 17: Laminates
Laminates Laminates are decorative surface material, used on top of a substrate like plywood, MDF or a particle board as a surface cover Greenlam laminate is the flag ship brand of Greenlam Industries Limited Market Leader in Laminates with a wide range of over 2500+ decors in over 50 textures
Slide 18: Compact Laminates
Compact Laminates Self Sustainable boards panels made with decorative surface papers with décor finish on both sides Change photo Our business is divided into three solutions • BOARD || REST ROOM CUBICLE || CLADING ( façade laminate) Greenlam Offers • Greenlam Anti-Bacterial Compact Laminates
Slide 19: Melamine Faced Chip Board
Melamine Faced Chip Board Structure of MFC – Pre MFC - Melamine Faced Chip Board is an engineered particle Laminated wood product Décor paper impregnated Greenlam offers with Melamine • Laminated MFC for the use in organised carpentry primarily by OEM‟s Particle Board Core like modular furniture
Slide 20: Decorative Veneer & Allied Products
Decorative Veneer & Allied Products Our Product Range
Slide 21: Decorative Veneers
Decorative Veneers Largest manufacturer of Natural Wood Veneer in India with the Structure of a Veneer largest manufacturing capacity Offers over 200+ exotic & imported natural veneer wood species Veneer designs are Natural, obtained from sliced decorative wood species Greenlam Offers • Many
Slide 22: Engineered Wood Flooring
Engineered Wood Flooring 1st Indian manufacturer of Engineered Wood Floors State of art manufacturing facility with European technology Plant Integrated with decorative veneer facility driving better synerygy in sourcing and manufacturing Highest range offering: 111 sku’s All Raw Material
Slide 23: Engineered Door Solutions (Door + Frame)
Engineered Door Solutions ( Door + Frame)* First organised company to launch engineered, factory finished, door solutions in the country Capacity : 120,000 Doors units / annum Investment : Rs 27 Crores Integrated with existing decorative veneer and engineered wood flooring, driving better sy
Slide 24: We have what it takes to be No.1
We have what it takes to be No.1
Slide 25: Key Differentiators
Key Differentiators 3rd Largest Laminate producer in the World Market leader in the domestic market Largest & Widest distribution Network Largest network internationally Only producer in the country with integrated surface product lines Young team of professional driving the business F
Slide 26: Strong Brand Equity
Strong Brand Equity Strong brand presences across the globe On awareness parameters, Greenlam enjoys the highest brand recall among specifier & homeowners* Trusted brand by designers & architects, trade & consumers for innovation in design trend, quality, availability & transparency Highest
Slide 27: Our Strengths- Manufacturing
Our Strengths- Manufacturing Engineered Doors * * Largest capacity Engineered •Behror Plant in Asia – Wood 0.12 Mn Doors 10.02mn Sheets MFC flooring •Behror plant •Behror Plant – 2 Mn Sqm - 1 Mn Sqm Decorative Veneers Laminate & •Behror Plant Compacts * – 4.2 Mn Sqm •Behror Plant – 5.34Mn Sheets •Na
Slide 28: State of the Art Manufacturing Facilities
State of the Art Manufacturing Facilities Laminates (Behror, Nalagarh) Decorative Veneers (Behror) Engineered Wood Flooring Engineered Doors* (Behror) (Behror) * To be launched by Q1 –FY16 28
Slide 29: Growth in Laminates...
Growth in Laminates... 180% 40% 20% Infrastructure 100% 20% available for 40% New Press Lines incremental capacity added for additional with minimal 10.02 Mn Current Utilisation 2 mn Sheets at the incremental cost sheets at 110% achieved Cost of Rs 20 Crores from Debottlenecking To be operational by
Slide 30: India Network Presence – The Core strength
India Network Presence – The Core strength Greenlam has the widest & largest sales and distribution network in India Pan India Presence With 9 Company owned large Regional Distribution Centers 29 Branch offices Over 500 sales staff 12000+ distributors, dealers & retailers – Largest in the country 30
Slide 31: Global Network Presence
Global Network Presence 10 International offices Over 100+ overseas employee 5 Company operated warehouses including 3 subsidiaries 100+ Countries Greenlam is the only company from India to have the largest sales and distribution network Globally 31
Slide 32: Awards & Recognitions
Awards & Recognitions Power Brands Master Brand 100 Most valuable brand Largest exporter award 1st Non American brand to get Green Guard Certification 1st Company in the country to trade in FSC® product 32
Slide 33: Green Credentials...
Green Credentials... … can help Green Building Project developers take up to 10 LEED credit points 33
Slide 34: Presence across: B2B & B2C
LIZ? Greenlam Industries Limited Presence across: B2B & B2C We help you deliver happinsss i = Designing your new home made simple
Slide 35: What Lies Ahead…
What Lies Ahead… An Ocean Of Opportunities
Slide 36: India Opportunities – Laminates & Allied
India Opportunities – Laminates & Allied Laminates Market Size in Rs Crores Decorative Laminates 10% 18% New product launches will help in increasing the volume and Market Market value mix Share Share 4,200 3,400 20% Capacity expansion will help us gain more market share 800 3,400 1,400 2,000
Slide 37: Opportunities – Decorative Veneers & Allied
Opportunities – Decorative Veneers & Allied India Focused Decorative Veneers Decorative Veneer Market Size in Rs Crores Expansion into newer product lines 11% 16% Largest capacity in the country Market Market Share Share Brand enjoys, high equity among specifer segment 800 250 Recognised as
Slide 38: Opportunities – Engineered Wood Floors
Opportunities – Decorative Veneers & Allied India Focused Engineered Wood Floors We are the first and only manufacturer of Engineered Wood Floors in the country The Market is estimated at 2Mn.sqm Mikasa‟s Installed capacity is 1Mn.Sqm Category is withnessing a 20-25% growth No organised pl
Slide 39: Opportunities – Engineered Doors
Opportunities – Decorative Veneers & Allied India Focused Engineered Doors (Door + Frame) Door (including flush door) market is estimated at 24mn annually Engineered Finished Door category is witnessing a 20-25% growth Greenlam is offering for the first time in India, ready to fit factory made
Slide 40: Triggers - Domestic Environment
Triggers - Domestic Environment Per Capita Income (Rs „000) 60% of Indian population below 30 years of age * 75 69 Expanding retail penetration along with increasing 62 54 46 aspirational value in rural demand 36 41 Growth in Real Estate led by lower interest rates to provide additional delta
Slide 41: International Opportunities – Laminates & Allied
International Opportunities – Laminates & Allied Laminates industry globally is at $7 Bn growing by 2% p.a. Indian laminate exports Rs 800 Crs According to a study done by Freedonia Group the industry is expected to grow by 5.6% per year till 2018 reasons being Greenlam • Increasing manufacturin
Slide 42: Asia – Pacific (Excluding India)
Asia – Pacific (Excluding India) • Asia Pacific market covers 15 countries • Market Size – $1.5 Billion • This market is growing by 5% • Greenlam has 7 offices in the region • Major resources deployed in Asia PAC with higher scope for growth 42
Slide 43: Other Markets
Other Markets European market • Europe market covers 16 countries • Market growth is stagnant • Office in UK North & South America markets • Covers 11 countries • This market is growing by 2% • 2 Offices in United States 43
Slide 44: Financials
Greenlam Industries Limited Financials
Slide 45: Highlights: Q3FY15
Highlights: Q3FY15 Revenue grew by 9.7 % to Rs 215 Crores Segmental Decorative Veneer & EBIDTA margin were at 10.6% against 12.1% in Q3FY14 Allied 10% PAT margin contracted to 2.2% from 4.5% in Q3FY14 Laminates & Allied 90% Revenue EBIDTA PAT +10% -4% -46% 196 215 24 23 9 5 Q3FY14 Q3FY15 Q3FY1
Slide 46: Highlights: Q3FY15
Highlights: Q3FY15 Highest ever revenue in this quarter, even after operations were affected for nearly 10 days due to demerger process in November Highest ever production of Laminates in this quarter Highest Domestic & Export Sales in this quarter Stabilized production of Engineered Wood fl
Slide 47: Highlights: 9MFY15
Highlights: 9MFY15 Revenue grew by 6.6% to Rs 613 Crores Segmental Decorative EBIDTA margin were at 11.4% against 12.2% in 9MFY14 Veneer & Allied 11% PAT contracted to 3.6% from 4.0% in 9MFY14 Laminates & Allied 89% Revenue EBIDTA PAT +7% 0% -4% 576 613 70 70 23 22 9MFY14 9MFY15 9MFY14 9MFY15
Slide 48: Laminates & Allied Products
Laminates & Allied Products Rs. Crores Q3 FY15 Q3 FY14 YoY % 9MFY15 9MFY14 YoY% FY14 Net Sales of Laminates & 192.9 547.7 Allied Products EBIT Margin % 7.3% 6.9% Laminates Annual Capacity 10.02 10.02 - 10.02 10.02 - 10.02 (Mn. sheets.) Production 3.02 2.77 9.0% 8.26 8.06 2.5% 10.76 (Mn. sheets.) Sal
Slide 49: Decorative Veneers & Allied Products
Decorative Veneers & Allied Products Rs. Crores Q3 FY15 Q3 FY14 YoY % 9MFY15 9MFY14 YoY% FY14 Net Sales of Decorative 21.9 65.7 Veneers & Allied Products EBIT Margin % 0% * 15.0% Decorative Veneers Annual Capacity (Mn sqmt) 4.20 4.20 - 4.20 4.20 - 4.20 Production (Mn. sqmt) 0.22 0.25 (13.6%) 0.73 0.
Slide 50: Profit and Loss
Profit and Loss Rs. Crores Q3 FY15 Q3 FY14 YoY% 9M FY15 9M FY14 YoY% FY14 Revenue 214.8 195.8 9.7% 613.4 575.5 6.6% 768.8 Raw Material 130.1 114.2 13.9% 373.0 343.5 8.6% 456.9 Employee Cost 20.8 18.0 15.6% 59.1 56.8 4.0% 74.1 Other Expenses 41.0 39.8 2.9% 111.2 105.2 5.8% 144.5 EBITDA 22.9 23.7 (3.6
Slide 51: Balance Sheet
Balance Sheet Rs. Crores Dec - 14 Mar - 14 Rs. Crores. Dec - 14 Mar - 14 Shareholder‟s Fund 223.8 202.5 Non-Current Assets 331.5 291.8 Share capital 12.1 Fixed assets 304.3 253.0 Reserves & Surplus 211.7 202.5 Non-Current Investments 17.5 17.5 Non-Current Liabilities 160.0 159.2 Other Non-Current As
Slide 52: Growth Charts
Growth Charts Revenue (Rs Crores) PAT (Rs Crores) 769 37 613 22 +14% +1% +46% -53% 213 215 10 186 7 5 FY14 1QFY15 2QFY15 3QFY15 9MFY15 FY14 1QFY15 2QFY15 3QFY15 9MFY15 52
Slide 53: Growth Charts
Growth Charts Domestic (Rs Crores) Exports (Rs Crores) 352 357 317 256 +16% -2% +12% +6% 126 123 108 92 78 87 FY14 1QFY15 2QFY15 3QFY15 9MFY15 FY14 1QFY15 2QFY15 3QFY15 9MFY15 53
Slide 54: Performance Ratios
Performance Ratios ROCE * Net Working Capital Days 14.3% 13.2% 89 59 FY14 9MFY15 FY14 9MFY15 FY14 9MFY15 FY14 9MFY15 Revenue 768.8 613.4 Inventory 89 84 EBIT 74.4 48.9 Debtors 63 55 PAT 37.2 21.9 Creditors 63 79 Capital Employed 519.8 494.3 Net Working Capital 89 59 * ROCE calculated on annualised b
Slide 55: Way ahead....
Way ahead…. Continue the Growth momentum in Laminate by maximizing the utilization of existing capacity 20% expansion of laminate capacity from 3rd Quarter of FY 2016 Continue expansion of sales & distribution network Expand the Decorative veneer category by adding new varieties Enhance th
Slide 56: Thank You
Thank You For further information, please contact: Company : Investor Relations Advisors : Greenlam Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: U21016AS2013PLC011624 CIN: U74140MH2010PTC204285 Mr. Ashok Sharma - CFO Ms. Ruchi Rudra/ Ms. Neha Shroff Email: ashok.sharma@greenlam.com rruch
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