Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — CLSA India Forum 2013
37 slides from Asian Paints's conference presentation, Nov 19, 2013
Slide 1: CLSA India Forum, Gurgaon
CLSA India Forum Gurgaon November 19, 2013
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 • 25 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
So asianpaints Changing with times So . asianpaints asianpaints asian paints 2 I 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 South East Asia South 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 Capital Markets continued to be volatile. • Uncertainty on tapering of the Fed Quantitative easing program impacted the currency and bond markets, more particularly in the emerging markets. • Rupee took a severe beating to touch lows of 68.4 in late August before recove
Slide 18: Presentation structure
Presentation structure Economic Environment Company Performance Business Review Risks and Outlook
Slide 19: Corporate Highlights
Corporate Highlights • Standalone Net Sales & Op. Income for the quarter increases by 18.2% • Consolidated Net Sales & Op. Income for the quarter increases by 18.3% • H1 Standalone Net Sales & Op. Income up by 15.6% • H1 Consolidated Net Sales & Op. Income up by 15% • Interim Dividend of 110% (Rs 1.
Slide 20: Standalone: Q2 & H1 – FY 2014
Standalone : Q2 & H1—FY 2014 STANDALONE | Q2-FY14 | Q2-FY13 | Growth % (Rs Crs) Income from 2532 2142.8 18.2% Operations PBDIT 504.2 360.4 39.9% PBDIT % 19.9% 16.8% PAT 310.6 223.8 38.8% | STANDALONE | H1-FY14 | H1-FY13 | Growth % (Rs Crs) Income from 4851.7 4196.8 15.6% Operations PBDIT 975.6 790.3
Slide 21: Standalone Income from Operations – YoY Growth
Standalone Income from Operations – YoY Growth Note: Industrial business of APL was transferred to AP Coatings in June 2011. Hence, numbers for the period after June 2011 needs to be interpreted accordingly.
Slide 22: Standalone: Q2 & H1 – FY 2014
Standalone : Q2 & H1 – FY 2014 • Depreciation for the 2nd quarter (at Rs. 52 crores) is substantially higher as compared to the corresponding period (Rs. 29 crores) in the last year. • This is primarily on account of Rs. 21 crores depreciation in the 2nd quarter for our newly commissioned plant at K
Slide 23: Consolidated: Q2 & H1 – FY 2014
Consolidated : Q2 & H1 – FY 2014
Slide 24: Dividend
DIVIDEND • In FY 2013-14 • Interim Dividend of Rs. 1.10 per share (110%) • In FY 2012-13 • Total Dividend of Rs. 46.00 per share (460%) • Final dividend of Rs. 36.50 per share • Interim dividend of Rs. 9.50 per share • Payout ratio (including Dividend Distribution Tax) of 49.2% for the year
Slide 25: Presentation structure
Presentation structure Economic Environment Company Performance Business Review Risks and Outlook
Slide 26: Business Review – Decorative Business
Business Review – Decorative Business • The Decorative Paints business in India did better than Q1 and registered good double digits volume growth. • Good growth witnessed across geographies especially in Tier 2 & Tier 3 cities. Price Revision • In the quarter ended Sept 30, 2013, we increased price
Slide 27: Business Review – Industrial Business
Business Review – Industrial Business • In the Industrial Coatings Business (AP PPG), demand conditions remained subdued due to the lack of any major projects in the current year with many expansion projects and capital expenditure getting postponed. • Continued financial crunch in major infrastruct
Slide 28: Business Review – International Business
Business Review – International Business • The International business registered good growth with volume sales exceeding 1 lac KL mark in the first six months of FY 2014. • Middle East and Asia have done well even though some countries continued to be affected by political events and macro economic
Slide 29: Presentation structure
Presentation structure Economic Environment Company Performance Business Review Risks and Outlook
Slide 30: Risk & Outlook
Risk & Outlook • Going forward, Domestic demand is expected to remain challenging and uncertain. • Rural demand, however, is expected to remain robust • Some favorable movement in fuel prices and softening of interest rates for consumer loans could create festive demand for automotives. • Continued
Slide 31: Thank you
So asianpaints Thank you
Slide 32: Annexures
So asianpaints Annexures
Slide 33: Standalone P&L Q2 FY 2013-14
So asianpaints Standalone P&L Q2 FY 2013-14 (Rs Crores) Q2 13-14 | Q2 12-13 Gr % Total Income from Operations 2,532.0 2,142.8 18.2% Material Cost 1,407.7 1,268.8 10.9% Employee Remuneration 119.3 97.8 22.0% Other Expenses 548.7 438.8 25.1% PBDIT 456.4 337.4 35.3% Depreciation & amortisation Exp. 51.
Slide 34: Consolidated P&L Q2 FY 2013-14
Consolidated P&L Q2 FY 2013-14
Slide 35: Standalone P&L H1 FY 2013-14
Standalone P&L H1 FY 2013-14 So asianpaints (Rs Crores) H1 13-14 | H1 12-13 Gr % Total Income from Operations 4,851.7 4,196.8 15.6% Material Cost 2,702.5 2,431.0 11.2% Employee Remuneration 254.6 202.2 25.9% Other Expenses 1,019.0 621.5 24.0% PBDIT 875.6 742.2 18.0% Depreciation & amortisation Exp.
Slide 36: Consolidated P&L H1 FY 2013-14
Consolidated P&L H1 FY 2013-14
Slide 37: Key Ratios
So . asianpaints Key Ratios Standalone Consolidated % to Operating Income | H1 13-14] H1 12-13 | H1 13-14] H1 12-13 Material Cost / Net Sales 557% 57.0% 56.8% 59.0% PEDIT / Met Sales 12.0% 17.7% 16.4% 16.0% PET / Net Sales 1¥.7% 17.1% 15.2% 15.1% PAT / Net Sales 12.3% 11.9% 10.5% 10.46% For Consolid