Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Q4 FY2019 Earnings Presentation
22 slides from Kansai Nerolac Paints's earnings presentation, May 7, 2019
Slide 1: Investor Presentation Conference Call Intimation
Page 1 of 22 i-ctKANSAl. NEROLAC PAINTS LIMITED May 7, 2019 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 -400 001 Mumbai - 40
Slide 2: Investor Presentation 2018-19
Page 2 of 22 Investor Presentation 2018-19 May 2019
Slide 3: Disclaimer
Page 3 of 22 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 materially from the current views
Slide 4: Agenda
Page 4 of 22 Agenda Business Environment FY 18-19* Financial Performance FY 18-19* Business Review FY 18-19* Risks and future outlook *The details in the presentation are for the period April – March 2019
Slide 5: Business Environment 18-19
Page 5 of 22 Business Environment 18-19 Reduction of GST rates from 28% to 18% is positive for the industry Demand was a concern in fourth quarter Automotive industry saw a downward trend from quarter 3 High inflationary trend in the first half of the year followed by volatility in the secon
Slide 6: Agenda
Page 6 of 22 Agenda Business Environment FY 18-19* Financial Performance FY 18-19* Business Review FY 18-19* Risks and future outlook *The details in the presentation are for the period April – March 2019
Slide 7: Financials Q4 and 18-19
Page 7 of 22 Financials Q4 and 18-19 Rs. Crore Q4 Q4 Standalone % Gr 1718 1819 % Gr 2018 2019 Net Sales 1098 1142 4.0 4570* 5139 12.5 EBITDA 169 150 -11.4 790 742 -6.0 EBITDA % of Net Sales 15.4 13.1 17.3 14.4 PAT 106 93 -12.3 516 467 -9.5 PAT % of Net Sales 9.6 8.0 11.3 9.0 * Net sales for FY 17-18
Slide 8: Financial Analysis 1819
Page 8 of 22 Financial Analysis 1819 Positive Factors Increased saliency of Decorative Increased emulsion saliency Cost increase in decorative could be passed but with lag effect, and in industrial it was passed on partially Cost Reduction efforts across the company Negative Factors Ad
Slide 9: Agenda
Page 9 of 22 Agenda Business Environment FY 18-19* Financial Performance FY 18-19* Business Review FY 18-19* Risks and future outlook *The details in the presentation are for the period April – March 2019
Slide 10: Decorative 1819
Page 10 of 22 Decorative 1819 Double digit growth Cumulative price increase around 6.2% due to increase in input prices Continued increase in Dealer Network to above 24,000 with CCD Machine penetration of around 70% Increase in Emulsion salience consistently New products in Premium Categor
Slide 11: Decorative 1819
Page 11 of 22 Decorative 1819 Soldier brand continued its high growth path Introduced paint application tools in select markets Entry into Adhesives and Construction Chemicals Growing Brand Launch of marketing campaign “Little bit of Nerolac”, introducing Mr. Ranveer Singh as the new face
Slide 12: Decorative 1819
Page 12 of 22 Decorative 1819 ‘Little Bit of Nerolac’ Campaign with Ranveer Singh Nerolac Website in seven different languages IPL 12th Man Nerolac Colour Trails
Slide 13: Innovation
Page 13 of 22 Innovation PRODUCTS •Nerofix •Gloria •Impressions Ultra HD, Ultra Fresh •TopGuard •Excel Mica Marble CONSUMERS • Increased Reach • Increased Engagement • Inspiration marketing INFLUENCERS • Tech led Training • Loyalty Programs Technology Solutions BRAND ASSETS • VR & Chatbot • Nerolac
Slide 14: Media Snapshot
Page 14 of 22 Media Snapshot Dominated News: Dominated Cricket: • High visibility sponsorships • Innovations on air programing • Astons, Jingle etc. Pitch report segment Ultra motion shots
Slide 15: Industrial 1819
Page 15 of 22 Industrial 1819 Automotive Increase in Market share Introduced new technologies for productivity improvement, process improvement and energy saving Price Increase not in line with raw material inflation Auto-refinish continues to grow at accelerated pace Performance Coating
Slide 16: International Operations 1819
Page 16 of 22 International Operations 1819 Nepal Good growth in Topline and Bottomline Lanka Good growth in sales Break-even on a horizon of 2-3 years Bangladesh Acquired RAK Paints Bangladesh with a diverse range of products in Decorative and Protective coating Significant improvem
Slide 17: Operations 1819
Page 17 of 22 Operations 1819 Procurement: Rise in crude oil accelerated the cost of raw materials leading to Inflationary pressures Tight availability of key raw materials continued New production facilities: Sayakha (Gujarat) : Operations started Goindwal Sahib (Punjab) : Advanced stag
Slide 18: Operations 1819
Page 18 of 22 Operations 1819 Strengthening IT: KNPL has forayed into Machine Learning technologies, becoming the first paint company in India to do so using the SAP Leonardo platform Integration of Robotic Process Automation (RPA) to support key operations Driving Sustainability Agenda: I
Slide 19: Key Awards & Recognition 1819
Page 19 of 22 Key Awards & Recognition 1819 Certified as a Great Place to Work by GPTW Received Vendor excellence awards from Honda Motorcycles & Scooters India(HMSI) and Bharat Heavy Electricals Limited (BHEL) Economic Times recognized Kansai Nerolac Paints as one of the Best Brands 2018-19
Slide 20: Agenda
Page 20 of 22 Agenda Business Environment FY 18-19* Financial Performance FY 18-19* Business Review FY 18-19* Risks and future outlook *The details in the presentation are for the period April – March 2019
Slide 21: Risks and Outlook
Page 21 of 22 Risks and Outlook Risks: High volatility in Forex and Crude prices Outlook: Improvement expected in automotive demand in second half of the year Prediction of near normal monsoon, growth in the agriculture sector and reduced interest rates in the economy should provide necess
Slide 22: Thank You
Page 22 of 22 2g” NEROLAC Thank You
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