Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Investor Presentation (March 2018)
42 slides from Kansai Nerolac Paints's investor presentation, March 2018
Slide 1: Kansai Nerolac Paints Limited Corporate Presentation
Kansai Nerolac Paints Limited Corporate Presentation March 2018 March 2018
Slide 2: Corporate Overview
CORPORATE OVERVIEW March 2018
Slide 3: Kansai Nerolac Paints Ltd.
Kansai Nerolac Paints Ltd. Parameter Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial Paints Turnover (FY17 - standalone) Rs. 49360 Mn. PBT (FY17 - standalone) Rs. 7590 Mn. Market Cap (31st March 2017) Rs. 203680 Mn.
Slide 4: Company Vision
Company Vision To leverage global technology, for serving our customers with superior coating systems built on innovative and superior products and world class solutions, to strengthen our leadership in Industrial coatings and propel for leadership in Architectural coatings, all to the delight of ou
Slide 5: Company Core Values
Company Core Values • Committed to provide the best services to customer driven by quick Response turnaround time, attitude and high customer orientation • Constant Endeavor to drive innovative approach through out the Innovation organization Team • Open and lateral channels of communication within
Slide 6: Strong Legacy 97 Years History
Strong Legacy 97 Years History Year Key Milestone 1920 Started as Gahagan Paints and Varnish Co. Ltd 1957 Changed name to Goodlass Nerolac Paints Ltd. 1976 Became Part of TATA group 1986 Acquisition of stake by Kansai Paints, Japan 2000 Became subsidiary of Kansai Paints, Japan 2006 Change of name t
Slide 7: Kansai Paints, Japan
Kansai Paints, Japan • Japan’s largest paint company • 9th largest Paint company globally • Among top 5 global automotive paint companies • Presence in 80 countries via 152 companies • Gross sales over 3B USD March 2018
Slide 8: Shareholding Pattern (31st Dec, 17)
Shareholding Pattern (31st Dec, 17) KPJ Institutional Non Institutional 9.43% 15.58% 74.99% March 2018
Slide 9: Industry Overview
INDUSTRY OVERVIEW March 2018
Slide 10: Indian Economy
Indian Economy Political Stability Fiscal Prudence Series of reforms Ease of Doing Business Ranking Pro- Industry environment Strong Governance 2015 2016 2017 2018 142 130 130 100 *Source: World bank Increasing GDP Increasing Per Capita Income *Source: World bank (in USD) March 2018
Slide 11: Indian Paint Industry Facts
Indian Paint Industry Facts Parameter Facts Size Rs. 430000 Million (approx) Growth Rates Double digit since 1991 Organized : Un-organized Market 78:22 Per Capita consumption 4 kg Favorable demographics Rapid urbanization Future Growth Drivers Make in India Affordable Housing March 2018
Slide 12: Government Programs – Impact on Coatings & Chemical Industry
Government Programs – Impact on Coatings & Chemical Industry GDP Growth Protective Powder >7% Wood Deco Auto Tax Implementation of GST, Labour Reforms Reforms, REITs and InvITs Low Cost Airports, Diamond Infrastructure Quadrilateral, Sagar Mala Project Urban 100 Smart Cities, Upgraded Development
Slide 13: Kansai Nerolac Paints Ltd
KANSAI NEROLAC PAINTS LTD March 2018
Slide 14: Business Markets
Powder Coatings General Industrial High performance Coatings Coatings Emerging Segment Business (Cons. Chemicals / Floor Coating) Markets Decorative Coatings Automotive Coatings Auto Refinish (ARF) Coatings March 2018
Slide 15: Decorative Coatings
Decorative Coatings Exterior Economy Popular Premium Super Premium Interior Popular Premium Economy Decorative Range: Enamels, Distemper, Emulsions, Primers, Putty, Wood finishes March 2018
Slide 16: Automotive Coatings
Automotive Coatings Automotive : Leadership with Full system (Primer+ Top Coat + Clear Coat, including plastic paints) March 2018
Slide 17: General Industrial Coatings
General Industrial Coatings Sewing Machine Drums & Barrel Gas Cylinder Helmet Coating Security Equipment ZIp Electrical Equipments Agricultural Equipment Generator Sets Pre Engineering Building General Industrial : Market leader with wide range to cater to a variety of Industries March 2018
Slide 18: High Performance Coatings
High Performance Coatings Petroleum / Petrochemical Metal Industries Fertilizer Industries Infra Cement Industry Railways High Protective Coatings: Wide range to tackle corrosion protection March 2018
Slide 19: Powder Coatings
Powder Coatings Light Fixtures Electrical Equipments Fans Auto Ancillary Refigerators Washing Machine Air Conditioner Microwaves Powder Coatings: Leadership through a variety of products March 2018
Slide 20: Selective List of Customers
Selective List of Customers Automotive Coatings And many more... March 2018
Slide 21: Selective List of Customers
Selective List of Customers General Industrial Coating High Performance Coating Powder Coating And many more... March 2018
Slide 22: International
International Nepal • Operations Started in 2012 • Fastest growing company • 3rd biggest player in Nepal Amt Rs NPR Mn On Acquisition March 2017 Turnover 250.0 921.0 PBT (10.0) 112.0 Sri Lanka • Operations Started in 2017 • Tie-up with one of the largest conglomerates in Lanka March 2018
Slide 23: Known for Innovation - Branding
Known for Innovation - Branding Products Pioneering concepts (Lead free, Low VOC, Healthy Home Paints) Celebrity Endorsement Use of Social, Digital & Mobile Use of Sports for Endorsement Modern Retail March 2018
Slide 24: Known for Innovation - Technology
Known for Innovation - Technology Collaborations R&D Prowess Technology Innovations Technology Innovations March 2018
Slide 25: Known for Innovation - IT
Known for Innovation - IT Supply Dealer Vendor ERP CRM Ariba EHS HR Chain Portal Portal Analytics Engine Completely IT Enabled Business running on SAP HANA (Early Adopters of New Technology) March 2018
Slide 26: Manufacturing Facilities
Manufacturing Facilities Manufacturing Facilities Japanese Technology British Safety Award ZERO liquid Discharge OHSAS 18001 ISO 14001 March 2018
Slide 27: Capacity
Capacity Year Addition Planned in KL/MT Annual Capacity in KL/MT Existing 2016-17 3,64,000 Planned Addition 2017-18 67,000 431,000 2018-19 53,000 484,000 2019-20 484,000 2020-21 60,000 544,000 3 Green field Projects in Pipeline March 2018
Slide 28: Distribution reach
Distribution reach 109 BRANCHES PAN INDIA 20000+ DEALER NETWORK March 2018
Slide 29: Environmental Initiatives
Environmental Initiatives Publishing Report since 2005. Sustainability report as per GRI Implemented SAP EHS in 2011 guidelines since 2012 Water and Carbon Foot print Zero Liquid discharge at all tracking manufacturing facilities Products meeting VOC regulation Reduction in Co2 emissions Green Progr
Slide 30: People Initiatives
People Initiatives Young Vibrant organization with Professionally run & managed average age of organization 35 Core Values & Competency Transparent Performance Framework defined Management System March 2018
Slide 31: Our CSR Activities
Our CSR Activities March 2018
Slide 32: Strength of the Nerolac brand
Strength of the Nerolac brand One of India’s most trusted Brand March 2018
Slide 33: Few Important Awards
Few Important Awards -2016 -2005 -2017 -2006 -2016 -2015 -2008 -2017 Corporate Customer -2008 -2006 - (2008 - 2012) -2015 Brand Marketing March 2018
Slide 34: Few Important Awards
Few Important Awards -2010 -2006 -2009 -2012, 2014, 2017 -2010 Manufacturing Environment -2010, 2011 -2010 -2016 Product March 2018
Slide 35: Few Important Awards
Few Important Awards -2012, 2014, 2016 -2014 -2014 -2008 -2017 -2008 -2005 -2005 Information technology Leadership -2007 -2009 Reports March 2018
Slide 36: Financials
Ig” NEROLAC FINANCIALS
Slide 37: Financial Ratios
Financial Ratios Sales (in Rs Mn) 60000 49361 50000 46044 42120 40000 37390 33760 30000 20000 10000 0 13 14 15 16 17 March 2018
Slide 38: Financial Ratios
Financial Ratios 8000 PBDIT (in Rs Mn) 7300 7000 5800 6000 5000 4448 4000 3621 3361 3000 2000 1000 0 13 14 15 16 17 20.0 PBDIT (%) 16.1 15.0 13.7 11.8 12.5 11.4 10.0 5.0 0.0 13 14 15 16 17 March 2018
Slide 39: Financial Ratios
Financial Ratios Shareholder Funds (in Rs Mn) RETURN ON CAPITAL EMPLOYED 30000 28053 (%) 25029 25000 30 26.9 26.8 23.9 24.2 20000 25 20.8 15970 12860 14230 20 15000 15 10000 10 5000 5 0 0 13 14 15 16 17 13 14 15 16 17 RETURN ON NET WORTH (%) EARNINGS PER SHARE (EPS) 20.0 18.5 18.0 10.0 9.4 17.8 17.0
Slide 40: Financial Ratios
Financial Ratios Market Capitalisation (in Rs Dividend (%) Mn) 350.0 305.0 300.0 250000 300.0 203685 200000 250.0 151706 200.0 150000 116514 140.0 150.0 110.0 110.0 100000 66700 63010 100.0 50000 50.0 0 0.0 13 14 15 16 17 13 14 15 16 17 March 2018
Slide 41: Snap Shot
Snap Shot Year 2001 Year 2017 CAGR Sales Rs. mn. 6830 49360 13.2 PBDIT Rs. mn. 480 7310 18.5 PBT Rs. mn. 330 7590 21.6 EPS Rs 0.44 9.39 21 times Market Capitalization 1380 203680 147 times Rs Mn Dealers Nos. 8000 18300 CCD Penetration Nos. 1200 14000 No. of Distribution 60 102 Centers Nos. March 201
Slide 42: Thank You
Ig” NEROLAC Thank You March 2018
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