Jsw Dulux Ltd · NSE:JSWDULUX
Jsw Dulux — Akzo Nobel India — Shareholder Meeting (July 2016)
27 slides from Jsw Dulux's shareholder meeting presentation, Jul 26, 2016
Slide 1: Akzo Nobel India – Annual General Meeting
Akzo Nobel India – Annual General Meeting 26th Jul 2016 Kolkata
Slide 2: Contents
Contents 1. About AkzoNobel 2. Indian Business Environment 3. Akzo Nobel India Performance 4. 5th Anniversary of Merger 5. Today and Tomorrow 2
Slide 3: 3
3
Slide 4: Indian Business Environment
Indian Business Environment 4
Slide 5: Macroeconomic Indicators
Macroeconomic Indicators Bank Rate CPI Brent Crude Lower Interest Rates Volatile Inflation Low Crude Prices 9% 7.75% 106.4 8.8% 5.8% 7% 45.9 INR vs. USD PMI CSI Rupee Still Weighed Down Momentum picks Growth slows 67.3 51.4 51.7 62.1 2.8% 1.6% 5
Slide 6: Government Programs – Impact on Coatings & Chemicals Industry
Government Programs – Impact on Coatings & Chemicals Industry Protective Chemicals Powder Marine GDP Growth Wood Metal Deco VR SC >7% Tax Implementation of GST, Labor Reforms Reforms, REITs and InvITs a a a a a a a a a Infrastru Low Cost Airports, Diamond cture Quadrilateral, Sagar Mala project a a
Slide 7: …However, Mixed Signals
…However, Mixed Signals India continues to be on a growth track at 7.6% during 2015-16 world’s fastest-growing large economy Current market conditions likely to prevail in the near term. Growth in coatings industry likely to pick up from Oct 2016 7
Slide 8: Akzo Nobel India Performance
Akzo Nobel India Performance 8
Slide 9: The year gone by…
The year gone by… Revenue up 8% EBIT up 20% Rs. 27,401 mn Rs. 2,514 mn Rs. 25,270 mn Rs. 2,088 mn 2014-15 2015-16 2014-15 2015-16 PAT up 8% Higher Return on Investment (ROI) Rs. 1,863 Rs. 2,021 mn 44% mn 35% 2014-15 2015-16 2014-15 2015-16 9
Slide 10: Innovations in Coatings Let’s Color!
Innovations in Coatings Let’s Color! New propositions Targeting the untapped opportunities VT Diamond Weathershield WS All Weathershield Promise Primer Glo Signature Weather Velvet Touch Powerflex VT Platinum Glo Mass Market : Complete range for Promise Exterior SuperCover Satin WS express Dulux Sup
Slide 11: Innovations in Coatings: Fortifying our market position
Innovations in Coatings Fortifying our market position • Digital Color Matching Eco Friendly Operation Excellence • Green Energy Initiative Technology Leadership • Increase the production Technology capacity by 18% Installed solar energy • Floating Dock project for the Indian Navy system to cater
Slide 12: Innovations in Chemicals
Innovations in Chemicals Sustainable, cost-effective and safe solutions Sustainable savings ELOTEX™ CAST - Revolutionary Salt licks – first in Insulin technology for technology Agrochemicals global brand in India Production gypsum floorings CiD Partnering agro majors • Free-choice salt licks Partner
Slide 13: Growing importance of AkzoNobel India as an Export Hub
Growing importance of AkzoNobel India as an Export Hub Export of Dramatone and VT Finishes to South Asia Export of coil & extrusion coatings to Asia, Middle East and Africa Export of Protective Coatings to Southeast Asia 13
Slide 14: 5th Anniversary of Merger…
5th Anniversary of Merger… 14
Slide 15: How we have evolved…
How we have evolved… May 2011 Sep 2011 May 2012 Today Merger Valuations Merger A portfolio to proposed prepared approved reckon with Valuations AN India prepared by PwC Valuations AN prepared Coatings by BMR Advisors AN Car Refinishes Swap ratio AN Chems by Grant Thornton 15
Slide 16: Drivers for Merger
Drivers for Merger Strengthen Organic Growth Reward our Scale benefit shareholders Growing Invest in growth sustainably 16
Slide 17: Strengthen Organic Growth
Strengthen Organic Growth GM (INR mn) 11% CAGR 12,714 8% CAGR 11,207 10,395 9,365 8,488 2011-12 2012-13 2013-14 2014-15 2015-16 EBIT (INR mn) 2,514 16% CAGR 2,088 1,379 1,499 1,482 2011-12 2012-13 2013-14 2014-15 2015-16 17
Slide 18: Scale Benefit
Scale Benefit Net Fixed Assets (INR mn) 5,331 5,283 5,297 4,605 3,711 2011-12 2012-13 2013-14 2014-15 2015-16 18
Slide 19: Invest in Growth
Invest in Growth INR 470 Cr* investment towards growth since Merger Coatings Chemicals New coil & sp. Brownfield Eco-efficient Packaging Agrochemicals Expansion plastic expansion at Gwalior Coatings lab in Mumbai plans coatings in Hyderabad factory production Bangalore facility in Thane 2011 2011 20
Slide 20: Growing sustainably
Growing sustainably Reducing our environmental footprint Total waste per ton produced [kg/t] Total Fresh Water Intake per ton [m3/t] 7.62 7.83 0.70 0.62 0.63 0.61 6.00 0.56 4.78 4.97 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Total CO2 emission per ton [kg/t] Energy [GJ/t] 55.42 0.70 47.06 42
Slide 21: Rewarding our shareholders
Rewarding our shareholders Over 100% return over 5 years BSE Return: 39% BSE Performance Mar 31, 2011 Jul 22, 2016 Appreciation: 85% ANI Stock Performance (INR) Mar 31, 2011 Jul 22, 2016 80 75 70 * ANI Dividend per share (INR) 20 20 20 11- 12 20 12- 13 20 13- 14 20 14- 15 20 15- 16 2011-12 2012-13 2
Slide 22: Demonstrating the power of “One AkzoNobel”
Demonstrating the power of “One AkzoNobel” Strengthen Organic Growth Improving profitability Reward our Scale benefit shareholders Higher Over 100% efficiencies return Growing sustainably Invest in growth Doing more with INR 470 Cr less investment 22
Slide 23: Today and Tomorrow…
Today and Tomorrow… 23
Slide 24: Where we stand today…
Where we stand today… “Right to grow” - conducive policies bolstering a strong performance - harnessing synergies as an integrated coatings company profitable growth - targeting a double-digit volume growth for FY17 Innovations to fortify market position - Dulux Velvet Touch Diamond Glo, Weathersh
Slide 25: Concluding Remarks
Concluding Remarks • India to maintain its momentum; poised to grow at ~7.5% • Sustained growth expectations for the coatings industry (CAGR 9% - 11%) • Akzo Nobel India to continue leveraging merger synergies • Inculcate operational efficiencies with sustainability • Touching peoples’ lives through
Slide 26: Thank you!
AkzoNobel Thank you!
Slide 27: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements which address such key issues as AkzoNobel’s growth strategy, future financial results, market positions, product development, products in the pipeline, and product approvals. Such statements should be carefully considered, and it should be