Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — Investor Presentation (May 2017)
65 slides from Greenlam Industries's investor presentation, May 2017
Slide 1: Investor Presentation May 2017
Investor Presentation May - 2017
Slide 2: Safe Harbor
Safe Harbor 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 s
Slide 3: Team
Greenlam Industries Limited
Slide 4: Board Members
Board Members Mr. Shiv Prakash Mittal Mr. Saurabh Mittal Non Executive Chairman Managing Director & CEO Ms. Parul Mittal Mr. Vijay Kumar Chopra Director Design & Marketing Independent Director Ms. Urvashi Saxena Ms. Sonali Bhagwati Dalal Independent Director Independent Director 4
Slide 5: Management Team
Management Team Saurabh Mittal Parul Mittal Managing Director & Director Design & Marketing CEO Ashok Sharma B L Sharma Prashant Srivastava Alex Joseph President - Plant Vice President - Sr. Vice President - Chief Financial Officer Operations HR, CSR, & Admin Marketing Anuj Sangal Anil Tyagi Shivaji
Slide 6: International Team
International Team Vaibhav Sharma Vishal Kapur Dittakan Tippawan Director, US & COO, UK COO, APAC Director, Thailand 6
Slide 7: A Value Driven Organisation
A Value Driven Organisation Trust Performance Learning Speed and Agility Team Work 7
Slide 8: Who we are
Greenlam Industries Limited
Slide 9: Who we are
Who we are We are in the business of Transformation of space, with over 2 decade of experience, raising the bar of excellence Laminate & Allied Veneer & Allied Laminates Compact Panel Sturdo MFC Decorative Veneer Mikasa Floor Mikasa Door Standard Compact Panel Natural Veneer Melamine Faced Engineere
Slide 10: Leadership
Leadership Among World’s Top 3 Laminate Producers Asia’s Largest Laminate Brand India’s No.1 Decorative Laminate & Veneer Brand India’s Largest Exporter of Laminates India’s only manufacturer of Engineered Wood Flooring India’s 1st organised manufacturer of Engineered Door sets (Door & Frame) 10
Slide 11: Product Milestones
Product Milestones 2017 Engineered Doors & Frames • Engineered Doors Teak and Engineered Veneer • Decorative Natural • Teak & Engineered • Laminates Veneer Veneer Engineered Wood Flooring 1992 1993 2002 2014 2015 Decorative Natural Veneer Laminates for Exports • Laminates for • Engineered Wood Expor
Slide 12: The Leading Brands
The Leading Brands India’s only Integrated and Largest manufacturer of Decorative Surfacing Products from Laminate & Wood Panel Industry 12
Slide 13: Leadership in Manufacturing – Capabilities & Capacities
Leadership in Manufacturing – Capabilities & Capacities Laminates & Compact State of the Art Manufacturing Facilities 12.02 Mn Sheets* Largest in Asia Laminates Decorative Veneers 4.20 Mn Sqm Largest in India Melamine Faced Chipboard - Complements the 2.00 Mn Sqm MFC Laminates & Allied Products Indi
Slide 14: Products & Solutions
Greenlam Industries Limited
Slide 15: Decorative Laminates and Allied – Laminates
Decorative Laminates and Allied 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 flagship brand of Greenlam Industries Limited • Market Leader in Laminates with a wide range of 2,500+
Slide 16: Decorative Laminates and Allied – Compact Panels
Decorative Laminates and Allied Compact Panels • Self Sustainable boards panels made with decorative surface papers with décor finish on both sides • Our product is offered in three variants • BOARD || REST ROOM CUBICLE || CLADING ( Exterior façade & panels) • Greenlam Offerings • Greenlam Compact p
Slide 17: Decorative Laminates and Allied – Compact Panels
Decorative Laminates and Allied – Compact Panels Restroom Cubicles Interior Clads Lockers Exterior Clads 17
Slide 18: Melamine Faced Chipboard MFC
Melamine Faced Chipboard MFC • MFC - Melamine Faced Chip Board is an engineered particle wood product • Greenlam offers Décor paper impregnated with Melamine • Laminated MFC for the use in organised carpentry primarily by OEM’s like modular furniture manufacturers, kitchen manufactures & like, suppo
Slide 19: Decorative Veneer and Allied
Decorative Veneer and Allied Offers 200+ exotic & imported natural veneer wood species Products across Natural, Teak and Engineered Segment 19
Slide 20: Decorative Veneer and Allied – Engineered Wood Flooring
Decorative Veneer and Allied • “Mi Casa , Su Casa” – Mikasa is the 1st Indian Brand of Engineered Wood Floors • State of art manufacturing facility with Latest European technology Engineered Wood Flooring • Highest range offering: 111 sku’s • All Raw Material & Hardwood imported from the best source
Slide 21: Decorative Veneer and Allied – Engineered Doors
Decorative Veneer and Allied • First organised company to launch engineered, factory finished, door solutions in the country • Capacity 120,000 Doors units / annum Engineered Doors + Frames • Integrated with existing decorative veneer and engineered wood flooring, driving better synergy • Presents f
Slide 22: Laminate Plant
Nd Laminate Plant Greenlam Industries Limited 22
Slide 23: Decorative Veneer Plant
>) ae Greenlam Industries Limited Decorative Veneer Plant 23
Slide 24: Engineered Floor Plant
Engineered Floor Plant Greenlam Industries Limited 24
Slide 25: Engineered Door Plant
Engineered Door Plant Greenlam Industries Limited
Slide 26: Robust Network
Robust Network 2 State of The Art Manufacturing Facilities 11 Company owned large Regional Distribution Centres Over 500 Sales Professionals 32 Branch offices 12,000+ distributors, dealers & retailers – Largest in the Manufacturing Base country Branch Offices Regional Distribution Centres 26
Slide 27: Global Footprints
Global Footprints Present in 100+ Countries 4 Overseas subsidiaries 12 International offices 3 Company operated distribution centers Over 100+ overseas employee 27
Slide 28: Certifications
wa Greenlam Industries Limited _ ANTI GREENGUARD BACTERIAL | GREENGUARD . shana EFC omnedsouces PEFC/20.31-081 Www.pefc.org FSC www.fscorg FSC A000524 28
Slide 29: Brand Marketing
Greenlam Industries Limited
Slide 30: Customer Segments
Customer Segments Specifier Consumer Residential Architects Interior Designer Project Management Consultants Condominiums Independent Houses Commercial Influencer Corporates Houses Dealers Govt & Institutional Buyers Contractors Builders & Developers Carpenters OEM’s Installers 30
Slide 31: Marketing Approach
Marketing Approach PRINT DIGITAL O BRAND EVENTS & ACTIVATIONS STORES MARKETING PR EXHIBITIONS 31
Slide 32: Print
Nd Print Greenlam Industries Limited © Mikasa Print Campaigns : Hii ig ookboxiivir (e THE BEST IN decowood
Slide 33: Digital Presence
Greenlam Industries Limited @ Mikasa decoyood 2.700 hits/month 3,000 hits/month 2,000 hits/month FOLLOWERS FOLLOWERS fo 102,586 F 53.043 10 MOBILE APP Work in Progre: MOBILE APP Launched Za SEM campaign in 11 countries EE] 280 fottlowers USA, Canada, Mexico, Colombia, Finland, UAE, Singapore, Italy,
Slide 34: Activations
Activations Partner Meets & Launches Inshop Carpenter meets 34
Slide 35: Exhibitions
Lz Greenlam Indus Exhibitions Limited tries
Slide 36: International Exhibitions
International Exhibitions Brand Marketing - Exhibitions Over 17 International exhibitions 36
Slide 37: International Exhibitions
International Exhibitions 37
Slide 38: Brand Stores
Liz Greenlam Industries Limited 38
Slide 39: The Way Forward
Greenlam Industries Limited
Slide 40: Growth Drivers
Category Drivers – Domestic Market Urbanization 100 Smart Cities, Swachh Bharat, 600 million by 2031 Growth Consumer Class Favorable demographics, shift for brands GST Drivers Millionaire Households Shift from unorganized to organized 2.86 to 6.94lcs by 2020 Real Estate Bill Tighter Building Regulat
Slide 41: Category Drivers – Our Readiness
Category Drivers – Our Readiness • Pan India network - Edge to service the smart city development • Adoption of modern & hygienic restroom will lead to deeper penetration of RC business • The large product portfolio along with latest décor will serve the growing consumer class • Implementation of GS
Slide 42: Decorative Laminates Strategy – Domestic Market
Decorative Laminates Strategy – Domestic Market Total Market Size Domestic Market Ready for the opportunity without INR 4600 Crs INR 3700 crs significant Capex 1400 150% 3700 33% 6 Mn 900 sheets 100% ~17% 2300 12.02 Mn 2 mn sheets With Existing 12.02 Mn sheets Infrastructure sheets 40% Exports marke
Slide 43: International Opportunity
International Opportunity Greenlam Exports FY17 USA, 20% APAC, Global Market Europe, 15% 34% • Market Size – $7 Billion Others, 30% • This market is growing by 2-3% India Laminate Exports INR • Greenlam presence in 100+ countries 900 Crs • Exports grew at a CAGR of 15% over the last 5 years • Focus
Slide 44: Decorative Veneer Strategy
Decorative Veneer Strategy Added in FY16 Engineered Veneer Market Natural Veneer Market Size Teak Veneer Market Size Total Veneer Market Size Size 950 150 250 550 550 250 250 1050 Un-Organised Organised INR 800 Crs INR 800 Crs INR 400 Crs INR 2000 Crs 11%+ market share in FY15 Utilization at 25% FY1
Slide 45: Engineered Floor Strategy
Engineered Floor Strategy • Market is estimated at 2Mn.sqm • Category is witnessing a 20-25% growth • No domestic manufacturer • Majority demand met through import • Increasing market reach with architect/designer engagements • Increasing B2B outreach • Increase retail footprints through Exclusive D
Slide 46: Engineered Door Strategy
Engineered Door Strategy • Door (including flush door) market is estimated at 24mn annually • Engineered Finished Door category is witnessing a 20-25% growth • No organised players providing complete solution • Increasing market reach with architect/designer engagements • Increasing B2B outreach • P
Slide 47: Financial Overview
sreenlam Industr ies Limited Financial Overview
Slide 48: Performance Update
Performance Update Q4FY17 Q4FY17 Segmental Revenue Revenue stood at INR 268 crores, growth of 8%, led by 11% growth in domestic laminates segment Decorative Gross Margin at 44.0% in Q4 FY17 against 46.4% in Q4 FY16 Veneer & Allied 14% EBIDTA stood at INR 39.5 crores a growth of 10% over Q4 FY16 EBID
Slide 49: Profit and Loss Statement
Profit and Loss Statement INR Crores Q4 FY17 Q4 FY16 YoY% FY17 FY16 YoY% Revenue 268.4 248.7 7.9% 970.4 936.7 3.6% Raw Material 150.4 133.4 536.6 517.8 Gross Profit 118.0 115.3 2.3% 433.8 418.9 3.5% Gross Margin % 44.0% 46.4% -240 bps 44.7% 44.7% -- Employee Cost 31.8 26.6 123.7 104.3 Other Expenses
Slide 50: Laminates & Allied Segment
Laminates & Allied Segment INR Crores Q4 FY17 Q4 FY16 YoY% FY17 FY16 YoY% Net Sales of Laminates & Allied Products 224.5 205.2 9.4% 832.2 797.4 4.4% Gross Profit 94.4 91.8 2.9% 363.0 344.4 5.4% Gross Margin % 42.1% 44.7% -260 bps 43.6% 43.2% 40 bps EBIDTA 34.6 33.3 4.0% 123.9 113.8 8.9% EBIDTA Margi
Slide 51: Laminates & Allied Segment
Laminates & Allied Segment Production and Capacity (Quarterly) in Mn Sales in Mn Sheets Average Realisation (INR / Sheet) Sheets +11.8% +15.0% -2.9% 3.01 3.32 3.46 645 3.01 2.97 3.01 626 Q4FY16 Q4FY17 Q4FY16 Q4FY17 Q4FY16 Q4FY17 Capacity Production +7.2% +7.3% -2.8% 12.02 11.79 12.02 12.64 11.86 12.
Slide 52: Decorative Veneers & Allied Segment
Decorative Veneers & Allied Segment INR Crores Q4 FY17 Q4 FY16 YoY% FY17 FY16 YoY% Net Sales of Decorative Veneers & Allied Products 43.9 43.5 1.0% 138.3 139.3 -0.7% Gross Profit 23.6 23.6 0.2% 70.9 74.4 -4.8% Gross Margin % 53.7% 54.1% -40 bps 51.2% 53.4% -220 bps EBIDTA 4.9 2.5 96.0% 2.8 10.1 -72.
Slide 53: Decorative Veneers
Decorative Veneers Production and Capacity (Quarterly) in Mn Sales in Mn Sqmt Average Realisation (INR / Sqmt) Sqmt -23.9% -8.9% +2.0% 1.05 1.05 0.45 0.41 808 824 0.46 0.35 Q4FY16 Q4FY17 Q4FY16 Q4FY17 Q4FY16 Q4FY17 Capacity Production -18.6% -13.8% +2.8% 4.20 4.20 1.59 763 784 1.37 1.61 1.31 FY16 FY
Slide 54: Geographic Segments
Geographic Segments Domestic (INR Crores) Exports (INR Crores) +7.8% +3.9% +8.2% +3.1% 175 575 597 93 362 373 163 86 Q4FY16 Q4FY17 FY16 FY17 Q4FY16 Q4FY17 FY16 FY17 54
Slide 55: Operating Parameters
Operating Parameters ROCE ROE Net Working Capital Days 18.9% 15.2% 59 17.0% 14.2% 49 FY16 FY17 FY16 FY17 FY16 FY17 INR Crores FY16 FY17 In Days FY16 FY17 Revenue 936.7 970.4 Inventory 81 77 EBIT 92.7 92.6 Debtors 49 40 PAT 40.3 42.9 Creditors 71 68 Capital Employed 544.2 490.9 Net Worth 264.5 303.1
Slide 56: Balance Sheet
Balance Sheet (INR Crores) Liabilities Mar – 17 Mar – 16 (INR Crores) Assets Mar – 17 Mar – 16 Shareholder’s Fund 303.1 264.5 Non-Current Assets 362.8 380.7 Share capital 12.1 12.1 Fixed assets 333.4 342.3 Reserves & Surplus 291.0 252.4 Non-Current Investments 24.1 24.1 Borrowings 164.4 254.4 Other
Slide 57: Consolidated Financials
Greenlam Industries Limited
Slide 58: Performance Update – FY17
Performance Update – FY17 Revenue at INR 1,076 crores against INR 1,030 in FY 16, growth of 4.5% FY17 Segmental Revenue Decorative Gross Margin at 47.3% against 47.8% in FY16 Veneer & Allied 13% EBIDTA stood at INR 141.3 crores against INR 129.5 crores in FY16, growth of 9.1% Laminates & Allied EBID
Slide 59: Profit and Loss Statement
Profit and Loss Statement INR Crores FY17 FY16 YoY% Revenue 1,075.9 1,029.7 4.5% Raw Material 566.7 537.3 Gross Profit 509.2 492.4 3.4% Gross Margin % 47.3% 47.8% -50 bps Employee Cost 154.2 139.8 Other Expenses 213.7 223.1 EBITDA 141.3 129.5 9.1% EBITDA Margin % 13.1% 12.6% 50 bps Other (Income)/Co
Slide 60: Laminates & Allied Segment
Laminates & Allied Segment Sales in Mn Sheets INR Crores FY17 FY16 YoY% +6.8% 11.92 12.73 Net Sales of Laminates & Allied Products 937.6 890.4 5.30% Gross Profit 438.3 418.8 4.7% FY16 FY17 Gross Margin % 46.7% 47.0% -30 bps EBIDTA 138.4 119.4 16.0% Average Realisation (INR / Sheet) -1.3% 713 EBIDTA
Slide 61: Operating Parameters
Operating Parameters ROCE ROE Net Working Capital Days 19.1% 17.1% 86 14.8% 15.4% 63 FY16 FY17 FY16 FY17 FY16 FY17 INR Crores FY16 FY17 In Days FY16 FY17 Revenue 1,029.7 1,075.9 88 77 Inventory EBIT 94.6 104.6 Debtors 65 49 PAT 37.7 49.8 Creditors 67 63 Capital Employed 641.4 547.1 245.1 290.7 Net W
Slide 62: Balance Sheet
Balance Sheet (INR Crores) Liabilities Mar – 17 Mar – 16 (INR Crores) Assets Mar – 17 Mar – 16 Shareholder’s Fund 290.7 245.1 Non-Current Assets 352.1 362.7 Share capital 12.1 12.1 346.2 357.2 Fixed assets Reserves & Surplus 278.6 233.0 Other Non-Current Assets 6.0 5.5 Borrowings 224.5 365.3 Long te
Slide 63: GST – Proposed Rates
GST – Proposed Rates Products Post – GST Pre – GST Decorative Laminates 18% Decorative Veneers 28% 12.5 % Excise + Prelaminated (MFC) Particle Board 28% 12.5 % to 14.5 % VAT Engineered Wood Floor 18% Engineered Door Sets (Door + Frames) 28% 63
Slide 64: Way ahead…
Way ahead… Improve volume and value sales in laminate segment in both domestic and export markets Laminate capacity expansion of 2 mn sheets at Nalagarh, HP announced in Q1 FY17 with marginal capital outlay of Rs. 25 crores, is on schedule and is likely to be operational by Jun 2017 Continue focus o
Slide 65: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Greenlam Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L21016AS2013PLC011624 CIN: U74140MH2010PTC204285 Mr. Ashok Sharma - CFO Mr. Shogun Jain / Ms. Ruchi Rudra Email: ashok.sharma@greenlam.com shogun.jain@sg
Greenlam Industries — Investor Presentation (May 2017) on 6ix