Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — FY2022-23 Earnings Presentation
43 slides from Kansai Nerolac Paints's earnings presentation, May 8, 2023
Slide 1: Investor Presentation cover letter to stock exchanges
Page 1 of 43 [ ( KANSAI PAINT NEROLAC 8th May, 2023 1. Corporate Relationship Department 2. Manager – Listing BSE Limited, National Stock Exchange of India Ltd. PhirozeJeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, BandraKurla Complex, Bandra (E), Mumbai - 400001. Mumbai - 400051. Su
Slide 2: FY 22-23 Investor Presentation
Page 2 of 43 FY 22-23 Investor Presentation 9th May 2023 All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
Slide 3: Disclaimer
[ ( ~~SA,--1_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _. . N !.,...i..!E !!!!..ROLAC !, Page 3 of 43 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 certa
Slide 4: Business Environment, Nerolac Story, Financial Performance
Page 4 of 43 1 Business Environment 2 Nerolac Story 3 Financial Performance All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 9th May 2023
Slide 5: 1. Business Environment
Page 5 of 43 1. Business Environment All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 9th May 2023
Slide 6: Recap of Business Environment 2022-23
KANSAI [ ( PAINT NEROLAC Recap of BusinessPage Environment 6 of 43 2022-23 Good Demand in Automotive Infrastructure Growth Demand Uptick Extended Monsoon Geopolitical Challenges & Ukraine War Crude Oil Price Currency Depreciation Chip Shortage Investor Presentation All rights for this presentation a
Slide 7: 2. Nerolac Story
Page 7 of 43 2. Nerolac Story All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 9th May 2023
Slide 8: Purpose and Vision
KANSAI [ ( PAINT NEROLAC Page 8 of 43 Purpose: Create environments for a healthy and beautiful future. Vision: We design solutions that protect, inspire and touch lives everyday Beauty & Protection METRO Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints L
Slide 9: We Are a Powerhouse of Paint
KANSAI [ ( PAINT NEROLAC Page 9 of 43 WE ARE A POWERHOUSE OF PAINT BRAND INNOVATOR’S EXPERTISE AND NEROLAC: SPIRIT: LEGACY: JAPANESE TECHNOLOGY LEADERS IN INDUSTRIAL 2nd STRONGEST BRAND THE NEROLAC JINGLE HOME OF INDUSTRY FIRSTS: IMPRESSIONS KASHMIR EXCEL EVERLAST 12 PERMA NODAMP+ PERMA CRYSTALSEAL
Slide 10: Strategy to create unique experience about Nerolac
KANSAI [ ( PAINT NEROLAC Page 10 of 43 PAINT + SERVICES Strategy Strategy to to create create unique n ·q e about abou Nerolac Nerolac PAINTERS Innovation nnovat • on CONTRACTORS ARCHITECTS INTERIOR DESIGNERS Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Pai
Slide 11: Decorative Highlights
KANSAI [ ( PAINT NEROLAC Decorative Highlights Page 11 of 43 Nerolac Paint + NXTGEN Painting Services Influencers • Strengthened front-line operations • Engagement program launch for Architects & Interior Designers (AID) INTRODUCING • Good traction with AID (Architect & NEROLAC Interior Designers) N
Slide 12: New Products Launched in FY 22-23
KANSAI NEROLAC [ ( PAINT New Products Launched Page 12 of 43 in FY 22-23 Impressions Nerolac - Nxt Range Economy Nerolac Excel Epoxy Primer Exterior Primer Everlast 12 Kashmir Nerolac Perma Nerolac Perma True sheen Nerolac Wonderwood 111 Nerolac Perma NoDamp+ Tile Adhesive Exterior Emulsion TermiPro
Slide 13: Decorative Highlights
KANSAI [ ( PAINT Decorative Highlights Page 13 of 43 NXTGEN Premium Shoppe Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 9th May 2023
Slide 14: Marketing and Media Campaigns
KANSAI Marketing andPage Media NEROLAC 14 of 43 Campaigns [ ( PAINT Introducing Nerolac Beauty Gold Washable with l.25X WashabiUty and Antibacterial property Not just paint Its PAINT+ with Japanese technology Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Pai
Slide 15: Marketing and Media Campaigns
KANSAI NEROLAC [ ( PAINT Marketing andPage Media 15 of 43 Campaigns Co-Associate Sponsor for Co-Presenting Sponsorship on Star Art Salute Indian idol Season Vijay’s show Bharati Kanama Presence in Popular News Presence in Entertainment Channel Website Revamp Investor Presentation All rights for this
Slide 16: Decorative Highlights
KANSAI NEROLAC [ ( PAINT Decorative Highlights Page 16 of 43 New Business • Overall New Business Saliency improved Construction Chemical • Growth in Premium Segment Categories • Introduced Nodamp+ & Perma Damp • Entry in new markets at category level Lock • Increase in overall distribution • Exponen
Slide 17: Industrial Highlights - Automotive
KANSAI [ ( PAINT NEROLAC Industrial Highlights Page 17 of -43Automotive Passenger Vehicles 2 Wheeler Commercial Vehicles & Tractors • Healthy double-digit growth in Value • Gained Market Share • Gained Market Share and Volume supported by record • Aligning technology towards newer • Introduced energ
Slide 18: Innovate and Create New Technologies to Increase Total Addressable Market
KANSAI [ ( PAINT NEROLAC Page 18 of 43 INNOVATE AND CREATE NEW TECHNOLOGIES TO INCREASE TOTAL ADDRESSABLE MARKET Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 9th May 2023
Slide 19: Industrial Highlights - Refinish
KANSAI [ ( PAINT NEROLAC Industrial Highlights Page 19 of 43 – Refinish • Continued with Strong Growth • Focus on Body Shops and Retail Channel • Introduced 8 Products in Retail Channel to address untapped market segments • Ventured into new range of ancillary products • Digital Training Module has
Slide 20: Industrial Highlights - Performance Coating
KANSAI [ ( PAINT NEROLAC Industrial HighlightsPage – 20 Performance of 43 Coating • Introduced Tinting Machine • Strong presence in OEM’s • Focused on Premiumisation • Focusing on Approvals • Exited from Non-Profitable Segments • Privileged to paint Coastal road, Bullet Train and Mumbai • Aligning T
Slide 21: Industrial Highlights - Technology
KANSAI [ ( PAINT NEROLAC Industrial Highlights - Technology Page 21 of 43 JAPAN, EUROPE & TURKEY PROVIDE TECHONOLOGICAL SUPPORT TO INDIA EUROPE • Investor Investor Presentation Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 9th9thMay May 2023 2023
Slide 22: Manufacturing
KANSAI [ ( PAINT NEROLAC Manufacturing Page 22 of 43 Capacity Digitalisation Future Capacity Addition 0 ~ Location Capacity KL/ yr Capex Rs cr Real Ume monito~ Historical & Trend Analytics Vizag 82,500 160 / Jainpur 52,800 130 Hosur 18,780 26 Shop Floor Order tracking Management Total 1,54,080 316 C
Slide 23: Supply Chain & Service
KANSAI [ ( PAINT Supply Chain Page 23 & Service of 43 Procurement & Supply Chain Distribution Network Procurement Decorative • Reducing single vendor dependency • Expanding Depots • Managed uninterrupted supplies despite tight global conditions to strengthen distribution network • Total depots: 103
Slide 24: #LifeAtNerolac
KANSAI [ ( PAINT NEROLAC Human Page Capital 24 of 43 #LifeAtNerolac a HEALTH AND SECURITY AND LIFESTYLE WELLBEING INFRASTRUCTURE LEARNING AND AWARDS AND DEVELOPMENT RECOGNITION Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 9th May 2023
Slide 25: Human Capital
KANSAI [ ( PAINT NEROLAC Human Page Capital 25 of 43 People First Learning & Development ➢ Employee Wellbeing ➢ Capability Building • Launched Truworth Wellness Corner App • Percipio Learning App for Managers • Focus on employee health & well-being by • Advance Sales Training various activities • Di
Slide 26: Innovate to Digitize Our Operations Fully
KANSAI [ ( PAINT NEROLAC Page 26 of 43 INNOVATE TO DIGITIZE OUR OPERATIONS FULLY WHAT WHAT WE WE Giving Giving exception exception products products and and services services toto our our WHAT WHAT WE WE To To enhance enhance this this offering offering through through aa ARE ARE consumers consumers
Slide 27: Digital Technologies
KANSAI [ ( PAINT Digital Technologies Page 27 of 43 Dealer Saathi App Transport Management System Implementation in Bangladesh Forecasting Module Intelligent Operations and Controls Better Decision Making Customer Experience Far Disaster Recovery System Influencer Pragati App DISASTER RECOVERY CRM A
Slide 28: Environment, Health and Safety
KANSAI [ ( PAINT NEROLAC Environment,Page Health 28 of 43 and Safety Audits and Reviews Occupational, Health & Safety • Global Safety Quality (GSQ) audits were • All plants underwent a Safety Survey on Entangled conducted by KPJ at Hosur, Sayakha, and Bawal The Accident Prevention measures (360⁰ gua
Slide 29: Accolades
KANSAI [ ( PAINT NEROLAC Accolades Page 29 of 43 Digital leader- 2023 in Dream Employer of the Zero Defect Supplier by Zero PPM Awards by Manufacturing (Paints) by Year' 2022, by Times Ascent Toyota Kirloskar Motors Daimler Trucks Alden World HRD Congress Ltd Certfaate ~i..52lppreciatlon We ec.lmowl
Slide 30: ESG
KANSAI [ ( PAINT ESG Page 30 of 43 Environment Social Diversity & Inclusivity Emission Management • Accelerated Gender diversity • Scope 1,2 and 3 GHG emission • Accessibility audit of HO premises inventorisation • Committed to emission reduction (near- term) targets in-line with SBTi Governance Bus
Slide 31: CSR Initiatives
KANSAI [ ( PAINT CSR Initiatives Page 31 of 43 LINKAGE OF KNPL CSR PROGRAMS WITH UN SDGs Approx. PROGRAM HEAD SDG HEAD SDG NO. Goal Category spent in % Partnership Partnership for the Goals Skill Enhancement 42 Goal (Advanced Open training in Painting) (42%) Ensuring Env. Sustainability Climate Acti
Slide 32: CSR Initiatives
KANSAI [ ( PAINT NEROLAC CSR Initiatives Page 32 of 43 Skill Development Preventive Health Care & Sanitation Promoting Education Ensuring Environment Sustainability Protection of Heritage, Art & Culture Community Development Investor Presentation All rights for this presentation are reserved with Ka
Slide 33: 3. Financial Performance
Page 33 of 43 3. Financial Performance All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 9th May 2023
Slide 34: Financials Standalone Q4 & FY 22-23
KANSAI [ ( PAINT NEROLAC Financials Standalone Q4 & FY 22-23 Page 34 of 43 Q4 % to Q4 % to YTD % to YTD % to Rs. In Millions 2021-22 NR 2022-23 NR 2021-22 NR 2022-23 NR Net Revenue 14,128 16,051 59,489 70,810 (NR) Material Cost 10,177 72.0 10,985 68.4 41,293 69.4 49,553 70.0 Operating Exp. 3,122 22.
Slide 35: Financials Consolidated Q4 & FY 22-23
KANSAI [ ( PAINT NEROLAC Financials Consolidated Page 35 of 43Q4 & FY 22-23 Q4 % to Q4 % to YTD % to YTD % to Rs. In Millions 2021-22 NR 2022-23 NR 2021-22 NR 2022-23 NR Net Revenue (NR) 15,366 17,336 63,694 75,427 Material Cost 11,074 72.1 11,806 68.1 44,273 69.5 52,643 69.8 Operating Exp. 3,452 22
Slide 36: Working Capital
KANSAI [ ( PAINT NEROLAC Working Capital Page 36 of 43 Rs Millions FY 2021-2022 FY 2022-2023 Working Capital Value NOD Value NOD Inventories 15,315 135 16,480 120 Debtors 9,654 50 11,172 49 Loans & Advances 4,177 4,546 Cash & Bank balances 806 947 Total 29,952 33,145 Less: Curr. Liab. & Prov 12,248
Slide 37: Dividend
KANSAI [ ( PAINT NEROLAC Dividend Page 37 of 43 Financial Year 2020-21 2021-22 2022-23 Dividend % 525* 225 270 Dividend per share Rs 5.25 2.25 2.70 (Face Value Re 1 each) * Includes special dividend of 200% Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paint
Slide 38: Bonus Equity Shares
KANSAI [ ( PAINT NEROLAC Bonus Equity Page 38 of Shares 43 The Board has considered and approved issue of 1 bonus equity share of face value of ₹ 1 each against 2 equity shares of the face value of ₹ 1 each. This is subject to shareholders’ approval. Investor Presentation All rights for this present
Slide 39: Capex
KANSAI [ ( PAINT NEROLAC Capex Page 39 of 43 Rs Million 2020-21 2021-22 2022-23 Projects 1,140 1,415 280 Normal 600 875 1,116 Total Capex 1,740 2,290 1,396 Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 9th May 2023
Slide 40: Subsidiaries
KANSAI [ ( PAINT NEROLAC Subsidiaries Page 40 of 43 Nepal Bangladesh Sri Lanka Sri Lanka • Net sales Grew by 83% Y-O-Y • Liquidity situation remains tough • Net Sales grew in double digits • Increased Market share • Positive EBITDA for the year • Marginal de-growth during the year • LKR Currency sho
Slide 41: Nerolac Story
KANSAI [ ( PAINT NEROLAC Page 41 of 43 Nerolac Nerolac Story Story BOTH BOTH BUSINESSES BUSINESSES ARE ARE ABOUT ABOUT BEAUTY BEAUTY BOTH BOTH BUSINESSES BUSINESSES ARE ARE ABOUT ABOUT PROTECTION PROTECTION HOME INTERIORS MOBILITY APPLIANCES INFRASTRUCTURE AND EXTERIORS NEW COMPETITION Investor Pres
Slide 42: Micro Steps
MICRO ST STEPS EPS Page 42 of 43 Marketing _ j_ - ____J __-... .,...- L--- ,-- - · I_--,--- ------ :---1-----= :----T '""'""" --r--- ----"' ~ Manpower Capacity Creation Digitisation Training Culture Infrastructure Policies Working People 41 Investor Presentation 9th May 2023
Slide 43: Thank you
Page 43 of 43 Thank you All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 42
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