Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — India Corporate Day, Singapore 2004
34 slides from Asian Paints's conference presentation, Nov 26, 2004
Slide 1: India Corporate Day
1 INDIA CORPORATE DAY Singapore November 26, 2004
Slide 2: Presentation structure
2 Presentation structure • Asian Paints Consolidated Results : Q2 – FY 2005 • Asian Paints Consolidated Results : H1 – FY 2005 • Outlook and Risks
Slide 3: Consolidated results: Profit & Loss Account Q2 FY2005
3 Asian Paints - Consolidated results Profit & Loss Account – Q2 – FY 2005
Slide 4: Explanation - Asian Paints consolidated Q2 FY2005
4 Explanation - Asian Paints consolidated Q2 - FY2005 • Sales & operating income has increased by 11% to Rs. 6,840 million – APIL - Paints, APICL+Asian PPG, and international business has registered growth of 8.2%, 19.0% and 25.3% respectively • PBDIT has increased by 5.6% to Rs. 1,024 million • PAT
Slide 5: Standalone Profit & Loss Account Q2 FY2005
5 Asian Paints – Stand alone Profit & Loss Account : Q2 - FY2005
Slide 6: Presentation structure
6 Presentation structure • Asian Paints Consolidated Results : Q2 – FY 2005 • Asian Paints Consolidated Results : H1 – FY 2005 • Outlook and Risks
Slide 7: Dividend
7 Dividend • The Board of Directors approved the payment of an interim dividend of 40 % (Rs. 4/-) per share for H1-FY 2005 • For H1 FY04, the company distributed an interim dividend of 35 % (Rs. 3.50 /-)per share • For the previous financial year 2003-04, the company distributed total dividend of 85
Slide 8: Consolidated results: Profit & Loss Account H1 FY2005
8 Asian Paints - Consolidated results Profit & Loss Account – H1 – FY 2005
Slide 9: Asian Paints Consolidated Sales: Q2 & H1 FY2005
9 Asian Paints Consolidated Sales: Q2 & H 1-FY 2005 *50 % of Asian PPG Industries sales considered Note : H1 & Q2 FY’04 do not include sales of Taubmans acquired in August 2003
Slide 10: Highlights - consolidated accounts H1 FY'05
10 Highlights - Asian Paints consolidated accounts – H1FY’05 • Sales growth and profit growth for the group is higher than standalone results of Asian Paints (India) Limited • Other income has increased by 71.9% due to – Dividend income and gain on disposal of the Malta unit • Overheads for the grou
Slide 11: Components of Asian Paints Consolidated Sales
11 Components of Asian Paints Consolidated Sales • Asian Paints Standalone – APIL Paints – APIL Chemicals • Asian Paints Industrial Coatings Limited(APICL) + Asian PPG Industries • International Business
Slide 12: Standalone Profit & Loss Account H1 FY2005
12 Asian Paints – Stand alone Profit & Loss Account : H1 - FY2005
Slide 13: Standalone Segment Results Q2 & H1 FY2005
13 Asian Paints – Stand alone Segment Results : Q2 & H1 - FY 2005
Slide 14: APIL Paints: H1 FY2005
14 APIL Paints : H1 - FY 2005 • Revenue for the paints business has grown by 8.3% – Aided by good growth for decorative paints – Interior emulsions and exterior segment has performed very well – Industrial coatings viz high performance and road markings segment, which is around 3 % of APIL- Paints s
Slide 15: APIL Paints: Decorative BU
15 APIL Paints : Decorative BU • In Decorative products, performance has been good in all regions; especially good in many competitive markets • The Utsav range of economy products is now well established and is doing well • Emulsion growths have been strong – These have been driven by quality enhan
Slide 16: APIL Paints: Decorative BU - Prices of Key Raw Materials
16 APIL Paints : Decorative BU Prices of Key Raw Materials (2003 - 04 Base = 100) Item Unit Sep Apr June Sep Price Indices Q1-FY05 Q2-FY05 H1-FY05 ‘2003 '2004 ‘2004 ‘2004 Raw material 100.12 104.42 102.41 TiO2 Rutile Imp USD/MT 1850 1900 1900 1925 Packing matl 106.15 108.85 107.60 Soyabean Oil Rs/Kg
Slide 17: APIL Paints: Decorative BU
17 APIL Paints : Decorative BU • The performance of Q2-FY’05 is not comparable with Q1-FY04, as the festival season(Diwali) this year is in mid-Nov • APIL-Paints sales growth of 8.3 % for H1-FY’05 is in line with plans • Inflation has been high in September and October • The company shall, as usual,
Slide 18: APIL Chemicals
18 APIL Chemicals • Chemicals business revenue has increased by 12.6 % and PBIT has increased by 58.4 % • PBIT as a percentage to revenue has increased from 5.6 % to 7.8% for H1-FY’2005 – Due to better price realisations for Phthallic Anhydride • The chemicals business which contributes 5% to overal
Slide 19: Components of Asian Paints Consolidated Sales
19 Components of Asian Paints Consolidated Sales • Asian Paints Standalone – APIL Paints – APIL Chemicals • Asian Paints Industrial Coatings Limited(APICL) + Asian PPG Industries • International Business
Slide 20: APICL & APPG
20 APICL & APPG • Automotive paints and powder coatings business combined have recorded growth of 19% for Q2 & 22.7% for H1- FY’05. • The good growth in the passenger vehicle segment have helped Asian PPG industries record very good top-line growth for H1 FY2005
Slide 21: Components of Asian Paints Consolidated Sales
21 Components of Asian Paints Consolidated Sales • Asian Paints Standalone – APIL Paints – APIL Chemicals • Asian Paints Industrial Coatings Limited(APICL) + Asian PPG Industries • International Business
Slide 22: International BU: H1 FY2005
22 International BU : H1-FY2005 • Volume sales for international business has increased by 23% to 31,751 KL • Value Sales for international business has increased by 21.2 % to Rs. 2,255 million • Berger International’s revenue has increased by 17.5% to Rs. 1507 mn. • Due to shift in the regional mix
Slide 23: International Operations Regionwise Sales Breakup
23 International Operations Regionwise Sales Breakup Caribb H1-FY'2004 H1-FY 2005 ean Caribbe 28.9% an Middle Middle 25.0% East East 34.9% 30.5% South South Pacific Pacific 13.7% 13.4% S.E. South S.E. South Asia Asia Asia Asia 16.2% 10.7% 15.6% 11.1% • Middle East region, the largest contributor to
Slide 24: International BU: Initiatives
24 International BU : Initiatives • Asian Paints subsidiary Berger International exits operations in Malta – No strategic fit, as it was the only subsidiary in Europe – Contribution to group sales was insignificant – Exit has resulted in gain of Rs. 13 million – Technical service and trademark licen
Slide 25: International BU: Initiatives
25 International BU : Initiatives • Launch of dealer tinting systems in key markets • Steps have been taken to improve utilisation of fixed assets to minimise additional investment • Regional Technology centres fully operational in Jamaica, UAE, Mumbai, Singapore and Fiji – Enable inter alia new pro
Slide 26: Standalone Balance Sheet H1 FY2005
26 Asian Paints Standalone – Balance Sheet H1 -FY2005
Slide 27: Standalone Key Ratios H1 FY2005
27 Asian Paints Standalone – Key Ratios H1 -FY2005
Slide 28: Standalone Cash Flow H1 FY2005
28 Asian Paints Standalone - Cash Flow H1 -FY2005
Slide 29: Indian Paint Market
29 Indian Paint Market Paint Revenue Share FY 2003 Paint Revenue Share FY 2004 Top 6 paint companies Top 6 paint companies 11.1% 0.4% 10.9% 1.5% 17.3% 3.9% 17.5% 3.8% 19.5% 46.8% 20.3% 46.9% Asian Paints Nerolac Berger Asian Paints Nerolac Berger ICI J&N Shalimar ICI J&N Shalimar
Slide 30: Net working capital & ROCE for the last five years
30 Asian Paints - Net working capital & ROCE for the last five years 80 72 60 71 46 39 37.4 40 33.6 36.5 27 20 30.7 27.9 0 FY'00 FY'01 FY'02 FY'03 FY'04 ROCE (%) NWC(in days) ROCE : EBIT/Cap.emp
Slide 31: Presentation structure
31 Presentation structure • Asian Paints Consolidated Results : Q2 – FY 2005 • Asian Paints Consolidated Results : H1 – FY 2005 • Outlook and Risks
Slide 32: Economic Environment - India
32 Economic Environment - India • GDP registered growth of 7.4% for Q1-FY’05 primarily due to – Growth in manufacturing sector(+8.8 %) & the services sector(+9.5 %) • GDP unlikely to grow at the same pace due to – Lower agriculture growth – High base for the remaining quarters • Inflation is likely
Slide 33: Outlook and Risks
33 Outlook and Risks • Outlook on demand for Paints in India – So far, demand has been good – Demand especially good for industrial products due to automobile boom. This is likely to continue for the remaining part of the year – In seasonal decoratives business, due to late Diwali the Q3 growth will
Slide 34: End...
34 End...