Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Investor Presentation (June 2017)
35 slides from Kansai Nerolac Paints's investor presentation, Jun 1, 2017
Slide 1: Kansai Nerolac Paints Limited Corporate Presentation
Kansai Nerolac Paints Limited Corporate Presentation June 1, 2017
Slide 2: Corporate Profile
Corporate Profile Parameter Ownership Subsidiary of Kansai Paints, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial Paints Turnover Rs. 4936 Cr. PBT Rs. 759 Cr. Market Cap Rs. 20368 Cr. 2017 Plimsoll Analysis* Ranked Globally 49th by sales revenue Ranked G
Slide 3: Indian Economy
Indian Economy Political Stability Fiscal Prudence Series of reforms Pro- Industry environment Strong Governance Increasing GDP Increasing Per Capita Income *Source: Bloomberg June 1, 2017
Slide 4: Indian Paint Industry Facts
Indian Paint Industry Facts Parameter Facts Size Rs. 43000 Crores (Approx.) Growth Rates Double digit for last 25 years Organized : Un-organized Market 78:22 (Approx.) Per Capita consumption 4 kg (Approx.) Favorable demographics Rapid urbanization Future Growth Drivers Make in India Affordable Housi
Slide 5: Shareholding Pattern (31st Mar, 17)
Shareholding Pattern (31st Mar, 17) KPJ Institutional Non Institutional 10% 15% 75% June 1, 2017
Slide 6: Kansai Paints, Japan
Kansai Paints, Japan • Japan’s largest paint company • 9th largest Paint company globally • Gross sales 3 B USD • 49 JVs, subsidiaries around the globe June 1, 2017
Slide 7: 97 Years History
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 to Kansai Nerol
Slide 8: 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 9: Business Markets
Powder Coatings High performance Coatings General Industrial Coatings Business Markets Automotive Coatings Decorative Coatings Auto Refinish (ARF) Coatings June 1, 2017
Slide 10: Decorative Coatings
Decorative Coatings Exterior Economy Popular Premium Super Premium Interior Popular Premium Economy Decorative Range: Enamels, Distemper, Emulsions, Primers, Putty, Wood finishes June 1, 2017
Slide 11: Automotive Coatings
Automotive Coatings Automotive : Leadership with Full system (Primer+ Top Coat + Clear Coat, including plastic paints) June 1, 2017
Slide 12: 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 June 1, 2017
Slide 13: High Performance Coatings
High Performance Coatings Petroleum / Petrochemical Metal Industries Fertilizer Industries Infra Cement Industry Railways Floor Coating High Protective Coatings: Wide range to tackle corrosion protection June 1, 2017
Slide 14: 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 June 1, 2017
Slide 15: Selective List of Customers
Selective List of Customers Automotive Coatings And many more... June 1, 2017
Slide 16: Selective List of Customers
Selective List of Customers General Industrial Coating High Performance Coating Powder Coating And many more... June 1, 2017
Slide 17: Strength of the Nerolac brand
Strength of the Nerolac brand One of India’s most trusted Brand June 1, 2017
Slide 18: Known for Innovation
Known for Innovation Products Pioneering concepts (Lead free, Low VOC, Healthy Home Paints) Celebrity Endorsement Use of Social, Digital & Mobile Use of Sports for Endorsement Modern Retail June 1, 2017
Slide 19: Known for Innovation - Technology
Known for Innovation - Technology Collaborations R&D Prowess Technology Innovations June 1, 2017
Slide 20: 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) June 1, 2017
Slide 21: Manufacturing Facilities
Manufacturing Facilities Manufacturing Facilities Japanese Technology British Safety Award ZERO liquid Discharge OHSAS 18001 ISO 14001 Existing capacity: 364000 KL New capacity: 136000 KL June 1, 2017
Slide 22: Distribution reach
Distribution reach June 1, 2017
Slide 23: Environmental Initiatives
Environmental Initiatives Publishing Report since 2005 Implemented SAP EHS in 2011 Water and Carbon Foot print Zero Liquid discharge at all tracking manufacturing facilities Products meeting VOC regulation Reduction in Co2 emissions Green Program with vendors June 1, 2017
Slide 24: Our CSR Activities
Our CSR Activities June 1, 2017
Slide 25: People Initiatives
People Initiatives Young Vibrant organization Professionally run & managed Core Values & Competency Transparent Performance Framework defined Management System June 1, 2017
Slide 26: Industry Recognition
Industry Recognition Corporate Customer Brand Marketing June 1, 2017
Slide 27: Industry Recognition
Industry Recognition Manufacturing Environment Product June 1, 2017
Slide 28: Industry Recognition
Industry Recognition Information technology Leadership Reports June 1, 2017
Slide 29: Financial Ratios
Financial Ratios Sales (in Rs Cr) 6000 4936 5000 4604 4212 4000 3739 3376 3000 2000 1000 0 13 14 15 16 17 June 1, 2017
Slide 30: Financial Ratios
Financial Ratios 800 PBDIT (in Rs Cr) 730 700 580 600 500 445 400 362 336 300 200 100 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 June 1, 2017
Slide 31: Financial Ratios
Financial Ratios Shareholder Funds (in Rs Cr) RETURN ON CAPITAL EMPLOYED 3000 2805 (%) 2503 2500 30 26.9 26.8 23.9 24.2 2000 25 20.8 1597 1286 1423 20 1500 15 1000 10 500 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 14.5 8.0 6
Slide 32: Financial Ratios
Financial Ratios Market Capitalisation (in Rs Cr) Dividend (%) 25000 350.0 305.0 20368 300.0 300.0 20000 15171 250.0 15000 11651 200.0 140.0 10000 150.0 110.0 110.0 6670 6301 100.0 5000 50.0 0 0.0 13 14 15 16 17 13 14 15 16 17 June 1, 2017
Slide 33: Snap Shot
Snap Shot Year 2001 Year 2017 CAGR Sales Rs. cr. 683 4936 13.2 PBDIT Rs. cr. 48 731 18.5 PBT Rs. cr. 33 759 21.6 EPS Rs 0.44 9.39 21 times Market 138 20368 147 times Capitalization Rs Cr Dealers Nos. 10300 18300 No. of Distribution 60 102 Centers Nos. June 1, 2017
Slide 34: International Operations
International Operations Nepal Operation – 2012 Amt Rs NPR On Acquisition March 2017 Turnover 25.0 92.1 PBT (1.00) 11.2 Sri Lanka Operation – 2017 June 1, 2017
Slide 35: Thank You
Jk” NEROLAC Thank You AA JUN, 20T7 —
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