Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Deutsche Bank Conference 2005
34 slides from Asian Paints's conference presentation, Feb 21, 2005
Slide 1: Deutsche Bank Conference
1 Deutsche Bank Conference Grand Hyatt, Mumbai February 21, 2005
Slide 2: The Asian Paints group
2 The Asian Paints group India’s Largest paint company for over three decades with revenues of Rs 22.64 billion (USD 513 million) Among the top 10 Decorative Coatings Company in the World Operates in 22 countries 29 paint manufacturing facilities across the globe producing 400 million litres of pain
Slide 3: Presentation structure
3 Presentation structure • Asian Paints Consolidated Results : Q3 – FY 2005 • Asian Paints Consolidated Results : 9M – FY 2005 • Outlook and Risks
Slide 4: Consolidated results Profit & Loss Account – Q3 FY2005
4 Asian Paints - Consolidated results Profit & Loss Account – Q3 – FY 2005 (Rs. in Millions) Q3 04-05 Q3 03-04 Gr % Sales & Op. Income 7,537.28 5,854.44 28.74% Other Income 109.02 55.21 97.47% Total Income 7,646.31 5,909.65 29.39% PBDIT 1,135.09 897.68 26.45% Interest 30.27 37.28 -18.81% Depreciatio
Slide 5: Explanation - Asian Paints Consolidated Q3 FY2005
5 Explanation - Asian Paints Consolidated Q3 - FY2005 • Sales & operating income has increased by 28.74% to Rs. 7,537.28 million – APIL - Paints, APICL+Asian PPG, and international business has registered growth of 32.4%, 35.2% and 12.7% respectively • PBDIT has increased by 26.45% to Rs. 1,135 mill
Slide 6: Standalone Profit & Loss Account: Q3 FY2005
6 Asian Paints – Stand alone Profit & Loss Account : Q3 - FY2005 (Rs. in Millions) Q3 04-05 Q3 03-04 Gr % Sales & Op. Income 5,959.52 4,510.72 32.12% Other Income 87.96 35.88 145.18% Total Income 6,047.48 4,546.60 33.01% PBDIT 990.42 781.91 26.67% Interest 7.67 13.07 -41.30% Depreciation 122.09 121.
Slide 7: Presentation structure
7 Presentation structure • Asian Paints Consolidated Results : Q3 – FY 2005 • Asian Paints Consolidated Results : 9M – FY 2005 • Outlook and Risks
Slide 8: Dividend
8 Dividend • For H1 FY05, the company distributed an interim dividend of 40 % (Rs.4.00 /-)per share • For H1 FY04, the company distributed an interim dividend of 35 % (Rs. 3.50 /-)per share. For the financial year 2003- 04, the company distributed total dividend of 85% (Rs. 8.5 /-) per share. – The
Slide 9: Consolidated results Profit & Loss Account – 9M FY2005
9 Asian Paints - Consolidated results Profit & Loss Account – 9M – FY 2005 (Rs. in Millions) 9M 04-05 9M 03-04 Gr % Sales & Op. Income 19,844.01 16,920.73 17.28% Other Income 266.06 146.58 81.51% Total Income 20,110.07 17,067.31 17.83% PBDIT 2,910.41 2,511.60 15.88% Interest 91.35 121.28 -24.68% Dep
Slide 10: Asian Paints Consolidated Sales: Q3 & 9M-FY2005
10 Asian Paints Consolidated Sales: Q3 & 9M-FY 2005 9M-FY'05 9M-FY'04 Growth % to tot sales % to tot sales % 9M-FY'05 9M-FY'04 APIL - Paints 14,407 12,377 16.4% 72.6% 73.1% Chemicals 995 836 19.0% 5.0% 4.9% APPG* & APICL 934 735 27.1% 4.7% 4.3% International 3,509 2,973 18.0% 17.7% 17.6% 19,844 16,9
Slide 11: Highlights - consolidated accounts 9M FY'05
11 Highlights - Asian Paints consolidated accounts – 9M FY’05 • Sales growth and profit growth for the group is higher than standalone results of Asian Paints (India) Limited • Other income has increased by 81.5% due to – Dividend income and gain on disposal of the Malta unit • Overheads for the gro
Slide 12: Components of Asian Paints Consolidated Sales
12 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 13: Standalone Profit & Loss Account: 9M FY2005
13 Asian Paints – Stand alone Profit & Loss Account : 9M - FY2005 (Rs. in Millions) 9M 04-05 9M 03-04 Gr % Sales & Op. Income 15,455.71 13,255.88 16.60% Other Income 224.74 119.63 87.87% Total Income 15,680.45 13,375.51 17.23% PBDIT 2,553.43 2,228.67 14.57% Interest 21.19 42.28 -49.88% Depreciation
Slide 14: Standalone Segment Results: Q3 & 9M FY2005
14 Asian Paints – Stand alone Segment Results : Q3 & 9M - FY 2005
Slide 15: APIL Paints: 9M FY2005
15 APIL Paints : 9M - FY 2005 • Revenue for the paints business has grown by 16.3% – Aided by good growth for decorative paints in all product segments and in all geographies – Industrial coatings viz high performance and road markings segment, which is around 3 % of APIL- Paints sales registered gr
Slide 16: APIL Paints: Decorative BU
16 APIL Paints : Decorative BU • In Decorative products, performance has been good in all regions; especially good in many competitive markets • Impressive Q3 sales growth due to late Diwali in current year. • Emulsion growths have been strong – These have been driven by quality enhancements – New l
Slide 17: APIL Paints: Decorative BU - Raw Material Prices
17 APIL Paints : Decorative BU (2003 - 04 Base = 100) Prices of Key Raw Materials Item Unit Jun'04 Sep'04Dec'04 Price Indices Q1-FY05 Q2-FY05 Q3-FY05 TiO2 Rutile ImUSD/MT 1900 1925 1975 Raw Material 100.12 104.42 111.55 Soyabean Oil Rs/Kg 45 47 42 Packing Matl 106.15 108.85 113.44 Comm. CastorRs/Kg
Slide 18: APIL Chemicals
18 APIL Chemicals • Chemicals business revenue has increased by 20.4 % and PBIT has increased by 119.8 % • PBIT as a percentage to revenue has increased from 6 % to 11 % for 9M - FY’2005 – Due to better price realisations for Phthallic Anhydride • The chemicals business which contributes 5% to overa
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 35.2% for Q3 & 27.1% for 9M - FY’05. • The good growth in the passenger vehicle segment have helped Asian PPG industries record very good top-line growth for 9M 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: 9M-FY2005
22 International BU : 9M-FY2005 • Volume sales for international business has increased by 20% to 48,905 KL • Value Sales for international business has increased by 18 % to Rs. 3,509 million • Due to increase in material cost and also a shift in the regional mix more in favour of Middle East, the m
Slide 23: International Operations Regionwise Sales Breakup
23 International Operations Regionwise Sales Breakup 9M-FY'05 9M - FY'04 Middle Caribbean Caribbean 29.6% East Middle 25.5% 36.5% East 32.3% South South Pacific Pacific 13.3% S Asia S Asia 9.4% 13.2% S E Asia S E Asia 8.8% 15.3% 16.1% • Middle East region, the largest contributor to the revenue of i
Slide 24: International BU: Initiatives
24 International BU : Initiatives • Asian Paints subsidiary Berger International exited operations in Malta in May’04 – No strategic fit, as it was the only subsidiary in Europe and contribution to group sales was insignificant • Asian Paints is in the process of exiting from Mauritius – Mauritius p
Slide 25: International BU: Initiatives
25 International BU : Initiatives • Launch of dealer tinting systems in key markets • New brand architecture being implemented across most markets • Global insurance policies taken to cover key risks – Standardized template put in place to cover other risks • Regional Technology centres fully operat
Slide 26: Asian Paints Standalone – Balance Sheet 9M-FY2005
26 Asian Paints Standalone – Balance Sheet 9M-FY2005
Slide 27: Asian Paints Standalone – Key Ratios 9M-FY2005
27 Asian Paints Standalone – Key Ratios 9M-FY2005
Slide 28: Asian Paints Standalone - Cash Flow 9M-FY2005
28 Asian Paints Standalone - Cash Flow 9M -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 : 9M – FY 2005 • Outlook and Risks
Slide 32: Economic Environment - India
32 Economic Environment - India • GDP likely to grow at 6 - 7% due to – Lower agriculture growth – High base • Inflation is likely to remain around 7 % for the remaining months – Cause for concern – Likely to put pressure on interest rates – Crude oil price and other downstream products still remain
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 was
Slide 34: End...
34 End...