Welspun Corp Limited · NSE:WELCORP
Welspun — Welspun World — Investor Day (November 2024)
35 slides from Welspun's investor day presentation, Nov 12, 2024
Slide 1: Welspun World Investor Day
WELSPUN WORLD Investor day 12th November 2024
Slide 2: Yesterday
YESTERDAY we
Slide 3: Welspun Over the Decades
Welspun Over the Decades Ww) n 1985 in Palghar ee
Slide 4: Slide 4
Slide 5: Welspun World business verticals at a glance
Home Textiles - global Global Line Pipe Water Infra & Treatment India Retail - textile Building Materials (Plastic Transport Infra Pipes & Tanks, DI & TMT) Tunnelling Flooring Speciality Steel O & M Capability Advance Textiles Revenue EBITDA Workforce Customer Presence in Associated with fortune 100
Slide 6: oe WW
os a = / oe WW (S) | <I {== \ Oo Welspun°wor_p A geek
Slide 7: Vision
Vision Touching 1.4 Billion hearts
Slide 8: Har Ghar, Har Dil: India focus and new business verticals
‘Har Ghar, Har Dil’ India Focus added Promising New business verticals Home Textiles – Domestic Global Flooring Sintex B2C Advanced Textiles B2C – SPACES, WELSPUN Water Infra SmartOps Tunneling-Michigan Ductile Iron Pipes Expanded 3 core verticals >10 distinct business verticals in just 3 years with
Slide 9: Framework 3G: Governance, Green, Growth
Framework Governance Green Growth 3G
Slide 10: Governance
Governance No pledging / Strengthened Robust Professionally ‘One Welspun’ Family Cross Holdings the Board Compliance Managed Process Office THE FOUNDATION – firmly in place
Slide 11: Green – Growing business responsibly
Green – Growing business responsibly Carbon Neutral Community Water Farmers • No. 1 ESG ranked company from India • No. 3 ESG ranked company from India • Top 3 %ile globally • Top 4 %ile globally ESG ratings 8 48 59 66 9 41 57 68 2021 2022 2023 2024 2021 2022 2023 2024 Welspun Living Limited Welspun
Slide 12: Welspun Foundation Programs
Welspun Foundation Programs © Copyright 2023. All Rights Reserved.
Slide 13: Leadership Team in Place
Leadership Team in Place BALKRISHAN GOENKA RAJESH MANDAWEWALA Chairman, Vice Chairman, Welspun World Welspun World DIPALI GOENKA VIPUL MATHUR SANDEEP GARG G R ARUN KUMAR ALTAF JIWANI MD & CEO, MD & CEO, MD, Director & Group CFO Director, Welspun Living Ltd. Welspun Corp Ltd. Welspun Enterprises Ltd.
Slide 14: Values & Culture That Empower Success
Values & Culture That Empower Success LEARNING Learn, Unlearn & Relearn INNOVATION discover something Do things differently new everyday and do different things ENDURANCE TRUST Push beyond your limits Make Truth and and aspire for more transparency a virtue Har Ghar Welspun, Har Dil Welspun
Slide 15: Great Place to Work
Great Place to Work All Welspun companies, recognized as India's Best Workplaces including for Women & Millennials, 2024
Slide 16: Delivered Growth & Returns to Stakeholders
Delivered ‘GROWTH’ & Returns to Stakeholders
Slide 17: Welspun World – Return on Capital
Welspun World – Return on Capital ROCE Cumulative 22.0% Maintain 3,000 ~₹3,000 Crs 25.0% 278 20.0% 12.3% returned to shareholders 15.0% 10.4% 15.5% 2,500 10.0% 666 5.0% 0.0% 2,000 FY 21 FY 22 FY 23 FY 24 Est FY 25 266 ROCE 168 1,500 2,681 368 FIXED ASSET T/O RATIO 2,015 1,000 404 1,749 5.0 >3 1,581
Slide 18: Welspun World – Balance Sheet
Welspun World – Balance Sheet NET DEBT CREDIT RATING 1.5 4500 1.1 1.3 2764 1 2589 0.8 2500 1591 0.4 <0.5 0.5 Welspun Living Limited 1530 500 0 FY21 FY22 FY23 FY24 Est FY 25 CARE AA; Positive Net Debt Net Debt to EBITDA *EBITDA Annualised Welspun Corp Limited Capex CAPEX CYCLE CRISIL AA/Positive 2000
Slide 19: Welspun World – Continuous Growth Momentum
Welspun World – Continuous Growth Momentum REVENUE EBITDA AND MARGINS (%) FY 21 FY 22 FY 23 FY 24 Est FY 25 4500 Higher 18.00% 35000 Growth 4000 15.30% 16.00% 30310 3500 14.00% 30000 12.70% 3000 12.00% 12.50% 25000 21195 2500 10.00% 9.90% 20000 17220 16022 2000 8.00% 15000 1500 6.00% 10000 1000 4.00
Slide 20: Value Creation Over the Years
Value Creation Over the Years Market Capitalisation (₹ Crs) 20,000 45,000 41,023 5 year CAGR : Corp +50%, Living +20%, Enterprises +50% 18,000 40,000 16,000 31,099 35,000 14,000 30,000 12,000 25,000 10,000 20,000 8,000 14,440 13,435 13,404 15,000 6,000 10,000 4,000 4,425 2,000 5,000 - - Mar-20 Mar-2
Slide 21: Tomorrow
TOMORROW
Slide 22: Welspun World Future Growth
Welspun World future GROWTH …….continue dominance in‘CORE’ execute highgrowthin “NEW” businesses Solid Global Growth continues in CORE businesses Maintain ~20% ROCEs & healthy Asset Turns >3.0x Home Textiles – Export Large diameter Pipes Transport Infra Scale new business Profitable Growth Solid Exe
Slide 23: Welspun Living: Maintain Brand led Home Textiles Global Leadership
1 Welspun Living : Maintain Brand led Home Textiles Global Leadership Growth Strategy Category Expansion Channel Focus- Big End to end serviceability Securing additional (incl. Pillows) Box retailers, and – Integrated supply chain shelf space with brands emerging channels Category Expansion Channel
Slide 24: Welspun Living: Domestic Home Textile Business
2 Welspun Living : Domestic Home Textile Business : B2C Opportunity & Multiple HOME TEXTILE BRANDED INDIA MARKET (₹ Crs) 10,000 CAGR 9-11% Welspun Living 6,000 is targeting a market share of 30%+ in medium term FY24 FY31 Welspun’s ~10% ~30% mkt share 3X market growth : Vision… ₹3k Crs Growing +30% C
Slide 25: Welspun Living: Global Flooring Opportunity
3 Welspun Living : Global Flooring Opportunity in a $20 B Global market ₹ Crs 3x growth Partner with Home Hospitality & Improvement National Chains Institutional ₹782 Distributorship expansion White label for global Growth in the FY24 FY 27-30 incl Organised Retail brands additionally medium term
Slide 26: Welspun Corp: India Pipes – maintain growth & strength
4 Welspun Corp : India Pipes – maintain growth & strength Ductile Iron Pipes Huge focus on creating drinking JAL JEEVAN MISSION water supply infrastructure Har Ghar Nal Amrut Scheme Swachh Bharat Se Jal Scheme (Gramin) Robust annual DI pipes demand at 5 MN MTPA Large Diameter Pipes Add India capabil
Slide 27: Welspun Corp: Sintex Building Materials B2C
5 Welspun Corp : Sintex Building Materials B2C OPVC an additional optionality in B2B Our Purpose Is To Safeguard Water For Millions Of People. Millions Of Homes Potential: mid teen EBITDA Asset business with Turn
Slide 28: Welspun Corp: Global Large-Diameter Pipe Leadership
6 Welspun Corp : Global Large-Diameter Pipe Leadership USA Saudi Arabia, M-E Next 3 years Continue leadership New manufacturing Strong Saudi market capacity to be higher in Global O&G Co (Newco) : & strategic global L-SAW & DI pipes export hub Hydrogen & carbon Expansion to 24” capture Tech H-Saw pi
Slide 29: Welspun Specialty Steel – Significant Upside Potential
7 Welspun Specialty Steel … Significant Upside Potential SS alloys, The only Focus on R&D, Customers – pipes & tubes integrated Global technology Nuclear, Defence, producer in India partnerships Petro-refinery, Power Global market , In house testing De-bottlenecking India market facilities for capex
Slide 30: Welspun Enterprises: Water Infra EPC Verticals
8 Welspun Enterprises : Water Infra EPC verticals : Transformation in a ₹3.6 tn Market Transmission Treatment Distribution Lift River Water Grid WTP/ River Desalination Industrial Waste water NRW Irrigation Linking Management STP Rejuvenation Area Handling reduction Tunneling Dharavi STP Nal se Jal
Slide 31: Welspun Michigan: Smart-Ops Water Treatment
9 Welspun Michigan : Technology Led Solution for Water Treatment : “Smart-Ops” Wastewater Generation & Treatment capacity GAP at City level in India (2023) 92% 95% 18000 15644 87% 84% 100% 16000 67% 90% 14000 80% 12000 70% 60% 10000 50% 8000 40% 4… 4807 4018 6000 3836 30% 4000 2965 20% 2000 485 768
Slide 32: Welspun Enterprises: Transport Assets
10 Welspun Enterprises : Continue To Create ‘Hi-quality & Technology’ Transport Assets Expanding through the ‘BOOT model’ opportunity…equity value
Slide 33: Governance Goals – Stakeholder focused
Governance Goals – Stakeholder focused Capital Allocation Focus , Exit non-core Guide to hi-quality Investor Return ROCEs @ ~20% across companies Revenue CAGRs EBITDA margins Target Infra orderbook @ 15-20% @ mid-teen @ ~3.0x Book/Revenue Group Debt Ebidta @ <1.5 through the cycle Fixed Asset Turns
Slide 34: Growth Goals Summary & Welspun Investment Thesis
GROWTH Goals Summary Welspun Investment Thesis Home Textile – Deepen Large Diameter Global Leadership Pipes Global Continue ‘brand strategy’ led Maintain global leadership double digit topline growth >1 Million ton sale portfolio Grow India Retail Water Infra - Nurture Textiles B2C Creating Unique ‘
Slide 35: Thank You