Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Citi India Investor Conference 2019
25 slides from Asian Paints's conference presentation, Jun 3, 2019
Slide 1: Citi India Investor Conference
CITI INDIA INVESTOR CONFERENCE Mumbai, India June 3, 2019
Slide 2: Disclaimer
DISCLAIMER This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views being expre
Slide 3: Asian Paints Today
ASIAN PAINTS TODAY No. 1 Over 3 3 Largest Paint rd Offerings across: Paint Company $ 2.7 Billion Times nearest Company in Asia Group revenue Competitor 9th Largest Paint Paints in India in India Co In the World Chemicals Part of Operations in 27 30 share 50+ Wall Coverings 16 Paint Manufacturing BSE
Slide 4: Coatings Industry – Global Standing
COATINGS INDUSTRY – GLOBAL STANDING 16.0 14.8 14.0 12.0 11.6 11.5 In Billion USD 10.0 8.0 6.0 5.4 4.0 5.0 4.8 2.0 4.4 - 2.9 2.6 2.2 2.0 1.6 1.5 1.0 0.9 Sales * Coatings World Magazine - 2018 Rankings Source(only revenue World : Coatings from coatings sales(July Magazine considered 2018 for the ranki
Slide 5: Business Segments - Portfolio
BUSINESS SEGMENTS - PORTFOLIO 3% 2% 12% 83% FY 2018-19 Deco - India International Industrial Home Improvement Deco India : Paints, Water Proofing, Wall Coverings & Adhesives International – Operations outside India (Asia, Africa, Middle East and South Pacific) Industrial – Includes only AP-PPG reven
Slide 6: Indian Paint Industry - Dynamics
INDIAN PAINT INDUSTRY - DYNAMICS 1 to 1.5 times Real GDP Growth Growth closely linked to GDP Growth 50:50 Low per Capita Global 75:25 Paint Global Decorative Paints average @ Consumption at 12-15 Kgs Ratio to Industrial Paints ` 500 ~3.75 Kgs Billion Industry Servicing Paints sold 70:30 through Mom
Slide 7: Indian Paint Industry - Growth Drivers
INDIAN PAINT INDUSTRY - GROWTH DRIVERS ❖ Urbanization & Nuclear Family phenomenon; Smart Cities; Affordable Housing ❖Family involvement in decision making ❖ Upgradation, trendy colours, wall coverings, designer walls etc. ❖ Higher awareness influencing customer preferences ❖ Quality, Decorative and
Slide 8: Deco India – Business Footprint
DECO INDIA – BUSINESS FOOTPRINT ❖Largest business unit – 83% of group revenues ❖ Leveraging its distribution strength (60,000+ dealers across the country) ❖Introduced new categories like Water-proofing, Adhesives, Wallpapers etc ❖ State of the art, highly automated decorative paint manufacturing pla
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Slide 10: Deco India
DECO INDIA LAST 20 YEARS……… ❖Increased Market Share by over 20% ❖Exploded emulsion growth – especially in exteriors ❖Upgraded distempers to emulsions ❖Launched over 150 new products ❖Re-invented the brand - moved into Décor & services – APHS, Paint Total, ColourPro, Colour Consultancy VISION:- ‘To b
Slide 11: Deco India – Changing With Times
DECO INDIA – CHANGING WITH TIMES 1954 2002 2012 ❖ Lifting the brand into a modern, contemporary space ❖ Unique, Vibrant, Colourful ❖ Symbol of creativity and décor
Slide 12: Deco India
DECO INDIA The key has been continuously attempting to understand and meet the changing needs of the ever-changing consumer ❖Refashioned retailing – focus on dealer influencing the consumer ❖Increased reach – 15,000 retailers to 60,000+ retailers (46,000+ ColourWorlds – proprietary tinting system) ❖
Slide 13: Deco India
DECO INDIA ❖Network Expansion ❖About 3000 dealers added every year ❖4000 ColourWorlds additions per annum ❖25 Colour Ideas additions per annum ❖Most products sell at a 5 to 10% premium to competition while gaining share. ❖Research & Development ❖225 scientists at the Research & Technology Centre nea
Slide 14: Deco India – Innovation in Retailing
DECO INDIA – INNOVATION IN RETAILING ❖ Innovating the retailing footprint with 400+ Colour Ideas stores ❖ Showcasing latest product and solution offerings ❖ Enabling consumers to get inspired, try and decide – helped by a consultant Traditional Hardware 46,000+ Colour World - Colour Ideas – Modern d
Slide 15: Deco India – Innovation in Retailing
DECO INDIA – INNOVATION IN RETAILING ❖ Experimenting with AP Homes ❖Multi-category integrated décor store offering products & solutions across categories of paints, wallpapers, kitchen, bath fittings, sanitaryware, furnishings, light fittings, etc. AP Homes - Multi-category décor stores at Coimbator
Slide 16: Industrial Coatings India
INDUSTRIAL COATINGS INDIA ❖ Participating in the Indian Industrial coatings segment through 2 Joint ventures with PPG Inc. of USA, the global coatings leader ❖ Industrial business makes up about 3% * of the group revenues ❖ Servicing the entire spectrum of Industrial coatings products - Automotive c
Slide 17: International Business
INTERNATIONAL BUSINESS ❖ Contributes about 12% of group revenues operating in 15 countries outside India ❖ In top three in all markets in Decorative paints, except in Singapore, Oman & Indonesia ❖ Significant presence in Middle East and South Asia ❖ Expanding its international presence with key focu
Slide 18: Market Position Across Geographies
MARKET POSITION ACROSS GEOGRAPHIES MARKET REGION COUNTRY POSITION BRAND NEPAL 1 ASIAN PAINTS IBU Group SRI LANKA 1 ASIAN PAINTS, CAUSEWAY ASIA BANGLADESH 2 ASIAN PAINTS INDONESIA - ASIAN PAINTS 5.8% SINGAPORE - BERGER PAINTS 26.1% BAHRAIN 1 ASIAN PAINTS BERGER MIDDLE 47.7% UAE 3 ASIAN PAINTS BERGER
Slide 19: Home Improvement Segment
HOME IMPROVEMENT SEGMENT ❖ Forayed in this business segment six years back with a vision of being a complete décor solutions provider to help customers create their dream homes ❖ Currently offering products and solutions in 2 categories ❖ Kitchens – engaged in business of manufacturing, selling and
Slide 20: Highest Standards of Corporate Governance
HIGHEST STANDARDS OF CORPORATE GOVERNANCE ❖ Company’s philosophy founded on fairness, accountability, disclosures and transparency ❖ Comprehensive disclosures, structured accountability in exercise of powers, adhering to best practices and commitment to compliance with regulations - Integral part of
Slide 21: Consistent Performance
CONSISTENT PERFORMANCE Consolidated Net Sales and Operating Income Net Profit (` Crores) (` Crores) 2,159 19,350 2,200 18,000 2,000 1,800 16,000 CAGR CAGR 1,600 18.4% 14,000 16.3% 1,400 12,000 1,200 10,000 1,000 8,000 800 4,279 398 6,000 600 4,000 400 2,000 200 0 0 2008-2009 2018-2019 2008-2009 2018
Slide 22: Sustained Value Creation
SUSTAINED VALUE CREATION Market Cap (` Crores) 143,179 Dividend Payout Ratio 10,000 56.8% 60% 54.0% 52.6% 54.2% 53.1% 53.1% 7,539 49.0% 51.0% 46.0% 47.0% 50% 39.0% 40% 30% 5,000 20% 10% 0% 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 0 2008-2009 2018-2019 C
Slide 23: Standalone Financials: FY 2018-19
STANDALONE FINANCIALS : FY 2018-19 Standalone Q4 (Rs. crs) • Revenue from Operations up by 12.2% 4,235 4,500 3,775 • PBDIT flat at ` 842 crores – Impact of higher 4,000 3,500 material prices & higher media spends 3,000 2,500 • PBDIT Margin of 19.9% in Q4-FY19 as 2,000 1,500 842 844 1,000 480 492 com
Slide 24: Consolidated Financials: FY 2018-19
CONSOLIDATED FINANCIALS : FY 2018-19 Consolidated Q4 (Rs. crs) 6,000 5,018 4,492 • Revenue from Operations up by 11.7% 5,000 4,000 • PBDIT flat at ` 880 crores 3,000 • PBDIT Margin of 17.5% in Q4-FY19 as 2,000 880 879 1,000 487 496 compared to 19.6% in Q4-FY18 - • PAT marginally lower than LY Revenu
Slide 25: Thank You
THANK YOU