Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — Q1 FY2020 Earnings Presentation
77 slides from Greenlam Industries's earnings presentation, Jul 30, 2019
Slide 1: Greenlam Industries Limited filing cover letter
Greenlam Industries Limited Greenlam/2019-20 July 30,2019 The Manager, The Manager BSE Limited National Stock Exchange of India Ltd. Department of Corporate Services Exchange Plaza, Bandra Kurla Complex, Floor 25, P.J. Towers, Dalal Street Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Fax No. 022-227
Slide 2: Investor & Analyst Meet FY2019 & Q1 FY2020
Investor & Analyst Meet FY2019 & Q1 FY2020 July 30, 2019
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Greenlam Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: A belief driven by our values to thrive improvement across business segments
Its a belief driven by our values to thrive improvement across business segments 3
Slide 5: Our 'bettering' culture is visible in..
Our ‘bettering’ culture is visible in.. Marketing Product Service Solutions Manufacturing Network Infrastructure People Financials 4
Slide 6: Product
Product Portfolio • A one stop solution for all surfacing requirements across price points and market segments New Launches & Innovation • New range collection launched in Laminates, Compacts, Exterior Clads and Decorative Veneer category • Introduced Mikasa Dura Doorset collection • Product Develop
Slide 7: People
People Employee Strength • We are young team of 3750+ employees Learning • We have set up new training vertical for product and soft skill learning • Multiple training workshops have been conducted for employees across the country • Sales & soft skill training for our primary channel partners & thei
Slide 8: Infrastructure
Infrastructure SAP S/4 Hana • In April 2019, the Company migrated its ERP system to SAP S/4HANA to enhance control and transparency, to reduce manual intervention and streamline process efficiency Experience Center • First of its kind experience center in Kolkata with the objective to provide consum
Slide 9: Manufacturing
Manufacturing Capacity • Over the years we have increased our capacities in line with demand from both domestic and international markets • We have announced laminate capacity expansion of 1.6 mn sheets which is likely to be upstream by Q3FY20. This will take our total capacity to 15.62 mn sheets Do
Slide 10: Certifications
Certifications cm GREENGUARD GREENGUARD ANTI BACTERIAL LAMINATES ‘fin he o > \) Greenlam 9 Industries Limited
Slide 11: Network
Network Domestic • Increase in network penetration has been consistent in line with business opportunities in the market • We have 11 RDC’s, 27 Branches & 142 Sales Offices to cater to the product demand generated across the country International • Increased focus on OEM segment with the introductio
Slide 12: Marketing
Marketing Mobile Apps • Easy to use mobile apps for all product categories laminate, flooring, veneer were introduced Introduction of AR • Augmented reality concept was introduced for the first time in our industry through our product catalogue • 3 easy steps: Download the app (Blippar) – Scan the i
Slide 13: Service Solutions
Service Solutions End To End Solutions • We are providing end to end surfacing solutions in line with the growing consumer demand • Quality products along with Installation solutions are provided for our restroom cubicles, lockers, façade, engineered wood floor and engineered door product categories
Slide 14: Key Commercial Customers
Key Commercial Customers Corporate Education & Health Retail & Real Estate Hospitality Delighting every customer in every segment at every corner 13
Slide 15: Financials
Financials Net Revenue (INR Crores ) EBITDA (INR Crores) +8.5% +14.0% 1,281 149 159 1,076 1,145 138 1,030 129 926 94 12.6% 12.9% 13.0% 12.4% 10.2% Margin FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 PAT (INR Crores) Cash PAT (INR Crores) 77 +19.7% 105 +41.3% 65 93 82 50 70 38 51 19 FY15 FY16 FY
Slide 16: Financials
Financials Return on Capital Employed Debt-Equity Ratio 18.3% 17.2% 1.8 16.8% 14.8% 1.5 9.4% 1.0 0.7 0.6 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Return On Equity Working Capital Days 18.1% 18.0% 90 86 87 86 90 16.7% 15.4% 8.8% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 # FY17 financ
Slide 17: Industry Snapshot
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Slide 18: Industry Snapshot: Laminates & Allied Products (India & Exports)
Industry Snapshot Laminates & Allied Products (India & Exports from India) Laminates & Allied Products – India & Export From India Market Size – INR 5700 Cr Domestic Market 4200 Cr Export From India 1500 Cr Organized Unorganized 2900 Cr 1300 Cr Greenlam Greenlam 443 cr 556 Cr (Standalone basis) ~13%
Slide 19: Industry Snapshot: Laminates & Allied Products
Industry Snapshot Laminates & Allied Products (India & Exports from India) • The laminate and allied business accounts for 85% of Greenlam’s business • The growth of Indian laminate industry is ~ 5% and our domestic laminate business grew by 4.3% in FY19 • We believe that the growth has been primari
Slide 20: Greenlam International
Industry Snapshot Laminates & Allied Products (International Market) Greenlam International Revenue (Con) FY19 Americas • Market Size – USD 7.3 billion 19% • Global Laminate market is growing by 2- APAC, 3% Europe 35% & UK • Exports from India is USD 210 mn 23% • Greenlam presence in 100+ countries
Slide 21: Industry Snapshot: Decorative Veneer
Industry Snapshot Decorative Veneer Decorative Veneer Market Size INR 2000 Cr Organized Unorganized 1200 Cr 800 Cr Greenlam ~11% Market share in Organized 131 Cr Market *Industry data is as per our internal estimates 20
Slide 22: Industry Snapshot: Engineered Wood Flooring
Industry Snapshot Engineered Wood Flooring (India & Global) • India Market is estimated at 2 msqm • Majority demand met through import • India’s only domestic manufacturer • Manufacturing capacity – 1 msqm at Behror • Our capacity utilisation is ~18% • Global engineered wood flooring market is estim
Slide 23: Industry Snapshot: Engineered Wooden Door & Doorsets
Industry Snapshot Engineered Wooden Door & Doorsets • Finished Door category market is estimated at ~5 mn units annually • Indian’s only organised manufacturer of engineered factory-finished doors • Growing preference for factory-finished doors that can be installed with speed • Capability to produc
Slide 24: Domestic Growth Drivers
Domestic Growth Drivers Govt. Policy Initiatives Consumer Market Growth Per Capita Indian Real Income on Estate Rise Market Luxury Growing Market Middle Class Demand Emerging Commercial for Trends in Spaces Modern Metro Homes Cities 23
Slide 25: International Growth Drivers
International Growth Drivers • Several local manufacturers are slowly becoming subscale due to tighter regulations and cost disadvantages • Business is expected to move to companies which have strong manufacturing base, cost advantages, globally accredited certifications, wider product offerings and
Slide 26: Leveraging Growth Opportunities
Leveraging Growth Opportunities
Slide 27: Product Portfolio
Product Portfolio
Slide 28: Product Portfolio
Product Portfolio Decorative Laminate & Allied Products Veneer & Allied Products Decorative Mikasa Mikasa Laminates Compact Panels MFC Veneer Floor Door Standard Compact Panels Natural Engineered Lab Guardian Veneer Engineered Wood Door Commodity to Melamine Restroom & Locker Wood Floor and Premium
Slide 29: Laminates
Laminates • Laminate category has witnessed an immense change in terms of design evolution and product performance • It graduated from a commodity product to be a lifestyle and low maintenance surfacing option • Greenlam offers variety of laminates catering to various application needs, starting fro
Slide 30: Laminate Applications
Laminate Applications 29
Slide 31: Compacts
Compacts • Compact laminate panel is gaining momentum and acceptance in India • With the growth of organized carpentry in the country, customers are seeking high performance and durable product solutions • Compact panels are now used for furniture & paneling purpose specially in health, education an
Slide 32: Compact Applications
Compact Applications 31
Slide 33: MFC – Melamine Faced Chipboards
MFC – Melamine Faced Chipboards • With the increase in organized carpentry (OEM) in the country, the usage of engineered wood like MFC is gaining pace in kitchen & modular furniture segment • MFC compliments laminate sales to OEM segment with matching decors • Greenlam offers best in class quality p
Slide 34: MFC Applications
MFC Applications 33
Slide 35: Decorative Veneers
Decorative Veneers • The specification industry leads the sales of this category • Decowood Veneer comes in three categories – Natural, Teak & Engineered • Decowood has a wide and beautiful range of offering of decorative veneers and are sourced from across the globe with over 200 species with over
Slide 36: Decorative Veneer Applications
Decorative Veneer Applications 35
Slide 37: Engineered Wood Flooring
Engineered Wood Flooring • Indian wooden flooring market is still at nascent stage • Acceptability of wooden flooring is increasing in residential segment but due to lack of category awareness, the wooden flooring segment is dominated by laminate floors which occupies majority of the market at prese
Slide 38: Engineered Wood Flooring Applications
Engineered Wood Flooring Applications 37
Slide 39: Engineered Doors and Doorsets
Engineered Doors and Doorsets • Transformation from traditional carpentry to factory finished door solutions owing to super finish and product performance • Great forward integration solution backed by the manufacturing capabilities of Laminates and Decorative Veneers has enabled us to provide wider
Slide 40: Engineered Door Applications
Engineered Door Applications 39
Slide 41: Manufacturing
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Slide 42: Manufacturing Capabilities
Manufacturing Capabilities Behror, Rajasthan Products Laminates and compact laminates 5.34 mn sheets Decorative veneers 4.20 mn sq. m Melamine-faced 2.00 mn sq. m chipboard Engineered wood 1.00 mn sq. m flooring Nalagarh, Himachal Pradesh Engineered door sets 0.12 mn doors Products Laminates and 8.6
Slide 43: Distribution Network
Distribution Network 42
Slide 44: Domestic Footprints
Domestic Footprints 11 Company owned 2 State of the art large Regional Manufacturing Distribution Centres Facilities 14,000+ Distributors, Dealers & Retailers – Manufacturing Base Branch Offices Over 500+ 27 Branch Regional Distribution Sales Offices Centres Professionals 43
Slide 45: Global Footprints
Global Footprints Present in 3 Company 100+ Operated Countries Distribution Centre 14 International Offices 5 100+ Overseas Overseas Subsidiaries Employees 44
Slide 46: Brand & Marketing
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Slide 47: Target Audience Touchpoints
360 Degree Marketing Approach Print Target Audience Events & Activation • Specifier Exhibition • Influencer Touchpoints • Consumer – Commercial, Brand Stores Residential PR Digital 46
Slide 48: Print Campaigns
Print Campaigns Blame G000.BO8Go0o GBGEGOOOs Boo DOGHE880008 Groonlam SWTCHTO THE NEW AGE RESTROOM CUBICLE SYSTEM WITH GREENLAM STURDO. decowood
Slide 49: Learning & Engagement
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Slide 50: Training Programs
Training Programs 49
Slide 51: Carpenter Meets
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Slide 52: Plant Visit
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Slide 53: Wall Painting and Branding
Wall Painting and Branding 52
Slide 54: Annual Campaign For Women – Decowood Design Divas
Annual Campaign For Women – Decowood Design Divas 53
Slide 55: Exhibitions
Exhibitions 54
Slide 56: Brand Stores & SIS
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Slide 57: Press coverage of Chennai display centre
SPROIN, FEATURE, econ DENY ENGINEERED wood: Greenlam Laminates, specialists in interiors, comes to Chennai interior space offerings re- cently brought its flagship brand - Green- am Laminates, to Chennai. The Milam Sales Enterprises. showroom will feature a display of the brand's product range. The
Slide 58: Digital
Fans: 4,30,460 Followers: 3,011 Followers: 1,582 Digital Fans: 1,07,779 Followers: 96 Followers: 278 Fans: 58,375 Followers: 95 Followers: 400 Followers: 7140 57
Slide 59: CSR Initiatives
Eee CSR Initiatives
Slide 60: CSR Programs Undertaken: Health
CSR Programs Undertaken BEHROR | NALAGARH | GHAZIABAD Initiatives in Health Touching Lives of • 6 Youth Information Centers and 4 Smart Parenthood Clubs have been established 16,933 community members • 200 beneficiary groups have been formed and peer led issue based sessions delivered 1,867 adolesce
Slide 61: CSR Programs Undertaken: Education
CSR Programs Undertaken BEHROR | NALAGARH | GHAZIABAD Initiatives in Education Touching Lives of Community-Based Activities Providing reading material at regular intervals to students from standard 1-8 to foster a habit of reading 40+ Teachers among children 1,874 Students Training of Team on Conten
Slide 62: Initiatives at Nalagarh
Initiatives at Nalagarh Meeting with the girls Session on nutrition and pregnancy Meeting with the mothers Activities held on World Population Day 2019 61
Slide 63: Initiatives at Behror
Initiatives at Behror Community Based Activities Poster Making Competitions School Readiness Events 62
Slide 64: Way Forward Approach
Way Forward Approach • Capacity enhancement in laminates • Improving product mix for better realization • Increasing specification and higher share from retail counters • Continuing thrust on floors and doors business in domestic and international markets • Leverage opportunities to get higher share
Slide 65: Financials
senlamindustries.com Financials Greenlam ustries Limited
Slide 66: Consolidated Financial Performance – Q1FY20
Consolidated Financial Performance –Q1FY20 • Consolidated Net Revenue stood flat at INR 289.5 Crores as compared to INR 288.1 Crores • This quarter saw subdued performance as the business was impacted in the quarter due to the upgradation of ERP systems to SAP S/4 HANA which has been stabilized now
Slide 67: Consolidated Financial Performance – Q1FY20
Consolidated Financial Performance –Q1FY20 • Gross Margin improved by 170 bps to 49.5% in Q1 FY20 from 47.8% in Q1 FY19, mainly on account of decline in raw material prices • EBIDTA margin de-grew by 140 bps to 10.3% in Q1 FY20 from 11.7% in Q1 FY19 on account of lower sales, higher SG&A cost and op
Slide 68: Consolidated Financial Performance
Consolidated Financial Performance Profit and Loss Statement INR Crores Q1FY20 Q1FY19 YoY% FY19 Net Revenue 289.5 288.1 0.5% 1,280.7 Raw Material 146.1 150.4 687.8 Gross Profit 143.5 137.7 4.2% 592.93 Gross Margin % 49.5% 47.8% 170 bps 46.3% Employee Cost 52.3 47.3 192.5 Other Expenses 61.3 56.6 241
Slide 69: Laminates & Allied Segment
Consolidated Financial Performance Laminates & Allied Segment INR Crores Q1FY20 Q1FY19 YoY% FY19 Net Revenue 245.6 247.2 -0.6% 1,084.5 Gross Profit 123.6 117.7 5.0% 504.5 Gross Margin % 50.3% 47.6% 270 bps 46.5% EBIDTA 30.8 32.5 -5.1% 148.0 EBIDTA Margin % 12.6% 13.1% -50 bps 13.6% Capital Employed
Slide 70: Laminates & Allied Segment: Production and Sales
Consolidated Financial Performance Laminates & Allied Segment Production and Capacity (Mn Average Realisation (INR / Sales (Mn Sheets) Sheets) Sheet) -4.4% -12.5% +9.7% 3.51 3.42 3.51 3.27 3.16 818 2.77 746 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Capacity Production -1.4% -2.0% +10.3% 13.6913.87 1
Slide 71: Veneers & Allied Segment
Consolidated Financial Performance Veneers & Allied Segment INR Crores Q1FY20 Q1FY19 YoY% FY19 Net Revenue 44.0 41.0 7.3% 196.2 Gross Profit 19.8 20.0 -0.8% 88.4 Gross Margin % 45.1% 48.8% -370 bps 45.1% EBIDTA -1.0 1.2 -176.9% 10.6 EBIDTA Margin % -2.2% 3.0% -520 bps 5.4% Capital Employed 226.4 193
Slide 72: Decorative Veneers: Production and Sales
Consolidated Financial Performance Decorative Veneers Production and Capacity Sales Average Realisation (Mn Sqmt) (Mn Sqmt) (INR / Sqmt) -16.8% +9.1% -19.2% 1.05 1.05 0.39 739 806 0.31 0.41 0.34 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Capacity Production +12.7% -0.1% +9.5% 4.20 4.20 1.75 737 736 1
Slide 73: Engineered Wooden Floors and Doors
Consolidated Financial Performance Engineered Wooden Floors and Doors Revenue (INR Crores) EBIDTA (INR Crores) Capacity Utilization 11.5 17% 18% 19% 8.3 7.1 -1.3 -1.2 11% -1.3 4.1 -2.5 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Floors Doors Floors Doors Floors Doors 43.0 18% 18% 14% 26.2 -3.3 -3.3 11
Slide 74: Operating Parameters – Net Working Capital Days
Consolidated Financial Performance Operating Parameters- Net Working Capital (Days) Net Working Capital Days In Days Q1FY19 Q1FY20 FY19 +12 Inventory 89 111 88 97 85 90 Debtors 49 43 50 Q1FY19 Q1FY20 FY19 Creditors 53 56 48 Net Working Capital 85 97 90 73
Slide 75: Return Ratios – ROCE & ROE
Consolidated Financial Performance Return Ratios – ROCE & ROE ROCE INR Crores Q1FY19 Q1FY20 FY19 17.2% 15.5% 11.4% EBIT 25.1 20.7 123.2 PAT 15.3 8.4 77.1 Q1FY19* Q1FY20* FY19 Capital Employed 648.2 724.2 718.3 ROE Net Worth 373.5 436.8 428.4 18.0% 16.4% 7.7% ROCE 15.5% 11.4% 17.2% Q1FY19* Q1FY20* FY
Slide 76: Debt Position
Consolidated Financial Performance Debt Position Debt-Equity Ratio INR Crores\ Q1FY19 Q1FY20 FY19 0.68 0.63 0.61 Long Term Debt 112.7 101.6 110.7 (Including current portion) Short Term Debt 142.8 163.1 159.0 Q1FY19* Q1FY20* FY19 Total Debt 255.5 264.7 269.7 Debt-EBIDTA Ratio Net Worth 373.5 436.8 42
Slide 77: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Greenlam Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L21016AS2013PLC011624 CIN: U74140MH2010PTC204285 Mr. Ashok Sharma - CFO Mr. Shogun Jain / Mr. Shrikant Sangani Email: ashok.sharma@greenlam.com shogun.ja
Greenlam Industries — Q1 FY2020 Earnings Presentation on 6ix