Greenlam Industries Ltd · NSE:GREENLAM

Greenlam Industries — Investor Presentation (August 2016)

60 slides from Greenlam Industries's investor presentation, Aug 2, 2016

1. Slide 1: Analyst Meet Presentation

   Analyst Meet Presentation 2nd August - 2016

2. Slide 2: Safe Harbor

   Safe Harbor 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 s

3. Slide 3: Team

   Greenlam Industries Limited

4. Slide 4: Board Members

   Board Members Mr. Shiv Prakash Mittal Mr. Saurabh Mittal Non Executive Chairman Managing Director & CEO Ms. Parul Mittal Mr. Vijay Kumar Chopra Director Design & Marketing Independent Director Ms. Urvashi Saxena Ms. Sonali Bhagwati Dalal Independent Director Independent Director 4

5. Slide 5: Management Team

   Management Team Saurabh Mittal Parul Mittal Managing Director & Director Design & CEO Marketing Ashok Sharma B L Sharma Prashant Srivastava Alex Joseph Chief Financial President - Plant Vice President - Sr. Vice President - Officer Operations HR, CSR, & Admin Marketing Anuj Sangal Anil Tyagi Shivaji

6. Slide 6: International Team

   International Team Vaibhav Sharma Vishal Kapur Dittakan Tippawan Director, US & COO, UK COO, APAC Director, Thailand 6

7. Slide 7: A Value Driven Organisation

   A Value Driven Organisation Trust Performance Learning Speed and Agility Team Work 7

8. Slide 8: Who we are

   Greenlam Industries Limited

9. Slide 9: Who we are

   Who we are We are in the business of Transformation of space, with over 2 decade of experience, raising the bar of excellence Laminate & Allied Veneer & Allied Compact Decorative Mikasa Floor Mikasa Door Laminates Sturdo MFC Veneer Panel Standard Compact Natural Melamine Panel Veneer Engineered Line

10. Slide 10: Leadership

    Leadership Among World’s Top 3 Laminate Producers Asia’s Largest Laminate Brand India’s No.1 Decorative Laminate & Veneer Brand India’s Largest Exporter of Laminates India’s only manufacturer of Engineered Wood Flooring India’s 1st organised manufacturer of Engineered Door sets (Door & Frame) 10

11. Slide 11: Product Milestones

    Product Milestones 2016 Engineered Doors & • Engineered Doors Frames • Decorative • Teak & Engineered Teak and Engineered • Laminates Natural Veneer Veneer Veneer Engineered Wood Flooring 1992 1993 2002 2014 2015 Decorative Natural Veneer Laminates for • Laminates for • Engineered Exports Exports Wo

12. Slide 12: The Leading Brands

    The Leading Brands India’s only Integrated and Largest manufacturer of Decorative Surfacing Products from Laminate & Wood Panel Industry 12

13. Slide 13: Leadership in Manufacturing – Capabilities & Capacities

    Leadership in Manufacturing – Capabilities & Capacities Laminates & Compact State of the Art Manufacturing 12.02 Mn Sheets* Largest in Asia Facilities Laminates Decorative Veneers 4.20 Mn Sqm Largest in India Complements the Melamine Faced 2.00 Mn Sqm Laminates & Allied Chipboard - MFC Products Engi

14. Slide 14: Products & Solutions

    Greenlam Industries Limited

15. Slide 15: Decorative Laminates and Allied – Laminates

    Decorative Laminates and Allied Laminates • Laminates are decorative surface material, used on top of a substrate like plywood, MDF or a particle board as a surface cover • Greenlam laminate is the flagship brand of Greenlam Industries Limited • Market Leader in Laminates with a wide range of 2,500+

16. Slide 16: Decorative Laminates and Allied – Compact Panels

    Decorative Laminates and Allied Compact Panels • Self Sustainable boards panels made with decorative surface papers with décor finish on both sides • Our product is offered in three variants • BOARD || REST ROOM CUBICLE || CLADING ( Exterior façade & panels) • Greenlam Offerings • Greenlam Compact p

17. Slide 17: Decorative Laminates and Allied – Compact Panels

    Decorative Laminates and Allied – Compact Panels Restroom Cubicles Interior Clads Lockers Exterior Clads 17

18. Slide 18: Melamine Faced Chipboard MFC

    Melamine Faced Chipboard MFC • MFC - Melamine Faced Chip Board is an engineered particle wood product Décor paper impregnated with Melamine • Greenlam offers • Laminated MFC for the use in organised carpentry primarily by Particle Board Core OEM’s like modular furniture manufacturers, kitchen manufa

19. Slide 19: Decorative Veneer and Allied

    Decorative Veneer and Allied Offers 200+ exotic & imported natural veneer wood species Products across Natural, Teak and Engineered Segment 19

20. Slide 20: Decorative Veneer and Allied – Engineered Wood Flooring

    Decorative Veneer and Allied • “Mi Casa , Su Casa” – Mikasa is the 1st Indian Brand of Engineered Wood Floors • State of art manufacturing facility with Latest European Engineered Wood Flooring technology • Highest range offering: 111 sku’s • All Raw Material & Hardwood imported from the best source

21. Slide 21: Decorative Veneer and Allied – Engineered Doors

    Decorative Veneer and Allied • First organised company to launch engineered, factory finished, door solutions in the country • Capacity 120,000 Doors units / annum Engineered Doors + Frames • Integrated with existing decorative veneer and engineered wood flooring, driving better synergy • Presents f

22. Slide 22: Laminate Plant

    BW Laminate Plant Greenlam Industries Limited 22

23. Slide 23: Decorative Veneer Plant

    aX |B Decorative Veneer Plant Greenlam Industries Limited 23

24. Slide 24: Engineered Floor Plant

    Engineered Floor Plant Greenlam Industries Limite 24

25. Slide 25: Engineered Door Plant

    bY 4 Engineered Door Plant Greenlam Industries Limited

26. Slide 26: Robust Network

    Robust Network 2 State of The Art Manufacturing Facilities 9 Company owned large Regional Distribution Centres Over 500 Sales Professionals 32 Branch offices 12,000+ distributors, dealers & retailers – Manufacturing Base Largest in the country Branch Offices Regional Distribution Centres 26

27. Slide 27: Global Footprints

    Global Footprints Present in 100+ Countries 3 Overseas subsidiaries 11 International offices 5 Company operated distribution centers Over 100+ overseas employee 27

28. Slide 28: Certifications

    Greenlam Industries Limited GREENGUARD N74 | GREENGUARD i PEFC PEFC/90-31-081 28

29. Slide 29: Brand Marketing

    Greenlam Industries Limited

30. Slide 30: Customer Segments

    Customer Segments Specifier Consumer Residential Architects Interior Designer Project Management Consultants Condominiums Independent Houses Commercial Influencer Corporates Houses Dealers Govt & Institutional Buyers Contractors Builders & Developers Carpenters OEM’s Installers 30

31. Slide 31: Marketing Approach

    Marketing Approach PRINT DIGITAL O BRAND EVENTS & ACTIVATIONS STORES MARKETING PR EXHIBITIONS 31

32. Slide 32: Print

    Print Print Campaigns Aili ookboxliv ng) 2 | BW Greenlam Industries Limited © Mikasa decowood |

33. Slide 33: Digital Presence

    @ Mikasa deconood 700 hits/month 3,000 hits/month FOLLOWERS FOLLOWERS fia 102,586 F 53.043 15 10 © MOBILE APP MOBILE APP Launched Work in Progress aw ee SEM campaign in 12 countries m [EJ 880 followers USA, Canada, Mexico, Colombia, Finland, UAE, Singapore, Italy, Green I am 4,700 hits/month Thailan

34. Slide 34: Activations

    Activations Partner Meets & Launches Inshop Carpenter meets 34

35. Slide 35: Exhibitions

    a LB Exhibitions Greenlam ies Limited

36. Slide 36: International Exhibitions

    International Exhibitions Brand Marketing - Exhibitions Over 17 International exhibitions 36

37. Slide 37: International Exhibitions

    International Exhibitions 37

38. Slide 38: Brand Stores

    +) Greenlam Industries Limite 38

39. Slide 39: The Way Forward

    Greenlam Industries Limited

40. Slide 40: Growth Drivers

    Category Drivers – Domestic Market Urbanization 100 Smart Cities, Swachh Bharat, 600 million by 2031 Consumer Class Growth Favorable demographics, shift for brands GST Drivers Millionaire Households Shift from unorganized to organized 2.86 to 6.94lcs by 2020 Real Estate Bill Tighter Building Regulat

41. Slide 41: Category Drivers – Our Readiness

    Category Drivers – Our Readiness • Pan India network - Edge to service the smart city development • Adoption of modern & hygienic restroom will lead to deeper penetration of RC business • The large product portfolio along with latest décor will serve the growing consumer class • Implementation of GS

42. Slide 42: Decorative Laminates Strategy – Domestic Market

    Decorative Laminates Strategy – Domestic Market Total Market Size Domestic Market Ready for the opportunity without INR 4600 Crs INR 3700 crs significant Capex 1400 150% 3700 33% 6 Mn 900 sheets 100% ~17% 2300 12.02 2 mn sheets With Existing 12.02 Mn Infrastructure Mn sheets sheets 19% market share

43. Slide 43: International Opportunity

    International Opportunity Greenlam Exports FY16 USA, 18% Europe, Global Market 12% APAC, 43% • Market Size – $7 Billion Others, 27% • This market is growing by 2-3% India Laminate • Greenlam presence in 100+ countries Exports INR 900 Crs • Exports grew at a CAGR of 18% over the past 5 years • Focus

44. Slide 44: Decorative Veneer Strategy

    Decorative Veneer Strategy Added in FY16 Natural Veneer Teak Veneer Market Engineered Veneer Total Veneer Market Market Size Size Market Size Size 950 250 150 550 550 250 250 1050 Un-Organised Organised INR 800 Crs INR 800 Crs INR 400 Crs INR 2000 Crs 12% market share in FY15 Utilization at 25% FY16

45. Slide 45: Engineered Floor Strategy

    Engineered Floor Strategy • Market is estimated at 2Mn.sqm • Category is witnessing a 20-25% growth • No domestic manufacturer • Majority demand met through import • Increasing market reach with architect/designer engagements • Increasing B2B outreach • Increase retail footprints through Exclusive D

46. Slide 46: Engineered Door Strategy

    Engineered Door Strategy • Door (including flush door) market is estimated at 24mn annually • Engineered Finished Door category is witnessing a 20-25% growth • No organised players providing complete solution • Increasing market reach with architect/designer engagements • Increasing B2B outreach • P

47. Slide 47: Financial Overview

    we reenlam Industries Limited Financial Overview

48. Slide 48: Strong FY16 Performance

    Strong FY16 Performance FY16 Growth Revenue at INR 937crores, growth led by good performance in • Domestic Sales with a growth 16.4% • Decorative veneer & Allied segment grew by 40% backed by new launches 52% Gross Margin at 44.7% up by 530 bps in FY16 from 39.4% in FY15 33% 11% EBIDTA stood at INR

49. Slide 49: Performance Continues – Q1FY17

    Performance Continues – Q1FY17 Q1 FY17 Growth Revenue at INR 235 crores, growth led by… • Overall sales growth up by 8% • Domestic Laminates grew by 20% 41% 23% • Decorative Veneers & Allied segment grew by 12% 8% Gross Margin at 46.4% up by 470 bps in Q1FY17 from 41.7% in Q1FY16 Sales EBIDTA PAT EB

50. Slide 50: Profit and Loss Statement - Standalone

    Profit and Loss Statement - Standalone INR Crores Q1 FY17 Q1 FY16 YoY% FY16 FY15 YoY% Revenue 235.1 217.0 8.3% 936.7 844.6 10.9% Raw Material 126.0 126.5 517.8 511.5 Employee Cost 30.5 24.9 104.3 78.9 Other Expenses 48.0 40.8 190.6 161.3 EBITDA 30.5 24.8 23.1% 123.9 92.9 33.4% EBITDA Margin % 13.0%

51. Slide 51: Laminates & Allied Segment

    Laminates & Allied Segment INR Crores Q1FY17 Q1FY16 YoY% FY16 FY15 YoY% Net Sales of Laminates & Allied Products 203.4 188.7 7.8% 797.4 745.2 7.0% EBIDTA 32.2 22.1 45.7% 113.8 75.5 50.8% EBIDTA Margin % 15.8% 11.7% 410 bps 14.3% 10.1% 420 bps Capital Employed 299.9 337.7 314.1 331.8 51

52. Slide 52: Laminates & Allied Segment

    Laminates & Allied Segment Production and Capacity Sales in Mn Sheets Average Realisation (INR / Sheet) (Quarterly) in Mn Sheets +8.3% +7.1% +0.3% 3.013.08 2.83 3.03 629 2.512.84 627 Q1FY16 Q1FY17 * Q1FY16 Q1FY17 Q1FY16 Q1FY17 Capacity Production +3.2% +2.5% +5.5% 12.02 11.79 11.56 11.85 10.02 11.42

53. Slide 53: Decorative Veneers & Allied Segment

    Decorative Veneers & Allied Segment INR Crores Q1FY17 Q1FY16 YoY% FY16 FY15 YoY% Net Sales of Decorative Veneers & Allied 31.7 28.3 11.9% 139.3 99.4 40.1% Products EBIDTA -1.7 2.8 10.13 17.45 -41.9% EBIDTA Margin % - 9.7% - 7.3% 17.5% -1020 bps Capital Employed 185.1 156.1 176.5 142.4 * EBIDTA and M

54. Slide 54: Decorative Veneers

    Decorative Veneers Production and Capacity Sales in Mn Sqmt Average Realisation (INR / Sqmt) (Quarterly) in Mn Sqmt -17.5% +4.2% 0.0% 1.05 1.05 0.35 0.35 734 765 0.40 0.33 Q1FY16 Q1FY17 Q1FY16 Q1FY17 Q1FY16 Q1FY17 Capacity Production +51.9% +46.8% -11.8% 4.20 4.20 1.60 868 766 1.09 1.06 1.61 FY15 FY

55. Slide 55: Geographic Segments

    Geographic Segments Domestic (INR Crores) Exports (INR Crores) +18.0% +16.4% +3.1% -3.6% 141 576 97 94 361 120 495 350 Q1FY16 Q1FY17 FY15 FY16 Q1FY16 Q1FY17 FY15 FY16 55

56. Slide 56: Improving Operating Parameters

    Improving Operating Parameters ROCE ROE Net Working Capital Days 17.0% 16.0% 16.4% 16.4% 66 56 59 59 12.2% 13.3% 12.4% 10.9% FY15 FY16 Q1FY16 Q1FY17 FY15 FY16 Q1FY16 Q1FY17 FY15 FY16 Q1FY16 Q1FY17 INR Crores Q1FY16 Q1FY17 FY15 FY16 In Days Q1FY16 Q1FY17 FY15 FY16 Revenue 217.0 235.1 844.6 936.7 Inve

57. Slide 57: Balance Sheet – Standalone

    Balance Sheet – Standalone (INR Crores) Liabilities Mar – 16 Mar – 15 (INR Crores) Assets Mar – 16 Mar – 15 Shareholder’s Fund 264.5 227.1 Non-Current Assets 380.7 346.7 Share capital 12.1 12.1 Fixed assets 342.3 320.6 Reserves & Surplus 252.4 215.0 Non-Current Investments 24.1 17.5 Borrowings 254.4

58. Slide 58: Consolidated Operating Performance – FY16

    Consolidated Operating Performance – FY16 Revenue INR Cr EBIDTA INR Cr PAT INR Cr +11% +38% +95% 1,030 129.5 37.7 926 94.0 19.3 FY15 FY16 FY15 FY16 FY15 FY16 Gross Margin EBIDTA Margin PAT Margin +480 bps +240 bps +160 bps 47.8% 12.6% 3.7% 43.0% 10.2% 2.1% FY15 FY16 FY15 FY16 FY15 FY16 58

59. Slide 59: Consolidated Balance Sheet Performance – FY16

    Consolidated Balance Sheet Performance – FY16 Capital Employed Net Worth INR Cr Net Debt INR Cr INR Cr +12% +3% -7% 245 622.2 641.4 386.4 359.7 220 FY15 FY16 FY15 FY16 FY15 FY16 Working Capital ROCE ROE Days +530 bps +660 bps -3 Days 14.8% 15.4% 89 86 9.4% 8.8% FY15 FY16 FY15 FY16 FY15 FY16 59

60. Slide 60: 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 Ms. Ruchi Rudra/ Ms. Neha Shroff Email: ashok.sharma@greenlam.com rruchi@sgapl.ne

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