Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q4 FY2024 Earnings Presentation
28 slides from Asian Paints's earnings presentation, May 9, 2024
Slide 1: Exchange intimation letter on investor presentation
APL/SEC/32/2024-25/5 9th May 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Security Code: 500820 Symbol: ASIANPAINT Sir/Madam, Sub: Intimation und
Slide 2: Investor Conference Q4 - FY2024 Results
¥ 2 Investor Conference Q4 - FY2024 Results
Slide 3: Delivering joy since 1942
Delivering joy since 1942…. We exist to Beautify, Preserve, Transform all Spaces and Objects, bringing happiness to the World! 2
Slide 4: Disclaimer
Disclaimer This communication, except for the historical information, may contain statements which reflect the Management’s current views and estimates and could be construed as forward-looking statements. The future involves many risks and uncertainties that could cause actual results to differ mat
Slide 5: Decorative Business (India)
Double – Digit Volume Growth in Q4 Topline Impacted by Price Reductions Passed on to Consumers & Downtrading Q4 FY'23 Decorative Business (India) 19.4% 4 Yr CGR Q4 FY'24 18.1% 4 Yr CGR 16% 10% 13.1% -1.8% Volume Gr% Value Gr% FY'23 16.0% 4 Yr CGR 16.5% 4 Yr CGR FY'24 20.0% 14% 9% 3.0% Volume Gr% Val
Slide 6: Decorative Plus Industrial Paints
Decorative Plus Industrial Paints Industrial Business Sustained its High Growth Trajectory Q4 FY'23 Q4 FY'24 19.3% 4 Yr CGR 18.4% 4 Yr CGR 16% 13.1% 10% -0.7% Volume Gr% Value Gr% FY'23 16.3% 4 Yr CGR FY'24 16.0% 4 Yr CGR 14% 20.7% 10% 3.9% Volume Gr% Value Gr% 5
Slide 7: Decorative Business (India)
Resilient Double - Digit Volume Growth on 4 Year Compounded Growth Rate Basis Decorative Business (India) *20.3% *17.5% *14.8% *15.9% *17.5% *14.7% *14.9% *19.4% 200 180 160 140 120 100 80 60 40 20 - Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1FY24 Q2 FY24 Q3 FY24 Q4 FY24 Quart
Slide 8: Key Performance Drivers
Key Performance Drivers Overall, a weak demand environment in Q4 Projects / Institutional Business continued to Demand in rural areas especially impacted by grow well Decorative Business (India) overall inflationary pressures Largely driven by Builder & Factories segment. Pre-election slowdo
Slide 9: Investments to Support Next Phase of Growth
Investments to Support Next Phase of Growth Capex in Progress Status Decorative Business (India) Greenfield water-based Completed land acquisition; Statutory approval process WIP. paint manufacturing facility with a capacity Targeting completion by CY28 of 4 lakh KL p.a. (Madhya Pradesh) Brownfield
Slide 10: Revolutionizing the Industry with Neo Bharat Latex Paint
Decorative Business (India) Revolutionizing the Industry with Neo Bharat Latex Paint Penetrating the unorganized segment with a branded solution which is smart, affordable & accessible to consumers Har Ghar Khelega, Har Ghar Khilega | Colours of Progress 9
Slide 11: Creating Differentiation in the Market
Creating Differentiation in the Market Innovation for every consumer segment across products and services Tribute to Tamil Nadu Initiative on Pongal Neo Bharat Latex to Royal Glitz Decorative Business (India) Beautiful Homes Painting Services New products contribute in double digits to overa
Slide 12: COLOUR NEXT: 2 Decades+ of Colour Forecasting
COLOUR NEXT: 2 Decades+ of Colour Forecasting Collaborating with experts mapping consumer behavior, consumption patterns, socio-cultural sentiments & lifestyle shifts Into the Deep “Embracing the Fantastical Soil “Refining the Earth into Modern Depths of Oceanic Marvels” Sanctuaries” Indo Futurism “
Slide 13: Home Décor Business
HOME DÉCOR BUSINESS 12
Slide 14: Our Home Décor Foray
Our Home Décor Foray No. 1 Integrated Kitchen, Kitchen Hardware Bath & Sanitary Designer and General Tiles Home Décor & Components No. 1 in Player ~ 4% of Decorative Decorative Lighting 60 Beautiful Revenue Homes Stores – One Stop Home Wardrobes and Vanities Fabric and Furnishing Designer Wallpaper
Slide 15: Kitchen & Bath: Difficult Demand Conditions
Kitchen & Bath: Difficult Demand Conditions Gaining from Synergies with Beautiful Homes Network Kitchen Business -8% Q4 FY24 FY24 394 ~3% growth in revenue in Q4 post 5 quarters of de- growth Home Décor Business Efforts centered around expansion of reach 3% 101 -1 -5 Strong focus on driving op
Slide 16: White Teak & Weatherseal: Expanding Home Décor Offerings
White Teak & Weatherseal: Expanding our Home Décor Offerings White Teak (Offering Decorative & Designer Lights) Net Sales of ₹ 47.7 crs in Q4 with 33% growth; Full Home Décor Business year sales at ₹ 133.4 crs, growth of 23% Weatherseal (uPVC Windows and Doors) Net Sales of ₹ 15.6 crs in Q4 with
Slide 17: Sabyasachi with Asian Paints Paris-Kolkata collection
In their 10th year of association, Sabyasachi with Asian Paints presented their Paris-Kolkata collection of wallpapers and fabrics 16
Slide 18: International Business
Nepal Bangladesh Solomon Islands Indonesia UAE Ethiopia Sri Lanka 7) n cD) A= a = [aa o Cc 2 _ © = — p<) _ =
Slide 19: International Business: Strengthened Profitability
Strengthened Profitability Undeterred by Macro-economic Headwinds Revenue -1% 3,061 Q4 FY24 FY24 Q4 growth of 2% in INR terms; Double-digit growth ex- Nepal Sturdy growth in Africa & Middle East -12% International Business 10% Continuation of a subdued performance in Asian markets: 2% 7% 1,216
Slide 20: Industrial Business Growing in Strength
Industrial Business Growing in Strength Q4 FY24 FY24 PPGAP 10% 2,015 Double-digit revenue growth in Q4 & FY24; benefiting from growth in Auto OEM segment 10% Industrial Business 51% Moderating raw material prices led to improvement 24% 471 356 69 in margins FY24 PBT margin at 17.7% vs. 12.9% l
Slide 21: Sustained Gross Margins through Sourcing & Formulation Efficiencies
Sustained Gross Margins through Efforts on Sourcing & Formulation Efficiencies Material Inflation Material Inflation Material Deflation Material Deflation Material Inflation ~6% ~2% Material Deflation Material Deflation Material Deflation Material Deflation ~0.2% ~1.8% ~1% Price Increase Price Incre
Slide 22: Summary Standalone Financials
Summary Standalone Financials Q4 Q4 FY24 Q4 FY23 Net Sales de-growth of ~2% driven by price cuts & downtrading despite double-digit volume growth -2% 7,444 Gross margins at 44.4% in Q4; 140 bps improvement over 1% Q4 last year; Driven by softening raw material prices and 3,306 sourcing & formula
Slide 23: Summary Consolidated Financials
Summary Consolidated Financials Q4 Q4 FY24 Q4 FY23 Net Sales de-growth of ~1% -1% 8,701 Gross margins at 43.5% in Q4; 120 bps improvement over 2% Q4 last year; Supported by better gross margins even in 3,787 -9% Industrial Business -6% 1% 1,691 1,624 1,275 PBDIT margin at 19.4% vs. 21.3% in Q4
Slide 24: Consistently Rewarding Shareholders
Consistently Rewarding Shareholders 60.0% Board of Directors recommended final 33.30 dividend of ₹ 28.15 / 60.0% share (2815%) 25.65 Interim dividend of 58.6% ₹ 5.15 / share (515%) 56.1% declared in Oct’23 19.15 17.85 Total dividend for FY24 at 51.1% ₹ 33.30/ share, dividend 12.00 payout of 60
Slide 25: Outlook for FY25
Outlook for FY25 Rural markets seem to be picking up and we expect Q1 demand to be supported by that sentiment. Strong focus on the bottom of the pyramid which offers good potential to grow and enlarge the pie B2B business expected to pick up in Q2 post election results and we anticipate strong
Slide 26: ESG at our Core
ESG at our Core Environment Governance • Product Stewardship • Building a resilient organization • Water Neutrality • World-Class Governance • Energy Conservation • Building a sustainable and • Nature Positive responsible supply chain Social • Building Safety Culture • Energising, Equitable & Inclus
Slide 27: Near & Medium-Term Sustainability Targets
Near & Medium-Term Sustainability Targets 2030 Target 6x 83% 6.5 2025 Target 4x 81% 5.0 Current Status 3.9x 77% 3.5 Fresh Water Replenishment Reduction in Specific Beneficiaries of Hazardous Waste/KL Healthcare Initiatives Finished Product (kg/KL) (lakhs) Assurance by independent agency in process.
Slide 28: Continuing our Work of Democratizing Décor
THANK YOU Continuing our Work of Democratizing Décor Ukkadum Art District, situated at Coimbatore, continues its initiative to develop into Tamil Nadu's third and India's seventh open-air art gallery, welcoming everyone to experience art in public spaces 27