Century Plyboards (india) Ltd. · NSE:CENTURYPLY
Century Plyboards (india) — Investor Presentation (November 2016)
63 slides from Century Plyboards (india)'s investor presentation, November 2016
Slide 1: Past, Present and Future
PAST, % PRESENT CENTURYPLY AND FUTURE.
Slide 2: Disclaimer
DISCLAIMER This presentation and the accompanying slides (the “Presentation”), which have been prepared by Century Plyboards (I) Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any sec
Slide 3: Contents
A BRIEF HISTORY OF CENTURYPLY AN OVERVIEW OF OUR PRESENT-DAY CAPABILITY EARNING DISTRIBUTION CAPITAL EVOLUTION OUR LEADERSHIP OUR MANAGEMENT TEAM THE JOURNEY OF BRAND CENTURYPLY OUR BRANDS OUR LOCATIONS ADOPTING THE BEST HR AND IT PRACTICES —/—/O0/;/O;N/O/a|/B/@w)dy/— -|o AN OVERVIEW OF THE INDUSTRY
Slide 4: A Brief History of CenturyPly
A BRIEF HISTORY OF CENTURYPLY
Slide 5: Company milestones 2005-2016
2016: (1) Launch of New Age Products — Zykron and Starke (Wood Polymer Composite and Cement Fibre Boards) (2) Set up Particle Board Unit at Chennai (3) Construction of MDF unit at Hoshiarpur (Punjab) starts 2015: (1) Century Doors launched — flush, panel moulded and decorative ranges (2) Set up of L
Slide 6: An Overview of Our Present-Day Capability
AN OVERVIEW OF OUR PRESENT-DAY CAPABILITY
Slide 7: CenturyPly is India's Leading Integrated Wood Panel Company
CENTURYPLY IS INDIA’S LEADING INTEGRATED WOOD PANEL COMPANY Our expertise extends to Controls 25% of the the following products organized plywood market Plywood Strategically located manufacturing ee wins Has timber peeling Prelam Kolkata (Eastern part of India) capacity of 21 0,000 CBM MDF Kandla (
Slide 8: Laminates, CFS and Future Businesses
Laminates — is among the top 3 laminate producers in India — is the fastest growing laminate brand in the country and we are aiming for leadership position soon — has a fully integrated plant near Kolkata — has a production capacity of 4.8 million sheets annually — focuses on niche segments and valu
Slide 9: Earning Distribution
EARNING DISTRIBUTION
Slide 10: Segment Contribution in 2015-16
Segment Contribution in 2015-16 TURNOVER EBIDTA 2000 350.00 41.59 Be ae 30.11 1500 a 343.40 250.00 =I Ex a5 33.84 54.27 1000 ae. ais. pate pr ae 200.00 1) 202.97 197.13 792.18 826.12 150.00 ae, oan 1747 500 g00100 ror 54 1 50.00 71.96 0 . -2.63 -2.67 -1.96 “112 2011-12 2012-13 2013-14 2014-15 2015-1
Slide 11: Capital Evolution
CAPITAL EVOLUTION
Slide 12: Capital evolution history
DATE Event No. FV Rs. Issue Rs. Rs. Crores Rs. Crores 1982-1993 Initial shares to promoters 240,100 10 10 24 24 31.03.1994 Merger of Ramkrishna Veneer 93,110 10 - .09 - 05.01.1996 Bonus issue 3 for 1 held 999,630 10 - 1.00 - 27.05.1997 Maiden public issue Rs. 10 premium 3,682,040 10 20 3.68 7.37 27.
Slide 13: Our Leadership
OUR LEADERSHIP
Slide 14: Executive Chairman, CEO and Managing Directors
Mr. Sajjan Bhajanka - our Executive Chairman and one of our founder members - is a graduate with over 45 years of industry experience. He is directly responsible for the overall strategic direction, production, finance and treasury. He is also the president of the Federation of Indian Plywood and Pa
Slide 15: Managing Director, Vice Chairman and Directors
Mr. Vishnu Khemani is also a Managing Director and is a graduate with 30 years of industry experience. He heads timber procurement and the South India operations of our Plywood division. He holds 8.37% of the total share holding. Mr. Hari Prasad Agarwal is our Vice Chairman. He is a Graduate with ov
Slide 16: Our Management Team
OUR MANAGEMENT TEAM
Slide 17: Management team: technical, finance, international
Mr Ajay Baldawa is our Executive Director (Technical). He is an M.Tech from IIT with over 30 years of experience in the plywood industry. He takes care of all technical matters and is a member of the BIS Technical Committee for plywood. Mr. Arun Julasaria is the CFO. He is an FCA, FCS with varied ex
Slide 18: Management team: branding, HR, plywood
Mr. Amit Gope is our GM (Branding). He has an MBA in Marketing from XIMB with over 21 years of experience including 7 years with brands such as Vodafone, Airtel and Uninor. He handles all brand and communication related activities. Mr. Sugata Halder is our GM (Human Resources). He has a PGDM in Huma
Slide 19: The Journey of Brand CenturyPly
THE JOURNEY OF BRAND CENTURYPLY
Slide 20: Brand-building taken with utmost seriousness
Brand-building is taken with utmost seriousness From the early days, association with stars and films was an integral part of this We have also associated with stars such as Shah Rukh Khan and Amitabh Bachchan through movies like Billu Barber, My Name is Khan and Aarakshan In the last two market res
Slide 21: Our Brands
OUR BRANDS
Slide 22: Our brands
‘a o ‘a CENTURYPLY CENTURYLAMINATES CENTURYVENEERS CENTURYDOORS ® ‘ ® or ® CENTURYPRELAM CENTURYWMIDF CENTURYIVIDF & o UO) CENTURYEXTERIA CENTURYTEAK CENTURYFACEVENEERS rative Exterior Laminates a 9 zyKfon 46 STARKE Saini baasceneN poannsf Piha PVC SHEETS puyWo0o HAMESHA TALYYAR
Slide 23: Our Locations
OUR LOCATIONS
Slide 24: Domestic Network
DOMESTIC NETWORK MANUFACTURING UNIT BRANCH OFFICE REGIONAL DISTRIBUTION CENTRE(RDC) CONTAINER FREIGHT STATION DISTRIBUTION NETWORK* Manufacturing Units Ply* Laminates CFS *Includes one subsidiary (51%) unit # Ply Myanmar is 100% subsidiary Branch Offices / Depot 35 Regional Dist. Centre 6 Distributi
Slide 25: International locations
Slide 26: Adopting the Best HR and IT Practices
ADOPTING THE BEST HR AND IT PRACTICES
Slide 27: Software that keeps us ahead of the curve
SOFTWARE THAT KEEPS US AHEAD OF THE CURVE cecorative veneers INSPECTION PORTAL LAUNCH & First in the category «= Taking veneer sales from physical to digital space SAP HANA - the latest in business analytics & Saving resources spent on travel and physical inspection “+ FIRST implementation of SAP HA
Slide 28: Discovering, developing and retaining talent
DISCOVERING, DEVELOPING AND RETAINING TALENT & & PMS & INCREMENT PROCESS : PMS & Increment processes were closed in record time, and the announcements were made by June end CENTURION EXPRESS: The pilot launch of Employee Self-Service portal, called Centurion Express, was carried out in Kolkata and H
Slide 29: An Overview of the Industry Today
AN OVERVIEW OF THE INDUSTRY TODAY
Slide 30: Plywood industry: organized vs local players
50% CONTROLLED BY 30% CENTURYPLY AND GREENPLY (ORGANIZED) 50% CONTROLLED BY LOCAL PLAYERS
Slide 31: Growth and its drivers
GROWTH AND ITS DRIVERS 25-30% | FACTORS DRIVING GROWTH Growing real estate and construction sector 1 0% New government’s emphasis on infrastructure and housing L Rising per capita income and growing employment opportunities Urbanization and government proposal of new satellite cities | Affordable ho
Slide 32: Advantages of the organized sector
ADVANTAGES OF THE ORGANIZED SECTOR € Organized sector share has grown from 10% (a decade back) to 30% & Excise duty of 16% which was reduced to 8% in 2006 and now pegged at 12% a Migration from sales tax to VAT system, the credit for state taxes is available in subsequent transactions & Organized se
Slide 33: GST: levelling the playing field
GST— LEVELLING THE PLAYING FIELD & GST will address the complexities and inefficiencies of current indirect tax framework through robust technology platform. Post GST, clandestine business will be almost impossible GST will put both the organized and the unorganized sector at a level playing field &
Slide 34: Ready to take advantage of the change
READY TO TAKE ADVANTAGE OF THE CHANGE Our position in the market Pan India presence with strategic locations of six manufacturing facilities across all parts of India (North, South, East, West, North-East, and Central) «~~ Robust pan India distribution network of 35 branches with adequate warehousin
Slide 35: The Laminates Industry
THE LAMINATES INDUSTRY oS & & & & Laminates are used to provide an aesthetic look to plywood Business synergy - Plywood and Laminates have same customer base Growth drivers for Laminates are the same as Plywood The Laminates market is organized and semi-organized Raw Material for Laminates are paper
Slide 36: Laminates: ready for growth
READY FOR GROWTH Our position in the market & CenturyPly is the third largest producer of Laminates in India & Green Lam, Merino and Royal Touch are peers #3 We have augmented our capacity from 2.4 to 4.8 million sheets & Higher realisation for laminates sales in both domestic and international mark
Slide 37: Tapping into logistics with CFS
TAPPING INTO LOGISTICS WITH CFS & First privately owned CFS of Eastern #% Entitled to 10 years Tax benefit U/s India (at Kolkata Port) 801A of the Income Tax Act #s Two CFS covering 1 lac square meter ¢ Operational since 2008-09 area €s High EBIDTAbusiness with very low + Complete new facilities wit
Slide 38: Mapping Our Future
MAPPING OUR FUTURE
Slide 39: Our ambition is to maintain our position
OUR AMBITION IS TO MAINTAIN OUR POSITION AS INDIA’S LEADING WOOD PANEL COMPANY. Raw material Focus on new linkages market segment « Raw material availability & cost - crucial ¢ Now focusing on untapped market for long term sustainability of business. segments in smaller cities Evaluating linkage opp
Slide 40: Entry in MDF and new age products
Entry in MDF Exploring new age business products # Decision taken to set up MDF #% Entering into futuristic categories such manufacturing facility in Punjab as PVC sheets, Fibre Cement Board and flooring & Overall capex estimated at Rs. 444 Crores (380 Crores MDF, 64 Crores Plywood) *s To become ful
Slide 41: Our CSR Initiatives
OUR CSR INITIATIVES
Slide 42: CSR initiatives
oe oo 8 & Supporting 30,000 students every year through Friends of Tribal Society CenturyPly Heroes program is an initiative to bring a smile to the faces of our most important patrons — the carpenters Programme ‘Bandhan’, through which Century Laminates has provided carpenters a better gratificatio
Slide 43: Financial Appendices
FINANCIAL APPENDICES
Slide 44: Balance Sheet
BALANCE SHEET Rs. Crores PARTICULARS 2015 2016 Jun'2016 Sep'2016 Audited Audited Unaudited Unaudited Net Worth (Including Share Capital -22.25 Cr) 291.41 387.58 528.88 567.63 616.92 Long Term Debt 117.98 81.42 64.07 97.24 139.80 Short Term Debt (Bank CC+Related party loan) 113.98 220.59 159.05 158.3
Slide 45: Key Ratios
KEY RATIOS Key Ratios 2013-14 2014-15 2015-16 Q1 16-17 Q2 16-17 (Annualized) (Annualized) Return on Avg Equity (ROE) (%) 24.74% 44.42% 36.68% 31.41% 33.29% Return on Avg Capital Employed (ROCE) (%) 16.59% 26.68% 26.09% 23.99% 23.74% ROACE - (Excluding MDF & PB Projects)(%) 16.59% 26.68% 27.40% 26.71
Slide 46: Working Capital Cycle
WORKING CAPITAL CYCLE Ratios 2013-14 2014-15 2015-16 Q1 16-17 Q2 16-17 (Annualized) (Annualized) Net Sales 1,283.97 1,564.81 1,658.46 405.75 462.71 Debtor 204.63 268.14 289.78 285.21 310.93 Debtor Days (A) 58 63 64 64 61 Net Sales 1,283.97 1,564.81 1,658.46 405.75 462.71 Raw Material Inventory 218.8
Slide 47: Profit & Loss - Summary
PROFIT & LOSS - SUMMARY PARTICULARS Annual Growth% Growth% Quarter Growth% Growth % Half Year Growth % 2013-14 2014-15 2015-16 14Vs 15 15 Vs 16 Jun '16 Sep QoQ YoY Sep'l6 Sep'15 H1toH1 Al Net Turnover In Rs Cr 1,276.04 1,552.47 1,646.86 21.7% 6.1% 403.62 435.51 459.26 13.8% 5.5% 862.88 802.11 76% A3
Slide 48: Plywood - Volume Details
PLYWOOD — VOLUME DETAILS PARTICULARS Annual Growth% Growth % Qu Growth% Growth % Half Year Growth % 2013-14 2014- 2015-16 14Vs 15 15 Vs 16 Jun'16 Sep'15 QoQ YoY Sep'16 Sep'l5 H1toH1 A VOLUME A2_ -Deco Ply CBM 5,379 6,217 8,722 15.6% 40.3% 2,079 2,326 2,314 11.3% 0.5% 4,393 4,342 1.2% Total 2,21,354
Slide 49: Plywood - Financial Details
PLYWOOD — FINANCIAL DETAILS SL PARTICULARS Annual Growth% Growth % Qu Growth% Growth % Half Year Growth % 2013-14 201 -16 14Vs 15 15 Vs 16 Jun'16 Sep QoQ YoY Sep'16 Sep H1toH1 Al Net Turnover In Rs Cr 964.84 1,147.08 1,173.51 18.9% 2.3% 286.55 319.91 325.06 13.4% 1.6% 611.61 577.54 5.9% /indas Adjus
Slide 50: Laminates - Volume Details
LAMINATES - VOLUME DETAILS SL PARTICULARS Annual Growth% Growth% Quart Growth% Growth % Half Year Growth % 2013-14 2014-15 2015-16 14Vs 15 Vs 16 Sep'15 Sep '16 QoQ YoY Sep'l6 Se H1toH1 A VOLUME isi seminaries CGE BGA ARSED AOE ET) OUT CSB EGS STE AS IT OE A2_ - Laminates - Export NOs. 8,66,369 10,44
Slide 51: Laminates - Financial Details
LAMINATES - FINANCIAL DETAILS S| Particulars Annual Growth% Growth % Quart Growth% Growth % Growth % 2013-14 2014-15 2015-16 14Vs 15 Vs 16 Sep'15 Sep '16 QoQ H1ToH1 Al Net Turnover In Rs Cr 236.69 293.54 335.30 24.0% 14.2% 79.49 88.48 97.91 23.2% 10.7% 177.40 165.66 7.1% /indas Adjustment In Rs Cr 5
Slide 52: MDF - Volume Details
MDF - VOLUME DETAILS Annual Growth% Growth % Growth% Growth % Half Year Growth % 2013-14 201 14Vs 15 15 Vs 16 Jun'16 Qoq Yoy Sep'16 Sep'15 H1ToH1 A VOLUME B NET SALES VALUE C AVERAGE
Slide 53: MDF - Financial Details
MDF - FINANCIAL DETAILS SI Particulars Annual Growth% Growth % Quarter Growth% Growth % Half Year Growth % 2013-14 2014-15 2015-16 14Vs 15 15 Vs 16 Jun'16 Sep'15 Sep '16 QoQ YoY Sep'16 Sep'15 H1ToH1 Al Net Turnover In Rs Cr = = = 0.0% 0.0% = = = 0.0% 0.0% 2.59 > i A3__ Total Income In Rs Cr S 2 2 0.
Slide 54: Particle Board - Volume Details
PARTICLE BOARD - VOLUME DETAILS SI Particulars Annual Growth% Growth % Quarter Growth% Growth % Half Year Growth % 2013-14 2014-15 2015-16 14Vs 15 15 Vs 16 Jun'16 Sep'15 Sep'16 QoQ YoY Sep'16 Sep'15 H1ToH1 A VOLUME BNET SALES VALUE C AVERAGE
Slide 55: CFS (Logistics) - Volume Details
CFS (LOGISTICS) - VOLUME DETAILS Annual Growth% Growth% Qu Growth% Growth % Half Year Gro lo 2013-14 201 -16 14Vs 15 15 Vs 16 Jun'16 Sep QoQ YoY Sep'16 Sep H1ToH1 b Net Sales Value c Average
Slide 56: CFS (Logistics) - Financial Details
CFS (LOGISTICS) - FINANCIAL DETAILS Annual Growth% Growth% Qu Growth% Growth % Half Year Gro lo 2013-14 201 -16 14Vs 15 15 Vs 16 Jun '16 Sep H1ToH1 Al Net Turnover In Rs Cr 54.31 70.28 83.73 29.4% 19.1% 23.26 19.63 21.08 -9.4% 7A% 44.34 36.82 A3 Total Income In Rs Cr 55.05 71.35 84.90 29.6% 19.0% 23
Slide 57: Others - Financial Details
OTHERS - FINANCIAL DETAILS SI Particulars Annual Growth% Growth% Quart Growth% Growth % Half Year Growth % 2013-14 2014-15 2015-16 14Vs 15 Vs 16 Sep'15 Sep '16 QoQ YoY Sep'l6 Se H1ToH1 Al Net Turnover In Rs Cr 20.20 41.57 54.32 105.8% 30.7% 14.32 11.03 10.60 -26.0% -3.9% 24.92 27.02 é A3__ Total Inc
Slide 58: Capex Details
CAPEX DETAILS Particulars Budgeted 2015-16 APR’16 TO Estimated OCT 16 Estimated FY Estimated FY Cost SEP '16 -MAR 17 17-18 18-19 MDF 380.00 38.25 120.01 171.74 50.00 = 380.00 Plywood at Punjab 64.00 - - 20.00 4.00 40.00 64.00 Particle Board 66.48 51.18 15.30 2 2 = 66.48 Laminates 45.00 - - - 45.00 -
Slide 59: Term Loan Projection
TERM LOAN PROJECTION Particulars H1-16-17 H2-16-17 2017-18 2018-19 2019-20 Rs. Crores 2021-22 OPENING - ECB - Buyer's Credit (MDF Capex) - Rupee Term Loan Total ADDIDTIONS - ECB - Buyer's Credit (MDF Capex) - Rupee Term Loan Total REPAYMENTS - ECB - Buyer's Credit (MDF Capex) - Rupee Term Loan Total
Slide 60: Fund Flow Summary
FUND FLOW SUMMARY Opening Cash/cash Equialent Add Operational Cash Inflow Less Dividend Payments Less Long Term Cash Outlow Closing Cash/cash Equialent Operational Cash Flow Inflows cash Profit (Pat + Depreciation) Increase Of Short Term Borrowings Increase Of Buyers Credit Increase In Loan From Rel
Slide 61: Fund Flow - Continued
FUND FLOW-CONTINUED LONG TERM CASH FLOW INFLOWS Long Term Borrowings - Rupee Term Loan & Finance Lease - Foreign Currency Loan - Buyers Credit Increase in Non Current Liabilities Decrease in MAT Credit Decrease in Long Term Loans & Advances OUTFLOWS Repayment of Long Term Borrowings - Rupee Term Loa
Slide 62: Forex Exposure
FOREX EXPOSURE Particulars 31.03.14 31.03.15 31.03.16 30.06.16 30.09.16 30th June Vs 31st March 2015 Vs 2016 Diff Diff % i Diff % Average Forex Booking Rates @ Rs. - Usd 57.83 61.79 64.17 66.92 67.32 0.40 0.6% 2.38 4% - Hkd 8.04 = = = = = = = = - Euro 80.00 7749 71.99 75.74 76.05 0.31 0% (5.50) 7% F
Slide 63: Let's Talk
LET’S TALK
Century Plyboards (India) — Investor Presentation (November 2016) on 6ix