Asian Granito India Limited · NSE:ASIANTILES
Asian Granito India — Investor Presentation (October 2020)
50 slides from Asian Granito India's investor presentation, Oct 5, 2020
Slide 1: Investor Presentation cover letter to stock exchanges
Asian uranrco mara LW. Regd. & Corp. Office: 202, Dev Arc, Opp. Iskcon Temple, S. G. Highway, Ahrnedabad-380015. Gujarat, India. Tel.: +91 79 66125500/698, Fax.: +91 79 66125600/66058672 ······ cP>Beautffi,tl L[f'e ,q, ..... · info@aglasiangranito.corn • www.aglasiangranito.corn CIN: L 1711 OGJl 995
Slide 2: Post COVID-19 Inorganic Growth
II OAGl T I L E a ••mDIH'""" -&mtl/jlll Life - I POST COVID-19 Inorganic Growth - M&A, Joint Ventures, Strategic Alliances Or Minority Investments Until the World comes to an end, Every Crisis situation is an ideal Investment opportunity
Slide 3: Asian Granito India Limited
Asian Granito Indi iT — www.aglasiangranito.com
Slide 4: Table of Contents
TABLE OF CONTENTS I COVID-19 IMPACT Page No:4 1 INORGANIC GROWTH - REINVENT THE WHEEL Page No:5 I VISION STATEMENT - 2025 Page No:8 1 I CHANGING WORLD DYNAMICS Page No:10 I OVERVIEW-TILES, QUARTZ SLABS AND BATHWARE Page No:12 I AGL PLANT LOCATIONS Page No:15 1 WORLD CERAMIC MARKET AND LEADERS Page N
Slide 5: How Has COVID-19 Impacted Indian Ceramic Industry
II HOW HAS COVID-19 IMPACTED INDIAN CERAMIC INDUSTRY OAGl T I L E a Pro Active steps taken by Asian Granito India Limited in Industry in crisis situation regarding various aspects like response to COVID-19 o Complete lockdown ... no movement of labour, raw material or finished o As per the Govt. dir
Slide 6: Game Changer - Reinvent the Wheel
II GAME CHANGER- REINVENT THE WHEEL OAGl T I L E a o Morbi - cluster of more than 900 ceramic units almost o USA - Department of Commerce has imposed anti- o AGL Strategy came to a virtual halt. dumping and countervailing duties on China between t he range of 350-700 percent on Tiles and Quartz Slab
Slide 7: COVID-19 - Fortunes Are Made During Times of Crisis
II COVID-19 - FORTUNES ARE MADE DURING TIMES OF CRISIS LIFESTYLES ARE CHANGING AND SO ARE BUSINESS OPERATIONS OAGl T I L E a COVID-19 has literally changed the dynamics of doing business world-wide. In a jiffy (less than 6 months), we have more than 200 Multinational Corporations in USA declaring ba
Slide 8: COVID-19 - Fortunes Are Made During Times of Crisis
II COVID-19 - FORTUNES ARE MADE DURING TIMES OF CRISIS LIFESTYLES ARE CHANGING AND SO ARE BUSINESS OPERATIONS OAGl T I L E a 4. Today, it takes almost Rs. 80-100 Crores and 15-20 months to set-up a Tiles factory in Morbi (if power/gas is allocated on time and land identified) which has production ca
Slide 9: AGL - Vision 2025
II AGL- VISION 2025 OAGl T I L E a Time is a true healer. Today COVID-19 has destroyed the World Economy. As witnessed in the past, unless the World is going to end tomorrow - the current time is the l:J:J.iltime for investment. Human Beings have weathered life threatening diseases like SAARS, MARS,
Slide 10: Inorganic Growth
II INORGANIC GROWTH OAGl T I L E a Reliance Industries Limited for Rs. 27,513 Crores - Future Group WILLIS TOWERS Clix Group - Laxmi Vilas Bank (LVB) WATSON Infosys for USD 42 Million - Kaleidoscope Innovation - USA Product Design firm Matherson aims to grow from USD 8 billion to USD 36 billion by y
Slide 11: Changing World Dynamics
II "CHANGING WORLD DYNAMICS" OAGl T I L E a , t:\tttCimMfi rm Im i: II -&mtl/jlll Life - I CALIFORNIA BANS PIPELINE FIRMS FORD TO BUILD ELECTRIC A TEXAS TYCOON THROWS SALE OF NEW GAS SQEEZED BY CARS IN CANADA MILLIONS INTO COVID TESTING CARS BY 2035 SHALE-OIL CUTBACKS Ford to Build Electric Cars in
Slide 12: Problems and Solutions Available
II PROBLEMS AND SOLUTIONS AVAILABLE OAGlT I L E a ® COVID -19 PROBLEMS -r;/- ' t ,, And SOLUTIONS available Government of India has taken several steps to boost the economy for eg Indian Economy will take time to recover. like RBI providing adequate liquidity in the system, fiscal measures, economic
Slide 13: AGL - Industry Dynamics - India
II AGL- INDUSTRY DYNAMICS - INDIA OAGl T I L E a (Rs. In Crores) Tiles Market Quartz Slabs Market Rs. 35,000 Rs. 1,000 I Organised Unorganised I Organised I Unorganised ./'\ Rs. 15,000 Rs. 20,000 Rs.800 Rs. 200 • • • • • I Listed Majors Unlisted Listed Majors Unlisted Baba Quartz & Morbi Morbi & Oth
Slide 14: Market Share of AGL and Others in Tiles & Quartz Slabs
II MARKET SHARE OF AGL AND OTHERS IN TILES & QUARTZ SLABS BUSINESS OAGl T I L E a Tiles Market Share Percentage Tiles Organised Market Share Percentage Tiles Listed Majors Market Share Percentage Nitco _ __ Orient Bell 6% 6% Quartz Slabs Market Share Percentage Quartz Slabs Organised Market Share Pe
Slide 15: AGL - Bathware Industry Dynamics - India
II AGL - BATHWARE INDUSTRY DYNAMICS - INDIA (SANITARYWARE & C.P. FITTINGS) OAGl T I L E a (Rs. In Crores) Bathware Market Share Percentage Rs. 5,000 + Rs. 9,000 Industry (Sanitaryware + C.P. Fittings) I Organised Unorganised Organised 54% -- Unorganised 46% Rs. 7,500 Rs. 6,500 • • • I Bathware Organ
Slide 16: AGL India - Gujarat Office & Plant Locations
II AGL INDIA- GUJARAT OFFICE & PLANT LOCATIONS OAGl r•mnlH I...I T I L E a p I• - &mtl/jlll Life - Himmatnagar Plant - 1 (Wall) Himmatnagar Plant - 2 (Vitirified) Himmatnagar Plant - 3 Ahmedabad Head Office L:::t,. Morbi Number of Plants- 2 O Dholka Number of Plants -1 Gas Price - Rs. 33/SCM Gas Pri
Slide 17: Global Presence - Exports
II GLOBAL PRESENCE - EXPORTS OAGl T I L E a GLOBAL FOOTPRINTS ACROSS -100 COUNTRIES -~ .·-:S .. -- " Investor Presentation - - IIDDII
Slide 18: World Ceramic Market
II WORLD CERAMIC MARKET OAGl T I L E a Top 10 Manufacturing Countries (""Million Sq. Mtrs.) Top 10 Importing Countries (""Million Sq. Mtrs.) Iran (383 Turkey (335 Thailand (57 MSM), 4% Egypt(300 Israel (61 MSM), 3% MSM), 6% MSM), 3% MSM), 6% USA (209 Indonesia MSM), 20% (383 MSM) South Korea 4% (77
Slide 19: World's Largest Ceramic Companies - Sales in Million Euro
II WORLD'S LARGEST CERAMIC COMPANIES - SALES IN MILLION EURO OAGl T I L E a STN Group (Spain) (Capacity Figures are in -Million Sq. Kajaria Ceramics (India) Mtrs./ Million Euro) 65 MSM), 273 Mn. Asian Granito India Limited (Capacity 66 MSM), 343 Mn. (India) (Capacity 31 MSM), Grupo Fragnani (Brazil)
Slide 20: USA Markets - Ceramic Tiles and Quartz Slabs
II USA MARKETS - CERAMIC TILES AND QUARTZ SLABS OAGl T I L E a Total USA Ceramic Tiles Market Total USA Quartz Slabs Market Turkey Brazil The Department of 1% Commerce (USA} has Vietnam The Department of imposed anti-dumping 4% Commerce (USA} has duties and countervailing imposed anti-dumping duties
Slide 21: AGL - Product Portfolio
II AGL- PRODUCT PORTFOLIO OAGl T I L E a _ _Glaze Vitrified Tiles J Double Charged _J Polished Vitrified Tiles ...___ ceramic Tiles ~ TILES J Investor Presentation 11aa11
Slide 22: AGL - Manufacturing Capacities
II AGL- MANUFACTURING CAPACITIES OAGl T I L E a Ceramic Wall 4.95 15-18% Ceramic Floor 4.46 15-18% Glaze Vitrified Tiles 4.95 <0.08% AGL Composite Marble 0.73 Near to zero Advantages Polish Vitrified Tiles 2.97 <0.08% Double Charge 3.96 <0.05% Parking Tiles 1.98 <0.5% Outsourcing 5.94 Arrangement Qu
Slide 23: AGL Today
II AGL TODAY OAGl T I L E a I ,, - - - - .... ' 'I I I ' \ I INCORPORATING 1 I I DIGITISATION / I I I PEOPLE & I AND I CULTURE I ' • DEBT TECHNOLOGY \ . I \ . - ... -- - , " ... - - - I , , / .... • DILUTION OF EQUITY ' ' ~ _. DR~~~~~~~R \ • STOCK SWAPS ; LEADERSHIP 'i I \ ROLE ' ) I ( Ranked amongs
Slide 24: AGL - Consolidated Exports as Percentage of Sales
II AGL- CONSOLIDATED EXPORTS AS PERCENTAGE OF SALES OAGl T I L E a Rs. In Crores EXPORTS AS PERCENTAGE OF SALES - LAST 3 YEARS • Exports Total Sales • %of Sales o Exports as a percentage of Sales has been consist ently improving ove r the la st 3 years 19.6% in Tiles and Quartz Slabs. 13.1% 8.0% o F
Slide 25: Enhancing Stakeholders Value - Swastik
II ENCHANCING STAKEHOLDERS VALUE - SWASTIK OAGl T I L E a 1. Future growth through .~ .. ~ 9. Improving all maj or financial and •• • I Inorganic means Effective . liquidity rati o Leadership . . . . .. . 10. Partnering strategic JV w ith world 2. Refinancing/ Realigning of m aj ors the Loans 11. De
Slide 26: AGL - Significant Shareholder Value Creation
II AGL - SIGNIFICANT SHAREHOLDER VALUE CREATION OAGl T I L E a ... iiffiiiliiiii( . . . :i@i,l·IIMM 136% w iitMiihii:i'IMMH_,fohM,i·Ml#•H•( ______ _ I I 18% 13% I I 81% I 5% I 57% I 1% 2% I 37% CERA.EQ-NSE I 0% 14% II NIFTY 50 KAJARIACER .EQ-NSE NIFTY SMALLCAP 250 INDEX EQ-NSE 1 I SOMANYCERA. AS1ANT
Slide 27: AGL - Consolidated Financial Overview
II AGL - CONSOLIDATED FINANCIAL OVERVIEW OAGl T I L E a Net Revenue (Rs. in Crores) Net Worth (Rs. in Crores) 517.4 1,171.4 1,186.7 1,224.5 435.1 451.1 1,136.8 423.4 993.9 375.6 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 EBITDA & EBITDA Margin (%} PAT & PAT Margin (%} 12 4
Slide 28: AGL - Consolidated Financial Overview
II AGL - CONSOLIDATED FINANCIAL OVERVIEW OAGlT I L E a 17.5 0.83 0.77 0.74 0.74 15.0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 - BVPS in Rs. --<r EPS in Rs. - Total Debt (Rs. In Crores) -0-Debt to Equity Ratio 1.46 12.1 1.34 11.29 FY2016 FY2017 FY2018 FY2019 FY2020 m FY20
Slide 29: AGL - Trend Setter with Many Industry Firsts
II AGL-TREND SETTER WITH MANY INDUSTRY 'FIRST' OAGl T I L E a INNOVATION IS THE KEY FOR FUTURE GROWTH FIRST TO INTRODUCE 450X450 OUTDOOR TILE WITH 12MM THICKNESS Investor Presentation - - IIDDII
Slide 30: AGL - Growth Drivers
II AGL- GROWTH DRIVERS OAGl T I L E a Improve return ratios - RoCE and Build brand as a Strong Asset which Focus on value generation and Export Vertical to be scaled up with RoE by focusing on volume and consumers recall leading to sustain High-end products USA imposing duties on China price growth
Slide 31: Strategies to Improve Return Ratios and Cash Flow
II AGL- STRATEGIES TO IMPROVE RETURN RATIOS AND CASH FLOW OAGl T I L E a CASH FLOW CONCERNS HIGH WORKING CAPITAL REQUIREMENT o Working towards premium dealers network 0 We have 61% institutional, 14% exports and 25% retails o Better realization of sales value 0 We have average working capital cycle
Slide 32: Yearly Growth in Sales and Profit FY2019 vs FY2020
II YEARLY GROWTH IN SALES AND PROFIT FOR FY2019 VS FY2020 (In %) OAGl T I L E a Sales Profit Kajaria CERA *HSIL Somany AGL Kajaria CERA *HSIL Somany AGL #521.0% #15.8% -5.0% -6.1% 12.3% -9.5% -2.0% -70.0% L - - - - - - * Standalone basis • Kajaria • Cera • HSIL • Somany • AGIL ti figures post scheme
Slide 33: Peer Comparison Yearly Sales and Profit
II PEER COMPARISON YEARLY SALES AND PROFIT (Rs. In Crores) OAGl T I L E a Sales Kajaria I *HSIL I Somany CERA AGL 2,288 # 1,605 ~ 859 1,198 • Mar 15-16 • Mar 16-17 • Mar 17-18 • Mar 18-19 • Mar 19-20 Profit Kajaria *HSIL I Somany CERA AGL 114 116 103 102 112 99 101 *83 45 53 42 * Standalone basis ti
Slide 34: Peer Comparison Yearly Sales and Profit Growth
II PEER COMPARISON YEARLY SALES AND PROFIT GROWTH Y-o-Y (In%) OAGlT I L E a Sales *HSIL I CERA I Kajaria Somany AGL *13.6% I - - - - - - - - - - - -I 6.5% 15.8% I 17.5% 14.4% l 12.0% I I 3 .0% 3.2% I I 1.3% I I I L-----------_. I -2.5% -5.0% ~ 8% \ -9.5% -8.3% -6.1% -29.9% • Mar-16 • Mar-17 • Mar-18
Slide 35: Peer Comparison Quarterly Sales - COVID-19 Impact
II PEER COMPARISON QUARTERLY SALES - COVID-19 IMPACT SINCE MARCH 2020 OAGl T I L E a (Rs. In Crores) Sales Kajaria *HSIL Somany CERA AGL F.V. Rs.1 F.V. Rs.2 F.V. Rs.2 F.V. Rs.5 F.V. Rs.10 700 715 741 652 #470 #489 ...I ---------- I 278 #252 I 312 356 .: .. I I • Jun-19 • Sep-19 • Dec-19 • Mar-20 • J
Slide 36: Peer Comparison Quarterly Profit - COVID-19 Impact
II PEER COMPARISON QUARTERLY PROFIT - COVID-19 IMPACT SINCE MARCH 2020 OAGlT I L E a (Rs. In Crores) Profit Kajaria *HSIL Somany CERA AGL F.V. Rs.1 F.V. Rs.2 F.V. Rs.2 F.V. Rs.5 F.V. Rs.10 92 ...I ---------- 37 I 29 28 -27 #14 #15 #16 #-18 7 6 10 ':'Ill -22 0 ·----==1; I I I 11 13 -8 IL _________ _
Slide 37: Bathware Business Sales Growth Comparison FY2019 vs FY2020
II BATHWARE BUSINESS SALES GROWTH COMPARISON FY2019 vs FY2020 (In%) OAGl T I L E a I *HSIL# I Kajaria I I Somany I I AGL 100.0% 13.2% * Standalone basis #. figures post scheme -8.8% - -5.9% -9.6% L------- Investor Presentation - - IIDDII
Slide 38: Consolidated Results Summary - Q1 FY2021
II AGL - CONSOLIDATED RESULTS SUMMARY - Ql FY2021 - COVID-19 IMPACT FOR THE QUARTER OAGlT I L E a Revenues (Rs. in Crores) EBITDA (Rs. in Crores) PAT (Rs. in Crores) 312.0 34.3 11.2 129.4 - 3.8 Q1FY20 Q1FY20 Q1FY21 -7.5 Q1FY20 Q1FY21 Segmental Revenues {Rs. in Crores) Tiles Composite Marble Quartz S
Slide 39: AGL - FY2020
II AGL - FY2020 OAGl T I L E a Revenues (Rs. in Crores) EBITDA (Rs. in Crores) PAT (Rs. in Crores) 117.7 42.0 86.5 ~ .. (\~-~ 20.6 ~ FV19 FV20 FV19 FV20 FV19 FV20 Segmental Revenues (Rs. in Crores) Tiles Composite Marble Quartz Slab Power Grace Bathware Division Others FV2019 936.5 78.9 127.1 13.8 -
Slide 40: Profit & Loss for Q1 FY2021 & FY2020
II AGL- PROFIT & LOSS FOR Ql- FY2021 & FY2020 OAGl T I L E a Particulars (Rs. In Crores) FY2020 FY2019 Y-o-Y % Revenue from Operations 1,224.5 1,186.7 3.2% Total Income from 312.0 129.4 -58.5% 252.0 111.8 -55.6% Operations Total Raw Material 734.9 664.2 10.6% COGS 186.1 91.5 -50.8% 171.5 85.2 -50.3%
Slide 41: Consolidated Performance by Volume and Value
II AGL - CONSOLIDATED PERFORMANCE BY VOLUME AND VALUE (In%) OAGl T I L E a FY2019 vs FY2020 VOLUME FY2019 vs FY2020 VALUE 2 2 1 2 1 2 1 11 1 40 7 15 46 7 34 39 27 25 21 17 30 25 25 19 ~ ~ - FV2019 FV2020 FV2019 FV2020 a AGL Associate a Trading • Composite Marble • Quartz Slabs • AGL Associate • Trad
Slide 42: Consolidated Segmental Revenues & Breakup of Tiles
II AGL - CONSOLIDATED SEGMENTAL REVENUES & BREAKUP OF TILES (In%) OAGl T I L E a FV2019 vs FV2020 SEGMENTAL REVENUES Ql - FV2020 vs Ql - FV2021 SEGMENTAL REVENUES 3 1 1 2 1 1 11 15 1 20 s -' L_!_ 4 -7 -7 -7 80 87 75 71 FY2019 FY2020 Ql- FY2020 Ql- FY2021* • Tiles Composite Marble • Quartz Slabs • Po
Slide 43: Gas Prices & Average Realisation of Tiles
II AGL - GAS PRICES & AVERAGE REALISATION OF TILES OAGl T I L E a Gas Prices at Himmatnagar Plant Average Price Realisation for Tiles in Rs. (Average Per SCM} (Per Sq. Mtrs.) 45 43 41 41 341 39 37 35 33 31 29 30 27 25 FY16 FY17 FY18 FY19 FY20 Fuel Cost Power Cost FY2018 - Rs. 91 Crores FY2018 - Rs.
Slide 44: Marquee Clientele
II MARQUEE CLIENTELE OAGl T I L E a Architect Hafeez spykare SA L HO S P I T A L Contractor lTC Limited ~ alt hc.Yc with H umon To uch NEXA Slt< l l'l'l.i{S Sl <l l' Raymonh G TATAHOUSING ~ ShapoorJI Pallonjl ~ LODHA Q Bandhan Bank ~ II adani~ R 1·anc THE LEELA airtel ~ 1 ndu l rtc LlrnitC"d Clr1no1
Slide 45: Government Projects
II GOVERNMENT PROJECTS OAGl T I L E a I {?ol <41 ~fl ~fl INBCC t:PWD • ~ (EIL) ~ ~ qHQ 'i11 1;nfuifi{O I AIRPORTS AUTHORITY OF !NOIA tacnfa:f;lm.mttq;1~ ~JCJ...~ AH M EDAEAD ~~m~wr~ @ Deihl ;llelro RaU Corporalion Llmlled WAPCOS Investor Presentation 11 a a 11
Slide 46: Change in Business Strategy from B2B to B2C
II CHANGE IN BUSINESS STRATEGY FROM B2B TO B2C OAGlT I L E a @ @ @ FY2012 FY2020 ------------- ------------- ----------------------- ------------- ------------- ------------- Institutional (Malls, Commercials Space, Real Estate Developers, Private Airports, Multiplex, Hotels, Clubs) • Retail (Indivi
Slide 47: Certifications & Awards
II CERTIFICATIONS & AWARDS OAGl T I L E a ~ GUJARAT w .• BRAND u,..,. . ....~- CE RTIFI C AT F L~!?!:!~IP ·-::::.::::::."' Aalan Gnm fto India Lid µ ,,i,.,,... _,........ .. I MIIN" l'l'tiP•.,..,) .... ,__ .,__, __ 1,,_ •.,_,,,.,_,._,(,111 1 ••1>w•·••• .. 10 11 • ~ • - ~ - MIIUOT . . UTI • ... .....
Slide 48: Corporate Structure and Shareholding
II AGL- CORPORATE STRUCTURE AND SHAREHOLDING OAGl T I L E a Top Shareholders as on 30th June, 2020 ASIAN GRANITO INDIA LIMITED Sundaram Mutual Fund A/c Sundaram Small Cap Fund 3.21% ASSOCIATE CO. -ASTRON PAPER & BOARD MILL LIMITED (18.87%) Sundaram Alternative Opportunities Fund - Nano Cap Series I
Slide 49: AGL - Milestones
II AGL - MILESTONES OAGl T I L E a Launched Range 'RAI NBOW GLITZ' Amalgamation & ECO BLANCO; of Artisique Ceramic Pvt Opened 18,000 2020 Sq. Ft. Showroom Ltd with Asian Granito Ltd in Ahmedabad 2019 Introduced Launched Commenced 6-colour (AGL). 2018 Sanitaryware production of composite marble slabs
Slide 50: Thank You
l www.eicch911. 0nnect.in Th • nk You • [ Ccinnect
Asian Granito India — Investor Presentation (October 2020) on 6ix