Greenply Industries Ltd · NSE:GREENPLY
Greenply Industries — Q1 FY2013 Earnings Presentation
54 slides from Greenply Industries's earnings presentation, Jul 25, 2012
Slide 1: Analyst Meet Presentation Q1 FY2013 & FY2012 Results
Analyst Meet Presentation Q1 FY 2013 & FY 2012 RESULTS 25th July, 2012
Slide 2: Safe Harbor
Safe Harbor This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views being expr
Slide 3: Presentation Structure
Presentation Structure • Environment & Growth Drivers • Industry Overview • Greenply at a glance • Numbers Speak: – Segmental Review – Capacity Review – Financials – Our Green Credentials – Initiatives – Investment Highlights
Slide 4: Environment
Environment Global Environment – Crisis in Eurozone, US economy still not out of the woods, – Political crisis in the Middle East, – Downtrend expectations in China, – Upward movement in Crude prices and high commodity prices. Downtrend in Indian Economy – GDP growth at 6.9% for FY 2012 Vs 8.5% for
Slide 5: Growth Drivers
Growth Drivers • Per Capital income estimated to have risen 14.3% to Rs 60972 in 2011-2012 • Private Consumption expenditure is expected to scale up from USD 790 billion in 2010 to USD 3.6 trillion by 2020.
Slide 6: Growth Drivers
Growth Drivers Young Population India has a young population with average age of 24 years, leading to higher disposable incomes in the hands of those with aspirations for a better lifestyle and stylish interiors.
Slide 7: Growth Drivers
Growth Drivers Rising Urbanisation • 40% of population (currently 37%) will live in urban areas by 2030 • Real estate sector is expected to grow to USD 180 billion by 2020 • Tier II & III cities and towns to witness Realty boom
Slide 8: Growth Drivers
Growth Drivers HNI Segment slated to rise from Rs 45 trillion in 2010-11 to 235 trillion by 2015-16
Slide 9: Real Estate Growth Drivers
Real Estate Growth Drivers Tourist arrivals in India is Office space supply in top expected to increase to India will require 1.8 million seven Indian cities is 11.1 million in 2021 from beds by 2025 to reach its expected to reach 243.5 6.29 million in 2011 leading targeted ratio of 2 beds per milli
Slide 10: Industry Overview
«(a Industry Overview
Slide 11: Industry at a glance
Industry at a glance Rs. in Crores Industry Size: Rs. 20000 Cr 3500 4000 6-8 12500 % Plywood Laminate MDF & particle Board
Slide 12: Organized vs. Unorganized share
Organized vs. Unorganized share Rs. in Crores 8000 9750 7000 6000 5000 4000 0 1500 3000 2000 3500 2750 2500 1000 0 Plywood Laminate MDF & Particle board Organised Unorganised
Slide 13: Industry Growth over Greenply Growth
Industry Growth over Greenply Growth • Industry has grown at 6-8% over the five years from FY 2008 to FY 2012 • Clear preference shift for branded products in the market that has led to a decline in market share of the unorganized sector • Organised players have grown at 15-20% over the same period.
Slide 14: Greenply at a glance
«(a Greenply at a glance
Slide 15: About Greenply
About Greenply • With a consolidated turnover of Rs.1706cr. ($335.41 million) in FY 2012, we are the largest company in the interior infrastructure space. • We are the only integrated manufacturer in the industry catering to all the product segments of interior infrastructure industry. • 7 State–of-
Slide 16: Our Market Ownership
Our Market Ownership 36% of India’s organised Plywood market 26% of India’s organised laminates market 22% of India’s MDF market
Slide 17: About Greenply (Contd.)
About Greenply (Contd.) • With a presence in across 19 Indian states, with over 40 Domestic offices, presence in more than 70 countries and over 4500 employees Greenply offers the largest range of products through widest network of 13000+ retail outlets. • Greenply Industries is the undisputed Marke
Slide 18: Our Capacities
Our Capacities Plywood : 28.35 million sq meters Tizit: 4.50 mn. Sqm Kriparampur: 6.00 mn. Sqm Pantnagar: 10.50 mn. Sqm Bamanbore: 7.35 mn. Sqm (currently under expansion – post expansion capacity will increase by 4.05 mn. Sqm) Laminate : 10.02 million sheets Behror: 5.34mn sheets Nalagarh 4.68mn sh
Slide 19: Largest Brand & Product Basket
Largest Brand & Product Basket catering to all segments of the market
Slide 20: Flagship Brands
GREENLA \M ; LAMINATES GREEN Green \ PANELMAX’ DECOWOOD MDF BOARD Decorative Veneers
Slide 21: Largest laminate company in Asia
Today, Greenply has become the Largest laminate company in Asia
Slide 22: 5th largest Globally
Ta GE l & 5'" largest Globally _ Ft ( ltw®LCULULU
Slide 23: Today..
Today.. • Entry into higher margin MDF Business and Greenfield expansion in Laminates with new products, sizes and dimensions have enabled access to the US and European markets.
Slide 24: Segmental Review
Segmental Review
Slide 25: Plywood & Allied Products
Plywood & Allied Products Rs. in Crores Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Net Sales 202.71 178.45 13.59 815.58 674.25 20.96 EBIDTA Margin (%) 9.79 13.29 (350 bps) 9.82 13.02 (320 bps) Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Annual Capacity (mn.sq.m.) 28.35 28.35 28.
Slide 26: Plywood & Allied Products (FY Highlights)
Plywood & Allied Products (FY 12 HIGHLIGHTS) • Increased production by 8.22% to 32.14 million sq meters. • Grew 20.96% in value terms to Rs 815.58 crores in FY 2012 • Achieved overall capacity utilization of 113% in FY 2012 on enhanced capacity of 28.35 mn square meters. • Added Green Compressed Ply
Slide 27: Laminates
Laminates Rs. in Crores Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Net Sales Laminates 135.73 108.04 25.63 488.90 411.17 18.91 Net Sales Decorative Veneers 17.97 19.69 (8.74) 94.07 85.01 10.66 EBIDTA Margin (%) 13.05 9.13 392 bps 11.27 9.54 173 bps Particulars Q1FY13 Q1FY12 % Change FY12
Slide 28: Laminates – International Subsidiaries
Laminates – International Subsidiaries Rs. in Crores % Particulars FY12 FY11 Change Net Sales Laminates 64.15 42.58 50.66 EBIDTA 5.14 0.33 1457.58 EBIDTA Margin (%) 8.02 0.77 725 bps PAT 3.53 (1.65) PAT (%) 5.51 (3.89) 940 bps
Slide 29: Laminates Segment (FY 2012 Highlights)
Laminates Segment (FY 2012 Highlights) • Grew 17.49% in value terms and 3.43% in volume terms. • Increased production to 9.92 mn sheets in FY 2012 from 9.37 mn sheets in FY 2011; achieved capacity utilisation of 99%. • Average Realisation of Laminates increased by 16.25% to Rs 558 per sheet to Rs 48
Slide 30: Laminate Plant at HP.
Laminate Plant at HP. • The plant is situated in a tax-efficient location. • The plant manufactures compact laminates in thickness ranging from 4 mm to 25 mm & in dimensions up to 6’ x12’ and laminates in different dimensions such as 5’X12’, 4.25’x10’, apart from the traditional (4’ x 8’). This has
Slide 31: Medium Density Fibreboards (MDF)
Medium Density Fibreboards (MDF) Rs. in Crores Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Net Sales 74.12 46.14 60.64 243.72 45.48 435.88 EBIDTA Margin (%) 22.62 15.08 754 bps 15.42 Negative Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Annual Capacity (CBM) 180000 180000 180000 1
Slide 32: Medium Density Fibreboards (FY12 Highlights)
Medium Density Fibreboards (FY 12 Highlights) • Increased production by 334% to 116898 CBM • Grew 435.88% in value terms to Rs 243.72 crores in FY 2012 • Achieved overall capacity utilization of 65% in FY 2012 • Added Veneered MDF to the product basket • Commenced production of thin MDF
Slide 33: Medium Density Fibreboards (MDF)
Medium Density Fibreboards (MDF) • MDF is a very versatile product with wide applications, primarily in paneling, wide range of furniture, windows & doors frames, handicraft industry, display or exhibition stands and signage's, false ceiling, toys, carving & molding panels, partitions, shoe industry
Slide 34: Medium Density Fibreboards (MDF)
Medium Density Fibreboards (MDF) • Unit received FSC Certification of Controlled Wood and Chain of Custody. It is also working on new resin technology to meet worldwide standards on formaldehyde and emissions and obtain E-1 and CARB certifications. • This plant is based on the latest Continuous Pres
Slide 35: Capacity Utilization Plywood
Capacity Utilization Plywood 33 119% 125% 31 113% 110% 115% 29 27 105% mn.sq.m. 25 95% 23 21 85% 19 75% 17 15 65% FY 10 FY 11 FY 12 Capacity Production Utilisation Rate
Slide 36: Capacity Utilization Laminates
Capacity Utilization Laminates(annualised) 11 107% 110% 10 105% 9 8 100% mn.sheets 94% 99% 7 95% 6 5 90% 4 85% 3 2 80% FY 10 FY 11 FY 12 Capacity Production Utilisation Rate
Slide 37: Capacity Utilisation Medium Density Fibreboards
Capacity Utilisation Medium Density Fibreboards 180000 100% 160000 90% 140000 80% 65% 70% 120000 mn.sq.m. 60% 100000 50% 80000 40% 60000 30% 40000 20% 20000 15% 10% 0 0% FY 10 FY 11 FY 12 Capacity Production Utilisation Rate
Slide 38: Financial Highlights
Financial Highlights
Slide 39: Highlights – Q1FY13
Highlights – Q1FY13 • Net Sales up by 22.20% at Rs. 430.54 crores – Plywood & Allied Products : Rs. 202.71 crores, up by 13.59% – Laminates & Allied Products : Rs. 153.70 crores, up by 20.33% – Medium Density Fibre-Boards : Rs. 74.12 crores, up by 60.64% • EBIDTA (excluding foreign currency gains) u
Slide 40: Performance Snapshot 2012
Performance Snapshot 2012 Greenply's top line growth of 35% outperformed India's NET Sales Increased by 35.05% GDP Growth of 6.9% and construction industry growth of 4.8% EBIDTA MARGINS STRENGTHENED BY 159 BPS NET PROFIT UP BY 112.87%.
Slide 41: Highlights – FY12
Highlights – FY12 • Net Sales up by 35.05% at Rs. 1642.27 crores – Plywood & Allied Products : Rs. 815.58 crores, up by 20.96% – Laminates & Allied Products : Rs. 582.98 crores, up by 17.49% – Medium Density Fibre-Boards : Rs. 243.72 crores Vs Rs 45.48 • EBIDTA up by 57.45% at Rs. 183.34 crores • EB
Slide 42: Financial Performance
Financial Performance Rs. in Crores Particulars FY2012 FY2011 Key Ratios ROCE (%) 14.03 8.77 RONW (%) 14.41 7.79 Net Debt / Equity (x) 1.85 1.86 Working Capital Cycle (Days) 32 34 Update on Balance Sheet Particulars FY2012 FY2011 Tangible Net Block 615.64 599.37 Net Worth 370.62 321.99 Total Debt 68
Slide 43: Sales Break Up
Sales Break Up FY12 FY11 Medium Medium Density Density Fibreboards Fibreboards 3% 15% Plywood & Allied Products Laminate & 50% Allied Products 41% Laminate & Allied Products Plywood & 35% Allied Products 56%
Slide 44: Growth Momentum
Growth Momentum NET SALES EBIDTA 1800 CAGR 31.95% 200 1600 CAGR 22.50% 1400 1200 150 1000 800 600 100 400 200 FY08 FY09 FY10 FY11 FY12 50 FY08 FY09 FY10 FY11 FY12
Slide 45: Our Sustainable Acts
Our Sustainable Acts • Formulated Green Strategy Group (GSG) –Nodal agency to create, sustain and harness the ‘Green Initiatives’ across the entire value-chain of the Organization. Key Role – Monitor environment impact on value chain – Reduce carbon footprints – Incorporating Clean technologies – Bu
Slide 46: Giving Back to The Planet
Giving Back to The Planet • Provides an additional source of income to farmers • Involved in planting close to 0.5 Million saplings in the tribal areas of Nagaland •
Slide 47: Our Green Credentials
Our Green Credentials 1st non US 1st Indian Brand Only one in the First Indian Brand All manufacturing Company, to bag to be certified by industry to use to get certified with Facilities are the coveted GREEN LABEL Bio-Mass in the FSC (C-O-C) ISO 14001, 18000 GREENGUARD Singapore manufacturing and O
Slide 48: Our People – Our Strength
Our People – Our Strength More than 4500 employees Net Sales per employee grew 26.53% EBIDTA per employee grew 47.45%
Slide 49: Product Initiatives
Product Initiatives Plywood •Added Green Compressed Ply into the product basket. •Introduced products in the technical plywood segment for transportation industry MDF •Launched veneered MDF under the brand banner of Green Panel Max •Commenced the production of thin MDF (2.5mm-8mm) Laminates & Decora
Slide 50: Marketing Initiatives
Marketing Initiatives • Launched 4 new Green Design Studios ( signature store) to give customer a world class shopping experience for interior related products • Strengthened BTL drives to improve brand presence and visibility at the trade level & through various other activities like sponsorships,
Slide 51: 360 Degree Brand Building Approach
360 Degree Brand Building Approach TV Successful brand campaign with a new communication tag line – “Always Hoyenga – Greenply Plywood” Outdoor 360 degree approach to make the consumer Aware, Talk & Connect. Print Each of the media vehicle has been planned to drive better realization & commercial Ci
Slide 52: IT & HR Initiatives
IT & HR Initiatives IT Initiatives • Implemented applications like Business Intelligence for faster and drilled down analysis; • Expanded its SAP domain with new roll-outs in various domains and invested in Unified Communications to enhance employee productivity and reduce telecom operation costs. H
Slide 53: Investment Highlights
Investment Highlights • Established brands with strong presence and market share • Increasing utilization and change in product-mix at new plants would substantially boost revenues and profits in the next 2 years • Existing business is expected to grow at 20-25% • Recovery in residential and commerc
Slide 54: Thank You
Thank You Corporate Office: Phone: +91 33 3051 – 5000 16A, Shakespeare Sarani, New Fax: +91 33 3051-5010 B.K. Market, 2nd Floor, Kolkata – investors@greenply.com 700 071, West Bengal, India www.greenply.com
Greenply Industries — Q1 FY2013 Earnings Presentation on 6ix