Cera Sanitaryware Limited · NSE:CERA
Cera Sanitaryware — Investor Presentation (November 2019)
31 slides from Cera Sanitaryware's investor presentation, November 2019
Slide 1: Cera Sanitaryware Limited Corporate Presentation
Cera Sanitaryware Limited Corporate Presentation November 2019 Style. Innovation. Leadership
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Cera Sanitaryware Limited company, have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 3: Contents
Contents Company Overview 4 Key Differentiators 14 Financial Overview 27 Industry Growth Outlook 30 3
Slide 4: Premier Sanitaryware Company in India
Premier Sanitaryware Company in India Rich Legacy of Market Leader in India for Sanitaryware facility in Debt Company Sanitaryware India Employees with a Teeth-to-tail ratio of Revenue CAGR EBITDA CAGR PAT CAGR (6 year) (6 year) (6 year) Cash and Cash Equivalents* of Rate of Dividend - FY19 For Long
Slide 5: Business Moats
Business Moats Largest Market Share, Deep Customer Connect and Elevated Brand Promise Largest plant for Sanitary ware in India established at legacy costs Robust Financial Position Wide Product Portfolio incorporating Design Excellence and Deep Technology Imprint Experienced Proficient Leadership wi
Slide 6: Robust Financial Position and Protocols
Robust Financial Position and Protocols Zero Debt • Cash and Cash Equivalents of Rs.181 crore; primarily liquid investments Company • No Contingent Liabilities for Joint Ventures Sharp Focus • Industry leading RoCE - 26% on Efficient • Fixed Asset turnover of ~4.4x (As on 31 March 2019) Capital Mana
Slide 7: Promoters
Promoters Mr. Vikram Somany Mrs. Deepshikha Khaitan Founder and CMD Vice Chairperson • B.Sc., FCMI (U.K.) • B.Sc. Hons. (Economics), LLB • Founded the business in 1980 • Actively associated with CERA for over 7 years • Deep industry knowledge and experience • Involved in Design Innovation, Product,
Slide 8: Leadership Team
Leadership Team Mr. Atul Sanghvi Mr. Rajesh B Shah CEO & Executive Director CFO / COO (Fin. & Comm.) • MBA in Marketing; experience of 34 years • B.Com & ACA; experience of 33 years • Part of CERA leadership for over 20 years • 33 Years with CERA • In charge of all aspects of manufacturing, • Leads
Slide 9: Leadership Team
Leadership Team Mr. P. K. Shashidharan Mr. Abbey Rodrigues President – Marketing President – Sales • M.A. (English); experience of 38 years • B. Com, PGDMSM ; experience of 24 years • 27 years with CERA • 22 years with CERA • Brand custodian of CERA • Manages the pan India sales team • Devising medi
Slide 10: Concerted Focus on ESG… 1
Concerted Focus on ESG… 1 Annual Green Energy Generation & Consumption Mill KWH Generation Consumption 20.33 20.65 21.61 20.86 19.49 17.8 FY15-16 FY16-17 FY17-18 Environment Sustainability is at the heart of CERA’s being. Amongst various initiatives: ● Non-Conventional Energy generation via wind a
Slide 11: Concerted Focus on ESG… 2
Concerted Focus on ESG… 2 Social CERA is involved in various social welfare activities and has always considered social contribution a primary objective Encouraging of diversity of religion and gender in the organisation Regularly undertakes Education Programmes, Health Programmes, Skill Devel
Slide 12: Marquee Clients
Marquee Clients Key Institutional Clients Key Government and PSU’s Patrons 12
Slide 13: Ownership and stakeholder value creation
Ownership and stakeholder value creation Mutual Funds, Market Cap. (in Rs. Crore) 13.3% FIIs, 7.8% 3,472 Promoters, 30 Sept. ‘19 54.8% Public 63 Shareholding, 24.2% June ‘09 Dividend Distributed (Rs. cr.) Key Institutional Shareholders As on Sept. ‘19 16.9 15.6 15.6 HDFC Life Insurance Company Ltd.
Slide 14: Key Differentiators
Key Differentiators Customer focused and Strong Brand promise - Customer centric Built over 39 years Multi-layered Marketing Large-scale and optimized Infrastructure and Activities manufacturing Comprehensive Quality Control & Process Design excellence and deep 14 Geographical footprint Excellence t
Slide 15: Strong Brand Promise
Strong Brand Promise - CERA’s product portfolio encompasses every aspect of the price and design matrix LUXURY - Niche brands for deeper engagement with varied PREMIUM customer and market segments MID MASS 15 Brand Promise carefully cultivated over 35 years by consistently delivering on quality, val
Slide 16: Large-Scale and Optimized Manufacturing
Large-Scale and Optimized Manufacturing 16
Slide 17: Quality Control and Process Excellence
Quality Control and Process Excellence Rapid Plant is equipped with Advanced Technology Robotic Glazing machines Quality Adoption – which provide shine and Control Robotics for colour to the product and Systems Sanitaryware faster turnaround time Finishing Latest R&D Center Sanitaryware (Approved Mo
Slide 18: Design Excellence and deep technology imprint
Design Excellence and deep technology imprint First Installed 3D Sanitaryware printers for Company to Faucet design design and – A complete install 3D automated printers design process Successfully installed 3D printers which has considerably shortened the duration for 18 conversion of concept into
Slide 19: Comprehensive geographical footprint
Comprehensive geographical footprint Main plant at Kadi Main Plant encompassing Tile Mfg. plants Sanitaryware, Chandigarh Faucetware and 10 CERA Style Studios Racepolymer plants 139 CERA Style Galleries Morbi - Tiles Plant 14,000 + Trade Partners Ahmedabad Kolkata Gearing up with increase in sales a
Slide 20: Multi layered Marketing Infrastructure.. 1
Multi layered Marketing Infrastructure.. 1 10 CSS: Ahmedabad/Bangalore/Chennai/Mumbai/ Kolkata/Morbi/Thiruvananthapuram/Chandigarh /Hyderabad/Cochin Discerning customers including influencer's can touch and feel products No sales orientation/pressure The average size these company owned show
Slide 21: Multi layered Marketing Infrastructure.. 2
Multi layered Marketing Infrastructure.. 2 139 CSGs: Covering pan India (Dealer Owned) Complement/Substitute CSS Filters include showroom location, size of display area allocated, sales turnover history and commitment of the dealer Exclusive display in a marked area that will highlight produ
Slide 22: Multi layered Marketing Infrastructure.. 3
Multi layered Marketing Infrastructure.. 3 Enhances retail experiences, retailer owned Currently 2,700 Style Centre operational Over 600 CSCs planned in the next 2 financial years Retailer does not have to pay for display products 22
Slide 23: Multi layered Marketing Activities.. 4
Multi layered Marketing Activities.. 4 Senator Launch Senator, ISVEA & Water Heater Prints 23
Slide 24: Multi layered Marketing Activities.. 5
Multi layered Marketing Activities.. 5 Consistent investments in several Branding and promotional activities to enhance overall market potential by: Creating a strong brand recall in consumers minds First Brand Dia Mirza to sign an celebrity as • The former Miss Asia Pacific turned actress, was CE
Slide 25: Multi layered Marketing Activities.. 6
Multi layered Marketing Activities.. 6 Consistent investments in several Branding and promotional activities to enhance overall market potential by: Creating a strong brand recall in consumers minds CERA celebrates homes with ‘Kuch Pal Ghar Ke Naam’ campaign • The recent multimedia campaigns have
Slide 26: Customer Focused and Customer Centric
Customer Focused and Customer Centric • 13 service offices Mobile app After Sales • 25 officers attending technicians Mobile app for trade as Complaints Servicing • 140 technicians to attend for well to closed New CRM Team – On customers register within 1 to complaints spread across every module to
Slide 27: Financial Overview
Financial Overview Revenue EBITDA (Rs. in crore) CAGR: 15% 1,344 CAGR: 15% 1,193 206 1,059 182 182 917 151 822 124 664 101 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 PAT (Rs. in crore) EPS (In Rs.) CAGR: 17% 88.5 115 79.9 77.1 104 100 83 64.2 68 53.4 52 41.0 27 FY14 FY15 FY16 FY17 F
Slide 28: Financial Overview
Financial Overview Networth (in crore) Working Capital Days (Net) 106 107 700 105 104 605 524 436 352 96 94 224 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 ROCE (%) ROE (%) 32% 23% 28% 29% 20% 20% 26% 26% 26% 19% 17% 16% 28 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19
Slide 29: Abridged P&L – Standalone – Period ending Sept. 2019
Abridged P&L – Standalone – Period ending 30 Sept. 2019 Particulars (Rs. crore) Q2 FY19 Q2 FY20 Y-o-Y Shift H1FY19 H1FY20 Y-o-Y Shift Revenue from Operations 331 327 (1%) 612 595 (3%) Other Income 4 4 3% 6 7 18% Total Income From Operations (Net) 335 331 (1%) 618 602 (3%) Total Expenditure: Raw Mate
Slide 30: Economic and Fundamental trends are favorable for growth
Economic and Fundamental trends are favorable for growth Industry to benefit from amalgamation of growth vectors Rising demand in Highly Increase in Tier II and Increasing shift Consolidated Growing Per Capita Stable input II cities towards higher Market with Population & Income costs and spends and
Slide 31: Thank You
Thank You For further information, please contact: Siddharth Patel / Ayush Bagla CERA Sanitaryware Limited Phone : +02764 243000 / 022 4295 8370 Email: siddharth@cera-india.com ayushbagla@cera-india.com Mayank Vaswani / Devrishi Singh CDR, India Phone : +91 22 6645 1230 / 1222 Email: mayank@cdr-indi
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