Havells India Limited · NSE:HAVELLS
Havells India — Investor Presentation (December 2009)
19 slides from Havells India's investor presentation, December 2009
Slide 1: Havells India Ltd
Havells India Ltd December 2009 1
Slide 2: Global Footprints, Domestic Leadership
Global Footprints Domestic Leadership • Founded in 1971 with the acquisition of ‘HAVELLS’ brand; headquartered in Noida • One of the Largest Indian electrical products company with consolidated revenues of USD 1.2 billion • Expanded global reach through Sylvania acquisition in 2007 • Presence across
Slide 3: An Indian Multinational
An Indian Multinational India Europe Major Presence through Havells India Major Presence through Sylvania 42% of Consolidated Revenue 42% of Consolidated Revenue (70% of Sylvania) 8 Manufacturing Units 4 Manufacturing Units & distribution across Europe Strong Distribution Channel Ameri
Slide 4: Domestic Business
DOMESTIC BUSINESS - 4 _SYLVANIA HAVELLS
Slide 5: Consistent value creation
in millions of Rupees Consistent value creation Net Revenues 10 years 25000 21,983 • Consistent profitable growth over the last 10 years 40% 20000 15000 CAGR 10000 Sales - 27x and PAT - 58x 5000 • 30 quarters of consecutive growth* 701 0 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 • 10-ye
Slide 6: Buoyant end user segments
Buoyant end user segments Estimated electricals demand from new construction • Infrastructure, power and construction key user segments • Significant investment planned with greater focus on infrastructure development • Large investment in real estate and power sectors • Structural changes in the un
Slide 7: Product Leadership – Widest range
Product Leadership – Widest range – Amongst Top 3- Gained market share in the last 3 years Switchgears Cable & Wire Lighting & Fixture Electrical Consumer Durable Domestic Switchgears – Market Size ~INR 12,000 mn Competitors Position - Mkt Share • HAVELLS ~ 20% (15% IN 2006) • MDS/ Legrand Power Cab
Slide 8: Well entrenched brand and distribution network
Well entrenched brand and distribution network • Brand focussed approach on FMCG lines adapted in packaging, media spends, one-stop electrical shops • Consumer pull through branding ably matched with a strong dealer network • Significant focus on dealer relationship and management - a key trait inst
Slide 9: Expanding margins
Expanding margins in millions of Rupees • Margin expansion in last 5 years driven by Price disciplining- rationalisation of discount structure EBIDTA and EBIDTA margins - 5 years Value engineering to reduce product costs 2,500 12.9% 14.0% Economies of scale through large scale 2,001 2,045 2,00
Slide 10: Comfortable leverage and liquidity position
Comfortable leverage and liquidity position in millions of Rupees FY07 FY08 FY09 • Debt free balance sheet with negative working Net Worth 2,624 6,490 9,319 Total Debt 560 358 703 capital Net Fixed Assets 2,422 3,852 4,655 • Capex to increase capacity in existing products Investment 35 1,648 3,879 –
Slide 11: Focussed promoter group
Focussed promoter group Ownership Structure • Promoted by QRG, the current Chairman, himself an electrical dealer, in 1971 Promoter Group owns 60% shareholding Warburg Pincus 14% Single business focus since inception Prom oters FIIs 60% 14% Capital conservative : never issued capital Mutual In
Slide 12: International Business
INTERNATIONAL BUSINESS my 12 _SYLVANIA HAVELLS
Slide 13: Sylvania acquisition and performance
• World’s No. 4 Lighting Source and Fixture Brand with Euro 500 mn revenues • Acquired in April 2007 to Capitalise on the underleveraged brand and distribution network Improve margins through better sourcing from India and China Cross sell high margin Havells switchgear range • Enterprise Value o
Slide 14: Key Restructuring terms
Key Restructuring terms • Key terms Long term facility of euro 120 mn available till 2013 Lenders to defer amortisations for 2009 and 2010 aggregating euro 12 mn Havells to invest euro 12 mn to finance Prakram plan • Restructuring plan focussed on reducing fixed cost base through reduction i
Slide 15: Tracking bank projections
Tracking bank projections Projection vs Actual Euro in ‘000’ Particulars Jan Feb Mar Apr May June July August Sept Oct Nov YTD Nov Net Sales (projected) 36,283 37,057 36,858 34,243 31,546 34,280 33,813 27,227 34,307 34,684 35,392 375,690 Net Sales (actual) 36,283 37,057 36,858 34,243 31,822 33,782 3
Slide 16: Sylvania – leaner and profitable post restructuring
Sylvania – leaner and profitable post restructuring • Restructuring plan largely focussed on Year ending December lowering breakeven and reduce in millions of Euro 2007 2008 2009(P) vulnerability to sales volumes Net Sales 505 495 406 • The restructuring payback of 9-12 months Gross Profit 116 116 8
Slide 17: Consolidated Performance – FY09
Consolidated Performance – FY09 in millions of rupees Havells Sylvania Consolidated FY09 FY09 FY09 Actual Actual Actual Net Revenue 21,984 32,791 54,775 EBIDTA 2,033 750 2,783 As % to NR 9.2% 2.3% 5.0% Depreciation 179 726 905 Interest 193 890 1,083 Exceptional Item -- 1,987 1,987 Add: other Income
Slide 18: Epilogue
Epilogue • Havells is well positioned for growth in domestic markets through a stronger brand, distribution network and vast product range • Sylvania would be cost competitive through current restructuring and presents a good platform for electrical products having a strong brand lineage and distrib
Slide 19: Disclaimer
Disclaimer The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context
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