Kansai Nerolac Paints Limited · NSE:KANSAINER

Kansai Nerolac Paints — Q4 FY2023-24 Earnings Presentation

44 slides from Kansai Nerolac Paints's earnings presentation, May 6, 2024

  1. Slide 1: Investor Presentation Cover Letter to Exchanges

    Page 1 of 44 KANSAI NEROLAC PAINT PAINT+ 6th May, 2024 1. Corporate Relationship Department 2. Manager – Listing BSE Limited, National Stock Exchange of India Ltd. PhirozeJeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, BandraKurla Complex, Bandra (E), Mumbai - 400001. Mumbai - 400051.

  2. Slide 2: Q4 & FY 2023-24 Investor Presentation

    Page 2 of 44 Q4 & FY 2023-24 Investor Presentation 7th May 2024 All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

  3. Slide 3: Disclaimer

    [ ( KANSAI Page 3 of 44 NEROLAC PAINT Disclaimer This presentation may contain statements which reflect management’s current views and estimates and could be construed as forward making statements. The future involves certain risks and uncertainties that could cause actual results to differ material

  4. Slide 4: Business Environment, Nerolac Story, Financial Performance

    Page 4 of 44 1 Business Environment 2 Nerolac Story 3 Financial Performance All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May 2024

  5. Slide 5: 1. Business Environment

    Page 5 of 44 1. Business Environment All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May 2024

  6. Slide 6: Recap of Business Environment FY 2023-24

    [ ( KANSAI Page 6 of 44 NEROLAC PAINT Recap of Business Environment FY 2023-24 Good Demand in Automotive Infrastructure Growth Slower Rural Demand Geopolitical Challenges Crude Oil Price Fluctuation Rupee Depreciated Investor Presentation All rights for this presentation are reserved with Kansai Ner

  7. Slide 7: 2. Nerolac Story

    Page 7 of 44 2. Nerolac Story All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May 2024

  8. Slide 8: Purpose, Vision and ESG

    Page 8 of 44 [ ( ~~SAi _I_____________________INEROLAC Purpose: Create environments for a healthy and beautiful future Vision: We design solutions that protect, inspire and touch lives everyday METRO CC Tile EV Underbody, Alloy Wheel ESG: Water Positive, Emission reduction, Green energy Investor Pre

  9. Slide 9: Brand Nerolac: Innovator's Paint

    [ ( KANSAI PAINT Page 9 of 44 NEROLAC WE ARE A POWERHOUSE OF PAINT BRAND INNOVATOR’S EXPERTISE AND NEROLAC: SPIRIT: LEGACY: JAPANESE TECHNOLOGY 2nd STRONGEST BRAND THE NEROLAC JINGLE LEADERS IN INDUSTRIAL PAINT+ PRODUCTS IN DECORATIVE + Investor Presentation All rights for this presentation are rese

  10. Slide 10: Decorative Business

    Page 10 of 44 Decorative Business All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May 2024

  11. Slide 11: Strategy Decorative

    [ ( KANSAI PAINT Page 11Strategy Decorative of 44 NEROLAC NEROLAC PAINT+ BRANDING & MEDIA SPEND NEW PRODUCTS NEROLAC PAINT+ PROJECTS BUSINESS (B2B) PREMIUMISATION/FOCUS VALUE NEW BUSINESS INFLUENCER PROGRAM 10 Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Pa

  12. Slide 12: Paint+, New Products and Premiumisation

    [ ( KANSAI Page 12 of 44 NEROLAC PAINT Paint+, New Products and Premiumisation NEW PRODUCTS PAINT+ PREMIUMISATION  Launched 15+ New Products  Launched 4 New Products in Paint+  Saliency increased by Category 150+ Basis Points  New Product Saliency ~ 10%  Saliency increased by 150+ Basis Points

  13. Slide 13: Influencer Program

    [ ( KANSAI Page 13 of 44 NEROLAC PAINT Influencer Program Engaged directly with influencers and consumers PAINT AS A SERVICE ARCHITECTS & INTERIOR PAINTERS (PRAGATI) SECONDARY SALIENCY TO PRIMARY DESIGNERS  Scaled to 250+  Expanded in  Increased share  Concentrated Efforts being cities more no o

  14. Slide 14: NxtGen Paint Service (Online)

    [ ( KANSAI PAINT NxtGen PaintPage 14 of 44 Service (Online) NEROLAC NEROLAC NEROLAC N~TGEN PAINT+ 1 STOP SOLUTION for all home painting doubts! NEROLAC KNOWS Need Based product recommendation Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. th

  15. Slide 15: Digital Platforms for Customers (Online)

    [ ( KANSAI Page 15 of 44 NEROLAC PAINT Digital Platforms for Customers (Online) ARCHITECT & DEALER PAINTER DIGITAL COMMERCE INTERIOR DESIGNERS 12:35 ,,II 4G m N EROLAC Q NEROLAC A o PAINT+ L:J r.. Sites Wolcomo, iilan91'!u.~bte¥M: wui,dll!'l'manlhorn~tor'ICCl'n Rita n shu Welcome, Product Ca tal ogu

  16. Slide 16: Retail Platform for Customers (Offline)

    [ ( KANSAI Page 16 of 44 NEROLAC PAINT Retail Platform for Customers (Offline) NIX NXTGEN SHOPPE NEROLAC PAINT+ CORNER COLOR SENSOR 80+ Shoppe 80+ Shop in Shop NEROU.C PAINT+ CORNER 15 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation th NEROLAC

  17. Slide 17: New Business

    [ ( KANSAI NEROLAC PAINT NewPage 17 of 44 Business  Saliency of New Business increased by 180+ Basis points  Significant growth witnessed in New Business over LY  Entry into new segments like Admixtures in CC and Membranes in Waterproofing  Significant increase in registered influencers  Launch

  18. Slide 18: Projects Business (B2B)

    [ ( KANSAI Page 18 of 44 NEROLAC PAINT Projects Business (B2B) GEOGRAPHICAL REACH I I 75+ Towns SALIENCE IN DECO I ACTIVE CONTRACTORS I I 35%+ ti STRONG PIPELINES OF POTENTIAL PROJECTS ~100 basis points t SUPER SERIES PRODUCT RANGE I 17 All rights for this presentation are reserved with Kansai Nerol

  19. Slide 19: Branding & Media Spend

    [ ( KANSAI PAINT Branding &PageMedia 19 of 44 Spend NEROLAC NEROLAC BRAND AWARENESS BRANDING SPEND (ALL MEDIA) WEBSITE TRAFFIC LEAD GENERATION I DIGITAL SPEND INCREASE I I I FY2021-22 FY2022-23 FY2023-24 2X 4X 18 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Inves

  20. Slide 20: Marketing and Media Campaigns

    [ ( KANSAI PAINT Marketing and Page Media20 of 44 Campaigns SOCIAL MEDIA CAMPAIGNS - CO-ASSOCIATE SPONSOR AND PRESENCE IN ENTERTAINMENT CHANNEL Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. th

  21. Slide 21: Prominent Projects in Decorative

    [ ( KANSAI Page 21 of 44 NEROLAC PAINT Prominent Projects in Decorative Wankhede Stadium (Mumbai, MH) Lucknow Airport (Lucknow, UP) Atal Bihari Vajpayee Cricket Stadium (Lucknow, UP) Ayodhya Dham (Ayodhya, UP) Delhi Railway Station (DL) Bharat Sevashram (Varanasi, UP) Investor Presentation All right

  22. Slide 22: Decorative Accolades

    [ ( KANSAI PAINT Page 22 of 44 Decorative Accolades NEROLAC I Best Indian Brands 2023 NEROLAC PAINT+ #41 BEST BRAND OF THE YEAR 2023  Gold award from e4m Maddies  Gold Award from Mobexx  Silver award from MMA Smarties  41 Best Brand by Interbrand’s Best Brands Investor Presentation All rights fo

  23. Slide 23: Industrial Business

    Page 23 of 44 Industrial Business All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May 2024

  24. Slide 24: Industrial Highlights-Automotive

    [ ( KANSAI PAINT Page 24 of 44 Industrial Highlights-Automotive NEROLAC KANSAI [ ( PAINT NEROLAC PAINT+ PASSENGER VEHICLE 2/3-WHEELER  BUSINESS GROWTH  BUSINESS GROWTH  7% demand growth (SIAM) led by SUV  10% demand growth (SIAM) led by rural  > 100% EV Demand growth recovery in H2  > 40% EV D

  25. Slide 25: Innovate and Create New Technologies to Increase Total Addressable Market

    [ ( KANSAI PAINT Page 25 of 44 NEROLAC INNOVATE AND CREATE NEW TECHNOLOGIES TO INCREASE TOTAL ADDRESSABLE MARKET Alloy Wheels _ [ _ _] _ [ _ _ ____,J] Sealers & Underbody  Zinc Flake Coatings _ [ _ _ _] Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints

  26. Slide 26: Industrial Highlights-Refinish

    [ ( KANSAI PAINT Page 26 of 44 Industrial Highlights-Refinish NEROLAC [ ( KANSAI PAINT  BUSINESS GROWTH  Continued the Good growth momentum  PREMIUMISATION  Achieved close to 2X Value growth in Premium PU segment  NEW TECHNOLOGY  Introduced Next Generation waterborne paint system for Bodyshops

  27. Slide 27: Industrial Highlights-Performance Coating

    [ ( KANSAI Page 27 of 44 NEROLAC PAINT Industrial Highlights-Performance Coating LIQUID POWDER  BUSINESS GROWTH  BUSINESS GROWTH  Channel sales continues to be thrust area with sales growing in very  Marginal growth in Q4 & at FY level strong trajectory in past 2 – 3years  PREMIUMISATION  PREM

  28. Slide 28: Industrial Highlights-Technology

    [ ( KANSAI Page 28 of 44 NEROLAC PAINT Industrial Highlights-Technology JAPAN, EUROPE & TURKEY PROVIDE TECHNOLOGICAL SUPPORT TO INDIA ············• JAPAN INDIA Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 7th May 2024

  29. Slide 29: Prominent Projects in Industrial

    [ ( KANSAI Page 29 of 44 NEROLAC PAINT Prominent Projects in Industrial MUMBAI COASTAL ROAD TRANS HARBOUR LINK (MUMBAI, MH) (MUMBAI, MH) BULLET TRAIN VANDE BHARAT TRAIN Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 7th May 2024

  30. Slide 30: Industrial Accolades

    [ ( KANSAI Page 30 of 44 NEROLAC PAINT Industrial Accolades  KNPL was awarded best vendor award from Honda Car India Ltd  TVS presented an Appreciation Award for the swift response and support.  Hosur Powder coating unit received “Appreciation Award” from customer “OJUS” for consistent supply and

  31. Slide 31: Manufacturing

    [ ( KANSAI PAINT Page 31 of 44 Manufacturing NEROLAC CAPACITY  Hosur capacity addition completed  Vizag Phase 1 on track and to be commissioned in Q2 FY 24-25  Jainpur water Base capacity expansion on track and will be commissioned by Q3 end FY 24-25 Capacity FY23-24 : 611 Mn Ltr/Y BACKWARD INTEG

  32. Slide 32: Supply Chain & Services

    [ ( KANSAI PAINT Page 32 of 44 Supply Chain & Services NEROLAC PROCUREMENT & SUPPLY CHAIN DISTRIBUTION NETWORK Procurement Decorative  Reduced material cost significantly  Added 9 more Depots in FY 23-24 to strengthen distribution  Implemented Ariba for indirect procurement network. Total 112 Dep

  33. Slide 33: Human Capital

    [ ( KANSAI Page 33 of 44 NEROLAC PAINT Human Capital INNOVATION, COLLABORATION AND PEOPLE FIRST NURTURING TALENT EMPOWERMENT NEROLAC + ABHYAAS ONLINE PRODUCT TRAINING [( KANSAI """' NEROLAC e AVIHYA Innovation Platform Campus Collaboration Investor Presentation All rights for this presentation are r

  34. Slide 34: ESG Assessments by Global Indices

    [ ( KANSAI PAINT Page 34 of 44 ESG NEROLAC ESG ASSESSMENTS BY GLOBAL INDICES S&P Dow J,ones CRISIL, Indices An S&P Global Company A.Divieiion g,f S&PGlabal FTSE 4Good 2022 Yearbook • Rated #1 in the Paint KNPL has been awarded a Rated in the top 10% globally Ranked in the Top Sector Bronze medal and

  35. Slide 35: ESG

    [ ( KANSAI PAINT Page 35 of 44 ESG NEROLAC DECARBONIZATION RESOURCE USE QUALITY OF LIFE DIVERSITY 13 % Water Positive 46,000+ 4.5 % Lives touched through CSR Gender diversity achieved in KNPL became water permanent employee excluding Reduction in Scope 1+Scope2 initiatives positive in FY 23-24 worke

  36. Slide 36: Environment, Health and Safety

    [ ( KANSAI NEROLAC PAINT Environment, Page 36 of 44 Health and Safety AUDITS AND REVIEWS ENVIRONMENT  GSQ (Global Safety Quality) Audits were conducted  LCA (Life Cycle Assessment) of selected products by KPJ at Hosur, Sayakha and Bawal Plants. was evaluated for Environment product Declaration All

  37. Slide 37: CSR Initiatives

    [ ( KANSAI PAINT Page 37 of 44 CSR Initiatives NEROLAC Program Head Skill Enhancement Ensuring Env. Sustainability Community Development Prev. Health care & Sanitation Promoting Education Spend in % Partnership Goal (60%) Economic & Env. Goals (25%) Social Goals (15%) SKILL ENHANCEMENT ENSURING ENVI

  38. Slide 38: 3. Financial Performance

    Page 38 of 44 3. Financial Performance All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May 2024

  39. Slide 39: Financials-Standalone Q4 & FY 23-24

    [ ( KANSAI Page 39 of 44 NEROLAC PAINT Financials-Standalone Q4 & FY 23-24 Q4 % to Q4 % to YTD % to YTD % to Rs. In Millions 2022-23 NR 2023-24 NR 2022-23 NR 2023-24 NR Net Revenue (NR) 16,051 16,617 70,810 73,933 Material Cost 10,985 68.4 10,842 65.2 49,553 70.0 47,697 64.5 Operating Exp. 3,541 22.

  40. Slide 40: Financials-Consolidated Q4 & FY 23-24

    [ ( KANSAI Page 40 of 44 NEROLAC PAINT Financials-Consolidated Q4 & FY 23-24 Q4 % to Q4 % to YTD % to YTD % to Rs. In Millions 2022-23 NR 2023-24 NR 2022-23 NR 2023-24 NR Net Revenue (NR) 17,336 17,694 75,427 78,014 Material Cost 11,806 68.1 11,615 65.6 52,643 69.8 50,441 64.7 Operating Exp. 3,849 2

  41. Slide 41: Dividend

    [ ( KANSAI Page 41 of 44 NEROLAC PAINT Dividend Financial Year 2021-22 2022-23 2023-24 Dividend % 225 270 375* Dividend per share Rs 2.25 2.70 3.75 (Face Value Re 1 each) *Including special dividend 125% Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints L

  42. Slide 42: Capex

    [ ( KANSAI Page 42 of 44 NEROLAC PAINT Capex Rs Million 2021-22 2022-23 2023-24 Projects 1,415 280 696 Normal 875 1,116 1,676 Total Capex 2,290 1,396 2,372 Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 7th May 2024

  43. Slide 43: Subsidiaries

    [ ( KANSAI Page 43 of 44 NEROLAC PAINT Subsidiaries Nepal Bangladesh Sri Lanka • Net Sales de-grew • Net Sales de-grew • Net Sales grew by >10 % • The paint market experienced a steep • Bank interest rates dropped, and • Restriction on non-essential imports decline during 2023-24 continued. exchange

  44. Slide 44: Thank You

    [ ( KANSAI PAINT Page 44 of 44 NEROLAC THANK YOU Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 7th May 2024

Kansai Nerolac Paints — Q4 FY2023-24 Earnings Presentation on 6ix