Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q1 FY2024 Earnings Presentation
28 slides from Asian Paints's earnings presentation, Jul 25, 2023
Slide 1: Exchange filing letter: Investor Presentation for quarter ended 30 June 2023
APL/SEC/32/2023-24/38 25th July, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, 25th Floor, Dalal Street, Block G, Bandra - Kurla Complex, Fort, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 Scrip Code: 500820 Symbol: ASIANPAINT
Slide 2: Investor Conference Q1-FY2024 Results
op asianpaints Investor Conference Q1- FY2024 Results
Slide 3: Delivering joy since 1942
Delivering joy since 1942…. We exist to Beautify, Preserve, Transform all Spaces and Objects, bringing happiness to the World! 2
Slide 4: Disclaimer
Disclaimer This communication, except for the historical information, may contain statements which reflect the Management’s current views and estimates and could be construed as forward-looking statements. The future involves many risks and uncertainties that could cause actual results to differ mat
Slide 5: Decorative Business (India) Double-Digit Volume Growth
Decorative Business (India) Double – Digit Volume Growth, Coming on a High Base of Previous Year Volume led Growth for the Quarter Q1 FY'23 Q1 FY'24 4 Yr CGR 17.5% 4 Yr CGR 17.0% 59% 37% 10% 8% Volume Gr% Value Gr% Broad - Based Growth Across Regions 4
Slide 6: Decorative Business (India) Consistent Double-Digit Volume Growth
Decorative Business (India) Continued & Consistent Path of Double – Digit Volume Growth on 4 Year Compounded Growth Rate Basis 240 *17.5% *21.5% *20.3% *17.5% *14.8% *15.9% *18.2% 200 *15.2% 160 *15.0% 120 80 40 - Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY2
Slide 7: Decorative Business (India) All Drivers of Growth on Track
Decorative Business (India) All Drivers of Growth on Track ❑ Double-digit volume growth across rural & ❑ Sustained strong demand for Safe Painting urban markets; Rural growth improving Service (SPS) & Trusted Contractor Service (TCS) ▪ Over 4 years, both rural & urban centers ▪ Catering to over 650
Slide 8: Nilaya Naturals – a Paint Like No Other
Nilaya Naturals – a Paint Like No Other A uniquely luxurious lime-based paint, revolutionized for the modern world. A natural paint presented in sustainable packaging with over 90% of its earth-safe ingredients and 200+ shades 7
Slide 9: Royale Play Material Finishes
Royale Play Material Finishes - Bringing to Life Concrete, Clay, Stone, Rusted Surfaces & Metals METALLO FUSO RIPPLE CALCECRUDA FUSO MARMORINO MULTI TONE ARCHI ARGILA EARTH OPACO MATT INFINITY TRELLIS ARCHI ARGILA HEXAGON VELOUR CLASSIQUE CALCECRUDA STUCCO STUCCO MIRROR WALL 2 FLOOR SUBWAY MIRROR PA
Slide 10: Excitement through Innovation
Excitement through Innovation Premium PU Finish Luxury Exterior Paint with for Melamyne upgrade 15+15+15 Warranty Hydroloc Xtreme Anti Insect Paint Waterproofing Paint 9
Slide 11: Our Home Décor Foray
Our Home Décor Foray ~ 4% of Decorative No. 1 Integrated No. 1 in Decorative No. 2 in Fabric & Revenue Home Décor Player Lighting Furnishing Collaborations Entry in Wooden 44 Beautiful No. 1 in with Sabyasachi, Flooring, uPVC Homes stores in Wallcovering & Jaipur Rugs, Sarita Doors/ other new India
Slide 12: Home Décor Business: Kitchen & Bath
Continue to Focus on Kitchen & Bath Business Kitchen Business ❑ De-growth of 12% over last year Revenue Home Décor Business ▪ Last year Q1 had a high base due to price increases Q1 FY'23 28% 12% ▪ Growth in FKD business, Components business Q1 FY'24 slow 109 96 118 85 ❑ Large focus on efficiency, to
Slide 13: Crest Luxury Collection by Sleek Kitchens
Crest Luxury Collection by Sleek Kitchens 12
Slide 14: Our Furniture Range
Our Furniture Range 13
Slide 15: Furniture Solutions that Enhance your Home Décor
Furniture Solutions that Enhance your Home Décor Natural Habitat Modern Day Classics 14
Slide 16: Fitted Furniture for Every Purpose
Fitted Furniture for Every Purpose Spanning across range of Crockery Units, Entertainment Units, Study Desks, Vanity Units, Shoe Racks, Pooja Units & Wardrobes ADOR Range ROYAL Wardrobes DESIGN FOR TRENDY STYLES TOP NOTCH ENGINEERED PASS MULTIPLE MULTIPLE PROFESSIONAL STATE OF THE ART PERSONALIZATIO
Slide 17: White Teak & Weatherseal - Gaining from Network Synergies
White Teak & Weatherseal - Gaining from Network Synergies White Teak (Offering Decorative & Designer Lights) Home Décor Business ❑ Net Sales of Rs. 26 crs in Q1 with 28.4% growth ❑ Expanding geographic footprint & growing traction across Beautiful Homes network ❑ Acquired further 11% stake in June’2
Slide 18: Beautiful Homes Studio – the Next Frontier
Beautiful Homes Studio – the Next Frontier of our Transformational Journey 17
Slide 19: International Business
WA Nepal cD) Bangladesh c —_— Solomon 5 Islands Indonesia faa) Ro} Vanuatu Cc Bahrain Oo Fiji Y Oo Egypt Qatar 4 man c °@ L UAE Sri Lanka ad Cc Ethiopia - | isa 2 Sp asianpaints 3 Spasianpaints 4 passe 5 scibS 6 GENS 7 <apco samnos
Slide 20: International Business: Macro-Economic & Forex Challenges
Macro-Economic & Forex Challenges Reign Heavy ❑ De-growth of 1.4% in INR terms; constant currency International Business Revenue 1% growth of 3.8% ▪ Strong double-digit growth in Middle East 705 695 17% ▪ Sri Lanka business has positive trajectory on stabilized 23% 5% economic conditions & forex ava
Slide 21: Industrial Business: Growing from Strength to Strength
Growing from Strength to Strength PPGAP Revenue Q1 FY'23 Q1 FY'24 Industrial Business ❑ Sustained double-digit revenue growth driven by Automotive OEM & Refinish segment 13% 22% ❑ Improved price realizations & softening raw material 472 416 294 prices led to improvement in margins across all 242 seg
Slide 22: Gross Margins at Nine Quarter High
Sourcing & Formulation Efficiencies, Softening Raw Material Prices Driving Gross Margins to Nine Quarter High Material Inflation Material Inflation Material Inflation Material Inflation Material Inflation ~15% ~6% ~4% Material Inflation ~6% ~2% Material Deflation Material Deflation Material Deflatio
Slide 23: Summary Financials
Summary Financials Standalone Financials ❑ Net Sales growth of 7% led by double – digit volume growth Q1 FY'24 Q1 FY'23 7% 8,085 ❑ 550 bps improvement in gross margin to 43.4% driven by 23% sourcing & formulation efficiencies and softening raw 47% 37% 3,507 48% material prices 2,000 2,018 1,508 ❑ PB
Slide 24: Good Start to FY2024
Good Start to FY2024 Double-digit volume & healthy value growth in Deco Business (India) despite high base of previous year Home Décor benefitted from high growth trajectory in fabrics, decorative lighting, , UPVC windows & doors; Focused on scaling up Kitchen & Bath Industrial business continues do
Slide 25: Doing Business the Right Way - Deeply Intertwined with ESG
Doing Business the Right Way - Deeply Intertwined with ESG Environment • Product Stewardship • Water Neutrality Social • Energy Conservation • Building Safety Culture • Nature Positive • Energising, Equitable & Inclusive Work Environment • Community Owner, Governance Customer Celebrations • Building
Slide 26: Near & Medium Sustainability Targets & Progress
Near & Medium Sustainability Targets & Progress Fresh Water 3.8x 4.0x 6.0x 6.4% 20% 30% Renewable/bio-based Replenishment Raw Materials in Products Reduction in Specific 70% 81% 83% 63% 75% 100% Hazardous Waste/KL % Renewable Electricity Finished Product (kg/KL) 78% 79% 81% 3.65 5.0 6.5 Reduction in
Slide 27: Outlook for FY2024
Outlook for FY2024 ❑ Indian economy continues to be the only bright spot in world economy and key contributor to global growth. High correlation of domestic GDP growth with paint industry to ensure we grow well ▪ Will continue to aggressively pursue growth ❑ Good progress of monsoon bodes well for r
Slide 28: Thank You
Thank You title