Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Investor Presentation (June 2022)
62 slides from Asian Paints's investor presentation, Jun 27, 2022
Slide 1: Investors presentation cover letter
Asian Paints Limited Asian Paints House GA, 5hantinagar Santacruz (E) Mumbai 400 055 T: (022) 62181000 asianpaints F: (022) 6218 llll www.asianpaints.com APL/SEC/32/2022-23/29 27th June, 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot
Slide 2: FY 2021-22 Performance Update
Classification: Internal Classification: Internal =y 202 1-22 Perfo rm ance Updat e Classification: Internal Classification: Internal
Slide 3: Delivering joy since 1942
Classification: Internal Classification: Internal asianpaints Delivering joy since 1942…. We exist to Beautify, Preserve, Transform all Spaces and Objects, bringing happiness to the World! Classification: Internal Classification: Internal
Slide 4: Disclaimer
Classification: Internal Classification: Internal asianpaints 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 a
Slide 5: Asian Paints Group Today
Classification: Internal Classification: Internal Asian Paints Group Today 4th Largest USD 4.0 Bn 3rd Largest Paint Globally in Deco Group revenue Company in Asia Architectural Business 12000+ people Amongst top 5 26 Paint in Architectural Manufacturing spearheading Coatings in World Plants an unpar
Slide 6: Global coatings rankings
Classification: Internal Classification: Internal Ranked No. 1- Most g th amongst Purposeful Brand Coatings in Non-FMCG companies in the sector world July 2021 report Ranl<ed Ranl<ed 21 st in 9 amongst th Business Today - Coatings Most Valuable companies in the Companies List. world July 2020 (Nov 2
Slide 7: Business Update - Decorative Business
Classification: Internal Classification: Internal Business Update - Decorative Busi ness Robust performance across quarters in FY 21-22 Volume Growth Value Growth 31% FY 22 36% 8% Qtr 4 21% 18% Qtr 3 27% 34% Qtr 2 35% 106% Qtr 1 94% 6 Classification: Internal Classification: Internal
Slide 8: Business Update - Decorative Business
Classification: Internal Classification: Internal Business Update - Decorative Busi ness Double digit volume and value growth delivery from a 2 / 3 year perspective, despite a challenging environment 3 Yr Comp. gr 18% 3 Yr Comp. gr 15% 2 Yr Comp. gr 22% 2 Yr Comp. gr 21% 36% 31% 13% 8% Volume Gr% Va
Slide 9: Competition Performance in FY 21-22
Classification: Internal Classification: Internal Competition Performance in FY 21-22 12 Month FY21-22 GR" Asian Paints 36.0% Ka nsaI Nerolac 24.7" Berger Paints 28.69' Akzo Nobel 30.19' Indigo 25.39' ShaUmar 18.19' others 15.0% Others – Regional players in the paint industry (as per company estimat
Slide 10: Business Update - Decorative Business
Classification: Internal Classification: Internal Busin ess Update - Deco rative Business ❖ Growth led by T1/T2 centers: Good double-digit growths, especially in Luxury & Premium range ❖ T3/T4 : Good growth here as well; Double-digit growth in Economy range ❖ Project / Institutional business growing
Slide 11: Building the Brand
Classification: Internal Classification: Internal Building the Brand asianpaints Classification: Internal Classification: Internal
Slide 12: Classification: Internal Classification:
Classification: Internal Classification: Internal Classification: Internal Classification: Internal
Slide 13: Celebrating India's Art and Culture
Classification: Internal Classification: Internal CELEBRATING INDIA'S ART AND CULTURE An ode to hand made Jaipur Ageless and Elemental, it is INK, first and foremost, that unlocks expression Classification: Internal Classification: Internal
Slide 14: Classification: Internal Classification:
Classification: Internal Classification: Internal Classification: Internal Classification: Internal
Slide 15: Making Responsible Choices
Classification: Internal Classification: Internal asianpaints Focus on Long Term Sustainable Journey Making Responsible Choices Environment Social Governance ♦:♦ World Class Governance ♦:♦ Proactive Stakeholders Engagement ♦:♦ Transparency Classification: Internal Classification: Internal
Slide 16: Product Stewardship
Classification: Internal Classification: Internal • • as1anpa1nts Product Stewardship Eliminating Harmful Ingredients Focused on eliminating/minimizing restricted raw materials from our products. Certified Sustainable products Our Architectural paints are lead and heavy Sustainable products with lea
Slide 17: Environmental sustainability metrics
Classification: Internal Classification: Internal asianpaints 282% Water Replenishment More than 3,400 tonnes of post-consumer flexible plastic & 62%* reduction More than 14,400 tonnes in Specific Non-process Fresh Water Consumption of post-consumer rigid plastic collected and recycled across 23 sta
Slide 18: Lives Touched
Classification: Internal Classification: Internal LIVES TOUCHED CSR at Vocational Training 3,75,000+ APL Providing skilling and vocational training and technical knowledge distribution, to enhance productivity and livelihood Beneficiaries for painters, carpenters and plumbers community through Colou
Slide 19: Classification: Internal Classification:
Classification: Internal Classification: Internal Classification: Internal Classification: Internal
Slide 20: Decorative Business (India) - Painting Services
Classification: Internal Classification: Internal ❖ Best in Class Painting Service ❖ Unique Painting Service Model : Globally the biggest and best service model Decorative Business (India) ❖ Unparalleled Consumer delight measured through NPS ❖ Delivered through more than 1,50,000 trained painters ❖
Slide 21: Services – A Key Differentiator
Classification: Internal Classification: Internal asianpaints Services – A Key Differentiator Introducing Waterproofing Solutions from Safe Painting Service @) Safety Protocols @ Expert Watef proofing Solutions Classification: Internal Classification: Internal
Slide 22: Classification: Internal Classification:
Classification: Internal Classification: Internal Classification: Internal Classification: Internal
Slide 23: as1anpa1nts
Classification: Internal Classification: Internal • • as1anpa1nts Classification: Internal Classification: Internal
Slide 24: Classification: Internal Classification:
Classification: Internal Classification: Internal Classification: Internal Classification: Internal
Slide 25: Breaking the Stereotype
Classification: Internal Classification: Internal . . BREAKING THE STEREOTYPE • • • • • • • Experimental considerations • • Creative problem solving Normal is boring Dare to dream : retain the context Sociological experiences • • • • • • • • • • • • • • • • • • • • • • • • • • Classification: Intern
Slide 26: We are breaking the stereotype and creating a new future of design
Classification: Internal Classification: Internal WE ARE BREAKING THE STEREOTYPE and Creating a New Future of Design Breaking the stereotype with new avenues, foraying into new categories reinforcing our point of view. Asian Paints the new emerging voice of design brings you innovation and inspirati
Slide 27: World Class Innovations
Classification: Internal Classification: Internal World Class Innovations Ultima Allura Ultima Allura Granza Torino ❖ World class Exterior Textures with an international range of more than 180 texture patterns ❖ Unique range, outclassing best in the world ❖ Suitable to Indian sensibilities and weath
Slide 28: World Class Innovations
Classification: Internal Classification: Internal ❖ First time introduction in India of a Fire-Retardant category World Class Innovations ❖ A unique hydrophobic ‘Lotus Effect’ technology ❖ Matched with the best Anti-Stain Absorption or Removal performance ALL Protek Fire Retardant Paint ❖ First time
Slide 29: New Product Introductions
Classification: Internal Classification: Internal New Product Introductions One of its kind, pioneering solutions for customers ❖ Simplified waterproofing and Efflorescence solution SmartCare HydroLOC with patented technology ❖ Unique waterproofing repair range Epoxy Apcoflur ❖ An Epoxy and Polyuret
Slide 30: Classification: Internal Classification:
Classification: Internal Classification: Internal Classification: Internal Classification: Internal
Slide 31: Home Decor Business
Classification: Internal Classification: Internal Home Decor Business Classification: Internal Classification: Internal
Slide 32: Asian Paints: The Emerging Voice of Design
Classification: Internal Classification: Internal • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Asian Paints: The Emerging Voice of Design Classification: Internal Classification: Internal
Slide 33: AP Home Decor Foray
Classification: Internal Classification: Internal , AP HOME DECOR FORAY Asian Paints being a forerunner in inspirational and excitin9 Home Decor l?artnering the customers 1n making her ctream home! Transitioning from 'Share of Surface'---+'Share of Space' · within the Homes Asian Paints providing Ho
Slide 34: AP Home Decor Foray
Classification: Internal Classification: Internal Furnishings: Designer Wall Paper: Partnership with GM Syntex Green Field foray - Ink aipur Kitchen & Kitchen Hardware & Furniture: AP Design Range Components: Sleek; A new AP HOME under Nilaya / Royale / Ador - factory in Maharashtra in 22-23 I Outso
Slide 35: Breaking the Stereotype - BHS: Coming the full circle
Classification: Internal Classification: Internal • •• BREAKING THE STEREOTYPE - BHS: • • Coming the full circle BEAUTIFUL HOMES SERVICE with asianp in • . . . . . ... ... ... ... ..... . 0 R .. . . .. •.·.· • •• •• •• •• •• • • an • • • • • • • • • • • •• • • • • • •• • • • •• • • • • • • • • d •••
Slide 36: Beautiful Homes
Classification: Internal Classification: Internal BEAUTIFUL HOMES with asianpaints One Stop Shop for all Décor Needs Classification: Internal Classification: Internal
Slide 37: Classification: Internal Classification:
Classification: Internal Classification: Internal Classification: Internal Classification: Internal
Slide 38: Home Décor - Partnership with The White Teak Company
Classification: Internal Classification: Internal Home Décor - Partnership with “The White Teak Company” • Foray in the Rs. 1200 crs Decorative & Designer Lighting market • White Teak brings a strong ‘Phygital’ model • Operating 10 stores pan India across Tier 1 cities • Tech enabled Website provide
Slide 39: Home Décor - Partnership with Weatherseal
Classification: Internal Classification: Internal Home Décor - Partnership with “Weatherseal” • Rs 11,000 crs market size for Windows & Doors • End-to-end fabrication and installation of world-class uPVC windows & doors • Network of almost 20 COCO & Franchisee stores • Strong presence in Southern In
Slide 40: Home Decor Partnership with Jaipur Rugs
Classification: Internal Classification: Internal • • • • • • • • • • • • • • • • Home Decor Partnership with Jaipur Rugs • • • • • • • • • • • • • • • • • • • • • • • • • • • Classification: Internal Classification: Internal
Slide 41: Business Update - Home Decor
Classification: Internal Classification: Internal Busin ess Upd ate - Home Decor ❖ Kitchen Business ❖ Rs. 100 crores+ delivery for 3rd consecutive quarter t Revenue ❖ Full Kitchen solutions as well as Components 55% 46% business doing well ❖ Projects business gaining traction 410 17% 34% 360 ❖ Netwo
Slide 42: Kitchens by Asian Paints
Classification: Internal Classification: Internal K I TCHENS - by - asianpaints Classification: Internal Classification: Internal
Slide 43: Crest Luxury Kitchen - Sleek Kitchens
Classification: Internal Classification: Internal CREST LUXURY KITCHEN- SLEEK KITCHENS r.::==:=================:::::::::::==-----::~ Let the epicenter of your home complement the luxuriousness that surrounds it I I The crest collection by sleek kitchens is a select collection of four luxury kitchen
Slide 44: Modernist - Intense Inspiration
Classification: Internal Classification: Internal MODERNIST - INTENSE INSPIRATION I I I A Classification: Internal Classification: Internal
Slide 45: Minimalistic - Bold Inspiration
Classification: Internal Classification: Internal MINIMALISTIC - BOLD INSPIRATION ' ;-. . :_ ..-. . .,.-·· ..-·--:- -. . . -~'-. ,.,.:.-;:· ' - Classification: Internal Classification: Internal
Slide 46: Classic - Bold Inspiration
Classification: Internal Classification: Internal CLASSIC- BOLD INSPIRATION Classification: Internal Classification: Internal
Slide 47: Classification: Internal Classification:
Classification: Internal Classification: Internal • • • • • • • 0 • • • • • • • • • • • • • Classification: Internal Classification: Internal
Slide 48: Bathsense Canvas Range
Classification: Internal Classification: Internal Bathsense Canvas Range_______ ____ ___,;;;...._ Classification: Internal Classification: Internal
Slide 49: Products at a Glance
Classification: Internal Classification: Internal PRODUCTS AT A GLANCE --- t ·-- . .. ~ ......, . ..... ....,... ... ........... -. ........ - -. . Mka< ~- -•~ ··- . .... o,.cn r,,~.- Classification: Internal Classification: Internal
Slide 50: Classification: Internal Classification:
Classification: Internal Classification: Internal • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Classification: Internal Classification: Internal •
Slide 51: Classification: Internal Classification:
Classification: Internal Classification: Internal • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • • • • Classification: Internal Classification: Internal
Slide 52: Classification: Internal Classification:
Classification: Internal Classification: Internal • • • • • • • • • • • • • 0 • • • • • • • • • • • • • • • • • • • • • • • • • 0 • • • • • • • • • • • • • • Classification: Internal Classification: Internal
Slide 53: • • • • • • • • • • • • • Classification:
0 • • • • • • • • • • • • • Classification: Classification: Internal Internal • • • • • • • • • • • • • • • . . . . 0 Classification: Internal Classification: Internal . ...
Slide 54: Home Décor Business Trajectory
Classification: Internal Classification: Internal Home Décor Business Trajectory ❖Home Décor business about 4% of the Deco Business in FY 21-22 ❖Attempting to make this 8-10% of the Deco Business by FY 25-26, including the Home Décor Services ❖This we believe has a strong synergy with the core busin
Slide 55: Business Update - Industrial Business
Classification: Internal Classification: Internal Busin ess Update - Ind ustrial Business ❖ PPG-AP Revenue ❖ Good growth amidst challenges faced by the t 32% +11% Auto industry +7% 51% ❖ Strong push for implementing price increases t 1,444 +9% 19% across B2B +35% 28% customers +17% 794 +6% 396 247 ❖
Slide 56: Business Update - International Business
Classification: Internal Classification: Internal Business Update - International Business ❖ Double digit revenue growth for Q4 & full year Revenue ❖ Asia – Strong growth in Nepal, Bangladesh 29% +11% ❖ Sri Lanka facing unprecedented +7% forex crisis 13% 18% 1,480 6% +35% +9% ❖ Africa – a weak spot;
Slide 57: Steep Material Inflation, Impact on Margins
Classification: Internal Classification: Internal Steep Materia l Inflation for the year, Im pact on margins. Mu ltiple round of price increases taken t o recover margins on a seq uentia l basis +11% +7% ~4% Material +35% +9% ~6% Material ~15% Material inflation. ~1% inflation. ~4% +17% inflation. ~
Slide 58: APL Standalone Performance Summary
Classification: Internal Classification: Internal APL Stand alon e Performance Sum mary (figures in columns in Rs. crs) Quarter 4 Full Year 37% 22% 25,002 6,755 t 15% 11% t t t■ t- 14% 10% 11% 9,393 4% 3% 2% 2,679 Net Sales Gross Margins 1,363 PBDIT* - - 1,256 PBT** 900 PAT Net Sales II Gross Margin
Slide 59: APL Consolidated Performance Summary
Classification: Internal Classification: Internal APL Con solid ated Perform ance Sum mary Quarter 4 Full Year (figures in columns in Rs. crs) 35% 28,923 21% 7,890 t 13% 10% t 1% 0% 4% 13% 9% 0% 3,052 10,623 - - 1,443 1,305 4,804 4,303 I • 874 Net Sales Gross Margins PBDIT* PBT** ■ 3,085 PAT Net Sal
Slide 60: Overall Scorecard
Classification: Internal Classification: Internal Overall Scorecard • Overall Sales increase in last 2 years : Almost Rs. 9000 Crores ( 19-20 base of 20000 crores) • PBT growth from Rs. 3600 crs in FY 2019-20 to Rs. 4300 crs in FY 2021-22 • Market Cap increase in last 2 years: USD 20 Billion to ~ US
Slide 61: Enhanced Dividend Payout
Classification: Internal Classification: Internal Enha nced Divi dend Payout FY 21-22 Rs 7.5 Rs 19.15 58.6% FY 20-21 Rs 10.3 Rs 17.85 56.1% Total Dividend Payout of Rs. FY 19-20 Rs 12.00 Rs 8.7 51.1% 1837 crs for FY 18-19 RsRs 10.50 56.7% the year 10.5 compared to FY 17-18 Rs 8.70 Rs 12 53.0% Rs. 17
Slide 62: Thank you
Classification: Internal Classification: Internal Thank you Classification: Internal Classification: Internal