Century Plyboards (india) Ltd. · NSE:CENTURYPLY
Century Plyboards (india) — Investor Presentation (September 2016)
58 slides from Century Plyboards (india)'s investor presentation, September 2016
Slide 1: Past, Present and Future
PAST, PRESENT AND FUTURE.
Slide 2: Disclaimer
DISCLAIMER This presentation and the accompanying slides (the “Presentation”), which have been prepared by Century Plyboards (I) Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any sec
Slide 3: A Brief History of CenturyPly (contents)
A BRIEF HISTORY OF CENTURYPLY AN OVERVIEW OF OUR PRESENT-DAY CAPABILITY EARNING DISTRIBUTION CAPITAL EVOLUTION OUR LEADERSHIP OUR MANAGEMENT TEAM THE JOURNEY OF BRAND CENTURYPLY OUR BRANDS OlOIN | eA! a) Rl/wihy)]— OUR LOCATIONS = oO ADOPTING THE BEST HR AND IT PRACTICES = = AN OVERVIEW OF THE INDUS
Slide 4: A Brief History of CenturyPly
A BRIEF HISTORY OF CENTURYPLY
Slide 5: Company history timeline 2005-2016
2016: (1) Launch of New Age Products — Zykron and Starke (Wood Polymer Composite and Cement Fibre Boards) (2) Set up Particle Board Unit at Chennai (3) Construction of MDF unit at Hoshiarpur (Punjab) starts 2015: (1) Century Doors launched — flush, panel moulded and decorative ranges (2) Set up of L
Slide 6: An Overview of Our Present-Day Capability
AN OVERVIEW OF OUR PRESENT-DAY CAPABILITY
Slide 7: CenturyPly is India's Leading Integrated Wood Panel Company
CENTURYPLY IS INDIA’S LEADING INTEGRATED WOOD PANEL COMPANY Our expertise extends to Controls 25% of the the following products organized plywood market Plywood Strategically located manufacturing awe per Has timber peeling Prelam Kolkata (Eastern part of India) capacity of 21 0,000 CBM MDF Kandl: t
Slide 8: Laminates, CFS and future businesses
Laminates — is among the top 3 laminate producers in India — is the fastest growing laminate brand in the country and we are aiming for leadership position soon — has a fully integrated plant near Kolkata — has a production capacity of 4.8 million sheets annually - focuses on niche segments and valu
Slide 9: Earning Distribution
EARNING DISTRIBUTION
Slide 10: Segment Contribution in 2015-16
Segment Contribution in 2015-16 TURNOVER 2000 hes ua 1500 re 3.40 Bz 299.56 fA sol cr ae 1000 182.27 210.85 966.24 a ne 500 0 2011-12 2012-13 2013-14 2014-15 2015-16 MPLYWOOD MLAMINATES MLOGISTICS MOTHERS SEGMENT PROFIT 300 250 200 191 100 ea 2159 7186 ‘32 y i 0 291 50 2011-12 2012-13 EBIDTA 350.00
Slide 11: Capital Evolution
CAPITAL EVOLUTION
Slide 12: Capital evolution events
DATE 1982-1993 31.03.1994 05.01.1996 27.05.1997 27.05.2004 30.07.2004 19.02.2007 16.04.2008 02.05.2008 Event No. FV Rs. Issue Rs. Initial shares to promoters 240,100 10 10 Merger of Ramkrishna Veneer 93,110 10 - Bonus issue 3 for 1 held 999,630 10 - Maiden public issue Rs. 10 premium 3,682,040 10 20
Slide 13: Our Leadership
OUR LEADERSHIP
Slide 14: Executive Chairman, CEO and Managing Directors
Mr. Sajjan Bhajanka - our Executive Chairman and one of our founder members - is a graduate with over 45 years of industry experience. He is directly responsible for the overall strategic direction, production, finance and treasury. He is also the president of the Federation of Indian Plywood and Pa
Slide 15: Managing Director, Vice Chairman and Director
Mr. Vishnu Khemani is also a Managing Director and is a graduate with 30 years of industry experience. He heads timber procurement and the South India operations of our Plywood division. He holds 8.37% of the total share holding. Mr. Hari Prasad Agarwal is our Vice Chairman. He is a Graduate with ov
Slide 16: Our Management Team
OUR MANAGEMENT TEAM
Slide 17: Management team: technical, finance, international, decoratives
BeeLEe Mr Ajay Baldawa is our Executive Director (Technical). He is an M.Tech from IIT with over 30 years of experience in the plywood industry. He takes care of all technical matters and is a member of the BIS Technical Committee for plywood. Mr. Arun Julasaria is the CFO. He is an FCA, FCS with va
Slide 18: Management team: branding, HR, plywood business
Mr. Amit Gope is our GM (Branding). He has an MBA in Marketing from XIMB with over 21 years of experience including 7 years with brands such as Vodafone, Airtel and Uninor. He handles all brand and communication related activities. Mr. Sugata Halder is our GM (Human Resources). He has a PGDM in Huma
Slide 19: The Journey of Brand CenturyPly
THE JOURNEY OF BRAND CENTURYPLY
Slide 20: Brand Building
BRAND BUILDING #3 Brand-building is taken with utmost seriousness € From the early days, association with stars and films was an integral part of this #% We have also associated with stars such as Shah Rukh Khan and Amitabh Bachchan through movies like Billu Barber, My Name is Khan and Aarakshan € I
Slide 21: Our Brands
OUR BRANDS
Slide 22: Our brands
ia ® ® ‘ ® CENTURYPLY CENTURYLAMINATES © GENTURYVENEERS a ® “ ® y ® CENTURYPRELAM CENTURYINIDF CENTURYIVIDF oo } CENTURYEXTERIA CENTURYTEAK CENTURYFACEVENEERS — —————— a zykron STARKE sini FIBRE CEMENT BOARDS 6 PLANKS PVC SHEETS puywoon HAMESHA TAIYYAR CENTURYDOORS:
Slide 23: Our Locations
OUR LOCATIONS
Slide 24: Domestic Network
DOMESTIC NETWORK MANUFACTURING UNIT BRANCH OFFICE REGIONAL DISTRIBUTION CENTRE(RDC) CONTAINER FREIGHT STATION DISTRIBUTION NETWORK* Manufacturing Units Ply* Laminates CFS *Includes one subsidiary (51%) unit # Ply Myanmar is 100% subsidiary Branch Offices / Depot 35 Regional Dist. Centre 6 Distributi
Slide 25: International locations
Slide 26: Adopting the Best HR and IT Practices
ADOPTING THE BEST HR AND IT PRACTICES
Slide 27: Software That Keeps Us Ahead of the Curve
SOFTWARE THAT KEEPS US AH EAD OF THE CU RVE Decorative Veneers INSPECTION PORTAL LAUNCH SAP HANA - the latest in business analytics & FIRST implementation of SAP HANA in Eastern India It's on a 5-years scalable, Opex model with a world-class cloud data centre provider at Mumbai Implemented across 50
Slide 28: Discovering, Developing and Retaining Talent
DISCOVERING, DEVELOPING AND RETAINING TALENT & & PMS & INCREMENT PROCESS : PMS & Increment processes were closed in record time, and the announcements were made by June end CENTURION EXPRESS: The pilot launch of Employee Self-Service portal, called Centurion Express, was carried out in Kolkata and H
Slide 29: An Overview of the Industry Today
AN OVERVIEW OF THE INDUSTRY TODAY
Slide 30: 50% Controlled by CenturyPly and Greenply
50% CONTROLLED BY CENTURYPLY AND GREENPLY 30% (ORGANIZED) 50% CONTROLLED BY LOCAL PLAYERS
Slide 31: Growth and Its Drivers
GROWTH AND ITS DRIVERS ! GROWTH 25-30% 10% OVERALL INDUSTRY ORGANIZED SECTOR FACTORS DRIVING GROWTH Growing real estate and construction sector New government's emphasis on infrastructure and housing Rising per capita income and growing employment opportunities Urbanization and government proposal o
Slide 32: Advantages of the Organized Sector
ADVANTAGES OF THE ORGANIZED SECTOR & Organized sector share has grown from 10% (a decade back) to 30% a Excise duty of 16% which was reduced to 8% in 2006 and now pegged at 12% a Migration from sales tax to VAT system, the credit for state taxes is available in subsequent transactions a Organized se
Slide 33: GST - Levelling the Playing Field
GST— LEVELLING THE PLAYING FIELD & GST will address the complexities and inefficiencies of current indirect tax framework through robust technology platform. Post GST, clandestine business will be almost impossible & GST will put both the organized and the unorganized sector at a level playing field
Slide 34: Ready to Take Advantage of the Change
READY TO TAKE ADVANTAGE OF THE CHANGE Our position in the market & Pan India presence with strategic locations of six manufacturing facilities across all parts of India (North, South, East, West, North-East, and Central) Robust pan India distribution network of 35 branches with adequate warehousing
Slide 35: The Laminates Industry
THE LAMINATES INDUSTRY & & & & & & Laminates are used to provide an aesthetic look to plywood Business synergy - Plywood and Laminates have same customer base Growth drivers for Laminates are the same as Plywood The Laminates market is organized and semi-organized Raw Material for Laminates are pape
Slide 36: Ready for Growth
READY FOR GROWTH Our position in the market & CenturyPly is the third largest producer of Laminates in India & Green Lam, Merino and Royal Touch are peers & We have augmented our capacity from 2.4 to 4.8 million sheets “+ Higher realisation for laminates sales in both domestic and international mark
Slide 37: Tapping into Logistics with CFS
TAPPING INTO LOGISTICS WITH CFS & First privately owned CFS of Eastern ¢% Entitled to 10 years Tax benefit U/s India (at Kolkata Port) 801A of the Income Tax Act & Two CFS covering 1 lac square meter ¢ Operational since 2008-09 area « High EBIDTA business with very low Complete new facilities with r
Slide 38: Mapping Our Future
MAPPING OUR FUTURE
Slide 39: Our Ambition Is to Maintain Our Position as India's Leading Wood Panel Company
OUR AMBITION IS TO MAINTAIN OUR POSITION AS INDIA’S LEADING WOOD PANEL COMPANY. Raw material Focus on new linkages market segment «5 Raw material availability & cost - crucial $3 Now focusing on untapped market for long term sustainability of business. segments in smaller cities Evaluating linkage o
Slide 40: Entry in MDF and Exploring New Age Products
Entry in MDF Exploring new age business products # Decision taken to set up MDF Entering into futuristic categories such manufacturing facility in Punjab as PVC sheets, Fibre Cement Board and flooring = Overall capex estimated at Rs. 444 Crores (380 Crores MDF, 64 Crores Plywood) & ~=To become fully
Slide 41: Our CSR Initiatives
OUR CSR INITIATIVES
Slide 42: CSR initiatives
o S oc oo & Supporting 30,000 students every year through Friends of Tribal Society CenturyPly Heroes program is an initiative to bring a smile to the faces of our most important patrons — the carpenters Programme ‘Bandhan’, through which Century Laminates has provided carpenters a better gratificat
Slide 43: Financial Appendices
FINANCIAL APPENDICES
Slide 44: Balance Sheet
BALANCE SHEET Particulars Rs. Crores Jun'2016 Net Worth (Including Share Capital -22.25 Cr) Long Term Debt Short Term Debt (Bank CC+Related party loan) Total Liabilities Fixed Assets Capital Work in Progress Investments Current Assets - Finished Goods Inventory - Raw Material Inventory -Sundry Debto
Slide 45: Key Ratios
KEY RATIOS Key Ratios 2013-14 2014-15 2015-16 Q1 16-17 (Annualized) Return on Equity (ROE) (%) 24.74% 44.42% 36.68% 31.41% Return on Capital Employed (ROCE) (%) 16.59% 26.68% 26.09% 23.99% ROCE - (Excluding MDF & PB Projects)(%) 16.59% 26.68% 27.40% 26.71% Total Outside Liabilities to Net Worth (TOL
Slide 46: Working Capital Cycle
WORKING CAPITAL CYCLE Ratios Net Sales Debtor Net Sales Raw Material Inventory Debtor Days (A) Raw Material Inventory Days (B) Net Sales Finished Goods Inventory Finished Goods Inventory Days (C) Net Sales Trade Payables Buyers Credit for Raw Materials Total Payables Cash Conversion Cycle (days) = A
Slide 47: Profit & Loss - Summary
PROFIT & LOSS - SUMMARY Annual Growth% Growth % Quarter Growth% Growth % 2013-14 2014-15 2015-16 14Vs15 15Vs16 Mar'l6 Jun'15 Jun'16 QoQ YoY A1 Net Turnover In Rs Cr 1,276.04 1,552.47 1,646.86 21.7% 6.1% 451.24 366.60 403.62 -10.6% 10.1% A Add: Other Operating Incomes InRsCr_— 7.931234 1160349294 NB
Slide 48: Plywood - Volume Details
PLYWOOD — VOLUME DETAILS Particulars Annual Growth% Growth % Quarter Growth% Growth% 2013-14 2014-15 2015-16 14Vs15 15 Vs 16 , Jun'15 Jun'16 QoQ YoY A VOLUME A1_ -Plywood CBM 1,72,452 1,92,249 — 1,89,117 11.5% -1.6% 50,725 41,367 46,533 -8.3% 12.5% A2_ -Deco Ply CBM 5,379 6,217 8,722 15.6% 40.3% 2,3
Slide 49: Plywood - Financial Details
PLYWOOD — FINANCIAL DETAILS SI Particulars Growth% Growth % Quarter Growth% Growth % 2015-16 14Vs15 15Vs16 Mar'lé Jun'I5 Jun'l6 QoQ YoY A1 Net Turnover In Rs Cr 964.84 1,147.08 1,173.51 18.9% 2.3% 32069 25659 286.55 -10.6% 11.7% A3 Total Income In Rs Cr 966.24 1,152.31 1,175.68 19.3% 2.0% 321.24 257
Slide 50: Laminates - Volume Details
LAMINATES - VOLUME DETAILS SI Particulars Annual Growth% Growth % Quarter Growth% Growth % 2013-14 2014-15 2015-16 14Vs15 15Vs16 Mar'lé Jun'l5 Jun'16 QoQ YoY A_ Volume A2_- Laminates - Export Nos. 866,369 —10,44,218 12,71,465 20.5% 21.8% 3,66,504 2,73,758 2,45,511 -33.0% -10.3% Total Laminates Nos.
Slide 51: Laminates - Financial Details
LAMINATES - FINANCIAL DETAILS SI Particulars Annual Growth% Growth % Quarter Growth% Growth % 2013-14 2014-15 2015-16 14Vs15 15Vs16 Mar'lé Jun'l5 Jun'l6 QoQ YoY A1 Net Turnover In Rs Cr 236.69 293.54 335.30 24.0% 14.2% 92.26 76.84 79.49 -13.8% 3.4% A3 Total Income In Rs Cr 242.47 299.56 343.40 23.5%
Slide 52: Logistics (CFS) - Volume Details
LOGISTICS (CFS) - VOLUME DETAILS Annual Growth% Growth % Quarter Growth% Growth % FY 2013-14 FY 2014-15FY 2015-16 14Vs15 15Vs16 Mar'lé Jun'l5 Jun'l6 QoQ YoY B_ Net Sales Value Cc Average
Slide 53: Logistics (CFS) - Financial Details
LOGISTICS (CFS) - FINANCIAL DETAILS Annual Growth% Growth % Quarter Growth% Growth % 2013-14 2014-15 2015-16 14Vs15 15Vs16 Mar'lé Jun'l5 Jun'l6 QoQ YoY Al Net Turnover In Rs Cr 54.31 70.28 83.73 29.4% 19.1% 23.77 17.19 23.26 -2.1% 35.3% A3 Total lncome In Rs Cr 55.05 71.35 84.90 29.6% 19.0% 24.14 17
Slide 54: Others - Financial Details
OTHERS - FINANCIAL DETAILS SI Particulars Annual Growth% Growth % Quarter Growth% Growth % 2013-14 2014-15 2015-16 14Vs15 15Vs16 Mar'lé Jun'l5 Jun'16 QoQ YoY A1_ Net Turnover In Rs Cr 20.20 41.57 54.32 105.8% 30.7% 14.52 15.99 14.32 -1.4% -10.4% A3 Total Income In Rs Cr 20.21 41.59 54.47 105.8% 31.0
Slide 55: Capex Details
CAPEX DETAILS Particulars Budgeted Cost
Slide 56: Term Loan Projection
TERM LOAN PROJECTION Rs. Crores Particulars 9M-16-17 2017-18 2019-20 2020-21 2021-22 Opening - ECB 55.86 61.03 67.92 104.97 84.86 64.75 44.64 30.00 - Buyer's Credit (MDF Capex) = = = 150.00 150.00 150.00 150.00 = - Rupee Term Loan 62.87 39.34 67.19 106.84 129.83 81.16 32.49 133.82 Total 118.73 100.3
Slide 57: Forex Exposure
FOREX EXPOSURE Particulars 31.03.2014 31.03.2015 31.03.2016 30.06.2016 30th June Vs 31st M 2015 Vs 2016 Diff Diff % Diff Diff % Average Forex Booking Rates @ Rs. - USD 57.83 61.79 64.17 66.92 2.75 5% 2.38 4% - HKD 8.04 - - - - - - - - Euro 80.00 7749 71.99 75.74 3.75 5% (5.50) -7% Forex Reinstatemen
Slide 58: Let's Talk
LET’S TALK
Century Plyboards (India) — Investor Presentation (September 2016) on 6ix