Asian Granito India Limited · NSE:ASIANTILES

Asian Granito India — Investor Presentation (October 2015)

63 slides from Asian Granito India's investor presentation, Oct 28, 2015

  1. Slide 1: Analyst meet intimation letter to stock exchanges

    Asian Granito lndia Ltd. Regd. & Corp. Oftice: 202, Dev Arq Opp. Iskcon Temple, S. G. Highway, Ahmedabad-380015. Gujarat, India. Tel.: +91- 79 66!.25500/698, F ax..: +91 7 I 66125600/ 6605a67 2 info@aglasiangranito.com . www.aglasiangranito.com Date: 28.10.2015 To, To, Corporate Relations Department

  2. Slide 2: Asian Granito India Ltd.

    | Aslan Granito India Ltd. | — 2 Beautiful Life »— Asian Granito India Ltd.

  3. Slide 3: Industry Overview

    Asian Granito India Ltd. — Beautiful Life =—_—

  4. Slide 4: Global Tiles Market

    Global Tiles Market World tile production reached 12.41 billion sq.m in CY2014, up by 3.6% from 11.97 billion sq.m in CY2013 World tile consumption reached 12.10 billion sq.m in CY2014, up by 4.2% from 11.60 billion sq.m in CY2013 Asia’s share of total global demand reached 67.5%, rising to 8.2 bill

  5. Slide 5: Global Tiles Market

    Global Tiles Market  Top-5 tile producing, consuming & exporting countries in CY14 Country Production % on 2014 % var. Country Consumption % on 2014 % var. (Sq.m world 14/13 (Sq.m Mill.) world 14/13 Mill.) production consumption China 6,000 48.4% 5.3% China 4,894 40.5% 7.4% Brazil 903 7.3% 3.7% Bra

  6. Slide 6: Indian Tiles Market

    Indian Tiles Market And demand too grew by 12% CAGR over FY07-14 Source: World Ceramic Review, Macquarie Research

  7. Slide 7: Indian Tiles Market

    Indian Tiles Market In rural India, tiles still forms a small component …while in urban India, the pie share of tiles is of flooring material becoming bigger Source: World Ceramic Review, Macquarie Research

  8. Slide 8: Indian Tiles Market

    Indian Tiles Market Share of organised industry has increased by ~900bps over FY07-14 Break up of Tiles Demand Replacement; 15% Commercial; 15% Residential; 70% Source: Macquarie Research

  9. Slide 9: Demand Drivers…1

    Demand Drivers…1 Lowest per capita Increasing Rising income & consumption of tiles Urbanization aspirations • India’s per capita • UN expects urbanisation • As income levels rise consumption of tiles is at in India to rise to 50% by consumers tend to 0.5 sqm viz-a-viz China’s 2050 from ~32% in 2012

  10. Slide 10: Demand Drivers…2

    Demand Drivers…2 Government’s policies for housing, Growing replacement market sanitation and building smart cities • Technological advancements have • Smart Cities - New city creation could create office and housing demand strengthened the aesthetic appeal of tiles, • “Housing for all by 2022” – an

  11. Slide 11: Indian Tiles Market vs AGL

    Indian Tiles Market vs AGL Industry Status AGL Status 0% GVT GVT 10% 16% CERAMIC 39% CERAMIC 47% PVT 43% PVT 45%

  12. Slide 12: Company Overview

    Asian Granito India Ltd. —+ Beautiful Life =—_

  13. Slide 13: Company Overview

    Company Overview Established in 2000 by Mr Kamlesh Patel and Mr. Mukesh Patel, Asian Granito India Limited (AGL) is one of the top four Indian ceramic companies Engaged in the business of manufacturing, and trading of ceramic wall, floor & Vitrified tiles AND Marble & Quartz. Headquartered in Gujara

  14. Slide 14: Management Profile

    Management Profile Mr. Kamlesh Patel - Chairman • Has more than 20 years of experience in the Tile industry • In 1994, promoted Kediya Cera Tiles Pvt. Ltd. • In 2000, promoted Asian Tiles Ltd • Director of ICCTAS [Tiles Association] • Holds BBA Degree from Sardar Patel University • An astute marketi

  15. Slide 15: AGL's Focus Areas

    AGL’s Focus Areas r 5 2 Product innovation Ss aa. Key Technological advancement Foc u S Premiumization — aa Areas Contract manufacturing / Outsourcing Strengthening brand efficiency Extend marketing presence In all population clusters in excess of 20,000 people Increase distribution network of deale

  16. Slide 16: Sales Mix – FY15

    Sales Mix – FY15 3.71% 11.99% 35% 65% 84.30% Institutional Retail Tiles Marble & Quartz Exports

  17. Slide 17: 8 Ultra Modern Manufacturing Units

    8 Ultra Modern Manufacturing Units

  18. Slide 18: Production Capacity

    Production Capacity Daily Production – 8,000 sq. mtrs. Annual Production – 26,40,000 sq. mtrs.

  19. Slide 19: Production Capacity

    Production Capacity Daily Production – 14,000 sq. mtrs. Annual Production – 46,20,000 sq. mtrs.

  20. Slide 20: Production Capacity

    Production Capacity Daily Production – 10,000 sq. mtrs. Annual Production – 33,00,000 sq. Mtrs Production Capacity- GRANDURA Daily Production – 9,000 sq. mtrs. Annual Production – 29,70,000 sq. mtrs. .

  21. Slide 21: Production Capacity

    Production Capacity Daily Production – 10,000 sq. mtrs. Annual Production – 33,30,000 sq. mtrs.

  22. Slide 22: Production Capacity

    Production Capacity Daily Production – 6,000 sq. mtrs. Annual Production – 19,80,000 sq. mtrs.

  23. Slide 23: Production Capacity

    Production Capacity Daily Production – 8,000 sq. mtrs. Annual Production – 26,40,000 sq. mtrs.

  24. Slide 24: Production Capacity

    Production Capacity - Vitrified Daily Production – 10,000 sq. mtrs. Annual Production – 33,30,000 sq. mtrs. Production Capacity – Double Charge Daily Production – 11,000 sq. mtrs. Annual Production – 36,30,000 sq. mtrs. Production Capacity – Glazed Vitrified Tiles Daily Production – 5,000 sq. mtrs.

  25. Slide 25: Production Capacity

    Production Capacity Daily Marble Stone Production – 3,000 sq. mtrs. Annual Marble Stone Production – 9,90,000 sq. mtrs. Daily Quartz Stone Production – 1,000 sq. mtrs. Annual Quartz Stone Production – 3,30,000 sq. mtrs.

  26. Slide 26: Manufacturing Capacity

    Manufacturing Capacity PRODUCTION CAPACITY ( PER SQ.MTR. ) PER ANNUM* PER DAY VITRIFIED (DALPUR) 46,20,000 14,000 WALL (DALPUR) 33,00,000 10,000 GRANDURA (DALPUR) 29,70,000 9000 MARBLE (DALPUR) 13,20,000 4,000 CERAMIC (IDAR) 26,40,000 8,000 Total Production Capacity 1,48,50,000 45,000 PRODUCTION CAP

  27. Slide 27: Product Innovation

    & AGL TILES WORLD Asian Granito India Ltd. —+ Beautiful Life ——_— Product Innovation

  28. Slide 28: Product Range

    Product Range Ceramic Ceramic Wall Ceramic Parking Tiles Vitrified Floor Porcellanto Composite Quartz Stone Digital Marble

  29. Slide 29: New product introductions: Carrara White, XXL, Hardstone

    st 1 to Introduce WORLD'S WHITEST - CARARRA WHITE 1 st Double Charge Vitrified tiles to Introduce LARGE FORMAT Wall & Vitrified tiles st to Introduce GRESTEK XXL Introduced 16MM Thick Heavy Duty Large format tiles Vitrified tiles GRESTEK HARDSTONE

  30. Slide 30: Launch of New Products in FY15 & FY16

    Launch of New Products in FY15 & FY16 Product Name Size in mm CARARRA White (World’s Whitest Tile – in unglazed large 800x800 format Double Charge) XXL – Polished Glazed Vitrified Tile 800x1200 Polished Vitrified Tile (Double Charge) & Big Crack Stone (new 800X1200 &1000X1000 design introduced first

  31. Slide 31: Change in product mix – Tile Segment

    Change in product mix – Tile Segment FY15 FY16-17 onwards 42% 35% 58% 65% Vitrified Ceramics Vitrified Ceramics

  32. Slide 32: Move towards value addition

    Move towards value addition FY15 FY16-17 onwards 46% 49% 51% 54% High End Low End High End Low end

  33. Slide 33: Sources Mix

    Sources Mix FY15 FY16 47% 48% 53% 52% Own Outsourcing Own Outsourcing

  34. Slide 34: Marble and Quartz

    & AGL TILES WORLD Asian Granito India Ltd. —+ Beautiful Life ——_— Marble and Quartz

  35. Slide 35: Marble and Quartz – Industry Overview

    Marble and Quartz – Industry Overview 60,000 350 50,000 300 50,000 300 250 40,000 250 40,000 35,000 200 Rs. crore Rs. crore 200 30,000 India Global 150 130 AGL 20,000 115 100 100 10,000 50 0 0 FY13 FY14 FY15 FY13 FY14 FY 15

  36. Slide 36: Marble and Quartz – Industry Market Share

    Marble and Quartz – Industry Market Share Market Share 18% 2% 50% Europe US 30% India Rest of the World

  37. Slide 37: Marble and Quartz – Contribution and Realization

    Marble and Quartz – Contribution and Realization The marble and quartz division constituted 12% of total revenue in FY15 It is expected to constitute approximately 14%-15% of total revenue in FY16 The company enjoys a 43% market share in Composite Marble & Quartz Stone market Realisations in Composi

  38. Slide 38: Key Strengths

    & AGL TILES WORLD Asian Granito India Ltd. —+ Beautiful Life ——_— Key Strengths

  39. Slide 39: Focus on Retail Strategy

    Focus on Retail Strategy Increased Dealer Network from 420 to 975 (2014-15) Increased Touch points including sub-dealers from 2,800 to 4,000 (2014-15) Initiated market mapping for towns having population more than 20,000 Increased AGL exclusive showrooms from 50 to 75 Introduced concept of AGL Digit

  40. Slide 40: Key Strengths

    Key Strengths 1 2 3 Production Capacity of All India Market Reach; Located in ceramic hub more then 90,000 m² Distribution Reach: - Morbi per day (incldg. Direct Dealers / Sub- outsourcing) dealers: 4000 4 5 6 1st to have 8 Wide Product Range digital colour machines - Ceramic Floor, Digital Manageme

  41. Slide 41: Presence in

    Presence in NORTH AMERICA | EUROPE | AFRICA | UAE | AUSTRALIA | EAST ASIA | MIDDLE EAST ASIA

  42. Slide 42: Global presence

    .\Ja57 Global presence ¢ Aglobal network across 50 countries. « Participation in top Intemational exhibitions as BIG-5 Dubai, DECOREX South Africa, Coverings USA. « Opening a showroom in South Africa. big 5 Dub

  43. Slide 43: Strong National Presence

    am C ANG® t Strong National Presence Ne + 4000 Dealer and Sub Dealer Network Excellent & Distinctive Marketing Initiatives + 18 OMces & 16 Display centers across India Print & Radio Ads. + 75+ AGL TILE WORLD EXCLUSIVE showroom across India Association with [ID AQNARD VANBENG PRESENCE ACETECH, STONE

  44. Slide 44: Factories, Corporate Office and Regional Offices

    8 Factories 1 Corporate Office 18 Regional office 75+ Tile World Exclusive Showrooms 8 Depots

  45. Slide 45: Clients

    & THE LEELA ADLABS adani » Q iy © Reliane airtel L&T Infotech tod imited FP"Y ribet Reffance cA eee

  46. Slide 46: Financial Overview

    & AGL TILES WORLD Asian Granito India Ltd. — Beautiful Life =—_— Financial Overview

  47. Slide 47: Gross Revenue growth over the years

    Gross Revenue growth over the years 1000.00 8% Turnover in Rs. crore 907.00 6% 900.00 13% 840.00 796.00 800.00 30% 703.00 700.00 26% 600.00 541.98 22% 500.00 46% 431.30 400.00 353.28 27% 300.00 35% 241.34 79% 190.10 200.00 323% 140.65 100.00 392% 28% 236% 78.62 0.88 4.33 5.53 18.60 0.00 2000- 2001-

  48. Slide 48: Debt Management

    Debt Management Working Capital Cycle Leverage Ratio 180 12 11.25 159 144 9.52 150 136 138 10 8.09 120 112 8 7.31 102 6.06 90 6 60 4 30 2 0 0 FY11 FY12 FY13 FY14 FY15 H1FY16 FY11 FY12 FY13 FY14 FY15

  49. Slide 49: Return Ratios

    Return Ratios ROCE ROE 12 10 9 10.2 9.8 10 9.1 8 7.5 8.1 8.3 6.5 8 6 5 4.9 6 4 4 2 2 0 0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 ROCE will improve substantially from 9% and is almost set to double

  50. Slide 50: Financial of the Company: Quarterly Result

    Financial of the Company : Quarterly Result Rs. In Crore Particulars 2nd Quarter 2nd Quarter 1st Quarter July-Sep 15 July-Sep 14 April-June 15 Net Sales 235.40 214.89 192.70 Cash Accruals 9.79 10.44 8.18 PBT 5.89 5.68 4.71 PAT 4.50 3.95 3.32 Share Capital 22.58 22.58 22.58

  51. Slide 51: Financial of the Company: Half Yearly Result

    Financial of the Company : Half Yearly Result Rs. In Crore Particulars Half Yearly Half Yearly April-Sep 15 April-Sep 14 Net Sales 428.10 390.87 Cash Accruals 17.97 20.20 PBT 10.60 10.47 PAT 7.82 7.30 Share Capital 22.58 22.58 Reserve 279.64 265.06 Total Net Worth 302.22 287.65

  52. Slide 52: Sales and PAT – Q2FY15 and Q2FY16

    Sales and PAT – Q2FY15 and Q2FY16 Net Sales PAT 240 4.6 235 235.4 4.5 4.5 4.4 230 4.3 225 Rs. crore Rs. crore 4.2 220 4.1 215 4 214.89 3.95 3.9 210 3.8 205 3.7 200 3.6 Q2FY15 Q2FY16 Q2FY15 Q2FY16

  53. Slide 53: Sales and PAT – H1FY15 and H1FY16

    Sales and PAT – H1FY15 and H1FY16 Net Sales PAT 440 7.90 7.80 7.82 430 428.1 7.70 420 7.60 Rs. crore Rs. crore 410 7.50 7.40 400 7.30 7.30 390 390.87 7.20 380 7.10 370 7.00 H1FY 15 H1FY16 H1FY15 H1FY16

  54. Slide 54: Tile Volume Data

    Tile Volume Data 120% 100% 12% 11% 12% 16% 4% 6% 80% 12% 13% 39% 34% GVT 60% 33% Double Charge 32% PVT 40% Ceramic 46% 49% 20% 43% 39% 0% 2012-13 2013-14 2014-15 H1FY16

  55. Slide 55: Amalgamation of AGL & ACL

    Amalgamation of AGL & ACL Pooling of Interest Method of accounting Artistique 99.99% Kediya Ceramic Pvt Partnership Ceramics Ltd 70% 94.20% Crystal Amazon Ceramics Ceramics Industries Pvt Limited Ltd

  56. Slide 56: Crystal Ceramics – Natural Gas Strength

    Crystal Ceramics – Natural Gas Strength Natural Gas Rate (Rs.) Rate in $ (per MMBTU) At Present 14.97 4.66 18% reduction in rate After Reduction 12.27 3.82 Production Price per Sq.Ft. (Rs.) At Present 4.00 After Reduction 3.28 Price Saving per Sq. Ft. 0.72 LNG rate Per SCM is Rs.30.18 and Natural Ga

  57. Slide 57: CSR Activities & Recognitions

    CSR Activities & Recognitions

  58. Slide 58: CSR activities

    Akshay Patra Foundation Educational Institute Blood Donate Camp

  59. Slide 59: Recognition and Certifications

    lead the change \7 Recognition and Certifications Tie Hoosen Ths MEMBER OF Mm Am @ CE BRANDS ‘ia INSTITUTE St me ‘OF INDIAN INTERIOR DESIGNERS:

  60. Slide 60: Energy Conservation Award from Govt. of India

    ENERGY CONSERVATION AWARD FROM GOVT. OF INDIA g asa pol tet yeeP aout weer ag Fer 7y serena ari ht Ren eb 9 rer ah ag octal raft & at 2012 @ fay cael aeons Hever BPEL arref oftrrs afte sftsar feo fare aravaia (qRIa) face eee sare fra aT @ aig Recht 14 fear, 2012 Ret

  61. Slide 61: Certificate of Merit for Export Achievement

    CERTIFICATE OF MERIT FOR EXPORT ACHIEVEMENT FROM CAPEXIL [cHEmicat & ALLIED PRODUCT EXPORT PROMOTION COUNCIL] CAPEX Wo Oiront Pas Slip ed Certificate of Merit Presented to M/S. ASIAN GRANITO INDIA LIMITED, AHMEDABAD. in recognition of their export achievement in respect of Ceramic Tiles for the year

  62. Slide 62: Disclaimer

    Disclaimer • The information contained herein has been prepared to assist prospective investors in making their own evaluation of Asian Granito India Limited (hereinafter ‘the Company’) and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor m

  63. Slide 63: Thank You

    Thank You Mr. Himanshu Shah (GM – Finance, Accounts & Commercial) Asian Granito India Ltd. Ph: +91-079-66125515 Email: ca@aglasiangranito.com Mr. Anand Lalla / Mr. Parin Narichania Concept Investor Relations Mo: +91 7506051178 / 9930025733 Email: anand@conceptir.com / parin@conceptir.com

Asian Granito India — Investor Presentation (October 2015) on 6ix