Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q4 FY2023 Earnings Presentation
26 slides from Asian Paints's earnings presentation, May 11, 2023
Slide 1: Exchange filing cover letter for investor presentation
APL/SEC/32/2023-24/10 11th May, 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 S
Slide 2: Investor Conference Q4 - FY2023 Results
oe asianpaints Investor Conference Q4 - FY2023 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!
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 value growth in Q4 – led by volume with benefit of price increases now wearing off Decorative Business (India) Full year double-digit delivery despite flattish Q3 3 Yr CAGR 22.8% 3 Yr CAGR 25.6% Q4 FY'22 Q4 FY'23 16% 21% 8% 13% Volume Gr% Value Gr% Fastest Growth in 3 Yr CAGR 20.7% Indu
Slide 6: Consistent double-digit volume growth trend on 3 yr CAGR basis
Consistent double-digit volume growth trend on 3 yr CAGR basis Decorative Business (India) Volume Index Volume Index *20.3% *20.2% *20.3% *20.2% *20.1% *17.7% *20.1% *16.0% *22.8%*16.0% *17.7% 200 *15.8% *15.8% *15.2% *15.2% 150 100 50 - Q1 FY21 Q2 FY21 Q1 FY21 Q3 FY21 Q2 FY21 Q4 FY21Q4Q1 Q3 FY21 FY
Slide 7: Growth Drivers – Well Entrenched
Growth Drivers – Well Entrenched Decorative Business (India) ❑ Double-digit volume growth across rural & ❑ Altering the service paradigm through our urban markets in Q4; slight edge in T1/ T2 Safe Painting Service (SPS) & Trusted ― similar range of double-digit 3 yr CAGR Contractor Service (TCS) acr
Slide 8: COLOUR NEXT: 2 Decades of Colour Forecasting
COLOUR NEXT: 2 Decades of Colour Forecasting SILVER: Colour of the Year Gothilicious Edge of the Forest Shroom Sleep Sense
Slide 9: Our Recently Launched Media & Digital Campaigns
Our Recently Launched Media & Digital Campaigns
Slide 10: Sizing-up Our Home Décor Offerings
Sizing-up Our Home Décor Offerings Kitchen, Kitchen Hardware Bath & Sanitary Designer and General Tiles Wardrobes and Vanities Fabric and Furnishing & Components Designer Wall Paper Furniture Rugs Lighting Solutions uPVC Windows and Doors Beautiful Home Stores: 42 stores now functional Beautiful Hom
Slide 11: Partnering to Deliver Beautiful Homes through 1st of its Kind Customer Experience
Partnering to Deliver Beautiful Homes through 1st of its Kind Customer Experience Inspiring through ‘WoW’ Looks, Selection Enhanced by Purchase & Aspirational Stories Visualization Execution
Slide 12: Focused on Strengthening Kitchen & Bath Business
Focused on Strengthening Kitchen & Bath Business Kitchen Business Revenue Home Décor Business 6% 15% ❑ Continued to be impacted by slow retail demand ❑ Focusing on expanding reach & driving 21% 10% 425 406 premiumization 98 96 ❑ Working towards building scale to enable Kitchen Business Bath Business
Slide 13: Adding to our Story of Beautiful Homes
Adding to our Story of Beautiful Homes… Home Décor Business White Teak – Offering Decorative & Designer Lighting solutions ❑ Net Sales of Rs. 35.8 crs in Q4; Full year sales at Rs. 108.5 crs - 89% growth ❑ Gaining from increasing retail footprint & synergies with Beautiful Homes Weatherseal (uPVC Wi
Slide 14: International Business
Nepal Bangladesh Solomon Islands indonesia -@ Bahrain Qatar Oman BOE Sri Lanka Ethiopia n Ww {)) £ Za) > faa) To) Cc 2 Y Oo Cc i wo PY = asianpaints 3 Sp asianpaints 4 Semaeoe scibS 6 GEE 7 Capco
Slide 15: Growth in the Face of Challenges
Growth in the Face of Challenges ❑ Q4: De-growth of 2.7% in INR terms; Double-digit constant Revenue currency growth of ~10% International Business 7% ― Strong growth in Africa & Middle East Q4 FY'23 FY'23 3,084 ― Challenging business conditions persisted in Asia 6% ▪ Continued contraction of busine
Slide 16: Industrial Business: Hitting New Milestones
Hitting New Milestones Revenue PPGAP 27% ❑ Double-digit growth in FY23; Continues to benefit from Q4 FY23 FY23 Industrial Business 28% growth in Auto segment 1,826 8% 17% ❑ Improving price realizations led to improvement in 1,018 margins 428 290 ― PBT margin at 12.9% for FY23 vs. 6% last year PPG-AP
Slide 17: Improvement in Gross Margins on Softening Raw Material Prices
Improvement in Gross Margins on Softening Raw Material Prices Material Inflation Material Inflation Material Inflation Material Inflation Material Inflation ~15% ~6% ~4% Material Inflation ~6% ~2% Material Deflation Material Deflation Price Increase Price Increase Price Increase ~1% Price Increase P
Slide 18: Summary – Standalone Financials
Summary – Standalone Financials Q4 FY23 Q4 FY22 FY23 FY22 20% 29,953 12% 7,589 24% 22% 11,626 28% 27% 32% 29% 3,260 37% 31% 1,748 1,654 1,234 5,820 5,490 4,100 Net Sales Gross Margins PBDIT PBT PAT Net Sales Gross Margins PBDIT PBT PAT ❑ Net Sales growth of 12.4% in Q4 & 19.8% in full year driven by
Slide 19: Summary – Consolidated Financials
Summary – Consolidated Financials FY23 FY22 Q4 FY23 Q4 FY22 19% 11% 34,368 8,751 24% 21% 30% 44% 13,211 29% 33% 33% 36% 3,698 6,260 5,738 4,195 1,865 1,735 1,258 Net Sales Gross Margins PBDIT PBT PAT Net Sales Gross Margins PBDIT PBT PAT ❑ Net Sales growth of 10.9% in Q4 & 18.8% in full year ❑ Price
Slide 20: Exceptional Items in Consolidated Statements in FY23
Exceptional Items in Consolidated Statements in FY23 Causeway Paints Lanka Pvt Ltd: Currency Devaluation and Impairment of loss on ‘Goodwill on Consolidation’ ❑ On-going economic crisis in Sri Lanka led to sharp currency devaluation in Q1 FY23, resulting in recognition of an expense of Rs. 24.2 crs
Slide 21: Ending the Year on a Strong Base
Ending the Year on a Strong Base
Slide 22: Consistently Rewarding Shareholders
Consistently Rewarding Shareholders ❑ Board of Directors 60.0% recommended final dividend of Rs.21.25 / 25.65 share (2125%) 58.6% 56.1% ❑ Interim dividend of Rs. 51.1% 19.15 4.40 / share (440%) 17.85 56.7% declared in Oct’22 53.0% 12.00 ❑ Total dividend for FY23 at 10.50 8.70 Rs. 25.65/ share, divid
Slide 23: 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 24: Near & Medium Term Sustainability Targets
Near & Medium Term Sustainability Targets 2030 Target 6x 100% 60% 2025 Target 4x 75% 30% Current Status 3.8x 63% 15% Fresh Water Share of renewable electricity Recycled Material in Replenishment in total electricity consumed Packing at factories
Slide 25: Outlook for FY2024
Outlook for FY2024 ❑ Indian economy in a relative better spot, despite the gloomy global outlook. High correlation of domestic GDP growth with paint industry will ensure we grow well ― Will continue to aggressively pursue growth ❑ Monsoon forecasts – a concern area; Need to monitor how this evolves
Slide 26: Thank You
op asianpaints Thank You