Birlanu Limited · NSE:BIRLANU
Birlanu — HIL — Q4 FY2019 Earnings Presentation
44 slides from Birlanu's earnings presentation, May 27, 2019
Slide 1: HIL – Investors' presentation filing letter
HIL TOGETHER, WE BUILD. @ CK BIRLA GROUP Date: May 27,2019 To To The Department of Corporate Services -eRD National Stock Exchange of India limited Bombay Stock Exchange Ltd 5111 Floor, Exchange Plaza P.J.Towers, Dalal Street Bandra (E), MUMBAI- 400 001 MUMBAI- 400 051 Scrip Code: 509675/HIL; Throug
Slide 2: Q4 & FY19 Result Presentation
Q4 & FY19 Result Presentation
Slide 3: Disclaimer
Disclaimer Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to HIL Ltd. (“HIL”, or “Company”) and its future business, development and economic performance. These statements include descriptions regarding the intent,
Slide 4: Strategic Overview
STRATEGIC OVERVIEW NJ 3 (ck BIRLA GROUP | HL
Slide 5: CK Birla Group – 160+ Years of Rich Legacy
CK BIRLA GROUP – 160+ YEARS OF RICH LEGACY 4
Slide 6: Flagship Companies of CK Birla Group
FLAGSHIP COMPANIES OF CK BIRLA GROUP Technology and Healthcare and H and I ; HL AVEC BMB ORIENT & Birlasoft CMRI i Gimmco RBH tris} RON nbc &, neosym re) Ns ce aims HOSPITAL fr WOMEN 5 (© CK BIRLA GROUP | HL
Slide 7: HIL Overview
HIL Overview Strong brand equity • Fibre Cement Sheets • Engineered Wood Flooring Dry Wall: Pipes & Fittings: • Revolutionary High • Laminate Flooring • Solid Wall Panels • UPCV Pipes and Fitting Temperature Insulation • Coloured Steel Sheets • CPVC Pipes and Fitting • C- Boards • Resilient Flooring
Slide 8: HIL's Agenda for Growth
HIL’s Agenda for Growth • Established brands • Committed dealership Pedigree • Momentum in margins through sustainable efficiencies • Drive organic expansion Maintaining Innovation • Augment non-roofing portfolio Leadership • Launch research based green solutions Opportunity • Develop adjacent compl
Slide 9: HIL's Strengths
HIL’s Strengths Defined by strong value- system and parentage Driven by Steered by portfolio of experienced high-quality Management leadership brands Complemented Underlined by by wide advanced distribution research and reach for commercialisati products/solutio on capabilities ns Supported by world
Slide 10: The Superbrands
The Superbrands Out of 2043 brands evaluated, only 36 brands have been able to secure the ‘Superbrand’ status A Superbrand is a recognition of a brand's commitment to quality and excellence of products and services. Birla Aerocon and Charminar of HIL have been bestowed upon with the status of ‘CONSU
Slide 11: HIL a Trendsetter
HIL a Trendsetter Trendsetter in the building material industry by creating new benchmark in Quality, Processes and Products One amongst only three First company in India to companies in the world manufacture autoclaved flat making AC Steel templates. sheets and sandwich panels. Only Company in the
Slide 12: Distribution Spread
Distribution Spread Key competitive advantage Punjab Uttrakhand Delhi • 21 Manufacturing facilities Rajasthan Uttar Pradesh • 38 Sales depots Bihar • 8 sales offices Gujarat Jharkhand West Bengal Madhya Pradesh • 2,500 loyal stockiest/distributors Orissa • 6,500 sub-dealers Maharashtra • Deeper mark
Slide 13: Manufacturing Prowess
Manufacturing Prowess To insert image for building solutions World-class facilities. Transparent operations 12
Slide 14: Vision
Vision “To be a leading, global, innovative, and eco-friendly, building and infrastructure solutions company and create sustainable value for our stakeholders” 13
Slide 15: Mission
Mission To deliver a diversified portfolio of eco-friendly products and solutions fueled by innovation To build a strong corporate brand present across all continents To digitalize processes end -to-end for business excellence A diverse workplace that is a preferred employer ..…while continu
Slide 16: Values: Accountability, Integrity, Innovation
Accountability Integrity “Complete ownership and “Being ethical and responsibility of outcomes” honest in our behavior” Innovation Respect “Embed innovation in “Care and respect for organizational process at all all our stakeholders” levels” Excellence Teamwork “Strive to achieve highest “Together w
Slide 17: Chairman's statement
“Business must be conducted with highest standards of excellence, values, respect for the environment and human health. Business is the means to develop a better society and provide care to all. HiL will play its role in the infrastructure and construction sectors as a leader, shaping the future of
Slide 18: Awards
Awards Best rural activation for Sales Volume NAMC Award – Kondapalli Factory Golden Peacock Award – Manufacturing Most Effective use of Sponsorship Excellence Young Marketing Leader of the year Asia’s Most Trusted Award Best Company of the Year -2018 Economic Times Most Promising Business Leaders O
Slide 19: Superbrand (India) of the year, 2019
Superbrand (India) of the year, 2019
Slide 20: Awards Won Recently
AWARDS'WON RECENTLY a me nd NATIONAL i” ee ASIA’S BEST Awan inka a4 QUALITY, fee EMPLOYER AND =! BRAND AWARD = UNNATI BEST GREENERY CUSTOMER LOYALTY MAINTENANCE , AWARD AWARD aa he - KONDAPALLI % Re ve v £ BY ABBY AWARDS ABBY AWARDS et Vasey AWARDS DIRECTION CASTING AUDIO VISUAL VIDEO CRAFT CATEGORY
Slide 21: Corporate Social Responsibility
Corporate Social Responsibility Distributed School Benches to ZP Girls and boys Reconstruction of hostel facility and school for Provided AAC Blocks to construct floor to govt. School tribal students with Manav Kalyan Trust School Donation of 3 PC’s to Uchat Renovation of Primary Govt Construction o
Slide 22: HIL Goes Global
HIL GOES GLOBAL NJ 21 (ck BIRLA GROUP | HL
Slide 23: Acquisition Rationale
Acquisition Rationale Global provider of Building Products and Solutions • HIL Limited, acquires Parador Holdings GmbH (“Parador”) for ~ €82.8 million • Transaction provides a compelling value proposition and underscores HIL’s aspiration of one stop shop for all Building Products & Solutions • To en
Slide 24: Parador: Business Overview
Parador: Business Overview Has one factory Parador has been a each in Coesfeld, partner of the "Plant-for- Germany and the-Planet" Foundation, Güssing, Austria which is active worldwide for afforestation and climate protection Founded in 1977, is a Germany based, vertically integrated, full-range su
Slide 25: Parador: Suite of Products
Parador: Suite of Products Laminate Flooring Engineered wood flooring Resilient Floor Covering Designer Flooring 24
Slide 26: Parador: Manufacturing Expertise
Parador: Manufacturing Expertise Germany Austria Coesfeld Gussing Key Facts Key Facts Manufacturing of resilient and laminate Manufacturing of engineered wood Installed capacity: 12m sqm Installed capacity: 3m sqm Capacity utilization: 68% Capacity utilization: 66% Facility area: 135k sqm Facility a
Slide 27: Parador: Global Footprint
Parador: Global Footprint Market Presence Though our business in Germany is growing faster than the over all economy growth, Central Europe and Overseas business are the main growth drivers in last 4 years 26
Slide 28: A Strong Fit
A Strong Fit Key Strategic Objectives A Unique Proposition Transform towards becoming a global player in Enable HIL’s transition into a global player in Building Material industry Building Materials segment Facilitates entry into Flooring Solutions segment - Entry into adjacent categories in buildin
Slide 29: Parador: Financing Rationale
Parador: Financing Rationale In € MN Enterprise Value – 82.8 Consideration Paid Sources of Funding Consideration against Internal accruals shares held by Total cash shareholders consideration paid Payment towards repayment of Rupee loan Shareholder Loan including accrued interest Payment towards rep
Slide 30: Internationally Renowned Brand with Strong R&D
Internationally Renowned Brand with Strong R&D Select Impressions of PARADOR Edition Designers Zaha Hadid Alfredo Häberli Hadi Teherani Karim Rashid Jean Nouvel Jean-M. Massaud Awareness Level of Select Flooring Brands in Germany 2018 (in %) 39% 39% 22% 25% 26% 18% 18% 16% 16% 6% 6% 21% 13% 14% 14%
Slide 31: Parador: Way Forward
Parador: Way Forward • Our growth strategy for Parador: – To drive growth in existing markets – To seek growth from new markets viz. MEA, North America, China & India – To achieve operational efficiencies by utilizing excess capacities for requirements in existing and newer market Parador has opened
Slide 32: Quarterly Discussion
QUARTERLY DISCUSSION NJ 31 (ck BIRLA GROUP | HL
Slide 33: Highlights of Q4 & FY19 performance
Highlights of Q4 & FY19 performance In Rs. Crore Revenue* EBITDA PBT Quarter Ended (Standalone) 351 30 45 336 26 42 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 222 1482 160 (Standalone Year Ended 171 120 1280 FY18 FY19 FY18 FY19 FY18 FY19 2208 282 167 (Consolidated) year Ended 171 120 1280 FY18
Slide 34: Financial statements Consolidated – P&L
Financial statements Consolidated – P&L Parador Consolidated INR Crore Q4 FY18 Q4 FY19 Y-o-Y FY18 FY19 Y-o-Y FY19** FY19 Total Revenue 336 351 5% 1,280 1,482 16% 726 2,208 Total Expenditure 314 336 7% 1,182 1,354 14% 698 2,047 EBITDA 42 45 7% 171 222 30% 64 282 PBT 30 26 -12% 120 160 34% 28 188 (Bef
Slide 35: Financial statements – B/S
Financial statements – B/S Consolidated Particular (Rs. Crore) 31.03.2019 31.3.2018 31.03.2019 Net worth increased to Rs. 637 Crore. as on Mar 31 A) Equity & Liabilities 2019 from Rs. 566 Crore as on March 31, 2018 Shareholder’s funds 647 566 637 Non-current liabilities 355 117 673 Current liabiliti
Slide 36: Results discussion - segmental
Results discussion - segmental Q4 Q4 Rs. Crore FY18 FY19 Y-o-Y FY18 FY19 Y-o-Y Revenues Roofing Solutions 199 188 -6% 820 874 7% Building Solutions 91 94 4% 334 363 9% Polymer Solutions 40 65 63% 112 233 108% Flooring Solutions -- -- -- -- 726 -- Others 6 4 -39% 16 15 -8% Complied as per Ind AS Tota
Slide 37: Results discussion
Results discussion Parador Consolidated Rs. Crore Q4 FY18 Q4 FY19 Y-o-Y FY18 FY19 Y-o-Y FY19** FY19 EBITDA 42 45 7% 171 222 30% 64 282 EBITDA Margin 12% 12% 20 bps 13% 15% 158 bps 9% 13% Strong orientation on costs and streamlined operations translating into higher margin momentum. Brand strength re
Slide 38: Charminar Fortune – Non-asbestos, Green Roofing Launched
Charminar Fortune – Non-asbestos, Green Roofing Launched State-of-the-art eco-friendly futuristic roofing solution Incubated, developed and manufactured, completely in-house with R&D spend of only Rs. 13 crore Offers superior product attributes vis-à-vis competing products at competitive prices whic
Slide 39: Successful campaigning with Chennai Super Kings
Successful campaigning for 2nd consecutive year with Chennai Super Kings “The brand recall, loyalty, followers of HIL’s products are quite symbolic to what CSK has...is a champion in its respective segments INVESTING FOR SUSTAINED GROWTH HIL Ltd debuted as sponsor of Chennai Super Kings (CSK) in the
Slide 40: Accredited with Great Place to Work Certification
Accredited with Great Place to Work Certification Great Workplaces are built on : # Employee experiences (Trust Index): Five dimensions are Credibility, Respect, Fairness, Pride & Camaraderie – covered all employees engagement survey (Staff and Workmen) - 92% response rate # People practices (Cultur
Slide 41: Message from Managing Director & CEO
Message from Managing Director & CEO Dhirup Roy Choudhary “As we take review of the year gone by I am filled with pride at what HIL has been able to achieve. We have the best teams running the operations, a very competent product line and customers who enshrine trust and confidence in us. With Charm
Slide 42: Outlook
Outlook Growth from leadership roofing business through optimised distribution and stronger marketing Investment in creating opportunities for growth in Pipes & Fittings by way of capacity expansion Focus on driving non-roofing portfolio comprising Building Solutions and Flooring Solutions Focused g
Slide 43: Contact Us
Contact Us About Us: Founded in 1946 and having completed 70 glorious years HIL Limited is an integral part of a burgeoning marketplace. It is the flagship company of the C K Birla Group, which is a growing US$2.5 billion conglomerate with diversified interests. With over 20,000 employees, 43 manufa
Slide 44: Thank You
Certified THANK YOU NJ 43 (ck BIRLA GROUP | HL