Bajaj Electricals Limited · NSE:BAJAJELEC
Bajaj Electricals — Investor Presentation (July 2022)
42 slides from Bajaj Electricals's investor presentation, Jul 4, 2022
Slide 1: Exchange covering letter for corporate presentation
July 4, 2022 To, BSE Limited : Code No. 500031 Department of Corporate Services Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001 National Stock Exchange of India Limited : BAJAJELEC - Series: EQ Listing Department, Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Dear Sir/Mad
Slide 2: Corporate Presentation 4th July 2022
Corporate Presentation 4th July 2022 #DecadeOfBajajElectricals
Slide 3: Disclaimer
Disclaimer The material that follows is a Presentation of general background information about the activities of Bajaj Electricals Limited (“Company”) or its subsidiary or joint venture or associate (together with the Company, the “Group”) as at the date of the Presentation or as otherwise indicated
Slide 4: Vision and Core Values
VISION CORE VALUES “Enhancing quality of life and bringing happiness with sustainability.” Trust Integrity Empowerment Team Work Innovation Customer Delight
Slide 5: Glossary
Glossary BSC Balance Score Card MoS Majorly Owned Subsidiary C&CE Cash and Cash Equivalents MS Market Share CP Consumer Products MT Modern Trade CT Control Tower NPD New Product Development D&I Diversity & Inclusion OCF Operating Cash Flow DLS Design Language System PMS Performance Monitoring System
Slide 6: Table of Contents
Table of Contents 1. 2. 3. 4. Overview Recap : BEL 2.0 Progress : Strategic Financial Snapshot Priorities 5. 6. 7. Roadmap : CY’25 Awards & Shareholders’ Recognitions Return 5
Slide 7: 1. Overview
• Brief Profile : Bajaj Group • Introduction : Bajaj Electricals (BEL) 1. Overview • Illustrious Board of Directors • Evolution of Company 6
Slide 8: Brief profile of Bajaj Group
Brief profile of Bajaj Group ➢ One of the diversified conglomerates in the country since 9 decades ➢ Founded by late Shri Jamnalal Bajaj ➢ Among top business groups in India (4th conglomerate to hit m-cap of $100 Bn) ➢ Growing strong with 40+ group companies and 36,000+ employees ➢ Leadership that c
Slide 9: Introduction to Bajaj Electricals (BEL)
Introduction to Bajaj Electricals (BEL) • Leading Indian FMEG company engaged in developing, Key Metrics manufacturing and marketing of consumer products (CP) 20+ 4 2,600+ • Wide range of ECD offerings categorised as (i) Fans; (ii) Manufacturing Branch offices Employees Plants Appliances; and (iii)
Slide 10: Illustrious Board of Directors
Illustrious Board of Directors Shekhar Bajaj Anuj Poddar Chairman & Managing Director Executive Director Madhur Bajaj Rajiv Bajaj Non Executive Director Non Executive Director Pooja Bajaj Dr. (Smt.) Indu Shahani Non Executive Director Independent Director Harsh Vardhan Goenka Shailesh Haribhakti Ind
Slide 11: Evolution of Company
Evolution of Company • 1984 – Amalgamated Matchwell • Rights Issue in Oct 2003 • Unveil of BEL 2.0 Electricals which manufactured fans, die-casting components & • QIP issue of INR 1,600 mn in • Transition from promoter magneto assembly owned cum managed to Dec 2009 promoter owned, 1971 - 2003 - prof
Slide 12: 2. Recap of BEL 2.0
• #DecadeOfBajajElectricals : Horizons 1, 2 & 3 • Summarising Progress 2. Recap of BEL 2.0 • Simplified Corporate Structure • Forging Partnerships 11
Slide 13: #DecadeOfBajajElectricals: Horizons 1, 2 & 3
#DecadeOfBajajElectricals : Horizons 1, 2 & 3 Re-Structure, Re-Surge and Re-Imagine CY’26 onwards CY’23 to CY’25 CY’19 to CY’22 Horizon 3 : Re-Imagine Horizon 2 : Re-Surge Horizon 1 : Re-Structure • Most Valued FMEG Brand • Industry leading growth in FMEG space • Strengthening B/S, Debt-free Status
Slide 14: Summarising Progress (Horizon 1; BEL 2.0)
Summarising Progress (Horizon 1; BEL 2.0) • Debt Repayment : To the tune of USD 280 Mn (INR 2,118 Cr) Strengthening B/S • Debt-free Status : First time in over 4 decades, Net C&CE of INR 74 Cr as on end Mar’22 (Debt-free Status) • OCF : INR 2,200 Cr generated, FCF to PAT & OCF to EBITDA conversion h
Slide 15: Simplified Corporate Structure
Simplified Corporate Structure FY’19 (Erstwhile) FY’22 (Present) Promoters Public Promoters Public 62.71% As on 31st Mar’19 37.29% 62.98% As on 31st Mar’22 37.02% BEL BEL 19.00% 47.00% 79.85% 19.00% 88.48% 100.00% Nirlep Nirlep Hind Lamps Starlite Lighting Hind Lamps Starlite Lighting Appliances App
Slide 16: Update w.r.t. demerger
Update w.r.t. demerger Post demerger Transaction Mechanics • Power Distribution & Power Transmission business segments to be demerged into new company “BAJEL Promoters Public Projects Limited (BPL)” – independent of BEL 62.98% 37.02% • Pursuant to a scheme of arrangement of demerger via NCLT driven
Slide 17: Forging Partnerships: Morphy Richards Brand Licensing
Forging Partnerships : “Morphy Richards” Brand Licensing L-R: Fergal Naughton, Executive Chairman, Glen Dimplex; Shekhar Bajaj, CMD, Bajaj Electricals, Anuj Poddar, ED, Bajaj Electricals • Extension of Exclusive license for further 15 years w.e.f. 1st July’22 • Endeavour for superior value creation
Slide 18: Forging Partnerships: Technology alliance with Wtec
Forging Partnerships : Technology alliance with “Wtec” • To provide smartengine (intelligent building technology) for network-powered lighting & sensor infrastructure in India • Energy-efficient smart lighting based on fine-mesh sensor network (potential energy saving to tune of 30-75%) • Partnershi
Slide 19: 3. Progress: Strategic Priorities
• Fueling Product Innovation • Augmented Distribution 3. Progress : Strategic Priorities • Powering Brands • Service Excellence 18
Slide 20: Fueling the Innovation Funnel
Fueling the Innovation Funnel Appliances Fans Consumer Lighting Illumination NPD Contribution : 27% NPD Contribution : 35% NPD Contribution : 33% Note: NPD Contribution computed based on launches in last 3 years 19
Slide 21: Expanding Reach, Extracting More
Expanding Reach, Extracting More General Trade 2.3 2.01 >20% c.10% c.15% Rural CAGR increase in FY'19 FY'22 Contribution business per retailer Numeric distribution (ND) Key Metrics Sunrise Channels 11.3 E Com MFR 6.1 520 bps 23% YoY 20% YoY Institution Exports FY'19 FY'22 E-Com as % of Sales 77% YoY
Slide 22: Powering Brands
Powering Brands Mixer Water Year Fans Air Coolers Nirlep Irons LED 37 20 Grinders Heaters TVCs Campaigns FY’20 FY’21 Highest Brand Investment in FMEG peers (as % of sales in last 3 years) FY’22 21
Slide 23: Service Excellence
Service Excellence Extensive Reach Responsiveness Leveraging Digital Customer Delight 594 2.6 97.0% 2.18 Voice bot facility 93.6% 505 Online call registration facility 340 c.18% c.20% bps WhatsApp services Mar’19 Mar’22 Mar’19 Mar’22 Mar’19 Mar’22 Service Centres Voice Calls (in lakhs) Call Resoluti
Slide 24: ESG Framework being rolled-out
ESG Framework being rolled-out 1 ESG Purpose 4 Strategic Pillars 10 Focus Areas Our Purpose : “Inspiring Sustainable Living” 23
Slide 25: 4. Financial Snapshot
• P&L Summary • Segment Wise Performance 4. Financial Snapshot • Key Ratios and Return Metrics • Cash Flow Waterfall 24
Slide 26: P&L Summary
(All figures in INR crores) P&L Summary Particulars FY’20 FY’21 FY’22 YoY Gr (%) 2 Yr CAGR (%) Remarks Net Sales 4,987 4,585 4,813 5.0% (1.8)% Core Contribution - Topline COGS 3,640 3,239 3,425 5.7% (3.0)% • CP increased by 2x (from c.40% Gross Margin 1,347 1,345 1,388 3.2% 1.5% in FY’19 to c.80% in
Slide 27: Segment Wise Performance (Last 3 Years)
(All figures in INR crores) Segment Wise Performance (Last 3 Years) Appliances Fans Overall ECD 2,247.9 3,313.9 2,017.9 1,066.0 2,658.3 2,899.7 1,816.0 842.3 881.8 FY'20 FY'21 FY'22 FY'20 FY'21 FY'22 FY'20 FY'21 FY'22 Lighting (B2C) Lighting (B2B)* Overall Lighting 625.2 1,081.5 456.3 1,020.7 436.5
Slide 28: Key Ratios and Return Metrics
Key Ratios and Return Metrics Type Particulars FY’20 FY’21 FY’22 Remarks Current Ratio (x) 1.1 1.2 1.2 • Sequential improvement on YoY basis • Endeavour to improve Current & Cash Liquidity ratios beyond 1.5x and 0.5x levels Cash Ratio (x) - - 0.1 Net Debt / Equity (x) 0.6 0.3 - • Net Debt free statu
Slide 29: Cash Flow Waterfall (Last 3 Years)
Cash Flow Waterfall (Last 3 Years) (All figures in INR crores) Operating Profit to FCF (All figures in INR crores) FCF to C&CE 28
Slide 30: 5. Roadmap: CY'25
• Consolidation of Leadership 5. Roadmap : CY’25 • Aspiration 2025 • Beefing Growth Pillars, Polishing Enablers 29
Slide 31: Consolidation of Leadership
Consolidation of Leadership Mkt. Size Category Sub- Category Rank* Focus Peers (in INR Cr) Mixer Family 5,000 No 1 Defend Preethi, TTK Prestige Water Heaters 3,000 No 1 Defend AO Smith, Havells, V Guard Appliances Air Coolers 4,500 Top 3 Grow Symphony, Voltas, Kenstar Irons 1,200 No 1 Defend Philips
Slide 32: Aspiration 2025
Aspiration 2025 Aspiration To be leading FMEG Player Revenues >INR 7,500 Crores by CY’25 Distribution Consumer Offerings Branding Sales & Product Pillars Care Consumer Centricity and U&A, Superior DLS and differentiating technology, Best in class Quality Enablers Resilient and De-risked Supply Chain
Slide 33: Beefing Growth Pillars, Polishing Enablers
Beefing Growth Pillars, Polishing Enablers Growth Pillars Enablers Till CY’22 CY’23 Onwards Till CY’22 CY’23 Onwards Product • Improved addressability in NPD & • Consumer understanding • NPD rollouts based on DLS Offerings • Premiumisation Play Quality prioritised categories via exhaustive U&A (Plat
Slide 34: 6. Awards & Recognitions
> BAsAS 6. Awards & Recognitions 33
Slide 35: Consumer Brand, Lighting Projects and Design
Consumer Brand, Lighting Projects and Design FORBES INDIA Ranks Bajaj Electricals as India’s Most Respected Consumer Brand Global SSL Showcase 100 - 2019 Award for Bogibeel Bridge 34
Slide 36: Manufacturing, Supply Chain & Logistics Excellence
Manufacturing, Supply Chain & Logistics Excellence TechCircle Business Transformation Leader Award 2020 – for Warehouse Management System 35
Slide 37: Manufacturing, Supply Chain & Logistics Excellence
Manufacturing, Supply Chain & Logistics Excellence ASCM Corporate Award of Excellence The Frost and Sullivan PERP Award under for Advanced Supply Chain Industry ‘Quality Excellence Leadership Category’ The Process of Ongoing Improvement SCALE Award conferred by CII Institute of “POOGI” Award for Con
Slide 38: Enhanced Stakeholder Relationship
Enhanced Stakeholder Relationship For 2 consecutive years 'Stars on Sell side' category awarded by IR Society in association with BSE and KPMG India 37
Slide 39: 7. Shareholders' Return
> BAsAS 7. Shareholders’ Return 33
Slide 40: Diversified Shareholder Base
Diversified Shareholder Base Increased Increased stake of Shareholding Pattern Shareholder Base institutional shareholders (as on end Mar’22) 80,0 00 70,0 00 25. 0% 10.6% 60,0 00 c.70% 830 bps 12.0% 20. 0% 50,0 00 40,0 00 71,897 22.7% 14.3% 63.0% 15. 0% 30,0 00 42,902 20,0 00 14.4% 10,0 00 10. 0% No
Slide 41: Industry Leading Value Creation
Industry Leading Value Creation Superior Shareholder Returns 30. 0% 25. 0% 20. 0% 24.9% 15. 0% 15.7% 15.2% 14.6% 10. 0% BEL BSE MidCap BSE 200 BSE Sensex 3-Year CAGR of Market Price from 1st April 2019 to 31st March 2022 40
Slide 42: Thank You
THANK YOU ! For Investor Relations related queries Write to us at Rakesh Dash Suketu Shah Rakesh.dash@bajajelectricals.com Suketu.shah@bajajelectricals.com 41
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