Asian Granito India Limited · NSE:ASIANTILES
Asian Granito India — Q2 FY17 Earnings Presentation
50 slides from Asian Granito India's earnings presentation, Oct 27, 2016
Slide 1: Cover letter to stock exchanges: Investor presentation
ADIGA UA WiUla LLU. Regd. & Corp. Office: 202, Dev Arc, Opp. Iskcon Temple, S. G. Highway, Ahmedabad-380015. Gujarat, India. Tel.: +91 79 66125500/698, Fax.: +91 79 66125600/66058672 info@aglasiangranito.com » www.aglasiangranito.com CIN : L17110GJ1995PLC027025 —& Beautiful Life e— Date: 27.10.2016
Slide 2: Asian Granito India Ltd Investor Presentation – October 2016
Asian Granito India Ltd Investor Presentation – October 2016
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Asian Granito India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Table of contents
Sr.no. Particulars Page no. 1 Company Overview 9 2 Management Details 12 3 Capacity 15 4 Products 20 5 Clientele/Promotions 26 6 Innovation 30 7 Distribution Network 32 8 Manufacturing Efficiencies 35 9 Growth Drivers 37 10 Financials 44 3
Slide 5: Financial Highlights – Q2 FY17
Financial Highlights – Q2 FY17 Revenues EBITDA +6% 44% 250 265 31 22 Q2FY16 Q2FY17 Q2FY16 Q2FY17 EBIT Profit After Tax +44% 56% 22 10 15 6 Q2FY16 Q2FY17 Q2FY16 Q2FY17 Consolidated figures (Rs. In Crs) 4
Slide 6: Financial Highlights – H1 FY17
Financial Highlights – H1 FY17 Revenues EBITDA +7% 56% 449 478 56 36 H1 FY16 H1 FY17 H1 FY16 H1 FY17 EBIT Profit After Tax +54% 75% 39 16 25 9 H1 FY16 H1 FY17 H1 FY16 H1 FY17 Consolidated figures (Rs. In Crs) 5
Slide 7: Margin Profile
Margin Profile EBITDA (%) PAT (%) 310 bps 110 bps 11.8% 3.6% 8.7% 2.5% Q2FY16 Q2FY17 Q2FY16 Q2FY17 370 bps 130 bps 11.7% 3.3% 8.0% 2.0% H1 FY16 H1 FY17 H1 FY16 H1 FY17 On Consolidated basis 6
Slide 8: Tiles Division - Business Performance
Tiles Division - Business Performance Volume Break-up Revenue Break-up 43% 45% 43% 44% 41% 49% 44% 49% 11% 16% 9% 8% Q2FY16 Q2FY17 Q2FY16 Q2FY17 Own Manuafacturing Outsourcing JV / Associate 7
Slide 9: Tiles Division - Business Performance
Tiles Division - Business Performance Volume Break-up Revenue Break-up 43% 46% 44% 45% 44% 42% 52% 52% 10% 13% 4% 4% H1FY16 H1FY17 H1FY16 H1FY17 Own Manuafacturing Outsourcing JV / Associate 8
Slide 10: History
History Commenced Floated IPO & Commenced Quartz Launched double-charged 2002-2003 2007-2008 Production of Established AGL slab production polished vitrified tiles Introduced 8-colour digital 2011 2014 Ceramic Floor with Tiles World in 14 Launched digital 2,500 Sq. mtr per cities glazed
Slide 11: Overview
Overview 8 State of Art Ranked amongst Exporting Products 4 across 50 Countries Top Manufacturing Ceramic Companies of Facilities the Nation spread across Gujarat Rank amongst 8 Plants 4000+ 50 Countries Over 40X Top 4 90 + Capacity Showrooms Dealers / Sub- 00 Dealers Growth Over 90 Showrooms Over 4
Slide 12: Pioneer in the Industry
Pioneer in the Industry To introduce LARGE FORMAT Wall & Vitrified Tiles To introduce st GRESTEK XXL To introduce Large Format Tiles WORLD’S WHITEST (CARARRA WHITE) Double Charge Vitrified Tiles Introduced 16mm Thick Heavy Duty Vitrified tiles To introduce GRESTEK HARDSTONE FULL BODY Tiles in India
Slide 13: Management
Professionals with over 22 years of experience in Ceramic Industry Management Uncompromising attitude towards Quality 12
Slide 14: Key Management Team
Key Management Team Mr. Kamlesh Patel – Chairman & Managing Director With 22 years of experience in the Tile industry - he is a visionary who has created global benchmarks Holds BBA Degree from Sardar Patel University & Member of ICCTAS A decisive decision maker who believes in taking right de
Slide 15: Professional Team
Professional Team Sr. V. P - Marble & Quartz B. M. Singhal Chief Financial Officer Kalidas Patel Associate V. P – GVT Rahul Sharma G. M – Finance & Commercial CA Himanshu Shah Sr. G. M – International Marketing Rajesh Iyer DGM (Legal) & Company Secretary CS Renuka Upadhyav V. P – Operation (Tiles Di
Slide 16: Capacity
Production Capacity of more than 1,00,000 sq. mtrs. per day Capacity (including outsource) 15
Slide 17: 8 Ultra Modern Manufacturing Units
8 Ultra Modern Manufacturing Units 16
Slide 18: Manufacturing Facilities
Manufacturing Facilities 1st in the World to introduce 5 layer tiles kiln from SACMI-ITALY 17
Slide 19: Manufacturing Facilities
Manufacturing Facilities IDAR – Porcelain Ceramic Dalpur – Glazed Vitrified Dalpur – Wall Ceramic Dholka – Wall Ceramic Dalpur - Amazoon Morbi – Double Charge Mehsana – Vitrified Plant Dalpur – Marble & Quartz Porcelain Ceramic Vitrified 18
Slide 20: Ultra Modern & Latest Technology
Ultra Modern & Latest Technology First to establish Online Vitrified Technology First in India to have Digital 8 Colour Printing Technology A Pioneer with Best Water Jet Technology 13 Digital 8 Colour Printing Machines Highest number of Digital Machines in India Only Ceramic Company to have in-house
Slide 21: Products
Wide Product Range - Ceramic Floor, Digital Wall, Products Vitrified, Parking, Porcelain, Glazed Vitrified, Outdoor, Composite Marble & Quartz 20
Slide 22: Product Portfolio
Product Portfolio * Revenue Contribution Asian Granito Ceramic Vitrified Marble & Grestek – Tiles – Tiles – Quartz - *(13%) *(34%) *(35%) *(18%) Soluble Salt Marvel Colour Body Tiles Multi Colour Homogenous Body Marble Wall Floor Slimgress Nano Crystal Tiles Tiles Nano Tech - Double Charge Marble Ha
Slide 23: Ceramic Tiles – Wall & Floor Tiles
Ceramic Tiles – Wall & Floor Tiles 22
Slide 24: Vitrified Tiles
Vitrified Tiles Soluble Salt Homogenous Body Nano Tech - Double Charge Grandura Exteriors Grandura Digital 23
Slide 25: GRESTEK – Premium Glazed Vitrified Tiles
GRESTEK – Premium Glazed Vitrified Tiles 24
Slide 26: Marble & Quartz
Marble & Quartz Marble Quartz Premium Segment - Higher Realisation Company enjoys 43% market share in this segment 25
Slide 27: Clientele / Promotion
Diversified Clientele Profile – Real Estate; Clientele / Govt.; Hotels; Malls; Banks; Hospitals; Promotion Corporates; Airports; Showrooms etc. 26
Slide 28: Marquee Institutional Clientele
Marquee Institutional Clientele 27
Slide 29: Advertising in FIFA World Cup
Advertising in FIFA WORLD CUP 28
Slide 30: Major Marketing Activities
Major Marketing Activities •Active online presence in Social Media : Facebook, Tweeter, Pinterest •Regional Radio Activation in Navratri •Extensive Regional Road shows in Gujarat, Maharashtra, Punjab, HP, Delhi, Haryana, UP, Kerala •Product Registered under GRIHA and ADARSH society Mega Brand Recog
Slide 31: Innovation
Innovation 1st to introduce 5 tiles manufacturing kiln from SACMI-Italy 1st to launch large format digital charge vitrified tiles in 1000x1000mm Jumbo & 800x800mm Imperio 30
Slide 32: Recent New Innovative Products launched
Recent New Innovative Products launched Product Name Size in mm 300 x 600, 600 x 1200, Gretesk – Marvel Colour Body Tiles 600 x 600, 196 x 1,200 Imperio – Double Charge – Introduced 17 SKU’s 800 x 800 Jumbo - Double charge – Introduced 16 SKU’s 1000 x 1000 CARARRA White (World’s Whitest Tile – in un
Slide 33: Distribution Network
Distribution All India Market Reach; Distribution Reach Direct Dealers / Sub- Network dealers: +4000 Unique – 80+ AGL Tile World “Exclusive across India” 32
Slide 34: Strengthening Distribution Network – Tile Segment
Strengthening Distribution Network – Tile Segment Addition in Dealers & Sub-Dealers Geographical Revenue Breakup 4,500 11% 500 35% 1,200 21% 2,800 33% FY14 FY15 FY16 Total West South North East 33
Slide 35: Global Footprint
Global Footprint Presence in 50+ countries NORTH AMERICA | EUROPE | AFRICA | UAE | AUSTRALIA | EAST ASIA | MIDDLE EAST ASIA 34
Slide 36: Manufacturing Efficiencies
Manufacturing 13 digital colour machines to ensure innovation and efficient manufacturing Efficiencies Cost Savings - Easy gas availability for nearby plant including natural gas 35
Slide 37: Capacity Built up
Capacity Built up Post Amalgamation : Owned Capacity of 88,000 Sq. mts per day Joint Venture 43,000 8,000 45,000 37,000 8,000 27,000 10,000 6,000 Dalpur Dholka Mehsana Total Morbi Total Dalpur Idar Total Asian Granito India Limited Amazoon Artistique Crystal AFFIL Combined Capacity of 100,000 Sq. Mt
Slide 38: Growth Drivers
Growth Drivers 04 Industry Growth 03 B2C Segment Value 02 Added Product Amalgamation 01 Synergies 37
Slide 39: Scheme of Amalgamation
Scheme of Amalgamation Scheme of Amalgamation of Artistique Ceramics Private Limited into Asian Granito India Ltd Asian Granito Artistique Kediya Limited Ceramic Pvt Ceramics 99.99% 94.20% 70% Amazon Crystal Ceramics Ceramics Consideration : 157 equity shares of face value of Rs.10/- at par each ful
Slide 40: Amalgamation - Synergies
Amalgamation - Synergies Artistique Ceramic Manufacturing Plant at Dalpur, Dholka & Mehsana with a Annual Capacity of ~10mn sq. mtrs Artistique Ceramic Additional Land & Common Infrastructure to expand further Asian Granito Ltd Artisique Ceramics has Contract with RAS GAS for a supply of Natur
Slide 41: Focus on High Value Product Mix
Focus on High Value Product Mix 05 Marble & Quartz 04 Glazed Vitrified Tiles 03 Double Charge Tiles 02 Polished Vitrified Tiles 01 Ceramic Tiles (Wall & Floor) 01 02 03 04 05 40
Slide 42: Focus on High Value Product Mix
Focus on High Value Product Mix FY2015 FY2016 H1 FY2017 100% 100% 100% 13% 17% 19% 87% 83% 81% Tiles Marble & Total Tiles Marble & Total Tiles Marble & Total Quartz Quartz Quartz 100% 100% 100% 43% 41% 39% 22% 23% 30% 18% 18% 18% 20% 14% 13% GVT Double PVT Ceramics Total GVT Double PVT Ceramics Tota
Slide 43: Future Strategies- Focus on B2C Segment
Future Strategies- Focus on B2C Segment Current Mapping market for towns with population > 20,000 Retail Institutional Initiatives to increase Direct Interaction with Customers 35% Dealer Network 65% AGL exclusive showrooms AGL Digital Express Future Retail Institutional Trade schemes on hig
Slide 44: Industry Growth
Industry Growth Smart Cities - New city creation could create office and housing demand “Housing for all by 2022” – an estimated 60 million houses will need to be built Push for providing sanitation could create new demand avenues entry level or lower priced tiles (ceramic tiles) “Swatch Bharat Abhi
Slide 45: Standalone Profit & Loss
Standalone Profit & Loss Particulars (Rs. Crs) Q2FY17 Q2FY16 Y-o-Y H1 FY17 H1 FY16 Y-o-Y FY16 Net Sales 242.29 235.80 434.92 428.51 870.73 Other Operating Income 1.52 0.37 1.99 0.94 2.25 Revenue from Operations 243.80 236.18 3.23% 436.91 429.44 1.74% 872.97 Cost of Material Consumed 47.35 58.15 86.4
Slide 46: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. Crs) Q2FY17 Q2FY16 Y-o-Y H1 FY17 H1 FY16 Y-o-Y FY16 Net Sales 264.15 249.10 475.65 446.97 990.96 Other Operating Income 1.30 1.05 2.61 1.61 2.92 Revenue from Operations 265.45 250.15 6.12% 478.26 448.59 6.61% 993.88 Cost of Material Consumed 72.27 68.29 12
Slide 47: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs.crs) Sep-16 Mar-16 Particulars (Rs.crs) Sep-16 Mar-16 Share Capital 30 23 Fixed Assets 218 225 Total Reserves 312 301 Non Current Investments 35 35 Share Suspense 0 8 Long term loans and advances 33 36 Shareholder's Funds 342 331 Long-Term Borrowings 18 20 Ot
Slide 48: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs.crs) Sep-16 Mar-16 Particulars (Rs.crs) Sep-16 Mar-16 Share Capital 30 23 Fixed Assets 398 398 Total Reserves 350 333 Share Suspense 0 8 Non Current Investments 18 13 Shareholder's Funds 380 363 Long term loans and advances 12 24 Minority Interest 20 19 Oth
Slide 49: Efficient Working Capital Management
Efficient Working Capital Management In Days 230 206 190 187 143 276 221 111 193 191 89 163 135 104 109 113 88 92 89 95 89 80 76 78 70 58 65 65 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Inventory Debtors Creditors Net Working Capital Standalone Figures FY16 Standalone Results of Asian Granito Ltd include r
Slide 50: Contact details
Asian Granito Limited Strategic Growth Advisors Pvt. Ltd. CIN : L17110GJ1995PLC027025 CIN: U74140MH2010PTC204285 Mr. Himanshu Shah Ms. Neha Shroff / Deven Dhruva neha.shroff@sgapl.net / ca@aglasiangranito.com deven.dhruva@sgapl.net www.aglasiangranito.com www.sgapl.net 49