Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — Q1 FY2018 Earnings Presentation
73 slides from Greenlam Industries's earnings presentation, Aug 11, 2017
Slide 1: Investor & Analyst Meet
Investor & Analyst Meet August 11, 2017 FY2017 & Q1 FY2018 GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Greenlam Industries 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
Slide 3: About Us
About Us Greenlam is one stop solution provider for All Surfacing Needs Among World’s Top 3 Laminate producers Asia’s Largest Laminate brand India’s Largest Exporter of Laminates India’s No. 1 Decorative Veneer brand India’s Only Manufacturer of Engineered Wood Flooring India’s 1st Organized Manufac
Slide 4: Board Members
Board Members Sitting Right To Left Mr. Shiv Prakash Mittal Non Executive Chairman Mr. Vijay Kumar Chopra Independent Director Standing Right To Left Ms. Sonali Bhagwati Dalal Independent Director Mr. Saurabh Mittal Managing Director & CEO Ms. Parul Mittal Director Design & Marketing Ms. Urvashi Sax
Slide 5: Management Team
Management Team B L Sharma Prashant Srivastava Alex Joseph Ashok Sharma President - Plant Vice President -HR, CSR, & Sr. Vice President - Chief Financial Officer Operations Admin Marketing Anuj Sangal Shivaji Mohinta Lokesh Dutt Country Head Sales – Country Head Sales Sr. Vice President Laminate & A
Slide 6: International Team
International Team Vaibhav Sharma Dittakan Tippawan Vishal Kapur Director, US & COO, UK Director, Thailand COO, APAC GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 7: Values That Drive Us
Values That Drive Us Trust people to be reliable and responsible and earn their trust similarly Trust We encourage We value performance learning; creating Performance across products, people Learning and nurturing the and processes talent Speed Team We achieve more by We are quick to decide, & colla
Slide 8: Current Economic Scenario – India
Current Economic Scenario – India As per IMF, India’s GDP to grow at 7.2% & 7.7% in FY17 & FY18, respectively 1 2 India continues to lead the Global Consumer Confidence Index with a score of 136 in Q4 2016 3 India remained amongst the most favoured investment destinations of the world 4 Consumer spe
Slide 9: Current Economic Scenario – Global
Current Economic Scenario – Global Cyclical recovery in Recovery of Inflation rates in Global growth is pegged at investment, manufacturing, advanced economies and 3.5% in 2017 & 3.6% in 2018, and trade leading to pick up in bottoming out of commodity as per IMF Global economic activity prices in re
Slide 10: How Do We See This?
HOW DO WE SEE THIS? GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 11: Beyond Readiness Opportunities
BEYOND READINESS OPPORTUNITIES GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 12: Opportunities
Opportunities GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 13: Real Estate, Policy Initiatives and Per Capita Income
OPPORTUNITIES|READINESS|BEYOND Indian Real Estate Per Capita Income On A Govts. Policy Initiatives IT & Other Office Parks Sector Rise RERA Leading to Sector is expected to High demand for office India’s per capita increased consolidation clock $180 Bn. by 2020 space by IT, ITeS, Retail, inc
Slide 14: Consumer Market Growth and Demand Drivers
OPPORTUNITIES|READINESS|BEYOND Consumer Market Demand for Modern Growing Middle Class Working Women Growth Homes Segment Spending Capacity Growing purchasing Increased Growing Middle Class In an interesting trend, power and rising consciousness among consumer base who Indian women are influe
Slide 15: Luxury Market
OPPORTUNITIES|READINESS|BEYOND Luxury Market Rising HNI’s Influx of global lifestyle Rising Business confidence Propelling many middle- trends and growing income group individuals aspirations GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 16: Demonetization and Goods & Service Tax
OPPORTUNITIES|READINESS|BEYOND Demonetization Goods & Service Tax Expected to reset the economy towards a Sectoral shift from unorganized to higher growth trajectory and other long- organized brand term benefits Faster delivery of products from one state Fiscal deficit of India set to reduce
Slide 17: International Market
OPPORTUNITIES|READINESS|BEYOND International Market Long-term prospects of emerging market economies have Improved Low interest rates in advanced economies leading to revival of Housing market As per IMF, Global Economy is forecasted to grow at 3.6% & Emerging market at 4.8% Rising trend for
Slide 18: Readiness
Readiness GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 19: Our Products
OPPORTUNITIES|READINESS|BEYOND Our Products Laminate & Allied products Veneer & Allied Decorative Mikasa Mikasa Laminates Compact Panel MFC Veneer Floor Door Standard Compact Natural Panel Veneer Engineered Commodity to Lab Guardian Melamine Engineered Door Premium Restroom & Locker Faced Chip Teak
Slide 20: Laminates & Allied Products – Manufacturing Capacity
OPPORTUNITIES|READINESS|BEYOND Laminates & Allied Products Manufacturing Capacity Ready for the opportunity without significant Capex 143% Laminates & Compact Panel MFC 6 Mn 100% Sheets 20.02 14.02 Mn Sheets* 2.00 Mn Sqm 14.02 Mn 5.34 Mn (Behror – Rajasthan) (Behror-Rajasthan) Mn Sheets 8.68Mn (Nala
Slide 21: Laminates & Allied Products Market Size
OPPORTUNITIES|READINESS|BEYOND Laminates & Allied Products Market Size – 5000 Cr India Market Export from India 3950 Cr 1050 Cr Domestic Industry Export Market 3950 Cr 1050 Cr 2650 Cr 1300 Cr ~18% Market ~35% Market share in share in Export Organised Market Domestic Market Greenlam Greenlam 465 Cr 3
Slide 22: International Markets
OPPORTUNITIES|READINESS|BEYOND International Markets USA, 14% APAC, 40% Europe, 20% Market Size – $7 Billion Greenlam Exports Q1FY18 Others, 27% This market is growing by 2-3% Greenlam presence in 100+ countries USA, 20% Our exports grew at a CAGR of 15% over the past 5 years Greenlam APAC,
Slide 23: Veneer & Allied Products
OPPORTUNITIES|READINESS|BEYOND Veneer & Allied Products Total Veneer Market Size ~10% Market share in 1,050 Cr 950 Cr organised market Greenlam 108 Cr 2000 Cr Natural Veneer Market Size Teak Veneer Market Size Engineered Veneer Market Size 550 Cr 250 Cr 250 Cr 550 Cr 250 Cr 150 Cr 800 Cr 800 Cr 400
Slide 24: Engineered Wooden Flooring
OPPORTUNITIES|READINESS|BEYOND Engineered Wooden Flooring Market is estimated at 2 Mn sqm Category is witnessing a 20-25% growth Only domestic manufacturer Majority demand met through import Increasing market reach with architect/designer engagements Increasing B2B outreach Increase re
Slide 25: Mikasa Doors & Frames
OPPORTUNITIES|READINESS|BEYOND Mikasa Doors & Frames Total Wooden Door (including flush door) market is estimated at 24mn annually Engineered Finished Door category is witnessing a 20-25% growth First organised players providing complete solution Increasing market reach with architect/design
Slide 26: Growth Potential with Limited Capex
OPPORTUNITIES|READINESS|BEYOND Growth Potential with Limited Capex Revenue: Rs. 938 crs 2mn brownfield capacity Capacity can be scaled Laminates Capacity: 12 mn sheets added in June 2017 at a up to 20 Mn Sheet as per Utilisation: 105% cost of Rs. 28 crs market demand scenario Revenue: Rs. 108 crs De
Slide 27: Our Wide Distribution
OPPORTUNITIES|READINESS|BEYOND Our Wide Distribution Domestic 11 Company owned large 2 State of the art Regional Distribution Manufacturing Centres Facilities 14,000+ Distributors, Dealers & Retailers Manufacturing Base Branch Offices Over 500+ Sales 32 Branch Regional Distribution Professionals Off
Slide 28: Our Wide Network Is Our Strength
OPPORTUNITIES|READINESS|BEYOND Our Wide Network Is Our Strength Global Footprints Present in 100+ 3 Company Countries Operated Distribution Centre 13 International Offices 4 Overseas 100+ Subsidiaries Overseas Employees International Offices GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 29: Green Credentials
OPPORTUNITIES|READINESS|BEYOND Green Credentials GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 30: Focus on Strong FCF Generation & Return Ratios
OPPORTUNITIES|READINESS|BEYOND Focus on strong FCF Generation & Return Ratios Free Cash flow Return on Capital Return on Equity (INR Crores) Employed 49 +830 bps +60.1% 17.1% +970 bps 19.1% 35 15.4% 14.8% 19 8.8% 9.4% FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 Based on consolidated financials. Fre
Slide 31: Resilient in All Market Conditions
OPPORTUNITIES|READINESS|BEYOND Resilient in all market conditions Real estate has underperformed during the last 2 years Demonetization gave temporary setback to our channel partners with respect to demand & buying Despite disruption, our Laminate segment has manage to perform well with our tr
Slide 32: Brand Marketing
Brand Marketing GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 33: Marketing
GROWTH OPPORTUNITIES|READINESS| BEYOND 360 Marketing Specifier Consumer PRINT DIGITAL Residential Architects Interior Designer Condominiums Project Management Independent Houses Consultants EVENTS & BRAND Influencer Commercial ACTIVATIONS STORES MARKETING Corporates Houses Dealers Govt & Institution
Slide 34: Print
Print GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 35: Print
Print GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 36: Newspaper
Newspaper GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 37: Print
Print GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 38: Digital
Digital GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 39: EDM
EDM GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 40: Meets & Engagements – Architect Connect – Lunch & Learn
Meets & Engagements – Architect Connect – Lunch & Learn GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 41: Meets & Engagements – Architect Connect
Meets & Engagements – Architect Connect GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 42: Meets & Engagements – Architect Connect
Meets & Engagements – Architect Connect GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 43: Meets & Engagements – Contractors, Fabricator & Installers Connect
Meets & Engagements – Contractors, Fabricator & Installers Connect GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 44: Meets & Engagements – Contractors, Fabricator & Installers Connect
Meets & Engagements – Contractors, Fabricator & Installers Connect GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 45: Meets & Engagements – Carpenter Meets & Training Program
Meets & Engagements – Carpenter Meets & Training Program GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 46: Meets & Engagements – Dealer Connect
Meets & Engagements – Dealer Connect GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 47: Meets & Engagements – Dealer Connect
Meets & Engagements – Dealer Connect GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 48: Meets & Engagements – Dealer Connect – Women's Day Celebration
Meets & Engagements – Dealer Connect – Women’s Day Celebration GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 49: International Exhibition – Interzum – Germany
International Exhibition – INTERZUM’ 17 – GERMANY GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 50: International Exhibition – Sicam Italy
International Exhibition – Sicam ITALY GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 51: International Exhibition – Sicam Italy
International Exhibition – Sicam ITALY GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 52: International Exhibition At Malaysia (APAC)
International Exhibition At Malaysia (APAC) GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 53: International Event – Design For Tomorrow At Thailand (APAC)
International Event – Design For Tomorrow At THAILAND (APAC) GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 54: Exhibition – ACETECH – India
Exhibition – ACETECH – INDIA GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 55: Brand Stores & Experience Centres
Brand Stores & Experience Centres GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 56: Accolades
Accolades 100 Most Power Brand Master Brand Valuable Brand Largest 1st Non American 1st laminate Brand to get company in the Exporter Green Guard country to trade Award FSC® product Certification GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 57: GST Compliant – Benefits
GROWTH OPPORTUNITIES|READINESS| BEYOND GST Compliant Benefits GST has eliminated multiple taxes Enhance the spectrum of the input tax credit for us GST implementation is likely to benefit the overall industry Shift from unorganised to organised market In line with the regulatory requiremen
Slide 58: GST Compliant – Products Post and Pre GST
GROWTH OPPORTUNITIES|READINESS| BEYOND GST Compliant Products Post – GST Pre – GST Decorative Laminates 18% Decorative Veneers 28% 12.5 % Excise + Prelaminated (MFC) Particle Board 28% 12.5 % to 14.5 % VAT Engineered Wood Floor 18% Engineered Door Sets (Door + Frames) 28% GREENLAM INDUSTRIES LIMITED
Slide 59: Beyond
Beyond GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 60: Outlook
GROWTH OPPORTUNITIES|READINESS| BEYOND Outlook Network Product Brand • Ensure that we are • Improve the value mix • We consistently focus on present in relevant District • Creativity and innovations investing in our 360 HQ towns for all product in creating new products degree marketing and categorie
Slide 61: Consolidated Financial Performance
Consolidated Financial Performance* * All quarterly financial data is as per IND-AS GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 62: Performance Update – FY17
Consolidated Financial Performance Performance Update – FY17 Revenue at INR 1,076 crores against INR 1,030 in FY 16, growth of 4.5% FY17 Segmental Revenue Gross Margin at 47.3% against 47.8% in FY16 Decorative Veneer & Allied EBIDTA stood at INR 141.3 crores against INR 129.5 crores in FY16, 1
Slide 63: Performance Update – Q1FY18
Consolidated Financial Performance Performance Update – Q1FY18 Revenue stood at INR 277.8 crores for Q1FY18 against INR 263.3 in Q1FY17, growth of 5.5%, led by 18.6% growth in domestic revenues Q1FY18 Segmental Revenue Decorative Veneer Gross Margin at 48.1% against 48.5% in Q1FY17 & Allied 13%
Slide 64: Profit and Loss Statement
Consolidated Financial Performance Profit and Loss Statement INR Crores Q1FY18 Q1FY17 YoY% FY17 FY16 YoY% Revenue 277.8 263.3 5.5% 1,075.9 1,029.7 4.5% Raw Material 144.2 135.6 566.7 537.3 Gross Profit 133.6 127.7 4.6% 509.2 492.4 3.4% Gross Margin % 48.1% 48.5% -40 bps 47.3% 47.8% -50 bps Employee
Slide 65: Laminates & Allied Segment
Consolidated Financial Performance Laminates & Allied Segment INR Crores Q1 FY18 Q1 FY17 YoY% FY17 FY16 YoY% Net Revenue from Operations 242.9 231.6 4.9% 937.6 890.4 5.3% Gross Profit 114.7 110.7 3.6% 438.3 418.8 4.7% Gross Margin % 47.2% 47.8% -60 bps 46.7% 47.0% -30 bps EBIDTA 30.8 31.8 -3.3% 138.
Slide 66: Laminates & Allied Segment – Production and Sales
Consolidated Financial Performance Laminates & Allied Segment Production and Capacity (Mn Sales (Mn Sheets) Average Realisation (INR / Sheet) Sheets) +16.6% +6.5% -0.8% 3.58 3.08 3.28 718 3.01 3.07 3.01 712 Q1FY17 Q1FY18* Q1FY17 Q1FY18 Q1FY17 Q1FY18 Capacity Production +7.1% +6.8% -1.3% 11.02 11.79
Slide 67: Veneers & Allied Segment
Consolidated Financial Performance Veneers & Allied Segment INR Crores Q1 FY18 Q1 FY17 YoY% FY17 FY16 YoY% Net Revenue from Operations 34.8 31.7 10.0% 138.3 139.3 -0.7% Gross Profit 18.9 17.0 11.0% 70.9 74.4 -4.8% Gross Margin % 54.1% 53.6% 50 bps 51.2% 53.4% -220 bps EBIDTA 2.0 -1.7 - 2.8 10.1 -72.
Slide 68: Decorative Veneers
Consolidated Financial Performance Decorative Veneers Production and Capacity Sales Average Realisation (Mn Sqmt) (Mn Sqmt) (INR / Sqmt) -3.0% -11.4% +2.1% 1.05 1.05 0.35 765 781 0.31 0.33 0.32 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Capacity Production -18.6% -13.8% +2.8% 4.20 4.20 1.59 763 784 1
Slide 69: Engineered Doors and Floors
Consolidated Financial Performance Engineered Doors and Floors Revenue (INR Crores) EBITDA (INR Crores) Capacity Utilization 6.5 12.1% -0.6 4.1 -1.1 8.4% 8.4% 3.3 -1.7 1.9 3.5% -3.4 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Floors Doors Floors Doors Floors Doors 18.0 12.0% 16.3 12.3 -2.6 -3.2 7.0% 7
Slide 70: Geographic Segments
Consolidated Financial Performance Geographic Segments Domestic (INR Crores) Exports (INR Crores) +18.6% +3.9% -9.7% +5.2% 168 575 597 122 479 110 455 142 Q1FY17 Q1FY18 FY16 FY17 Q1FY17 Q1FY18 FY16 FY17 * All quarterly financial data is as per IND-AS GREENLAM INDUSTRIES LIMITED BEYOND!
Slide 71: Operating Parameters
Consolidated Financial Performance Operating Parameters ROCE* ROE* Net Working Capital Days 16.2% 17.2% 100 86 89 12.7% 13.4% 63 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Q1FY17 Q1FY18 FY16 FY17 INR Crores Q1FY17 Q1FY18 In Days Q1FY17 Q1FY18 FY16 FY17 Revenue 263.3 277.8 Inventory 89 84 88 77 EBIT 21.4 24.8 Debto
Slide 72: Balance Sheet
Consolidated Financial Performance Balance Sheet (INR Crores) Liabilities Mar – 17 Mar – 16 (INR Crores) Assets Mar – 17 Mar – 16 Shareholder’s Fund 290.7 245.1 Non-Current Assets 352.1 362.7 Share capital 12.1 12.1 Fixed assets 346.2 357.2 Reserves & Surplus 278.6 233.0 6.0 5.5 Other Non-Current As
Slide 73: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Strategic Growth Advisors Pvt. Ltd. Greenlam Industries Ltd. CIN: U74140MH2010PTC204285 CIN: L21016AS2013PLC011624 Mr. Shogun Jain / Ms. Ruchi Rudra Mr. Ashok Sharma - CFO shogun.jain@sgapl.net / ruchi.rudra@sgapl.net E
Greenlam Industries — Q1 FY2018 Earnings Presentation on 6ix