Slide 1: Pidilite Industries Limited Investor Presentation
Pidilite Industries Limited Investor Presentation Feb 2011 0 PDF created with pdfFactory trial version www.pdffactory.com
Slide 2: Disclaimer
Disclaimer This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views being expre
Slide 3: Index
Index Investment Highlights Business Overview Financial Performance Project Update Key Trends 2 PDF created with pdfFactory trial version www.pdffactory.com
Slide 4: Investment Highlights
Investment Highlights Operation Strong Financial Market Position Excellence Performance ü Leading household ü Pioneer in consumer ü Track record of growth brand in its category. and specialty industrial chemicals. ü Market leader in most ü Well established R&D ü Consistent Dividend set up. payout pr
Slide 5: Strong Performance track record
Investment Highlights Strong Performance track record Turnover - Rs mn EBITDA-Rs mn 4041 20487 19312 17248 2788 13081 2422 10617 1905 1602 FY'06 FY'07 FY'08 FY'09 FY'10 FY'06 FY'07 FY'08 FY'09 FY'10 ROCE -% 30% 29% • Turnover has grown by 18% CAGR in last 5 27% 27% years. • Difficult economic scenar
Slide 6: Consistent Dividend Payouts
Investment Highlights Consistent Dividend Payouts 50.0% 39.7% 40.0% 36.9% 35.4% 30.2% 30.0% 27.5% 20.0% 10.0% 0.0% 2005-06 2006-07 2007-08 2008-09 2009-10 Dividend Payout Ratio Note : Dividend Payout =Dividend (incl Dividend Tax) / PAT 5 PDF created with pdfFactory trial version www.pdffactory.com
Slide 7: Key Milestones
Business Overview Key Milestones Establishing Overseas Subsidiaries • Consumer Product • Singapore Division established, • Dubai • Nationwide • Mumbai, Vapi and Distribution set up Mahad plants got ISO • USA Commissioning of certifications • Brazil Acron brand of • Fevicol ranked as Top • Thailand P
Slide 8: Diversified Business: Mix of different product and customers
Business Overview Diversified Business : Mix of different product and customers o Adhesive & Sealants (49% of Company’s revenue) Dominant market share across most products / categories. “Fevicol” ranked as #1 brand in Household Care segment Extensive distribution network Consumers and o Construction
Slide 9: Key Brands
Business Overview Key Brands Ø Adhesive & Sealant Ø Construction Chemical Ø Art Materials & Others 8 PDF created with pdfFactory trial version www.pdffactory.com
Slide 10: Increasing Global Presence
Business Overview Increasing Global Presence § Exports to more than 80 countries. Major exports to Middle East, Africa, USA & Europe § Export Turnover of Rs 1.9 Bn in FY’10 § CAGR growth of 25% over last 5 years § 14 Overseas subsidiaries – (4 Direct and 10 Step down) § Total Revenue from Overseas s
Slide 11: Strategically Placed Manufacturing Locations
Business Overview Strategically Placed Manufacturing Locations 19 Manufacturing Plants 25+ Job working Units q Units strategically located for operational synergies. 10 PDF created with pdfFactory trial version www.pdffactory.com
Slide 12: International Business
International Business • USA: − ‘Sargent Arts’ manufactures and sells educational art material. Acquired to get entry in high potential USA market, to get access to extensive range for sale in other Pidilite territories. − ‘Cyclo’ sells automotive after market chemicals for domestic and internationa
Slide 13: Q3 and YTD Performance
Financial Performance Q3 and YTD Performance Ø Sales for the quarter higher by 28% driven by robust growth in both domestic and export. Domestic sales were up by 27% whereas Exports were up 46% as compared to the same period last year. Ø Gross Profit for the quarter is up by 21% over last year. Marg
Slide 14: Q3 and YTD Segment Performance
Financial Performance Q3 and YTD Segment Performance Ø Consumer and Bazaar Segment : Adhesive & Sealant and Construction & Paint chemicals have shown good growth. PBIT to Sales for Q3 has improved over last year. Ø Industrial Products : Sales of Resins and Pigments for both domestic and internationa
Slide 15: Cash Flow
Financial Performance Cash Flow Ø Higher Operating Profit results in improvement in Gearing ratio. Ø Capex being stepped up to build capacity. Spend in PCR project in CY Rs. 257 mil (YTD Rs. 2905 mil). Ø Surplus cash invested in various short term debt instruments of Mutual Funds & Bank deposits. *
Slide 16: International Business
Financial Performance International Business Ø North America • At constant forex, Q3 sales are up by 16% mainly driven by automotive after market product sales. Price increases and control over costs has resulted in 94% ytd EBITDA growth at constant forex. Ø South America • At constant forex, Q3 sal
Slide 17: Share Price Performance
Financial Performance Share Price Performance 1,000 900 800 700 600 500 400 300 200 100 - Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- 05 05 05 06 06 06 06 07 07 07 07 BSE 08 08 08PIL 08 09 09 09 09 10 10 10 10 11 Outperforme
Slide 18: PCR Update
PCR Update Ø Civil work commenced for construction of plant. Ø Long lead time items ordered. Ø Target to commission in FY 2012 Ø Additional capex of Rs 140 cr. 17 PDF created with pdfFactory trial version www.pdffactory.com
Slide 19: Key Trends
Key Trends Ø Improving economic sentiment in India and developed markets like US / Europe. Ø Inflation emerging as major concern. Ø Excise duty rates, if increased to earlier levels, will impact margins. Ø Interest rates have hardened and expected to increase further. Ø Rural demand expected to rema