Orient Bell Limited · NSE:ORIENTBELL
Orient Bell — Q4 FY2021 Earnings Presentation
34 slides from Orient Bell's earnings presentation, May 13, 2021
Slide 1: Covering letter to stock exchanges
sporientoell tiles OBL:HO:SEC:00: New Delhi : 13.05.2021 BSE Limited National Stock Exchange of India Ltd. Corporate Relation Department Exchange Plaza, 1st Floor, New Trading Ring Plot No. C/1, G Block, Rotunga BuildingPhiroze Jeejeebhoy Towers Bandra-Kurla Complex, Dalal Street, Bandra (E) Mumbai
Slide 2: Shape Up Scale Up – Investor Presentation Q4 & 12MFY21
Beenie tiles Shape Up Scale Up Investor Presentation Q4 & 12MFY21
Slide 3: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements relating to Orient Bell Ltd. and its future business, development and economic performance. These statements include descriptions regarding the intent, belief or current expectations of the Company, its subsidiaries and asso
Slide 4: Contents
Contents 01 Overview and Q4 & 12MFY21 highlights 02 The journey of shaping-up 03 Next phase: scaling-up 04 Historical financial performance _ yorientbdell
Slide 5: Overview and Q4 & 12MFY21 Highlights
cz 117 TS] rT = 1 a : ‘el TO deat one ine —_ | Overview and Q4 & ry 12MFY21 Highlights x - — ail yp crientbell
Slide 6: OrientBell Limited — a leading manufacturer of tiles
OrientBell Limited — a leading manufacturer of tiles aall O.5. fa Wa! Vs 4% 365 =" Ceramic " Vitrified Oo OO O = Double Charge AA 5 3 000+ " Cool Tile , =" Pavers = Germ Free Tile Years in SKUs = Anti Static 3 State-of-the-art own Facilities Ceramics Industry 2 JV Facilities eS nts «> L.-J + é ooo v
Slide 7: A Time tested pedigree
A Time tested pedigree severe seem hE ttre 1977-05 2006-10 2010-16 2017-19 2020... 1977 - 2007 — 2011 — 2017 — Appointed SRBC for GST Incorporated as a_ public = Achieves turnover of 200 = Awarded Power Brand = New brand identity. Audit. limited company. crores. Status. = 100th OBTB launched. Digiti
Slide 8: Business Environment — Full Year FY21
Business Environment — Full Year FY21 "Q1 impacted due to lockdown, economic activities resumed in a phased manner post Unlock. "Demand : = Domestic demand better than anticipation — smaller towns and projects picked up faster =" CP’s preferred branded products over Morbi for continuity of supplies
Slide 9: Operational highlights of FY21... 1 of 2
Operational highlights of FY21... 1 of2 Business resumed with strict enforcement of safety protocols + strong focus on fixed cash costs (saved +30% over normalized baseline of Q4FY20) and cash flows (overall debt at end June-20 lower than Mar-20). = Sales force increased by 10%. Teeth to tail ratio
Slide 10: Operational highlights of FY21... 2 of 2
Operational highlights of FY21... 2 of2 # Building focus on Architect & Influencer segments with 69 new OBTB’s additions, highest in a single year (OBTB count as on 31-Mar-21 : 230) ; Displays in existing OBTB refreshed as well. = Ashwamedha Project 2.0 — 414 CP’s added - 10% of FY21 total sales . =
Slide 11: Q4FY21 and 12MFY21 Consolidated financial highlights
Q4FY21 and 12MFY21 Consolidated financial highlights Q4FY21 Q4FY21 Q4FY21 Q4FY21 Volumes Revenue EBITDA ANE +37% +43% +178% +63% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Revenue (Rs Cr.) Volume (Lac m7?) =O HB Own 491 500 wn 507 309 m JV + Trading m JV + Trading 180 126 54 cy) 58 Vw) 118 68 30.1 Q4FY20 Q4FY21 FY20 F
Slide 12: 12MFY21 consolidated financial highlights
12MFY21 consolidated financial highlights 12M FY21 12M FY21 Revenue EBITDA +1% +2% +18% +8% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Product Wise Salience EBITDA (Rs Cr.) PAT (Rs Cr.) Revenue Mix ele FY20 FY21 aE FY20 FY21 ah FY20 FY21 Ceramic = Vitrified “FY20 @FY21 OFY20 mw FY21 11 _ yorientbdell
Slide 13: Consolidated Abridged Income statement
Consolidated Abridged Income statement (Rs. Crore) Q4FY20 Q4FY21 Vee 12M FY20 12M FY21 Revenue from Operations 126.8 0. 181.5 0 43.2% 2 492.320. 502.5: 2.1% Other Income ee 235. 0.6: 74.5% 2 5.22. 1.9: 64.5% __. Operating Expenses 122.0: 00! 162.6 2 33.2% 466.220 467.3: 0.2% | EBITDA 7.0 : 19.5: 177
Slide 14: Consolidated Abridged Balance Sheet
Consolidated Abridged Balance Sheet Rs. Crores Liabilities uity Share Ca Other Equ Net Worth Borrowin Trade bles Other Liabilities Liability for Lease Assets Total Liabilities Assets Plant and Equipment Lease Assets Investments Inventories Trade Receivables Cash & Cash Equivalents Others Assets Tota
Slide 15: Journey of shaping-up
Journey of shaping-up
Slide 16: Consolidated Financial comparison for last 4 quarters
Consolidated Financial comparison for last 4 quarters EBITDA and EBITDA Margin 8.2% iO 8% TOTAL REVENUE (IN RS CRORES) . | | | / -20.6% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Ga EBITDA == EBITDA Margin PAT & PAT Margin (%). 1% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 -26.7% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
Slide 17: Key Strategies driving Shaping Up
Key Strategies driving “Shaping Up” REVAMPED INCREASED PRODUCT OPTIMIZED WIDENED BRAND BUILDING STRENGTHENED LEADERSHIP TEAM OFFERING MANUFACTURING DISTRIBUTION BALANCE SHEET NETWORK Team with diverse New categories to fill Major improvements Building awareness Brought down debt Empaneled new experi
Slide 18: Revamped leadership team with diverse experience
oa Revamped leadership team with diverse experience Reorganization of top-level management poised to lead the company into new phase of sustainable growth Leaders with a mix of strategic focus, deep customer understanding and ability to execute. Aditya Gupta Anil Agarwal Chief Executive Officer polr
Slide 19: Product Portfolio - A Structured Approach
2 Product Portfolio- A Structured Approach l VY 8 New Product Ranges— 17%+ of sales. Product Mix FY21 Vv Market research to select designs. 59% 41% Ceramics Vitrified Y Solution based strategy — Germfree tiles 5% of sales. Y Focus on High Value. Wall Tiles Polished Vitrified v Innovative Tiles (pate
Slide 20: Revamping manufacturing to improve competitive advantage
3 Revamping manufacturing to improve competitive advantage 3 own manufacturing plants + 2 JV plants with a capacity of 30 million sq meters p.a spread across India. ae as Le Enhanced productivity through process improvement, ' / reduced wastage, quality checks & automation ba ~~ y Sikandrabad, UP ee
Slide 21: Enhancing Distribution Reach & Effectiveness
+’ Enhancing Distribution Reach & Effectiveness 3,000+ 2,000+ Improved Distribution & Channel engagement SKUs Channel Partners CXO led meetings with channel partners to establish 230 connect, resolve issues and identify growth opportunities. Project to add new Channel Partners (Ashwamedha 2.0) — Ori
Slide 22: Build Brand Awareness and Preference
sa Build Brand Awareness and Preference VY Consumers today spend more time on their mobiles than on TV. Our brand-building approach is to meet consumers where they are with content that they can engage with. kn Py ase) BRAND EQUITY com Presents From The Economic Tim In Conversation With # ~NEWSY LON
Slide 23: Build Brand Awareness and Preference by Making Purchase Easier
Sb Build Brand Awareness and Preference By Making “Purchase of Tile” Easier ah sel tll a Vv Developed various tools to simplify the tiles buying process anee ale ee Finding similar tiles is just a picture away and address typical friction-points. c, Search by Photo a Now Shop Tiles While Staying Ind
Slide 24: 2020: Recognition of our Approach
5c 2020: Recognition of our Approach THE Economic TEs KX : WRETAIL z — omuni : — EXTERIOR ! z Best Website Best omni- of the Year channel Model & [Es Google Case Study INTERIOR making an example out of our best practice a a a Brand of the Year to build ncy Booste Re-engagement e = Orientbell Tiles (
Slide 25: Strengthened Balance Sheet
6 Strengthened Balance Sheet I Debt reduction I Working Capital Improvement I I CCC reduced further by 40 days vs LY In Days In Rs Cr l Cash Rs 50.9 cr | 101.0 l [ I [53] [ Net Debt |! I Rs (-) 19.0 cr I 51.2 l r | { | yh) | 31.9 I ] I sod J | 7 31-Mar-19 31-Mar-20 | 31-Mar-21 I I I m Short Term Deb
Slide 26: Next phase: scaling-up
Next phase ite scaling-up yg Crientbell
Slide 27: Scaling-up strategy for accretive value creation
Scaling-up strategy for accretive value creation Focus on 4 pillars to build customer preference for OBL Retention of key talent. Add Orient Bell tile boutiques in Capture customer feedback and Aggressive brand building Performance linked incentives for focus geographies. changing trends to differen
Slide 28: OBL - Recipe for success
OBL- Recipe for success CONNECTED / Great Team 24/7 Information Training & Development Digital Tools - OBL Executive/ Connect - i learn - Saarthi - OBL Executive/ Connect - Tru look/ Same look/ Trialook - Quick Look _porientoell tiles Products Brand Pull - High Quality -Wide Range 27 _yorientbell
Slide 29: Drivers to support growth
Drivers to support growth © Positive impact of falling home loan rates and reduction in trust deficit. Tiny deen) © Covid-19 has increased demand for home improvements & preference for bigger domestic demand homes. © Trend of governments providing relief to realty sector. ® Global customers are look
Slide 30: Ensure sustainable and responsible growth
Ensure sustainable and responsible growth Protecting environment Contributing to society Responsible governance Reduced water consumption by Sponsored 175+ number of Schools to Experienced Board of directors. i rainwater harvesting. 6 support education through our CSR programmed Empowered senior lea
Slide 31: Historical Financial performance
Historical Financial performance
Slide 32: Historical consolidated profit & loss statement
Historical consolidated profit & loss statement Revenue from operation 648.0 571.1 492.3 Other Income 2.4 1.9 5.3 Cost of Goods Sold 287.7 256.7 236.3 Employee Benefit Expense 76.1 75.7 73.6 Other Expenses 237.1 201.8 156.4 Total Operating Expenses 600.8 534.1 466.2 EBITDA 49.6 39.0 31.3 EBITDA marg
Slide 33: Consolidated balance sheet
Consolidated balance sheet Share Capital 14.3 14.3 Fixed Assets incl. CWIP 218.1 225.5 Right-of-use assets 7.0 7.9 Non-Current Investments 7.0 7.0 Other Non Current Assets 4.5 4.0 Long Term Provisions Trade Payables mmf 82.7 | 8 Trade Receivables 67.8 86.9 Lease Liabilities 2.0 2.2 wa eeecceececeece
Slide 34: Thank You
Thank You Orient Bell Limited Mr. Himanshu Jindal — CFO Mr. Ashish Kapur — AGM Treasury, Investor Relations & Corporate Finance +91-11-4711-9100 (B) investor@orientbell.com www.orientbell.com orientbell tiles Pareto Capital (Investor Relations) Ms. Pooja Dokania pooja.dokania@paretocapital.in Mr. Ri