Greenply Industries Ltd · NSE:GREENPLY
Greenply Industries — Q1 FY2014 Earnings Presentation
53 slides from Greenply Industries's earnings presentation, Jul 26, 2013
Slide 1: Analyst Meet Presentation Q1 FY 2014 & FY 2013 Results
+ Analyst Meet Presentation Q1 FY 2014 & FY 2013 Results 26th July 2013
Slide 2: Safe Harbor
+ Safe Harbor 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 ex
Slide 3: Presentation Structure
+ Presentation Structure Environment & Growth Drivers Numbers Speak: Segmental Review Industry Overview Capacity Review Greenply at a glance Financials Our Green Credentials Initiatives Investment Highlights
Slide 4: Environment
+ Environment Global Environment Crisis in Eurozone, economies continue struggle with Debt Crisis US economy showing signs of recovery, threat of fiscal cliff continues Political crisis in the Middle East, Downtrend in China, Downtrend in Indian Economy GDP growth at 5% for FY 2013 Vs 6.9%
Slide 5: Growth Drivers
+ Growth Drivers Per Capita income estimated to have risen 11.7% to Rs 68748 in 2012-2013 The per capita income in real terms (at 2004-05 constant prices) during 2012-13 is likely to attain a level of Rs 39,143 as compared to Rs 38,037 in 2011-12.
Slide 6: Growth Drivers: Young Population
+Growth Drivers Young Population India has a young population with average age of 24 years, leading to higher disposable incomes in the hands of those with aspirations for a better lifestyle and stylish interiors.
Slide 7: Growth Drivers: Rising Urbanisation
+ Growth Drivers Rising Urbanisation 40% of population (currently 37%) will live in urban areas by 2030 Real estate sector is expected to grow to USD 180 billion by 2020 Tier II & III cities and towns to witness Realty boom
Slide 8: Growth Drivers: Rising Millionaire Households
Growth Drivers Rising Millionaire Households Expected to grow from 2.86 lacs to 6.94 lacs between 2011 and 2020, at a growth rate of 143%.
Slide 9: Real Estate Growth Drivers
+ Real Estate Growth Drivers India will require 1.8 million Office space supply in top Tourist arrivals in India is beds by 2025 to reach its eight Indian cities is expected to increase to 11.1 targeted ratio of 2 beds per expected to reach 180 million in 2021 from 6.29 1000 people with an million s
Slide 10: Industry Overview
+ Industry Overview
Slide 11: Industry at a glance
Industry at a glance Rs. in Crores Industry Size: Rs. 23500 Cr 3500 4000 5-7 % 16000 Plywood Laminate MDF & particle Board
Slide 12: Organized vs. Unorganized share
Organized vs. Unorganized share Rs. in Crores 14000 12000 10000 12800 8000 6000 4000 1600 0 2000 3200 3500 2400 0 Plywood Laminate MDF & Particle board Organised Unorganised There is no un-organised segment in MDF. The segment consists of Domestic manufacturers and imports with an import content of
Slide 13: Industry Growth over Greenply Growth
+ Industry Growth over Greenply Growth Industry has grown at 5-7% over the five years from FY 2008 to FY 2013 Clear preference shift for branded products in the market that has led to a decline in market share of the unorganized sector Organised players have grown at 15-20% over the same perio
Slide 14: Greenply at a glance
+ Greenply at a glance
Slide 15: About Greenply
+ About Greenply With a consolidated turnover of Rs.2044 crs. ($376.56 million) in FY 2013, we are the largest company in the interior infrastructure space. We are the only integrated manufacturer in the industry catering to all the product segments of interior infrastructure industry. 7 State
Slide 16: Our Market Ownership
+ Our Market Ownership 33% of India’s organised Plywood market 28% of India’s organised laminates market 34% of India’s MDF market
Slide 17: About Greenply (Contd.)
+About Greenply (Contd.) Pan India presence with 46 marketing offices across 21 Indian states, presence in more than 70 countries and over 4800 employees. Greenply offers the largest range of products through widest network of 14000+ retail outlets. Greenply Industries is the undisputed Market l
Slide 18: Our Capacities
+ Plywood : 32.40 million sq meters Our Capacities Tizit: 4.50 mn. Sqm Kriparampur: 6.00 mn. Sqm Pantnagar: 10.50 mn. Sqm Bamanbore: 11.40 mn. Sqm Laminate : 10.02 million sheets Behror: 5.34 mn sheets Nalagarh 4.68 mn sheets Natural Decorative Veneers: 4.20 million sq meters Behror MDF: 180000 Cubi
Slide 19: Flagship Brands
+ Flagship Brands
Slide 20: 3rd Largest Laminate Company Globally
+ Today, Greenply is the Largest laminate company in Asia and 3rd largest Globally (by production volumes)
Slide 21: Segmental Review
+ Segmental Review
Slide 22: Plywood & Allied Products
Plywood & Allied Products Rs. in Crores Particulars Q1FY14 Q1FY13 % Change FY13 FY12 % Change Net Sales 228.25 202.71 12.60 940.17 815.58 15.28 EBIDTA Margin (%) 9.87 9.79 8 bps 10.56 9.82 74 bps Particulars Q1FY14 Q1FY13 % Change FY13 FY12 % Change Annual Capacity (mn.sq.m.) 32.40 28.35 32.40 28.35
Slide 23: Plywood & Allied Products (FY 2013 Highlights)
+ Plywood & Allied Products (FY 2013 HIGHLIGHTS) Increased production by 6.66% to 34.28 million sq meters; overall capacity utilisation of 106% on enhanced capacity of 32.40 mn square meters. Enhanced sales from 38.02 mn square meters in FY 2012 to 41.54 mn square meters in FY 2013 Grew 15.28%
Slide 24: Laminates & Allied Products
Laminates & Allied Products Rs. in Crores Particulars Q1FY14 Q1FY13 % Change FY13 FY12 % Change Net Sales Laminates & Allied Products 175.11 153.70 13.93 683.34 582.98 17.22 EBIDTA Margin (%) 11.44 13.05 (161 bps ) 11.90 11.27 63 bps Particulars Q1FY14 Q1FY13 % Change FY13 FY12 % Change Annual Capac
Slide 25: Laminates Segment (FY 2013 Highlights)
+Laminates Segment (FY 2013 Highlights) Grew 13.65% in value terms and 7.37% in volume terms. Increased production to 10.37 mn sheets in FY 2013 from 9.92 mn sheets in FY 2012; achieved capacity utilisation of 104%. Average Realisation of Laminates increased by 13.65% to Rs 566 per sheet to Rs
Slide 26: Greenlam Asia Pacific Pte Ltd.
+ Greenlam Asia Pacific Pte Ltd. Revenue in SGD (Mil) 40.00 35.36 34.66 35.00 30.00 25.00 20.00 Revenue 15.00 10.00 8.62 5.00 - 2012 2013 2014 Q1 * GAP Net Profit 2012 2013 SGD 176,560 SGD 115,917
Slide 27: Greenlam America Inc.
+ Greenlam GreenlamAmerica Inc. America Inc. Revenue In (Mil) Revenue in USD USD (Mil) Revenue 9.00 8.52 8.00 6.84 7.00 6.00 5.00 4.00 Revenue 3.00 1.84 2.00 1.00 - 2012 2013 2014 Q1 * GAI Net Profit 2012 2013 USD 108,217 USD 690,008
Slide 28: Overseas Subsidiary Highlights
+ Overseas Subsidiary Highlights • Revenue growth in Asia Pacific from SGD 19.69 Mil in FY 2009 to SGD 34.66 in FY 2013 at a CAGR of 15.18%. • Revenue growth in America from USD 1.31 Mill in FY 2009 to USD 8.52 in FY 2013 at a CAGR of 59.70%. • Opened own stock points in Hong Kong & Taiwan in FY 201
Slide 29: Laminate Plant at HP
+ Laminate Plant at HP. The plant is situated in a tax-efficient location. The plant manufactures compact laminates in thickness ranging from 4 mm to 25 mm & in dimensions up to 6‟ x12‟ and laminates in different dimensions such as 5‟X12‟, 4.25‟x10‟, apart from the traditional (4‟ x 8‟). This ha
Slide 30: Medium Density Fibreboards (MDF)
Medium Density Fibreboards (MDF) Rs. in Crores Particulars Q1FY14 Q1FY13 % Change FY13 FY12 % Change Net Sales 77.14 74.12 4.07 374.18 243.72 53.53 EBIDTA Margin (%) 24.00 22.62 138 bps 21.61 15.42 619 bps Particulars Q1FY14 Q1FY13 % Change FY13 FY12 % Change Annual Capacity (CBM) 180000 180000 1800
Slide 31: Medium Density Fibreboards (FY 2013 Highlights)
+ Medium Density Fibreboards (FY 2013 Highlights) Increased production by 35.12% to 157948 CBM Increased production by 30.57% of Pre-Laminated MDF Boards Achieved overall capacity utilization of 88% in FY 2013 Grew 53.53% in value terms to Rs 374.18 crores in FY 2013 Increased average real
Slide 32: Medium Density Fibreboards (MDF)
+ Medium Density Fibreboards (MDF) MDF is a very versatile product with wide applications, primarily in paneling, wide range of furniture, windows & doors frames, handicraft industry, display or exhibition stands and signage's, false ceiling, toys, carving & molding panels, partitions, shoe indust
Slide 33: Medium Density Fibreboards (MDF)
+ Medium Density Fibreboards (MDF) Unit received FSC Certification of Controlled Wood and Chain of Custody. It is also working on new resin technology to meet worldwide standards on formaldehyde and emissions and obtain E-1 and CARB certifications. This plant is based on the latest Continuous Pr
Slide 34: Capacity Utilization: Plywood
+ Capacity Utilization Plywood 40 119% 125% 113% 35 115% 106% 105% 30 mn.sq.m. 95% 25 85% 20 75% 15 65% FY 11 FY 12 FY 13 Capacity Production Utilisation Rate
Slide 35: Capacity Utilization: Laminates
+ Capacity Utilization Laminates 11 110% 10 99% 104% 105% 9 8 100% mn.sheets 7 94% 95% 6 5 90% 4 85% 3 2 80% FY 11 FY 12 FY 13 Capacity Production Utilisation Rate
Slide 36: Capacity Utilisation: Medium Density Fibreboards
+Capacity Utilisation Medium Density Fibreboards 180000 100% 88% 160000 90% 140000 80% 70% mn.sq.m. 120000 65% 60% 100000 50% 80000 40% 60000 30% 40000 15% 20% 20000 10% 0 0% FY 11 FY 12 FY 13 Capacity Production Utilisation Rate
Slide 37: Financial Highlights
+ Financial Highlights
Slide 38: Financial Highlights Q1 FY 2014
+ Financial Highlights Q1 FY 2014 Net Sales up by 11.60% at Rs. 480.50 crores Plywood & Allied Products : Rs. 228.25 crores, up by 12.60% Laminates & Allied Products : Rs. 175.11 crores, up by 13.93% Medium Density Fibre-Boards : Rs. 77.14 crores, up by 4.07% EBIDTA (excluding currency gai
Slide 39: Performance Snapshot 2013
+ Performance Snapshot 2013 Greenply's top line growth of 22% outperformed India's GDP Growth of 5% and construction industry NET Sales Increased by 21.64% growth of 6% EBIDTA MARGINS STRENGTHENED BY 193 BPS NET PROFIT UP BY 114.02%.
Slide 40: Financial Highlights FY 2013
+ Financial Highlights FY 2013 Net Sales up by 21.64% at Rs. 1997.69 crores Plywood & Allied Products : Rs. 940.17 crores, up by 15.28% Laminates & Allied Products : Rs. 683.34 crores, up by 17.22% Medium Density Fibre-Boards : Rs. 374.18 crores, up by 53.53% EBIDTA (excluding currency gai
Slide 41: Consolidated Financial Highlights FY 2013
+ Consolidated Financial Highlights FY 2013 Net Sales up by 19.79% at Rs. 2044.06 crores EBIDTA (excluding currency gain/loss) up by 44.04% at Rs 273.48 crores EBIDTA Margin increased by 225 basis points to 13.38% PAT up by 111.02% at Rs. 119.66 crores PAT Margin stood at 5.85% Vs 3.32%.
Slide 42: Financial Performance
+ Financial Performance Rs. in Crores Particulars FY2013 FY2012 Key Ratios ROCE (%) 18.30 11.54 RONW (%) 23.94 14.40 Net Debt / Equity (x) 1.35 1.85 Working Capital Cycle (Days) 69 90 Update on Balance Sheet Particulars FY2013 FY2012 Tangible Net Block 643.46 615.64 Net Worth 476.87 370.95 Total Deb
Slide 43: Sales Break Up
+ Sales Break Up FY13 Medium Density FY12 Fibreboards 19% Medium Density Plywood & Allied Fibreboards Products 15% 47% Laminate & Allied Products Laminate & Plywood & 34% Allied Products Allied Products 35% 50%
Slide 44: Growth Momentum
+ Growth Momentum NET SALES EBIDTA CAGR 29.82% 1800 200 CAGR 26.28% 1600 1400 150 1200 1000 800 100 600 400 50 200 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12
Slide 45: Our Sustainable Acts
+ Our Sustainable Acts Formulated Green Strategy Group (GSG) –Nodal agency to create, sustain and harness the „Green Initiatives‟ across the entire value-chain of the Organization. Key Role Monitor environment impact on value chain Reduce carbon footprints Incorporating Clean technologies Build
Slide 46: Giving Back to The Planet
+ Giving Back to The Planet Provides an additional source of income to farmers Involved in planting close to 0.5 Million saplings in the tribal areas of Nagaland •
Slide 47: Our Green Credentials
Our Green Credentials 1st non US Company, to 1st Indian Brand to be Only one in the industry to First Indian Brand All manufacturing Facilities bag the coveted certified by to get certified with use are GREENGUARD certificate for FSC (C-O-C) GREEN LABEL Bio-Mass in the ISO 14001, 18000 Indoor Air Qu
Slide 48: Product Initiatives
+ Product Initiatives Plywood Added Green Compressed Ply into the product basket. Introduced products in the technical plywood segment for transportation industry MDF Launched veneered MDF under the brand banner of Green Panel Max Commenced the production of thin MDF (2.5mm-8mm) Laminates & Deco
Slide 49: Marketing Initiatives
+ Marketing Initiatives Launched 4 new Green Design Studios ( signature store) to give customer a world class shopping experience for interior related products Strengthened BTL drives to improve brand presence and visibility at the trade level & through various other activities like sponsorships
Slide 50: 360 Degree Brand Building Approach
360 + Degree Brand Building Approach TV Successful brand campaign for Greenlam & Greenply Plywood brands Outdoor • 360 degree approach to make the consumer Aware, Talk & Connect. Print • Each of the media vehicle has been planned to drive better realization & commercial synergy. Cinema • Engage with
Slide 51: IT & HR Initiatives
+ IT & HR Initiatives IT Initiatives Implemented applications like Barcode Technology for its laminate plants for effective tracking of the product movement; Started working on Customer Relationship Management initiatives to enhance customer relationships and maximize effectiveness of sales force.
Slide 52: Investment Highlights
+ Investment Highlights Established brands with strong presence and market share Increasing utilization and change in product-mix at new plants would substantially boost revenues and profits in the next 2 years Existing business is expected to grow at 12-15% Recovery in residential and comme
Slide 53: Thank You
+ Thank You Corporate Office: Phone: +91 33 3051 – 5000 16A, Shakespeare Sarani, New B.K. Market, 2nd Fax: +91 33 3051-5010 Floor, Kolkata – 700 071, West Bengal, India investors@greenply.com www.greenply.com
Greenply Industries — Q1 FY2014 Earnings Presentation on 6ix