Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q4 FY2022 Earnings Presentation
36 slides from Asian Paints's earnings presentation, May 10, 2022
Slide 1: Investor Presentation filing cover letter
APL/SEC/32/2022-23/12 10th May, 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C/1, Phiroze Jeejeebhoy Towers, Block G, Bandra - Kurla Complex, 25th Floor, Dalal Street, Bandra (East), Fort, Mumbai – 400 001 Mumbai – 400 051 Scrip
Slide 2: Classification: Restricted Classification: Restricted
Classification: Restricted Classification: Restricted
Slide 3: Delivering joy since 1942
Classification: Restricted Delivering joy since 1942…. We exist to Beautify, Preserve, Transform all Spaces and Objects, bringing happiness to the World! Classification: Restricted
Slide 4: Disclaimer
Classification: Restricted Disclaimer This communication, except for the historical information, may contain statements which reflect the Management’s current views and estimates and could be construed as forward-looking statements. The future involves many risks and uncertainties that could cause a
Slide 5: Decorative Business (India) Q4 volume and value trend
Classification: Restricted Growth trajectory continued in Q4; Volume growth though in single digits, strong momentum evident from the double digit 2/3 year compounded growth rates Decorative Business (India) 3 Yr Comp. gr 16% 3 Yr Comp. gr 17% 2 Yr Comp. gr 26% 2 Yr Comp. gr 32% 48% 44% 21% 8% Volum
Slide 6: Decorative Business (India) robust FY22 performance
Classification: Restricted Volume Growth Value Growth Decorative Business (India) 31% FY 22 36% 8% Qtr 4 21% 18% Qtr 3 27% 34% Qtr 2 35% 106% Qtr 1 94% Robust performance in FY 2021-22 Classification: Restricted
Slide 7: Decorative Business (India) strong medium term growth trend
Classification: Restricted Double digit volume and value growth delivery from a 2 / 3 year perspective, despite a challenging environment Decorative Business (India) 3 Yr Comp. gr 18% 3 Yr Comp. gr 15% 2 Yr Comp. gr 22% 2 Yr Comp. gr 21% 36% 31% 13% 8% Volume Gr% Value Gr% FY21 FY22 Strong Medium Te
Slide 8: Decorative Business (India) growth drivers
Classification: Restricted ❖ Q4 as well as Full year growth led by ❖ T1/T2 centers: Good double-digit growths, especially in Luxury & Premium range ❖ T3/T4 : Good growth here as well; Double-digit growth in Economy range Decorative Business (India) ❖ Overall ❖ Growth dented in Jan’22; High double-di
Slide 9: World Class Innovations
Classification: Restricted World Class Innovations Ultima Allura Ultima Allura Graniza Torino ❖ World class Exterior Textures with an international range of more than 180 texture patterns ❖ Unique range, outclassing best in the world ❖ Suitable to Indian sensibilities and weather conditions Classifi
Slide 10: World Class Innovations
Classification: Restricted ❖ First time introduction in India of a Fire-Retardant category World Class Innovations ❖ A unique hydrophobic ‘Lotus Effect’ technology ❖ Matched with the best Anti-Stain Absorption or Removal performance ALL Protek Fire Retardant Paint ❖ First time introduction of Anti-C
Slide 11: New Product Introductions
Classification: Restricted New Product Introductions One of its kind, pioneering solutions for customers ❖ Simplified waterproofing and Efflorescence solution SmartCare HydroLOC with patented technology ❖ Unique waterproofing repair range Epoxy Apcoflur ❖ An Epoxy and Polyurethane Flooring Tech coat
Slide 12: Decorative Business (India) distribution and categories
Classification: Restricted ❖ Distribution Footprint ❖ Expansion in Big city suburbs and T3/T4 cities in a big way ❖ Co-existence of a unique Distributor and Direct Dealer model Decorative Business (India) ❖ Adding more than 15,000 retail points taking AP presence across 1,45,000 retail points ❖ Prod
Slide 13: Best in Class Painting Service
Classification: Restricted ❖ Best in Class Painting Service ❖ Unique Painting Service Model : Globally the biggest and best service model Decorative Business (India) ❖ Unparalleled Consumer delight measured through NPS ❖ Delivered through more than 1,50,000 trained painters ❖ Presence across 240 tow
Slide 14: Services – A Key Differentiator
Classification: Restricted Services – A Key Differentiator Classification: Restricted
Slide 15: Home Décor Business
Classification: Restricted Home Décor Business Classification: Restricted
Slide 16: Home Décor Foray
Classification: Restricted ❖ Home Décor Foray ❖ Asian Paints being a forerunner in inspirational and exciting Home Décor partnering the customers in making her dream home! ❖ Transitioning from ‘Share of Surface’ to ‘Share of Space’ within the Homes Home Décor Business ❖ Asian Paints providing Home D
Slide 17: Home Décor Acquisitions and Investments
Classification: Restricted ❖ Home Décor Acquisitions / Investments till now • Kitchen & Kitchen Hardware & Components: Sleek; A new factory in Maharashtra in 22-23 • Bath & Sanitary: Ess Ess; A new factory in Maharashtra in 22-23 • Designer and General Tiles: Green Field foray in 21-22 Home Décor Bu
Slide 18: Partnership with The White Teak Company
Classification: Restricted Home Décor - Partnership with “The White Teak Company” • Foray in the Rs. 1200 crores Decorative & Designer Lighting market • White Teak brings a strong ‘Phygital’ model • Operating 10 stores pan India across Tier 1 cities • Tech enabled Website provides unique experience
Slide 19: Partnership with Weatherseal
Classification: Restricted Home Décor - Partnership with “Weatherseal” • Rs 11,000 crores market size for Windows & Doors • End-to-end fabrication and installation of world-class uPVC windows & doors • Network of almost 20 COCO & Franchisee stores • Strong presence in Southern India • Association wi
Slide 20: Home Décor Business Trajectory
Classification: Restricted ❖ Home Décor Business Trajectory ❖ Home Décor business about 4% of the Deco Business in FY 21-22 Home Décor Business ❖ Attempting to make this 8-10% of the Deco Business by FY 25-26, including the Home Décor Services ❖ This we believe has a strong synergy with the core bus
Slide 21: Home Décor Kitchen and Bath Business
Classification: Restricted ❖ Kitchen Business ❖ Rs. 100 crores+ delivery for 3rd consecutive quarter Revenue ❖ Full Kitchen solutions as well as Components 55% 46% business doing well ❖ Projects business gaining traction Home Décor Business 410 17% 34% ❖ Network expansion continued in Full Kitchen d
Slide 22: International Business
Classification: Restricted International Business Classification: Restricted
Slide 23: International Business results
Classification: Restricted ❖ Double digit revenue growth for Q4 & full year Revenue ❖ Asia – Strong growth in Nepal, Bangladesh 29% ❖ Sri Lanka facing unprecedented forex crisis International Business 13% 18% 1,480 6% 8% 10% 11% 1% ❖ Africa – a weak spot; High inflation, regional 759 disturbances &
Slide 24: Industrial Business
Classification: Restricted Industrial Business Classification: Restricted
Slide 25: Industrial Business results
Classification: Restricted ❖ PPG-AP Revenue ❖ Good growth amidst challenges faced by the 32% Auto industry 51% ❖ Strong push for implementing price increases 1,444 19% Industrial Business 28% across B2B customers 794 ❖ AP-PPG 396 247 ❖ Closed the year with record revenue delivery PPG-AP Q4 FY AP-PPG
Slide 26: Exceptional Items Impacting Q4 and FY22
Classification: Restricted Exceptional Items Impacting Q4 and FY22 Expected credit loss on subsidies available from State governments ❖ Considering the delay in receipt of subsidy amounts from the State governments, an expense of Rs. 53.7 crores recognized as Exceptional Item, towards time value of
Slide 27: APL Standalone Gross Margins
Classification: Restricted Sequential improvement in Gross Margin from lows of 2nd Qtr. Full benefit of the calibrated price increases taken in Nov’21 & Dec’21 supporting Q4 margins APL Standalone Gross Margins ~4% Material ~6% Material ~15% Material inflation. ~1% inflation. ~4% inflation. ~3% ~15%
Slide 28: Summary – Standalone Financials
Classification: Restricted Summary – Standalone Financials (figures in columns in Rs. crs) Quarter 4 Full Year 37% 22% 25,002 6,755 15% 11% 14% 10% 11% 9,393 4% 3% 2% 2,679 1,363 1,256 4,588 4,248 3,135 900 Net Sales Gross Margins PBDIT* PBT** PAT Net Sales Gross Margins PBDIT* PBT** PAT CY LY CY LY
Slide 29: Summary – Consolidated Financials
Classification: Restricted Quarter 4 Summary – Consolidated Financials (figures in columns in Rs. crs) Full Year 35% 21% 28,923 7,890 13% 10% 1% 0% 13% 4% 9% 0% 3,052 10,623 1,443 1,305 874 4,804 4,303 3,085 Net Sales Gross Margins PBDIT* PBT** PAT Net Sales Gross Margins PBDIT* PBT** PAT CY LY CY L
Slide 30: Steady Dividend Payouts
Classification: Restricted Steady Dividend Payouts FY 21-22 Rs 19.15 58.6% FY 20-21 Rs 17.85 56.1% FY 19-20 Rs 12.00 51.1% FY 18-19 Rs 10.50 56.7% FY 17-18 Rs 8.70 53.0% FY16-17* Rs 10.30 65.9% FY 15-16 Rs 7.50 53.4% * FY 16-17 data including Rs 2 per share special dividend Classification: Restricte
Slide 31: Immediate Outlook - Challenging
Classification: Restricted Immediate Outlook - Challenging ❖ Tough demand conditions ahead due to fast changing macroeconomic factors ❖ Spread & severity of new variants of Covid and its impact on business operations need to be closely monitored ❖ Monetary policy tightening could hurt consumer senti
Slide 32: Making Responsible Choices
Classification: Restricted Focus on Long Term Sustainable Journey Making Responsible Choices Environment Social Governance • Community Ownership, Customer Celebrations • Water Stewardship • Empowering Safety • Energizing, Equitable, Inclusive Work Environment Classification: Restricted
Slide 33: Product Stewardship
Classification: Restricted Product Stewardship Eliminating Harmful Ingredients Focused on eliminating/minimizing restricted raw materials from our products. Certified Sustainable products Our Architectural paints are lead and heavy Sustainable products with leadership metal free since 2008, and subs
Slide 34: Water replenishment and resource reduction metrics
Classification: Restricted 248% Water Replenishment More than 3,400 tonnes of post-consumer flexible plastic & 62%* reduction More than 14,400 tonnes in Specific Non-process Fresh Water Consumption of post-consumer rigid plastic collected and recycled across 23 states in India 77%* reduction in Spec
Slide 35: Lives Touched – CSR at APL
Classification: Restricted LIVES TOUCHED Vocational Training CSR at APL Providing skilling and vocational training and technical 3,60,000+ knowledge distribution, to enhance productivity and livelihood Vocational Trainings for painters, carpenters and plumbers community imparted Health & Hygiene Imp
Slide 36: Thank You
Classification: Restricted Thank You Classification: Restricted