Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Nomura Investment Virtual Forum Asia 2022
38 slides from Asian Paints's conference presentation, Jun 6, 2022
Slide 1: Exchange intimation letter: Investor Presentation
Asian Paints Limited Asian Paints House 6A, Shantinagar Santacruz ( E) Mumbai 400 055 T: (022) 62181000 asianpaints F; (022) 6218 l lll www.asianpaints.com APUSEC/26/2022-23/13 6th June, 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot
Slide 2: Asian Paints Investor Presentation June 2022
Asian Paints Investor Presentation June 2022
Slide 3: Disclaimer
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 actual results to differ mat
Slide 4: Asian Paints Group
9th 3rd Largest INR 289 Billion Largest 2.5% 2.6% Paint Group revenue Coatings Co. Co. in Asia 10.0% in the World Asian Paints Group 26 84.9% Operations in 60+ Paint 15 Markets Served Manufacturing countries Plants Decorative Business International Business 145,000+ 200+ Industrial Business Kitchen
Slide 5: Delivering joy since 1942
Delivering joy since 1942…. We exist to Beautify, Preserve, Transform all Spaces and Objects, bringing happiness to the World!
Slide 6: Q4 & 12M FY 2022 Financial Performance
Q4 & 12M FY 2022 FINANCIAL PERFORMANCE
Slide 7: Decorative Business (India)
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% Volume Gr% Value Gr% Q4FY21 Q4FY
Slide 8: Decorative Business (India)
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
Slide 9: Decorative Business (India)
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 Term Growth Trend
Slide 10: Decorative Business (India)
❖ 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-digit growth in rest of the q
Slide 11: World Class Innovations
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
Slide 12: World Class Innovations
❖ 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-Crack durable coatings ❖ A u
Slide 13: New Product Introductions
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 coatings ❖ Wood Finish solution
Slide 14: Decorative Business (India)
❖ 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 ❖ Product category expansions ❖ G
Slide 15: Decorative Business (India)
❖ 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 towns in India ❖ A Range of se
Slide 16: Services – A Key Differentiator
Services – A Key Differentiator
Slide 17: Home Décor Business
Home Décor Business
Slide 18: Home Décor Business
❖ 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 Décor under one roof : Beaut
Slide 19: Home Décor Business
❖ 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 Business • Wardrobes and Vani
Slide 20: Home Décor - Partnership with The White Teak Company
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 & facilitates footfalls at
Slide 21: Home Décor - Partnership with Weatherseal
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 with renowned builders – Pres
Slide 22: Home Décor Business
❖ 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 business of Decorative Coating
Slide 23: Home Décor Business
❖ 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 dealer 360 network ❖ Signifi
Slide 24: International Business
International Business
Slide 25: International Business
❖ 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 & forex crisis impacting Ethi
Slide 26: Industrial Business
Industrial Business
Slide 27: Industrial Business
❖ 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 ❖ Almost 20% plus revenue
Slide 28: Exceptional Items Impacting Q4 and FY22
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 money computed under ‘expec
Slide 29: APL Standalone Gross Margins
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% Material additional Price
Slide 30: Summary – Standalone Financials
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 ❖ Strong double digit reve
Slide 31: Summary – Consolidated Financials
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 LY ❖ Equally robust revenue
Slide 32: Steady Dividend Payouts
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 Figures in column are Dividend per share
Slide 33: Immediate Outlook - Challenging
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 sentiment in key sectors like Ho
Slide 34: Making Responsible Choices
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
Slide 35: Product Stewardship
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 subsequently standards such as
Slide 36: Water replenishment and resource reduction metrics
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 Specific Industrial Effluent Ge
Slide 37: Lives Touched: CSR at APL
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 Improving health index of the
Slide 38: Thank You
Thank You
Asian Paints — Nomura Investment Virtual Forum Asia 2022 on 6ix