Whirlpool of India Limited · NSE:WHIRLPOOL

Whirlpool of India — Investor Presentation (November 2014)

25 slides from Whirlpool of India's investor presentation, Nov 12, 2014

  1. Slide 1: Whirlpool of India Limited Analyst Meet

    WHIRLPOOL OF INDIA LIMITED Analyst Meet November 12, 2014 1

  2. Slide 2: Environment Assessment

    ENVIRONMENT ASSESSMENT Whirlpool WHIRLPOOL  CONFIDENTIAL of India CORPORATION Limited 2

  3. Slide 3: Tough Operating Environment for Last Two Years

    TOUGH OPERATING ENVIRONMENT FOR LAST TWO YEARS GDP Growth 10.5% 8.9% 8 9% 8 7% 8.7% 6.3% 4.8% 4.5% 4.6% 4.8% 4.6% H1'10 H2'10 H1'11 H2'11 H1'12 H2'12 H1'13 H2'13 Q1'14 Inflation Rate (CPI Base) 9.9% 10.6% 10.4% 9.9% 9.9% 9.7% 9.8% 9.0% 8 3% 8.3% Mar'12 Jun'12 Sep'12 Dec'12 Mar'13 Jun'13 Sep'13 Dec'1

  4. Slide 4: 2014 Major Changes in Environment

    2014 … MAJOR CHANGES IN ENVIRONMENT Single g Partyy F Focus on Reforms R f Majority in 30 years Long Term Vision Higher Investments I pipeline In i li Fast Decision Making Buoyancy in GST one step closer Economic Mood to Realityy Whirlpool WHIRLPOOL of India CORPORATION LEADING TO POSITIVE SENTIMENT

  5. Slide 5: & The Worst Seems to Be Over

    … & THE WORST SEEMS TO BE OVER GDP Growth 10.5% 8.9% 8 9% 8 7% 8.7% 6.3% 5.7% 4.8% 4.5% 4.6% 4.8% 4.6% H1'10 H2'10 H1'11 H2'11 H1'12 H2'12 H1'13 H2'13 Q1'14 Q2'14 Inflation Rate (CPI Base) 9.9% 10.6% 10.4% 9.9% 9.9% 9.7% 9.8% 9.0% 8 3% 8.3% 7.3% 6.5% Mar'12 Jun'12 Sep'12 Dec'12 Mar'13 Jun'13 Sep'13

  6. Slide 6: There Is Optimism in Markets

    THERE IS OPTIMISM IN MARKETS … Rupee to USD Conversion Rate Stable bl BSE Sensex Whirlpool WHIRLPOOL CORPORATION  CONFIDENTIAL of India Limited 6

  7. Slide 7: & Economic Signals Look Positive

    & ECONOMIC SIGNALS LOOK POSITIVE … Forex Reserves $Million (RBI data) Business Confidence Index (CII report) Whirlpool WHIRLPOOL CORPORATION  CONFIDENTIAL of India Limited 7

  8. Slide 8: All This Adds Up To

    ALL THIS ADDS UP TO Q1’14 H2’14 Political Instability Stability Earlyy signs g of Economy Slow Pick up Consumer Turning Negative Sentiments Positive Global Flat Unwinding Commodity Currency Stable May Improve Whirlpool WHIRLPOOL  CONFIDENTIAL of India CORPORATION Limited 8

  9. Slide 9: Raising Hopes of a Stronger Economy in 2015

    … RAISING HOPES OF A STRONGER ECONOMY IN 2015 …… LIKELY TO KICK START DEMAND & GROWTH Whirlpool WHIRLPOOL CORPORATION  CONFIDENTIAL of India Limited 9

  10. Slide 10: Whirlpool Well Positioned

    WHIRLPOOL WELL POSITIONED  DISTRIBUTION  Expanding with new Channel Excellence Initiative  PRODUCTS  Aggressive pipeline of new products with New Line structure …Performing Performing and looking better  SHARE  Focusing in Core range with new Product Leadership initiatives  KEY LEVERS  Consi

  11. Slide 11: H1 2014-15 Financial Performance

    H1 2014 ‐ 15 Financial Performance Whirlpool WHIRLPOOL  CONFIDENTIAL of India CORPORATION Limited  11

  12. Slide 12: Key Trends: Record Semester I

    H1 2014 – 15 FINANCIAL PERFORMANCE : KEY TRENDS Year Gross Revenue PAT PAT% of Income (Rs. Crs) (Rs. Crs) H1 2014‐15 2191 124 6.9 2013‐14 3391 123 4.3 2012‐13 3343 128 4.6 2011 12 2011‐12 3135 124 4.7 2010 11 2010‐11 3187 61 6.1 166 RECORD SEMESTER I WITH….. RECORD SALES ….. RECORD EPS Whirlpool WHI

  13. Slide 13: Net Sales Trend

    H1 2014 – 15 FINANCIAL PERFORMANCE : NET SALES TREND 2012‐13 2013‐14 FY FY +4.7% +1.6% 19.2% 20.9% 10.3% 10.8% 8.2% 5.6% 0.9% ‐1.9% ‐4 0% ‐4.0% ‐4.2% 4 2% Jun'12 Sep'12 Dec'12 Mar'13 Jun'13 Sep'13 Dec'13 Mar'14 Jun'14 Sep'14 H1 : H2 : H1 : H2 : H1 : 10.5% (1.7%) (2.8%) 6.9% 19.9% 2ND CONSECUTIVE QUA

  14. Slide 14: Revenue: Strong Y-o-Y Double Digit Growth

    H1 2014 – 15 FINANCIAL PERFORMANCE : REVENUE Rs Cr H1' 13‐14 H1' 14‐15 Revenue +20.1% Revenue +21.4% 1,684 1,797 1,496 , 1,387 Revenue +3.7% 109 113 T t l Total D Domestic ti E Exports t STRONG Y‐O‐Y DOUBLE DIGIT GROWTH Whirlpool WHIRLPOOL CORPORATION  CONFIDENTIAL of India Limited

  15. Slide 15: H1 2014-15 Financial Performance

    H1 2014 – 15 FINANCIAL PERFORMANCE Rs Cr Revenue H1''13‐14 H1''13 14 H1''14‐15 H1''14 15 +20.1% Contribution +1.9% +1 9% 1,797 34.8% EBITD 1,496 32.9% PAT +3.3% +2.5% 62 625 11.8%% 492 8.5% 4.4% 6.9% 212 124 127 66 Revenue R Contribution C t ib ti EBIDT PAT Whirlpool WHIRLPOOL CORPORATION  CONFIDEN

  16. Slide 16: Operating Cost

    H1 2014 – 15 FINANCIAL PERFORMANCE : OPERATING COST 11.4% 9.7% Rs Cr H1'13 H1 13‐14 14 H1'14 H1 14‐15 15 8.6% 8.8% 4% 5.4% 169.9 174.2 5.2% 155.2 131.4 1.8% 2.1% 2 1% 96 5 96.5 2 1% 1.6% 2.1% 77.1 37.5 29.4 26.3 31.6 Op Exp Payroll A&P F&W Dep 2013‐14 2014‐15 B/(W) Total Operating Expenses ‐ H1 436.

  17. Slide 17: Interest Cost / Finance Cost: Zero Debt

    H1 2014 – 15 FINANCIAL PERFORMANCE : INTEREST COST / FINANCE COST (Rs Cr) & % to Sales 0 16% 0.16% 0.11% 00 % 0.05% 0.04% 0.02% 4.4 3.0 1.4 0.6 0.4 2011‐12 2012‐13 2013‐14 H1 2013‐14 H1 2014‐15 ZERO DEBT HELPING TO MAINTAIN LOW FINANCE COST Whirlpool WHIRLPOOL CORPORATION  CONFIDENTIAL of India Lim

  18. Slide 18: Key Profitability Levers

    H1 2014 – 15 FINANCIAL PERFORMANCE : KEY PROFITABILITY LEVERS H1’14‐15 H1’13‐14 FY 13‐14 Volume Growth 10.1% ‐8.0% ‐6.0% Value a ue G Growth o t 19.9% ‐2.8% 2.8% 1.6% Variable Margin to NR (mgt view) 34.8% 32.9% 33.0% EBIDTA to Total Income 11.8% 8.5% 8.4% PBT to Total Income 10.1% 6.3% 6.1% PAT to

  19. Slide 19: Summary

    H1 2014 – 15 FINANCIAL PERFORMANCE : SUMMARY H1 14‐15 14 15 H1 13‐14 13 14 FY 13‐14 FY'13 14 Rs Cr Actual Actual Actual Volume ('000) ( 000) 1,524 1 524 1,383 1 383 2,542 2 542 Net Revenue 1,729.3 1,442.4 2,726.2 Other Operating Income 67.6 53.2 108.4 Revenue 19.9% Total Income 1,796.8 , 1,495.5 , 2

  20. Slide 20: Working Capital

    H1 2014 – 15 FINANCIAL PERFORMANCE : WORKING CAPITAL Net Working Capital % to sales INR Crs Quarter Sep’14 ‐4.7 140.0 Jun’14 ‐0.8 33.1 Mar’14 ‐4.1 109.5 Dec’13 Dec 13 ‐2.8 ‐2 8 74.6 Sep’13 ‐5.5 135.3 Jun’13 ‐1.0 33.7 Mar’13 ‐4.5 112.0 Dec’12 ‐2.4 58.2 Whirlpool WHIRLPOOL CORPORATION  CONFIDENTIAL o

  21. Slide 21: WC Metrics

    H1 2014 – 15 FINANCIAL PERFORMANCE : WC MATRICS Receivables i bl Inventory 22 22 104 110 DSO DII 13 93 117 19 9 88 170 577 137 171 522 432 Rs In Cr 537 533 Rs In Cr 107 91 H1 2013‐ H1 2014‐ H1 2013‐ H1 2014‐ 2011‐12 2012‐13 2013‐14 2011‐12 2012‐13 2013‐14 14 15 4 14 5 15 Payable DPO 122 112 130 98 8

  22. Slide 22: Cash Generation

    H1 2014 – 15 FINANCIAL PERFORMANCE : CASH GENERATION Cash Generated Rs Cr 199 Crs 217Crs 152Crs 205 Crs 156 Crs 7.4% 8.2% 5.5% 7.2% 8.7% (Net Debt)/ Cash Surplus Cash Utilized 37 73 600 135 500 506 41 114 69 400 419 124 300 295 99 8 83 200 160 54 70 32 100 49 ‐13 62 86 0 2010‐11 2011‐12 2012‐13 2013

  23. Slide 23: EPS & Book Value per Share

    H1 2014 – 15 FINANCIAL PERFORMANCE : EPS & BOOK VLAUE PER SHARE 57.3 47.6 37.5 Book Value 10.1 10 1 EPS 9.7 9.6 2011 12 2011‐12 2012 13 2012‐13 2013 14 2013‐14 Whirlpool WHIRLPOOL of India CORPORATION Limited VALUE CREATION FOR STAKEHOLDERS  CONFIDENTIAL

  24. Slide 24: RONA / ROCE

    H1 2014 – 15 FINANCIAL PERFORMANCE : RONA / ROCE RONA (Return on Fixed Assets) YTD 14‐15 21.2% 31.0% FY 13‐14 12.0% 10.4% 8.2% 30.0% 4.7% 4.0% Jun Sep Dec Mar ROCE ((Return on Capital p Employed) p y ) YTD 14‐15 15.67% 29.1% FY 13‐14 10.5% 25.0% 7.00% 6.7% 4.0% 3.2% 3 2% Jun Sep p Dec Mar Whirlpool

  25. Slide 25: Balance Sheet as on Sept 30, 2014

    H1 2014 – 15 : BALANCE SHEET AS ON SEPT 30’ 2014 Particulars Sep'14 Mar'14 Sep'14 Mar'14 Rs Cr Actual Actual % Total % Total EQUITY AND LIABILITIES Shareholders’ funds 829 740 55% 47% (a) Share capital 127 127 (b) Reserves and surplus 702 613 Non-current liabilities 76 90 5% 6% (a) Deferred tax liab

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