INVESTOR PRESENTATION Q4 & 12M : FY 2018-19 9 th May 2019 This - PowerPoint PPT Presentation

INVESTOR PRESENTATION Q4 & 12M : FY 2018-19 9 th May 2019

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 expressed. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. Responses can only be given to questions which are not price sensitive. 2

Company Performance Business Review Risks and Outlook 3

Consequent to the introduction of Goods and Services Tax (GST) with effect from 1st July, 2017, Central Excise, Value Added Tax (VAT) etc. have been subsumed into GST. In accordance with Indian Accounting Standards and Schedule III of the Companies Act, 2013, unlike Excise Duties, levies like GST, VAT etc. are not part of Revenue. The figures and growth percentages given herein have been suitably adjusted to make the revenue from operations for periods upto 30 th June 2017 comparable. 4

• Revenue from Operations up by 12.2% Standalone Q4 (Rs. crs) • PBDIT flat at Rs. 842 crores – Impact of higher 4,235 4,500 3,775 material prices & higher media spends 4,000 3,500 • 3,000 PBDIT Margin of 19.9% in Q4-FY19 as 2,500 2,000 compared to 22.4% in Q4-FY18 1,500 842 844 480 492 1,000 • PAT marginally lower than LY – Additional 500 - impact of higher depreciation for the 2 new Revenue PBDIT PAT Q4 - FY19 Q4 - FY18 plants Standalone 12M (Rs. crs) • Revenue from Operations up by 15.8% 16,392 • PBDIT at Rs. 3,587 crores; growth of 12.2% 18,000 14,154 16,000 14,000 • PBDIT Margin of 21.9% for full year 12,000 10,000 compared to 22.6% in previous year 8,000 3,587 3,198 6,000 • 2,135 PAT at Rs. 2,135 crores; growth of 12.7% 1,895 4,000 2,000 - Revenue PBDIT PAT 12M - FY19 12M - FY18 5

Consolidated Q4 (Rs. crs) • Revenue from Operations up by 11.7% • PBDIT flat at Rs. 880 crores 6,000 5,018 4,492 5,000 • PBDIT Margin of 17.5% in Q4-FY19 as 4,000 compared to 19.6% in Q4-FY18 3,000 2,000 • PAT marginally lower than LY 880 879 487 496 1,000 - Revenue PBDIT PAT Q4 - FY19 Q4 - FY18 Consolidated 12M (Rs. crs) • Revenue from Operations up by 14.9% 19,350 20,000 • 16,844 PBDIT at Rs. 3,752 crores; growth of 9.8% 15,000 • PBDIT Margin of 19.4% for full year 10,000 compared to 20.3% in previous year 3,752 3,418 5,000 • 2,212 2,028 PAT at Rs. 2,212 crores; growth of 9.1% - Revenue PBDIT PAT 12M - FY19 12M - FY18 * PAT from continuing operations 6

Interim Dividend 285% (Rs. 2.85) FY 2018-19 Final Dividend 765% (Rs. 7.65) Total Dividend 1050% (Rs. 10.50) Payout Ratio : 56.8% Interim Dividend 265% (Rs. 2.65) FY 2017-18 Final Dividend 605% (Rs. 6.05) Total Dividend 870% (Rs. 8.70) Payout Ratio : 53.1% 7

GST reduction July 2018 GST 30.0% July 2017 26.4% 25.0% Demonetization Nov 2016 Growth over Last Year 20.0% 16.2% 14.6% 15.0% 13.2% 13.0% 12.2% 11.5% 11.3% 10.5% 10.2% 10.2% 8.7% 10.0% [VALUE] 5.5% 7.2% 5.0% 2.6% 2.3% 0.0% 8

Dividend Payout Ratio 56.8% 60% 46.0% 47.0% 49.0% 51.0% 52.6% 54.2% 53.1% 53.1% 54.0% 51.0% Rs. 10.5 50% Rs. 8.7 39.0% Rs. 8.3* 40% Rs. 7.5 Rs. 6.1 30% Rs.5.3 Rs.4.6 Rs.4.0 20% Rs.3.2 Rs.2.7 Rs.1.75 10% Rs.1.7 0% 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Total dividend in Rs . per share Dividend Payout Ratio in % of face value Re. 1 * FY 2016-17 Total dividend of Rs. 10.30 including special dividend of Rs. 2.00 per share

Company Performance Business Review Risks and Outlook 10

 Decorative Paints business in India registered double digit volume growth in Q4  Continued focus on network expansion and opening new ‘Colour Ideas’ store  46,000 + ‘Colour World’ machines and 400+ ‘Colour Ideas’ stores across the country  5 ‘AP Homes’ stores operational; continue to see good response  Coimbatore, New Delhi, Kochi, Raipur and Karur  Good growth witnessed in the Waterproofing and Adhesives segment  Host of new products introduced in the market  Apex Shyne, Ace Shyne, Apex Ultima Europa etc  Material prices softened a bit in Q4; however inflation for the year still at 10%+  No price revision affected in Q4  1 st Dec 2018 +1.7% ; 1 st Oct 2018 +2.35% ; 1 st May 2018 +2% ; 1 st Mar 2018 +1.4%  Mysuru (Karnataka) and Vizag (Andhra Pradesh) plants commissioned in FY19 as per schedule 11

AP Homes at Karur (Tamil Nadu) 12

Mysuru Vizag 13

 All units in GCC (Oman, UAE & Bahrain) and Nepal registered good topline growth  Sluggish growth in Egypt, Ethiopia, Sri Lanka and Bangladesh – impacting the overall International performance  Indonesia operations scaling up well  Expansion of distributor network and Colour Infinity (Colour World) spread  Overall, topline growth of 8.3% for International operations in Rupee terms  Raw material price inflation impacted operational profitability at International operations  Raw Material procurement continued to be a challenge due to forex unavailability in Ethiopia  Profit before Tax from continuing operations at Rs. 121.2 crores; lower by 27.3% over previous year 14

Net Sales (Rs. crores) PBT (Rs. crores) 12M - FY19 12M - FY18 Gr % 12M - FY19 12M - FY18 Gr % Asia 1119 1044 7.3% 36 81 -54.9% Middle East 613 537 14.1% 34 42 -17.4% Africa 476 466 2.2% 44 58 -23.4% South Pacific 137 141 -2.8% 24 33 -25.6% IBU 2325 2148 8.3% 121 167 -27.3% IBU Group [VALUE] 26.1% Asia : Nepal, Sri Lanka, Bangladesh, Singapore & Indonesia 47.7% Middle East : UAE, Bahrain & Oman 20.3% Africa : Egypt & Ethiopia South Pacific : Fiji, Tonga, Solomon Islands, Vanuatu & Samoa Middle East Africa Asia South Pacific 15

PPG Asian Paints (PPGAP)  Auto Segment registered slowdown in the second half of the year on the back of deceleration in the Auto industry  Growth in General Industrial and Refinish segment supported revenue growth for the business Higher raw  Work on Dahej (Gujarat) plant for Resins progressing as per timelines material prices impacted profitability of both these industrial Asian Paints PPG (APPPG) businesses  In FY19, Net Sales grew by 20% to Rs. 473.6 crores; PBT at Rs. 5 crores  Growth led by good performance in the dealer segment for Protective and Powder coatings 16

SLEEK  Registered Sales of Rs. 214.4 crores in FY 19; Full year growth of 24.4%  Growth led by strong performance in the Components as well as the Full Kitchen Dealer segments  PBT Loss of Rs. 22.8 crores during the year ESS ESS  Registered Sales of Rs. 202.1 crores in FY 19; Full year growth of 27.8%  Good growth in the Premium and Luxury range of products  PBT Loss of Rs. 30.4 crores for the year • Continuous focus on enhancing distribution reach and driving operational efficiencies for both the businesses 17

 Total capex at the Standalone level for FY 19 was about Rs. 1000 crores  Rs. 800 crores towards the two new paint manufacturing facilities at Vizag (Andhra Pradesh) and Mysuru (Karnataka)  Capex for FY20 will be around Rs. 700 crores at the Standalone level

Company Performance Business Review Risks and Outlook 19

 Growth expected to remain uncertain in the near term  Need to watch out for progress of the monsoon season as well as easing of the credit cycle in the economy  Also need to monitor raw material price trends, including crude and volatility in the Rupee  Geo-political uncertainty, forex challenges – areas of concern for the International operations 20

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