!Jj - &. J G O V l . A N i ' C O M P S E C R - - PDF document

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!Jj - &. J G O V l . A N i ' C O M P S E C R - - PDF document

~ Page 1 of 63 ~ KANSAI N l ; : R O L A C PAINTS LIMITtD March 13, 2020 1. Cor porate Relationship Department 2. Manager - Listing B S E L i m i t e d , N a t i o n a l S t o c k E x c h a n g e of I


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SLIDE 1

Page 1 of 63

March 13, 2020 1. Corporate Relationship Department B S E L i m i t e d , Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 00 1.

~ KANSAI N l ; : R O L A C

PAINTS LIMITtD

2. Manager - Listing N a t i

  • n

a l S t

  • c

k E x c h a n g e

  • f

I n d i a L t d . Exchange Plaza, C-1, Block G, S a n d r a Kurla Complex, Sandra

( E ) , Mumbai - 400 051.

S u b . : I n t i m a t i

  • n
  • n

b e h a l f

  • f

K a n s a i Ne r

  • l

a c P a i n t s L i m i t e d ( " C

  • m

p a n y " ) w i t h r e s p e c t t

  • P

r e s e n t a t i

  • n

to A n a l y s t s / I n v e s t

  • r

s R e f . : 1 . R e g u l a t i

  • n

3 { 6 ) ( r e a d w i t h S c h e d u l e

I I I

  • P

a r t A )

  • f

t h e S e c u r i t i e s a n d E x c h a n g e B

  • a

r d

  • f

I n d i a ( L i s t i n g O b l i g a t i

  • n

s a n d D i s c l

  • s

u r e R e q u i r e m e n t s ) R e g u l a t i

  • n

s , 2 1 5

  • 2. Scrip Codes: BSE - 5001651 NSE - KANSAINER

Dear Sirs, Pursuant to the provisions of Regulation 30(6) of Securities and Exchange Board of India (Listing O b ligations and Disclosure Requirements) Regulations, 20 15, this is to inform you t h a t Presentation (Corporate Presentation and Investor Presentation) will be made by the Management of the Company to Analysts / Investors on Tuesday, March 17, 2020 over Video Conference. T h e Presentation is attached for yo ur reference. T h e s a m e wi

ll also

b e uploaded

  • n

the website of

  • ur

Company, www.nerolac.com. The above is for your information and record. For KANSAIN .

OLAC;. A I N T S L I M I T E D

!Jj -

&.

J

G O V l

~

C O M P

. A N i '

S E C R E T ARY Encl.: As above

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SLIDE 2

March 2020

Corporate Presentation

March 2020

Page 2 of 63

~ N~ROLAC

=>~

KANSAI

NEROLAC

PAINTS LIM ITl;:D

  • ~
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SLIDE 3

March 2020

CORPORATE OVERVIEW

March 2019

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~ Nl;:ROLAC

  • -~
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SLIDE 4

March 2020

Kansai Nerolac Paints Ltd.

Parameter Ownership Subsidiary of Kansai Paint, Japan Founded 1920 Market Position One of India’s largest Paint company Leader in Industrial Paints Turnover (FY 18-19 standalone)

  • Rs. 51736 Mn.

PBT (FY 18-19 standalone)

  • Rs. 7134 Mn.

Market Cap (31st March 2019)

  • Rs. 247094 Million

March 2019

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1;:RO AC

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SLIDE 5

March 2020

Company Vision

“We design solutions that Protect, Inspire and Touch Lives every day”

March 2019

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~ N~ROLAC

  • ~
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SLIDE 6

March 2020

We leverage superior technology to contribute to our Customers and Society, in a sustainable manner, with innovative Products and Services, through a competent workforce, built

  • n a culture of Customer Focus, Integrity and

Respect to our Stakeholders.

Company Mission

March 2019

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~ Nl;:ROLAC

  • -~
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SLIDE 7

March 2020 March 2019

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1;:RO AC

Core V; e

C

C

  • c

cco

Ii

C

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SLIDE 8

March 2020

icare! Logo

Initials of each Core Value Call for commitment (“I Care!”) in living the Core Values each

  • rganisation

member plays “!”represents the irreverenc e in Innovation Different colours acknowledge and encourage our diversity as a group Representation of an enthusiastic group of people, together around a single purpose “i”stands for the role that

March 2019

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~ N~ROLAC

ar

  • ~
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SLIDE 9

March 2020

Strong Legacy

99 Years History

Year Key Milestone 1920 Started as Gahagan Paints and Varnish Co. Ltd 1957 Changed name to Goodlass Nerolac Paints Ltd. 1976 Became Part of TATA group 1986 Acquisition of stake by Kansai Paint, Japan 2000 Became subsidiary of Kansai Paint, Japan 2006 Change of name to Kansai Nerolac Paints Ltd. 2012 Acquisition in Nepal 2017 Commencement of operations in Sri Lanka 2018 Acquisition of Marpol (Powder Coating) Acquisition in Bangladesh(RAK Paints) Acquisition of Perma (Construction Chemicals) 2019 Joint Venture with Polygel (Adhesives)

March 2019

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SLIDE 10

March 2020

Kansai Paint, Japan

  • Japan’s largest paint company
  • 8th largest Paint company globally
  • Among top 5 global automotive paint companies
  • Presence in 80 countries via 152 companies
  • Gross sales over 3.9B USD

March 2019

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1;:RO AC

Net Sa les (c-onso lid.at-ed )

427425

li'

  • s of ye

01 977

34-9 3.33

~,.2:3'5

2.-C! .- □

a

IQ

20.m.

2015

2iO 7

  • ~
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SLIDE 11

March 2020

Shareholding Pattern (31st March, 19)

74.99%

KPJ Institutional Others

9.65% 15.36%

March 2019

KPJ-Kansai Paint Japan

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■ ■ ■

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SLIDE 12

March 2020

INDUSTRY OVERVIEW

March 2019

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SLIDE 13

March 2020

Indian Economy

Political Stability Fiscal Prudence Series of reforms Pro- Industry environment Strong Governance Increasing GDP Increasing Per Capita Income Ease of Doing Business Ranking

2015 2016 2017 2018 2019 142 130 100 77 63

*Source: World bank

*Source: IMF Fiscal Monitor(Estimated) March 2019 1.4 1.6 1.6 1.7 1.9 2.0 1.0 1.5 2.0 2.5 2013 2014 2015 2016 2017 2018 GDP Per Capita *Source: World bank (in USD Thousands)

Page 13 of 63

  • Revenue -Expenditure

32 7.9

2

24

21

16

.3~

8

~
  • 6.6
I 1 :

I

I J

Asa %ofGDP I I

1;:ROLAC

Overall balance (Right-hand scale) I I
  • -
  • i' J
I

~

  • 2

21.3

  • 4
  • 5

A

  • 6

0 --~--~---~--~---~---~--~- -8

2016 2017 2018 2019

2020 2021 2022

Revenue minus expenditure may not equal exact balance due to rounding off.

Graphic by Subrata Jana/Mint

Source: IMF Fiscal Monitor

  • ~
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SLIDE 14

March 2020

Indian Paint Industry Facts

Parameter Facts Size Over $7 Billion Growth Rates Double digit since 1991 Organized : Un-organized Market 70:30 Per Capita consumption ~4 kg (Global average @12-15 kg)

Future Growth Drivers

  • Favorable demographics
  • Rapid urbanization
  • Make in India
  • Infrastructure growth
  • Unorganized to Organized with GST

implementation

March 2019

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SLIDE 15

March 2020

KANSAI NEROLAC PAINTS LTD

March 2019

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SLIDE 16

March 2020

Traditional Business Markets

Automotive Coatings General Industrial Coatings Powder Coatings High performance Coatings Decorative Coatings Auto Refinish (ARF) Coatings

March 2019

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2W

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SLIDE 17

March 2020

Decorative Coatings

Economy Popular Premium Super Premium Economy

Decorative Range: Enamels, Distemper, Emulsions, Primers, Putty, Wood finishes Exterior Interior

Popular Premium Super Premium

March 2019

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SLIDE 18

March 2020

Automotive : Leadership with Full system (Primer+ Top Coat + Clear Coat, including plastic paints)

Automotive Coatings

March 2019

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SLIDE 19

March 2020

Drums & Barrel Gas Cylinder Electrical Equipments Helmet Coating Agricultural Equipment Sewing Machine Generator Sets Security Equipment ZIp Pre Engineering Building

General Industrial Coatings

General Industrial : Market leader with wide range to cater to a variety of Industries

March 2019

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SLIDE 20

March 2020

High Performance Coatings

Petroleum / Petrochemical Metal Industries Fertilizer Industries Cement Industry Railways

Infra High Protective Coatings: Wide range to tackle corrosion protection

March 2019

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SLIDE 21

March 2020

Powder Coatings

Electrical Equipments Light Fixtures Fans Refigerators Washing Machine Air Conditioner Microwaves Auto Ancillary

Powder Coatings: Leadership through a variety of products

March 2019

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O J

~ i

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SLIDE 22

March 2020

Selective List of Customers

And many more...

Automotive Coatings

March 2019

Page 22 of 63

MARUTI

SUZUKI

Co1.Jnt on ve

~ TOYOTA

.r.

TATA TATA MOTORS

,~

Hero

D

HONDA

mahindra

OYAMAHA

TVS

SUZUKI

TAFE

*

BAJAJ

~

~

EICHER

1;:RO AC

~ HONDA

~

ASHOK LEYLAND

====~-----------------------------------

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SLIDE 23

March 2020

Selective List of Customers

And many more...

General Industrial Coating High Performance Coating Powder Coating

March 2019

Page 23 of 63

ADANI

Panasonic

Ambuja Cement

ZAMILSTEEL

ORIENT FANS

"

HAVELLS

f1.llldllll

NTPC

1;:RO AC

BCW!lff Lcu»rie S1UDDS

Panasonic

e

t llfe

Bharat Petroleum

,r

THERMAX

  • --~
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SLIDE 24

March 2020

New/Emerging Business Markets

Adhesives Floor Coatings Rebar Coatings Railway Coatings Coil Coatings Construction Chemicals

March 2019

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1;:RO AC

  • --1

2W

  • ~
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SLIDE 25

March 2020

Subsidiaries

Amt NPR Mn On Acquisition March 2018 March 2019 Turnover 250.0 1027.8 1348.5 PBT (10.0) 145 224.2 Amt LKR Mn March 2018 March 2019 Turnover 203.7 306.1 PBT (172.6) (275)

Sri Lanka

  • Operations Started in 2017
  • Tie-up with one of the largest conglomerates in Lanka

Nepal

  • Operations Started in 2012
  • Fastest growing company
  • 3rd biggest player in Nepal

March 2019

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1;:RO AC

....

...

r

"

\.. ~
  • ~
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SLIDE 26

March 2020

Subsidiaries

Amt BDT Mn March 2019 Turnover 1100 PBT (104)

Bangladesh

  • Acquired in 2018-19
  • Diverse range of products in Decorative and Protective coating

Amt Rs Mn March 2019 Turnover 620.3 PBT 19.3

March 2019

Marpol

  • Acquired in 2018-19

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1;:RO AC

,,

~

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SLIDE 27

March 2020

Pioneering concepts (Lead free, Low VOC, Healthy Home Paints)

Known for Innovation - Branding

Products Use of Sports for Endorsement Modern Retail Use of Social, Digital & Mobile Celebrity Endorsement

March 2019

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~

Nl;'.ROLAC

HIGH DEFINITION COLOURS

Dealer Portal

Nl;:ROLAC

~ ~

  • ~
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SLIDE 28

March 2020

Known for Innovation - Technology

Collaborations R&D Prowess Technology Innovations Technology Innovations

March 2019

Page 28 of 63

Technology f1 rom Kansai Paints Japan Technical Coll labo1 ration w ith Oshi m1 a Kogyo Co .. Ltd,. Japan Cashew Co .. Ltd, Japan Protech Chem1 ica ls Ltd,. Canada

Innovative products 3C-1B Paints Medium Solid Paints Acrylic CED

Mar Resistant Clear Multi metal Primer

Low bake & Fine film powders

1;:RO AC

In - House R&D R&D Spend: Rs 25 Cr {0.5% of Sale)

Number of R&D personnel:

176

Innovative Products Eco Clean (zero smell and VOC) Little Master (economical emulsion Anti-Dust fan coating Self Leveling floor coating Nerotuff Powder

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SLIDE 29

March 2020

Known for Innovation - IT

ERP Supply Chain CRM Analytics Engine Ariba Vendor Portal EHS Completely IT Enabled Business running on SAP HANA (Early Adopters of New Technology) Dealer Portal HR IoT, Predictive analytics, ML(SAP Leonardo), RPA

March 2019

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SLIDE 30

March 2020

Distribution

British Safety Award ZERO liquid Discharge OHSAS 18001 ISO 14001

March 2019

Page 30 of 63

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  • 100+
  • Depots. I 200

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.::airer Network

  • --~
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SLIDE 31

March 2020

Capacity

Year Annual Capacity in KL/MT Existing 2017-18 4,10,000 2018-19 4,50,000 Current 2019-20 5,10,000 Planned 2020-21 5,25,000 1 Green field Project in Pipeline

March 2019

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SLIDE 32

March 2020

Environmental Initiatives

Publishing Report since 2005. Sustainability report as per GRI guidelines since 2012 Implemented SAP EHS in 2011 Water and Carbon Foot print tracking Zero Liquid discharge at all manufacturing facilities Products meeting VOC regulation Reduction in Co2 emissions Green Program with vendors

March 2019

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SLIDE 33

March 2020

People Initiatives

Young Vibrant organization with average age of organization 35 Professionally run & managed Core Values & Competency Framework defined Transparent Performance Management System

March 2019

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SLIDE 34

March 2020

Our CSR Activities

March 2019

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SLIDE 35

March 2020

One of India’s most trusted Brands

Strength of the Nerolac brand

March 2019

Page 35 of 63

BRANDEQlJ11Y

Where Do The

Airlines

~

1Airlndia
  • 2 JetAirways

__

..., 3 Indigo Airlines !m..:.':liV°

4 Spicejet

i.1ap'.:~"::.~

r.m!Wltllffli9!Sll'tln• S GoAir

f=:'=--

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Apparel

1 Raymond

Consumer Durables

1 Samsung 2 Sony 3 LG 4 Usha 5 Philips 6 Whirlpool n,,saroqon,,g nm:m:IIDDI!~

~,..

......

  • Wl'mLCiDldsltl'Ully

=~

Ol!Q&lh!'UIISCoxt 7 Godrej Appliances 8 Videocon
  • Paints

I

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4 Oulux Paints lr1 195,lll(~ll'Ql'ICJY0:ICR!Cflldn rrmnrt:or.nlmmts Ell!. lll!CD'IW!Y

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A lml!'ad!!l WltnnlXli6111!trl12 ll'lV IUNBJ'7JXXlatrll!S lteW'irftl emyanrmeu.anr.

OTC

Stand?

Edible Oils (R

e ffned) 1 Saffola 2 Fortune 3 SUndrop 4 RuchiGold

s Gemini

Footwear

1 Bata

1;:RO AC

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SLIDE 36

March 2020

Some Important Awards

Corporate Customer Brand Marketing

Institute of Company Secretaries : Corporate Governance - 2007 Golden Peacock : Corporate Governance – 2005 Best Managed Company : Business Today – 2005 Best Supplier Award – HMSI - 2016 Best Supplier Award Toyota -2017 Best Vendor Award – Suzuki - 2017 Best Vendor Award for Cost – Toyota -2016 Best Vendor Award – MSIL – 2016 Certified Great Place to Work by GPTW - 2019 ‘Best Brands’ by Economic Times – 2018 40 Most Valuable Brands – Interbrand - 2018 Trusted Brand Gold Awards – Readers Digest Product of the year Award – 2017 Best media Innovation-Emvies 2007(4 Awards) Bronze at Cannes-2008 Silver Trophy Best Ad-2006 Design Award for Ambient Media category- Kyoorious Design Awards-2015 Best CMO –Pitch CMO summit 2017

March 2019

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SLIDE 37

March 2020

Some Important Awards

Asian Manufacturing Excellence Award-Frost & Sullivan-2010 Certificate of merit-Lote(Zero Accident Frequency)-National safety council Maharashtra(3 years)-2012,2014,2017 Safety Excellence Award-FICCI National Energy Conservation (Jainpur)- Ministry of Power GOI-2006 Environmental Excellence Gold Award-Lote Greentech Environment excellence-2009 Environment Management Award-Golden Peacock 2010

Manufacturing Environment

Innovative Product/Service-Golden Peacock -2010,2011 Most Proactive contribution through new development in Powder- Godrej,2010 Most Innovative Product of the year award Nerolac Impression HD-Consumer Survey

  • f product innovation-Nilesen

Product

March 2019

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SLIDE 38

March 2020

Some Important Awards

ACE Awards,SAP-2012,2014,2016 SAP Awards Indus-2014 Best APO Implementation-PC Quest 2008 Hall of fame-CTO forum 2008 Gold CIO of the year-Data quest of the magazine 2005 Best CTO in manufacturing-CTO forum 2005 Among the top 50 CEO’s-Entrepreneur Magazine-2014 Best CEO in chemicals category-Business Today- 2017 Asia Pacific Entrepreneurship Award in Chemicals and Plastics-Enterprise Asia 1st Non Japanese to be on the board of Kansai Paints Japan

Information Technology Leadership

CSR Report Gold Trophy-ABCI Award 2007 Karmayog 2008 Rating 4/5 Associations of Business Communicators of India-Gold-2009

Reports

March 2019

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SLIDE 39

March 2020

18-19 Key Achievements

Sustainable growth

  • Double digit growth in Decorative, with Market Share gain in All

Industrial segments

  • Inorganic growth via M&A in international and niche markets

Branding

  • Mr. Ranveer Singh signed up as new face of Nerolac brand
  • Continued sponsorship & branding in sports

March 2019

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1;:RO AC

r

"

\...

~

r

  • ~
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SLIDE 40

March 2020

18-19 Key Achievements

Technology

  • MonoCoat and Common Painting system launched resulting in

50% reduction in energy for consumers

  • Product launched which captures indoor air Pollutants and free

Formaldehyde, making the air cleaner

Recognition

  • Vendor Award by Honda & BHEL
  • Lote and Bawal plant received certificate of Merit and

Appreciation

  • Nerolac recognized as one of the Best & Valuable Brands for

2018-19 by organizations – Economic Times and Interbrand

March 2019

Page 40 of 63

1;:RO AC

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.,

I. ...

r

,.,

I. ~
  • ~
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SLIDE 41

March 2020

FINANCIALS

March 2019

Page 41 of 63

~ Nl;:ROLAC

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SLIDE 42

March 2020

Financials

3990 4245 4531 4737 5174 1000 2000 3000 4000 5000 6000

2015 2016 2017 2018 2019

Sales in Mn

March 2019

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1;:ROLAC

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SLIDE 43

March 2020

Financials

12.8 15.5 18.3 17.2 14.3 0.0 5.0 10.0 15.0 20.0

2015 2016 2017 2018 2019

PBDIT %

March 2019

Page 43 of 63

1;:ROLAC

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SLIDE 44

March 2020

Financials

116510 151710 203680 271720 246420 50000 100000 150000 200000 250000 300000 2015 2016 2017 2018 2019

Market Capitalisation (In Mn)

140 305 300 260 260 50 100 150 200 250 300 350 2015 2016 2017 2018 2019

Dividend %

March 2019

1597 2503 2805 3125 3424 1000 2000 3000 4000

2015 2016 2017 2018 2019

Shareholders fund (In Rs Mn)

Page 44 of 63

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SLIDE 45

March 2020

Financial Ratios

24.2 26.9 26.8 25.0 20.8 0.0 5.0 10.0 15.0 20.0 25.0 30.0

2015 2016 2017 2018 2019

Return on capital employed % 17.0 18.5 18.0 16.5 13.6 0.0 5.0 10.0 15.0 20.0

2015 2016 2017 2018 2019

Return on Net Worth % 5.0 6.7 9.4 9.6 8.7 0.0 2.0 4.0 6.0 8.0 10.0 12.0

2015 2016 2017 2018 2019

Earning Per Share

March 2019

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SLIDE 46

March 2020

Standalone Snap Shot

FY 2001 FY 2019 CAGR from 2001 Sales Rs. mn. 6830 51736 12 PBDIT Rs. mn. 480 7420 16.4 PBT Rs. mn. 330 7134 19 EPS Rs 0.44 8.7 19 times Market Capitalization Rs Mn 1380 247094 179 times

March 2019

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SLIDE 47

March 2020

Consolidated Snapshot

FY 2001 FY 2019 CAGR from 2001 Sales Rs. mn. 6830 54243 12 PBDIT Rs. mn. 480 8129 17 PBT Rs. mn. 330 6967 18

March 2019

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slide-48
SLIDE 48

March 2020

Thank You

March 2019

Page 48 of 63

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slide-49
SLIDE 49

Investor Presentation Update (FY19-20)

March 2020

Page 49 of 63

~

Nl;;'.ROLAC

:J~

KANSAI

NEROLAC

PA.IN S LIM T~D

  • ~
slide-50
SLIDE 50

Disclaimer

This presentation may contain statements which reflect management’s current views and estimates and could be construed as forward making

  • 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.

March 2020

Page 50 of 63

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Nl;;'.ROLAC

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SLIDE 51

Agenda

Business Environment FY 19-20* Financial Performance FY 19-20* Business Review FY 19-20* Risks and future outlook

*The details in the presentation are for the period April – Dec 2019

March 2020

Page 51 of 63

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SLIDE 52

Business Environment 19-20

 Demand slow down witnessed across sectors  Several Initiatives taken by Government to spark revival have seen limited impact  Corporate Tax Rate reduction announced  Currency volatility experienced throughout the year  Geo-political concerns at a global level

March 2020

Page 52 of 63

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SLIDE 53

Agenda

Business Environment FY 19-20* Financial Performance FY 19-20* Business Review FY 19-20* Risks and future outlook

*The details in the presentation are for the period April – Dec 2019

March 2020

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slide-54
SLIDE 54

Financials - Standalone Q3 and FY19-20 (9 Months)

  • Rs. Crore

Q3 Q3 Gr% 9 M 9 M Gr% 2018-19 2019-20 2018-19 2019-20 Revenue from Operations (Net) 1350.7 1248.1

  • 7.6

4020.5 3955.1

  • 1.6

PBDIT (without other income) 177.0 191.9 8.4 592.4 653.8 10.4 PBDIT as % of sale 13.1 15.4 14.7 16.5 PAT 112.7 122.7 8.9 374.5 463.9 23.9 PAT as % of sale 8.3 9.8 9.3 11.7

March 2020

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SLIDE 55

Financial Analysis 19-20

 Positive Factors

  • Increased saliency of Decorative
  • Relative stability in Raw Materials prices with a declining trend
  • Strong control on overheads through systemic efforts
  • Contribution improvement in Decorative and Industrial products
  • Improvement in Operating Profit % by 230 basis points in Q3 primarily driven by reduction in

material costs

  • JV with Polygel for Adhesives

 Negative Factors

  • Decline in consumer demand across Industrial especially Automotive
  • Reduced demand in Decorative in Q3
  • Volatile exchange rate

March 2020

Page 55 of 63

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SLIDE 56

Agenda

Business Environment FY 19-20* Financial Performance FY 19-20* Business Review FY 19-20* Risks and future outlook

*The details in the presentation are for the period April – Dec 2019

March 2020

Page 56 of 63

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SLIDE 57

Decorative

Consistent Robust delivery

 Market

  • Situation in Kashmir, where KNP* is a leader,

impacted performance

  • Demand in Q2 was affected due to a

prolonged monsoon and floods

  • This was coupled with an early festive season

 Highlights

  • Soldier continued to perform well
  • Double digit Emulsion volume growth leading

to improved product mix

  • Launch of new Products
  • Suraksha Range
  • Beauty Little Master
  • Nerolac ICRO wood finish range
  • Nerolac Perma Construction Chemicals range
  • Price Decrease in select products amounting

to 1.9% for Decorative during the year

Nerolac Colour trails went across the country Pragati Express painter training extended to 7 more states Association with India’s first water based sports league Nerolac wins silver trophy at 8th ACEF Asian Leaders Forum Nerolac launched first ‘Rongeen Bongo’ shade card for West Bengal

*KNP-Kansai Nerolac Paints

March 2020

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ACEF ASIAN LEADERS FQRljM 6, AWARDS
slide-58
SLIDE 58

Automotive Performance Coating

In line with Auto Sector Broad based growth across categories

 Market

  • Unprecedented and prolonged slowdown in

Auto

  • Automotive production dropped by 13.2 % for

the first 9 months

  • For KNP customer base, this resulted in

17 % reduction in surface area

  • All segments viz. PV (-18%), CV (-27%), 2W (-13

%), 3W (-7 %) and Tractors (-17 %) recorded huge drops in production for KNP customers

  • Inflation of earlier years not yet compensated

 Highlights

  • Introduced new technologies for productivity

improvement, process improvement and energy saving

  • Auto-refinish continued to grow at accelerated

pace  Market

  • Growth continues to be single digit

 Highlights

  • Focus segments growing in double digits
  • Major gains in Coil Coating
  • Continued penetration in new segments

March 2020

PV-Passenger Vehicles CV-Commercial vehicles 2W-Two wheelers 3W-Three Wheelers

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SLIDE 59

Subsidiary Performance

India Subcontinent

 Nepal

  • Continued higher than Market growth
  • Revamp of Plant started
  • SAP Implemented

 Lanka

  • Sluggish Market initially due to terrorist attack

and secondly due to heavy rainfall

  • New distribution introduced
  • Cost Reduction initiatives led to increase in

Contribution

 Bangladesh

  • High Double digit Growth
  • Nerolac Range contributed 30% of Sale
  • Synergy benefit on track

 Marpol

  • EBITDA improvement over same period

Last Year

  • Expansion in Dealer network
  • Capacity expansion undertaken
  • Synergy benefit on track

 Perma

  • Improved profitability
  • Distribution enhancement
  • Price increases taken
  • New Range launched under Nerolac
  • Synergy benefit on track

 Nerofix

  • JV launched in Adhesives business along

with Polygel

March 2020

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SLIDE 60

Operations Support

CAPACITY INCREASE

  • Commissioning of State -of -the -Art Goindwal, Punjab

Plant with Phase I capacity of more than 52.8 Million litre annually for Water based Products

  • ED Plant at Saykha Commissioned for OEMs in west
  • Polyester Resin Capacity increased at Marpol to service

internal needs

STRENGTHENING IT

  • Intelligent Sales App based on Machine Learning and

chatbots rolled out for Decorative Sales team across the Country

  • RPA extended to 10 business processes across functions

SERVICE

  • Multiple initiatives to improve the back end

Goindwal Plant Commissioned during Q2

SAP leornado based Intelligent Sales App and Chtbot

March 2020

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SLIDE 61

Agenda

Business Environment FY 19-20* Financial Performance FY 19-20* Business Review FY 19-20* Risks and future outlook

*The details in the presentation are for the period April – Dec 2019

March 2020

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SLIDE 62

Risks and Outlook

 Risks:

  • Covid-19 can be a deterrent to growth revival
  • Currency Voltality

 Outlook:

  • Low end products shall continue to drive volume growth
  • The Outlook for Automotive Segment continues to be negative

March 2020

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slide-63
SLIDE 63

Thank You

March 2020

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