Analyst Meet Presentation Q1 FY 2013 & FY 2012 RESULTS

Transcription

1 Analyst Meet Presentation Q1 FY 2013 & FY 2012 RESULTS 25 th July, 2012

2 Safe Harbor 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.

3 Presentation Structure Environment & Growth Drivers Industry Overview Greenply at a glance Numbers Speak: Segmental Review Capacity Review Financials Our Green Credentials Initiatives Investment Highlights

4 Environment Global Environment Crisis in Eurozone, US economy still not out of the woods, Political crisis in the Middle East, Downtrend expectations in China, Upward movement in Crude prices and high commodity prices. Downtrend in Indian Economy GDP growth at 6.9% for FY 2012 Vs 8.5% for FY Inflation hits at peak levels Continuous Interest rate hikes by RBI Demand slowdown seen in rate sensitive sectors - auto, housing etc. Rupee hits record lows against US $ due to domestic macro environment and global risk aversion.

5 Growth Drivers Per Capital income estimated to have risen 14.3% to Rs in Private Consumption expenditure is expected to scale up from USD 790 billion in 2010 to USD 3.6 trillion by 2020.

6 Growth Drivers Young Population India has a young population with average age of 24 years, leading to higher disposable incomes in the hands of those with aspirations for a better lifestyle and stylish interiors.

7 Growth Drivers Rising Urbanisation 40% of population (currently 37%) will live in urban areas by 2030 Real estate sector is expected to grow to USD 180 billion by 2020 Tier II & III cities and towns to witness Realty boom

8 Growth Drivers HNI Segment slated to rise from Rs 45 trillion in to 235 trillion by

9 Real Estate Growth Drivers Office space supply in top seven Indian cities is expected to reach million sq ft. in Tourist arrivals in India is expected to increase to 11.1 million in 2021 from 6.29 million in 2011 leading to an additional demand for hotel rooms in 5 years India will require 1.8 million beds by 2025 to reach its targeted ratio of 2 beds per 1000 people with an investment outlay of USD 86 billion (IBEF - India Brand Equity Foundation.) Increase in development will be witnessed all across the real estate segment and specially in the premium segment.

10 Industry Overview

11 Industry at a glance Rs. in Crores Industry Size: Rs Cr % Plywood Laminate MDF & particle Board

12 Organized vs. Unorganized share Rs. in Crores Plywood Laminate MDF & Particle board Organised Unorganised

13 Industry Growth over Greenply Growth Industry has grown at 6-8% over the five years from FY 2008 to FY 2012 Clear preference shift for branded products in the market that has led to a decline in market share of the unorganized sector Organised players have grown at 15-20% over the same period. Greenply has recorded a CAGR of 31.95% during the period from FY 2008 to FY During FY 2012, Greenply s Net Sales grew 35.05%, EBIDTA was up by 57.45% and Net Profit rose by %.

14 Greenply at a glance

15 About Greenply With a consolidated turnover of Rs.1706cr. ($ million) in FY 2012, we are the largest company in the interior infrastructure space. We are the only integrated manufacturer in the industry catering to all the product segments of interior infrastructure industry. 7 State of-art manufacturing facilities producing world class interior products.

16 Our Market Ownership 36% of India s organised Plywood market 26% of India s organised laminates market 22% of India s MDF market

17 About Greenply (Contd.) With a presence in across 19 Indian states, with over 40 Domestic offices, presence in more than 70 countries and over 4500 employees Greenply offers the largest range of products through widest network of retail outlets. Greenply Industries is the undisputed Market leader with product offerings in both the Premium and Mid-segments. Equity shares listed on NSE & BSE Promoter holding 55% ; Market capitalisation Rs 495 crores.

18 Our Capacities Plywood : million sq meters Tizit: Kriparampur: Pantnagar: Bamanbore: 4.50 mn. Sqm 6.00 mn. Sqm mn. Sqm 7.35 mn. Sqm (currently under expansion post expansion capacity will increase by 4.05 mn. Sqm) Laminate : million sheets Behror: Nalagarh 5.34mn sheets 4.68mn sheets Decorative Veneers: 4.20 million sq meters Behror MDF: Cubic meters Pantnagar

19 Largest Brand & Product Basket catering to all segments of the market

20 Flagship Brands

21 Today, Greenply has become the Largest laminate company in Asia

22 & 5 th largest Globally

23 Today.. Entry into higher margin MDF Business and Greenfield expansion in Laminates with new products, sizes and dimensions have enabled access to the US and European markets.

24 Segmental Review

25 Plywood & Allied Products Rs. in Crores Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Net Sales EBIDTA Margin (%) (350 bps) (320 bps) Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Annual Capacity (mn.sq.m.) Production (mn.sq.m.) Sales (mn.sq.m.) Capacity Utilisation (%) Average Realisation (Rs. / Sq. m.)

26 Plywood & Allied Products (FY 12 HIGHLIGHTS) Increased production by 8.22% to million sq meters. Grew 20.96% in value terms to Rs crores in FY 2012 Achieved overall capacity utilization of 113% in FY 2012 on enhanced capacity of mn square meters. Added Green Compressed Ply into the product basket. Scaled daily flush door manufacturing at Pantnagar facility to 850 pieces in FY 2012 from 700 pieces in FY Focused on secondary sales generation through institutional business, comprising 15% of total plywood sales.

27 Laminates Rs. in Crores Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Net Sales Laminates Net Sales Decorative Veneers (8.74) EBIDTA Margin (%) bps bps Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Annual Capacity in mn. sheets Production (mn. sheets.) Sales (mn. sheets) Capacity Utilisation (%) Average Realisation (Rs. / Sheet.)

28 Laminates International Subsidiaries Rs. in Crores Particulars FY12 FY11 % Change Net Sales Laminates EBIDTA EBIDTA Margin (%) bps PAT 3.53 (1.65) PAT (%) 5.51 (3.89) 940 bps

29 Laminates Segment (FY 2012 Highlights) Grew 17.49% in value terms and 3.43% in volume terms. Increased production to 9.92 mn sheets in FY 2012 from 9.37 mn sheets in FY 2011; achieved capacity utilisation of 99%. Average Realisation of Laminates increased by 16.25% to Rs 558 per sheet to Rs 480 per sheet. Average Realisation of Decorative Veneers increased by 15.21% to Rs 833 per square meter from Rs 723 per square meter. Exports grew by 16.03% to Rs crores from Rs crores. Positive bottom-line for the first time in overseas subsidiaries. Contribution expected to increase substantially over the next 3 years.

30 Laminate Plant at HP. The plant is situated in a tax-efficient location. The plant manufactures compact laminates in thickness ranging from 4 mm to 25 mm & in dimensions up to 6 x12 and laminates in different dimensions such as 5 X12, 4.25 x10, apart from the traditional (4 x 8 ). This has opened up international markets like United States, Europe, Asia, South Africa, Australia as well as new markets in India. Plant operated at 91% capacity utilisation in FY 2012 against 84% in FY Expected revenue from this laminate plant is Rs.275 crores at full capacity utilisation and right mix of value-added products; expected to be achieved in FY 2014.

31 Medium Density Fibreboards (MDF) Rs. in Crores Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Net Sales EBIDTA Margin (%) bps Negative Particulars Q1FY13 Q1FY12 % Change FY12 FY11 % Change Annual Capacity (CBM) Production (CBM) Sales (CBM) Capacity Utilisation (%) Average Realisation (Rs. / CBM)

32 Medium Density Fibreboards (FY 12 Highlights) Increased production by 334% to CBM Grew % in value terms to Rs crores in FY 2012 Achieved overall capacity utilization of 65% in FY 2012 Added Veneered MDF to the product basket Commenced production of thin MDF

33 Medium Density Fibreboards (MDF) MDF is a very versatile product with wide applications, primarily in paneling, wide range of furniture, windows & doors frames, handicraft industry, display or exhibition stands and signage's, false ceiling, toys, carving & molding panels, partitions, shoe industry and educational equipment Currently 60-65% of MDF s domestic requirement is dependent on imports. Product accepted and appreciated, unit offered more sizes and options than competitors. Plain MDF Thicknesses: 2.3mm, 2.5mm, 3mm, 4mm, 5.5mm, 8mm, 11mm, 12mm, 15mm, 17mm, 18mm, 25mm, 30mm and 35mm. Sizes: 8 X4 ; 8 X6 ; 7 X6 ; 7 X4 and 6 X 4. Pre-laminated MDF Thicknesses: 8mm, 11mm, 12mm, 15mm, 17mm, 18mm, 25mm Sizes: 8 x 6, 8 x 4, 6 X4

34 Medium Density Fibreboards (MDF) Unit received FSC Certification of Controlled Wood and Chain of Custody. It is also working on new resin technology to meet worldwide standards on formaldehyde and emissions and obtain E-1 and CARB certifications. This plant is based on the latest Continuous Press Technology supplied by world leader M/s Dieffenbacher, Germany. Plant can produce MDF in the thickness ranging from 2.3mm to 35mm, width up to 6 and length as per customer preference. Expected to achieve 90% capacity utilisation in FY 2013 and generate estimated revenue of Rs 375 crores in FY 2014 at full capacity utilisation and right mix of value-added products

35 Capacity Utilization Plywood % 119% 113% 125% 115% % mn.sq.m m % 85% % 15 65% FY 10 FY 11 FY 12 Capacity Production Utilisation Rate

36 Capacity Utilization Laminates(annualised) mn.sh heets % 94% 99% FY 10 FY 11 FY % 105% 100% 95% 90% 85% 80% Capacity Production Utilisation Rate

37 Capacity Utilisation Medium Density Fibreboards. mn.sq.m % 90% 80% 65% 70% 60% 50% 40% 30% 20% 15% 10% 0% FY 10 FY 11 FY 12 Capacity Production Utilisation Rate

38 Financial Highlights

39 Highlights Q1FY13 Net Sales up by 22.20% at Rs crores Plywood & Allied Products : Rs crores, up by 13.59% Laminates & Allied Products : Rs crores, up by 20.33% Medium Density Fibre-Boards : Rs crores, up by 60.64% EBIDTA (excluding foreign currency gains) up by 33.92% at Rs crores EBIDTA Margin increased by 114 basis points to 13.16% Plywood & Allied Products 9.79% Laminates & Allied Products 13.05% Medium Density Fibre boards 22.62% PAT up by 38.66% at Rs crores PAT Margin stood at 4.17% Vs 3.25%.

40 Performance Snapshot 2012 Greenply's top line growth of 35% outperformed India's GDP Growth of 6.9% and construction industry growth of 4.8% NET Sales Increased by 35.05% EBIDTA MARGINS STRENGTHENED BY 159 BPS NET PROFIT UP BY %.

41 Highlights FY12 Net Sales up by 35.05% at Rs crores Plywood & Allied Products : Rs crores, up by 20.96% Laminates & Allied Products : Rs crores, up by 17.49% Medium Density Fibre-Boards : Rs crores Vs Rs EBIDTA up by 57.45% at Rs crores EBIDTA Margin up by 159 bps at 11.16% Plywood & Allied Products 9.82% Vs 13.02% Laminates & Allied Products 11.27% Vs 9.54% Medium Density Fibreboards 15.42% Vs negative PAT up by % at Rs crores Vs Rs crores PAT Margin up at 3.25% Vs 2.06% in FY 2011.

42 Financial Performance Rs. in Crores Particulars FY2012 FY2011 Key Ratios ROCE (%) RONW (%) Net Debt / Equity (x) Working Capital Cycle (Days) Update on Balance Sheet Particulars FY2012 FY2011 Tangible Net Block Net Worth Total Debt Cash & Bank Balance

43 Sales Break Up Medium Density Fibreboards 15% FY12 FY11 Medium Density Fibreboards 3% Plywood & Allied Products 50% Laminate & Allied Products 41% Laminate & Allied Products 35% Plywood & Allied Products 56%

44 Growth Momentum NET SALES CAGR 31.95% FY08 FY09 FY10 FY11 FY12 50 EBIDTA CAGR 22.50% FY08 FY09 FY10 FY11 FY12

45 Our Sustainable Acts Formulated Green Strategy Group (GSG) Nodal agency to create, sustain and harness the Green Initiatives across the entire value-chain of the Organization. Key Role Monitor environment impact on value chain Reduce carbon footprints Incorporating Clean technologies Building innovation into product design

46 Giving Back to The Planet Provides an additional source of income to farmers Involved in planting close to 0.5 Million saplings in the tribal areas of Nagaland

47 Our Green Credentials 1st non US Company, to bag the coveted GREENGUARD certificate for 1st Indian Brand to be certified by GREEN LABEL Singapore Indoor Air Quality Greenguard Green Label Only one in the industry to use Bio-Mass in the manufacturing process for Laminates First Indian Brand to get certified with All manufacturing Facilities are FSC (C-O-C) ISO 14001, Bio-Mass Carbon Credits and OHSAS certified ISO - OHSAS

48 Our People Our Strength More than 4500 employees Net Sales per employee grew 26.53% EBIDTA per employee grew 47.45%

49 Product Initiatives Plywood Added Green Compressed Ply into the product basket. Introduced products in the technical plywood segment for transportation industry MDF Launched veneered MDF under the brand banner of Green Panel Max Commenced the production of thin MDF (2.5mm-8mm) Laminates & Decorative Veneers First co. to launch Anti-bacterial laminates in India Greenlam Xtraordinaire brand of super premium laminates (Digital, Custom laminates and Unicore laminates). First brand to launch Lab-guardian compact laminate in the country. Introduced various new veneer collections such as Meta wood, Jagged wood, Rich Cut, rotary cut and special textures under Green Decowood brand

50 Marketing Initiatives Launched 4 new Green Design Studios ( signature store) to give customer a world class shopping experience for interior related products Strengthened BTL drives to improve brand presence and visibility at the trade level & through various other activities like sponsorships, exhibitions, carpenter meets, lucrative schemes and dealer meets. CRM program for architects under the banner of Architect Leadership Council (ALC ) Explored new avenue of digital media to engage & come closer to the end customers.

51 360 Degree Brand Building Approach TV Outdoor Print Cinema Digital Radio 360 Plan Successful brand campaign with a new communication tag line Always Hoyenga Greenply Plywood 360 degree approach to make the consumer Aware, Talk & Connect. Each of the media vehicle has been planned to drive better realization & commercial synergy. Engage with the customer at multiple points enabling an integrated communication approach to create customer Perception thru consistent messaging across multiple Media.

52 IT & HR Initiatives IT Initiatives Implemented applications like Business Intelligence for faster and drilled down analysis; Expanded its SAP domain with new roll-outs in various domains and invested in Unified Communications to enhance employee productivity and reduce telecom operation costs. HR Initiatives Employee Training programs, Employee Connect Reward & Recognition programs Launch of E-newsletter & various Fun at work programs

53 Investment Highlights Established brands with strong presence and market share Increasing utilization and change in product-mix at new plants would substantially boost revenues and profits in the next 2 years Existing business is expected to grow at 20-25% Recovery in residential and commercial property market and overall economy should drive the growth Further brand penetration adds considerable mass Improved realizations because of better product mix Ability to pass on increase in input costs.

54 Thank You Corporate Office: 16A, Shakespeare Sarani, New B.K. Market, 2 nd Floor, Kolkata , West Bengal, India Phone: Fax: investors@greenply.com