Kansai Nerolac Paints — Investor Presentation 2021

Oct 26, 2021

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26th October, 2021

1. Corporate Relationship Department 2. Manager – Listing BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai - 400001. Mumbai - 400051.

Sub.: Q2 FY 21-22 Financial Results Conference Call – Investor Presentation

Ref.: 1. Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

2. Scrip Codes : BSE - 500165, NSE - KANSAINER

Dear Sirs,

Further to the intimation done by the Company on 22nd October, 2021, with respect to the conference call to be hosted by the Management of our Company on Wednesday, 27th October, 2021 at 11 a.m. (IST) to discuss Q2 FY 2021-22 Financial Results of the Company, we are enclosing herewith an Investor Presentation.

For KANSAI NEROLAC PAINTS LIMITED

G T Digitally signed by G GOVINDARA T GOVINDARAJAN Date: 2021.10.26 JAN 17:29:26 +05'30' G. T. GOVINDARAJAN COMPANY SECRETARY

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All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

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Investor Presentation Q2 Update (FY 21-22)

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All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

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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.

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Page 5 of 17 Agenda

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Business Environment FY 21-22 Financial Performance FY 21-22 Business Review FY 21-22* Risks and Future Outlook

*The details in the presentation are for the period July – September 2021

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Business Environment FY 21-22 Q2

• ❑ With the progressive unlocking in Q2, sentiment remained positive, and demand has been healthy

• ❑ The shortage of semiconductor chips affected Automotive production

• ❑ Crude and chemical prices moved up significantly

• ❑ The quarter witnessed significant hardening of Raw material prices with Inflation reaching unprecedentedlevels

• ❑ Numerous force majeure across the globe created many supply-chain bottlenecks.

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Page 7 of 17 Agenda

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Business Environment FY 21-22 Financial Performance FY 21-22 Business Review FY 21-22* Risks and Future Outlook

• *The details in the presentation are for the period July – September 2021

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Page 8 of 17 Financials Standalone Q2 FY 21-22

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Rs. In Crores	Q2	% to	Q2	% to
	2020-21	Net Revenue	2021-22	Net Revenue
Net Revenue	1308.9	100.0	1520.7	100.0
Contribution	436.3	33.3	351.4	23.1
Overhead	173.2	13.2	186.7	12.3
PBDIT	262.8	20.1	164.7	10.8
Other Income	4.4	0.3	6.2	0.4
PBT	230.2	17.6	130.6	8.6
Exceptional item	10.8	0.8	-	-
PBT After Exceptional item	219.4	16.8	130.6	8.6
PAT	159.3	12.2	98.5	6.5

Growth - Net Revenue : 16.2% PBDIT: -37.3%, PAT : -38.1%

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Page 9 of 17 Financials Standalone H1 FY 21-22

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Rs. In Crores	YTD Sept	% to	YTD Sept	% to
	2020-21	Net Revenue	2021-22	Net Revenue
Net Revenue	1917.1	100.0	2842.4	100.0
Contribution	649.5	33.9	729.8	25.7
Overhead	306.2	16.0	375.4	13.2
PBDIT	343.1	17.9	354.4	12.5
Other Income	12.3	0.6	15.9	0.6
PBT	282.5	14.7	289.6	10.2
Exceptional item	10.8	0.6	-	-
PBT After Exceptional item	271.7	14.2	289.6	10.2
PAT	199.4	10.4	217.4	7.6

Growth - Net Revenue : 48.3% PBDIT: 3.3%, PAT : 9.0%

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Page 10 of 17 Financial Analysis Q2 FY 21-22

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❑ Positive Factors

• Good Demand momentum witnessed

• Struck a balance between top line and bottom line

• Judicious Control on cost and Overheads continued

• Price increase taken, partially compensates inflation

❑ Negative Factors

• Unprecedented inflationary pressures coupled with force majueres.

• Continued Volatility in Forex

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Page 11 of 17 Agenda

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Business Environment FY 21-22 Financial Performance FY 21-22 Business Review FY 21-22* Risks and Future Outlook

*The details in the presentation are for the period July– September 2021

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Decorative

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Market

Nerolac launched 2 new Products in Construction Chemicals Range

• •Demand was stronger in larger towns

PERMA Damp Protect - Exterior and Interior

Highlights

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• •New businesses –CC, Adhesives & Premium Wood contributed well.

• •Focus on premium Emulsion paints

• •Contribution from New Products improved significantly

• •Price increase in line with Industry

• •Digital connect with Dealers and Painters gained momentum.

• •With integration of Perma Construction Aids Pvt. Ltd. Projects business has been strengthened.

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Industrial

Market

• Production drop across various Passenger Vehicle (PV) OEMs for the month of Aug & Sept 21 due to chip shortage.

• Demand in 2 wheeler segment remained subdued during the quarter.

• Three wheeler segment performed well and witnessed a demand revival in the market.

• CV segment continues on revival path

• Tractor segment continued to show growth momentum in Q2.

Highlights

• Focus on new and competition business

• Price increase efforts are on to offset inflation

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Subsidiary Performance

India

MARPOL

• Merged with Kansai Nerolac Paints Ltd.

PERMA

• Merged with Kansai Nerolac Paints Ltd.

NEROFIX

• Nerofix witnessed significant topline growth

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Subcontinent

NEPAL

• Nepal had strong Sales growth despite demand being impacted in July & August due to continuous rains and sporadic COVID lockdowns

LANKA

• Lanka continues to be on a path of revival despite the longer lock down in Q2

BANGLADESH

• Growth was impacted in Q2 on account of COVID related strict lockdown, but remained healthy at H1 level

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Page 15 of 17 Agenda

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Business Environment FY 21-22*

Financial Performance FY 21-22*

Business Review FY 21-22* Risks and Future Outlook

*The details in the presentation are for the period July – September2021

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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Risks and Outlook

❑ Risk

• Inflationary Trend likely to continue

• Supply shortages of semiconductors may continue longer

❑ Outlook

• Factors like good monsoon, buoyancy of the economy on account of containment of COVID due to vaccination should demand program keep

• healthy.

• Good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry in long run.

All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

Investor Con call- 2[nd] Quarter FY 21-22 27[th] Oct 2021

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THANK YOU
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited.