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Kansai Nerolac Paints Investor Presentation 2024

Jul 30, 2024

61585_rns_2024-07-30_c85e8327-f62c-4ae2-a5b8-524a7fb97b06.pdf

Investor Presentation

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Page 1 of 23

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30th July, 2024

  1. Corporate Relationship Department BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001.

  2. Manager – Listing National Stock Exchange of India Ltd. Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai - 400051.

Sub.: Q1 FY 2024-25 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. BSE Scrip Code- 500165, NSE Symbol - KANSAINER

Dear Sirs,

Further to the intimation done by the Company on 24th July, 2024 with respect to the conference call to be hosted by the Management of our Company on Wednesday, 31st July, 2024 at 11:00 hrs India Time to discuss Q1 FY 2024-25 Financial Results of the Company, we are enclosing herewith an Investor Presentation.

For KANSAI NEROLAC PAINTS LIMITED

G T Digitally signed by G T GOVINDARAJAN GOVINDARAJAN Date: 2024.07.30 20:42:38 +05'30'

G. T. GOVINDARAJAN COMPANY SECRETARY

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Page 2 of 23

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Investor Presentation Q1 2024-25 (31[st] July 2024)

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

Disclaimer Page 3 of 23

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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 Presentation 31[st] July 2024-25

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Nerolac Story

1

Business Environment

2

3 Business Update 4 Financial Performance 5 Risk and Outlook

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

Investor Presentation

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1. Nerolac Stor y

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

Investor Presentation

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Purpose: Create environments for a Page 6 of 23 healthy and beautiful future. Vision: We design solutions that protect, inspire and touch lives everyday

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ESG: Water Positive, Emission reduction, Green energy

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

Investor Presentation 31[st] July 2024-25

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WE ARE A POWERHOUSE OF PAINT

BRAND INNOVATOR’S EXPERTISE AND NEROLAC: SPIRIT: LEGACY: JAPANESE TECHNOLOGY 2[nd] STRONGEST BRAND LEADERS IN INDUSTRIAL THE NEROLAC JINGLE PAINT+ PRODUCTS IN DECORATIVE

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

Investor Presentation 31[st] July 2024-25

Page 8 of 23

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2. Business Environment

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

Investor Presentation

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Business Environment Q1 2024-25 Page 9 of 23

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Good Demand in Automotive

Heatwave

General Elections

Labour Shortage

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Crude Oil Price Geopolitical Challenges Rupee Depreciated Fluctuation

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

Investor Presentation 31[st] July 2024-25

Page 10 of 23

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3. Business U date p

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

Investor Presentation

Page 11 of 23 Marketing and Media Campaigns

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

Investor Presentation 31[st] July 2024-25

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Page 12 of 23 Marketing and Media Campaigns

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Television Commercials

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Newspaper & Outdoor Activity in Regional Market

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

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Investor Presentation 31[st] July 2024-25

Page 13 of 23

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Tracce

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Shikisai

Nylum

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Positano

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Arabesque

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Bluhm

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

Investor Presentation 31[st] July 2024-25

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Decorative Highlights Page 14 of 23

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❑ New product

  • ➢ New product contributed more than 10% of Decorative Business

❑ Paint+ Products

  • ➢ Increase in saliency

❑ New Business

  • ➢ High double-digit growth in New Business

  • ❑ Project / Institutional Business

  • ➢ Continued Growth in Project Business

  • ❑ Premiumisation

  • ➢ Increase in Premium saliency

  • ❑ Architects & Interior Designers

  • ➢ Associated with 6000+ Architects & Interior Designers with expansion in more no of cities

❑ Distribution Network

  • ➢ Expanded Nerolac NextGen Shoppee and Shop in Shop network

❑ Online Training Program

  • ➢ First in industry to Start Master class for Dealers on youtube

❑ Tool

All rights for this presentation are reserved with Kansai Nerolac Paints Limited. ➢ Launched "Nerolac Knows"

New Product Launched in Q1

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Nerolac Perma NeroSelf XL

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Excel Wow White
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Excel No Dust

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Universal PU PRIMER GREY
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Gloria Nxt

1K PU Glossy & Silk Matt Interior/ Exterior

And 2K PU WHITE (Sealer, Gloss, Satin Matt)

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Kansai Select-
Kansai Select-
Tracce
Shikisai
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Investor Presentation 31[st] July 2024-25

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Industrial Highlights Page 15 of 23

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Automotive

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Auto Refinish

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Passenger Vehicle

2-Wheeler

  • -Good Growth in the segment

- 2W segment demand recovery continued -Developed Single product (DTM Monocoat HP Black) having Corrosion & QUV Resistance

  • -Introduced Sustainable Low Flash off, single stage Compact 3C-1B Roof system at customer

Commercial Vehicle

Tractor

  • Subdued growth due in the segment

  • On the back of a high base, tractor segment

  • was able to just exceed last year numbers

  • -Introduced Low Bake Epoxy CED and Low Bake 2K PU 3C-1B System at customer

Performance Coating

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  • Continued to Increase presence in A class body shops

  • -Introduced customised product range for Commercial Segment

  • -Growth picked up in June

  • -Increase in Premium Saliency in liquid

  • -Started supplies of Localized Epoxy Primer & Topcoat to Rail Track laying machine in liquid

  • -ESD powder coatings (Electrostatic Discharge) products commercialized

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

Investor Presentation 31[st] July 2024-25

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Page 16 of 23 CSR Initiatives

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Promoting Education

  • “Educational kits and packets of nutritional food” were distributed at Shraddhanand Mahilashram, Mumbai

“Computers were donated to Z P School, near Lote Plant”

Community Development

“Paint material was provided to Z P School,near our Lote

Plant”

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

Investor Presentation 31[st] July 2024-25

Page 17 of 23

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4. Financial Performance

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

Investor Presentation

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Page 18 of 23 Financials Standalone Q1 FY 24-25

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Rs. In Millions Q1 % to Q1 % to
2023-24 Net Sales 2024-25 Net Sales
Revenue from Operations 20,712 20,504
Material Consumption 13,400 64.7 12,918 63.0
OperatingExpenses 3,973 19.2 4,242 20.7
PBDIT 3,339 16.1 3,344 16.3
PBT before Exceptional Item 3,046 14.7 3,234 15.8
Exceptional Item 6,613 31.9 - -
PBT After Exception Item 9,658 46.6 3,234 15.8
PAT 7,438 35.9 2,411 11.8

Growth – Revenue from Operations: -1.0% PBDIT: 0.2%, PBT (before exceptional): 6.2%

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

Investor Presentation 31[st] July 2024-25

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Page 19 of 23 Financials Consolidated Q1 FY 23-24

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Rs. In Millions Q1 % to Q1 % to
2023-24 Net Sales 2024-25 Net Sales
Revenue from Operations 21,568 21,331
Material Consumption 13,961 67.4 13,477 65.7
OperatingExpenses 4,292 20.7 4,557 22.2
PBDIT 3,315 16.0 3,296 16.1
PBT before Exceptional Item 2,949 14.2 3,081 15.0
Exceptional Item 6,613 31.9 - -
PBT After Exception Item 9,562 46.2 3,081 15.0
PAT 7,340 35.4 2,249 11.0

Growth – Revenue from Operations : -1.1% PBDIT: -0.6%, PBT (before exceptional): 4.5%

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

Investor Presentation 31[st] July 2024-25

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Nepal

  • Mid Single digit growth

  • Market growth was under stress due to lack of government expenditure, liquidity crunch, and untimely monsoon rains

  • Credit off take was low despite lower interest rates due to lack of demand

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Page 20 of 23 Subsidiaries

Bangladesh

Sri Lanka

  • Net Sales grew in double digits

  • • Continuous efforts are taken on reducing overheads, and better fund management

  • Net Sales de-grew

  • • High demand of economy / mid range products

  • fund management Highly competitive market

  • • Forex loss continued due to currency depreciation

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

Investor Presentation 31[st] July 2024-25

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5. Risk and Outlook

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

Investor Presentation

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Page 22 of 23 Risk and Outlook

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Risk

  • Volatility in Forex and Crude oil

  • Uncertain Geopolitical conditions

  • Raw material prices have started to harden

Outlook

  • Favourable monsoon is expected to improve Decorative demand closer to the festival season

  • • Given the continued thrust on infrastructure growth, new project and order pipeline we believe demand for performance coatings should be strong

  • • The 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 the long run

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

Investor Presentation 31[st] July 2024-25

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

Investor PresentationInvestor Presentation 31[st][st] July 2024-25

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