#1op asianpaints Asian Paints Limited Asian Paints House 6A, Shantinagar Santacruz (E) Mumbai 400 055 T: (022) 6218 1000 F: (022) 6218 1111 www.asianpaints.com APL/SEC/32/2022-23/38 26th July, 2022 BSE Limited Corporate Relationship Department Phiroze Jeejeebhoy Towers, 25th Floor, Dalal Street, Fort, Mumbai - 400 001 Scrip Code: 500820 Sir/Madam, National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Symbol: ASIANPAINT Sub: Investor Presentation for the quarter ended 30th June, 2022 Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed a copy of the presentation made to the investors on the audited standalone and unaudited consolidated financial results of the Company for the quarter ended 30th June, 2022. This is for your information and records. Thanking you, Yours truly, For ASIAN PAINTS LIMITED RJ JEYAMURUGAN CFO & COMPANY SECRETARY Encl. As above PAINTS ASIAN LIMITED * Corporate Identification Number: L24220MH1945PLC004598 For shares related queries, email to [email protected] For consumer queries,email to [email protected] Printed on 100% Recycled Paper#2::::: Op asianpaints Investor Conference 01 - FY2023 Results#3ap asianpaints Delivering joy since 1942.... We exist to Beautify, Preserve, Transform all Spaces and Objects, bringing happiness to the World!#4ap asianpaints Classification: Restricted Disclaimer This communication, except for the historical information, may contain statements which reflect the Management's current views and estimates and could be construed as forward-looking statements. The future involves many 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 and commodity price fluctuations, competitive product and pricing pressures and regulatory developments.#5ap asianpaints High double-digit volume and value growth trajectory, notwithstanding the Covid impacted low base. Strong momentum evident from the double digit compounded growth rates. Decorative Business (India) 4 Yr Comp. gr 20% 106% Volume Gr% 37% ■Q1FY22 ■Q1FY23 4 Yr Comp. gr 20% 91% 59% Q1 FY23 Volume and Value Trend Value Gr%#6ap asianpaints Consistent double-digit volume growth trend Decorative Business (India) 200 150 100 50 Volume Index *18.2% *21.5% *20.3% *15.2% *15.0% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Quarterly representation of Volumes sold on base of Q1 FY19 as 100 *% represents 4 Year Compounded Growth Rate#7ap asianpaints Decorative Business (India) T1/T2 centers continued to grow faster than T3/T4 centers Economy range leading the growth; in T3/T4 centers PreLux growing well in the T1/T2 centers, giving a better mix Project/Institutional business also continued its strong trajectory Big surge in business across T1/T2/T3 centers from the Builder segment Strong growth from Government, Factories segments ❖ Good traction in Waterproofing, especially in Admixtures and Membranes Waterproofing & Adhesives categories growing at exponential rates ✰ Unhindered expansion in distribution footprint; harmonious co-existence of Distributor + Direct Dealer model Added more than 5000 new retailing points in Q1 ✰ World-class innovation giving momentum to growth: Launched 10 new products in Q1 Large number of patents and close to 40 unique products and 300 unique finishes in the Industry#8ap asianpaints New Product Introductions Ingenio Matt spray asianpaints TruCare SPARC INTERIOR WALL PRIMER 20L NETT Paints SPAPRWT WHITE MRP2180.00 ind of all taxes Pkd12/2021 (1A01 0908 320) 228 ASIAN PANTS AAPATAN CE Sparc ST Primer asianpaints ezyCR8 STAIN RESISTANT COATING FOR WOOD asianpaints SMARTCARE TILE COAT CLEAR WATERPROOF COATING FOR MOSAIC TILES 2. YEARS WATERPROOFING WARRANTY OPEN SMARTCARE ADVANCED CRACK SEAL asian SmartCare Tile Coat INTERIOR AND EXTERIOR USAGE ENHANCED ANTI-BACTERIAL PERFORMANCE ezyens INGENIO PU BASED PRODUCT FAST DRYING GERMAN TECHNOLOGY Royale Play Mineral (Techshila Interiors) asianpaints röyale PLAY • MATERIALS + STENER Mineral FINISHES SmartCare Crackseal Advance#9Home Décor Business ap asianpaints O#10ap asianpaints Home Décor Business ✰ Home Décor Foray Transitioning from 'Share of Surface' to 'Share of Space' within the Homes ✰ Beautiful Homes Stores - Home Décor under one roof offering Kitchen, Bath & Sanitaryware, Lighting, Tiles, Flooring, Furnishings, Furniture, Doors & windows 31 stores operational now Beautiful Homes Service - Personalized Interior Design to Professional Execution - offered in 9 cities; gaining traction Added Rugs to the Décor portfolio in the quarter ✰ Beautiful Home Shop energizing the ecom deliveries in Home Décor ✰ Central Inspirational Model: Beautiful Homes.com BEAUTIFUL HOMES SERVICE with paints др BEAUTIFUL HOMES with asianpaints Personalised interior design to professional execution #Beautiful HomesYourWay 000 Project 3D Visualization Management Modular Kitchens Customised furniture#11ap asianpaints Home Décor Business ✰ Kitchen Business ❖ Rs. 100 crores+ delivery for 4th consecutive quarter Full Kitchen solutions as well as Components business doing well Projects business gaining traction ❖ Network expansion continued in Full Kitchen dealer network; with strong focus on RFT / customer delight Rs. 7 crores loss this year (vs Rs. 8 crores loss in LY) Material inflation hurting margins Bath Business Rs. 100 crores+ delivery for 3rd quarter in a row Solid footing in the Projects business in collaboration with the Decorative Project's team Premium range 'Bath Sense' & Sanitary ware expanding well ❖ Profitable quarter Benefit of scale despite inflation effect. Profit of Rs 5 crores this year(vs Rs 2 crores loss in LY) 99 66 %89 111 Kitchen Business Revenue 55 116% 119 Bath Business Q1 FY22 Q1 FY23 PBT Kitchen Business -8 -7 Q1 FY22 Q1 FY23 -2 5 Bath Business (figures in columns in Rs. crs)#12ap asianpaints Home Décor Business Recent acquisitions in the Décor space - Decorative and Designer Lighting (White Teak) and uPVC Windows and Doors (Weatherseal) Integrating within the AP Décor journey on a strong note Through Beautiful Homes Stores and Beautiful Homes Service, expanding their market reach ✰ White Teak generated revenue of Rs 20 crs during Q1 against a full year revenue of Rs 57 crs last year with good profitability Weatherseal - Transaction closed in June; with subscription to 51% equity WT THE WHITE TEAK COMPANY#13ap asianpaints International Business 5 Bahrain Egypt Qatar Oman 2 Nepal Bangladesh Indonesia Solomon Islands 7 7 Vanuatu 6,7 UAE Sri Lanka Ethiopia 1 ap asianpaints CAUSEWAY 2 Op asianpaints 3 Op asianpaints 4 KADISCO 5 6 scib TAUBMANS BERGER Bpasianpaints 7 Capco Samoa Paints Fiji#14ap asianpaints International Business * Double digit revenue growth for Q1; Though volumes lower given headwinds across units ❖ Strong growth in Nepal, Bangladesh Sri Lanka impacted by extremely difficult operating environment Challenging conditions in Egypt - forex tightness; competitive pressures Overall, International Business revenue: Rs. 705 crores (+15.7%) Overall, volumes 6% lower; primarily in Sri Lanka Significantly better operating margins - supported by steep price increases, favorable product mix, cost efficiencies Q4 PBT at Rs. 38 crores against Rs 11 crores loss LY Revenue 10% 330 %8 266 203 185 140 151 24% 26 26 Africa Middle East Asia South Pacific Q1 FY22 Q1 FY23 PBT* 30 1 6 -1 2 Africa Middle East Asia South Pacific Q1 FY22 (figures in columns in Rs. crs) Q1 FY23 * PBT is before exceptional items 40% 1%#15ap asianpaints Industrial Business VALUE PRO PU FINISH FINISH AISI KE PYAAR HO JAYE VALUE PRO Experty Chegy PU FINISH SUPERIOR SUPERIOR SO#16Industrial Business ap asianpaints ✰ PPG-AP ❖ Mainline categories of Auto, GI & Refinish recovered to pre-Covid levels While Auto industry continued to face challenges, saw a sequential improvement in demand → AP-PPG Business continued to scale up further, after a strong delivery LY ❖~19% revenue growth for the quarter on a 4-year compounded basis Led by growth in Powder & Protective Coatings. segment Improvement in margins - benefiting from price increases, efficiency and cost control measures, in both businesses 63% 416 255 -6 PPG-AP 32 Revenue PPG-AP Q1 FY22 Q1 FY23 AP-PPG PBT 4 12 AP-PPG Q1 FY22 Q1 FY23 (figures in columns in Rs. crs) 242 155 228% 56%#17ap asianpaints Gross Margin dipped on a sequential basis, impacted by higher inflation. Inflation which seemed to have moderated in Q4 LY, shot up again in Q1 APL Standalone Gross Margins 45.0% 45.4% ~15% inflation; ~3% price increase ~4% inflation; ~6% inflation; 43.6% 38.9% ~4% addn price increase ~6% inflation; ~15% addn price increase ~1% inflation ~2% addn price increase 39.7% 36.9% 37.9% 35.0% Q2FY21 Q3FY21 Q4FY21 Gross margin shown here is Gross contribution as a % of Net sales Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23#18ap asianpaints 4,733 7,556 60% 55% Summary - Standalone Financials (figures in columns in Rs. crs) Net Sales Gross Margins PBDIT* PBT Q1 FY22 Q1 FY 23 * Strong double digit Net Sales growth of 60% in Q1 FY23 65% 2,861 1,841 1,463 884 1,372 795 596 1,017 73% 71% * Persistent material inflation continued to impact gross margins - partially offset by multiple rounds of price increases taken through last year as well as this year Gross margin 1% lower than that in Q1 LY; Dip in margins by 1.8% on a sequential basis with higher material inflation in Q1 FY'23 PBDIT margin improved from 18.7% in Q1 LY to 19.4% in Q1 CY with cost optimization, efficiency measures arresting impact of lower Gross margins * PBDIT before Other Income PAT#19ap asianpaints 55% 5,535 8,579 Summary - Consolidated Financials (figures in columns in Rs. crs) 53% 70% 84% 3,217 80% 2,096 914 1,556 779 1,431 574 1,036 Net Sales Gross Margins PBDIT* PBT Q1 FY22 Q1 FY 23 PAT Robust Net Sales growth of 55% in Q1 at Consolidated levels - all businesses growing in double digits Dip in Gross margins by 0.4% compared to Q1 LY PBDIT margins improved by 1.6% over Q1 LY Better scale, cost efficiencies gaining stream across businesses PBDIT before Share in profit of Associates & before Other Income#20ap asianpaints Outlook Demand conditions stable so far across rural & urban markets; Organization continues to focus on strong growth for the coming quarter ✰ Good advance in monsoon overall; Few states (North, East) still showing deficit. Overall prediction is close to normal monsoon which will support good sentiment in T3/T4 cities ❖ Rupee depreciation, on the back of global policy tightening, further aggravating inflationary pressures. Persistent inflation could, however, dampen consumer sentiments Overall, material inflation expected to ease gradually from second half of current financial year. Q2 inflation estimated to be in low single digits ❖ Would continue to take calibrated prices increases to offset impact of inflation Key global units, especially in Sri Lanka, Bangladesh, Ethiopia, Egypt, facing multiple headwinds - expected to be under strain for some time#21ap asianpaints Focus on Long Term Sustainable Journey Environment Product Stewardship * Water Neutrality Energy Conversation Nature Positive Making Responsible Choices Social Community Ownership, Customer Celebrations • Water Stewardship Empowering Safety Energizing, Equitable, Inclusive Work Environment Governance * World Class Governance * Proactive Stakeholders Engagement Transparency#22ap asianpaints 282% Water Replenishment Focus on Long Term Sustainable Journey 62% reduction in Specific Non-process Fresh Water Consumption More than 3400 tonnes of post-consumer flexible plastic More than 14400 tonnes of post-consumer rigid plastic collected and recycled across 23 states in India LIVES TOUCHED 3,75,000+ Vocational Trainings imparted ။ 77%* reduction in Specific Industrial Effluent Generation 64%* reduction in Specific Hazardous Waste Disposal 37%* reduction in Specific Electricity Consumption 59%* electricity from Renewable Sources 2,70,000+ Healthcare beneficiaries through static clinics and MMUS GreenPro We have been awarded GreenPro certification by CII-IGBC for 187 of our products in decorative paints portfolio *Baseline Year FY 2013-1#23Op asianpaints Thank You