#1ASIAN PAINTS INVESTOR CONFERENCE Q2 & H1 - FY2021 Results ap asianpaints#2Disclaimer 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 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 and commodity price fluctuations, competitive product and pricing pressures and regulatory developments. Op asianpaints#3Asian Paints Group USD 2.8 Billion Group revenue 3rd Largest Paint Co. in Asia 3 Times nearest Competitor in India 26 9th Largest Coatings Co. in the World Operations in 15 countries Paint Manufacturing Plants Vision "To be the fore runner of - inspiring décor and to actively empower customers to create their dream homes" GROUP REVENUE SPLIT 2% 2% 12% 84% 50+ Years of Market Leadership in India 75+ Years of Innovation in Paint Servicing 150,000+ Retailers directly/ Indirectly in India Deco India International Industrial Home Improvement Revenue Split based on FY19-20 financials Op asianpaints#4Market Conditions ❖Covid cases in India still rising, but pace seems to have peaked Real GDP shrinking by 23.9% in Q1 on expected lines ❖Demand recovery acceleration witnessed across sectors in Q2 led by progressive "unlock" phases by Central & State Governments ❖ Supply side concerns easing incrementally Pent up demand supporting the September quarter across industries Recent releases on IIP print in line with this recovery ❖August reporting -8% y-o-y growth compared to -16% in June and -11% in July Headline inflation (CPI clocking 7.34% for Sep’20) continues to remain elevated driven by food articles Industrial input prices, though, remain largely stable Foreign exchange movement (USD - INR) supportive in the second quarter ap asianpaints#5Business Update Domestic Decorative Business - Paint Industry on a recovery mode, gaining from last month of Q1 - led strongly by tier 2/3/4 markets Strong 11% volume growth in Q2 for the domestic decorative business Volume growth improved in each of the months in the quarter ❖ Demand recovery centered around Economy, Premium & some Luxury range of products Emulsion upgrade playing out strongly Undercoats continue to grow well Waterproofing portfolio expanding ❖Luxury Emulsions in certain categories doing well Continued strong response to 'Safe Painting' & 'San Assure' Services ❖ Strengthening the Décor play with introduction of offerings in Lightings, Furnishings & Furniture ❖ Gross margins supported by stable input material prices as well as continued work on driving sourcing / formulation efficiency ap asianpaints#6Business Update Domestic Decorative Business - Continued momentum with double digit volume growth in Q2 after registering a double digit growth in June'20 Improving trend Qtr 1 -38% -44% 11% 6% Qtr 2 Volume Gr% Value Gr% Op asianpaints#7ap asianpaints ap BEAUTIFUL HOMES with asianpaints A tailor-made solution that offers design expert consultation, personalized designs, unparalleled project management and hassle-free execution, you can transform your space into the home of your dreams Recently introduced Lightings, Furnishings and Furniture thus adding more products in the Home décor and Interior Design category Furniture Lightings 1500 + SKU's across three brands: Nilaya, Royale and Ador Furnishings#8asianpaints COVID VID-19 Op asianpaints THE ANTI-BACTERIAL MULTI-SURFACE PAINT With Silver lon Technology as recommended* by the INDIAN MEDICAL ASSOCIATION To book a free site evaluation, give a missed call on 80504 80504 röyale HEALTH SHIELD ROYALE HEALTH SHIELD EFFECTI AGAINST COVID-19 VIRUS WITHIN 30 MINUTES OF EXPOSURE ON PAINTED SURFACE As per study done by Rajiv Gandhi Centre for Biotechnology (Govt. of India certified lab). röyale HEALTH SHIELD CLEAR ANTI-BACTERIAL ALL SURFACE COATING GAINST VIRUS asianpaints röyale HEALTH SHIELD FECTIVE AGAINST OVID-19 VIRUS asianpaints WALL PAINTS SANITIZERS & DISINFECTANTS Virop Ultra Viroprotek oprote QUAL röyale HEALTH SHIELD CLEAR ANTI-BACTERIAL ALL SURFACE COATING Co SOFT MASK & PPE KITS Viroprotek Viroprotek DISPOSABLE COVERALL asianpaints 3920 REUSABLE CLOTH FACE MASK asianpaints ap asianpaints KILLS 99.9% Assured Care GEAMS "As tested by NABL accredited laboratory Viroprotek#9Business Update - International Business Volume growth picked up across markets in Q2 Performance led by good volume growth in Africa & Middle East Units in Sri Lanka and Bangladesh clocked double digit volume growths Nepal still under pressure due to large restrictions related to Covid Strong push around new products / variants in Premium & Luxury emulsions to fill products gaps Waterproofing also doing well across markets Margin improvement supported by lower material prices as well as work on deriving sourcing & formulation efficiency Overall, International Business revenue: Q2 660 crores (+7.8%) and H1 1056 crores (-9%) International Business PBT: Q2 69 crores (+44.3%) and H1 73 crores (-4.9%) 163 286 168 REVENUE 300 303 424 56 32 Africa Middle East Asia South Pacific Q2 H1 20 31 Africa 14 PBT 34 22 20 13 8 Middle East Asia South Pacific Q2 H1 Op asianpaints#10Business Update - Industrial Business ❖ PPG-AP ❖ Strong uptick in Passenger vehicles & 2-wheelers builds indicative of a recovering trend PPG asian OEM business reported good growth in Q2 after a sluggish Q1 Refinish business, though better than Q1, still low paints Automotive, Marine and Speciality Coatings ❖ AP-PPG Gradual recovery seen in Q2 Powder business leading the recovery ❖Industrial Liquid Paint demand still slow Demand from large consumption sectors like Oil & Gas and Capital Maintenance lagging ❖ Both the businesses benefiting from lower input material prices asian paints PPG PROTECTIVE, PERFORMANCE AND POWDER COATINGS Op asianpaints#11Business Update Home Improvement Business - Kitchen Business ❖ Registered sales of 61 crores in Q2 touching base of previous year # ❖ First half sales at 86 crores, lower than previous year by 26% Components as well as Full Kitchens segments recovered well in Q2 Projects segment, too, saw some pick-up on a sequential basis PBT loss of 4.4 crores in Q2 (compared to a loss of 13.5 crores in Q1) Bath Business # ❖ Registered sales of 55 crores in Q2, lower than previous year by 4% First half sales at 80 crores, lower than previous year by 25% ❖Recovery led by Economy range of products Business reported PBT break-even in Q2 (compared to a loss of 7.4 crores in Q1) Supported by some improvement in Gross marings, cost control and lower spend in Marketing ap asianpaints#12Standalone Financials 4,527 5.8% 1,150 Revenue PBDIT 31.6% QUARTER 2 1,060 CY LY Figures in crores PBDIT margin +5% 33.7% 793 0.3% 6,973 19.5% PBT PAT Revenue PBDIT 1,617 17.7% FIRST HALF 21.5% 1,397 1045 PBT PAT CY LY Figures in crores +0.5% PAT lower due to tax reversal in last year with lowering of Corp. Tax rate. On a like to like basis, PAT growth in line with PBT growth PBDIT margin ap asianpaints 27.6%#13Consolidated Financials 5,350 5.9% 1,277 Revenue PBDIT 31.6% QUARTER 2 1,146 34.4% 852 0.8% 8,273 18.5% PBT PAT Revenue PBDIT 1,747 18.4% FIRST HALF 1,451 22.7% CY LY Figures in crores PBDIT margin +4.7% CY LY Figures in crores PBDIT margin PAT lower due to tax reversal in last year with lowering of Corp. Tax rate. On a like to like basis, PAT growth in line with PBT growth 1072 PBT PAT 29.5% ap asianpaints#14Dividend Distribution FY 2019-20 FY 2020-21 Interim Dividend 335% (3.35 per share) Interim Dividend 1050% (10.50 per share) * Final Dividend 150% (1.50 per share) Total Dividend 1200% (12.00 per share) Payout Ratio: 51.1% Two interim dividends of 3.35 per share and 7.15 per share ap asianpaints#15Looking Forward ❖ Good Recovery in Q2 led by some seasonal demand in the market due to Festivals Real question is: Whether it will sustain beyond the Festive season? Still uncertain on that front ❖ Global recovery could support the Export sector in India Early signs of recovery with Sep'20 Exports growth in positive zone after a gap of 6 months ❖ Good monsoon could provide strong support to the rural economy and demand from that side ❖ Need to continuously watch on currency movement and raw material prices, though they remain stable currently ❖Continue to work on further cost optimization and take up only business critical spends, across all Businesses Op asianpaints#16Thank you