24.4.2020

All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 1 Corporate Presentation

24.4.2020

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

Ownership Founded Market Position Subsidiary of One of ’s largest Co., 1920 Paint company: Leader Ltd., Japan in industrial paints

Net Sales (₹) PBT (₹) Mar. Cap. (₹) (FY20 – standalone) (FY 20 – standalone) (31st March 2020)

4,943.2 Cr 683.6 Cr 20,880 Cr

June 2020 Indian Paint Industry

Size • Over Rs 55,000 Cr (USD 7 Billion approx.)

Growth Rates • Double digit since 1991

Organized : Un-organized Market • 70:30

Per Capita consumption • ~3.75 kg (Global average @12-15 kg)

June 2020 History of KNPL 2020 Unveiled the new corporate 1920 2000 2006 identity of Nerolac- Colours that Care Started as Gahagan Paints and Company Name changed to Kansai Varnish Co Ltd. with factory at implements SAP ERP Nerolac Paints Ltd. with a Lower Parel across all locations new logo

2000 Tata Group divested 2019 its holding in favour 2012 JV with Polygel Industries of Kansai Paint Japan Acquisition of Nepal Shalimar Pvt. Ltd. to form Nerofix Pvt. Co., Ltd, Japan 1933 Paints Pvt. Ltd. In Nepal Ltd 1986 Acquired by Lead Industries, 2015 2019 UK Kansai Paint Japan Co., Tie-up with Capital Acquired Perma 1933 Ltd acquired stake of Holdings Maharaja Pvt. Construction Aids Private Ltd Name changed to Goodlass the UK Partner, Cookson Ltd., Sri Lanka for Lanka Wall (India) Ltd. Operations 2018 1946 1983 Acquisition of RAK Name changed to Goodlass 2018 Technical collaboration with Paints, Bangladesh Wall Pvt Ltd. Kansai Paint Japan Co., Ltd Acquisition of Marpol 1957 Pvt. Ltd. Changed name to Goodlass 1976 2018 Nerolac Paints Ltd Tata group acquired a part of State-of-the-art R&D Lab in the foreign shareholding Vashi, commissioned

June 2020 Shareholding Pattern

Shareholding Pattern as on March 31, 2020

9.07%

15.94%

74.99%

KPJ Institutional Non Institutional

June 2020 Our Heritage – Kansai Paint Co., Ltd., Japan

Net Sales (Consolidated) ❖Gross Sales over 3.8 Billion USD 600 Billions of Yen 500 427 402 407 400 328 330 300 Presence in over 80 200 Countries via 152 Companies 100 Technical and innovation Leader in Automobile and Industrial Coatings 0 2015-16 2016-17 2017-18 2018-19 2019-20 Among Top 5 Global Automotive Paint Companies

8th Largest Paint Company Globally

Japan’s Largest Paint Company

June 2020 Technology tie-ups

Japan Japan

Cashew Tsusho Oshima Kogyo

Auto Paint – Plastic Canada Heat Resistant Paints Protech Oxyplast

Powder Coating

June 2020 Our Foot-Print

Six Plants Strategically Located near OEMs (Auto Clusters)

Strong Competitive Edge

104 Depots pan India (Denoted State Wise)

❖ 27500+ Customers Network

British Safety Award Depot Network ZERO liquid Discharge Large and well- established network OHSAS 18001 spread across key ISO 14001 markets

June 2020 Vision, Mission

Our Vision Our Mission

“We design solutions that Protect, We leverage superior technology to Inspire and Touch Lives everyday” contribute to our Customers and Society, in a sustainable manner, with innovative Products and Services, through a competent workforce, built on a culture of Customer Focus, Integrity and Respect to our Stakeholders.

June 2020 New Corporate Identity

PURPOSE Create Environments for a healthy and beautiful future EXPRESSION Colors that care

PROMISE Renew Life

June 2020 June 2020 Overview of our Performance

Sales In Rs Crores PBDIT In Rs Crores

5682 790 782 6000 5487 731 742 5047 800 4404 700 580 5000 4097 600 4000 500 3000 400 2000 300 200 1000 100 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20

Return on Capital Employed(%) Return on net Worth(%) 30 26.9 26.8 25 20 18.5 18 25 16 20.8 13.6 14.1 20 18.2 15

15 10 10 5 5

0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 June 2020 Overview of our Performance

Earnings Per Share(₹) Dividend (%) 12 315 9.6 9.9 350 305 300 10 9.4 8.7 300 260 260 8 6.7 250 6 200 150 4 100 2 50 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20

Shareholders fund in Rs Crores Market Capitalization in Rs Crores

3787 30000 27172 4000 3424 24642 3125 2805 25000 20368 20810 3000 2503 20000 15171 2000 15000 10000 1000 5000 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20

June 2020 Overview of our Performance

Count of Customers Operating Cash Flow in Rs Crores

35000 700 621 28000+ 30000+ 30000 600 26000+ 23000+ 25000 500 20000+ 390 345 20000 400 377

15000 300

10000 200 110 5000 100

0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20

June 2020 Strategy

Decorative, Automotive, Performance Coating Strengthen the Core while Expanding Horizons

Technology Service Innovative Products Specialized Teams Brand CORE

New Segments: Wood Coatings, Adhesives, Construction Chemicals, Auto Refinish (ARF), Coil Coatings, Functional Powders, Pipe Coatings and Specialty Coatings EXPAND HORIZONS

New Geographies: Nepal, Bangladesh and Sri Lanka EXPAND HORIZONS

IT, Digital, People, Internal Efficiency program ORGANIZATION CAPABILITY

Governance, Risk Management, Compliance, Sustainability LONG TERM SUSTAINABLE VALUE

June 2020 Core Business

General Industrial Coatings

Automotive Powder Coatings Coatings

High Decorative Performance Coatings Coatings

June 2020 Decorative

Super Premium Premium Popular Economy

Impressions Impressions Beauty Little Impressions Impressions Beauty Gold Beauty Smooth UHD Ultra Fresh Eco Clean HD Master Interior Emulsion Range

Super Premium Premium Popular Economy

Excel Top Excel Mica Suraksha Excel Anti Peel Suraksha Plus Suraksha Guard Excel Total Marble Advanced Exterior Emulsion Range

June 2020 Decorative

Impressions Impressions Impressions Excel Alkali Redimix (Putty Exterior Primer Ideaz Glitter Metallic primer cum Primer) Designer Range Primer

Synthetic Satin

Enamel

June 2020 Automotive

Customer Segments Product Line Up

Cathodic Electro Deposition (CED) and Medium Solid, Thermal Acrylic Cathodic Electro 3 Coat – 1 Bake System Sprayed Aluminium Deposition (ACED) (TSA) Polyester Primers

High Mar Resistant Clear Super Durable Monocoat Metallics Coats Monocoats

Polyurethane (PU) Heat Resistant Paints Auto Interior Coatings Coatings for Metal and Plastics

Automotive : Leadership since decades (Primer+ Top Coat + Clear Coat, including plastic paints)

June 2020 Performance Coating - Liquid

Customer Segments Product Line Up

Polyurethane (PU) Chlorinated Rubber Primer and Top Epoxy Coatings Coatings Coats

Petroleum / Metal Industries Fertilizer Industries Cement Industry Alkyds – Primers Heat Resistant Petrochemical Zinc Rich Coatings and Top Coats Coating

Polysiloxane, C5, Floor Coatings Pipe Coatings IPNet

Construction Equipment Drum Barrel Helmet Coating Cycle

Meeting painting requirements of all possible segments

June 2020 Powder Coating

Customer Segments Product Line Up

Epoxy Polyester Powder Epoxy Powder

Light Fixtures Electrical Equipments Fans Auto Ancillary

Pure Polyester Heat Resistance Powder Polyurethane

Super Durable Powders, Rebar Coatings, Pipe Bonded Metallic Coating Powders Powders

Refigerators Washing Machine Air Conditioner Microwaves

Powder Coatings: Undisputed Leadership and high market share through a variety of products

June 2020 Expanding Horizons (New Markets/ Geographies)

Construction Chemicals

Wood Adhesives Coatings

Floor Coatings Sri Lanka Coil Coatings Niche International Nepal Rebar Coatings Markets Markets

Railway Coatings Bangladesh ARF

June 2020 WOOD FINISH

An extensive range of high quality products for all kinds of wooden surface, veneers and MDF

June 2020 WOOD FINISH- NEROLAC ICRO

A luxury range of ultra – premium wood finish range imported from Italy

June 2020 Construction Chemicals- Nerolac Perma

An extensive range of waterproofing and general repair products which are easy to use with a vision to increase life expectancy of the treated surface area in both retail as well as project business.

June 2020 Adhesives- Nerofix

An evolving range of woodworking adhesives developed after months of research and field trials to deliver superior results at optimum cost with a focus on “safe to use” for carpenters.

June 2020 Auto Re-Finish

An extensive range of high quality products to cater all segments in Auto Refinish. Committed to deliver optimum solution to body shops with productivity and profitability. After Market Repainting and Touch-up

Passenger Vehicles

Commercial Vehicles

Two Wheelers

Three Wheelers

Bus Body

Auto Parts &

Furniture. June 2020 Niche Industrial Markets

Railways Rebar Floor Coil

Future Industrial Growth Drivers

June 2020 International Subsidiaries

Sri Lanka Nepal Bangladesh • Operations Started in • Operations Started in 2017 • Acquired in 2018-19 2012 • Tie-up with one of the • Diverse range of • Fastest growing largest conglomerates products in company Decorative and rd in Lanka Maharaja - • 3 biggest player in Protective coating Nepal SLon

Amt NPR Cr Mar'20 Amt LKR Cr Mar’20 Amt BDT Cr Mar’20 Turnover 137.6 Turnover 32.3 Turnover 163.7 EBIDTA% 16.4 EBIDTA% -45 EBIDTA% 1.8

June 2020 Organizational Capabilities

Manufacturing Prowess

People R&D Prowess

IT & Digital

June 2020 Manufacturing Prowess

State-of-the-art technologies and Annual Capacity in World Class Manufacturing modern digital solutions help to Year KL/MT Systems achieve end to end automation. Existing 2017-18 4,13,772 Digital Platform 2018-19 4,52,676 • MES (Manufacturing Execution System) • WMS (Warehouse Management Current 2019-20 5,18,576 Captures real-time machine System) parameters and production data. Planned 2020-21 5,37,380 • Bar Coding • ASRS (Automatic Storage and Retrieval Improvement in 1 Green field Project in Pipeline System) • Equipment efficiency • Pigging • Predictive maintenance Risk Mitigation: Only Company • Modular Paint and Pigment Production • Enhanced safety with plants for Industrial segment (MoFa) Technology 80 46.66 in each geographical zone • Closed Pneumatic Conveying System for Powder Conveying 60 40 Capex (Cr.) All Plants are Certified for the • Robotic Palletisers 3.55 5.87 0.55 3.44 Opex (Cr.) Highest Level of Quality- 20 27.44 30.47 • Latest Bells to Simulate Line Conditions 19.08 23.12 24.34 IATF 16949: 2016, ISO 9001: 2015 for Auto, HSPMs, amongst others 0 FY16 FY17 FY18 FY19 FY20 June 2020 R & D Prowess

R&D Spends Number of R&D personnel New Products Launched Total Patents in FY 19-20 Rs 30 Cr 178 33 8

New R&D Centre Technical Collaborations

• Commissioning of State-of-the-art Research and • Key Technology partner: Kansai Paints Co. Development facility at Vashi, Navi Mumbai. ,Ltd. Japan- Paint and resin formulations • Equipped with latest technologies which enable customized as per Indian Automotive tapping into the huge pool of resources readily customers available across Kansai Paint Co. Ltd, Japan’s • Oshima Kogyo Co. Ltd., Japan- Heat different group companies across the globe. Resistance Coatings • Cashew Co. Ltd., Japan- MICRON and Thinner for Micron • Protech Oxyplast Ltd., Canada- Powder Coating products

June 2020 R & D Prowess

LEADERSHIP CONCEPTS IN EMERGING AREAS OF R&D LEADERSHIP IN INDUSTRIAL DECORATIVE FOCUS

The Company is a leader in Industrial The Company was built on its The Company is now focussing its Coatings and has pioneered many pioneering work in the Indian market efforts on business opportunity areas important technology breakthroughs for on Heavy Metal free and Low VOC such as emulsions, coil coatings, rebar its customers. It has a Dedicated Technical Products coatings, pipe coatings, high-end wood Services team stationed at OEMs to finishes, adhesives and construction support the Production line •Kansai Nerolac Paints Ltd., was the chemicals first company to produce lead free Passenger Vehicles: Innovations which decorative paints have become industry benchmarks of excellence such as the Common Base Coat •Recently, KNPL has differentiated its System and the 3C -1B Wet on Wet System Decorative Product Line with the Two-wheelers: Multiple innovations like launch of Functional Smart Coatings Mono-coat Metallics which have given such as Formaldehyde Abetment, Air benefit in process time reduction and Purifying and Anti-Bacterial offerings energy saving to the customers. It is the sole supplier of ACED in India today. Performance Coating and Powder Coating: Multiple technologies which has enabled it to sustain its Market Leadership June 2020 IT

ERP Supply Chain CRM Dealer Portal Ariba Vendor Portal EHS HR

Analytics Engine

IoT, Predictive analytics, ML(SAP Leonardo), RPA

Cloud (Office 365 Platform), Top Level Security Infrastructure, Collaboration Tools (Teams)

Completely IT Enabled Business running on SAP HANA (Early Adopters of New Technology)

June 2020 EMBED DIGITAL

CREATE DIGITAL ASSETS VISION INCORPORATE DATA & INFO WITHIN & OUTSIDE

AUTOMATION & CONTROL VISION AUTOMATE FOR AVAILABILITY & RELIABILITY

INTELLIGENCE LAYER VISION OUTSIDE IN PERSPECTIVE, PREDICTIVE, VISUAL

SMART ENTERPRISE VISION DEPLOY SMART NEXT GENERATION TOOLS

EXPERIENCE LAYER VISION DIGITALIZE LIFECYCLE OF STAKEHOLDERS

June 2020 People

Employee experience Organization Connect • #Purpose and Expression on Mission, • #Departmental Contact Programme Vision and Core Values • #Coffee with HR • # Learning Conferences • #Virtual On boarding • #Best Practices Interview • #Idea Management Programme • #Talent Development • #Gems • #Kaizen Competition • #Sales Meets

Learning and Growth opportunity Leveraging IT to bring Culture of excellence • #Competency Training Programmes • #Contest Dashboards • #Functional Training Programmes • #Engagement Surveys and Opinion Polls • #Skill Development Programmes • #Driving culture of innovation through • #People Manager Programmes Kaizen dashboard • #Digital University • #Online performance management system/ Contest

June 2020 Long Term Sustainable Value

Environment

Governance Society

June 2020 Environment

Bio-Composting Product Stewardship Machines • Environmentally friendly innovations helped in the Conversion of Canteen Food Waste reduction of to good quality • Consumption of Water and Energy Manure • Air Emissions • Waste Environmental Stewardship Zero Liquid Discharge through • All Plants are equipped with installation of Ultrafiltration (UF), • Dry or Close Loop process technologies Reverse Osmosis • Zero Liquid Discharge enabling Units (RO) and Multi- effect Evaporator • Online Stack and effluent monitoring systems (MEE)

Decrease in Key Parameters in FY 19-20 over the last 4 years Specific Specific Specific Specific Fuel GHG Hazardous Power Water Consumption emission- Waste Consumption Consumption - 19% 20% Generation- - 2% - 10% 13%

June 2020 Green Power Generation Society

RURAL/COMMUNITY PROMOTING DEVELOPMENT EDUCATION

PREVENTIVE HEALTHCARE ENSURING ENVIRONMENTAL AND SANITATION ENGAGEMENT WITH LOCAL COMMUNITIES STABILITY AND ORGANIZATIONS TO CONTRIBUTE TOWARDS SOCIAL BENEFITS LIVELIHOOD AND SKILL RESTORATION OF BUILDINGS ENHANCEMENT AND SITES OF HISTORICAL PROGRAMME IMPORTANCE

June 2020 Governance

Governance Compliance Risk

Internal Audit with Online Compliance System enabled Focus on tracking through Eneterprise Risk • Control Efficiency Legatrix Software Management Index (CEI) • Robust Control Index (RCI)

June 2020 Key Awards

CORPORATE CUSTOMER BRAND MARKETING

INSTITUTE OF COMPANY SECRETARIES- TRUSTED BRAND GOLD AWARD- BEST VENDOR AWARD FOR COST- BEST MEDIA INNOVATION- EMVIES CORPORATE GOVERNANCE (2007) TOYOTA (2016) READERS DIGEST (2017)

PRODUCT OF THE YEAR AWARD- GOLDEN PEACOCK- CORPORATE BEST SUPPLIER AWARD- TOYOTA (2017) WORLD’S LARGEST INDEPENDENT (4 AWARDS) (2007) GOVERNANCE (2005) SURVEY (2017)

ECONOMIC TIMES RECOGNIZED KANSAI BEST MANAGED COMPANY- BUSINESS BEST VENDOR AWARD- NEROLAC PAINTS AS ONE OF THE BEST BRONZE AT CANNES (2008) TODAY (2005) (2010, 2011, 2016,2017) BRANDS (2018)

BEST SUPPLIER AWARD- HMSI NAMED AS ONE OF THE 40 MOST VALUABLE INDIAN BRANDS BY SILVER TROPHY BEST AD- AAAI (2006) (2011, 2015, 2016, 2019, 2020) INTERBRAND, ONE OF THE WORLD’S LEADING BRAND CONSULTANCIES (2018) BEST VENDOR AWARD DESIGN AWARD FOR AMBIENT MEDIA CATEGORY- KYOORIOUS DESIGN AWARD TATA MOTORS (2012) (2015)

BEST PERFORMANCE AWARD BEST CMO- PITCH CMOS SUMMIT ISUZU (2020) (2017)

June 2020 Key Awards

CSR PRODUCT ENVIRONMENT IT

TH 8 ACEF ASIAN LEADERS INNOVATIVE PRODUCT/ ENVIRONMENT EXCELLENCE ACE AWARDS- SAP FORUM AND AWARDS SERVICE AWARD- GOLDEN GOLD AWARD- LOTE, (2012, 2014, 2016) (2019-20) PEACOCK (2010, 2011) GREENTECH EVIRONMENT EXCELLENCE (2007-08)

SILVER TROPHY FOR MOST PROACTIVE SAP AWARDS- INDUS “NEROLAC PRAGATI CONTRIBUTION THROUGH NATIONAL ENERGY (2014) EXPRESS” CAMPAIGN IN NEW DEVELOPMENT IN CONSERVATION (JAINPUR)- THE ‘EXCELLENCE IN CSR- POWDER- GODREJ (2010) MINISTRY OF POWER GOI SOCIAL IMPACT AWARDS’ (2009) CATEGORY (2006-07) BEST APO IMPLEMENTATION- PC MOST INNOVATIVE PRODUCT OF ENVIRONMENT QUEST (2008) THE YEAR AWARD NEROLAC MANAGEMENT AWARD- IMPRESSIONS- HD- CONSUMER GOLDEN PEACOCK (2010) SURVEY OF PRODUCT INNOVATION- NIELSEN (2016) GOLD CIO OF THE YEAR- DATA QUEST MAGAZINE (2005)

BEST CTO IN MANUFACTURING FORUM- CTO FORUM (2005)

HALL OF FAME- CTO FORUM (2008)

June 2020 Key Awards

MANUFACTURING HUMAN RESOURCE LEADERSHIP OTHERS

KNPL WAS CERTIFIED AS ASIAN MANUFACTURING ONE OF THE GREAT AMONG THE TOP 50 CEOS- CSR REPORT GOLD EXCELLENCE AWARD- FROST AND PLACE TO WORK BY ENTREPRENEUR MAGAZINE TROPHY- ABCI SULLIVAN (2010) GPTW IN YEAR (2014) AWARD (2007) (2018-19)

CERTIFICATE OF MERIT- LOTE- KARMAYOG- RATING (ZERO ACCIDENT FREQUENCY) BY BEST CEO IN CHEMICALS 4/5 (2008) NATIONAL SAFETY COUNCIL, CATEGORY- BUSINESS TODAY MAHARASHTRA (3 YEARS) (2017) (2012, 2014, 2017) ASSOCIATION OF BUSINESS COMMUNICATIONS OF SAFETY SYSTEM EXCELLENCE ASIA PACIFIC INDIA- GOLD (2009) AWARD- FICCI (2014-15) ENTREPRENUERSHIP AWARD IN CHEMICAL AND PLASTIC- ENTERPRISE ASIA (2016)

MR. H. M. BHARUKA WAS AWARDED WITH THE PRESTIGIOUS ICC D.M. TRIVEDI LIFETIME ACHIEVEMENT AWARD FOR CONTRIBUTION TO INDIA June 2020 Selective List of Customers

General Industrial High Performance Automotive Coatings OEMs Powder Coatings Coatings Coatings ❑ MARUTI SUZUKI ❑ GODREJ ❑ RELIANCE INDUSTRIES ❑ GODREJ ❑ TOYOTA KIRLOSKAR ❑ WHIRPOOL ❑ ADANI ❑ HITACHI ❑ CARS ❑ KIRBY BUSINESS SYSTEMS ❑ AMBUJA CEMENT ❑ WHIRPOOL ❑ RENAULT NISSAN ❑ ZAMIL STEEL ❑ ADITYA BIRLA ❑ SAMSUNG ❑ MAHINDRA & MAHINDRA ❑ ORIENT FANS ❑ LARSEN & TOUBRO ❑ LG ❑ TATA MOTORS ❑ HAVELLS ❑ NTPC ❑ PANASONIC ❑ FIAT ❑ BALMER LAWRIE ❑ BHARAT PETROLEUM ❑ BAJAJ AUTO ❑ FORD ❑ PANASONIC ❑ INDIAN OIL ❑ HERO MOTOCORP ❑ MERCEDES-BENZ ❑ STUDDS ❑ HPCL ❑ HONDA ❑ VOLKSWAGEN ❑ STEELBIRD ❑ JSW ❑ ASHOK LEYLAND ❑ ISUZU ❑ YKK ❑ THERMAX ❑ MAHINDRA ❑ VOLVO EICHER ❑ TIRTH AGRO ❑ BHEL ❑ MINDA ❑ ASHOK LEYLAND ❑ PENNAR ❑ ONGC ❑ USHA ❑ DAIMLER INDIA CV ❑ EVEREST ❑ SIMPLEX INFRA ❑ LARSEN & TOUBRO ❑ FORCE MOTORS ❑ KOBELCO ❑ L&T ❑ JCB ❑ HERO MOTOCORP ❑ KOMATSU ❑ AFCONS ❑ CROMPTON GREAVES ❑ HONDA MOTORCYCLES & SCOOTER ❑ STI SANOH ❑ SUZLON ❑ ABB ❑ TVS MOTORS ❑ T&D ❑ TATA STEEL ❑ LEGRAND ❑ BAJAJ AUTO ❑ PHILLIPS ❑ SUZUKI MOTORCYCLES ❑ POWERICA ❑ YAMAHA ❑ SIEMENS ❑ ROYAL ENFIELD ❑ TAFE ❑ SONALIKA INTERNATIONAL ❑ ESCORTS

June 2020 Consolidated Snapshot

CAGR (Last 20 year) Sales Rs. mn. 11 PBDIT Rs. mn. 16 PBT Rs. mn. 17

June 2020 End of Presentation

June 2020