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 India’s largest Kansai Paint Co., 1920 Paint company: Leader Ltd., Japan in industrial paints Net Sales (₹) PBT (₹) Mar. Cap. (₹) (FY21 – standalone) (FY 21 – standalone) (31st March 2021) 4,690.0 Cr 714.5 Cr 32,370 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 • 75:25 Per Capita consumption • ~4 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, Mumbai commissioned June 2020 Shareholding Pattern Shareholding Pattern as on March 31, 2021 8.42% 16.59% 74.99% KPJ Institutional Non Institutional June 2020 Our Heritage – Kansai Paint Co., Ltd., Japan Net Sales Bn Yen (Consolidated) Gross Sales over 3.8 Billion USD 450 427 402 407 400 365 350 330 300 250 200 Presence in over 80 150 Countries via 152 Companies 100 Technical and innovation Leader in 50 Automobile and Industrial Coatings 0 16-17 17-18 18-19 19-20 20-21 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 Heat Resistant Paints Canada Turkey Protech Oxyplast Altan Boya Sanayi A S Europe Powder Coating Helios June 2020 Our Foot-Print Six Plants Strategically Located near OEMs (Auto Clusters) Strong Competitive Edge 99 Depots pan India (Denoted State Wise) 29500+ Customers Network British Safety Award Distribution Network ZERO liquid Discharge Large, well-established OHSAS 18001 ISO 14001 network spread across key 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 6000 860 5174 833 4943 840 5000 4587 4690 820 3999 800 790 4000 782 780 3000 760 742 2000 740 731 1000 720 700 0 680 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Return on Capital Employed(%) Return on net Worth(%) 30.0 20.0 26.8 18.0 25.0 18.0 16.5 25.0 16.0 20.8 13.6 14.1 14.0 13.0 20.0 18.2 18.0 12.0 15.0 10.0 8.0 10.0 6.0 4.0 5.0 2.0 0.0 0.0 June 2020 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Overview of our Performance Earnings Per Share(₹) Dividend (%) 600 10 9.9 9.9 525 9.8 9.6 500 9.6 9.4 9.4 400 315 9.2 300 300 260 260 9 8.8 8.7 200 8.6 8.4 100 8.2 0 8 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Shareholders fund in Rs Crores Market Capitalization in Rs Crores 4500 4081 35000 32370 4000 3787 3424 30000 27172 3500 3125 24642 2805 25000 3000 20368 20810 2500 20000 2000 15000 1500 10000 1000 500 5000 0 0 June 2020 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 Overview of our Performance Count of Customers Operating Cash Flow in Rs Crores 35000 700 621 639 29500+ 30000 28000+ 600 26000+ 25000 23000+ 500 20000+ 377 20000 400 345 15000 300 10000 200 110 5000 100 0 0 16-17 17-18 18-19 19-20 20-21 16-17 17-18 18-19 19-20 20-21 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 Beauty Gold Beauty Smooth UHD Ultra Fresh HD Master Interior Emulsion Range Super Premium Premium Popular Economy Excel Top Excel Mica Suraksha Dust Excel Anti Peel Suraksha Plus Suraksha Sheen Guard Excel Total Marble Resist 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 Adhesives Health & Wood Hygiene Coatings Sri Lanka Pipe coating Nepal International Markets Floor Coatings Bangladesh Coil Coatings Niche Markets Rebar Coatings ARF Railway Coatings 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'21 Amt LKR Cr Mar’21 Amt BDT Cr Mar’21 Turnover 110.9 Turnover 38.9 Turnover 189.7 EBIDTA% 18.0 EBIDTA% -25.1 EBIDTA% 6.0 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 2018-19 4,52,676 Digital Platform 2019-20 5,18,576 • MES (Manufacturing Execution System) • WMS (Warehouse Management Current 2020-21 5,47,260 Captures real-time machine System) parameters and production data.