Akzo Nobel India Limited has informed the Exchange about Investor Presentation
Akzo Nobel India Limited
16 August 2021
Department of Corporate Services BSE Limited 1st floor, New Trading Ring Rotunda Building, P J Towers Dalal Street, Fort Mumbai - 400 001 Scrip Code: 500710
Dear Sir/Madam,
The Listing Department National Stock Exchange of India Ltd. Exchange Plaza, 5th floor, Bandra-Kurla Complex Sandra (E) Mumbai - 400051 Symbol: AKZOINDIA
Reg : Presentation made by the Managing Director at the AGM 2021
Please find attached the presentation made by Mr Rajiv Rajgopal, Managing Director, at the Annual General Meeting (AGM) 2021 of the Company held on 131h August 2021.
This is for your information and record.
Yours Faithfully, For Akzo Nobel India Limited
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Harshi� Company Secretary Membership#A 13642
Encl: as above.
Magnum Towers, 9th Floor Golf Course Extension Road, Sector-58 Gurugram • 122 011 Haryana, India
T +91 124 485 2400 www.akzonobel.co.in www.dulux.in
Registered Office: GeetanjaliApartrnent, 1st Floor, 8B Middleton Street, Kolkala-700 071 CIN: L24292WB1954PLCO21516
Akzo Nobel India Ltd. Annual General Meeting
13th August 2021
1
Agenda
About Us
2020-21 Recap
Moving Ahead
2
About Us
3
AkzoNobel at a glance
2020 summary:
€8.5 bln revenue 12.9% return on sales (ROS) €19.4 bln Market Cap* 32,200 employees 150+ countries 3,100 patents
* as on 26th Jul 2021
4
AkzoNobel: 2020 Highlights
Delivering on 15-by-20 ambition
Augmenting growth with acquisitions
Continuing sustainable approach to business
Accelerating innovations
Mauritius
Spain
Step change in performance to become a frontrunner in the industry
America
Spain
Enriching reach and offerings in decorative, powder and yacht coatings
Empowering People Reducing impact on Planet Delivering sustainable solutions
Introduced a range of ground- breaking products to the market, while expanding digital capabilities
1 Return on Sales (10.6% in 2017) 2 Return on Investments (18.0% in 2017)
5
AkzoNobel in India
5 manufacturing sites; 1 R&D center
Presence across Decorative Paints & Industrial Coatings
Only player to “coat any surface”!
Double-digit profitability since 2019-20
Over ₹100 bn Market Capitalization
High scores in Sustainability
₹ 24,214 mn revenue in 2020-21
Awarded for our innovations, sustainability and CSR initiatives
6
2020-21
7
A year of volatility
Core Sector in negative territory for most of the year
Rupee weighed down by pandemic before being supported to ~73 level
Vectors that pivoted our actions
Improving GST collections with pickup in economic activity
Consumer Confidence still low
People People first approach. Safety was and remains our topmost priority
Cash ₹7,337 mn in cash & equivalents. Ample coverage for business operations, dividends and growth
Cost Strong focus on opex control and cost management. Protect employee-related costs.
Customers Adapting to shifting consumer preferences with changing fundamentals
8
Financial Highlights
H1 impacted due to higher Urban market/ Projects business salience
Maintaining double-digit EBIT% in a tough operating environment
Improved Working Capital* through efficient management of inventory and credit terms
6%
3%
Strong Cash Flow from Operations
Rewarding our shareholders for their continued support
* Q4 revenue considered for calculating OWC/ Revenue
9
Success Stories: Paints Adapting to shifting consumer preferences
Dulux Promise SmartChoice: Expanded presence to ~3,000 towns
Dulux SuperClean: Superior washability offering with Anti-Bacterial properties at a competitive price
Dulux Assurance: First in the industry promise of perfect colour with a uniform finish and coverage stated
10
Success Stories: Coatings Packing beauty and protection for innovative solutions
Anti-corrosion coatings for Shipping Corporation of India
Partnering for sustainable energy solutions with Schneider
Best Innovation Award from World Auto Forum for Auto Coatings
Wood finish for coated steel: Combining aesthetics with protection
11
Continued Investors Engagement
• Almost quarterly interactions; 4
virtual meetings held pertaining to 2020-21
• Meetings/ calls with domestic and
international investors
• Boosting investors’ confidence
with regular updates
• Senior Management involved
12
People. Planet. Paint Our approach to sustainable business
Sustainability is integrated in everything we do. By 2030, we aim to • • • move towards zero waste
utilize 100% of our energy requirements from renewable sources reduce our carbon emissions by 50%
13
AkzoNobel India Cares Contribution to UN Sustainable Development Goals
1
4
2
5
3
6
1. Zero Hunger: Provided dry ration packets to more
than 15,000 families during Covid-19
2. Good Health & Wellbeing: Providing access of free health care to 1.5 mn painters & families
3. Quality Education: Facilitating education for
~5,000 children/ year
4. Gender Equality: Training women and people
from LGBT communities in painting
5. Decent Work & Economic Growth: Facilitating
skill-based employment
6. Reduced Inequalities: Skill
training to prison
inmates, juveniles etc.
14
Moving Ahead
15
Looking Ahead
380k active cases; 521 mn vaccine doses administered till date
Rising Raw Material costs since December
GDP forecasts revised downwards
Pace of immunization critical to avert potential 3rd wave
Price increases being taken to address inflation risk
However, growth still projected to be 9- 10%
To be managed through scenario planning, cost control and liquidity management
Sources: News reports
16
AkzoNobel Strategy 2021-2023: Balancing growth and profitability improvement
GROW & DELIVER
Assumes no significant market disruption
17
Grow & Deliver in India
Pushing the boundaries of innovation
Catering to shifting consumer preferences with Health & Hygiene offerings
Weathershield Anti-carb: Partnering in India’s infrastructure growth
Solutions with green benefits
Corrosion protection for a variety of industries
Increasing presence through Distributor 2.0 agenda
18
Summary
Strong global brands
• A focused, high performing, paints and coatings company • • Well positioned to accelerate growth and enhance profitability through Grow & Deliver •
Significant returns to shareholders
Pioneering a world of possibilities to bring surfaces to life
19
Thank you!
As pioneers in bringing surfaces to life, there’s a good chance you’re only ever a few meters away from one of our products
Safe Harbour Statement
This media release contains statements which address such key issues as AkzoNobel’s growth strategy, future financial results, market positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be under-stood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures, as well as significant market disruptions such as the impact of pandemics. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business, please see our latest annual report.