Slides
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Q1 - Investor Presentation 5th August 2025 Page 2 of 25
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. This presentation may contain statements which reflect management’s current views and estimates and could be construed as forward making 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 fluctuations, competitive product and pricing pressures and regulatory developments Disclaimer Investor Presentation 5th Aug’25 Page 3 of 25 [(KANSAI PAINT NEROLAC
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. AGENDA 4 . Industrial Update 5 . Financial Performance 6 . Risk and Outlook 3. Decorative Update 2. Business Environment 1. Nerolac Story Investor Presentation 5th Aug’25 Page 4 of 25 ~ KANSAI • PAINT
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 1. Nerolac Story Investor Presentation 5th Aug’25 Page 5 of 25
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Purpose: Create environments for a healthy and beautiful future Vision: We design solutions that protect, inspire and touch lives everyday ESG: Water Positive, Emission reduction, Green energy Entered within last 3 yrs Investor Presentation 5th Aug’25 Page 6 of 25 [(KANSAI PAINT NEROLAC
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. We Are A Powerhouse Of Paint 2nd Strongest Consumer Paint Brand Expertise and Legacy THE NEROLAC JINGLE Ranked in No.2 among paint brand （Top of mind awareness & Brand equity index) R&D • State of the art R&D center • Technological Tie Ups • Innovative technologies • Cutting-edge Solutions JAPANESE TECHNOLOGY LEADERS IN INDUSTRIAL PAINT+ PRODUCTS IN DECORATIVE Innovator’s SpiritBrand Nerolac Investor Presentation 5th Aug’25 Page 7 of 25 [(KANSAI PAINT
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 2. Business Environment Investor Presentation 5th Aug’25 Page 8 of 25
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Sluggish Demand in Automotive Business Environment Q1 25-26 Govt. focus on Infrastructure Decrease in Crude Oil Price Geopolitical Challenges Early Monsoon Rural Demand Stable Investor Presentation 5th Aug’25 Page 9 of 25 [(KANSAI PAINT NEROLAC
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 3. Decorative Update Investor Presentation 5th Aug’25 Page 10 of 25
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Decorative Highlights • 3 New Products Launched in Q1 • New product contribution >10% of Decorative Business New Product • Mid single digit growth in Project Business. • Exterior Texture and Waterproofing were the growth drivers Project/ Institutional Business Services continue to grow and is contributing ~5% of our decorative business Services • Mid single digit growth in network • Nerolac NextGen Shopee and Shop in Shop network 400+ Network Expansion • Continued strong performance in Construction chemicals, Water proofing & Premium Wood-finishes New Business • Paint+ product range continue to gain traction • Uptick in Saliency Paint + Investor Presentation 5th Aug’25 Page 11 of 25 [(KANSAI PAINT PAINT+ NEROLAC
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Innovation – Leveraging new technologies in product development Decorative Industrial ▪ Nerolac Perma No Heat: Unique product with Superior whiteness, excellent dirt pick up resistance and15 deg surface temperature reduction ▪ Soldier Rain Raksha White Emulsion: Low VOC product offers 300 % elongation, excellent weather resistance and water proofing performance warranty Auto 4W: High Gloss Clear Coat with excellent line workability, wet look with enhanced appearance has been launched Auto 2W: • New product Q2D Matt developed with new polymer coated metallic pigment to suit customer applications • Nerolac Heat resistance primitive silver having high level of sparkle with a non-yellowing has been launched PC Liquid: • Nero siloxane system for steel structure of infrastructure buildings launched. • Anti Carbonation Water based system for concrete substrate with high durability has been launched PC Powder: Polyethylene based anti-freeze thermoplastic coating launched for White goods segment Investor Presentation 5th Aug’25 Page 12 of 25 [(KANSAI PAINT NEROLAC
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Branding, Marketing & Media Campaigns Investor Presentation 5th Aug’25 Page 13 of 25 [(KANSAI PAINT Protect your walls with Nerolac Waterproofing Paints Pa, jab aayogl, aapka gha, hogo Monsoon ready with Nerolnc Waterproonng Paints NEROLAC PAINT+ 1'11joy Nature wall Raunak with Nerolac Paints NEROLAC PAINT+ Opt for Nerolac Uow Whites ........ jlskl safedl de wow wall f eeling.
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Decorative Accolades Gold Winner Ambient Media 12 Awards won 1 x Grand Prix (Best in Industry) 3 x Gold | 2 x Silver | 6 x Bronze 7 Baby Blue Elephant Awards Investor Presentation 5th Aug’25 Page 14 of 25 [(KANSAI PAINT GOLDEN AWARD OFMONTREUX ~~wul NEROLAC ~ 2025 Z KVOORIUS CREATIVE AWARDS
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 4 . Industrial Update Investor Presentation 5th Aug’25 Page 15 of 25
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Industrial Highlights ▪ Technology upgrade has aided growth in Premium PU segment ▪ Key brands in PU and Alkyd have shown significant growth in the Retail segment Liquid ▪ Protective coating has reported high growth Powder • Witnessed moderate demand growth driven ▪ On the back of sluggish demand, we continued to perform well and gain market share. ▪ Focus on Innovation and creating New technologies to increase Total Addressable Market Automotive Auto Refinish Performance Coating Investor Presentation 5th Aug’25 Page 16 of 25 [(KANSAI PAINT NEROLAC
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Industrial Accolades TAFE Global Supplier Meet 2025 Best Supplier Award Maruti Suzuki Superior Performance in Safety Award Suzuki Motorcycle India Cost Down Award Investor Presentation 5th Aug’25 Page 17 of 25 [(KANSAI PAINT r 'TAFE BEST SUPPLIER AWARD Kansai Nerolac Paints Limited DELI\ ER\ P[RFORl\.1ANCE •••:--~.,••,-.. ••,..,,,••,,.,,••,,.,,,,,,.,,,,,.,..,/ ' ,.- u , , o••••,"••"•'',•,/' " ,'• I! MAAUTI ~~ $ SUZUKI ('.! f t ;<; CERTIFICATE OF APPRECIATION ::' n l'A."ienledto •• •:_;,~ K1-nni Nt'ro lu P.ainlt Umll «l :,,',: 1n n_--rogm 1ion oltJw\r '.~ ,upt'O(l t prrfDl'"m,uicr in lhe 1.re.11 ul ~• ;~l F ;"'~~;'.; ,u D ~i!. r.i_·;,·_·,,::.,~: -,~\·.,,,_.,,,_.),::~.,,,,.,..,_,''''-;;;;_,7,_~7,,}1 ---------------,J '------------------------,J \......._ ____________ _ NEROLAC
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. ESG Rated in the Top 8 Percentile within the Chemical Industry Group in the S&P Global Large-Midcap ESG Index 2024 Ranked in the Top 12 Percentile of FTSE4Good Index 2024 Review Recognized in the “Strong ” Category by CRISIL ESG Ratings 2025 KNPL has been awarded a Bronze Medal. This result places KNPL among the top 26% of companies assessed by Ecovadis Ranked 26/582 in the chemical sector and received Low RISK rating Investor Presentation 5th Aug’25 Page 18 of 25 [(KANSAI PAINT ,/ BRONZE I Top 35% ecovadis L------------------- NEROLAC - - - - - - - - - - - - - - - - - - -11- - - - - - - - - - - - - - - - - - - - r - - - - - - - - - - - - - - - - - - - ... - - - - - - - - - - - - - - - - - - -1 Crisil ESGRafngs &Analytics II I II ~~. I :: S&P Dow J,ones : :: Indices I SUSTAINALYTICS: ADivieian o,f S&PGlcbal FTSE4 Good a Morningstar company I ------------------~--------------------
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. CSR Initiatives Creating a Sacred Grove (Devrai) for a Greener Tomorrow – Development of Green Belt Enhancing Neurological Healthcare Access through support for procuring Immunological Testing Equipment Painting of R. K. Vakil Higher Secondary School, IlavCaring for the Community - Medical Camp Empowers Rural Health Supporting Foundational Education - Study Desk to Primary School at Kanpur Dehat Caring for Community Health - Public health camp at Moranalappalli Promoting Community Health - Medical Camp Fostering Civic Pride - Painting for renovation and beautification of District Police Office LOTE PLANT SAYAKHA PLANT BAWAL PLANT MUMBAI HO GOA PLANT HOSUR PLANT VIZAG PLANT JAINPUR PLANT Investor Presentation 5th Aug’25 Page 19 of 25 [(KANSAI PAINT ----------------------------------------------------------------------------------------------------------------------------------
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 5 . Financial Performance Investor Presentation 5th Aug’25 Page 20 of 25
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Financials Standalone Q1 FY 25-26 Rs. In Millions Q1 % to Q1 % to 2024-25 Net Revenue 2025-26 Net Revenue Net Revenue 20504 100.0% 20874 100.0% Material Cost 12918 63.0% 13336 63.9% Operating Expenses 4242 20.7% 4418 21.2% PBDIT 3344 16.3% 3120 14.9% PBT 3234 15.8% 3101 14.9% PAT 2411 11.8% 2309 11.1% Growth (Q1 2025) : Net Revenue : 1.8% PBDIT: -6.7%, PBT: -4.1% Investor Presentation 5th Aug’25 Page 21 of 25 [(KANSAI PAINT NEROLAC
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Financials Consolidated Q1 FY 25-26 Rs. In Millions Q1 % to Q1 % to 2024-25 Net Revenue 2025-26 Net Revenue Net Revenue 21331 100.0% 21620 100.0% Material Cost 13477 63.2% 13821 63.9% Operating Expenses 4557 21.4% 4768 22.1% PBDIT 3296 15.5% 3032 14.0% PBT 3081 14.4% 2955 13.7% PAT 2249 10.5% 2156 10.0% Growth (Q1 2025): Net Revenue: 1.4%; PBDIT: -8.0%; PBT: -4.1% Investor Presentation 5th Aug’25 Page 22 of 25 [(KANSAI PAINT NEROLAC
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 6 . Risk and Outlook Investor Presentation 5th Aug’25 Page 23 of 25
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Risk and Outlook • As per RBI, Construction activity to sustain momentum • In Automotive, • PV & 2W segment demand is expected to be stable/ subdued, but Tractor segment is expected to do well backed by growth in agriculture activity • Growth in Infrastructure such as railways, roads, airports, power augur well for the paint industry and will drive demand for high-end coatings. Risk Outlook • Geopolitical tensions leading to supply chain disruptions and volatility in commodity prices • Inflationary risk due to the tariffs Investor Presentation 5th Aug’25 Page 24 of 25 [(KANSAI PAINT NEROLAC
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All rights for this presentation are reserved with Kansai Nerolac Paints Limited. THANK YOU All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 5th Aug’25 Page 25 of 25 [( KANSAI PAINT Nerolac Paints ha bharosa, Rahhe tension-free humesha. NEROLAC PAINT+ NEROLAC