INVESTOR PRESENTATION 12M : FY 2012-13

9th May2013

Disclaimer
This presentation may contain statements which reflect Managements 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 fluctuations, competitive product and pricing pressures and regulatory developments. Responses can only be given to questions which are not price sensitive.

Economic Environment Company Performance Business Review Risks and Outlook

Economic Environment Company Performance Business Review Risks and Outlook

Economic Environment
Global Uncertainties continue in the broader economic environment Euro zone continues its struggle with the debt crisis While US has been showing glimmers of recovery, threat of fiscal cliff continues Impact of the new economic experiment of aggressive monetary stimulus to stop deflation and boost growth in Japan still unclear India GDP growth headed for a decade low of around 5% in FY 13 Private sector investments down sharply Burgeoning current account and fiscal deficit due to fiscal indiscipline Currency remained weak during most part of the year Reversal in commodity prices getting negated due to the weak local currency Most sectors faced volatile business conditions On a positive side, Inflation has started edging lower leading to monetary easing

Economic Environment Company Performance Business Review Risks and Outlook

Corporate Highlights
Asian Paints new brand identity unveiled during the year Forays into Home Improvement by exploring an agreement with the Sleek Group New plant at Khandala with initial capacity of 300,000 KL commissioned International Business PAT crosses Rs 100 crores Second 50:50 JV with PPG becomes operational during the year Final Dividend of Rs. 36.50 per equity share (365%) Sub-division of equity share of the face value of Rs. 10 to Re. 1

Financials Q4 FY 2012-13
STANDALONE (Rs Crs) Income from Operations PBDIT PBDIT % PAT 2012-13 2232.5 354.0 15.9% 239.6 Price reduction of 0.20% effected in January 2013 Higher depreciation in Q4 due to Khandala Plant 2011-12 2075.8 337.4 16.3% 244.6 -2.1% Growth % 7.5% 4.9%

CONSOLIDATED (Rs Crs) Income from Operations PBDIT PBDIT% PAT after Minority Interest

2012-13 2733.1 393.0 14.4% 251.1

2011-12 2542.9 378.0 14.9% 259.5

Growth % 7.5% 4.0%

-3.2%

Standalone Income from Operations YoY Growth

35.0% 30.0% 25.0% 20.3% 20.0% 16.2% 15.0% 10.0% 6.7% 5.0% 0.0% Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 12M FY 2012 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 12M FY 2013 7.5% 12.7% 20.0% 28.9% 25.5%

Standalone Income from Operations

28.9% 25.7%

Note: Industrial business of APL was transferred to AP Coatings in June 2011. Hence, numbers for the period after June 2011 needs to be interpreted accordingly.

Standalone PBIT margins Paint Segment

25.0% 20.4% 20.0% 18.9% 16.6% 15.0% 18.5% 16.2% 17.6% 15.5% 18.4% 15.5% 17.4%

10.0%

5.0%

0.0% Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 12M FY 2012 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 12M FY 2013

Note: Industrial business of APL was transferred to AP Coatings in June 2011. Hence, numbers for the period after June 2011 needs to be interpreted accordingly.

Financials 12M FY 2012-13

STANDALONE (Rs Crs) Income from Operations PBDIT PBDIT% PAT 2012-13 8971.7 1547.3 17.2% 1050.0 2011-12 7964.2 1351.8 17.0% 958.4 9.6% Growth % 12.7% 14.5%

CONSOLIDATED (Rs Crs) Income from Operations PBDIT PBDIT% PAT after Minority Interest

2012-13 10970.7 1731.9 15.8% 1113.9

2011-12 9632.2 1508.8 15.7% 988.7

Growth % 13.9% 14.8% 12.7%

DIVIDEND
In FY 2012-13 Total Dividend of Rs. 46.00 per share Final dividend of Rs. 36.50 per share Interim dividend of Rs. 9.50 per share Payout ratio of 49.1% for the year

In FY 2011-12 Total Dividend of Rs. 40.00 per share Final dividend of Rs. 30.50 per share Interim dividend of Rs. 9.50 per share Payout ratio of 46.5% for the year

Economic Environment Company Performance Business Review Risks and Outlook

Business Review Decoratives India

Demand Conditions were subdued Growth lower as compared to trend seen in earlier years Growth mainly led by Emulsions South division fared better than other regions Cumulative Price increase during the year is 5.1% Price increase of 1.2% affected w.e.f May 2013 Inflationary pressures in raw materials lower compared to last year
Q4 12-13 Q3 12-13 Q2 12-13 Q1 12-13 Actual Consumption Average 101.76 102.56 107.71 106.67

12M FY13 consumption average was at 104.57, taking 12MFY12 base as 100.

Business Review Decoratives India

Capital Expenditure: Khandala Plant with an initial capacity of 300,000 KL commissioned in Feb, 2013 Capacity addition of 50,000 KL completed at Rohtak in Apr 12 Current total installed paints capacity at 9,44,000 KL Sales & Marketing: Colour Idea Stores 97 stores launched Over 24,000 colour world machines installed by end of FY 13 Launch of a new and vibrant website Colour Consultancy at Home (CCH) launched in 5 cities Upgraded APHS service launched in Delhi and Bengaluru Waterproofing products (SmartCare) launched

Business Review International

Performance Good value growth seen across regions Growth higher due to currency impact as well Material cost inflation moderate during the year, having a positive impact on margins Improved demand conditions in Middle East even though political events and macro economic uncertainty in some countries continues Global slowdown impacting others regions Royalty to AP from International operations at Rs. 20.9 crores
Regions Caribbean Middle East Asia South Pacific Total Paint Sales (Rs Crores) 12M 12-13 12M 11-12 Gr% 197.2 171.8 14.8% 726.7 578.4 25.6% 380.0 314.7 20.7% 113.4 90.6 25.2% 1,417.3 1,155.6 22.7% PBIT (Rs Crores) 12M 12-13 12M 11-12 Gr% 11.2 7.6 45.8% 73.9 61.5 20.1% 35.6 24.6 44.5% 15.4 12.2 26.1% 136.0 106.0 28.3%

Regions Caribbean Middle East Asia South Pacific Total

Business Review Industrial India

Auto and Non-Auto Industrial Demand for Industrial coatings remained weak due to the Industrial slowdown Demand for Automotive coatings was impacted due to the slowdown in the Automotive sector as fuel prices and interest rates remained high PPGAP experienced high material cost inflation on account of both prices as well as weak currency PPGAP acquired Kruppa Paints in the month of November 2012

Economic Environment Company Performance Business Review Risks and Outlook

Outlook
Decoratives Demand conditions seem challenging considering the subdued economic environment Normal rainfall prediction; would give comfort on rural demand Correction in commodity prices and crude have eased outlook on margins International Business environment continues to remain uncertain in Middle East and Egypt Caribbean region might continue to face slowdown Demand conditions to remain moderate in South Asia Auto and Non-Auto Industrial Automotive sector witnessing sharp drop in demand; automotive coatings segment expected to face tough business conditions Non Auto demand conditions are not very optimistic. However, expected easing of monetary policy and Govts policy momentum might improve the demand outlook

Thank You

Annexures

Consolidated Q4 FY 2012-13
Rs Crores

Particulars Income from Operations Material Cost Employee Remuneration Other Expenses PBDIT Depreciation Profit from Operations Other Income PBIT Interest PBT Curr. & Def Tax PAT before M inority interest Minority Share PAT EPS

Q4 12-13 2,733.1 1,552.3 160.1 627.7 393.0 48.9 344.2 38.2 382.4 5.8 376.6 117.8 258.9 7.7 251.1 26.2

Q4 11-12 2,542.9 1,526.1 135.4 503.4 378.0 31.4 346.6 42.8 389.4 15.0 374.4 109.7 264.7 5.2 259.5 27.1

Gr % 7.5% 1.7% 18.2% 24.7% 4.0% 55.7% -0.7% -10.7% -1.8% -61.5% 0.6% 7.4% -2.2% 47.9% -3.2% -3.2%

Standalone Q4 FY 2012-13
Rs Crores

Particulars Income from Operations Material Cost Employee Remuneration Other Expenses PBDIT Depreciation Profit from operations Other Income PBIT Interest PBT Curr. & Def Tax PAT EPS

Q4 12-13 2,232.5 1,258.0 104.9 515.7 354.0 40.1 313.9 43.7 357.6 6.9 350.8 111.2 239.6 25.0

Q4 11-12 2,075.8 1,238.8 85.3 414.3 337.4 25.5 311.9 48.6 360.5 13.7 346.8 102.2 244.6 25.5

Gr % 7.5% 1.5% 22.9% 24.5% 4.9% 57.3% 0.7% -10.1% -0.8% -49.9% 1.1% 8.8% -2.1% -2.1%

Consolidated 12M FY 2012-13

Rs Crores

Particulars Income from Operations Material Cost Employee Remuneration Other Expenses PBDIT Depreciation Profit from Operations Other Income PBIT Interest PBT Curr. & Def Tax PAT before M inority interest Minority Share PAT EPS

FY 12-13 10,970.7 6,438.4 623.6 2,176.8 1,731.9 154.6 1,577.3 114.5 1,691.9 36.6 1,655.2 495.7 1,159.5 45.6 1,113.9 116.1

FY 11-12 9,632.2 5,795.3 526.0 1,802.2 1,508.8 121.1 1,387.6 107.4 1,495.1 41.0 1,454.1 433.5 1,020.6 31.9 988.7 103.1

Gr % 13.9% 11.1% 18.6% 20.8% 14.8% 27.6% 13.7% 6.6% 13.2% -10.6% 13.8% 14.3% 13.6% 43.3% 12.7% 12.7%

Standalone 12M FY 2012-13

Rs Crores

Particulars Income from Operations Material Cost Employee Remuneration Other Expenses PBDIT Depreciation Profit from operations Other Income PBIT Interest PBT Curr. & Def Tax PAT EPS

FY 12-13 8,971.7 5,188.9 404.6 1,831.0 1,547.3 127.0 1,420.3 126.2 1,546.4 30.6 1,515.9 465.9 1,050.0 109.5

FY 11-12 7,964.2 4,746.3 341.6 1,524.4 1,351.8 99.5 1,252.3 141.5 1,393.8 30.8 1,362.9 404.5 958.4 99.9

Gr % 12.7% 9.3% 18.4% 20.1% 14.5% 27.6% 13.4% -10.8% 11.0% -0.8% 11.2% 15.2% 9.6% 9.6%

Key Ratios
Standalone Consolidated % to Income from Operations 12M 12-13 12M 11-12 12M 12-13 12M 11-12 Material Cost 57.8% 59.6% 58.7% 60.2% PBDIT 17.2% 17.0% 15.8% 15.7% PBT 16.9% 17.1% 15.1% 15.1% PAT 11.7% 12.0% 10.2% 10.3% For Consolidated results PAT is af ter Minority Interest