IIFL Investor Conference

Mumbai, India

February 21, 2017

Disclaimer

This presentation may contain statements which reflect Management’s

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 – Q3 FY17

Financial Performance – Q3 FY17

Business Review – Q3 FY17

Risks and Outlook

Agenda

Group Overview

No. 1Paint Company

in India

Servicing

Consumers in over

65 Countries

Part of

30 share

BSE

S&P SENSEX

Over

USD 2 Billion

Group revenue

Operations in

19countries

49 Years of Market

Leadership in India

26Paint

Manufacturing

Plants

Forbes Asia’s Fab

50Company; Four

times in a row

3Times nearest

Competitor in India

4thLargest Paint

Company in Asia

14th Largest Coating

Company In the World

7000+

Employees

worldwide

Part of NSE Nifty

50

Asian Paints Group Today…

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

14.2

10.9 10.2

9.7

5.5

4.6 4.5 4.4 4.1

3.6 2.9

2.6 2.4 2.3 2.0 2.0 1.9

1.5 1.2 1.2

In B

illio

n U

SDGlobal Standing…

* Coatings World – 2016 Top companies report (July 2016)

4th largest in Asia

14th largest in the World

Sherwin Williams will be the largest coatings company with its announced acquisition of Valspar

Worldwide Operations…

Jamaica

Barbados

Trinidad & Tobago

Egypt

Oman

Bahrain

UAE

Nepal

India

Sri Lanka

Bangladesh

Singapore

Solomon Islands

Vanuatu

Fiji

Samoa

Tonga

EthiopiaIndonesia

Strong Brands…

Aspiration…

“To be the fore runner of inspiring décor and to actively

empower customers to create their dream homes”

Belief in fostering the principles of trust and transparency

Ability to adapt itself to the changing environment

Dynamic professional management team focused towards delivering stakeholder

value with highest levels of corporate governance

Innovative strategies in the marketplace

Efficient manufacturing and logistics

Capabilities to effectively harness Information Technology to improve efficiency in

operations (SAP, i2, etc.)

Prudent management of financial resources

Focus on Research and Development (dedicated group R & D centre in India at

Turbhe near Mumbai)

Stand for…

Innovative Market place Strategies Small Packs

Exterior Paint Segment

Consumer and Dealer helpline

Colour Next (Prediction of Colour trends through in-depth research

Special effect and textured paints

Signature Stores / Colour Ideas store / AP Homes

Samplers

Beautiful Homes Guide

Water Proofing and Wallpaper business

Ezycolour Service brand

Home Solutions (Painting solution service)

Colour Consultancy @ Home

Adhesives

Powerful Consumer Connect

• Innovative retailing strategy showcasing latest product and solution offerings enabling consumers to get inspired, try and decide

• Strong presence in all product segments, servicing over 40,000 dealers

Signature Stores in

Metros

Colour Ideas Stores AP Homes

Robust Supply chain and IT State of the art Supply Chain system using cutting edge latest technology for efficient management

and execution

World Class, large manufacturing facilities with latest automation technologies

Largest single location paint manufacturing capacities at Rohtak (Haryana) and Khandala,

(Maharashtra).

Planning to set up new, fully-automated paint manufacturing facility at Mysuru and Vizag in South

India over the next 2-3 years

Strong distribution and logistic network across geographies using modern material storage and

handling technologies

Dedicated in-house IT team adding value to business process in terms of higher productivity, lower

costs, speed, consistency and standardization

Dedicated R&D

Dedicated Research and Technology facility at Turbhe

(Near Mumbai) with over 150 scientists

Supports company strategy around Technology

development, Sustainable new products, Green

products, Value re-engineering for productivity

improvement and cost optimization

Our scientists had won the Roon award in 2013 – one

of the highest technical achievements in the coatings

industry

Changing with times

Business Portfolio

• Decorative Coatings – India

• Industrial Coatings – India

• PPG Asian Paints

• Asian Paints PPG

• International Operations

• Home Improvement Business – India

• Sleek

• Ess Ess FY 2015- 2016

81%

2%4% 13%

Decorative - India Home Improvement - India

Industrial - India International Operations

Decorative Coatings - India

Largest business unit of the company

Primarily operates in four segments

Interior Wall finishes

Exterior Wall finishes

Metal Finishes (Enamels)

Wood Finishes

Introduced new categories like water-proofing, wallpapers & adhesives

Product for every price point and requirement

Industrial Coatings - India

Asian Paints participates in the Industrial Coatings segment, through two 50:50 JVs with PPG Inc. of USA

PPG Asian Paints (For Auto Coatings)

The Auto segment is catered through our JV (PPG AP)

Second largest supplier to the auto segment in India

Now, the largest player in auto refinish segment, post acquisition of ICI India’s 2k auto refinish

business in 2007

Commissioned a 3,200 KL / year plant in Chennai, Tamil Nadu in 2008

Asian Paints PPG (For Non Auto Industrial Coatings)

Protective coatings, floor coatings, road marking paints and powder coatings segment catered to

by this JV

Services customers in the sectors of Infrastructure, Oil & Gas, Power Plants, White Goods, etc.

International Operations

Contributes about 13% to the group turnover

Began by establishing presence in Fiji in 1978

Presence in 18 countries spread over 4 regions

Focus on establishing presence and growing in high growth emerging markets

Looking for expansion in key markets of Africa and South East Asia

Acquired 51% stake in Kadisco Chemical Industry PLC, Ethiopia in Feb 2015

Setting up paint manufacturing facility at Indonesia

Enters into a Share Purchase Agreement with the existing shareholders of Causeway Paints Lanka (Private)

Limited, Sri Lanka, for acquisition of 100% stake

Transaction closure subject to certain conditions precedent and statutory approvals

Caribbean : Jamaica, Barbados and Trinidad & Tobago

Middle East & Africa : UAE, Bahrain, Oman, Egypt & Ethiopia

Asia : Nepal, Sri Lanka, Bangladesh, Singapore & Indonesia

South Pacific : Fiji, Tonga, Solomon Islands, Vanuatu & Samoa

11.0%

54.7%

27.9%

6.4%

Caribbean

Middle East & Africa

Asia

South Pacific

FY 2015-2016Net Sales Break-Up

Home Improvement Business - India

In 2012, Asian Paints announced plans to consider opportunities in the area of Home Improvement

and Décor

Entered Kitchen space in India in Aug’13 by acquiring 51% stake in Sleek International

Sleek is a major organized player in the modern kitchen solution space with pan India presence

Engaged in the business of manufacturing, selling and distributing kitchens, kitchen

components including wire baskets, cabinets, appliances, accessories etc.

Retail network of more than 30 showrooms including shop-in-shops and 250+ dealers

Launched “Smart kitchen range” for easy installation and design

Entered the Bathroom fitting business in June’14 through acquisition of front end sales business

(including brands, network and sales infrastructure) of ESS ESS Bathroom products Pvt Ltd

ESS ESS is a prominent player in the bath business segment in India and has high quality

products in this segment

Launched Sanitary ware range ‘Bathsense’ & premium range of Bath fittings ‘Royale’

Chemicals

Asian Paints manufactures Phthalic Anhydride (PAN) and Pentaerythritol (Penta)

PAN manufactured in Gujarat and Penta in Tamil Nadu

More than 50% consumed internally

Contribution to the group’s revenue has been continuously decreasing

Consistent performance…

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2005-2006 2015-2016

3,021

15,534

Consolidated Net Sales and Operating Income ( ` Crores)

CAGR 17.8%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2005-2006 2015-2016

212

1,726

Net Profit (` Crores)

CAGR 23.3%

Sustained value creation...

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2005-2006 2015-2016

6,178

83,326

Market Cap (` Crores)

CAGR 29.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

20

11

-12

20

12

-13

20

13

-14

20

14

-15

20

15

-16

73%

52% 51%54%

39%

46% 47% 49% 51% 53% 54%

Dividend Payout Ratio

Recent Accolades…

Rated as the 5th ‘Most valuable Brand’ in India – Sept 2015 (Compiled by marketing and brand

consultancy Millward Brown and WPP Group)

Included in Forbes India’s List of “Super 50 companies in India’ in 2016

Felicitated as one of the ‘MOST IMPACTFUL COMPANIES OF THE DECADE’ by CNBC Awaaz in Jan

2015

Included in Forbes Magazine's – ‘Asia's Fab 50’ List of cos 4 years in a row from 2011

Ranked as the 4th ‘Most Admired Company’ in the FMCG Sector by Fortune India – Aug 2014

Presented with the Asian Centre for Corporate Governance & Sustainability Award for the ‘Best

Governed Company’ in 2011

Asian Paints receives the ‘Best Audit Committee’ Award from the Asian Centre for Corporate

Governance & Sustainability in 2011

Economic Environment – Q3 FY17

Financial Performance – Q3 FY17

Business Review – Q3 FY17

Risks and Outlook

Presentation structure

Group Overview

Economic Environment

Challenging third quarter on the macro front – both domestic as well as international

Uncertain environment, on the back of implementation of the radical demonetization decision

Most external agencies have revised the growth forecasts downwards; but in our assessment,it is too early to have a fair picture of the impact.

Growth prospects for the global economy continues to be weak

Unexpected outcome of the US Presidential elections has raised lot of uncertainty in themarket

Financial markets were impacted too

Rupee saw depreciation of almost 2% during the quarter.

Economic Environment – Q3 & FY17

Financial Performance – Q3 FY17

Business Review – Q3 FY17

Risks and Outlook

Presentation structure

Group Overview

Financials – Q3 FY17 results

27

Gro

wth

ove

r La

st Y

ear

Standalone Revenue Growth Trend

28

The growth % in Q3FY17, Q2FY17 & Q1FY17 is as per the new Indian Accounting Standards (IND AS) which was adopted wef 1st April 2016 ; hence it not comparable with the numbers for the previous quarters

Economic Environment – Q3 FY17

Financial Performance – Q3 FY17

Business Review – Q3 FY17

Risks and Outlook

Presentation structure

Group Overview

Business Review : Q3 FY17

DECORATIVES BUSINESS

Decorative Paints business in India registered low single digit volume growth in the third quarter

The quarter began on a good note due to the festive season of Diwali.

However, demand was impacted to certain extent in the month of November on the back of demonetization, particularly in the North and Central parts.

Sales in South India especially Tamil Nadu were also impacted due to cyclone Vardah in the month of December

On a sequential basis, material prices continued to witness an upward trend in the quarter thereby squeezing margins to an extent.

No Price revision done in Q1 & Q2 FY17

Cumulative price decrease of 2% for FY16 against increase of 0.39% in FY15

Price decrease of 2% effective 26th Feb’16

Announced average price increase of 3% across products wef 1 Mar’17

Continued focus on network expansion and opening new ‘Colour Ideas’ store

36,000+ ‘Colour World’ machines and 300+ ‘Colour Ideas’ stores across the country

SmartCare range of waterproofing products continues to grow well

Business Review : Q3 FY17

INDUSTRIAL BUSINESS

PPG-Asian Paints (PPG-AP)

Registered decent growth in the quarter due to good pickup in the Auto OEM segment

However, the General Industrial category servicing mainly the two-wheeler OEMs was impacted due

to the fallout of demonetization

Asian Paints PPG (AP-PPG)

Good growth witnessed in Industrial Liquid Paints and Powder coatings segment

Lower raw material prices aided profitability of both these industrial businesses

Under IND-AS, PPG-AP to be treated as an associate company wherein only APL’s share of Profit after Tax of PPG-APconsolidated as against proportionate consolidation of every line item of P&L. At the same time, AP-PPG to be consolidatedas a subsidiary of APL in the consolidated financials.

Business Review : Q3 FY17

INTERNATIONAL BUSINESS

The international business reported good numbers specifically aided by contribution from Nepal, Fiji andcertain units in the Middle East.

Egypt, one of our key markets, saw a decent growth but was impacted by the sharp devaluation of theEgyptian Pound.

Egypt implemented a flexible exchange rate regime effective 3rd Nov 2016 following which theEgyptian Pound experienced significant depreciation.

This has led to a recognition of loss on translation of the company’s receivable from SCIB-Egyptreducing the Other income in the current quarter and year by ` 16.4 crores.

Shortage of foreign exchange also continued to impact operations in Ethiopia.

Construction of the greenfield plant at Indonesia in progress

HOME IMPROVEMENT BUSINESS

The pace of growth for both - Kitchen business under ‘Sleek’ and the Bath business under ‘Ess Ess’, wasslower than earlier with some impact of delayed sales as a result of demonetization

We continue to enhance our distribution reach and drive operational efficiencies in both thebusinesses

Capex Total capex at Standalone level for FY17 estimated to be about ` 600 crores

Includes some spends on the two new paint manufacturing facility to be built at Vizag (Andhra Pradesh) and Mysuru (Karnataka)

Revision of the proposed paint manufacturing capacity of Vizag

The total capacity will be 5,00,000 KL/annum (4,00,000 KL announced earlier)

Investment outlay of ` 1785 crores (` 1750 crores announced earlier)

No change in Mysuru plant plan

6,00,000 KL plant with an investment of approximately ` 2300 crores

Both plants (Vizag & Mysuru) to come up in phases depending on future demand conditions

Capacity expansion and augmentation of Ankleshwar (Gujarat) plant

Planning to enhance Ankleshwar plant capacity from 130,000 KL/annum to 300,000 KL/annum

Augmenting manufacturing capacity of synthetic resins and emulsions from 32000 MT to 85000 MT(approx.)

Capacity expansion and augmentation to be completed over next 3-4 years depending on demand conditions

Approx. investment of ` 650 crores through internal accruals

Economic Environment – Q3 FY17

Financial Performance – Q3 FY17

Business Review – Q3 FY17

Risks and Outlook

Presentation structure

Group Overview

Risks & Outlook

Domestic demand outlook remains uncertain, atleast over the short term.

However, we expect improvement in conditions going forward

Good growth in the agriculture sector coupled with reduced interest rates in the economy should provide necessary impetus for growth

Over the long term, a “less-cash” economy and implementation of GST, despite some expected initial hiccups, would push the demand to the formal sector

Raw material prices have seen an upward trend in the last couple of quarters Announced average price increase of 3% across products wef 1 Mar’17

In the international markets, some of the units like Egypt, Ethiopia and Trinidad, continue to face challenges around currency devaluation, foreign exchange availability and demand conditions

Thank you

37

STANDALONE Q3 & 9M FY 2016-17

` In Crores

Particulars Q3 FY 17 Q3 FY 16 Gr % 9M FY 17 9M FY 16 Gr %

Total Income from Operations 3,637.3 3,611.4 0.7% 10,598.3 9,928.8 6.7%

Material Cost (Including excise duty) 2,197.8 2,189.3 0.4% 6,296.4 6,081.6 3.5%

Employee Costs 180.0 162.1 11.0% 561.7 486.5 15.4%

Other Expenses 588.6 546.9 7.6% 1,707.9 1,501.7 13.7%

PBDIT 670.9 713.2 -5.9% 2,032.3 1,858.9 9.3%

Depreciation 74.6 59.1 26.1% 221.7 173.2 28.0%

Profit from operations 596.4 654.0 -8.8% 1,810.7 1,685.8 7.4%

Other Income 52.4 55.6 -5.8% 215.9 189.0 14.3%

PBIT 648.7 709.6 -8.6% 2,026.6 1,874.7 8.1%

Finance Costs 4.6 5.8 -20.7% 13.2 13.1 0.5%

PBT before exceptional items 644.2 703.8 -8.5% 2,013.4 1,861.6 8.2%

Exceptional Items - 65.3 - 65.3

PBT after exceptional items 644.2 638.5 0.9% 2,013.4 1,796.3 12.1%

Taxation 218.3 214.9 1.6% 651.1 574.5 13.3%

PAT 425.8 423.6 0.5% 1,362.3 1,221.9 11.5%

Other Comprehensive Income (OCI) (62.1) 8.1 23.2 (1.4)

Total Comprehensive Income 363.8 431.6 -15.7% 1,385.5 1,220.4 13.5%

EPS 4.4 4.4 0.5% 14.2 12.7 11.5%

38

CONSOLIDATED Q3 & 9M FY 2016-17

` In Crores

Particulars Q3 FY 17 Q3 FY 16 Gr % 9M FY 17 9M FY 16 Gr %

Total Income from Operations 4,354.0 4,245.2 2.6% 12,668.5 11,787.9 7.5%

Material Cost (Including excise duty) 2,621.5 2,581.4 1.6% 7,542.0 7,227.9 4.3%

Employee Costs 264.3 241.8 9.3% 821.1 721.8 13.8%

Other Expenses 691.8 636.5 8.7% 1,995.9 1,766.1 13.0%

PBDIT 776.3 785.5 -1.2% 2,309.6 2,072.1 11.5%

Depreciation 85.5 69.4 23.2% 255.4 203.4 25.5%

Profit from operations 690.8 716.1 -3.5% 2,054.2 1,868.7 9.9%

Other Income 41.5 42.0 -1.3% 192.5 165.8 16.1%

PBIT 732.3 758.1 -3.4% 2,246.7 2,034.5 10.4%

Finance Costs 9.2 7.6 20.5% 21.6 25.8 -16.3%

PBT before Exceptional Item 723.1 750.5 -3.6% 2,225.1 2,008.7 10.8%

Exceptional Item - 52.5 ##### - 52.5 -100.0%

PBT after Exceptional Item 723.1 698.0 3.6% 2,225.1 1,956.3 13.7%

Taxation 246.5 227.4 8.4% 727.5 616.5 18.0%

PAT 476.6 470.6 1.3% 1,497.6 1,339.8 11.8%

Share in profit of associate 12.7 11.4 11.3% 39.0 27.5 42.0%

Net Profit after taxes and shares in profit of associate 489.3 482.0 1.5% 1,536.6 1,367.3 12.4%

Minority interest 23.1 13.0 78.1% 59.4 40.9 45.5%

PAT after Minority interest 466.2 469.1 -0.6% 1,477.2 1,326.5 11.4%

Other Comprehensive Income (OCI) (149.6) 25.0 ##### (68.2) 37.6 -281.4%

Total Comprehensive Income 339.7 507.0 -33.0% 1,468.4 1,404.9 4.5%

EPS 4.9 4.9 -0.6% 15.4 13.8 11.4%

KEY RATIOS

39

For Consolidated results, PAT is before Minority Interest

% to total Income from Operations Q3 FY 17 Q3 FY 16 9M FY 17 9M FY 16

Material Cost 60.2% 60.8% 59.5% 61.3%

PBDIT 17.8% 18.5% 18.2% 17.6%

PBT before exceptional item 16.6% 17.7% 17.6% 17.0%

PBT after exceptional item 16.6% 16.4% 17.6% 16.6%

PAT 10.9% 11.1% 11.8% 11.4%

Net Profit after taxes and shares in profit of associate 11.2% 11.4% 12.1% 11.6%

Consolidated

% to total Income from Operations Q3 FY 17 Q3 FY 16 9M FY 17 9M FY 16

Material Cost 60.4% 60.6% 59.4% 61.3%

PBDIT 18.4% 19.7% 19.2% 18.7%

PBT before exceptional items 17.7% 19.5% 19.0% 18.7%

PBT after exceptional items 17.7% 17.7% 19.0% 18.1%

PAT 11.7% 11.7% 12.9% 12.3%

Standalone