Slide 1: Exchange filing cover letter
May 28, 2019 National Stock Exchange of India Ltd., BSE Limited, Listing Compliance Department Listing Department, Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East) Mumbai- 400001 Mumbai – 400 051 Scrip Symbol: GALAXYSURF Scrip Code: 540935 Su
Slide 2: Galaxy Surfactants Limited Investor Presentation - May 2019
Galaxy Surfactants Limited Investor Presentation - May 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Galaxy Surfactants Limited. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Q4 & FY19 Performance Highlights
Q4 & FY19 Performance Highlights 3
Slide 5: FY19: Key Developments
FY19: Key Developments Domestic (India) Business growth exceeds Market Growth rate Growth driven by all three customer segments: MNC’s, Regional & Local AMET performance remains subdued, owing to a slowdown in Egypt The ROW market outperformed on the back of a strong performance registered by the sp
Slide 6: Volume: FY19 Highlights (YoY)
Volume: FY19 Highlights (YoY) Performance Surfactants Specialty Care Products Total Volume +4% +19% +9% 1,30,596 1,35,337 79,374 2,14,711 1,97,429 66,833 Volume Highlights FY18 FY19 FY18 FY19 FY18 FY19 India Growth 12% Africa Middle East Turkey de-grew by 5% Rest of the World grew by 29% AMET Market
Slide 7: FY19 Revenue Highlights (YoY)
FY19 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ +8% +24% +13% 1,613 1,741 1,027 2,768 831 2,444 Revenue Highlights FY18 FY19 FY18 FY19 FY18 FY19 EBITDA^ PAT +20% +21% 358 191 298 158 Rs. In Crores FY18 FY19 FY18 FY19 As per Ind AS ^Includes other Income 6
Slide 8: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs in Cr) Q4 FY19 Q4 FY18 Y-o-Y FY19 FY18 Y-o-Y ▪ Average Forex rate in FY19 Net Revenue from Operations 682.0 643.6 6.0% 2,763.0 2,433.9 13.5% was Rs. 69.79 per USD versus Other Income 3.5 1.6 4.7 10.1 Rs 64.4 per USD in FY18 Total Revenue 685.5 645
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) March’19 March’18 Particulars (Rs. In Crores) March’19 March’18 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 511.2 439.9 EQUITY Capital work-in-progress 82.6 24.9 Equity Share Capital 35.5 35.5 Goodwill 2.5 2.4 Other Equity 841.3
Slide 10: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs in Cr) Q4 FY19 Q4 FY18 Y-o-Y FY19 FY18 Y-o-Y Net Revenue from Operations 492.3 451.8 9.0% 1,996.4 1,684.2 18.5% Other Income 3.8 1.1 35.9 13.0 Total Revenue 496.0 452.8 9.5% 2,032.3 1,697.1 19.7% Cost of Material Consumed 341.6 334.3 1,432.7 1,237.1
Slide 11: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) March’19 March’18 Particulars (Rs. In Crores) March’19 March’18 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 354.2 277.9 EQUITY Capital work-in-progress 40.2 18.5 Equity Share Capital 35.5 35.5 Goodwill 0 0 Other Equity 747.1 630.4
Slide 12: Business Overview
Business Overview 11
Slide 13: Truly Indian MNC…
Truly Indian MNC… Leading manufacturer of Product applications across Preferred supplier to leading Ingredient for Home & Mass, Mass-tige & Prestige Multinational, Regional & Brand Custodian Personal care Industry (HPC) range of Customers Local FMCG Brands Globally Recognized Integrated Across Full
Slide 14: …Vertically Integrated in HPC Industry
…Vertically Integrated in HPC Industry 7 Strategically Located 200+ Product Grades Extensive R&D Capabilities Indigenous Facilities with Inhouse Project 74 Members, R&D Centre, Pilot Intellectual property Execution Capabilities Plant, Product Application 60 Approved; 26 Applied 5 in India, 1 in Egyp
Slide 15: We grow faster than HPC FMCGs
We grow faster than HPC FMCGs India’s Largest Manufacturer of Oleochemical based Surfactants and Speciality Care Products for Home Care and Personal Care Industries (HPC) Consumer to Innovation & Chemistry Technology 01 03 05 Global Supplier 02 Multiple 04 High Growth to Global Brands Products acros
Slide 16: Our growth trajectory over Three Decades
Our growth trajectory over Three Decades 1986: Incorporation of Company 1994: New plant set up at Tarapur 2004: setting up of EOU at Taloja 2011: Commissioning of Egypt and Jhagadia Plants 1984: New Plant at Tarapur for 1995: Acquisition of Galaxy Chemicals 2009: Ethoxylates, Phenoxyethanol, Sunscre
Slide 17: Our focus is Personal & Home Care Segment
Our focus is Personal & Home Care Segment Hair Care Oral Care Home Care Shampoos Toothpaste Carpet Cleaner Conditioners Tooth powder Toilet Cleaner Colorants Mouth wash Detergents Styling Gels Fabric Cleaner Glass / Floor Cleaner Mass Mass -tige Prestige Serving needs across Consumer Segments Mass M
Slide 18: Product Offerings and Consumer Benefits
… with over 200 Product Offerings Anionic Surfactants FAES, FAS, LABSA ✓ Foam and Dirt removal properties Performance Surfactants Non-Ionics Surfactants Ethoxylates ✓ Cosmetics and Personal care products as emulsifiers and solubilisers Betaines ✓ Dermatological properties to reduces skin irritation
Slide 19: Our Business Segments…
Our Business Segments… Performance Surfactants Speciality Care Products “Substantive Raw Material in Customer’s End-products” “Unique Functionality to Customer’s End-products” About Product ▪ Products are functional in nature where End- ▪ Niche & Premium products consumer require foaming & cleansing
Slide 20: Our Global Footprints
Our Global Footprints USA: TRI-K Industries-100% owned Manufacturing ✓ Netherland R&D ✓ USA # Plants 1 TRI K Turkey China Industries Global # Employees 69 Headquarters Egypt Galaxy Marketing office ✓ Chemical (Egypt) S.A.E. India Egypt:100% owned* FY19: Revenue Breakup Manufacturing ✓ India: Parent
Slide 21: “Consumer to Chemistry”: Creation of Products
“Consumer to Chemistry”: Creation of Products 60 approved Patents and 26 applied Idea Stage GLOBALLY INDIA USA EUROPE ROW Applied Feasibility Stage 10 12 4 8 26 R&D spend New product 60 Patents 26 Patent of INR 60+ grades, since 2002 application Capability Stage pending Cr in 17-19 process, efficien
Slide 22: …with World-class R&D facilities
…with World-class R&D facilities Collaborative product development with Customers which helps Customers in choosing “Right Technology with Right Application” Inhouse R&D Team of 74 professionals comprising of doctorates, chemists and engineers Well-Equipped R&D Centre, Pilot Plant at Tarapur, Mahara
Slide 23: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities Location No. of Units Installed Capacity Details ✓ 1 pilot plant for scale up and commercialisation of new Tarapur, Maharashtra 3 31,995 MTPA products rolling out from R&D activities ✓ Easy access to the Jawaharlal Nehru Port Trust, Navi Mumbai ✓ One of the
Slide 24: 1750+ Clients across 75+ Countries
1750+ Clients across 75+ Countries & Many more… Long term strategic relationship with all of the top 10 customers Strict qualifications and extensive collaboration with customers for end-product development Of basket of 200+ products, FY19: Revenue Contribution All FMCG Protocols Through Innovation
Slide 25: Awards & Certifications: True recognition of Capabilities
Awards & Certifications: True recognition of Capabilities “Best Supply Partner”, 2015 2018 “Winning through Award of Global Performance” for Long Standing Partner Award Recognition from Innovation” at the Partner L’Oréal Asia Pacific 2012 Best Reliable Partner Award to Win, 2012 Awards “Certificate
Slide 26: Accolades Received during FY19
Accolades Received during FY19 Recognition from Clients ““Outstanding Contribution to “Emerging Business Partner PARTNER TO WIN” by Unilever - 2018” awarded by Abbott during ACI-2019 conference at Samanvay 2018 event Awards recieved ICIS Innovation Award 2018 Innovation Award CHEMEXCIL Best Process
Slide 27: Management Team on Board
Management Team on Board Mr. Unnathan Shekhar Promoter, Managing Director •Associated with Company since 1986 •Chemical Engineer, PGDM from IIM, Calcutta Mr. Natarajan K. Krishnan Mr. Kasargod Ganesh Kamath Executive Director, Chief Operating Officer Executive Director (Finance), Chief Financial Off
Slide 28: Along with Guidance of Senior Board Members
Along with Guidance of Senior Board Members Mr. Shekhar Ravindranath Warriar Chairman, Non-Executive Independent Director •Associated with Company since 2007 •More than 30 years with Unilever, India in various capacities Mr. Subodh S. Nadkarni Mr. Gopalkrishnan Ramakrishnan Mr. Shashikant R. Shanbha
Slide 29: The 4 Cs: Our Core Strength
The 4 Cs: Our Core Strength CHARACTER COMPETITIVENESS Transparent & Open, Respect & Adhering to Global Quality Value People, Dreaming & Standards, Supplying Envisioning , Conducting Customers Globally, Agile & Business with Integrity Nimble Footedness COMPETENCE COMFORT Respecting our Commitments, T
Slide 30: High Growth Industry
High Growth Industry 29
Slide 31: Personal & Home Care: Stable & Non-Cyclical Industry
Personal & Home Care: Stable & Non-Cyclical Industry Personal Care and Household Personal Care and Household Cosmetics Market Cleaning Market Cosmetics Market Cleaning Market 2015 215 43 11 2 2024 358 58 23 4 5.8% 3.3% 7.9% 7.2% CAGR CAGR CAGR CAGR Galaxy has a strong presence in High Growth Markets
Slide 32: Within Surfactants – Personal Care is fastest Growing Segment
Within Surfactants – Personal Care is fastest Growing Segment Surfactants Personal Care Surfactants Personal Care Market Surfactants Market Market Surfactants Market 2015 30.65 6.13 1.34 0.24 2024 45.16 10.27 2.28 0.47 4.4% 5.9% 6.1% 7.8% CAGR CAGR CAGR CAGR All figures in USD billion Source: Compan
Slide 33: Within Specialty – Personal Care Ingredients has largest Growth Potential
Within Specialty – Personal Care Ingredients has largest Growth Potential Global Personal Care Ingredients: USD 14-18 billion UV Absorbers ▪ Global sun care (of which 80% is sun protection) is a USD 11 bn Sunscreen market and is estimated to touch USD 12.3 bn by 2021 35% 40% ▪ Preservatives blends a
Slide 34: Growth Strategy
Growth Strategy 33
Slide 35: Personal & Home Care: High Entry Barrier Businesses
Personal & Home Care: High Entry Barrier Businesses Process Product Customers Chemical Engineering & inhouse project Wide spectrum of ingredients for Customer Centric Integrated solutions for execution Consumer categories / needs the HPC FMCG Industry Meeting pre-qualifications of the Product Qualit
Slide 36: Our Growth Vision
Our Growth Vision Sales R&D and Customer Market Strategy Profitability Optimization Innovation Wallet share Improve Financial Increased focus on Continue to focus Increase Wallet Mutually Performance high margin on R&D and Share with Existing Complimentary through Sales products in both Product Inno
Slide 37: Financial Performance
Financial Performance 36
Slide 38: Managing Volatility in Raw Material Prices and Currency
Managing Volatility in Raw Material Prices and Currency... Fatty Alcohol Prices (USD / MT) INR / USD Prices LA Price USDINR 1,600 75 1,500 73 1,400 71 1,300 69 1,200 67 1,100 65 LA Price USDINR … through Robust Risk Management Practices Source: Market Prices – ICIS – LOR Source: RBI 37
Slide 39: Our Performance Highlights
Our Performance Highlights Revenue^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +10% 2,768 +17% 358 +29% 191 2,444 298 158 2,172 282 148 1,875 1,807 238 192 101 68 FY15 FY16 FY17* FY18* FY19* FY15 FY16 FY17* FY18* FY19* FY15 FY16 FY17* FY18* FY19* EBITDA per tonne Total Volume Growth +7% +9%
Slide 40: Our Balance Sheet Strength
Our Balance Sheet Strength Debt/ Equity (x) Return on Equity (%) 1.1 28.8% 0.9 25.2% 24.4% 23.9% 20.4% 0.7 0.5 0.3 FY15 FY16 FY17* FY18* FY19* FY15 FY16 FY17* FY18* FY19* Cash Flow from Operating Activities Return on Capital Employed (%) (Rs in cr) 283 26.8% 25.2% 23.9% 22.6% 170 18.6% 144 111 41 FY
Slide 41: Thank You
Thank Company : Investor Relations Advisors : You CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Ms. Neha Shroff / Mr. Shrikant Sangani Email: Paritosh.Srivastava@galaxysurfactants.com neha.shroff@sgapl.net / shrikant.sangani@sgapl.net www.galaxysurfactants.com +91
Slide 42: Investors Release: FY19 Consolidated Performance
Investors Release Galaxy Surfactants Limited FY19 Consolidated Performance: Total Revenue (including other income) stood at Rs. 2,768 Cr YoY growth of 13.2% with an underlying volume growth of 8.8% EBITDA at Rs. 358.1 Cr, YoY growth of 20% PAT at Rs. 191 Cr, YoY growth of 21% Mumbai, 28th May
Slide 43: Investors Release: Managing Director Commentary
Investors Release Commenting on the performance Mr. U. Shekhar, Managing Director, Galaxy Surfactants Limited said “Our company has delivered a robust performance across all major geographies in FY19, registering a revenue growth of 13.5% as compared to FY18. This development was on the back of a he
Slide 44: Investors Release: Results and Final Dividend
Investors Release o India and ROW markets grew at 12% and 29% respectively o AMET market de-grew by 5% due to slowdown seen in the Egypt market o Performance Surfactants volume stood at 135,337 MT for FY19 up by 3.6% o Specialty Care Products volume stood at 79,374 MT for FY19 up by 18.8% EBITDA f
Slide 45: About Galaxy Surfactants Limited
Investors Release About Galaxy Surfactants Limited: Incorporated in 1986, Galaxy Surfactants Ltd is leading manufacturers of Performance Surfactants and Specialty Care products with over 200 product grades. These products are used in consumer-centric Home and Personal care products like hair care, o