Asahi Songwon Colors Ltd. · NSE:ASAHISONG
Asahi Songwon Colors — Q2 FY2023 Earnings Presentation
37 slides from Asahi Songwon Colors's earnings presentation, Nov 15, 2022
Slide 1: Exchange filing cover letter
UN AsahiSongwon ee. Ref: ASCL/SEC/2022-23/54 November 15, 2022 1. To, : 4 The General Manager ‘The General Manager (Listing) Department of Corporate Services National Stock Exchange of India Ltd BSE Limited 5t Floor, Exchange Plaza 1® Floor, New Trading Ring Plot No. C/1, G Block Rotunda Building, P
Slide 2: Investor Presentation November 2022
Investor P Presentation t ti NOVEMBER 2022 ASAHI SONGWON COLORS LIMITED BSE CODE : ASAHISONG | 532853 NSE CODE : ASAHISONG
Slide 3: Agenda
01 ABOUT US 04 FINANCIAL STATEMENT SUMMARY SLIDE 03-10 SLIDE 23-26 02 BUSINESS CANVAS 05 QUARTERLY HIGHLIGHTS SLIDE 11-19 SLIDE 27-32 03 STRATEGIC ADVANTAGES AND INVESTMENT MERITS SLIDE 20-22
Slide 4: About Us
About 04 – Corporate Portrait 05 – Our Journey Us 06 07 – Strengthening Business Model – Global Footprint 08 – Product Portfolio 09 – Clientele 10 – Board of Directors
Slide 5: Corporate Portrait
04 Asahi Songwon Colors Limited is one of the leading manufacturers of blue 2 Manufacturing decades of facilities manufacturing expertise (Phthalocyanine) pigments f iink, for k plastics, l ti paint, i t textile and paper industry Exporting to Team strength of with globally benchmarked manufacturing
Slide 6: Our Journey: Small start with aspirations to become a global leader
05 SMALL START WITH ASPIRATIONS SUBDUED FINANCIAL GROWTH | READY FOR THE NEXT LEG TO BECOME A GLOBAL LEADER IN STRENGTHENING BUSINESS OF GROWTH PIGMENT INDUSTRY MODEL 1993 2014 2016 2018 2019 Onwards • 1993 – Commenced operations of green • 2016 – Debottlenecking of CPC blue crude • Company entered
Slide 7: Strengthening Business Model
06 2005 -2015 2015 -2020 Added 2 new Added new products products Continuous investments made and entered towards making the business of AZO pigments 2015 2021 Served 19 Serving more than customers and Ramping up operations customers currently Presence in serving customer 18 countries across 22 count
Slide 8: Global Footprint: Countries we export to
07 • List i off countries i we export to 1. USA 2. KOREA 3. JAPAN 4. GERMANY 5. SPAIN 20 6. BELGIUM 6 4 7. SOUTH AFRICA 5 12 3 8. AUSTRALIA 1 10 2 9. BRAZIL 10. CHINA 19 8 11 11. HONG KONG 15 21 18 12. ITALY 16 14 13. INDONESIA 17 13 14. MALAYSIA 9 15. MEXICO 16. PHILIPPINES 17. SINGAPORE 8 7 18. TA
Slide 9: Clientele
08 We have come a long way from our humble beginnings 19 years of collaboration • We have not lost a single customer to become a preferred and still going strong in our more than 3 decades of existence choice of supplier to the • More than 80%of business is l large MNC's MNC' across theth Supply agr
Slide 10: Board of Directors
9 Mrs. Paru M. Jaykrishna Mr. Gokul M Jaykrishna Mr. Arvind Goenka Mr. Jayprakash M Patel CHAIRPERSON & MANAGING DIRECTOR JOINT MANAGING DIRECTOR & CEO DIRECTOR DIRECTOR She holds a Bachelor’s degree in Law A major in Finance with a minor in A graduate from St. Xavier College, He holds a B. E. degre
Slide 11: Board of Directors (continued)
10 Dr. Pradeep Jha Mr. R.K. Sukhdevsinghji Mr. Munjal M Jaykrishna Mr. Arjun G Jaykrishna Mrs. Shivani Revat Lakhia DIRECTOR DIRECTOR DIRECTOR EXECUTIVE DIRECTOR DIRECTOR He is a renowned mathematician A graduate from St. Stephens A Major in Finance and Marketing A Bachelor of Science in She is an A
Slide 12: Business Canvas
Business 12 – Phthalocyanine Pigments – Our Mainstay 13 – Infrastructure Facility – Padra Unit Canvas 14 – Azo Pigments – Growth Driver 15 – Azo Pigments – Capex 16 – Infrastructure Facility – Dahej Unit 17 - Acquisition q of Atlas Life Scinces 18 - Key Highlights of the Transaction 19 - Pregabalin
Slide 13: Phthalocyanine Pigments: Our Mainstay
12 At Asahi, we use our PRODUCT CATEGORY CHARACTERISTICS • One of largest experience and expertise manufacturer of CPC to manufacture Blue crude globally Phthalocyanine pigments Backward integrated for Long lead time creates p Blue Beta and Alpha y barriers entry f th for the printing i ti iink, k M
Slide 14: Infrastructure Facility: Padra Unit
13 Setup in 2004 Products manufactured: Waste and effluent Phthalocyanine Pigments treatment facilities available • CPC Blue crude • Beta Blue Situated on 98,000 sq. mt. • Alpha Blue plot No fforced N d pollution ll ti shutdown in the last decade Available area for further Available capacities expan
Slide 15: Azo Pigments: Growth Driver
14 At Asahi Songwon has WHY AZO PIGMENTS CHINA +1 1 A STRONG TAILWIND entered into a joint venture The global organic and specialty pigment market is estimated with UK’s leading colour at $5 billion and Azo is the largest in volume. manufacture Tennants High demand that is largely met through import
Slide 16: Azo Pigments JV with Tennants Textile Colours
15 A JV WELL POSITIONED TO CAPTURE HUGE MARKET OPPORTUNITY. • Company has entered into JV Agreement with Tennants Textile Colors Limited ( TTC ) of UK for putting up a state of the art Red & Yellow Azo pigment Plant with Capacity of 2400 TPA • Cost of project ~₹82 crores • Have required approvals to
Slide 17: Infrastructure Facility: Dahej Unit
16 Setup in 2020 Products manufactured: Waste and effluent Azo Pigments treatment facilities available Situated on 60,000 sq. mt. plot Phase 2 b Ph brownfield fi ld capex to begin after reaching 50% capacity utilization levels Capacities expandable Available capacities upto - 10,000 10 000 TPA • 1,2
Slide 18: About Atlas Life Sciences
17 SALIENT FEATURES FINANCIAL HIGHLIGHTS FY22 (₹ IN CRORE) Unaudited Figures Incorporated in member team strength REVENUE Key Products include under research • Pergabalin and development, including 6 new molecules and intermediates ABOUT ATLAS LIFE SCIENCES • R-Compound f existing for i ti products
Slide 19: Key Highlights of the Atlas Acquisition
18 The acquisition of Atlas Asahi Songwon Colors will Asahi Songwon Colors will Life Sciences Private Limited acquire an additional stake establish a new plant on the financed through a mix of in Atlas Life Sciences Private vacant land parcel in Chattral in ₹ 28 crores of internal accruals Limited e
Slide 20: Pregabalin Industry Landscape
19 The global consumption of PG is 1,430 T growing India is the biggest supplier of PG Indian manufacturing base for PG is matured at 10% CAGR. The formulators in India account for globally and is rapidly increasing its with Indian producers driving process efficiency a 28% share of consumption (395
Slide 21: Strategic Advantages and Investment Merits
Strategic 21 – Strategic Advantage 22 – Investment Merits Advantages and Investment Merits
Slide 22: Strategic Advantages
21 HIGH LEAD TIME REALIGNMENT OF GLOBAL STRATEGIC LOCATION LONG TERM SALES SUPPLY CHAIN CONTRACT • Customer approvals take long • The Chinese government's The new plant at Dahej brings • Majority pigments under long time. However, once the crackdown a few years ago Asahi in the cluster of chemical t
Slide 23: Investment Merits
22 to put the company p p y back Balance Sheet backed on growth path by technological tie up with industry leaders Consolidation the to further to put the enhance operation company in a sweet efficiencies and increase spot profitability Asahi Songwon Colors Limited
Slide 24: Financial Statement Summary
Financial 24 – Summary of P&L 25 – Summary of B/S Statement 26 – Summary of Cash Flow Statement Summary
Slide 25: Summary of P&L
24 (₹ IN CRORE) except EPS PARTICULARS FY18 FY19 FY20 # FY21 # FY22 # Revenue from Operations 293.83 293.62 283.64 283.08 415.38 Other Income 4.47 0.04 0.78 0.31 0.89 Total Income 298.30 293.66 284.42 283.39 416.26 Total Operating Expenses 255.59 254.09 249.24 233.57 378.71 EBITDA 38.25 39.53 34.40
Slide 26: Summary of Balance Sheet
25 (₹ IN CRORE) PARTICULARS FY18 FY19 FY20 # FY21 # FY22 # Total Equity (Networth) 181.64 193.59 215.66 274.31 284.43 Non Current Liabilities 39.02 38.49 25.59 24.32 44.68 Current Liabilities 98.83 76.98 36.56 90.84 140.56 Total Equity and Liability 319.49 309.06 277.81 389.47 469.67 Non Current Ass
Slide 27: Summary of Cash Flow Statement
26 (₹ IN CRORE) PARTICULARS FY18 FY19 FY20 # FY21 # FY22 # Cash Flow from Operating p g Activities 5.91 27.06 56.97 8.05 ((0.38)) Cash Flow from Investing Activities (43.83) (2.87) (15.76) (60.07) (28.16) Cash Flow from Financing Activities 37.78 (24.20) (38.90) 49.98 28.38 Net increase/ (decrease)
Slide 28: Quarterly Highlights
Quarterly 28 – Key Highlights 29 – Management Commentary Highlights 31 – Financial Statement Summary
Slide 29: Key Highlights: Exports vs Domestic, Segment Revenue
28 EXPORTS VS DOMESTIC REVENUE CONSOLIDATED STANDALONE BREAK-UP# (IN %) Revenues Revenues 66 34.42% (21.82)% 12.27% (30.48%) 34 EBITDA EBITDA Exports Domestic 27.63% (36.36)% 22.87% 25.53% SEGMENT WISE REVENUE BREAK UP (IN %) PAT PAT 10.14 (122.03%) (131.5%) (51.53%) 45.68% 34.96 Phthalocyanine API
Slide 30: Management Commentary
29 “I am pleased to report on our While we have had a slow start to the performance for Q2FY23. We recorded third quarter, we expect demand to pick subdued financial performance on the up from Q4FY23 as the restocking back a very challenging operating comes to an end. environment. All our three busi
Slide 31: Management Commentary (continued)
30 “While the overall operating progress with our ongoing CAPEX plans environment remained very challenging and expect to begin commercial we made significant qualitative progress production ahead of our our plans. in our Azo and API business. On a consolidated basis, all our On the Azo front we hav
Slide 32: Standalone Financial Statement Summary
31 (₹ IN CRORE) except EPS Q-o-Q Y-o-Y Y-o-Y PARTICULARS Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Change Change Change Revenue from Operations 93.95 118.56 82.42 (30.48%) (12.27)% 190.82 200.97 5.32% Other Income 0.34 0.22 0.07 (68.18%) (79.55)% 0.54 0.29 (45.93%) Total Income 94.29 118.77 82.48 (30.55%)
Slide 33: Consolidated Financial Statement Summary
32 (₹ IN CRORE) except EPS Q-o-Q Y-o-Y Y-o-Y PARTICULARS Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Change Change Change Revenue from Operations 94.87 163.11 127.52 (21.82%) 34.42% 191.83 290.64 51.51% Other Income 0.13 0.19 (0.02) (110.53%) (115.38%) 0.16 0.17 9.18% Total Income 95.00 163.30 127.50 (21.92%
Slide 34: Consolidated Balance Sheet
33 (₹ IN CRORE) PARTICULARS FY22 H1FY23 Total Equity (Networth) 284.43 280.84 Non Current Liabilities 44.68 58.75 Current Liabilities 140.56 244.66 Total Equity and Liability 469.67 584.25 Non Current Assets 241 43 241.43 294 96 294.96 Current Assets 228.24 289.28 Total Assets 469 67 469.67 584 28 5
Slide 35: Consolidated Cash Flow Statement
34 (₹ IN CRORE) PARTICULARS FY22 H1FY23 Cash Flow from Operating p g Activities ((0.38)) ((4.32)) Cash Flow from Investing Activities (28.16) (55.45) Cash Flow from Financing Activities 28.38 60.01 Net increase/ (decrease) in cash and cash equivalents (0.15) 0.28 Cash and cash equivalents at beginni
Slide 36: Disclaimer
35 This h investor presentation has h been b preparedd by b Asahih Songwon S C l Colors Limited d andd does d not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof ) delivered or sup
Slide 37: Thank You
Thank You Contact Us “Asahi House” Mr. Saji Joseph 13, Aar yans Corporate Park , cs@asahisongwon.com Near Shilajj Railwayy Crossing, g Thaltej - Shilaj road, Thaltej, Ahmedabad - 380059. Mr. Diwakar Pingle Tel : 079 6832 5000 Diwakar.pingle@in.ey.com Mr. Abhishek Mehra abhishek@theinvestmentlab.in 9
Asahi Songwon Colors — Q2 FY2023 Earnings Presentation on 6ix