Archean Chemical Industries Ltd. · NSE:ACI
Archean Chemical Industries — Q3 FY23 Earnings Presentation
24 slides from Archean Chemical Industries's earnings presentation, Feb 13, 2023
Slide 1: Archean Chemical Industries Limited
Archean Chemical Industries Limited 13" February 2023 BSE Limited National Stock Exchange of India Limited Listing Operations Exchange Plaza Phiroze Jeejeebhoy Towers Dalal Street Bandra-Kurla Complex, Bandra (E) Mumbai-400001 Mumbai-400051 Scrip Code- 543657 Symbol-ACI Dear Sir/Madam, Subject: Inve
Slide 2: Investor Presentation Q3 & 9M FY23
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Archean Chemical Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
Slide 4: Archean at Glance
Archean at Glance Rs. 10,586.9 Mn *9MFY23 Revenue Bromine (~51%) A leading Manufacturer of Specialty Marine Chemicals in India * Leadership position in Indian Bromine merchant sales + ~48% Export Business Strong Clientele - 27 Global & 25 Domestic . ore ee ] Industrial Salt (~49%) Integrated product
Slide 5: Key Attributes behind Strong Foundation
Key Attributes behind Strong Foundation
Slide 6: Key Attributes Behind Strong Foundation
Key Attributes Behind Strong Foundation Pp ~ 7 AY . ! \ Responsible Corporate | 7 ; 1 ; Strong Product Portfolio N.. A a ™ - Proven Credential C6 2 Integrated Facility N y 1 oo ™ . 1 High Industry Growth | § i 3 : High Entry Barriers AY \ 4 ~ ’ ~ nd N C4 : Deep Engagement with Clients
Slide 7: 1. Strong Product Portfolio
1. Strong Product Portfolio Bromine Industrial Salt SOP Product Bromine is the only non-metallic element that . There are 14,000 commercial uses of Salt, a Sulphate of Potash, also known as potassium is a liquid at standard conditions source of Sodium and Chlorine which are basic sulphate, is a high
Slide 8: 2. Integrated Production Facility at Hajipir, Gujarat
2. Integrated Production Facility at Hajipir, Gujarat Established Infrastructure * Archean use brine from own reservoirs as raw material which include Industrial Salt, kainite and end bittern. Other raw materials are primarily sourced from third-party suppliers in India * Globally, two most popular
Slide 9: 3. High Entry Barriers
3. High Entry Barriers Archean has proven to be a reputed producer with a track record of providing high quality products 1 2 3 4 Access to Reserves Limited number of Multi year Investment in High cost and intricacy locations globally Brine field Development of product development with a suitable cl
Slide 10: 4. Deep Engagement with Clients
4. Deep Engagement with Clients Enduring customer relationships helped to expand product offerings and geographic reach Strong Clientele Revenue Contribution Global 27 Largest Customer Domestic 25 Top 10 High Focus on Exports Top 20 TOTAL 52 Clients . . 27% Major Clients Domestic ’ 0, Export J <Z So
Slide 11: 5. High Industry Growth
5. High Industry Growth Product Bromine Industrial Salt Sulphate of Potash (USS billion) {mn in MT) {mn in MT) 3.92 173.00 185.00 2.70 157.00 2.86 2.96 6.50 5.55 Global Market Size 2017 2020 2025E 2017 2020 2025E 2017 2020 2025E * Increasing demand for flame retardants * Increasing industrialization
Slide 12: 6. Proven Credentials
6. Proven Credentials With Industry Standards and Regulatory Credentials Accredited three star export house by Director General of Foreign Trade, Ministry of Yoenp® o> MINISTRY OF COMMERCE ~~ ® \wiernafig, AND INDUSTRY Key DIRECTOR GENERAL OF Commerce and Industry, Government of India Q Certificates
Slide 13: 7. Responsible Corporate
7. Responsible Corporate Environment & Safety Measure Social Governance Environment and safety considerations are an Focused on education and skill development Undertakes all necessary steps to comply with important part of our operations. We and healthcare for our staff and local all the requiremen
Slide 14: Next Level of Growth
Next Level of Growth
Slide 15: Moving up the Value Chain
Moving up the Value Chain 01. Brownfield Expansion 02. Greenfield Expansion Expanded Bromine and Industrial To expand into downstream Bromine Salt capacities derivative performance products * Added a feed enrichment section at the site in Bromine * To set up a new facility at Jhagadia, GIDC Bromine
Slide 16: Greenfield Expansion of Bromine Derivatives
Greenfield Expansion of Bromine Derivatives Acume Ih di Chemicals ~Rs. 2,520 Mn = 1a, FY24e Pvt. Ltd. GIDC Subsidiary CAPEX |____Location Bromine High-end Flame Retardant Clear Brine Fluids Pure Terephthalic Acid (PTA) Synthesis Derivatives 10,000 MTPA 13,000 MTPA 5,000 MTPA «Globally, properties wo
Slide 17: Q3 & 9M FY23 Performance Highlights
Q3 & 9M FY23 Performance Highlights
Slide 18: Q3 & 9M FY23 Performance Highlights
Q3 & 9M FY23 Performance Highlights Total Revenue {Rs. mn) EBITDA (Rs. mn) Profit After Tax {Rs. mn) Geographic-Wise {%) Business-wise {%) 3,725.9 1,676.5 982.9 3,133.7 [12] 1,232.8 ~N Bromine >= i Export [32] 490.2 o Salt Domestic SOP 1% Q3 FY22 Q3 Fy23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 Fy
Slide 19: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. in mn) Q3FY23 Q3FY22 9MFY23 9MFY22 Total Income 3,725.9 3,133.7 18.9 10,942.9 7,724.6 41.7 Cost of material consumed 90.3 126.5 3235 342.2 Change in Inventory (154.7) (16.8) (89.8) (78.4) Purchase of Stock —in — Trade - - 44.3 - Employee Cost 264.8 97.8 476.8
Slide 20: Strong Balance Sheet Performance
Strong Balance Sheet Performance* Inventory, Debtors and Creditors Turnover {in days) RoCE (%) RoE (%) 42.1 111.8 Inventory [Jl] Debtors [ll creditors 392 91 Dec-21 Dec-22 Dec-21 Dec-22 Net Debt to Equity (x) Fixed Asset Turnover (x) Dec-21 Dec-22 5.4 1.0 0.1 Dec-21 Dec-22 Dec-21 Dec-22 — O77 StONda
Slide 21: NSE Listing and IPO Overview
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Slide 22: Utilisation of Net IPO Proceeds
Utilisation of Net IPO Proceeds Particulars (Rs in Mn) Original Cost Utilisation Amounts un - utilised Redemption or earlier redemption, in part or full, of NCDs 6,440.0 6,440.0 - General corporate purposes (*) 1,243.2 - 1,243.2 Total 7,683.2 6,440.0 1,243.2 . (*)As per prospectus, the General Corpo
Slide 23: Way Forward
Way Forward Augment Capacity The company has recently expanded capacity through debottlenecking of Bromine & Industrial Salt and will play vital role in growth trajectory Greenfield Expansion New Bromine Derivatives capacity is expected to be commercialized by FY24 at Jhagadia, GIDC which will impro
Slide 24: Thank You
Archean Chemical Industries Limited Life’s good with our Chemistry Thank You ! Company: Investor Relations Advisor: S (G A Stxatesic Growth Advisors Zam) Archean Chemical Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L24298TN2009PLC072270 CIN - U74140MH2010PTC204285 Mr. Rajeev / Mr. Ragh
Archean Chemical Industries — Q3 FY23 Earnings Presentation on 6ix