Slide 1: IFGL Refractories Ltd Result Update Presentation, February 2016
IFGL REFRACTORIES LTD RESULT UPDATE PRESENTATION , February 2016
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), has been prepared by IFGL Refractories Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not for
Slide 3: Industry Overview
inGi INDUSTRY OVERVIEW
Slide 4: World Steel Capacity Utilization declining
World Steel Capacity Utilization declining World Steel Output Decreased by 2.8% in 2015 4
Slide 5: …but Indian Refractories to perform better
…but Indian Refractories to perform better Indian Refractory Market Revenue 2008-2015 in USD mn 943 • Indian Steel production +12.1% 884 expected to increase in 2016 on 837 802 back of increased Infrastructure 714 demand and commission of new capacities by steel majors 567 474 • Growth will also be
Slide 6: IFGL - Ready to Capitalize
IFGL - Ready to Capitalize Increase Steel Steel Demand in Stabilizing World Production In the World ex- Economy to India on back of China to is lead to recovery Infrastructure expected to of Steel Demand growth & grow in 2016 in Developed Safeguards Economies IFGL is present in 50% of the Steel ‘No
Slide 7: Our Performance
Our Performance
Slide 8: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars [Rs. Crs] 9M FY16 9M FY15 Commentary Total Income 544.1 598.1 USA Performance: Continues to be slow on back Raw Material 277.8 300.3 of low steel production, however Q3 reported the Employee Expenses 87.3 87.9 best profitability in the last 3 quarters. Other Ex
Slide 9: Standalone Financial Highlights – 9M FY16
Standalone Financial Highlights – 9M FY16 Standalone Turnover [Rs. Crs] EBITDA [Rs. Crs] 250.1 238.2 37.3 31.3 9M FY15 9M FY16 9M FY15 9M FY16 Domestic V/s Export Sales [%] PAT [Rs. Crs] 20.9 16.3 Domestic 50.0% 50.0% Exports 9 M FY15 9M FY16 9
Slide 10: Consolidated Financial Highlights – 9M FY16
Consolidated Financial Highlights – 9M FY16 Consolidated Turnover [Rs. Crs] Normalized EBITDA [Rs. Crs] 598.1 544.1 79.9 68.0 9M FY15 9M FY16 9M FY15 9M FY16 Normalized EBITA margin PAT After MI [Rs. Crs] 13.4% 44.7 12.5% 31.3 9M FY15 9M FY16 9M FY15 9M FY16 *Normalized EBITDA is before Provisions (
Slide 11: Subsidiary Performance – 9MFY16
Subsidiary Performance – 9MFY16 Monocon Group [GBP mn]* EI Ceramics [$ mn] 25.0 13.0 11.0 20.9 2.1 2.0 1.4 1.4 0.5 1.0 0.4 0.4 9M FY15 9M FY16 9M FY15 9M FY16 Revenue EBITDA IFGL Exports [Rs. Crs] Hoffman Ceramics [Euro mn] PAT 7.7 34.3 34.1 7.6 8.2 0.6 0.5 6.9 0.4 0.3 4.5 1.5 9M FY15 9M FY16 9M FY1
Slide 12: Reputed Global Brand
iveth © 2 2 Oo me) cD) pa) > eo. co) faa Brand
Slide 13: Strong Brand in Global Refractories Market
Strong Brand in Global Refractories Market Consolidated Turnover [Rs. Crs.] FY15 Sales by Region +13.8% 781 793 Europe UK [exc UK] 676 12% 35% 606 473 Americas 23% India Asia [exc 22% India] 8% India Europe [exc UK] UK Americas FY11 FY12 FY13 FY14 FY15 Asia [exc India] 13
Slide 14: IFGL 5 Year Performance
IFGL 5 Year Performance Particulars [Rs. Crs] FY11 FY 12 FY 13 FY 14 FY 15 CAGR Total Income 473.3 607.1 676.8 781.0 793.5 13.8% Raw Material 247.0 303.8 352.3 378.0 406.1 Employee 66.1 84.3 98.7 110.0 117.9 Expenses Other Expenses 113.3 141.8 163.2 181.0 170.6 EBITDA 47.0 77.2 62.7 113.0 98.9 20.4%
Slide 15: Profitable Overseas Businesses…
Profitable Overseas Businesses… Revenue in Company Manufacturing Acquisition 2015 Acquisition Acquired Facilities Cost Revenue Year Monocon UK + USA + GBP 9.5mn GBP 21mn GBP 27mn Group, China UK - 2005 Hoffman Germany, Euro 7.0mn Euro 9mn Euro 10mn Group, Europe UK - 2008 Ei Ceramics Cincinnati, $ 1
Slide 16: …bucking Global Steel Trend and…
…bucking Global Steel Trend and… Revenue EBITDA PAT Monocon Group [GBP mn] EI Ceramics [$ mn] Hoffman Ceramics [Euro mn] 27.6 16.8 10.2 10.2 27.4 16.6 15.9 9.9 26.1 2.7 0.9 2.6 2.5 2.3 2.2 1.5 1.5 0.5 0.5 0.6 1.6 1.5 1.3 1.1 0.3 0.7 0.2 FY13 FY14 FY15 FY13 FY14 FY15 FY13 FY14 FY15 Despite challeng
Slide 17: …increasing focus on improving Returns
…increasing focus on improving Returns* Monocon Group EI Ceramics Hoffman Ceramics +330Bps +210Bps +390Bps 8.4% 15.7% 9.0% 13.6% EBITDA 5.1% 5.1% FY13 FY15 FY13 FY15 FY13 FY15 +850Bps +1,320Bps -60Bps 13.9% 16.4% 26.4% 15.8% ROCE 13.2% 5.4% FY13 FY15 FY13 FY15 FY13 FY15 * On Basis of Local currency
Slide 18: Sustainable Shareholder Value Creation
Sustainable Shareholder Value Creation Return on Capital Employed [%] Net Debt : Equity Ratio [x] Net Debt : EBITDA Ratio [x] 22% 0.7 2.5 18% 18% 0.5 1.9 0.5 13% 13% 1.4 0.3 0.2 0.8 0.7 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 * Consolidated ROCE = EBIT/ (Total Debt
Slide 19: Dividend Record
Dividend Record 20.0% 17.5% 15.0% 15.0% 5.0% FY11 FY12 FY13 FY14 FY15 Particulars (Rs.) FY11 FY12 FY13 FY14 FY15 Consolidated Book Value per Share 50.8 64.1 70.9 95.1 99.7 Consolidated Earning Per Share 6.9 11.3 7.9 18.3 15.1 Dividend Per Share 0.5 1.5 1.5 1.75 2.00 19
Slide 20: Contact
Contact For further information, please contact: Company : Investor Relations Advisors : IFGL Refractories Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L27202OR1989PLC002971 CIN - U74140MH2010PTC204285 Mr. Rajesh Agrawal Mr. Shogun Jain / Ms. Sanjita Ghosh rajesh.agrawal@ifgl.in jshogun@sgapl.net