Chembond Chemicals Limited · NSE:CHEMBONDCH
Chembond Chemicals — Investor Presentation (December 2018)
48 slides from Chembond Chemicals's investor presentation, December 2018
Slide 1: Chembond Chemicals Limited: About us and our activities
Chembond Chemicals Limited About us and our activities 2018-19
Slide 2: Welcome
Welcome • Chembond Chemicals Limited is in its 44th year of operations • Consistent performer; dividend paying since inception • Pan-India manufacturing, sales and service footprint • Head Office in Navi Mumbai, Maharashtra • DSIR certified R&D facilities at Navi Mumbai, Maharashtra and Dudhwada, Gu
Slide 3: Core segments we operate in
• Core segments we operate in: - Water Treatment - Material Technologies - Construction Chemicals - Polymers - Animal Nutrition • Family driven, professionally managed agile organization • Senior leadership and field team work along with customers • Fair risk appetite as new business lines are evalu
Slide 4: Slides following walk through our businesses
• Slides following this would walk you through our businesses of, • Water Treatment Chemicals • Animal Health and Nutrition • Construction Chemicals • Material Technologies • Polymers, and our, • Financial Performance
Slide 5: Water Treatment
Water Treatment Chembond Chemicals Limited 2018-19
Slide 6: Water
Water • Water is extensively used by industries • Different areas / applications of water: • Raw Water, Boiler Water, Cooling Water, Waste Water, RO membrane • Raw water quality and availability varies across the country / world • Treatment of raw water for any further use thus becomes critical • In
Slide 7: What We Do
What We Do • Specialty Water Treatment chemicals • Raw water treatment coagulants • Boiler water treatment formulations • Cooling water treatment products • Waste water treatment flocculants • Reverse Osmosis (RO) membrane treatment chemicals • Water treatment equipment • Filtration systems for susp
Slide 8: With You For Your Water
WITH YOU FOR YOUR WATER UREA LENT 25ELE Leeervona
Slide 9: Application Areas
Application Areas ri)
Slide 10: Complete Water Treatment solutions
Complete Water Treatment solutions Chembond Clean Water Technologies Ltd Chembond Water Technologies Ltd Complete Bio- Water Equipment remediation Chemicals Treatment solutions
Slide 11: Superior Performance = Customer Satisfaction
Superior Performance = Customer Satisfaction Superior Technical Products Monitoring Perform- Services ance
Slide 12: Customer Segments
Customer Segments Petro- Cement Fertilizer Pulp & Paper chemical Commercial & Institutional Refining Steel Speciality Pharma, Food & Textiles & Dyeing Chemicals Power Beverage, Dairy
Slide 13: Our Silver Bullets
Our Silver Bullets • Integrated solutions – equipment, bio-remediation and chemicals • Trained, Empowered and Dedicated services team • Pioneer in India for leading edge technology introductions: • Glassy Zinc Polyphosphate corrosion inhibitor • Chlorine Dioxide based oxidizing biocide • Multicompon
Slide 14: Animal Health & Nutrition
Animal Health & Nutrition Chembond Chemicals Limited 2018-19
Slide 15: About
About • Chembond entered this segment in 2010 • Produce nutritional supplements for animal health industry • Catering mainly to the poultry and dairy industry • Presence across India with manufacturing and storage locations at Tarapur, Baddi, Ranipet, Jamshedpur • We offer quality products at excell
Slide 16: Livestock in India
Livestock in India 1st in Milk Production 128 Mn Ton 3rd in Egg Production 2nd in freshwater aquaculture 63 Billion Per Capita/Year Chicken – 2.5 kg, Eggs – 56, 4th in Broiler Production – Milk – 291 gm 2808 Mn/2012 Self sufficient in most feed ingredients
Slide 17: Indian Market by Segment
Indian Market by Segment BioSecurity Products 29% Therapeutic 41% Feed Additives 30% Market Size (2014) - Rs. 4,200 cr Est. in 2018 – Rs. 6,000 cr
Slide 18: Indian Market by Species
Indian Market by Species 5% 3% 2% Cattle 40% 50% Poultry Pets Aqua Others
Slide 19: Product Range
Product Range Enzymes, Probiotics, α D3 and other Vitamin Prebiotics Concentrates, Premixes Disinfectants, Minerals, incl. Water Purification, Chelated Minerals Sanitizers products that enhance nutrition, reduce waste, improve mortality rates
Slide 20: Construction Chemicals
Construction Chemicals Chembond Chemicals Limited 2018-19
Slide 21: Construction Chemicals
Construction Chemicals • Largest organized industry in the economy • Different segments: • Infrastructure, Industrial, Residential, Repairs and Renovation • Cement and aggregate quality, seasonal changes, geography and project requirements are dominant factors • Quality control at usage point is cru
Slide 22: What We Do
What We Do • Chemicals for a wide range of applications • Admixtures for concrete modification • Waterproofing solutions for under-construction and built-up structures • Polysulphide, PU and Acrylic based sealants • Floor treatment and repair • Cementitious and epoxy based concrete repair mortars •
Slide 23: Balancing Expectations with Factors
Balancing Expectations with Factors Factors Expectations Input Quality Adaptability Climate Cost Standards Performance Location Logistics Localize and Adapt!
Slide 24: Customer Segments - Infrastructure
Customer Segments - Infrastructure Industrial & Roads Bridges Engineering Metro Ports & Jetties Industrial Rail Dams Airports
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Slide 26: Customer Segments - Other
Customer Segments - Other Applicators Builders Contractors Industrial Influencers Distributors
Slide 27: i ®
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Slide 28: Advantage Chembond
Advantage Chembond + Multi location manufacturing and logistics + Localization and refinement ability + Better than industry product margins + Regular new product introductions + Maintaining differentiation in a competitive and fragmented market
Slide 29: Material Technologies
Material Technologies Chembond Chemicals Limited 2018-19
Slide 30: Material Technologies
Material Technologies The Material Technologies division & its subsidiaries manufacture a wide range of synergistic products: • Metal Treatment Chemicals • Automotive Sealants • Industrial Coatings • Engineering Adhesives • Paint Booth Wipes & Chemicals • MRO Products These find use in industries li
Slide 31: Metal Treatment Chemicals
Metal Treatment Chemicals Pretreatment of steel for automotive & Wire & tube drawing appliance industry Metal working, lubrication & cleaning Coil coating
Slide 32: Automotive Sealants
Automotive Sealants Typical Sealant Applications Passenger & Commercial Vehicles
Slide 33: Industrial Coatings
Industrial Coatings • Waterborne and solvent based coatings for industrial parts like engines, chassis, structures, transformers, automobile parts, agricultural equipment, construction equipment, and many more applications • Leaders in water based paints in India, which eliminate solvent emissions t
Slide 34: Engineering Adhesives
Engineering Adhesives le om * Milaractit ‘THREADLOCKER cr TH Tara
Slide 35: High Performance Coatings
High Performance Coatings for Corrosion Protection for Industrial & Commercial Floors
Slide 36: Material Technologies Value Chain
Material Technologies Value Chain Flooring Rust Loosen Anaerobics Underbody Steel & Coil Waterborne Coagulant Structural Anti-Seize Epoxies Seam Conversion Epoxies Tack Cloths Chain Lube Silicones Hemming Cleaners PU Masking Repair Epoxies PU Cavity Wax Lubricants DTM Peelable Cyano Structural NewGe
Slide 37: Financial Information
Financial Information Chembond Chemicals Limited 2018-19
Slide 38: Share of Revenue by Segment- Consolidated
Share of Revenue by Segment- Consolidated Toll Polymers 12% Polymers 1% 0% Water Toll Technologies 32% 41% Trading 6% Water Technologies 46% Trading 5% Animal Nutrition 9% Animal Nutrition 9% Construction Material Construction Material Chemicals Technologies Chemicals Technologies 6% 18% 8% 7% YTD 2
Slide 39: Revenue from Operations- Qtr on Qtr
Revenue from Operations- Qtr on Qtr Rs. In Lakhs Standalone Consolidated 10,212 8,950 7,818 7,936 7,457 7,205 6,776 6,358 5,974 5,639 5,968 5,390 3,285 3,687 Q1 2017-18 Q2 2017-18 Q3 2017-18 Q4 2017-18 Q1 2018-19 Q2 2018-19 Q3 2018-19 * Subsequent to the conclusion of toll manufacturing in June 2018
Slide 40: Revenue from Operations- YoY
Revenue from Operations- YoY Rs. In Lakhs Standalone Consolidated 33,423 32,086 30,023 26,606 27,446 27,105 24,367 23,779 23,128 21,027 21,675 21,564 20,356 17,725 17,690 15,369 13,453 11,494 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Slide 41: Product Margin %
Product Margin % Standalone Consolidated 41.55 38.84 38.22 36.65 36.12 36.99 35.07 32.54 33.11 31.22 23.73 18.78 19.36 20.26 17.94 17.02 17.54 18.20 17.89 16.41 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 YTD Q3 2018- 19
Slide 42: EBITDA- Qtr on Qtr
EBITDA- Qtr on Qtr Rs. In Lakhs Standalone Consolidated 993 905 853 677 715 705 523 460 412 412 327 332 226 -48 Q1 2017-18 Q2 2017-18 Q3 2017-18 Q4 2017-18 Q1 2018-19 Q2 2018-19 Q3 2018-19 * Subsequent to the conclusion of toll manufacturing in June 2018, the Company has decided to retain use of its
Slide 43: EBITDA- YoY
EBITDA- YoY Rs. In Lakhs Standalone Consolidated 20,020 18,955 2,713 2,975 2,801 3,520 3,319 2,609 2,288 2,203 2,068 1,748 997 1,185 1,177 893 907 1,123 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 * The results for 2015-16 include proceeds from sale of the Company's stake
Slide 44: PBT
PBT Rs. In Lakhs Standalone Consolidated 19,484 18,567 2,233 2,478 3,021 2,790 2,035 1,577 1,519 2,008 1,730 1,406 1,626 647 816 801 419 411 574 455 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 YTD Q3 2018-19
Slide 45: 5 Year Financial Performance - Consolidated
5 Year Financial Performance - Consolidated Highlights 2017-18 2016-17 2015-16 2014-15 2013-14 Rs. In Lakhs Operating Result Revenue From Operations 33,423 32,086 27,105 30,023 27,446 Other Income 1,064 1,830 3,321 138 121 Finance Cost 118 117 181 361 403 Depreciation 411 382 355 432 281 PBT 2,790 3
Slide 46: 5 Year Financial Performance – Standalone
5 Year Financial Performance – Standalone Highlights 2017-18 2016-17 2015-16 2014-15 2013-14 Rs. In Lakhs Operating Result Revenue From Operations 23,779 24,367 21,564 21,675 20,356 Other Income 1,048 1,682 3,481 330 288 Finance Cost 55 64 119 274 304 Depreciation 287 274 269 276 192 PBT 1,406 1,730
Slide 47: 5 Year Returns
5 Year Returns chembond Tue, 05 Feb 2019 CHEMBOND CHEM SENSEX -BSE BSE 319.40 (419.35%) 36,616.81 (60.73%) +600% Jul 14 Jan 15 Jul 15 Jan 16 Jan 18 Jul 18 Jan 19 1D 1W 1M 3M 6M 1Y 2Y By@
Slide 48: Contact Us
Contact Us Chembond Chemicals Limited Chembond Centre EL-71 Mahape MIDC Navi Mumbai 400710. INDIA www.chembondindia.com T: +91 22 62643000 - 03 F: +91 22 27681294 E: cs@chembondindia.com
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