Gfl Ltd · NSE:GFLLIMITED
Gfl — Gujarat Fluorochemicals — Investor Presentation (June 2019)
27 slides from Gfl's investor presentation, June 2019
Slide 1: Gujarat Fluorochemicals Limited Investor Presentation
GUJARAT FLUOROCHEMICALS LIMITED Investor Presentation June, 2019 1
Slide 2: Table of Contents
Table of Contents • Financial Performance • Outlook • Fluoropolymers • Specialty Chemicals • Demerger Notes: 1. All numbers in this presentation are based on the Standalone Financial Accounts of GFL, and represent the chemical business alone. 2. The impact of extra-ordinary items like material non-r
Slide 3: Financial Performance
ial inanc F oD) O Cc a0) = \ O Qe a se) ae
Slide 4: Revenues
Revenues Rs. in crores 3000 800 2,731 695 680 682 700 674 2500 CAGR 19 % 2,084 600 2000 500 1,532 1500 1,435 1,321 400 1,141 300 1000 200 500 100 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Q1FY2019 Q2FY2019 Q3FY2019 Q4FY2019 4
Slide 5: EBITDA and EBITDA margin
EBITDA and EBITDA margin Rs. in crores 35% 300 35% 1000 30.6% 30.7% 29.9% 28.6% 30% 29.1% 29.1% 30% 250 816 800 213 207 25% 199 25% 198 21.4% 200 19.5% 19.6% 596 20% 20% 600 17.0% 150 15% 15% 400 100 282 281 300 10% 10% 194 200 50 5% 5% 0 0% 0 0% FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Q1FY2019 Q2
Slide 6: PAT and PAT margin
PAT and PAT margin Rs. in crores 20% 600 18% 160 16.7% 17.3% 18% 16.0% 16.6% 16.7% 16.4% 16% 140 500 16% 457 14% 115 118 120 112 14% 111 400 12% 100 12% 333 9.2% 10% 10% 300 80 8% 6.6% 8% 6.5% 6.0% 60 200 6% 6% 141 40 4% 4% 95 100 74 80 2% 20 2% 0 0% 0 0% FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Q1
Slide 7: Revenues – Caustic Soda
Revenues – Caustic Soda Rs. in crores 500 140 460 462 450 121 11% 120 115 114 112 400 350 341 100 300 300 280 257 80 250 200 60 150 40 100 20 50 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Q1FY2019 Q2FY2019 Q3FY2019 Q4FY2019 7
Slide 8: Revenues – Chloromethanes
Revenues – Chloromethanes Rs. in crores 400 120 10% 351 106 350 100 92 300 275 84 265 249 80 250 235 218 70 200 60 150 40 100 20 50 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Q1FY2019 Q2FY2019 Q3FY2019 Q4FY2019 8
Slide 9: Revenues – Refrigerants
Revenues – Refrigerants Rs. in crores 400 120 362 111 350 23% 98 313 100 300 260 78 80 74 250 230 204 200 60 150 126 40 100 20 50 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Q1FY2019 Q2FY2019 Q3FY2019 Q4FY2019 9
Slide 10: Revenues – PTFE
Revenues – PTFE Rs. in crores 1200 350 1,118 294 300 280 1000 275 269 21% 544 250 800 723 141 132 132 200 139 600 503 496 362 439 150 422 400 179 107 256 100 220 574 153 148 143 200 130 333 324 361 50 202 241 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Q1FY2019 Q2FY2019 Q3FY2019 Q4FY2019 Regular V
Slide 11: Revenues - VAP
Revenues - VAP Rs. in crores 350 330 100 93 93 90 4 41 300 77 21 80 31 6 250 70 67 138 10 CAGR 123 % 60 200 168 36 37 50 150 23 40 34 41 100 30 59 151 20 37 34 35 50 104 9 10 23 7 13 6 15 6 6 9 1 13 0 1 3 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Q1FY2019 Q2FY2019 Q3FY2019 Q4FY2019 New Refrigerant
Slide 12: Revenues - Others
Revenues - Others Rs. in crores 140 35 127 30 120 30 28 30 107 4 CAGR 8 % 3 24 25 100 12 25 91 89 1 3 7 24 5 80 76 20 9 72 25 36 4 35 25 60 12 15 32 11 9 40 11 9 32 9 40 16 25 10 28 22 20 20 5 27 29 32 8 8 8 7 17 15 19 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Q1FY2019 Q2FY2019 Q3FY2019 Q4FY2019
Slide 13: Balance Sheet
Balance Sheet Rs. in crores 6000 6000 5626 5626 667 5000 917 5000 410 4229 4229 0 4000 3630 3668 504 1192 4000 3630 3668 3230 0 3365 0 750 454 0 382 3365 0 285 792 3230 263 745 632 3000 459 670 846 478 442 459 3000 614 705 432 626 561 534 2000 4709 2000 3479 2319 2511 3036 1000 2093 2091 2060 2082 2
Slide 14: ROCE
ROCE 20% 18.8% 18% 16% 15.4% 14% 12% 10% 8% 5.9% 5.8% 6% 5.4% 4% 3.5% 2% 0% FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 ROCE ROCE = EBIT / Shareholder Funds + Total Debt – Strategic Investments – Treasury Investment 14
Slide 15: Outlook
Outlook 15
Slide 16: Global Fluoropolymers Market
Global Fluoropolymers Market • Global demand around 328,000 MT per annum in 2018, growing at around 4.5% per annum • Growth driven by E-mobility, clean environment, semi-conductor, high purity water processing, light weight roof structures, increased comfort and safety, internet of things, 5G, high
Slide 17: GFL’s strategy - fluoropolymers
GFL’s strategy - fluoropolymers • Differentiate itself from Chinese manufacturers and move closer to Western producers by • Product Development • Continuous improvement in product quality and consistency • Understanding customer requirements and undertaking product development to fulfill customer ne
Slide 18: GFL’s positioning - fluoropolymers
GFL’s positioning - fluoropolymers • As a result of above strategy, GFL is now seen as • Having a sustained and long term presence in the fluoropolymer market • A reliable supplier of consistent high quality product at competitive prices • Capable of engaging in product development to supply wider r
Slide 19: GFL’s strategic advantage - fluoropolymers
GFL’s strategic advantage - fluoropolymers • One of the most cost-competitive producers of fluoropolymers due to its fully integrated manufacturing operations starting from basic raw materials such as own mined fluorspar, sea water salt, coal and natural gas • Ability to develop new products and gra
Slide 20: GFL’s growth drivers - fluoropolymers
GFL’s growth drivers - fluoropolymers • GFL has further expanded its monomers (TFE and VDF) and fluoropolymers (PTFE Micro Powders, FKM, FEP, PFA, PVDF) capacity to cater to the growing demand for its products in all geographies • The timely enhancement of capacities will ensure that GFL is able to
Slide 21: Global Specialty Chemicals Market
Global Specialty Chemicals Market • Major applications: Crop protection chemicals and pharmaceutical intermediates • Organic Fluorine(F) molecules are increasingly becoming ingredients in newer crop protection and pharma molecules due to: • High efficacy as F has highest electronegativity or reactiv
Slide 22: GFL’s Strategy – specialty chemicals
GFL’s Strategy – specialty chemicals • GFL has set up an R&D Centre with 4 analytical laboratories and 2 pilot plants • GFL’s R&D Centre approved by Ministry of Science & Technology, Government of India • Using the R&D Centre, GFL has developed in house technology for about 11 molecules on lab, kilo
Slide 23: GFL’s strategic advantage – specialty chemicals
GFL’s strategic advantage – specialty chemicals • 30 years’ experience in safely handling F molecules • In house availability and adequate capacity of a host of key building blocks for F molecules • Cost competitive manufacturing due to fully integrated value chain • Cutting edge R&D centre and anal
Slide 24: Demerger
Demerger 24
Slide 25: Demerger
Demerger • GFL presently owns the chemicals business, 57% stake in the Wind Energy Solutions Business, 51% stake in the Cinema Exhibition Business, and some other investments • It is intended that the chemicals business, including all its assets and liabilities, will be demerged into a separate enti
Slide 26: Regulatory status
Regulatory status • SEBI approval – already obtained • BSE and NSE approvals – already obtained • Shareholders’ approval - already obtained • Secured and unsecured creditors approval – already obtained • Other regulatory approvals, like ROC, RD, ITA, under process • NCLT approval, under process • En
Slide 27: Advantages of the demerger
Advantages of the demerger • Separately and independently listing the Chemicals Business of GFL • Providing an opportunity for investors who wish to invest only in the Chemicals Business of GFL • Unlocking shareholder value for GFL shareholders, who presently suffer a “holding company discount” on t
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