Asahi Songwon Colors Ltd. · NSE:ASAHISONG
Asahi Songwon Colors — Q3 FY2022 Earnings Presentation
32 slides from Asahi Songwon Colors's earnings presentation, Feb 4, 2022
Slide 1: Stock exchange cover letter for Q3FY22 investor presentation
® Ref: ASCL/SEC/2021-22/58 February 04, 2022 yfo, The General Manager 2. To, The General Manager (Listing) Department of Corporate Services National Stock Exchange of India Ltd BSE Limited 5 th Floor, Exchange Plaza 1st Floor, New Trading Ring Plot No . C/ 1, G Block Rotunda Building, P. J. Tower Ba
Slide 2: Investor Presentation February 2022
Investor Presentation FEBRUARY 2022 ASAHI SONGWON COLORS LIMITED BSE CODE : ASAHISONG | 532853 NSE CODE : ASAHISONG
Slide 3: Contents
Contents 01 ABOUT US 04 FINANCIAL STATEMENT SUMMARY SLIDE 03-10 SLIDE 20-23 02 BUSINESS CANVAS 05 QUARTERLY HIGHLIGHTS SLIDE 11-16 SLIDE 24-29 03 STRATEGIC ADVANTAGES AND INVESTMENT MERITS SLIDE 17-19
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 Corporate Portrait Asahi Songwon Colors Limited is one of the leading manufacturers of blue 2 Manufacturing 3 decades of (Phthalocyanine) pigments facilities manufacturing expertise for ink, plastics, paint, textile and paper industry Exporting to Team strength of with globally benchmarked manufa
Slide 6: Our Journey
05 Our Journey 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 - - - - - - 0 2014 2016 - - - - - 0 2018 2019 - - - - ------10 Onwards • 1993 – Commenced operations of green • 2016
Slide 7: Strengthening Business Model
06 Strengthening Business Model 2005 -2015 0 2015 -2020 Added 2 new Added 3 new products products Continuous investments made and entered new product category towards making the business of AZO pigments sustainable 2015 0 2021 Served 19 Serving more than Reducing costs customers and Ramping up opera
Slide 8: Strong Global Footprint
07 Strong Global Footprint • List of countries we export to 1. USA 2. KOREA ••• ••• •• . . ········~·.•··•:•:-·:-· • •• •••• • •• •••••••••••• ... . .•:•:•:•.· ...··•··• ............... . . .......... . 3. JAPAN 4. GERMANY • ••••• .:Ill.•:•:-::.-:•:•:•:-:-::•:-:-.-.--.··•:· ..•:-:· .;:::•···· · .. .
Slide 9: Serving Leading Brands
08 Serving Leading Brands We have come a long way from our humble beginnings CLARIANT 18 years of collaboration • We have not lost a single to become a preferred and still going strong customer in our more than 3 decades of existence choice of supplier to the • More than 80%of business is large MNC'
Slide 10: Board of Directors
9 Board of Directors Mrs. Paru M. Jaykrishna Mr. R.K. Sukhdevsinghji Mr. Arvind Goenka Mr. Jayprakash M Patel CHAIRPERSON & MANAGING DIRECTOR DIRECTOR DIRECTOR DIRECTOR She holds a Bachelor’s degree in Law A graduate from St. Stephens College, A graduate from St. Xavier College, He holds a B. E. deg
Slide 11: Board of Directors (Contd.)
10 Board of Directors (Contd.) Dr. Pradeep Jha Mr. Gokul M Jaykrishna Mr. Munjal M Jaykrishna Mr. Arjun G Jaykrishna DIRECTOR JOINT MANAGING DIRECTOR & CEO DIRECTOR EXECUTIVE DIRECTOR He is a renowned mathematician A major in Finance with a minor in A Major in Finance and Marketing A Bachelor of Sci
Slide 12: Business Canvas
Business 13 – Phthalocyanine Pigments – Our Mainstay 14 – Infrastructure Facility – Padra Unit Canvas 15 – Azo Pigments – Growth Driver 16 – Azo Pigments – Capex 17 – Infrastructure Facility – Dahej Unit
Slide 13: Phthalocyanine Pigments - Our Mainstay
12 Phthalocyanine Pigments - Our Mainstay At Asahi, we use our PRODUCT CATEGORY CHARACTERISTICS experience and expertise to manufacture Phthalocyanine pigments e Backward integrated for Beta and Alpha Blue Long lead time creates entry barriers • One of largest manufacturer of CPC Blue crude globally
Slide 14: Manufacturing facility - Padra Site
13 Manufacturing facility- Padra Site •Setup in 2004 Products manufactured: Phthalocyanine Pigments Waste and effluent treatment facilities available • CPC Blue crude • Beta Blue Situated on 98,000 sq. mt. plot • Alpha Blue • No forced pollution shutdown in the last decade Available area for further
Slide 15: Azo Pigments - Growth Driver
14 Azo Pigments - Growth Driver At Asahi Songwon has WHY AZO PIGMENTS CHINA +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
Slide 16: Azo Pigments - Capex
15 Azo Pigments - Capex A JV well positioned to capture huge market • Company has entered into JV Agreement with Tennants Textile Colors opportunity. 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
Slide 17: Manufacturing facility - Dahej Site
16 Manufacturing facility - Dahej Site Setup in 2020 Products manufactured: Waste and effluent Azo Pigments treatment facilities available Situated on 60,000 sq. mt. plot Phase 2 brownfield capex to begin after reaching 40% capacity utilization levels Capacities expandable Available capacities upto
Slide 18: Strategic Advantages and Investment Merits
Strategic 19 – Strategic Advantage 20 – Investment Merits Advantages and Investment Merits
Slide 19: Strategic Advantages
18 Strategic Advantages 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
Slide 20: Investment Merits
19 Investment Merits New capex to put Strong Strong technical the company back Balance Sheet capabilities backed on growth path by technological tie up with industry leaders Consolidation the Sustainability Available land parcel global pigment focused at Saykha to provide industry to put the optiona
Slide 21: Financial Statement Summary
Financial 22 – Summary of P&L 23 – Summary of B/S Statement 24 – Summary of Cash Flow Statement Summary
Slide 22: Financial Highlights - Profit and Loss statement
21 Financial Highlights - Profit and Loss statement (₹ IN CRORE) PARTICULARS FY18 FY19 FY20 # FY21 # Revenue from Operations 293.83 293.62 283.64 283.08 Other Income 4.47 0.04 0.78 0.31 Total Income 298.30 293.66 284.42 283.39 Total Operating Expenses 255.59 254.09 249.24 233.57 EBITDA 38.25 39.53 3
Slide 23: Financial Highlights - Balance Sheet
22 Financial Highlights - Balance Sheet (₹ IN CRORE) PARTICULARS FY18 FY19 FY20 # FY21 # Total Equity (Networth) 181.64 193.59 215.66 274.31 Non Current Liabilities 39.02 38.49 25.59 24.31 Current Liabilities 98.83 76.98 36.56 90.85 Total Equity and Liability 319.49 309.06 277.81 389.47 Non Current
Slide 24: Financial Highlights - Cash Flow Statement
23 Financial Highlights -Cash Flow Statement (₹ IN CRORE) PARTICULARS FY18 FY19 FY20 # FY21 # Cash Flow from Operating Activities 5.91 27.06 56.97 8.05 Cash Flow from Investing Activities (43.83) (2.87) (15.76) (60.07) Cash Flow from Financing Activities 37.78 (24.20) (38.90) 49.98 Net increase/ (de
Slide 25: Quarterly Highlights
Quarterly 26 – Key Highlights 27 – Management Commentary Highlights 29 – Financial Statement Summary
Slide 26: Key Highlights
25 Key Highlights EXPORTS VS DOMESTIC REVENUE CONSOLIDATED STANDALONE BREAK-UP# (IN %) Revenues Revenues t100.0 7 Cr. t96 .06 cr. 57 43 5.48% 38.03% 2.25% 32.50% - 0 0 - EBITDA EBITDA t 7 .9 2 Cr. t9.0 5 Cr. Exports Domestic o -23.48% e -39.91% e -23.82% e -31.34% PHTHALOCYANINE VS AZO PIGMENT REVEN
Slide 27: Management Commentary
26 Management Commentary “Our performance in Q3FY22 has been Additionally, industry-wide increases in affected by the ongoing trend of increased logistics costs have also impacted our input costs. With the prices of coal, urea performance. and phthalic anhydride increasing However, I am pleased to r
Slide 28: Management Commentary
27 Management Commentary “We are happy to report that, in Q3FY22, that our joint venture with TTC has come we have witnessed great customer into fruition and we hope that this traction and there has been a very healthy revenue stream would further bolster our response to our initial market feeding.
Slide 29: Profit and Loss statement (Standalone)
28 Financial Highlights - Profit and Loss statement (Standalone) (₹ IN CRORE) PARTICULARS Q3FY22 Q2FY22 Q3FY21 9MFY22 9MFY21 Revenue from Operations 96.06 93.95 72.5 286.89 192.6 Revenue from Operations Other Income 0.35 0.34 0.96 0.89 1.44 9MFY22 Revenue from Operations at INR 96.06 cr. as against
Slide 30: Profit and Loss statement (Consolidated)
29 Financial Highlights - Profit and Loss statement (Consolidated) (₹ IN CRORE) PARTICULARS Q3FY22 Q2FY22 Q3FY21 9MFY22 9MFY21 Revenue from Operations 100.07 94.87 72.5 291.90 192.60 Revenue from Operations Other Income 0.23 0.13 0.96 0.39 1.44 (MFY22 Revenue from Operations at INR 291.90 cr. as aga
Slide 31: Disclaimer
30 Disclaimer This investor presentation has been prepared by Asahi Songwon Colors Limited and does 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 supplied shoul
Slide 32: Thank You
Thank You Contact Us “Asahi House” Mr. Saji Joseph 13, Aar yans Corporate Park , cs@asahisongwon.com Near Shilaj Railway Crossing, Thaltej - Shilaj road, Thaltej, Ahmedabad - 380059. Mr. Diwakar Pingle Tel : 079 6832 5000 dpingle@christensenir.com Mr. Abhishek Mehra abhishek@theinvestmentlab.in 9558
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