Rhi Magnesita India Limited · NSE:RHIM
Rhi Magnesita India — Investor Presentation (June 2023)
32 slides from Rhi Magnesita India's investor presentation, Jun 12, 2023
Slide 1: Intimation of Schedule of Analyst/Institutional Investor Meeting
RHI Magnesita India Limited (Formerly Orient Refractories Ltd.) 301, 316-17, Tower B, EMAAR Digital Greens Golf Course Extension Road, Sector 61, Gurugram, Haryana-122011, INDIA T +91 124 4062930 E corporate.india@rhimagnesita.com www.rhimagnesitaindia.com 12 June 2023 Department of Corporate Servic
Slide 2: Investor Presentation
Investor Presentation RHI Magnesita India Limited June 2023
Slide 3: Agenda
Agenda 1 Introduction 2 FY 2023 Update 3 Financial Review 4 M&A 5 Awards & Initiatives RHI Magnesita India PUBLIC 2
Slide 4: Introduction
Introduction
Slide 5: Refractories are essential for our modern world
Refractories are essential for our modern world Concrete Copper Steel Glass Aluminium 1,500°C 1,350°C 1,760°C 1,650°C 1,250°C 1 tonne of STEEL 1 tonne of CEMENT 1 tonne of GLASS 1 tonne of ALUMINIUM 1 tonne of COPPER demands ~10-15 Kg demands ~1 Kg demands ~4 Kg demands ~6 Kg demands ~3 Kg of refrac
Slide 6: Refractory applications
Refractory applications Customer industries Main application Lifetime and costs Refractory characteristics Part of customers’ operational Steel 20 minutes to 2 months expenditure Basic oxygen furnace, 70% of global market Electric arc furnace, ladles, flow control c.3% of customers’ costs Systems an
Slide 7: Global leader in a highly fragmented market
Global leader in a highly fragmented market RHI Magnesita Group strategy - growth through consolidation Global market share (RHI Magnesita Group) 10.5% Total market size: RHI Magnesita Group is the leading global refractory supplier Others with a 15% global market share and 30% ex-China c.€20bn The
Slide 8: Raw material and refractory process overview
Raw material and refractory process overview RHI Magnesita India PUBLIC 7
Slide 9: Solutions contracts
Solutions contracts RHI Magnesita can offer a range of heat management solutions to its customers Client benefit ✓ Reduced downtime ✓ Lower refractory consumption ✓ Lower energy and other raw materials consumption ✓ Higher productivity and cost savings RHI Magnesita benefit ✓ Higher client retention
Slide 10: History of RHI Magnesita India
History of RHI Magnesita India The leader of refractories in India, West Asia and Africa Our Company (formerly known as Orient Refractories Limited) amalgamated with our two subsidiaries at the time, RHI India Private Limited ("RHI India") and RHI Clasil Private Limited ("RHI Classil") through a sch
Slide 11: Industry outlook
Industry outlook India refractory demand forecast to grow with 6% CAGR India has emerged as the fastest-growing major economy in India real GDP growth forecast 2022-24 the world and is expected to be one of the top three economic powers in the world over the next five years 8.7% 7.0% India growth is
Slide 12: Sustainability leadership
Sustainability leadership RHI Magnesita Group is seeking to transform sustainable business practices in the refractory industry Refractories are a ‘hard to abate’ industry with CO2 Untreated recycled Autoclave treated emissions arising from fossil fuel use and processing refractory recycled refracto
Slide 13: Backed by the RHI Magnesita Group
Backed by the RHI Magnesita Group Market leadership position with 56% ownership by RHI Magnesita Group 30% market share in India brings significant benefits: ✓ ‘Local for local manufacturing strategy - ‘Make in India’ Group is actively seeking to grow in India through this listed entity, making inve
Slide 14: FY 2023 update
FY 2023 update
Slide 15: Profit and Loss Summary
Profit and Loss Summary FY 23 Vs FY 22 Impairment loss on account of Goodwill In accordance with Indian accounting practices, the purchase price consideration paid to acquire Indian Refractory Business of Dalmia Group is fair valued using the share price at acquisition date (5th Jan 2023) i.e., ₹ 87
Slide 16: Strong Revenue Growth on consolidated levels
Strong Revenue Growth on consolidated levels Revenue supported by significant volume increase 329 Market share gain in steel and industrial 214 with the acquisition of DOCL and Hi-tech 196 27,266 Chemicals (JSP) 19,951 13,704 ‒ Volume increase @ 54% including Volume (kt) standalone @ 34% Revenue (₹
Slide 17: Consolidated Financial highlights
Consolidated Financial highlights Revenue and EBITDA growth with slight decline in margins Total Revenue Adjusted EBITDA Adjusted EBITDA margin Cash returned to shareholders ₹27,263 ₹4,388m 16.1% ₹402m 37% 11.5% 363bps Free cash flow Capex Dividend per share Earnings per share* ₹2,602m ₹423m ₹2.5ps
Slide 18: Financial Highlights on consolidated levels
Financial Highlights on consolidated levels Capacity (kt) Revenue (₹ Mn) EBITDA Margin (%)* 525 27,266 19.6% 16.1% 16.0% 15.9% 19,689 145 115 122 13,727 13,574 * Adjusted for one timers 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 EPS (per share) Market capitalization (₹ bn) Dividend
Slide 19: 2023: A year of strategic progress
2023: A year of strategic progress Sustainability at core Balanced Portfolio and go-to-market 17.8 19.3 17.1 16.4 ✓ Utilization of recycled refractory ✓ Recent acquisitions create balanced 16.8 15.5 15.9 15.0 material significantly reduces 20% portfolio and a strong platform for emissions growth in
Slide 20: Financial Review
Financial Review
Slide 21: 2023 Revenue Bridge
2023 Revenue Bridge Strong revenue growth through increased volumes offset by slightly softer pricing ₹ mn 321 22 27,263 6,762 2,357 24,562 -1,674 -477 19,951 Steep rise in FY 22’s freight and raw material cost led to unprecedented rise in selling price 13,704 2021 2022 Volume Price One time RHIM DO
Slide 22: 2023 EBITDA Bridge
2023 EBITDA Bridge Higher volumes offset by softening of prices and one-time costs impacted EBITDA ₹ mn 2,338 Integration : ₹ 137m Stamp duty : ₹ 302m Write offs : ₹ 118 m Others : ₹ 83m 239 55 25 4,388 3,935 -1,726 4,069 -477 3,748 -640 2,209 16.1% 19.7% 16.6% 16.1% 13.7% 2021 2022 Volume Price One
Slide 23: 2023 Debt including short term
2023 Debt including short term Comfortable debt position following successful QIP paying majority acquisition debt ₹ mn 1,782 14,927 2,254 -700 Use of QIP Proceeds for repayment of 11,000 loan -7,500 5,043 -2,383 601 590 2021 2022 Acquisition ECB Working Prepayment 2023 Repaid Internal Apr-23 Capita
Slide 24: 2023 Cashflow
2023 Cashflow Comfortable cash position post acquisitions ₹ mn Loan for acquisitions 13,244 Hi-tech : ₹ 6,150 m Acquisition of DOCL : ₹ 4,850 m Hi-tech : ₹ 7,341 m ECB : ₹ 2255 m DOCL : ₹ 390 m 3,748 -421 -11,243 3,261 -713 -325 -984 -423 -402 781 Cash 2022 EBITDA WC Tax Capex Dividend Debt M&A Prep
Slide 25: Working Capital
Working Capital Improved cash conversion cycle Inventories (₹ m) Inventory days 110 124 109 121 9,562 Working capital (₹ m) 6,077 7,049 5,897 105 Cash conversion cycle FY22 H1 FY22 Dec-22 Mar-23 96 87 Receivables (₹ m)1 Receivables day 76 94 108 89 92 10,251 11,095 5,815 6,463 6,498 FY22 H1 FY22 Dec
Slide 26: M&A
ud + wn f = a oe
Slide 27: Acquisition of Dalmia OCL
Acquisition of Dalmia OCL Overview Production & mining footprint Strategic focus for acquisition Operations footprint DOCL production DOCL mine RHI Magnesita ▪ Transaction History ▪ Well established operations with production ‒ Executed Business transfer agreement and share footprint in west and sou
Slide 28: Acquisition of Hi-tech Chemicals
Acquisition of Hi-tech Chemicals Overview Production & mining footprint Strategic focus Operations Production site ▪ Transaction History footprint ▪ Increase RHIM´s flow-control production ‒ Executed Business transfer agreement in capacities in India with market standard low-pressure technologies Oc
Slide 29: Awards and Initiatives
Awards and Initiatives
Slide 30: Awards & Initiatives
Awards & Initiatives The India West Asia Africa India’s Best Organisation for Safety Performer Award for 2022 Regional President ranks top as Women by Vizag recognized as Best Safety Performer best CEOs in India The Economic Times (in Cat-3) and won the Bronze award out of total 40 industries Record
Slide 31: CSR Initiatives
CSR Initiatives Education Amenities at Health Amenities Funded for a hostel Venkatapuram Government School Supporting VRD Trust building at LV Prasad Hospital Eye Institute Damaka Village Road (NH 16 – Damaka Village) Spreading awareness through campaigns Before After RHI Magnesita India PUBLIC 30
Slide 32: Disclaimer
Disclaimer Financial information contained herein, as well as other operational information, were not audited by independent auditors and may include forward-looking statements and reflects the current views and perspectives of the management on the evolution of macro-economic environment, condition
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