Slide 1: Prism Cement Limited Investor Presentation May'16
AMONGST INDIA’S LEADING INTEGRATED BUILDING MATERIALS COMPANY Prism Cement Limited Investor Presentation May’16 1 www.prismcement.com
Slide 2: Our Brands
Our Brands 2 www.prismcement.com
Slide 3: Integrated Building Materials Company
Integrated Building Materials Company RMC Readymix H&R Johnson (India) Prism Cement Ready-mixed concrete Tiles (Ceramic, Vitrified, PPC Industrial) Champion Aggregates Sanitaryware & Faucets Champion Plus Manufactured Sand (Bath Fittings) Hi-tech / Duratech Modular Kitchens OPC
Slide 4: Prism Cement - Efforts towards re-creating history
Prism Cement- Efforts towards re-creating history EBITDA – `1229/Ton & ROCE – 63% in FY 10 Cement Years of Benchmark Sales CAGR – 17% (‘03-’12). Conso EBITDA of 14.6% in FY10 Profitable TBK Growth Sales CAGR – 39% (‘03-’12). EBITDA of 6.1% in FY11 RMC Blending Silo reconstruction, low capacity utilz
Slide 5: Business Environment – expect better demand environment
Business Environment – expect better demand environment Infrastructure activities likely to pick up – especially road construction (concretization), railways incl dedicated freight corridors, ports and power Focus on Housing for all Program. Rural housing likely to see demand growth subject to n
Slide 6: www.prismcement.com
www.prismcement.com
Slide 7: Cement Overview
Cement Overview 2 Modern Plants in Satna, MP(Central India) with effective capacity of 7mn ton Current Superior Capital Employed < ~US$ 38mn/ton No significant capacities planned in Cluster. Consolidation happening in the cluster Wide network of ~3790 dealers and ~ 155 stocking points Laun
Slide 8: Cement – Financial & Operational Highlights
Cement – Financial & Operational Highlights Particulars Unit FY16 FY15 FY10 Cement & clinker sales volume Mn Ton 5.29 5.60 2.86 Net Sales Rs in bn 20.1 21.9 10.2 Net realization incl clinker Rs/Ton 3800 3907 3562 Total cost Rs in bn 17.7 19.7 6.7 Total cost Rs/Ton 3356 3518 2347 EBITDA incl operatin
Slide 9: Cement – Realization and Cost Trend
Cement – Realization and Cost Trend 4500 1400 1227 3911 1200 3907 4000 3784 3800 1000 Realn – Cost `/Ton 3562 ` EBITDA/Ton 3500 832 3272 3130 3611 3632 800 3518 3356 3055 600 3000 2859 501 477 249 400 2500 2347 410 2664 339 200 2036 173 2000 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Realisation Tota
Slide 10: Cement EBITDA/Ton
Cement EBITDA/Ton New Blending Silo Despite reduced realn Pet Coke Q4FY16 EBITDA / ton at `594 1,400 1,229 1,200 1,000 800 741 In ` 600 501 477 410 400 339 249 173 200 0 … 2009 2010 2011 2012 2013 2014 2015 2016 Subdued Markets ROCE: 63% Blending Silo Re-construction Low Capacity Utili
Slide 11: www.prismcement.com
www.prismcement.com
Slide 12: RMC Overview
RMC Overview Ready mixed concrete is concrete in ready to use form. It is one of the most versatile building material used in construction. Started in mid-90s : ~10% of total cement used for concrete in India is through RMC route (Metros / Tier1 ~35% & Tier2 ~20%) v/s 50-70% in developed economi
Slide 13: RMC Readymix (India)
RMC Readymix (India) 2nd largest player : pan India presence with 81 Plants in 38 Cities/towns Backward integration: 7 plants of aggregates & manufactured sand NABL Accredited Labs ’03-’12 Sales CAGR of 39%. After nearly flattish growth for 4 years, double digit growth expected in the medium
Slide 14: RMC EBITDA – Performance
RMC EBITDA – Performance Q4FY16 EBITDA @ 5.7% 0.60 0.56 0.56 7.0% 5.9% 0.50 0.49 6.0% 0.50 4.9% 0.40 6.1% 0.39 5.0% 0.40 EBITDA ` bn EBITDA % 0.30 4.0% 0.30 2.4% 4.0% 3.0% 0.20 3.4% 2.5% 2.0% 0.10 1.0% 0.00 0.0% 2010 2011 2012 2013 2014 2015 2016 Subdued Economy Extra Cautious on Debtors Managem
Slide 15: RMC Specials Value-added Concrete
EnviroprotectcreteTM ® Thermocrete is temperature It is a High Performance and controlled concrete used for Sustainable concrete. Used in mass mitigating termal tensile cracks foundations, underground structures etc RMC Specials Value-added Concrete DyecreteTM comprises an eye catching array of conc
Slide 16: H&R Johnson – Redefining Lifestyles, Worldwide
Oo JOHNSON REDEFINING LIFESTYLES, WORLDWIDE.
Slide 17: TBK Overview
TBK Overview Set up in 1958, offering wide range of tiles, sanitary ware, bath fittings, modular kitchens and construction chemical 10 Manufacturing plants(Own & JVs) with capacity of ~58mn m2 pa. Asset light business model through six manufacturing JVs contributing 70% of capacity with 4 JVs in
Slide 18: On recovery path…
On recovery path… Enjoyed leadership position with ’03 -’12 (Sales CAGR 17%) FY10 consolidated EBITDA margins of 14.6% FY11-14, Challenging years as 40% of total capacity in AP and Karnataka suffered on account of power and fuel availability Addressed Power and fuel issues in South by Inst
Slide 19: TBK EBITDA - Performance
TBK EBITDA - Performance 2.00 16.0% 1.76 1.80 14.0% 1.56 1.60 12.0% 1.40 1.18 EBITDA ` bn 1.20 10.0% EBITDA % 1.00 14.6% 0.89 8.0% 10.3% 0.78 0.80 0.67 6.0% 0.60 6.7% 0.45 4.0% 0.40 4.7% 0.20 3.3% 2.0% 2.2% 2.9% 0.00 0.0% 2010 2011 2012 2013 2014 2015 2016 19 www.prismcement.com
Slide 20: Strategic Investment – Raheja QBE General Insurance
Strategic Investment – Raheja QBE General Insurance JV with QBE Group of Australia Focus on speciality products like liability insurance, marine liability and trade credit Strategic sale of 23% stake to existing partner for AUS$ 21.6mn Prism’s investment : 51% stake at book value of `1.05bn
Slide 21: Management Profile
Management Profile Mr. Vijay Aggarwal, Managing Director B. Tech (Elec.) from IIT, Delhi and PGDM from IIM, Ahmedabad Tenure in Company: 22 years Past experience includes SBI Capital Markets On the Board of various companies including Exide Industries, Exide Life Insurance Co, Aptech, Asiane
Slide 22: Management Profile
Management Profile Mr. Joydeep Mukherjee, Executive Director & CEO - HRJ PGDM in Marketing Management, IGNOU, Kolkata and EMIB - International Business and Marketing from IIFT, New Delhi. Tenure in Company: 6 months Past experience includes ACC and Hindalco Mr. Venugopal M Panicker, Executive
Slide 23: Management Profile
Management Profile Mrs. Aneeta Kulkarni – Company Secretary Company Secretary, LLB, PGDAM (NMIMS) and FIII (Fellow of Insurance Institute of India) Tenure in Company: 21 years Past experience includes New India Assurance, Thirumalai Chemicals and Vijayshree Chemicals Mr. Pramod Akhramka , CFO
Slide 24: Focus on de-leveraging
Focus on de-leveraging Borrowings as on 31st March’16 Net consolidated `20.7bn, down by ~`0.9bn Net standalone `17.5bn, down by ~`0.7bn Average cost of Standalone debt: 10.75% 24 www.prismcement.com
Slide 25: Shareholding Pattern as on 31st Mar'16
Shareholding Pattern as on 31st Mar’16 Non Inst, Domestic 9.1% Inst, 9.6% Foreign Inst, 6.4% Promoters, 74.9% Public category holding over 1% of total shares Shareholder % HDFC Trustee Company Ltd - HDFC Equity Fund 3.5 Morgan Stanley Asia (Singapore) PTE 2.1 National Westminster Bank Plc as Trustee
Slide 26: Thank You
THANK YOU For further information, please contact: Munzal Shah investorrelations@prismcement.com +91 22 6675 4142-46 Disclaimer Cautionary statement regarding forward – looking statements This presentation may contain certain forward – looking statements relating to the future business, development