Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q2 & H1 FY23 Earnings Presentation
34 slides from Neogen Chemicals's earnings presentation, Nov 5, 2022
Slide 1: Exchange filing cover letter for earnings presentation
'}( November 5, 2022 ··~· •~aNEOGEN . ,......_,.. J<.. CHEMICALS LTD. BSE Limited National Stock Exchange of India Limited Department of Corporate Services Listing Department, Floor 25, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Kala Ghoda, Fort Bandra Kurla Complex, Bandra (East), Mum
Slide 2: Exploring New Horizons – Q2 & H1 FY23 Earnings Presentation
Expanding Capabilities Exploring New Horizons Q2 & H1 FY23 Earnings Presentation November 2022
Slide 3: Safe Harbour
Safe Harbour Certain statements in this document may be forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ m
Slide 4: Table of Contents
Table of Contents Introduction to Financial Industry Overview – Neogen Chemicals Performance Lithium-Ion Batteries 4 15 26 Way Forward & CSR Initiatives Contact Us 29 32 3
Slide 5: Introduction to Neogen Chemicals
Introduction to Neogen Chemicals 4
Slide 6: Neogen Chemicals – At a Glance
Neogen Chemicals – At a Glance ISO 9001:2015, 242 12% 29 ISO 14001:2015 & 439.3 34% 41% ISO 45001:2018 Products developed Of workforce in Exporting Manufacturing units certified on Net worth - FY22 5-years Revenue 5-years PAT CAGR by in-house R&D R&D team countries Quality & SHE management systems (
Slide 7: Evolution of Neogen Chemicals
Evolution of Neogen Chemicals 1970’s to 1991 Pre-Neogen 1991 to 2016 Pre-expansion 2016 to 2022 Present ▪ Mr. HT Kanani graduated as a Chemical Engineer and ▪ ‘Neogen Chemicals’ commenced business operations in ▪ Acquired 12 acres of land in Dahej for Greenfield expansion started his association wit
Slide 8: Key Milestones
Key Milestones Leading manufacturer of Bromine and Lithium- based specialty chemicals since 1989 Phase I & II expansion completed: Increased Organic Chemicals reactor capacity from 154,000 litres to 407,000 litres through brownfield expansions across facilities Raised Rs. 225 crore through preferenc
Slide 9: Business Overview and End User Industries
Business Overview Select Clientele Bromine Compounds Organic compounds containing chlorine, fluorine, iodine-based Pharmaceuticals combinations thereof and others including grignard reagents Agrochemicals End User Industries Organic Advanced Intermediates Chemicals Combining bromination with other c
Slide 10: Compelling value-proposition
Compelling value-proposition Innovative Product Portfolio Excellent R&D Enduring Customer Capabilities Relationships State-of-the-art Established Manufacturing Relationship with Facilities Suppliers Specialised Experienced Business Board of Directors Model with High 9 Entry Barriers
Slide 11: Experienced Leadership Team
Experienced Leadership Team Mr. Anurag Surana, Non-Executive Director ▪ Holds a bachelor’s degree in commerce with Honours from the University of Delhi Mr. Haridas Kanani, ▪ Experience of more than 20 years in Contract Manufacturing business Mr. Harin Kanani, B.TECH (CHEM) M.I.I.Ch.E. ▪ A well known
Slide 12: Robust Manufacturing Expertise
Robust Manufacturing Expertise Strong Manufacturing Infrastructure Land Factory Land Area Capacity Certifications of Manufacturing Facilities Utilisation Inorganic Organic Chemicals Chemicals (Reactor capacity) (Tonnage) Mahape (Since 1991) 1 acre 100% 69,000 Liters 1,200 MT ISO 9001:2015 from Burea
Slide 13: Developed strong R&D capabilities
Developed strong R&D capabilities Developed 60-member dedicated R&D team, including 8 senior personnel with doctorates in chemistry (Ph. D.) from Established two in-house reputed institutions and CMD and MD are actively R&D units, one each in with 15+ years of involved and spend Mahape and Vadodara,
Slide 14: Key Export Geographies
Key Export Geographies Europe Japan China USA Korea Middle East Exporting to 29 countries, with key export geographies in United States, Europe, Japan and Middle East Export sales of 44% in FY22 13
Slide 15: Competitive Advantages
Competitive Advantages Large and diverse array of products Experienced promoters Strong Manufacturing with domain knowledge Capabilities Established and stable Diversified and Stable relationship with suppliers Customer Base Specialised Business Model with Continuous Investment in high entry barrier
Slide 16: Financial Performance
15 xX sa r iNT Vay x NEOGEN CHEMICALS LTD Financial Performance
Slide 17: Key Performance Highlights – Q2 & H1 FY23
Key Performance Highlights – Q2 & H1 FY23 Q2 FY23 H1 FY23 Q2 FY23 Revenue break-up Revenues Rs. 148.1 crore Rs. 296.0 crore *Exports, 50% 31% 50% EBITDA Rs. 24.3 crore Rs. 48.9 crore Domestic, 18% 35% 50% *Including deemed exports Profit Before Tax Rs. 14.0 crore Rs. 29.6 crore 20% Inorgan
Slide 18: Financial Summary – H1 FY23
Financial Summary – H1 FY23 Rs. crore REVENUE • Demonstrated strong topline performance driven by continued better demand momentum as well as incremental gains from augmented capacities as compared to the same period previous year H1 FY23 296.0 • Based on the overall demand environment, the Company
Slide 19: Revenue break-up – Q2 & H1 FY23
Revenue break-up – Q2 & H1 FY23 Q2 FY22 Rs. 91 crore Q2 FY23 Rs. 99 crore 9% Organic Chemicals H1 FY22 Rs. 159 crore XX% H1 FY23 Rs. 189 crore 19% Q2 FY22 Rs. 22 crore Q2 FY23 Rs. 49 crore 122% Inorganic Chemicals H1 FY22 Rs. 39 crore H1 FY23 Rs. 107 crore 176% 18
Slide 20: Seasonal Variance Factors
Seasonal Variance Factors ▪ Neogen’s business has some seasonal drivers, due to which the company tends to deliver stronger financial performance in the second half of the financial year (October to March). Seasonal variance is driven by strong demand from Europe as orders tend to scale up in Octobe
Slide 21: Neogen's planned initiatives in the Lithium Battery sector
Neogen’s planned initiatives in the Lithium Battery sector ▪ Development initiatives under process for: – Electrolyte Formulations – Electrolyte Lithium Salts – Specialized Cathode Materials – CSM and advanced intermediates opportunities ▪ Portfolio of battery application products at quality/efficie
Slide 22: Key developments
Key developments ▪ As per Board’s approval, an estimated capital expenditure of upto Rs. 150 crore has been planned – this is being deployed in the current financial year 2023 at Dahej SEZ Plant for: – Expanding manufacturing capacity of specialty organic chemicals by 60,000 litres – to support new
Slide 23: Financial Table – Profit & Loss Statement (Standalone)
Financial Table – Profit & Loss Statement (Standalone) Particulars (Rs. In crore) Q2 FY23 Q2 FY22 Growth (%) H1 FY23 H1 FY22 Growth (%) Revenue 148.1 113.2 31% 296.0 197.8 50% Expenditure 123.9 92.6 34% 247.1 161.7 53% EBITDA 24.3 20.5 18% 48.9 36.2 35% Margins 16.4% 18.1% -178 bps 16.5% 18.3% -176
Slide 24: Balance Sheet Snapshot (Standalone)
Balance Sheet Snapshot (Standalone) Particulars (Rs. In crore) As on September 2022 As on March 2022 Assets Non-Current Assets 325.2 306.5 Current Assets 577.6 493.1 Total Assets 902.8 799.5 Liabilities Shareholders’ Funds 453.4 439.3 Non-Current Liabilities 141.5 141.9 Current Liabilities 308.0 218
Slide 25: Management Commentary
Management Commentary Commenting on the Q2 & H1 FY23 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “We have reported superior performance during the first half of fiscal year 2023 reflected by 50% growth in revenues, 35% improvement in EBITDA and 13% increa
Slide 26: Historical Financial Trends
Historical Financial Trends Net Revenue from Operations** EBITDA (INR crore) Margin (%) (INR crore) 19.0% 19.1% 487 336 18.1% 18.2% 306 17.8% 239 17.8% 163 111 20 29 43 58 64 87 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 ** Revenue is Net of Excise PAT (INR crore) Margin (%) Networt
Slide 27: Industry Overview: Lithium Ion Batteries
Industry Overview: Lithium Ion Batteries 26
Slide 28: Strong Opportunities in Lithium Battery sector
Strong Opportunities in Lithium Battery sector Government focus on self-reliance in battery manufacturing Demand Estimates for the Indian Market has opened up new prospects ▪ After inviting global bids for giga-scale Advanced Chemistry Cell (ACC) production units, the GoI selected four bidders from
Slide 29: Key Drivers of the Lithium-Ion Battery Market
Key Drivers of the Lithium-Ion Battery Market EVs, Renewable Energy Storage, Recycling lithium-ion batteries could Changing industry dynamics indicate Hydrogen to fuel lithium-ion battery aid in increasing domestic production lithium-ion battery market growth demand Automation of recycling operation
Slide 30: Way Forward & CSR Initiatives
Way Forward & CSR Initiatives
Slide 31: Way Forward
Way Forward Increasing Custom Synthesis & Foray into sunrise sector of Lithium-Ion Contract Manufacturing portfolio Batteries Expanding production capacities Focus on operational efficiency and Focus on advanced speciality functional excellence intermediates 30
Slide 32: CSR Initiatives
CSR Initiatives Focus areas in CSR Rural development Education Healthcare, sanitation and Environment nutrition sustainability Conservation and management of natural resources 31
Slide 33: Contact Us
Contact Us About Neogen Chemicals Limited Incorporated in 1989, Neogen Chemicals Ltd. (NSE Code: NEOGEN; BSE Code: 542665) is India’s one of the leading manufacturers of Bromine-based and Lithium-based specialty chemicals. Its specialty chemicals product offerings comprises of Organic as well as Ino
Slide 34: Thank You
Thank You
Neogen Chemicals — Q2 & H1 FY23 Earnings Presentation on 6ix