Prism Johnson Limited · NSE:PRSMJOHNSN
Prism Johnson — Investor Presentation (May 2018)
30 slides from Prism Johnson's investor presentation, May 29, 2018
Slide 1: Cover letter to stock exchanges
PRISM JOHNSON LIMITED (FORMERLY PRISM CEMENT LIMITED) Ref : ASK/UD/848/2018/IP May 29, 2018 The National Stock Exchange (India) | BSE Limited, Ltd., Exchange Plaza, Bandra-Kurla_ | Corporate Relationship Department, Complex, Bandra (East), P. J. Towers, Dalal Street, Fort, Mumbai - 400 051. Mumbai —
Slide 2: Investor Presentation May'18
AMONGST INDIA’S LEADING INTEGRATED BUILDING MATERIALS COMPANY PRISM JOHNSON LIMITED (Formerly Prism Cement Limited) Investor Presentation May’18 1 www.prismjohnson.in
Slide 3: Our Brands
Our Brands 2 www.prismjohnson.in
Slide 4: Integrated Building Materials Company
Integrated Building Materials Company Prism Cement RMC Readymix H & R Johnson (India) ´ PPC (Portland Pozzalana Cement) ´ Ready-mixed concrete ´ Tiles (Ceramic, Vitrified, Industrial) ´ Champion ´ Aggregates ´ Sanitaryware & Faucets ´ Champion Plus ´ Manufactured Sand (Bath Fittings) ´ Duratech ´ Co
Slide 5: Year ended March 2018 – Executive Summary
Year ended March 2018 – Executive Summary Particulars Cement Division HRJ Disivion RMC Division Total Consolidated Data FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 Total Capacity 7mt 7mt 68msm 61msm 9.7cum 8.7cum NA NA Capacity Utilization (%) 81 77 58 64 35 35 NA NA Revenues (Rsmn) 23723 20090 16845 17
Slide 6: Quarter ended March 2018 – Executive Summary
Quarter ended March 2018 – Executive Summary ´ ~8% volume growth as compared to Q4FY17 Cement ´ EBITDA / ton – `819. Higher net realizations Division ´ Q4FY18 annualised RoCE at ~27% Q4FY18 revenue growth ´ 39% 36% 39% at ~20%. Second consecutive quarter of double digit growth RMC ´ Q4FY18 EBITDA ma
Slide 7: Prism Johnson - Efforts towards re-creating history
PRISM JOHNSON - 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 HRJ Growth Sales CAGR – 39% (‘03-’12). EBITDA of 6.1% in FY11 RMC Blending Silo reconstruction, low capacity uti
Slide 8: Business Environment – expect better demand environment
Business Environment – expect better demand environment ´ Government’s focus on Infrastructure continues – road construction (good ordering), railways including dedicated freight corridors, metros, ports, airports and power transmission ´ Focus on Housing for all Program. Ramp up in Pradhan Mantri A
Slide 9: www.prismjohnson.in
www.prismjohnson.in
Slide 10: Cement Overview
Cement Overview INDIA ´ 2 Modern Plants in Satna, MP(Central India) with effective capacity of 7mn ton Current ´ Superior Capital Employed < ~US$ 34/ton ´ Consolidation happened in the cluster. Not major capacities planned in the cluster ´ Wide network of ~4000 dealers and ~180 stocking points ´ Bet
Slide 11: Cement – Financial & Operational Highlights
Cement – Financial & Operational Highlights Particulars Unit FY18 FY17 FY10 Cement & Clinker Sales Volume * Mn Ton 5.64 5.41 2.86 Net Sales Rs in bn 23.7 20.0 10.2 Net realization incl clinker Rs/Ton 4182 3686 3562 Total cost Rs in bn 20.2 17.0 6.7 Total cost Rs/Ton 3587 3148 2347 EBITDA incl operat
Slide 12: Cement – Realization and Cost Trend
Cement – Realization and Cost Trend Realization - Cost Trend 4500 1400 1227 4182 3911 3907 1200 4000 3784 3800 3686 3587 1000 EBITDA/Ton (`) Relz – Cost (`/ton) 3500 832 3272 3632 800 3130 3611 3518 3356 3148 3562 3000 3055 600 501 2859 619 567 400 339 477 2500 2664 410 249 2036 173 200 2347 2000 0
Slide 13: Cement EBITDA/Ton
Cement EBITDA/Ton ´ New Blending Silo ´ Q4 FY18 ROCE: 27% Annualized ´ Pet Coke ´ Q4FY18 EBITDA / ton at `819 EBITDA/Ton Trend 1,500 1,229 1,000 741 619 in ` 501 567 410 477 500 339 249 173 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 … EBITDA/Ton Trend ROCE: 63% ´ Subdued Markets ´ Blending
Slide 14: Complete Concrete Solutions
Complete Concrete Solutions | www.prismjohnson.in |
Slide 15: 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. Benefits such as consistent quality, saving of site space, optimize labour, safety, reduced pollution amongst others ´ Started in mid-90s : ~10-12% of total c
Slide 16: RMC (India) Division
RMC (India) Division ´ 2nd largest player : pan India presence with 92 Operational Plants in 44 Cities/towns ´ Backward integration: 5 plants of aggregates & manufactured sand ´ NABL Accredited Labs ´ Growth has picked up in H2FY18 after ~5 years of flattish growth. FY03-12 sales CAGR of 39% ´ Deman
Slide 17: RMC EBITDA – Performance
RMC EBITDA – Performance ´ Q4FY18 Revenue growth – 20% ´ Q4FY18 EBITDA margin – 4.3% ´ Q4FY18 annualized ROCE - ~24% 0.60 0.56 0.56 7.0% 0.52 6.1% 0.49 6.0% 0.50 5.9% 0.40 4.9% 0.39 0.38 5.0% 0.40 EBITDA ` bn EBITDA % 0.30 4.1% 0.28 4.0% 0.30 3.4% 3.1% 3.0% 0.20 2.4% 2.5% 2.0% 2.0% 0.10 1.0% 0.00 0.
Slide 18: Specialty concrete products
Dyecrete® comprises an eye catching array Easycrete® is a special concrete Elitecrete™ is a light weight concrete of concrete that are suitable for a wide characterized by high resistance to with densities varying from 800 to 1800 variety of architectural and decorative segregation and which can be
Slide 19: Johnson – Not just tiles, Lifestyles
JOHNSON Not just tiles, Lifestyles. www.prismcement.com
Slide 20: H & R Johnson (India) – (HRJ) Overview
H & R Johnson (India) – (HRJ) Overview ´ Completed 60 years of its presence ´ Set up in 1958, offering wide range of tiles, sanitary ware, bath fittings and construction chemical ´ Expanded overall capacity to ~68mn m2 pa from 61 m2 pa. 13 Manufacturing plants (Own & JVs). Asset light business model
Slide 21: Turnaround at operating level
Turnaround at operating level….. ´ 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
Slide 22: HRJ Consolidated EBITDA - Performance
HRJ Consolidated EBITDA - Performance ´ Q4FY18 EBITDA margin – 8.9% ´ Q4FY18 Absolute EBITDA – `0.4bn ´ Q4FY18 annualized ROCE - ~12% 2.00 16.0% 1.76 1.80 14.0% 1.56 1.60 12.0% 1.40 14.6% 1.18 1.20 10.0% EBITDA % EBITDA ` bn 1.00 10.3% 0.89 8.0% 0.78 0.77 0.80 6.0% 0.63 0.60 0.45 6.7% 3.7% 4.0% 0.40
Slide 23: To summarize……
To summarize…… ´ Improved financial performance during FY18 in a challenging environment: ´ Cement Division:- Best ever volumes and better operating performance despite sand mining ban / high commodity prices ´ HRJ Division:- Volume growth resumed. Turnaround at operating level ´ RMC Division:- Doub
Slide 24: Awards and Accolades
Awards and Accolades Allahabad Packing Plant conferred National Safety Award for outstanding performance in Industrial Safety as winner under two categories based on “Accident Free Year” and “Lowest Average Frequency Rate”, on 16.09.2017 The Company was one of the four Cement Companies to be conferr
Slide 25: Management Profile
Management Profile Mr. Vijay Aggarwal, Managing Director ´ B. Tech (Elec.) from IIT, Delhi and PGDM from IIM, Ahmedabad ´ Tenure in Company: 24 years ´ Past experience includes SBI Capital Markets ´ On the Board of various companies including Exide Industries, Exide Life Insurance Co, Aptech, Asiane
Slide 26: Management Profile
Management Profile Mr. Atul Desai, Executive Director & CEO – RMC ´ B.E. (Chemical) from Gujarat University and MBA (Marketing) from South Gujarat University. ´ Tenure in Company: nearly two years ´ Past experience includes Reliance Cement, Ambuja Cement and GSFC Mr. Joydeep Mukherjee, Executive Dir
Slide 27: 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: 23 years ´ Past experience includes New India Assurance, Thirumalai Chemicals and Vijayshree Chemicals Mr. Manish Bhatia , CFO ´
Slide 28: Focus on de-leveraging…to accelerate further
Focus on de-leveraging…to accelerate further ´ Borrowings as on 31st March’18 ´ Net standalone `14.85bn, down by `0.85bn Financial Cost as % of Sales 5.0% 4.6% 4.5% 4.0% 3.7% 3.5% 3.0% 2.0% Mar'15 Mar'16 Mar'17 Mar'18 2000 Standalone Net Debt Trend 1817 1748 1800 1570 1485 1600 ` Cr 1400 1200 1000 M
Slide 29: Shareholding Pattern as on 31st Mar'18
Shareholding Pattern as on 31st Mar’18 Non Inst, 9.3% Domestic Inst, 8.3% Foreign Inst, 7.5% Promoters, 74.9% Public category holding over 1% of total shares Shareholder % HDFC Trustee Company Ltd 5.3 National Westminster Bank Plc as Trustee of the Jupiter India Fund 2.3 CLSA Global Markets PTE Ltd
Slide 30: 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