Slide 1: Investor Presentation
Investor Presentation 1 PDF created with pdfFactory Pro trial version www.pdffactory.com
Slide 2: Presentation Structure
Presentation Structure q Overview of the Company q Performance Factors affecting Business Highlights Key Trends q Business Review q Consolidated Results q Key Investment Considerations 2 PDF created with pdfFactory Pro trial version www.pdffactory.com
Slide 3: Indian Operations: An Overview
Indian Operations : An Overview § Established in 1959 § Pioneer in consumer and industrial specialty chemicals. § Strong market position in most products § "Fevicol" ranked as # 1 Household care brand. § Ranked as # 1 company in chemical segment by Business Today (2009) § Strong geographical presenc
Slide 4: Global Operations: An Overview
Global Operations : An Overview § Exports to more than 80 countries. Major exports to Middle East, Africa, USA & Europe § Export Turnover of $42 mn in FY 2009-10 § CAGR growth of 25% over last 5 years § 13 Overseas subsidiaries – (4 Direct and 9 Step down) § Total Revenue from Overseas subsidiaries
Slide 5: Performance
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Slide 6: Standalone Performance Q1'10 vs Q1'11
Standalone Performance Q1’10 vs Q1’11 Ø Gross Profit up by 21% over LY mainly due to better realizations. Ø Input cost (material and freight) showing upward movement. Ø Forex gain / (loss) in Q1’11 is ($0.2mn) as compared to ($ 1.4mn) in Q1’10. Ø Effective tax rate higher than LY due to completion o
Slide 7: Cash Flow Statement
Cash Flow Statement Ø Surplus Cash presently parked in various Short term Debt instruments of Mutual Funds. 7 * Operating Profit is Profit before Depreciation & Interest adjusted for Gain / (loss) on sale of assets, FCCB/ECB Foreign Currency losses PDF created with pdfFactory Pro trial version www.p
Slide 8: Sustainable Growth
Sustainable Growth 100 500 CAGR 80 Turnover 18% 400 EBITDA & PAT ($ mn) EBITDA 24% Turnover ($ mn) 60 PAT 31% 300 40 200 20 100 - - 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Turnover EBITDA PAT Sustainable Growth y-o-y 8 PDF created with pdfFactory Pro trial version www.pdffactory.com
Slide 9: Return on Capital Employed
Return on Capital Employed 50% 41% 40% 33% 30% 30% 29% 29% 30% 28% 28% 27% 26% 21% 20% 16% 10% 0% 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 ROCE (%) Adj ROCE % Delivering high Return on Capital Employed Consistently Note : ROCE = EBIT / Capital Employed 9 Adj ROCE is calculated after excluding
Slide 10: Consistent Dividend Payout
Consistent Dividend Payout 50.0% 39.7% 40.0% 37.6% 36.9% 35.4% 30.2% 30.0% 27.5% 20.0% 10.0% 0.0% 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Dividend Payout Ratio Note : Dividend Payout =Dividend (incl Dividend Tax) / PAT 10 PDF created with pdfFactory Pro trial version www.pdffactory.com
Slide 11: Share Price Performance
Share Price Performance 800 700 600 500 400 300 200 100 - Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- 05 05 05 06 06 06 06 07 07 07 07BSE 08 08PIL 08 08 09 09 09 09 10 10 10 Outperformed the Benchmark Index 11 PDF created with pdfFact
Slide 12: Business Review
Business Review 12 PDF created with pdfFactory Pro trial version www.pdffactory.com
Slide 13: Business Review
Business Review Ø Consumer & Bazaar Products Ø Speciality Industrial Chemicals Ø International Businesses 13 PDF created with pdfFactory Pro trial version www.pdffactory.com
Slide 14: Consumer & Bazaar Products
Consumer & Bazaar Products ü Consumer & Bazaar Products accounts for 77% of Company’s revenue. ü Consist of following product segment o Adhesive & Sealants (49% of Company’s revenue) Leadership position in Adhesive and Sealant Segment Established Brands Extensive distribution network in place o Cons
Slide 15: Major Brands
Major Brands Ø Adhesive & Sealant Ø Construction Chemical Ø Art Materials & Others 15 PDF created with pdfFactory Pro trial version www.pdffactory.com
Slide 16: Consumer & Bazaar Products
Consumer & Bazaar Products 400 Revenue - $ mn * EBIT - $mn* 100 324 84 300 282 80 56 60 200 40 33 109 27 90 100 20 0 0 Q1 FY Q1 FY FY'09 FY'10 FY'11 FY'09 FY'10 FY'11 § Revenue up by 21% in Q1. § Increase in input cost and Higher AS&P spend impacted Q1 margin. § EBIT up by 24% in Q1. 16 * Gross of I
Slide 17: Specialty Industrial Chemicals
Specialty Industrial Chemicals ü Industrial Chemical accounts for 22% of Company’s revenue ü Consist of following sub-segment o Industrial Adhesive (7% of Company’s revenue) Leadership position in Adhesive Extensive range of products catering to packaging, cigarettes, stock labels, stickers, footwea
Slide 18: Specialty Industrial Chemicals
Specialty Industrial Chemicals EBIT - $ mn* 120 Revenue - $mn* 25 102 20 100 90 20 80 15 12 60 10 40 31 4 5 25 5 20 0 0 Q1 Q1 FY FY FY'09 FY'10 FY'11 FY'09 FY'10 FY'11 § 24% jump in Revenue in Q1 (strong growth in both domestic & export business). § Increase in Input cost affected margins. § 24% gro
Slide 19: International Business
International Business q All region except Middle East have shown good sales growth. q North and South America have reported 7% and 12% growth in sales respectively. q Bangladesh business which was started in H2 LY has performed well. q Economic slowdown impacted Dubai business. 19 Note : All at lik
Slide 20: International Business
International Business q Higher Sales, coupled with costs saving (USA) has resulted in growth in EBITDA. q South America Q1 EBITDA is not comparable with LY to the extent of exceptional item of forex gain LY. q Middle East EBITDA was affected by lower Sales. 20 Note : All at like for like forex PDF
Slide 21: Consolidated Results
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Slide 22: Consolidated Results
Consolidated Results Note : 22 Gross Profit = Net Turnover less Material Cost ROCE = EBIT / Capital Employed PDF created with pdfFactory Pro trial version www.pdffactory.com
Slide 23: Key Investment Considerations
Key Investment Considerations o High market share and strong position in most products and segments. o Strong portfolio of brands. o Majority sale from products and segment pioneered in India. o Track record of consistent growth. o Attractive return on capital employed. o Consistent dividend payout.
Slide 24: Disclaimer
Disclaimer This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views being expre