Slide 1: Prism Cement Limited Investor Presentation May'17
AMONGST INDIA’S LEADING INTEGRATED BUILDING MATERIALS COMPANY Prism Cement Limited Investor Presentation May’17 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 further– especially road construction (concretization), railways incl dedicated freight corridors, ports, airports and power ´ Focus on Housing for all Program. Affordable housing emerging as growth
Slide 6: www.prismcement.com
www.prismcement.com
Slide 7: Cement Overview
Cement Overview INDIA ´ 2 Modern Plants in Satna, MP(Central India) with effective capacity of 7mn ton Current ´ Superior Capital Employed < ~US$ 36/ton ´ No significant capacities planned in Cluster. Consolidation happening in the cluster ´ Wide network of ~3810 dealers and ~165 stocking points ´ S
Slide 8: Cement – Financial & Operational Highlights
Cement – Financial & Operational Highlights Particulars Unit FY17 FY16 FY10 Cement & Clinker Sales Volume * Mn Ton 5.21 5.29 2.86 Net Sales Rs in bn 22.0 20.1 10.2 Net realization incl clinker Rs/Ton 4221 3800 3562 Total cost Rs in bn 18.5 17.7 6.7 Total cost Rs/Ton 3552 3356 2347 EBITDA incl operat
Slide 9: Cement – Realization and Cost Trend
Cement – Realization and Cost Trend Realization - Cost Trend 4500 4221 1400 1227 3911 3907 1200 4000 3784 3800 3552 1000 3500 832 3272 EBITDA/Ton 3632 Relz - Cost 3130 3611 800 3518 3562 3356 3055 600 3000 698 501 2859 400 477 2500 2664 410 339 200 2036 2347 249 173 2000 0 FY09 FY10 FY11 FY12 FY13 F
Slide 10: Cement EBITDA/Ton
Cement EBITDA/Ton ´ New Blending Silo ´ Q4 FY17 ROCE: 30% Annualized ´ Pet Coke ´ EBITDA / ton as per Ind AS at `588 EBITDA/Ton Trend 1,500 1,229 1,000 741 698 in Rs 501 477 500 339 410 249 173 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 EBITDA/Ton Trend … ROCE: 63% ´ Subdued Markets ´ Blending S
Slide 11: Complete Concrete Solutions
Complete Concrete Solutions | 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. Benefits such as consistent quality, saving of site space, reduced labour, safety etc ´ Started in mid-90s : ~10% of total cement used for concrete in India i
Slide 13: RMC Readymix (India)
RMC Readymix (India) ´ 2nd largest player : pan India presence with 87 Plants in 40 Cities/towns ´ Backward integration: 5 plants of aggregates & manufactured sand ´ NABL Accredited Labs ´ Growth to pick up after five years of flattish growth. FY03-12 sales CAGR of 39% ´ Demand drivers – Urbanizatio
Slide 14: RMC EBITDA – Performance
RMC EBITDA – Performance 0.60 0.56 0.56 7.0% 0.52 0.49 6.0% 0.50 0.40 6.1% 0.39 0.38 5.0% 0.40 EBITDA ` bn EBITDA % 0.30 4.0% 0.30 5.9% 4.9% 4.1% 3.0% 0.20 3.4% 3.1% 2.5% 2.0% 2.4% 0.10 1.0% 0.00 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 EBITDA EBITDA % ´ Subdued Economy ´ Extra Cautious on Debto
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
www.prismcement.com 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 ´ 11 Manufacturing plants (Own & JVs) with capacity of ~61mn m2 pa. Asset light business model through seven manufacturing JVs contributing ~70% of capacity with 5 JV
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% 1.80 1.76 14.0% 1.60 1.56 12.0% 1.40 14.6% 1.18 10.0% 1.20 EBITDA ` bn EBITDA % 1.00 10.3% 8.0% 0.89 0.78 0.77 0.80 6.0% 0.60 6.7% 0.45 3.3% 2.9% 4.0% 0.40 4.7% 0.4% 2.0% 0.20 2.2% 0.07 0.00 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 EBITDA EBITDA % FY16 & FY17
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 ´ Prism’s investment : 51% stake at book value of `1.05bn ´ FY17 financials: ´ Gross written premium : `0.68bn ´ Profit befo
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: 23 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. Atul Desai, Executive Director & CEO – RMC ´ B.E. (Chemical) from Gujarat University and MBA (Marketing) from South Gujarat University. ´ Tenure in Company: 9 months ´ Past experience includes Reliance Cement, Ambuja Cement and GSFC Mr. Joydeep Mukherjee, Executive Director &
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: 22 years ´ Past experience includes New India Assurance, Thirumalai Chemicals and Vijayshree Chemicals Mr. Pramod Akhramka , CFO
Slide 24: Focus on de-leveraging…to accelerate further
Focus on de-leveraging…to accelerate further ´Borrowings as on 31st March’17 ´ Net standalone `15.7bn, down by ~`1.7bn ´Average cost of Standalone debt: 10.4% Standalone Net Debt Trend 1817 1900 1782 1748 1800 1700 1574 1600 1500 Rs Cr 1400 1300 1200 1100 1000 Mar'14 Mar'15 Mar'16 Mar'17 24 www.pris
Slide 25: Shareholding Pattern as on 31st Mar'17
Shareholding Pattern as on 31st Mar’17 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 7.6 National Westminster Bank Plc as Trustee of the Jupiter India Fund 1.6 CLSA Global Markets PTE Ltd
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