Fineotex Chemical Limited · NSE:FCL

Fineotex Chemical — Investor Presentation (February 2017)

43 slides from Fineotex Chemical's investor presentation, February 2017

  1. Slide 1: Fineotex Chemical Limited – Investor Presentation cover letter

    FINEOTEX CHEMICAL LIMITED 17s/10 14" February 2017 To, ' General Manager, The Manager, Listing Department, Listing & Compliance Department | The Bombay Stock Exchange Limited, The National Stock Exchange of India Limited P.J. Towers, Dalal Street, | Exchange Plaza, Bandra Kurla Complex, | Mumbai — 4

  2. Slide 2: Investor Presentation February 2017

    FINEOTEX CHEMICAL LIMITED Investor Presentation Where Dependability Counts… FEBRUARY 2017

  3. Slide 3: Index

    FINEOTEX® INDEX Executive Summary Company Overview Business Overview Industry Overview Financial Overview 1

  4. Slide 4: Executive Summary

    ~_ EXECUTIVESUMMARY ©

  5. Slide 5: Executive Summary

    FINEOTEX® EXECUTIVE SUMMARY OVERVIEW BUSINESS MIX KEY STRENGTHS FY16 FINANCIALS  Fineotex Group founded in 1979  Fineotex is one of India’s largest  Strong Balance Sheet with Zero  Total Income – INR 1,121 MN , 5 is engaged in manufacturing of and most progressive speciality Debt; High ROE and R

  6. Slide 6: Company Overview

    COMPANY OVERVIEW 4

  7. Slide 7: Company Overview

    FINEOTEX® COMPANY OVERVIEW  Fineotex Group was established in 1979 by Mr.Surendra Industry wise Revenue Break-up Tibrewala Fertilizer Chemicals Adhesives 4%  FCL was incorporated as a public limited company in 2007. The 3% company was listed on Bombay Stock Exchange in March 2011, Other and listed

  8. Slide 8: Promoter Background

    FINEOTEX® PROMOTER BACKGROUND Mr. Surendra Kumar Tibrewala – Chairman & MD Mr. Sanjay Tibrewala – Executive Director & CFO  Commerce graduate from Mumbai University & a Law  Post Graduate, with specialization in Textile Processing graduate from Government Law College and Chemicals from Sasmira Uni

  9. Slide 9: Key Milestones

    FINEOTEX® KEY MILESTONES  Listed on NSE  Incorporated a Wholly  Listed on BSE Owned Subsidiary in  Incorporated a Wholly Owned UAE, Fineotex  Incorporation of  Incorporation of Subsidiary in Malaysia Specialities FZE Fineotex Chemical Fineotex Chemical  Acquired major stake in Biotex  Receiv

  10. Slide 10: Global Footprint

    FINEOTEX® GLOBAL FOOTPRINT Malaysian Facility at  Presence in 33 countries like Australia, Bangi, Malaysia Germany, Turkey, Bulgaria, Argentina, South Africa, Brazil, Indonesia, Thailand, Mauritius, Vietnam, Malaysia, Singapore, UAE, Tanzania etc  Company also got recognised as a Star Export House

  11. Slide 11: Manufacturing Facilities

    FINEOTEX® MANUFACTURING FACILITIES MALAYSIAN FACILITY AT BANDER BARU BANGI, MALAYSIA  PLot 71, Jalan P10/21, Selaman Industrial Park,43650 Bandar Baru Bangi, Selangor, Malaysia. INDIAN FACILITIES LOCATED  Current production capacity of AT MAHAPE, NAVI MUMBAI 6,500 MT p.a.  Trans Thane Creek Indus

  12. Slide 12: Strong R&D Capabilities

    FINEOTEX® STRONG R&D CAPABILITIES  Fineotex has state-of-the-art technology and critical for tweaking the quality and is continuously updated with in- house R&D performance of the products. at 2 laboratories in Mumbai.  Laboratories are equipped with all kinds of  Strong R&D capabilities help the

  13. Slide 13: Textile Industry Clients

    FINEOTEX® TEXTILE INDUSTRY CLIENTS 11

  14. Slide 14: Other Industry Clients

    FINEOTEX® OTHER INDUSTRY CLIENTS 12

  15. Slide 15: Key Strengths

    FINEOTEX® KEY STRENGTHS Strong Balance Sheet, Zero Debt, High ROCE & ROE, Consistent Dividend Paying Strong geographical Strong and well reputed footprints Management Team Access to best Low cost producer; competitive price technological knowledge positioning base through Biotex, Malaysia Strong Ind

  16. Slide 16: Competitive Advantage

    FINEOTEX® COMPETITIVE ADVANTAGE High Entry Barriers 1  Industry dominated by few players as strong technical knowhow needed  High level of customization  Quality & efficiency focused products Sticky Customer Profile  Critical products having significant impact on end product properties 2  Produ

  17. Slide 17: Future Strategy

    FINEOTEX® FUTURE STRATEGY Increasing Market Share  Increasing market share in textile chemicals segment with more product range and novel applications. Leverage Biotex Brand  Leverage Biotex brand in domestic markets and increasing share in export markets.  Using technical knowledge & expertise o

  18. Slide 18: Business Overview

    BUSINESS OVERVIEW 16

  19. Slide 19: Textile Chemicals and Other Chemicals

    TEXTILE CHEMICALS Pretreatment Dyeing Printing Finishing OTHER CHEMICALS Leather Water Paper and Agro- Construction Adhesives Treatment Paint Chemicals Chemicals Chemicals Chemicals Chemicals 17

  20. Slide 20: Textile Chemicals

    FINEOTEX® TEXTILE CHEMICALS  Global textile chemicals market is expected to grow at a CAGR of 3.7% by 2020. Global textile chemicals market to be SPINNING WEAVING PRETREATMENT DYEING PRINTING FINISHING valued at US$25.42 billion by 2020. De-sizing Dyeing Rotary Exhaust PROCESS Sizing Scouring Washi

  21. Slide 21: Pretreatment Chemicals

    FINEOTEX® PRETREATMENT CHEMICALS  Natural fibers and synthetic fibers contain primary impurities  Textile pre treatment is the series of cleaning operations. All that are contained naturally, and secondary impurities that are impurities which causes adverse effect during dyeing and added during sp

  22. Slide 22: Dyeing Chemicals

    FINEOTEX® DYEING CHEMICALS  Dyeing is the process of adding color to textile products and man-made. like fibers, yarns, and fabrics. Dyeing is normally done in a special solution containing dyes and particular chemical material.  The dyeing process includes sequestering agents, acid buffers, After

  23. Slide 23: Printing Chemicals

    FINEOTEX® PRINTING CHEMICALS  Textile printing is the process of applying colour to fabric in printing one or more colours are applied to it in certain parts definite patterns or designs. In properly printed fabrics the colour only, and in sharply defined patterns. is bonded with the fibre, so as t

  24. Slide 24: Finishing Chemicals

    FINEOTEX®® FINEOTEX FINISHING CHEMICALS  In textile manufacturing, finishing is the processes that converts silicone emulsions amino, wax finishing agents, antistatic agents, the woven or knitted cloth into a usable material and more water repellants, antistatic agents, water repellants and soil sp

  25. Slide 25: Other Specialty Chemicals

    FINEOTEX® OTHER SPECIALTY CHEMICALS  FCL also manufactures other specialty chemicals like adhesives, construction , water treatment , agriculture, leather, paint & food additives, foundry chemicals, defoamers, elastomers, paper and wood & handicraft. cosmetic additives, flavours and fragrances acro

  26. Slide 26: Case Studies

    FINEOTEX® CASE STUDIES FINOX XLH FINOCON ADA FINOCON ECO BIOPRINT BDT – FINOPRET ZF – FINOX XLH – CONCENTRATED Premium – Soda Concentrate – Sodium Alginate Zero TOWEL PRODUCTS – Ash Substitute Acetic Acid Substitute Formaldehyde SILICONES Pretreatment, Benefits Substitute Benefits Resin Benefits Dye

  27. Slide 27: Biotex

    FINEOTEX® BIOTEX Biotex Shareholding (%) Dr . Cedric  BioTex was founded in 2002 in Malaysia by Dr. Cedric Veniat Veniat  It manufactures innovative specialty chemicals using French Technology 40% FCL  The manufacturing facilities are strategically located at an industrial hub in 60% Selangor, Ma

  28. Slide 28: Biotex Case Studies

    FINEOTEX® BIOTEX CASE STUDIES BIOTEX NELA – Multifunctional Auxiliary for BIOTEX LTB – Low Temperature Bleaching Pretreatment Less Less Time Water & Less Wastage Energy BENEFITS BENEFITS  Low temperature bleaching agent at 75-80  All in one multifunctional product for degrees for 30 min pretreatme

  29. Slide 29: Biotex Case Studies

    FINEOTEX® BIOTEX CASE STUDIES Aquastrike VCF– Non Toxic & Ecofriendly Mosquito Killer Liquid • It is a non toxic, non polluting, Eco-friendly solution, produced in Malaysia with European design engineering. • Simply poured on the water surface at a rate of 1ml per square meter, the silicon based liq

  30. Slide 30: Industrial Overview

    INDUSTRIAL OVERVIEW 28

  31. Slide 31: Indian & Global Specialty Chemicals Industry

    FINEOTEX® INDIAN & GLOBAL SPECIALTY CHEMICALS INDUSTRY  The Indian Specialty Chemicals industry is pegged around $17.7 bn (excluding agro chemicals, dyes & pigments). 1,880.0  The Indian Chemical Industry which is 3% of the global market size, is pegged at approximately $ 108 bn . 713.0  The Indi

  32. Slide 32: Government Initiatives

    FINEOTEX® GOVERNMENT INITIATIVES  The Indian Government has taken steps to improve competitiveness in the sector. The major being:  Industrial licensing being abolished for most sub sectors.  FDI up to 100% granted in the chemicals sector  The government is continuously reducing the list of rese

  33. Slide 33: Financial Overview

    FINANCIAL OVERVIEW 31

  34. Slide 34: Historical Standalone Income Statement

    FINEOTEX® HISTORICAL STANDALONE INCOME STATEMENT INCOME STATEMENT (INR Mn) FY11 FY12 FY13 FY14 FY15 FY16 9M-FY17 Total Revenue 282 333 407 535 650 681 557 Expenses 222 276 352 486 537 498 417 EBITDA 60 57 54 49 113 183 140 EBITDA Margin % 21.27% 17.12% 13.27% 9.16% 17.38% 26.87% 25.13% Other Income

  35. Slide 35: Standalone Balance Sheet

    FINEOTEX® STANDALONE BALANCE SHEET PARTICULARS FY 13 FY14 FY 15 FY16 H1 FY17 PARTICULARS FY 13 FY14 FY15 FY16 H1 FY17 EQUITIES & LIABILITIES ASSETS Shareholder Funds 546 601 707 837 908 Non Current Assets 225 244 576 678 742 (A) Share Capital 112 112 224 225 225 (A) Net Fixed Assets 63 68 106 120 14

  36. Slide 36: Standalone Financial Performance

    FINEOTEX® STANDALONE FINANCIAL PERFORMANCE Total Revenue EBITDA M % Net Profit 800 30.0% 160 151 26.9% 700 25.0% 140 21.3% 17.4% 600 120 112 17.1% 20.0% 500 100 13.3% 9.2% 400 15.0% 80 58 300 51 54 681 10.0% 60 42 200 333 407 535 650 282 40 100 5.0% 20 0 0.0% 0 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY1

  37. Slide 37: Historical Consolidated Income Statement

    FINEOTEX® HISTORICAL CONSOLIDATED INCOME STATEMENT INCOME STATEMENT (INR Mn) FY12 FY13 FY14 FY15 FY16 9M-FY17 Total Revenue 798 954 867 1,020 1,088 888 Expenses 723 860 774 855 822 682 EBITDA 75 94 93 165 266 206 EBITDA Margin % 9.40% 9.85% 10.73% 16.18% 24.45% 23.20% Other Income 23 25 28 45 33 33

  38. Slide 38: Consolidated Balance Sheet

    FINEOTEX® CONSOLIDATED BALANCE SHEET PARTICULARS FY 13 FY14 FY 15 FY 16 H1 FY17 PARTICULARS FY 13 FY14 FY15 FY 16 H1 FY17 EQUITIES & LIABILITIES ASSETS Shareholder Funds 581 647 763 913 1,003 Non Current Assets 200 224 556 647 709 (A) Share Capital 112 112 224 225 225 (A) Net Fixed Assets 66 76 117

  39. Slide 39: Consolidated Cash Flow Statement

    FINEOTEX® CONSOLIDATED CASH FLOW STATEMENT CASH FLOW (INR Mn) FY13 FY14 FY15 FY16 Cash and Cash Equivalents at Beginning of the year 12 28 118 92 Cash Flow From Operating Activities 41 11 136 136 Cash Flow from Investing Activities 8 119 (124) (98) Cash Flow From Financing Activities (31) (36) (26)

  40. Slide 40: Consolidated Financial Performance

    FINEOTEX® CONSOLIDATED FINANCIAL PERFORMANCE Total Income EBITDA M % Net Profit CASH FLOW FROM OPERATIONS 1,200 1,088 30.0% 200 136 136 1,020 170 140 959 867 1,000 25.0% 120 798 150 129 800 24.5% 20.0% 100 80 600 15.0% 100 54 70 65 60 16.2% 60 41 400 10.0% 10.7% 50 40 9.4% 9.9% 11 200 5.0% 20 - 0.0%

  41. Slide 41: Capital Market Information

    FINEOTEX® CAPITAL MARKET INFORMATION INCREASE IN PROMOTER HOLDING PRICE DATA (AS ON 30th DECEMBER, 2016) Promoter Holding (%) Face value (INR) 2 Market Price (INR) 27.9 75.0 52 Week H/L (INR) 41.3/19.5 70.0 71.7 71.7 65.0 70.2 Market Cap (INR Mn) 3,133 66.3 Equity Shares Outstanding (Mn) 111.8 60.0

  42. Slide 42: Safe Harbour

    FINEOTEX® SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fineotex Chemical Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe

  43. Slide 43: Capital Market Information

    FINEOTEX® CAPITAL MARKET INFORMATION INCREASE IN PROMOTER HOLDING PRICE DATA (AS ON 31ST DECEMBER, 2015) Promoter Holding (%) Face value (INR) 2 Market Price (INR) 26.45 75 52 Week H/L (INR) 44.6/17.8 70 70.7 71.7 Market Cap (INR Mn) 2970.3 65 66.3 Equity Shares Outstanding (Mn) 22.5 60 62.5 Free Fl

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