Oriental Aromatics Ltd. · NSE:OAL
Oriental Aromatics — Investor Presentation (March 2020)
33 slides from Oriental Aromatics's investor presentation, Mar 2, 2020
Slide 1: Regulation 30 disclosure cover letter to BSE and NSE
Ref: OAL/BSE/NSE/58/2019-20 2"d March, 2020 To To The Manager The Manager Department of Corporate Services, Listing Department, BSE Limited, National Stock Exchange oflndia Limited Phiroz Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai- 400 00 I Bandra (East), Mumbai - 40
Slide 2: Investor Presentation | February 2020
INVESTOR PRESENTATION | February 2020 I \ \ I \) ..../ \\t so 4
Slide 3: Executive Summary
Executive Summary Overview • Oriental Aromatics Ltd. is one of the largest Indian manufacturers of a variety of Aroma Chemicals, Camphor, Fragrances and Flavours. • The company is one of the privileged few integrated manufacturers of fragrances and flavours as well as aroma chemicals globally. • The
Slide 4: Company Overview
3 Company Overview
Slide 5: Company Overview
Company Overview • The Fragrance and Flavours business of Oriental Aromatics was founded by Mr. Keshavlal Bodani in Fragrances 1955 and has been nurtured and handed down to three generations of the Bodani’s. • In August 2008, Oriental Aromatics’ promoters acquired a controlling stake of 57.66% in th
Slide 6: Value Chain
Value Chain Sources of Raw Raw Materials Products/Blends Customers Applications Materials Aroma Ingredients Aroma Ingredients and Incense Sticks Speciality Aroma Chemicals Camphor Products Pine Oil Air Fresheners ""firmenic� Givaudan° Terpene based aroma chemicals Pine Tree Others 1rr Cosmetics Synt
Slide 7: Promoter Background and Board of Directors
Promoter Background and Board of Directors Mr. Dharmil A. Bodani - Managing Director Ms. Amruda V. Nair - Non-Executive & Independent Director • A dynamic personality with vast experience of more than 3 decades in fragrance, • Has experience in leading international hospitality brands. Graduate in E
Slide 8: Geographical Presence
Geographical Presence ) Bareilly, Uttar Pradesh Vadodara, Gujarat Ambernath, Maharashtra Export to Countries Headquarters, Mumbai, INDIA • Manufacturing Plants Africa Malaysia Europe North America Egypt Myanmar France Mexico Nigeria Oman Geneva USA Pakistan Germany Asia Singapore Netherlands South A
Slide 9: Key Milestones
Key Milestones Mr. Keshavlal Since Setting up of the In August 2008, Commissioned The company In April the equity Commissioned Bodani founded commencement, Export-oriented controlling stake Speciality acquired business shareholders of Speciality Oriental Aromatics the company has facility for of 57.
Slide 10: Manufacturing Facilities
Manufacturing Facilities Bareilly, Uttar Pradesh • First Synthetic Camphor plant in India with technology from DuPont of USA in 1964. • This plant produces more than 12,000 MTPA of pine based chemicals and other products. • The plant has the ability to handle chemical operations such as fractionatio
Slide 11: R&D Set up
R&D Set up Centre for Innovation at Mumbai • State of the art synthesis lab • Dedicated to research on generic speciality aroma ingredients in a sustainable way • Between 20-25 research associates • Head-space GC-MS, Flash chromatography, UV along with regular analytical set-up • Well equipped bench
Slide 12: Clientele
Clientele Aroma Chemicals "'firmenic� Givaudan 0 1rr International Flavors & Fragrances �MANE symrise � � IITAKASAGO Proder&Gamble ROBERTET Flavours and Fragrances �avinKare MakJng Uves Happier L �® D.=Mar( 'tuture gCC?.!:.'P.,,, A JLMORISON 7S ........................ • INNOVATORS BY NATURE ,,�}�t1
Slide 13: Key Strengths
Key Strengths • 6 decades of experience in Aroma Chemicals and 7 decades of experience in Fragrances and Flavours Established • Evolved as a one stop shop solution provider for the F&F Industry Player • Strong Raw Material sourcing capability • Pioneer in the field of Terpene Chemistry in India • On
Slide 14: Business Overview
13 Business Overview
Slide 15: Business Mix
Business Mix Business Mix Aroma Chemicals & Camphor Fragrances & Flavors 14
Slide 16: Pine based Aroma Chemicals Manufacturing
Pine based Aroma Chemicals Manufacturing Pine Trees Tapping Distillation Process Gum Resin Heavy Oil Gum Turpentine Oil (GTO) Residue (70%) (15%) (10%) (5%) Terpinyl Isobornnyl Camphene Pineoils Capinone Terpineol Dipentine Isoborneol Ketone 101 Acetate Perf. Acetate Isobornyl Acetate Camphor 15
Slide 17: Aroma Chemicals Industry Overview
Aroma Chemicals Industry Overview • The global market for aroma chemicals is estimated at USD 4,727 Mn in 2018, and is forecast to grow at a CAGR of 5.3% to reach USD 6,126 Mn by 2023. • In FY18 Aroma chemicals contributed 16% in the F&F Industry and the major driver was due to growth in middle clas
Slide 18: Aroma Chemicals
Aroma Chemicals • Every aroma has a specific need and a unique characteristic. Whether it’s going to be used to mask, mimic or maximise a taste or smell, is key. • Each aroma molecule can be adapted to suit a variety of products and offer their own signature fragrance. After all, an aroma of a produ
Slide 19: Camphor
Camphor • OAL is one of the prominent manufacturers of Camphor in India • Camphor is a waxy, flammable, white or transparent solid with a strong aroma. • It can be produced from alpha-pinene, which is abundant in the oils of coniferous trees and can be distilled from turpentine produced as a side pr
Slide 20: Facts of Fragrances and Flavours
Facts of Fragrances and Flavours The sense of smell is the first of all our senses to develop. Even before we are born, our sense of smell is fully formed and functioning. A study indicates that 80% of the flavours we taste come from what we smell (which is why foods can become flavourless when we h
Slide 21: Flavours & Fragrance Industry Overview
Flavours & Fragrance Industry Overview • The global flavour and fragrance (F&F) market is valued at USD 21 Bn in 2018 and is Country 2017(USD 2022(USD % Growth projected to reach USD 35 Bn by 2028 growing at a CAGR of 5.1%. Bn) Bn) p.a • Of the main global regions, the flavours and fragrances market
Slide 22: Fragrance Compounds
Fragrance Compounds • A Fragrance compound, also known as an odorant, aroma, is a chemical compound that has a smell or odour. • Perfume is described as having three sets of notes, making the harmonious scent accord. The notes unfold over time, with the immediate impression of the top note leading t
Slide 23: Flavour Compounds
Flavour Compounds • Flavour is the sensory impression of food or other substance, and is determined primarily by the chemical senses of taste and smell. • Smell is the main determinant of a food item's flavour. • While only five basic tastes - sweet, sour, bitter, salty and umami (savoury) are unive
Slide 24: Strategic Overview
Strategic Overview 1 2 3 4 To focus on One of its kind Committed to be a Increased focus on sustainable chemistry automated Multi- global player in the high value – low and always Purpose Plant in India specialty aroma volume products environmentally for specialty aroma chemical space compliant chem
Slide 25: Financial Overview
24 Financial Overview
Slide 26: Historical Standalone Income Statement
Historical Standalone Income Statement Income Statement (Mn) FY17 FY18 FY19 9M-FY20 Operational Income 4,556 5,057 7,526 5,913 Total Expenses 3,975 4,398 6,375 4,983 EBITDA 581 659 1,151 930 EBITDA Margin (%) 12.75% 13.03% 15.29% 15.73% Depreciation 142 148 177 139 Interest 48 69 127 84 Other Income
Slide 27: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Liabilities (INR Mn) FY18 FY19 H1FY20 Assets (INR Mn) FY18 FY19 H1FY20 Shareholders Fund Assets Share Capital 84 168 168 Non-Current Assets Other Equity 3,362 3,752 4,155 Property, Plant and Equipment 1,577 1,936 1,935 Intangible Asset 90 62 41 Capital WIP 399 8 1
Slide 28: Historical Consolidated Income Statement
Historical Consolidated Income Statement Income Statement (Mn) FY17 FY18 FY19 9M-FY20 Operational Income 4,577 5,060 7,547 5,918 Total Expenses 4,009 4,413 6,400 4,993 EBITDA 568 647 1,147 925 EBITDA Margin (%) 12.41% 12.79% 15.20% 15.63% Depreciation 143 148 178 139 Interest 53 73 127 84 Exceptiona
Slide 29: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Liabilities (INR Mn) FY18 FY19 H1FY20 Assets (INR Mn) FY18 FY19 H1FY20 Shareholders Fund Assets Share Capital 84 168 168 Non-Current Assets Other Equity 3,292 3,751 4,155 Property, Plant and Equipment 1,583 1,936 1,935 Goodwill 450 450 450 Capital WIP 400 8 10 F
Slide 30: Financial Performance (Consolidated)
Financial Performance (Consolidated) Revenue from Operations (INR Mn) EBITDA (INR Mn) EBITDA Margin (%) PAT (INR Mn) PAT Margin (%) 15.20% 7.57% 16.00% 12.41% 12.79% 6.10% 14.00% 571 7,547 12.00% 4.94% 1,147 10.00% 5,060 8.00% 4,577 6.00% 279 647 250 568 4.00% 2.00% 0.00% FY17 FY18 FY19 FY17 FY18 FY
Slide 31: Capital Market Information
Capital Market Information 20% 10% 0% -10% -20% -30% -40% -50% Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 OAL SENSEX Price Data (31st December, 2019) INR Shareholding Pattern as on 31st December, 2019 Face Value 5.0 CMP 174.7 52 Week H/L (INR) 309.85/165.00 P
Slide 32: Disclaimer
Disclaimer Oriental Aromatics Ltd. Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are i
Slide 33: tid tromatios Lede
tid tromatios Lede
Oriental Aromatics — Investor Presentation (March 2020) on 6ix