Navin Fluorine International Limited · NSE:NAVINFLUOR
Navin Fluorine International — Investor Presentation (October 2014)
29 slides from Navin Fluorine International's investor presentation, October 2014
Slide 1: Investor Presentation October 2014
Navin Fluorine International Limited Navin Fluorine International Investor Presentation October 2013 Investor Presentation October 2014 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Navin Fluorine International Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 3: NFIL – An Introduction
NFIL – An Introduction H1 FY15 Financials Diversified portfolio of advanced fluorine derivatives Revenue with wide range of applications Rs. 254 Crs. Largest Business Segments - Refrigerants, Inorganic Fluorides, Specialty Fluoro Chemicals & CRAMS Integrated EBITDA Specialty Manufacturing faci
Slide 4: Fluorine, A Vast Landscape…
Fluorine, A Vast Landscape… Global demand for Fluoro-chemicals in 2016 to reach 3.5 mn MT (Growth of 3.9% per annum), valued at USD 19.7 billion. Pharmaceuticals Agriculture Automotive Solar / Energy Electronics Steel Glass Aluminum White Goods ... and increasingly being used in newer applications 4
Slide 5: Evolution of NFIL
Evolution of NFIL … 2003 2003 - 2013 2013 ... Focus on CRAMS & Specialty Chemical Segment to drive growth Set-up Multi- Purpose Plant at Surat CRAMS expansion at Dewas Commenced CRAMS business in 2011 Acquisition of Manchester Organics Ltd. (MOL) in 2011 Fluorspar JV with GMDC & GFL St
Slide 6: Professional Management
Professional Management Mr. H.A. Mafatlal – Chairman Professional Team …. Mr. Shekhar Khanolkar : Managing Director Chemical Engineer with Masters in Management studies and an alumni of Harvard Business School Spent more than 21 years in the Chemical industry with both Indian & Multinational Chemica
Slide 7: Business Segments
Business Segments Refrigerants Inorganic Fluorides Specialty Chemicals CRAMS 7
Slide 8: Business Segments
Business Segments Refrigerant Gases Revenue : H1 FY15 Specialty Chemicals [Rs. 254 Crs.] 99 91 39% 36% 11 53 4% Inorganic Fluorides 21% CRAMS 8
Slide 9: Refrigerant Gases …
Refrigerant Gases … Product & Applications Geographical Break up [H1 FY15] Exports MAFRON 22 34% Used in Residential & Commercial air conditioning Exports to South-East Asia, Middle East, Saudi Arabia, Turkey, Egypt & South Africa Domestic 66% MAFRON – Refrigerant Brand of NFIL Pioneered ref
Slide 10: … demand to remain stable
… demand to remain stable Current Scenario… Road Ahead… Under Phase out due to its Ozone More than 90% of Room Air Conditioners depleting & Global warming (RAC) uses R-22 as refrigerant properties Growth in country’s air conditioner market Production restricted at average of fuelled by a rap
Slide 11: Inorganic Fluoride
Inorganic Fluoride Stable Business… Growth Drivers… Ongoing investment into research Hydrofluoric acid, ammonium bifluoride and and development to introduce other inorganic fluorides newer variants User Industry : Glass , Metals, Agro, Pharma, Plans to introduce several new FMCG etc. inorgan
Slide 12: Specialty Fluoro Chemicals …
Specialty Fluoro Chemicals … Fluorine based molecules with niche applications in Pharmaceutical, Agrochemical & Petrochemical segments Constant research and innovation Strong Product Portfolio of over 40 Products Introduction of 6 new fluorinated compounds with growing application in last ye
Slide 13: … to be a key focus area
… to be a key focus area Expanding the facility … One of the largest BF3 facilities in the world Expanded manufacturing and research capacity in this segment to speed up new product development and commercialization R&D facility and pilot plant in Surat State-of-the-art multi purpose plant i
Slide 14: Greenfield Facility at Dahej for Specialty Chemicals
Greenfield Facility at Dahej for Specialty Chemicals JV with Piramal Enterprises Ltd (PEL) 51% PEL stake 49% NFIL stake Facility to develop, manufacture & sell specialty Fluorochemicals Initial investment, including site development, ~Rs. 120 Crs Site Development and regulatory approvals und
Slide 15: CRAMS …
CRAMS … Large Opportunity Initiative to cater to product development needs of innovator Pharma and Agro companies in Europe, US and Japan Opens new doors as molecules like Bromine and Chlorine are being progressively replaced by Fluorine Increasing acceptability of fluorine resulting in wide r
Slide 16: … to grow with MOL Integration
… to grow with MOL Integration Manchester Organics Limited Integration Synergies… Privately-held chemical company based in Milligram to multi-kilo research / North England established in 1996 production capability with high pressure / Research experience in Fluorination specialist fluorination
Slide 17: Key Strengths & Growth Drivers
Key Strengths & Growth Drivers 17
Slide 18: Key Strengths
Key Strengths Ability to handle Fluorination chemistry Expertise in handling Hydrofluoric acid Direct fluorination of pre-existing compound a difficult process requiring highly specialized equipments and techniques Fluorination capabilities include catalytic, non catalytic, gas phase and liqui
Slide 19: Focused Research
Focused Research Infrastructure Affiliations 4 Labs for organic and inorganic synthesis R&D Center recognized by DSIR, Ministry Vapor Phase chemistry Lab of Science & Technology, India High Pressure chemistry lab Working relationships with: Fixed bed continuous hydrogenator Indian Inst
Slide 20: Manufacturing Strengths …
Manufacturing Strengths … Surat, Gujarat Dewas, Madhya Pradesh Located on 135 acre plot Spread over an area of ~45 acres One of the largest integrated fluoro cGMP Pilot Plant with Kilo Laboratory chemicals complex in India, since 1967 Consisting of GL, SS, Hastelloy & High standards of H
Slide 21: … to be enhanced with expansion
… to be enhanced with expansion Expansion of CRAMS facility at Dewas, Madhya Pradhesh To address ton level requirements of existing CRAMS customers Investment of ~ Rs 60 Crs. Expected to be commissioned by end of FY15 21
Slide 22: Marquee Clientele
Marquee Clientele CLARIANT = syngenta Coy Bayer Coy Bayer CropScience HETERO c= @ Uh) NOVARTIS /.LUPIN 2 qu POND 9 AUROBINDO Committed to Healthier Life YR. REDD) SUN “Y Dr-Reoby's INDUSTRIES LTD. ; a7 Fy BLUE star | <=> OrchidPharma I Responsible Care” M1, ARVIND MAFATLAL Grour
Slide 23: Growth Strategies
Growth Strategies CRAMS - Leveraging fluorination technology to partner with global 1 majors in their product development cycle 2 Specialty Chemicals - Development of new products 3 Refrigerants – Stable Cash Generating segment 4 Inorganic Fluorides – Expansion into newer geographies 23
Slide 24: Financial Overview
Financial Overview 24
Slide 25: Standalone Profitability Statement
Standalone Profitability Statement Rs. Crs. Q1 FY15 Q2 FY15 H1 FY15 QoQ% H1 FY14 YoY% Revenue 130 124 254 (5%) 215 18% Raw Material 65 59 124 100 Employee Expenses 17 14 31 25 Other Expenses 36 38 74 55 EBITDA 12 14 26 13% 34 (24%) Margin 9.4% 11.2% 10.3% 15.9% Other Income 4 6 10 13 Interest Expens
Slide 26: Standalone Balance Sheet
Standalone Balance Sheet Rs. Crs. Sep’14 Mar’14 Shareholder’s Fund Share capital 10 10 Reserves & Surplus 541 532 Non-current liabilities Long Term Borrowings 12 - Deferred Tax Liabilities (net) 32 33 Other non-current liabilities 28 27 Current liabilities Short term borrowings 30 57 Trade Payables
Slide 27: Strong Investments portfolio
Strong Investments portfolio Investment of Rs. 245 Crs. Investment in Debt Mutual Fund & FMP of Rs. 137 Crs. Investment in Properties of Rs. 47 Crs. Generated Income of Rs. 9 Crs in H1 FY15 Rental Income – Rs.5 Crs Treasury Income – Rs.4 Crs Strong Cash & Cash Equivalents Deployment in Revenue
Slide 28: Dividend History
Dividend History Dividend Per Share (Rs.) Consistent Dividend Payout 15% 21% 32% 33% 31% Continuous Dividend 75 since last 10 years Special Dividend of Rs. 60 per share in FY 12 16 14 15 15 Payout Ratio of more than 30% in last 3 years FY 10 FY 11 FY 12 FY 13 FY 14 Pay out Ratio Interim Divide
Slide 29: Contact
Contact For further information, please contact: Company : Investor Relations Advisors : Navin Fluorine International Ltd. Strategic Growth Advisors Pvt. Ltd. CIN : L24110MH1998PLC115499 CIN : U74140MH2010PTC204285 Mr. Partha Roychowdhury Ms. Sanjita Ghosh / Mr. Shogun Jain Chief Financial Officer p
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