Asahi Songwon Colors Ltd. · NSE:ASAHISONG
Asahi Songwon Colors — Q2 FY22 Earnings Presentation
37 slides from Asahi Songwon Colors's earnings presentation, Oct 27, 2021
Slide 1: Cover letter to stock exchanges
* Asah1Songwon Ref: ASCL/SEC/2021-22/47 October 27, 2021 2. To, ~~ General Manager The General Manager (Listing) Department of Corporate Services National Stock Exchange of India Ltd BSE Limited 5 th Floor, Exchange Plaza 1st Floor, New Trading Ring Plot No. C/ 1, G Block Rotunda Building, P. J. Tow
Slide 2: Investor Presentation October 2021
Investor Presentation OCTOBER 2021 ASAHI SONGWON COLORS LIMITED BSE CODE : ASAHISONG | 532853 NSE CODE : ASAHISONG
Slide 3: Contents
Contents 01 ABOUT US 04 FINANCIAL STATEMENT SUMMARY SLIDE 03-11 SLIDE 21-24 02 BUSINESS CANVAS 05 QUARTERLY HIGHLIGHTS SLIDE 12-17 SLIDE 25-29 03 STRATEGIC ADVANTAGES AND INVESTMENT MERITS SLIDE 18-20
Slide 4: About Us
About 04 – Corporate Portrait 05 – Our Journey Us 06 07 – Strengthening Business Model – Global Footprint 08 – Product Portfolio 09 – Clientele 10 – Board of Directors
Slide 5: Corporate Portrait
04 Corporate Portrait Asahi Songwon Colors Limited is one of the leading manufacturers of blue 2 Manufacturing 3 decades of (Phthalocyanine) pigments facilities manufacturing expertise for ink, plastics, paint, textile and paper industry Exporting to Team strength of with globally benchmarked manufa
Slide 6: Our Journey
05 Our Journey SMALL START WITH ASPIRATIONS TO > SUBDUED FINANCIAL GROWTH | > READY FOR THE NEXT LEG BECOME A GLOBAL LEADER IN STRENGTHENING BUSINESS MODEL OF GROWTH PIGMENT INDUSTRY 1993 - - - - - - 0 2014 2016 - - - - - 0 2018 2019 - - - - ------10 Onwards • 1993 – Commenced operations of green •
Slide 7: Strengthening Business Model
06 Strengthening Business Model 2005 -2015 0 2015 -2020 Added 2 new Added 3 new products products Continuous investments made towards and entered new product category making the business sustainable of AZO pigments 2015 0 2021 Served 19 Reducing costs Serving more than 4 0+ customers and Ramping up
Slide 8: Strong Global Footprint
07 Strong Global Footprint • List of countries we export to 1. USA 2. KOREA ••• ••• •• . . ········~·.•··•:•:-·:-· • •• •••• • •• •••••••••••• ... . .....:.:•.· ...··•··• ............... . .......... . ·············. . 3. JAPAN • ••••• .:Ill.•:•:-::.-:•:•:•:-:-::•:-:-.-.--.··•:· ..•:-:· .;:::•···· ·
Slide 9: Product Portfolio
08 Product Portfoli o At Asahi, we leverage our Enviable track record of expertise, experience and zero product returns from technical capabilities to our customers in last 3 develop products that P HTHALOCVAN IN E AZO PIG ME NTS decades of existence cater to the diverse needs PIGMENTS speaks volume
Slide 10: Serving Leading Brands
09 Serving Leading Brands We have come a long way from our humble beginnings CLARIANT 18 years of collaboration • We have not lost a single customer to become a preferred and still going strong in our more than 3 decades of existence choice of supplier to the • More than 80%of business is repeat lar
Slide 11: Board of Directors
10 Board of Directors Mrs. Paru M. Jaykrishna Mr. R.K. Sukhdevsinghji Mr. Arvind Goenka Mr. Jayprakash M Patel CHAIRPERSON & MANAGING DIRECTOR DIRECTOR DIRECTOR DIRECTOR She holds a Bachelor’s degree in Law and A graduate from St. Stephens College, A graduate from St. Xavier College, He holds a B. E
Slide 12: Board of Directors (Contd.)
11 Board of Directors (Contd.) Dr. Pradeep Jha Mr. Gokul M Jaykrishna Mr. Munjal M Jaykrishna Mr. Arjun G Jaykrishna DIRECTOR JOINT MANAGING DIRECTOR & CEO DIRECTOR EXECUTIVE DIRECTOR He is a renowned mathematician having A major in Finance with a minor in A Major in Finance and Marketing from A Bac
Slide 13: Business Canvas
Business 13 – Phthalocyanine Pigments – Our Mainstay 14 – Infrastructure Facility – Padra Unit Canvas 15 – Azo Pigments – Growth Driver 16 – Azo Pigments – Capex 17 – Infrastructure Facility – Dahej Unit
Slide 14: Phthalocyanine Pigments - Our Mainstay
13 Phthalocyanine Pigments - Our Mainstay At Asahi, we use our PRODUCT CATEGORY CHARACTERISTICS e • One of largest experience and expertise manufacturer of CPC Blue to manufacture crude globally Phthalocyanine pigments Backward integrated for Long lead time creates entry Beta and Alpha Blue barriers
Slide 15: Manufacturing facility - Padra Site
14 Manufacturing facility- Padra Site •Setup in 2004 Products manufactured: Phthalocyanine Pigments Waste and effluent treatment facilities available • CPC Blue crude • Beta Blue Situated on 98,000 sq. mt. plot • Alpha Blue • No forced pollution shutdown in the last decade Available area for further
Slide 16: Azo Pigments - Growth Driver
15 Azo Pigments - Growth Driver At Asahi Songwon has WHY AZO PIGMENTS CHINA +1 A STRONG TAILWIND entered into a joint venture The global organic and specialty pigment market is estimated with UK’s leading colour at $5 billion and Azo is the largest in volume. manufacture Tennants High demand that is
Slide 17: Azo Pigments - Capex
16 Azo Pigments - Capex A JV well positioned to capture huge market • Company has entered into JV Agreement with Tennants Textile Colors opportunity. Limited ( TTC ) of UK for putting up a state of the art Red & Yellow Azo pigment Plant with Capacity of 2400 TPA • Cost of project ~₹82 crores • Have
Slide 18: Manufacturing facility - Dahej Site
17 Manufacturing facility - Dahej Site Setup in 2020 Products manufactured: Azo Waste and effluent treatment Pigments facilities available Situated on 60,000 sq. mt. plot Phase 2 brownfield capex to begin after reaching 40% capacity utilization levels Capacities expandable upto - Available capacitie
Slide 19: Strategic Advantages and Investment Merits
Strategic 19 – Strategic Advantage 20 – Investment Merits Advantages and Investment Merits
Slide 20: Strategic Advantages
19 Strategic Advantages HIGH LEAD TIME REALIGNMENT OF GLOBAL STRATEGIC LOCATION LONG TERM SALES CONTRACT SUPPLY CHAIN • Customer approvals take long • The Chinese government's The new plant at Dahej brings Asahi • Majority pigments under long time. However, once the crackdown a few years ago in the
Slide 21: Investment Merits
20 Investment Merits New capex to put Strong Strong technical the company back Balance Sheet capabilities backed on growth path by technological tie up with industry leaders Consolidation the Sustainability Available land parcel global pigment focused at Saykha to provide industry to put the optiona
Slide 22: Financial Statement Summary
Financial 22 – Summary of P&L 23 – Summary of B/S Statement 24 – Summary of Cash Flow Statement Summary
Slide 23: Financial Highlights - Profit and Loss statement
22 Financial Highlights - Profit and Loss statement (₹ IN CRORE) PARTICULARS FY18 FY19 FY20 # FY21 # Revenue from Operations 293.83 293.62 283.64 283.08 Other Income 4.47 0.04 0.78 0.31 Total Income 298.30 293.66 284.42 283.39 Total Operating Expenses 255.59 254.09 249.24 233.57 EBITDA 38.25 39.53 3
Slide 24: Financial Highlights - Balance Sheet
23 Financial Highlights - Balance Sheet (₹ IN CRORE) PARTICULARS FY18 FY19 FY20 # FY21 # Total Equity (Networth) 181.64 193.59 215.66 274.31 Non Current Liabilities 39.02 38.49 25.59 24.31 Current Liabilities 98.83 76.98 36.56 90.85 Total Equity and Liability 319.49 309.06 277.81 389.47 Non Current
Slide 25: Financial Highlights - Cash Flow Statement
24 Financial Highlights -Cash Flow Statement (₹ IN CRORE) PARTICULARS FY18 FY19 FY20 # FY21 # Cash Flow from Operating Activities 5.91 27.06 56.97 8.05 Cash Flow from Investing Activities (43.83) (2.87) (15.76) (60.07) Cash Flow from Financing Activities 37.78 (24.20) (38.90) 49.98 Net increase/ (de
Slide 26: Quarterly Highlights
Quarterly 26 – Key Highlights 27 – Management Commentary Highlights 29 – Financial Statement Summary
Slide 27: Key Highlights
26 Key Highlights EXPORTS VS DOMESTIC REVENUE BREAK- CONSOLIDATED STANDALONE UP# (IN %) Revenues Revenues t94 .8 7 Cr. t93.9 5 cr. 55 o 52.3% e -2.2% o 50.9% e -3.0% 45 EBITDA EBITDA t1 0 .3 5 cr. t1 1.8 8 cr. Exports Domestic 0 -13.4 G 0.5 % % e -0.7 e -.07 % % PHTHALOCYANINE VS AZO PIGMENT REVENUE
Slide 28: Management Commentary
27 Management Commentary As the world continues to open up post robust vaccination drives across the globe, our business too has witnessed a considerable shift in its performance. At ASCL, we are confident that we are period, which indeed made us more headed in the right direction, and that valuable
Slide 29: Management Commentary
28 Management Commentary We are well on our way to becoming one of the largest pigment players by enhancing our product basket to offer a full suite of colour range in organic pigments. I am satisfied with the overall financial Our Yellow pigments are getting a great performance of the business. The
Slide 30: Profit and Loss statement (Standalone)
29 Financial Highlights - Profit and Loss statement (Standalone) (₹ IN CRORE) PARTICULARS Q2FY22 Q1FY22 Q2FY21 H1FY22 H1FY21 Revenue from Operations 93.95 96.88 62.28 190.82 120.11 Revenue from Operations Other Income 0.34 0.19 0.32 0.54 0.49 Q2FY22 Revenue from Operations at INR 93.95 cr. as agains
Slide 31: Profit and Loss statement (Consolidated)
30 Financial Highlights - Profit and Loss statement (Consolidated) (₹ IN CRORE) PARTICULARS Q2FY22 Q1FY22 Q2FY21 H1FY22 H1FY21 Revenue from Operations 94.87 96.96 62.28 191.83 120.11 Revenue from Operations Other Income 0.13 0.03 0.32 0.16 0.49 Q2FY22 Revenue from Operations at INR 94.87 cr. as agai
Slide 32: Balance Sheet (Standalone)
31 Financial Highlights - Balance Sheet (Standalone) (₹ IN CRORE) PARTICULARS H1FY22 FY21 Total Equity (Networth) 246.32 232.64 Non Current Liabilities 21.46 24.24 Current Liabilities 102.97 81.08 Total Equity and Liability 370.75 337.96 Non Current Assets 194.70 191.05 Current Assets 176.05 146.91
Slide 33: Balance Sheet (Consolidated)
32 Financial Highlights - Balance Sheet (Consolidated) (₹ IN CRORE) PARTICULARS H1FY22 FY21 Total Equity (Networth) 283.41 274.31 Non Current Liabilities 36.53 24.32 Current Liabilities 114.81 90.85 Total Equity and Liability 434.75 389.47 Non Current Assets 231.45 226.72 Current Assets 203.30 162.7
Slide 34: Cash Flow Statement (Standalone)
33 Financial Highlights -Cash Flow Statement (Standalone) (₹ IN CRORE) PARTICULARS H1FY22 FY21 Cash Flow from Operating Activities -4.77 4.86 Cash Flow from Investing Activities -5.14 -15.89 Cash Flow from Financing Activities 9.91 10.91 Net increase/ (decrease) in cash and cash equivalents 0.01 -0.
Slide 35: Cash Flow Statement (Consolidated)
34 Financial Highlights -Cash Flow Statement (Consolidated) (₹ IN CRORE) PARTICULARS H1FY22 FY21 Cash Flow from Operating Activities -19.45 8.05 Cash Flow from Investing Activities -7.04 -60.07 Cash Flow from Financing Activities 26.41 49.98 Net increase/ (decrease) in cash and cash equivalents -0.0
Slide 36: Disclaimer
35 Disclaimer This investor presentation has been prepared by Asahi Songwon Colors Limited and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied shoul
Slide 37: Thank You - Contact Us
Thank You Contact Us “Asahi House” Mr. Saji Joseph 13, Aaryans Corporate Park, cs@asahisongwon.com Near Shilaj Railway Crossing, Thaltej - Shilaj road, Thaltej, Ahmedabad - 380059. Mr. Diwakar Pingle Tel : 079 6832 5000 dpingle@christensenir.com Mr. Abhishek Mehra abhishek@theinvestmentlab.in