Slide 1: BASF India Limited Analysts' Meeting
BASF India Limited Analysts’ Meeting Narendranath Baliga Chief Financial Officer, BASF India Ltd. August 2, 2018
Slide 2: Cautionary note
Cautionary note Forward looking statements Only matters in the public domain can be subject matter of discussion in this meeting As a matter of policy, we do not provide any prognosis about the future business situation We do not comment or give guidance on future results or business outlook
Slide 3: Sustaining Profitable Growth
SUSTAINING PROFITABLE GROWTH
Slide 4: Global and India macro economic drivers
Global and India macro economic drivers World growth India GDP grew by GST & Demonetization settled – Most sectors strengthened to 3.8% 6.7% recovered Climbing crude oil Falling value of RERA – game changer prices Rupee for real estate Rising inflationary pressures and liquidity are concerns
Slide 5: Demand varied in our focus industries
Demand varied in our focus industries FMCG CONSTRUCTION Saw 13% growth Muted growth at 6% Revival in consumption, Demonetization, RERA backed by rural growth impact AGRICULTURE AUTOMOBILE Moderate growth at 3 % Four wheelers grew by 7% Two wheelers by 16% Erratic monsoon, higher base from last year
Slide 6: Our segment performance
Our segment performance Nutrition Construction Packaging Agriculture & Print Home care Automotive & Plastics Transportation & Rubber Paints Furniture Pharma & Coatings & Wood Paper Footwear Chemicals & Pulp PERFORMANCE FUNCTIONAL AGRICULTURAL CHEMICALS PRODUCTS MATERIALS SOLUTIONS Our solutions can
Slide 7: Optimizing our business portfolio
Optimizing our business portfolio Divestment and Acquisitions Completed divestment of Transfer of paper wet-end Global acquisition of Leather Chemicals and water chemicals selected assets from business to Stahl Group business to Solenis in India Bayer CropScience initiated
Slide 8: Improved Operational Efficiency and Resource Optimisation
IMPROVED OPERATIONAL EFFICIENCY AND RESOURCE OPTIMISATION
Slide 9: Make in India
#3 Make in India Top updates from key sites DAHEJ ANKLESHWAR Crossed 5 million safe manhours Accident-free year for site and plant Won 1st regional safety award for certified with ISO 9000 2015 Dispersions and Resins team in Asia Introduced new product - Lupasol® for Pacific paper imaging market
Slide 10: Make in India
#3 Make in India Top updates from key sites MANGALORE THANE 2nd Best Safe Industrial Boiler Award 48000 litres of treated water recycled from DISH every day. Certified for ISO 9000 (2015) New warehouse for Coatings business Conducted awareness program for fire and plant certified for ISO 50001 Energ
Slide 11: Creating Growth Engines – New Launches, Customer Centricity and Digitalization
CREATING GROWTH ENGINES – NEW LAUNCHES, CUSTOMER CENTRICITY AND DIGITALIZATION
Slide 12: Innovation: customized solutions for the market
Innovation: customized solutions for the market Dispersions & Construction Chemicals Crop Protection Health and Nutrition Resins Launched MasterSeal 7000 New products for rice : Launched Acronal S728 for Algal DHA for infant nutrition CCR for extreme wastewater Basagran, Adexar, Seltima next-generat
Slide 13: Innovation: enhancing outreach through digitalization
Innovation: enhancing outreach through digitalization YouTube campaigns for Glysantin, a high- Corporate advertising via Enhanced digital outreach Master EmacoSBR2 & Master performance engine coolant Scroll, Future Perfect & for Crop Protection Pel 777 now on Amazon social media
Slide 14: Track and Trace
#2 Track and Trace Supply Chain Portal (Transport Tracker) Powered by GPS
Slide 15: Beyond the Numbers
BEYOND THE . NUMBERS
Slide 16: Supporting communities
Supporting communities Focus on Water, Sanitation and Hygiene (WASH) Menstrual hygiene WASH awareness program at Dahej program at Mangalore New Sanrakshan Stationery kit kits launched in distribution at presence of Govt. Ankleshwar
Slide 17: Performance review FY 2017-2018
Performance review FY 2017-2018
Slide 18: The year gone by
The year gone by….. Working capital cycle Improving volumes, improved, resource optimisation borrowings reduced Business scenario stabilised Business portfolio restructuring post GST - Leather carve-out (Sept 2017) - Opening credit utilisation - Cessation of TPU* manufacturing - Warehouse consolidat
Slide 19: FY 2017-18 at a glance
FY 2017-18 at a glance Rs Crores Business Highlights Capital management Sales* +10%; Volumes +6% Borrowings reduced by ~ Rs 400 Crs Driven by Agro & Dahej BU sales Debt-Equity ratio 0.6 (PY 1.2) Dahej Sales: Rs.1,331 Crs (PY Rs.1,014 Crs) BIL capacity utilisation @73% (PY 67%) Exceptional Items Part
Slide 20: Segmental analysis FY 31st March 2018
Segmental analysis FY 31st March 2018 Segment Revenue* (Rs. in Crores) Agricultural Solutions 864 (15%) Performance Chemicals Performance Functional Functional Agricultural Products 2,235 (39%) Products Materials Materials & & Solutions Chemicals Solutions 320 (6%) Solutions Petrochemicals Dispersio
Slide 21: Segmental analysis FY 31st March 2018
Segmental analysis FY 31st March 2018 Agricultural Solutions Revenue* 26% Revenue* EBIT bEI 52% Erratic monsoon impacted Soybean market Strategic efforts on crop diversification Sales from new product launches (rice & corn products such as Adexar, Seltima, Basagran, Tynzer etc.) Result Improved prof
Slide 22: Segmental analysis FY ended 31st March 2018
Segmental analysis FY ended 31st March 2018 Functional Materials & Solutions Revenue* 10% Revenue* EBIT bEI >100% Performance Materials: Growth in passenger vehicle and consumer industry business Coatings: Effect of demonetisation and GST in automotive & two wheeler sector Constructions: Marginal im
Slide 23: Financial Summary FY ended 31st March 2018
Financial Summary FY ended 31st March 2018 Rs Crores Apr to Mar 18 Apr to Mar 17 Description Total Total ∆% Income (as per publication) 5,746 5,531 4% Revenue incl. other income * (adjusted for GST/ Excise) 5,606 5,090 10% Material cost * 4,055 3,693 10% % to Net sales 72.3% 72.5% Personnel cost & O
Slide 24: Key Balance Sheet No's & Ratios
Key Balance Sheet No’s & Ratios Rs Crores March 2018 March 2017 FY 17-18 FY 16-17 Equity 1,344 1,102 Debt Equity 0.6 1.2 (times) Borrowings 868 1,275 (LT & ST) Equity vs total 34.9% 28.4% assets (%) Trade 1,092 1,069 Receivables Current ratio 1.2 1.3 (times) Inventory 1,019 920 EBITbEI to 3.8% 2.2%
Slide 25: Performance review Q1 June 2018
Performance review Q1 June 2018
Slide 26: Quarter at a glance
Quarter at a glance ‘Normal’ monsoon Improvement in Dahej utilization Volatility in Crude MDI Optimisation of borrowings prices
Slide 27: Financial Summary Quarter ended June 30, 2018
Financial Summary Rs Crores Quarter ended June 30, 2018 Description Apr-Jun18 Apr-Jun17 ∆% Income (as per publication) 1,629 1,650 -1% Revenue incl other income * 1,629 1,510 8% Material cost * 1,218 1,119 9% % to Net sales 74.8% 74.1% Personnel cost & Operating exp. 315 321 -2% EBITDA 96 70 37% Dep
Slide 28: Our priorities for FY19
Our priorities for FY19 Continue to drive Improve Leverage Drive customer profitable growth efficiency and digitalization centricity and optimize working innovate to meet capital market demands
Slide 29: Thank you for your trust and continued support!
Thank you for your trust and Thank you for your trust continued support! and continued support!
Slide 30: BASF - We create chemistry
O- BASF We create chemistry