Rain Industries Limited · NSE:RAIN
Rain Industries — Investor Presentation (September 2014)
27 slides from Rain Industries's investor presentation, September 2014
Slide 1: Rain Industries Limited Corporate Presentation – September 2014
Rain Industries Limited (Formerly Rain Commodities Limited) Corporate Presentation – September 2014
Slide 2: Rain Group Corporate and Business structure
Rain Group Corporate and Business structure
Slide 3: Rain Group – Business Verticals
Rain Group – Business Verticals Rain Group • Manufacturing and sale of CPC, CTP, Chemical • Distillation and sale of primary Carbon Naphthalene, Co-generation of energy Products Products coal tar distillates into chemical and trading of GPC. products such as: • Activities across the World with thirt
Slide 4: Rain Group – Key Milestones
Rain Group – Key Mile stones • Merger of RCL with Rain Entry into Chinese CPC Rain Calcining Ltd. (RCL) Commodities Ltd. Markets, by acquiring a begins operations in Setting up of Group’s fifth • Acquisition of CII small CPC plant (of 20,000 Visakhapatnam, India with Waste-heat recovery (the 2nd lar
Slide 5: Diversified Geographical Profile
Diversified Geographical Profile Europe • 3 Carbon Facilities • 4th Carbon Facility in Russia is under construction • 3 Chemical Facilities North America • 7 Carbon Facilities (Including 3 River Terminals Asia and 4 Waste-heat recovery Africa facilities) • 1 Carbon Facility (including 1 • 1 Carbon F
Slide 6: Industry Developments
Industry Developments RIO
Slide 7: Overview of Calcining Industry
Overview of Calcining Industry Oil Refining Industry Coke Calciners Aluminum Industry Calcined Petroleum Coke Captured through calcining process CPC <10% of Production Cost Green Petroleum Coke - A by-product No economically viable substitute for Critical in the value chain of Green Coke CPC in Alum
Slide 8: Overview of Coal Tar Industry
Overview of Coal Tar Industry Steel Industry Coal Tar Distillers Aluminum Industry Pitch ~48% Aromatic Oils ~40% Naphthalene Oil ~12% Pitch <5% of Production Cost Coal Tar - A by-product No economically viable substitute for Critical in the value chain of coal tar Coke production related to steel pi
Slide 9: Overview of Chemical Products
Overview of Chemical Products Chemicals Superplasticizer Resins & Modifiers Aromatic Chemicals Chemical Trading Key Raw Materials Naphthalene oil Carboindene Carbolic oil Crude benzene/benzene C9 feedstock Anthracene oil Products Superplasticizer Resins Phenol Crude benzene/benzene chemicals Modifie
Slide 10: Aluminum Industry Outlook
Aluminum Industry Outlook Global Aluminum Consumption Global Aluminum Production (Mt in millions) (Mt in millions) CAGR: ~6% CAGR: +5% 60.0 63.1 61.9 56.8 57.0 59.3 53.7 53.9 50.1 48.0 50.6 45.0 47.3 45.7 2011 2012 2013 2014F 2015F 2016F 2017F 2011 2012 2013 2014F 2015F 2016F 2017F CPC Outlook - % o
Slide 11: Aluminum Industry Outlook (Cont.)
Aluminum Industry Outlook (Cont.) Aluminum Price Forecast (US$ per MT) Total metal stocks and days of inventory 2,500 14,000 110 99 95 96 92 100 2,300 88 12,000 90 79 2,100 80 10,000 13,483 13,660 68 1,900 12,773 13,228 70 12,879 11,694 11,752 60 1,700 8,000 50 1,500 6,000 40 2009 2010 2011 2012 201
Slide 12: Cement Industry Outlook
Cement Industry Outlook Cement Demand Growth – All India % 11 8 8 8 8 8 7 Cement Capacity Utilizations – All India % 4 3 85 81 77 FY09 FY10 FY11 FY12 FY13 FY14F FY15F FY16F FY17F 74 73 73 74 71 72 Capacity additions – All India MTs 52 FY09 FY10 FY11 FY12 FY13 FY14F FY15F FY16F FY17F 33 30 24 21 20 1
Slide 13: Energy Business Outlook
Energy Business Outlook Rain Group believes co-generation of energy (equivalent to ~ 125 MW of electricity) from its Calciners as one of the key competitive advantage. The Group has invested in energy generation facilities at its Visakhapatnam, India facility Chalmette, Gramercy, Norco and Lake Char
Slide 14: Rain Group – Financial Snapshot
Rain Group – Financial Snapshot
Slide 15: Consolidated Financial Performance
Consolidated Financial Performance 30,898 30,843 4,145 3,792 29,066 3,235 Q2 2014 Q1 2014 Q2 2013 Revenue EBITDA (INR Millions) (INR Millions) Q2 2014 Q1 2014 Q2 2013 PAT PAT Adjusted Earnings Per EBITDA Margin (INR (INR Millions) Millions) Share (%) 1,368 (INR) 1,235 14% 12% 10% 501 Q2 2014 Q1 2014
Slide 16: Business Concentration
Business Concentration Revenue Breakdown Geographical spread of Revenue Carbon 72% Chemical 21% Cement 7% EBITDA Breakdown Carbon 80% Chemical 21% Cement H1 2014 -1% CY 2013 16
Slide 17: Rain Group – Carbon Business Snap Shot
Rain Group – Carbon Business Snap Shot 22,211 22,383 20,942 875 785 827 Revenue Volume Q2 2014 Q1 2014 Q2 2013 (INR Millions) (‘000 Tons) Q2 2014 Q1 2014 Q2 2013 PAT Earnings Per (INR Millions) EBITDA Share EBITDA Margin (INR Millions) (INR) (%) 3,283 2,898 2,681 16% 13% 12% Q2 2014 Q1 2014 Q2 2013
Slide 18: Rain Group – Chemical Business Snap Shot
Rain Group – Chemical Business Snap Shot 75 78 78 6,504 6,538 5,872 Revenue Volume Q2 2014 Q1 2014 Q2 2013 (INR Millions) (‘000 Tons) Q2 2014 Q1 2014 Q2 2013 PAT Earnings Per (INR Millions) EBITDA Share EBITDA Margin (INR Millions) (INR) 874 (%) 13% 631 669 11% 10% Q2 2014 Q1 2014 Q2 2013 Q2 2014 Q1
Slide 19: Rain Group – Cement Business Snap Shot
Rain Group – Cement Business Snap Shot 2,252 595 2,183 540 577 1,922 Revenue Volume Q2 2014 Q1 2014 Q2 2013 (INR Millions) (‘000 Tons) Q2 2014 Q1 2014 Q2 2013 PAT Earnings Per (INR Millions) EBITDA Share EBITDA Per Ton (INR Millions) (INR) (INR) 193 334 34 20 (77) (142) Q2 2014 Q1 2014 Q2 2013 Q2 20
Slide 20: Consolidated Financial Leverage
Consolidated Financial Leverage Equity Net Debt in INR and US$ 32,938 32,233 1,203 1,125 US$ Millions 25,517 INR Millions INR Millions 21,209 738 729 13,933 578 615 536 74,459 12,104 413 67,622 8,398 29,098 35,333 28,574 2,905 26,964 27,543 22,611 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 201
Slide 21: Term Debt Profile
Term Debt Profile As at June 30, 2014 Type of (US$ Millions) Amount Remarks interest Senior Secured Notes/Bonds 380 Fixed rate Bullet repayment in 2018 US$ Millions Senior Secured Notes/Bonds 687 Fixed rate Bullet repayment in 2021. Debt as at June 30, 2014 1,244 Senior Bank Debt 94 Floating rate In
Slide 22: Key Strengths
Key Strengths One of the leading Global Market Producer of Presence with Carbon and Chemical World-class Asset Base products Experienced Diversified and Proven Product Portfolio Management Team Rain Group Long Term Relationship Positioned to benefit from with high quality Suppliers long-term demand
Slide 23: Key Areas of Focus
Key Areas of Focus De-leveraging Balance Sheet Timely completion of Expansion Projects [PA expansion in Belgium and Coal Tar Distillation project in Russia] Expanding R&D initiatives to create more environment friendly Carbon Successful implementation of these initiatives would substantially improve
Slide 24: Annexure
Annexure
Slide 25: Payout Ratio
Payout Ratio Reported PAT Buy Back Dividend INR Millions 8,000 2,000 Cumulative Number of Shares Bought Back: 23.83 Millions (of Rs. 2 each) Cumulative Amount Spent for Buy-Back: Rs. 795 Million 1,800 7,000 1,600 6,000 1,400 5,000 1,200 4,000 1,000 6,641 760 726 800 3,000 482 600 4,438 440 4,577 2,0
Slide 26: Consolidated Key Performance Indicators
Consolidated Key Performance Indicators INR Millions Q2 2014 Q1 2014 CY 2013 CY 2012 CY 2011 CY 2010 CY 2009 CY 2008 Revenue from operations (1) 31,548 31,388 117,443 53,615 56,395 37,857 36,494 44,615 Operating Profit (2) 3,792 3,235 14,978 11,090 13,873 7,559 9,063 11,723 Reported PAT 1,235 501 3,
Slide 27: Contact details
In case of any further details please contact: Y. Ravi Kiran Sr. Manager - Corporate Finance Rain Commodities Limited Phone: +91 40 4040 1234 Direct: +91 40 4040 1252 Email: ravikiran@raincii.com www.raincii.com www.Rütgers-group.com/en www.rain-industries.com/ 27
Rain Industries — Investor Presentation (September 2014) on 6ix