Fine Organic Industries Ltd. · NSE:FINEORG
Fine Organic Industries — Investor Presentation (August 2020)
36 slides from Fine Organic Industries's investor presentation, August 2020
Slide 1: Investor Presentation August-2020
Investor Presentation August-2020 November-2019
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fine Organic Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 3: The Fine Story of Success
é: FINE ORGANICS A Fine Additude fade ‘THE FINE STORY OF | SUCCESS |
Slide 4: Expertise in Oleo-chemistry Making Things Better
Expertise in Oleo-chemistry Making Things Better®️ An established and reputed A Technical Pinch of salt in the end We are omnipresent and form a part international player of oleochemical- product making a HUGE difference in of your life in every way based additives, rooted in India the product perfo
Slide 5: Why Fine additives are preferred?
Why Fine additives are preferred? Demand for oleochemical derived additives is increasing: ✓ As Green additives have been replacing potentially harmful synthetic chemicals in several industries like plastics, foods, cosmetics, rubber, coatings etc. ✓ In recent times, preference for consumer/environm
Slide 6: Over 100,000 TPA Legacy in Green Additives
Legacy in Green Additives Wide Product Range Diverse Customer Base Global Distribution Network Direct Customers Distributors Products 400+ 700+ 160+ In-house Capability Global Presence and engineering R&D and engineering R&D development, Process technology Largest producer of development, Process te
Slide 7: Touching Life in Different Ways
Touching Life in Different Ways High-Performance Environment Friendly Additives 7
Slide 8: 50 years of Journey
50 years of Journey 1970 1973 1988 1995 2002 2005 Established as ‘Fine Incorporated Oleofine Organics Incorporated the Organic Industries’, Commissioned first company under the Established R&D a partnership firm Set up second (India) Pvt. Ltd. for food additives name of Fine centre in Navi by Late S
Slide 9: A Fine Family
A Fine Family 700+ >11% >12% Employee >15% Employees Women completed 25 Comprise 1st & strength as on 2nd generation employees years of journey March 31, 2020 of employees with us Integrity is both a value as well as a character that is embedded in Creating and encouraging home-grown leadership with
Slide 10: Strength formulae for Success of Fine Organics
Strength formulae for Success of FINE ORGANICS 1 2 3 4 5 6 Strong R&D & Diversified Specialized Diversified Highly Dominant Innovation led Product Business Customer Experienced Position Business Portfolio Model Base Management Team TECHNOLOGY DEVELOPMENT RELENTLESS FOCUS INNOVATIVE PRODUCTS AND SOLU
Slide 11: 1. Strong R&D: Innovative Approach
1. Strong R&D : Innovative Approach Strong In-House New R&D Design and Product Capabilities Engineering Development ▪ Feed nutrition additives – derived from natural ▪ Product Development Lab & Product Application ▪ Company has in-house capabilities for plant vegetable oils Lab designing and enginee
Slide 12: Industry Standards and Regulatory Credentials
with Industry Standards and Regulatory Credentials ✓ Setting new benchmarks in quality and consistency ✓ High safety and productivity standards ✓ Products are appreciated by customers worldwide for their consistent quality and packaging standards Fine’s facilities are fully geared towards meeting gr
Slide 13: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Our product range for CosPha The diversity of oleochemistry has Pioneer in manufacturing & (Cosmetic and Pharmaceutical) Using our oleochemistry expertise, enabled us to develop a wide marketing of emulsifiers in India. applications serve as base
Slide 14: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Food Additives Polymer Additives Reduces friction between polymer products & other Product act as additives in maintaining the quality and surfaces they come in contact. Converts water droplets freshness of the food products, impart better produc
Slide 15: 3. Specialised Business Model: Entry Barriers
3. Specialised Business Model : Entry Barriers Lengthy & expensive product approval processes lead to high switching costs The additives have a direct impact on for customers. Due to this, customers human life as well as the environment, rely on established suppliers, as thus necessitating stringent
Slide 16: 4. Diversified Customer Base
4. Diversified Customer Base Warehouses in USA & Europe Products 400+ End Users 5,000+ Countries 70+ Direct Customers 700+ Distributors 160+ Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness All the da
Slide 17: 5. Highly Experienced Management Team
5. Highly Experienced Management Team Prakash Kamat – Executive Director and Chairman Prakash Apte – Independent Director ▪ Holds a M.Sc. Tech- Master of Science & Tech (Oils) from Institute of ▪ On the Board since Nov 2017. Holds a Bachelor’s degree in Chemical Technology (formerly UDCT) Mechanical
Slide 18: 6. Dominant Position
6. Dominant Position Pioneers and the largest manufacturers of oleochemical-based additives in India and a strong player globally Fully automated production facility multiple production sites One of the six global players in the specialty food emulsifiers One of the five global players in the polyme
Slide 19: COVID-19 Business Update
COVID-19 Business Update Fine’s Safe Chemistry & Philosophy supporting fight against COVID-19 Dividend continued as usual Financial assistance extended to employees Financial Support provided to Local community No Job losses & No Salary Reductions 19
Slide 20: Industry Potential: Multiple Growth Levers
INDUSTRY POTENTIAL: MULTIPLE GROWTH LEVERS 1. Polymer Additives 2. Food Additives 3. Other Specialty Additives
Slide 21: 1. Polymer Additives
1. Polymer Additives Global Market Size* Indian Market Size* In US $ Mn 30,000 CAGR 6.4% In INR Million 90,000 CAGR 9.2% 22,000 58,000 2016 2021E 2016 2021E End-user Segment Growth Country-wise Growth (From 2016 – 2021E) (From 2016 – 2021E) In US $ Mn In INR Million 7.0% 8.4% Asia Pacific Strong gro
Slide 22: 2. Food Additives
2. Food Additives Global Food Emulsifiers Market Size* Indian Food Emulsifiers Market Size* In US $ Mn 2495.1 144.8 1921.2 CAGR 5.4% In US $ Million CAGR 7.36% 101.5 2018E 2023E 2018E 2023E Region-wise Growth Consumer Food Industry (From 2018 – 2023E) (From 2018 – 2023E) In US $ Mn In US $ Million 6
Slide 23: 3. Other Specialty Additives: Key Drivers
3. Other Specialty Additives : Key Drivers Industry Cosmetics & Specialties Feed Nutrition Additives for Coatings Rubber Pharmaceuticals ▪ Dispersing agents ▪ Processing Aids ▪ Natural Antibiotics ▪ Emulsifiers & Emollients Key Additives & ▪ Emulsifiers ▪ Specialty Plasticizers ▪ Lube additives ▪ Nu
Slide 24: Financial Highlights
é: FINE ORGANICS A Fine Additude fade ‘Financial Highlights | ». He es sdannedat ai) — it ‘= : = ; : “3 — >
Slide 25: Q1 FY21 Standalone Performance Highlights
Q1 FY21 Standalone Performance Highlights Rs in Crores Revenues EBITDA PAT -3% -11% -23% 244 58 37 236 52 29 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 25
Slide 26: Q1 FY21 Standalone Operating Performance
Q1 FY21 Standalone Operating Performance Rs in Crores Revenues EBITDA & Margins 18.6% 22.5% 18.9% 19.3% 21.3% 23.0% 21.9% +11% 1,044 1,026 856 777 55% +16% 222 236 651 55% 608 58% 164 62% 146 147 Exports 59% 54% 113 236 42% 45% 45% 52 Domestic 41% 46% 38% 62% 38% FY15 FY16 FY17 FY18 FY19 FY20 Q1 FY2
Slide 27: Disciplined Use of Capital (Standalone)
Disciplined Use of Capital (Standalone) Net Debt to Equity Fixed Asset Turnover 0.48x 9.44x 7.77x 6.56x 0.25x 5.22x Net 4.92x Cash 0.11x Position 4.13x 0.08x 3.10x 0.05x 2.79x 3.10x 3.26x 3.71x 2.26x -0.13 FY 15 FY 16 FY 17 FY 18 FY19 FY20* FY15 FY16 FY17 FY18 FY19 FY20 Net Debt = Total Long term de
Slide 28: Capital delivering Consistent Performance (Standalone)
Capital delivering Consistent Performance (Standalone) Return on Capital Employed Return on Net Worth 32.64% 32.77% 32.17% 30.31% 31.15% 28.86% 26.31% 26.38% 26.70% 24.81% 25.37% 23.88% FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 Return on Capital Employed = EBIT (excluding Other Inc
Slide 29: Q1 FY21 Standalone Profit & Loss Statement
Q1 FY21 Standalone Profit & Loss Statement Particulars (Rs in Crs) Q1FY21 Q1FY20 Y-o-Y Q4FY20 Q-o-Q FY20 Revenue from Operations 235.6 243.5 -3.24% 242.4 -2.81% 1,026.2 Cost of Raw Material Consumed 144.0 146.7 143.0 606.4 Gross Profit 91.6 96.8 -5.37% 99.4 -7.85% 419.9 Gross Profit Margin 38.88% 39
Slide 30: Q1 FY21 Consolidated Profit & Loss Statement
Q1 FY21 Consolidated Profit & Loss Statement Particulars (Rs in Crs) Q1FY21 Q1FY20 Y-o-Y Q4FY20 Q-o-Q FY20 Revenue from Operations 240.0 250.6 -4.23% 247.3 -2.95% 1,038.1 Cost of Raw Material Consumed 146.4 150.0 144.8 609.3 Gross Profit 93.6 100.6 -6.96% 102.5 -8.68% 428.8 Gross Profit Margin 39.00
Slide 31: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs in Crs) Mar-20 Mar-19 Equity & Liabilities (Rs in Crs) Mar-20 Mar-19 Non-current assets Equity Property, plant and equipment 215.9 77.8 Equity share capital 15.3 15.3 Capital work-in-progress 5.8 106.3 Other equity 615.4 493.1 Intangible assets 0.9 0.3 Financial a
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs in Crs) Mar-20 Mar-19 Equity & Liabilities (Rs in Crs) Mar-20 Mar-19 Non-current assets Equity Property, plant and equipment 215.9 77.8 Equity share capital 15.3 15.3 Capital work-in-progress 5.8 106.3 Other equity 603.6 484.9 Intangible assets 0.9 0.3 Non-Contr
Slide 33: Q1 FY21 Consolidated Operating Performance
Q1 FY21 Consolidated Operating Performance Rs in Crores Revenues EBITDA & Margins 18.3% 22.6% 18.6% 18.6% 21.7% 23.2% 21.9% +11% 1,060 1,038 856 778 +17% 230 241 607 652 145 145 158 111 240 53 FY 15 FY 16 FY 17 FY 18 FY 19 FY20 Q1 FY21 FY 15 FY 16 FY 17 FY 18 FY 19 FY20 Q1 FY21 PAT & Margins Cash PA
Slide 34: Disciplined Use of Capital (Consolidated)
Disciplined Use of Capital (Consolidated) Net Debt to Equity Fixed Asset Turnover 0.48x 9.58 x 7.74 x 0.24x 6.57x Net 5.23x 4.91x Cash 0.10x Position 0.07x 4.18x 0.04x 3.27 x 3.77 x 3.09x 2.79x 3.11x 2.29x -0.14x FY 15 FY 16 FY 17 FY 18 FY 19 FY20* FY15 FY16 FY17 FY18 FY19 FY20 Net Debt = Total Long
Slide 35: Capital delivering Consistent Performance (Consolidated)
Capital delivering Consistent Performance (Consolidated) Return on Capital Employed Return on Net Worth 32.75% 32.88% 33.85% 30.46% 30.80% 27.24% 27.45% 28.51% 27.67% 25.67% 23.65% 24.06% FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 Return on Capital Employed = EBIT (excluding Other I
Slide 36: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : CIN: L24119MH2002PLC136003 CIN: U74140MH2010PTC204285 Ms. Sonali Bhadani Ms. Neha Shroff Vice President - Finance +91 773807 3466 www.fineorganics.com Email: neha.shroff@sgapl.net www.sgapl.net 36
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