Carborundum Universal Limited · NSE:CARBORUNIV
Carborundum Universal — Shareholder Meeting (August 2023)
54 slides from Carborundum Universal's shareholder meeting presentation, Aug 2, 2023
Slide 1: PROGRESS - 69th Annual General Meeting
MAKING MATERIAL Carborundum Universal Limited PROGRESS 69th Annual General Meeting Wednesday, 02nd August 2023
Slide 2: Disclaimer
Disclaimer This presentation contains Statements relating to future business developments and economic performance that could constitute ‘forward looking statements.’ While these forward-looking statements represent the Company’s judgements and future expectations, a number of factors could cause ac
Slide 3: Murugappa Group – At a Glance
Murugappa Group – At a Glance A legacy of 123 years… 3 29 10 99 14 18 Sectors Businesses Listed Companies Mfg. Locations - India Mfg. Locations - Overseas Mktg. Bases INR 742 bn (USD 9.2 bn) INR 2944 bn (USD 36.6 bn) 73000+ Turnover (FY22-23) Market Capitalization (as on 30th June 2023) Employees 3
Slide 4: Murugappa Group – Companies
Murugappa Group – Companies Listed Unlisted 4
Slide 5: CUMI – Board of Directors
CUMI – Board of Directors M M Murugappan Chairman Expertise in Chemical and Environmental Science Mr Sanjay Mr Aroon Raman Mr Ananthaseshan Mr P Raghavan Mr Sujjain Mr Sridharan Rangarajan Ms Soundra Kumar Jayarathnavelu Material Scientist and Managing Director Former Ambassador to Talwar Director –
Slide 6: India Leadership
India Leadership Mr Ninad Gadgil Mr M V Sivakumaran Mr Raghavendra Pai Mr Prathap Kumar Head - Abrasives Head – Electrominerals Head - Refractories Head - Ceramics Mr Padmanabhan Mr Bhaskaran Kannun Ms Rekha Surendran Mr Srikanth C CFO HR Head Legal and Secretarial Wendt India Mr Nirav Parikh Mr Sam
Slide 7: International Leadership
International Leadership Mr Trevor Allen Mr Sergey Kostrov Mr Gerrit van Wyk Mr Sergey Petrosyan CUMI Australia VAW, Russia FZL, South Africa CUMI International Ltd Mr Jürgen Neubert Mr Ernst Hanning Sager Mr Ralf Blechschmidt CUMI Awuko & Rhodius Rhodius CUMI Awuko Mr Nitin Bichkar Ms Beth Gardner
Slide 8: We Engineer Materials Science Solutions For An Enduring Planet
We Engineer Materials Science Solutions For An Enduring Planet Oxide Family Aluminas | Silica | Zirconia Surface Engineering Carbides and Nitrides Family Silicon Carbide | Boron Carbide | Boron Nitride | Diamond Organics Phenolics | Epoxies | Alkyds | Rubber Hardness or scratchability | High Melting
Slide 9: Business Portfolio – Arranged by Material Physics
Business Portfolio – Arranged by Material Physics Abrasives Electro-Minerals Hardness or Scratchability Corrosion Resistance, Friction, Hardness, High Melting Point, Impact Resistance, Insulation, Refractoriness India India America Ceramics Advanced Materials Corrosion Resistance, Dielectric, Anti-B
Slide 10: CUMI - Market Position Cemented Over Time
CUMI - Market Position Cemented Over Time Purpose Making a Material Difference We will be a globally admired company driving innovations in Materials Science towards sustained value Vision creation for people and our planet Mission We design, co-create and deliver sustainable solutions to make a sig
Slide 11: CUMI - Global Presence
CUMI - Global Presence Russia Standalone Operations Volzhsky Abrasives Works ( 98.07% ) Sterling Abrasives Limited ( 60% ) USA India SEDCO ( 84.7% ) CUMI America Inc. ( 100% ) Net Access India Limited ( 100% ) Germany Wendt India Ltd. ( 37.5% ) Rhodius Abrasives ( 100% ) MMTCL (49%) AWUKO Abrasives
Slide 12: Financial Progress - FY23 Performance
Financial Progress - FY23 Performance 15
Slide 13: The Year that Was – FY23
The Year that Was – FY 23 Stressed high levels of public and private debt, threatening the financial system Pandemic-induced Shockwaves continue to emanate from the Currency Higher Interest output contraction Russia-Ukraine Conflict Depreciation Rates Asset Prices in broad, synchronous decline Accel
Slide 14: Consolidated Yearly Performance Trends
Consolidated Yearly Performance Trends Values in INR Million Values in USD Million 30% 40% Net Sales CAGR : 13 % Net Sales CAGR : 10 % 572 46012 After acquiring Rhodius, Awuko & Pluss 441 32896 362 380 363 351 26556 25694 26041 293 310 23305 19168 20800 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY23
Slide 15: Standalone Yearly Performance Trends
Standalone Yearly Performance Trends Values in INR Million Values in USD Million 5% 13% Net Sales CAGR : 10 % Net Sales CAGR : 7 % 294 308 24732 21916 241 251 229 222 17519 195 206 15514 16231 16494 12735 13828 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY23 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22
Slide 16: Segmental Performance for FY23 - Consolidated
Segmental Performance for FY23 - Consolidated Sales* PBT PAT Financial Year 22-23 ₹ 4601 Cr ₹ 543 Cr ₹ 414 Cr + 40% YoY + 19% YoY + 24% YoY Abrasives** Electro-minerals** Ceramics** Sales EBIT Sales EBIT Sales EBIT ₹ 2035 Cr ₹ 105 Cr ₹ 1634 Cr ₹ 275 Cr ₹₹1027 243 Cr Cr ₹₹251 58 Cr Cr + 59 % YoY - 33
Slide 17: Segmental Performance for FY23 - Standalone
Segmental Performance for FY23 - Standalone Sales* PBT PAT Financial Year 22-23 ₹ 2473 Cr ₹ 407 Cr ₹ 331 Cr + 13% YoY + 18% YoY + 30% YoY Abrasives** Electro-minerals** Ceramics** Sales EBIT Sales EBIT Sales EBIT ₹ 1107 Cr ₹ 151 Cr ₹ 702 Cr ₹ 99 Cr ₹ 834 243 Cr ₹₹205 58 Cr Cr + 5 % YoY - 7% YoY + 13
Slide 18: Reinvesting Capital with Accountability
Reinvesting Capital with Accountability At Consolidated levels ROCE%1 Debt-Equity (times)2 21% 20% 20% 20% A1+ 19% 0.09 0.08 0.06 0.03 0.02 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Credit Rating for Short-Term Borrowings by CRISIL Dividend Payout%3 Reinvestment Ratio4 AA+ 71% 35.80% 32.50%
Slide 19: Unbroken Dividend Record Since Inception
Unbroken Dividend Record Since Inception CUMI Standalone 3309 PAT (INR Mn) Dividend Payout 2545 1913 1840 1661 32% 34% 36% 34% 31% 26% 33% FY19 FY20 FY21 FY22 FY23 Rs per Share Interim 1.50 2.75 1.50 1.50 1.50 Final 1.25 - 1.50 2.00 2.00 Total Dividend 2.75 2.75 3.00 3.50 3.50 Final Dividend Dividen
Slide 20: Legacy of Value Creation
Legacy of Value Creation INR 187 bn (USD 2.3 bn) Market Capitalization (as on 31st March 2023) Mar 31, 2023 985.70 (25.10%) Apr 01, 2022 787.90 Apr 01, 2022 BSE 500 24003.84 Mar 31, 2023 22822.89 (-4.94%) Total Shareholder Returns over period depicted above*: 25.55% *TSR = (Gains in share price + di
Slide 21: Intellectual Property Rights (IPR) for FY23
Intellectual Property Rights (IPR) for FY23 IPR Filed Patent Trademark Design 6 50 0 IPR Granted Patent Trademark Design 10 25 8 27
Slide 22: Progress on Sustainability
Progress on Sustainability 28
Slide 23: Sustainability vision for 2025
Sustainability vision for 2025 aims to reduce our environmental footprint significantly FY23 : 0.053 FY23 : 15 FY23 : 8.2 FY23 : 0.56 Energy intensity per rupee of turnover Water intensity per rupee of turnover Emission intensity per rupee Waste intensity per rupee (TJ/turnover in ₹ Million) (KL/₹ m
Slide 24: Installed Capacity and Clean Energy Savings
Installed Equivalent Consumption of co2 Trees Capacity Energy from Cleaner Source Eliminated Saved ~1.5 MW ~ Rs.1.3 Cr 998 Tons 17,329
Slide 25: Progress on Building Capabilities
Progress on Building Capabilities 31
Slide 26: Brown Fused Alumina furnace expansion
Sustainability vision for 2025 aims to reduce our environmental footprint significantly Brown Fused Alumina furnace expansion and additional crude handling capabilities 32 32
Slide 27: Microgrits line at VAW Russia
Sustainability vision for 2025 aims to reduce our environmental footprint significantly Microgrits line at VAW Russia 33 33
Slide 28: State-of-the-art hydraulic press for ceramic parts
Sustainability vision for 2025 aims to reduce our environmental footprint significantly State-of-the-art hydraulic press enabling near-net forming of ceramic parts 34 34
Slide 29: AS9000 certified composites lab for aerospace
Sustainability vision for 2025 aims to reduce our environmental footprint significantly The AS9000 certified lab for manufacturing of composites for aerospace components 35 35
Slide 30: Kiln commissioned at VAW Russia
Sustainability vision for 2025 aims to reduce our environmental footprint significantly Kiln commisioned at VAW Russia to increase the Nitride Bonded Silicon Carbide capacities 36 36
Slide 31: Retail outlet of VAW in Volzhsky
Sustainability vision for 2025 aims to reduce our environmental footprint significantly Retail outlet of VAW in Volzhsky 37 37
Slide 32: Participation in domestic & international fairs
Sustainability vision for 2025 aims to reduce our environmental footprint significantly Participation in domestic & International fairs/exhibitions 38 38
Slide 33: Participation in domestic & international fairs
Sustainability vision for 2025 aims to reduce our environmental footprint significantly Participation in domestic & International fairs/exhibitions 39 39
Slide 34: Progress on Product Innovation
Progress on Product Innovation 40
Slide 35: Product Innovations
Product Innovations Track grinding wheels for CV joints Bevel Gear Grinding Wheels are made Stearated coated discs on fibre reinforced are made with high-performance with micro-crystalline grains with paper with special anti-loading properties micro-crystalline grains with induced excellent cutting
Slide 36: Product Innovations
Product Innovations 3-Layer (Cr-Cu-Au) metalized Alumina substrate for flight use made with magnetron sputtering process qualified by Space Application Centre Engineered Carbon Fibre Composite (SAC) – Indian Space Research parts for aerospace and defence Organisation (ISRO) Tundish made of high-puri
Slide 37: Progress on Advanced Materials
Progress on Advanced Materials 43
Slide 38: Graphene for composites, coatings and energy
Sustainability vision for 2025 aims to reduce our environmental footprint significantly Graphene for use in specific areas such as composites, coatings and energy 44 44
Slide 39: HPSiC Powder for power electronics
Sustainability vision for 2025 aims to reduce our environmental footprint significantly HPSiC Powder for silicon carbide single crystals for use in power electronics 45 45
Slide 40: Progress on Corporate Social Responsibility
Progress on Corporate Social Responsibility 46
Slide 41: Corporate Social Responsibility
Corporate Social Responsibility Education Community Health CUMI supports Vellayan Chettiar School, Chennai and Murugappa Polytechnic, Chennai through AMM Foundation. Educates and trains approximately 8000 students Blood donation camps and health camps CUMI Centre for Skill Development across locatio
Slide 42: Progress on Awards & Recognition
Progress on Awards & Recognition 48
Slide 43: MMA Award for Managerial Excellence 2022
VAW - Annual Volgograd Regional Contest “Best Managers and Organizations in 2021“ MMA (Madras Management Association) Award for Managerial Excellence 2022 49 49
Slide 44: CII HR excellence certification 2022-2023
VAW - Annual Volgograd Regional Contest “Best Managers and Organizations in 2021“ ‘Significant Achievement in HR excellence’ certification from CII for 2022-2023 50 50
Slide 45: Industry Excellence award 2022
VAW - Annual Volgograd Regional Contest “Best Managers and Organizations in 2021“ Industry Excellence award 2022 from Dr. Ponmudi, Minister of Education, Tamilnadu 51 51
Slide 46: Golden Award for National Energy Management 2021
VAW - Annual Volgograd Regional Contest “Best Managers and Organizations in 2021“ Golden Award for “National Energy Management for 2021” in Minerals Category by SEEM 52 52
Slide 47: Kerala State Energy Conservation Award 2022
VAW - Annual Volgograd Regional Contest “Best Managers and Organizations in 2021“ Kerala State Energy Conservation Award 2022 from Honorable CM of Kerala , Shri Pinarayi Vijayan 53 53
Slide 48: VAW Volgograd Regional Contest certificates
VAW - Annual Volgograd Regional Contest “Best Managers and Organizations in 2021“ (Left) Ms. Romanenko Elena – Head of ISO certification and documentation posing with the Certificate (Right) Foreign Economic Activity team posing with the diploma headed by Ms. Tolstaya Svetlana (Diploma award is sign
Slide 49: Corporate Social Responsibility
Corporate Social Responsibility 55
Slide 50: Best Performance Award at Bosch Supplier Meet
VAW - Annual Volgograd Regional Contest “Best Managers and Organizations in 2021“ Best Performance Award during the Supplier Meet of Bosch 56 56
Slide 51: Financial Progress - Q1 FY24 Performance
Financial Progress - Q1 FY24 Performance 57
Slide 52: Consolidated Results : Q1 FY24
Consolidated Results : Q1 FY 24 Sales* PBT PAT Q1 Financial Year 23-24 ₹ 1191 Cr ₹ 149 Cr ₹ 113 Cr + 6% QoQ + 42% QoQ + 44% QoQ Abrasives** Electro-minerals** Ceramics** Sales EBIT Sales EBIT Sales EBIT ₹ 519 Cr ₹ 31 Cr ₹ 418 Cr ₹ 74 Cr ₹ 287 243 Cr ₹ 81 58 Cr + 1 % QoQ + 75% QoQ + 3% QoQ + 47% QoQ
Slide 53: Standalone Results : Q1 FY24
Standalone Results : Q1 FY 24 Sales* PBT PAT Q1 Financial Year 23-24 ₹ 659 Cr ₹ 120 Cr ₹ 93 Cr + 10% QoQ + 25% QoQ + 28% QoQ Abrasives** Electro-minerals** Ceramics** Sales EBIT Sales EBIT Sales EBIT ₹ 282 Cr ₹ 43 Cr ₹ 197 Cr ₹ 23 Cr ₹ 231 243 Cr ₹ 62 58 Cr + 5 % QoQ + 33% QoQ + 10% QoQ - 25% QoQ +
Slide 54: Thank You
ihe murugappa THANK-YOU Making a Material Difference fin} cumi-1954 ® www.cumi-murugappa.com
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