Rhi Magnesita India Limited · NSE:RHIM
Rhi Magnesita India — Q3 FY2023 Earnings Presentation
28 slides from Rhi Magnesita India's earnings presentation, Feb 26, 2023
Slide 1: Cover letter to stock exchanges
RHI MAGNESITA INDIA LTD. (Formerly Orient Refractories Ltd.) 301, 316-17, TOWER B, EMAAR DIGITAL GREENS GOLF COURSE EXTENSION ROAD, SECTOR 61, GURUGRAM, HARYANA-122011, INDIA T +91 124 4062930 E corporate.india@rhimagnesita.com www.rhimagnesitaindia.com 26 February 2023 Department of Corporate Servi
Slide 2: Investor Presentation
Investor Presentation RHI Magnesita India Limited February 2023
Slide 3: Refractories are essential for our modern world
Refractories are essential for our modern world Concrete Copper Steel Glass Aluminium 1,500°C 1,350°C 1,760°C 1,650°C 1,250°C 1 tonne of STEEL 1 tonne of CEMENT 1 tonne of GLASS 1 tonne of ALUMINIUM 1 tonne of COPPER demands ~10-15 Kg demands ~1 Kg demands ~4 Kg demands ~6 Kg demands ~3 Kg of refrac
Slide 4: Refractory applications
Refractory applications Customer industries Main application Lifetime and costs Refractory characteristics Part of customers’ operational Steel 20 minutes to 2 months Basic oxygen furnace, expenditure 70% of global market Electric arc furnace, ladles, flow control c.3% of customers’ costs Systems an
Slide 5: Global leader in a highly fragmented market
Global leader in a highly fragmented market RHI Magnesita Group strategy - growth through consolidation Global market share (RHI Magnesita Group) 10.5% Total market size: Others c.€20bn RHI Magnesita Group is the leading global refractory supplier with a 15% global market share and 30% ex-China 15%
Slide 6: Raw material and refractory process overview
Raw material and refractory process overview RHI Magnesita India 5 PUBLIC
Slide 7: Solutions contracts
Solutions contracts RHI Magnesita can offer a range of heat management solutions to its customers Client benefit ü Reduced downtime ü Lower refractory consumption ü Lower energy and other raw materials consumption ü Higher productivity and cost savings RHI Magnesita benefit ü Higher client retention
Slide 8: History of RHI Magnesita India
History of RHI Magnesita India The leader of refractories in India, West Asia and Africa Our Company (formerly known as Orient Refractories Limited) amalgamated with our two subsidiaries at the time, RHI India Private Limited ("RHI India") and RHI Clasil Private Limited ("RHI Classil") through a sch
Slide 9: Industry outlook
Industry outlook India refractory demand forecast to grow with 6% CAGR India has emerged as the fastest-growing major economy in the India real GDP growth forecast 2022-24 world and is expected to be one of the top three economic powers in the world over the next five years 8.7% India growth is expe
Slide 10: Refractory demand outlook by sector
Refractory demand outlook by sector Steel Cement Aluminium In India, demand outlook remains Infrastructure and housing to boost Domestic demand for aluminium is strong, led by a strong investment cement demand expected to increase on the back of cycle supported by: healthy demand from power, constru
Slide 11: Sustainability leadership
Sustainability leadership RHI Magnesita Group is seeking to transform sustainable business practices in the refractory industry Refractories are a ‘hard to abate’ industry with CO2 Untreated recycled Autoclave treated recycled emissions arising from fossil fuel use and processing of refractory refra
Slide 12: Backed by the RHI Magnesita Group
Backed by the RHI Magnesita Group ü Market leadership position with 30% market share in 60% ownership by RHI Magnesita Group brings India significant benefits: ü ‘Local for local manufacturing strategy - ‘Make in India’ - Group is actively seeking to grow in India through this listed entity, making
Slide 13: M&A
M&A
Slide 14: Dalmia OCL
Dalmia OCL Acquisition of Dalmia OCL Limited completed 6 January 2023 A leader in the India refractory market with a strong position in the cement industry Indian refractory business of Dalmia Bharat Refractories Well established operations with a complementary local Limited production footprint of
Slide 15: Hi-Tech Chemicals
Hi-Tech Chemicals Acquisition of Hi-Tech Chemicals refractory business completed 31 Jan 2023 Well established steel flow-control producer (isostatic ceramics, slide gate plates) in Jamshedpur Refractory business Semi-automated, modern production plant in a low cost and of Hi-Tech Chemicals high grow
Slide 16: Acquisitions create distributed plant network
Acquisitions create distributed plant network Prior to 2023 M&A, operated three plants in Bhiwadi, Vizakhapatnam and Cuttack Dalmia OCL acquisition adds facilities in west and south, Hi-Tech acquisition adds Jamshedpur Distributed network will support customer deliveries and increase recycling rates
Slide 17: Financial Results
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Slide 18: 3 year financial track record
3 year financial track record RHI Magnesita India 17 PUBLIC
Slide 19: 9 months to 31 Dec 2022 highlights
9 months to 31 Dec 20221 highlights Revenue and EBITDA growth with slight decline in margins due to FX and sales mix Total Revenue EBITDA EBITDA margin Cash returned to shareholders ₹18,559m ₹3,192m 17.3% ₹402m 31% 26% 70bps Free cash flow Capex Dividend per share Earnings per share2 ₹669m ₹373m ₹2.
Slide 20: Q3 vs Q2 highlights
Q3 vs Q2 highlights Total Revenue (₹ m) EBITDA (₹ m) EBITDA Margin (%) +7% -7% -14% 6,482 1,037 17% 6,030 962 15% Q2 FY23 Q3 FY 23 Q2 FY23 Q3 FY 23 Q2 FY 23 Q3 FY 23 PAT (₹ m) PAT Margin (%) -18% -24% 714 12% Continued volume-driven 584 9% revenue growth Formulae used for computation: EBITDA -> Prof
Slide 21: Q3 vs Q2 profit & loss detail
Q3 vs Q2 profit & loss detail Earnings per share (₹) 17.5 16.6 8.4 Formulae used for computation: EBITDA -> Profit before tax + Finance Cost + Depreciation & Amortisation expense EBITDA Margin -> EBITDA / Total Revenue PBT Margin -> PBT / Total Revenue 2021 2022 9M FY23* PAT Margin -> PAT / Total Re
Slide 22: Disciplined working capital management
Disciplined working capital management Working capital (₹ m) Inventories (₹ m) Inventory days 124 Cash conversion cycle 99 110 109 105 6,077 7,049 5,897 3,531 96 93 87 2021 2022 H1 2022 Dec-22 7,584 Receivables (₹ m)1 Receivables days 7,284 99 89 94 92 6,631 5,815 6,463 6,498 3,863 3,915 2021 2022 H
Slide 23: Operations update
Operations update
Slide 24: Production optimisation
Production optimisation Rationalise, modernise and reduce production costs, closer to our customers Production optimisation is a continuous process Precast Line in Bhiwadi upgraded following installation of new mixing equipment Shifted to Pressed Precast from Casted Precast products Automation of tu
Slide 25: Vizag
Vizag New tunnel kiln August 2022 RHI Magnesita India 24 PUBLIC
Slide 26: Bhiwadi
Bhiwadi New R&D centre November 2021 RHI Magnesita India 25 PUBLIC
Slide 27: Shared service centre
Shared service centre Group is investing to expand its global shared service centre in New Delhi Global Shared Services (GSS) Alongside strong growth in the domestic India market, the RHI Magnesita Group also intends to invest in its global shared service centre in New Delhi Vision is to build an ag
Slide 28: Disclaimer
Disclaimer This presentation ("Presentation") should not be considered as a recommendation that any investor should subscribe for or purchase any securities of RHI Magnesita India Limited (“Company”) or its subsidiaries (collectively, the “Group”) and should not be used as a basis for any investment
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