Slide 1: Cover letter to stock exchanges
30th January 2020 SEC/122B The Secretary The National Stock Exchange of India Ltd. The Bombay Stock Exchange Limited Exchange Plaza “P.J. Towers” Bandra Kurla Complex, Dalal Street Bandra (East) Mumbai-400 001 Mumbai-400 051 Scrip Code: 500730 Symbol: NOCIL Dear Sir, Sub: Investor Presentation Pursu
Slide 2: Investor Presentation – January 2020
Investor Presentation – January 2020 NOCIL LIMITED
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by NOCIL Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, an
Slide 4: Quarterly Performance
Quarterly Performance Revenue from Operation Total Conversion cost* Volumes (MT) Operating EBITDA (%) (Rs. In crores) (% to Revenue) 0% 230 35% 34% 24.5% -2% 210 32% 23.1% 194 18.4% Q1FY20 Q2FY20 Q3FY20 Q1FY20 Q2FY20 Q3FY20 Q1FY20 Q2FY20 Q3FY20 Q1FY20 Q2FY20 Q3FY20 • Impacted due to slowdown • Prolo
Slide 5: Key Highlights
Key Highlights Industry Scenario: Our Strategy: ▪ Volume de-growth seems to have ▪ Focus on gaining Market share bottomed out. Pick up in sales volume ▪ Focus on optimisation of resources expected ▪ Q4FY20 volumes expected to be highest ▪ Price depression seems to be more of in FY20 temporary nature
Slide 6: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Rs. In Crores Q3 FY20 Q2 FY20 Q1 FY20 Q-o-Q 9M FY20 9M FY19 Y-o-Y Net Revenue from Operations 194 210 230 -7.4% 634 801 -20.9% Raw Material 93 89 100 282 356 Value Addition * 102 121 129 352 445 Value Addition % 52.3% 57.7% 56.4% 55.6% 55.6% Employee Expenses 19 19
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Rs. In Crores Q3 FY20 Q2 FY20 Q1 FY20 Q-o-Q 9M FY20 9M FY19 Y-o-Y Net Revenue from Operations 194 210 230 -7.4% 634 801 -20.9% Raw Material 93 89 100 282 356 Value Addition * 102 121 129 352 445 Value Addition % 52.3% 57.7% 56.4% 55.6% 55.6% Employee Expenses 19
Slide 8: Business Overview
Business Overview
Slide 9: Company Overview
Company Overview ▪ Part of Arvind Mafatlal Group ▪ Expertise in Rubber Chemical Business over 4 decades ▪ Largest Rubber Chemicals Manufacturer in India ▪ Long Term Business Relationships with Tyre Majors (Both Domestic & International) ▪ Awarded Responsible Care Logo by Indian Chemical Council Reve
Slide 10: Management Team
Management Team Mr. Hrishikesh . A. Mafatlal – Promoter & Chairman Mr. S. R. Deo – Managing Director • Executive Chairman and Promoter Director of NOCIL Ltd • M. Tech. in Chemical Engineering from IIT Kanpur • B.Com. (Hons.) & has attended the Advanced Management • Associated with the company for ne
Slide 11: Glimpse of our Plants
Glimpse of our Plants Navi Mumbai Plant Dahej Plant • Set up in 1976 • Commenced operations in March 2013 • Located in Trans-Thane Creek industrial area at Navi Mumbai, • Located about 45 kms from Bharuch, Gujarat Thane - Belapur’s industrial zone designated for the chemical Industry, about 40 kms a
Slide 12: Our Value Proposition
Our Value Proposition 01 01 Products & Product Forms • Wide Range of Rubber Chemical Products • Varied Product Forms Long Term Relationships 02 Sales, Marketing & Technical Service with Customers • Market Responsive Approach over 40 Countries • Strong MTS Team to offer Technical Services 03 02 03 R
Slide 13: Products & their Usage
Products & their Usage ANTI-DEGRADANTS/ ANTI-OXIDANTS 1 ▪ These are ingredients in rubber compounds which deter the ageing and inhibit degradation due to oxygen attack of rubber products, thereby enhancing service life ONE STOP SHOP ACCELERATORS With 2 ▪ Increase the speed of vulcanization ▪ Permit
Slide 14: R&D and Total Quality Management
R&D and Total Quality Management Research & Technology Development Quality Assurance Certifications ▪ NOCIL’s Research Centre at ▪ Quality Management System ▪ ISO 9001:2008 Navi Mumbai recognized by with a focus on Quality of ▪ ISO 14001:2004 Ministry of Science and Raw materials, Finished Technolog
Slide 15: Technology & Speciality Chemicals – Moving up the curve
Technology & Speciality Chemicals – Moving up the curve 55% Key Factors 35% +20% Value Addition Continual Technological Strong position in High- Improvement in Product FY13 FY19 value added products & Processes 28% +24% R&D Capabilities leading Operating Operating leverage due to significant reducti
Slide 16: Rubber Chemicals – Industry Trends
Rubber Chemicals – Industry Trends High Performance Tyres Stringent Environmental compliance Extended life, Automotive & Cost increase in China NOCIL has been awarded by ICC for Industrial products will increase leading to Better level “Excellence in Management of rubber processing chemical playing
Slide 17: Positive Demand Forecast
Positive Demand Forecast Global Rubber Consumption (Natural + Synthetic) In Lakh tonnes 291.8 • Rubber Chemicals 0.0 constitute ~4% of the 8.0 Rubber Consumption 9.3 • Normally every year 8.6 ~35k additional demand for Rubber 4.5 chemicals is created 255.4 6.1 • Major markets have 2013 2014 2015 201
Slide 18: CAPEX Update
CAPEX Update Phase I – Rs. 170 crores ^ Phase II – Total Capex of Rs. 255 crores ^ • For expansion of its production • Phase I (a) - Expansion at Navi facilities for Rubber Chemicals Mumbai has been commissioned Expansion is expected to give an Asset (including intermediates captively Turnover of ~2
Slide 19: Why NOCIL is a Supplier of Choice
Why NOCIL is a “Supplier of Choice” Non-Chinese Dependable Player Environment Friendly Processes Pipeline of New Generation of Rubber Chemicals Continuous investments done Non-Chinese Dependable & Development of Niche products to adopt various innovative Quality Player with Committed using innovativ
Slide 20: Annual Performance Trend
Annual Performance Trend Revenue from Operations* Operating EBITDA Operating PBT** Rs. In Crores +13.4% +27.9% 1,043 290 +30.1% 267 968 263 239 716 742 159 137 139 121 FY16^ FY17 FY18 FY19 FY16^ FY17 FY18 FY19 FY16^ FY17 FY18 FY19 * Revenue from operations is net of GST/Excise duty ** Operating PBT
Slide 21: Annual Operating Performance
Annual Operating Performance Value Additions* Operating EBITDA Margins Operating PBT Margins 54% 55% 28% 26% 27% 25% 52% 50% 21% 19% 19% 17% FY16^ FY17 FY18 FY19 FY16^ FY17 FY18 FY19 FY16^ FY17 FY18 FY19 *(Revenue (-) cost of raw materials consumed (-) cost of traded goods (-) change in inventories)
Slide 22: Margin built-up over the years
Margin built-up over the years Overall Improvement in Margin Profile of the Company Sustainable Initiatives taken over 5 years 55% 55% 52% 50% 46% • Change in Product mix 42% o Share of specialised applications 35% o Increased share of export business 28% 27% • Technological Improvements 21% 19% o C
Slide 23: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : NOCIL Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L99999MH1961PLC012003 CIN: U74140MH2010PTC204285 Mr. P. Srinivasan - CFO Ms. Payal Dave / Ms. Neha Shroff finance@nocil.com payal.dave@sgapl.net / neha.shroff@sgapl.ne