Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q3 FY20 Earnings Presentation
51 slides from Galaxy Surfactants's earnings presentation, Feb 3, 2020
Slide 1: Exchange filing cover letter for investor presentation
GQ Galawy Global a to Global Sac February 3, 2020 Galaxy Surfactants Ltd. National Stock Exchange of India Ltd., Listing Compliance Department Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (East) Mumbai — 400 051 Scrip Symbol: GALAXYSURF BSE Limited, Listing Department, Phiroze Jeejeebh
Slide 2: Galaxy Surfactants Limited Investor Presentation - February 2020
Galaxy Surfactants Limited Investor Presentation - February 2020
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Galaxy Surfactants 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 s
Slide 4: 9M FY20 Performance Highlights
9M FY20 Performance Highlights 3
Slide 5: 9MFY20: Key Developments
9MFY20: Key Developments The AMET market outperformed on the back of a strong performance registered by the Performance Surfactants segment Domestic (India) business registered healthy 4.8% (Y-O-Y) growth post two subdued quarters, showing signs of revival All three regions report volume growth desp
Slide 6: Volume: 9MFY20 Highlights (YoY)
Volume: 9MFY20 Highlights (YoY) Performance Surfactants Specialty Care Products Total Volume +7.1% +3.1% +5.6% 1,04,668 59,563 61,439 1,57,261 1,66,107 97,698 Volume Highlights 9MFY19 9MFY20 9MFY19 9MFY20 9MFY19 9MFY20 India Market grew by 0.7% Africa Middle East Turkey grew by 9.5% Rest of the Worl
Slide 7: 9MFY20 Revenue Highlights (YoY)
9MFY20 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ -8.1% -4.0% -6.6% 1,312 770 739 2,082 1,946 1,206 Revenue Highlights 9MFY19 9MFY20 9MFY19 9MFY20 9MFY19 9MFY20 EBITDA^ PAT +5.0% +25.2% 259 272 168 134 Rs. In Crores 9MFY19 9MFY20 9MFY19 9MFY20 As per Ind AS ^Incl
Slide 8: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q3 FY20 Q3 FY19 Y-o-Y 9M FY20 9M FY19 Y-o-Y FY19 Net Revenue from Operations 625.9 679.4 -7.9% 1,939.7 2,080.8 -6.8% 2,763.0 ▪ Decline in revenue is Other Income 3.4 1.0 5.9 1.2 4.7 primarily due to declining fatty alcohol prices. The
Slide 9: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q3 FY20 Q3 FY19 Y-o-Y 9M FY20 9M FY19 Y-o-Y FY19 ▪ Other income for 9MFY20 Net Revenue from Operations 442.2 494.1 -10.5% 1,359.1 1,503.9 -9.6% 1,996.4 includes loss of Rs 1.03 cr as Other Income -4.7 -0.8 4.0 32.1 35.9 against gain of R
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Sept ’19 Mar’19 Particulars (Rs. In Crores) Sept’19 Mar’19 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 528.5 511.2 EQUITY Right-of-use assets 38.9 0.0 Equity Share Capital 35.5 35.5 Capital work-in-progress 111.8 82.6 Other Equit
Slide 11: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Half Year ended Particulars (Rs. In Crores) Sept ’19 Sept ’18 Cash Flow From Operating Activities : Profit After Tax 119.6 92.0 Operating Profit before working Capital changes 183.7 172.9 Net cash flows generated from/(used) in Operating Activities (A) 101.1 85.7 Net
Slide 12: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Sept ’19 Mar’19 Particulars (Rs. In Crores) Sept ’19 Mar’19 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 376.2 354.2 EQUITY Capital work-in-progress 38.1 40.2 Equity Share Capital 35.5 35.5 Right of use Asset 25.6 0.0 Other Equity 8
Slide 13: Standalone Cash Flow Statement
Standalone Cash Flow Statement Half Year ended Particulars (Rs. In Crores) Sept ’19 Sept ’18 Cash Flow From Operating Activities : Profit After Tax 99.9 94.5 Operating Profit before working Capital changes 142.5 130.1 Net cash flows generated from/(used) in Operating Activities (A) 46.6 73.3 Net cas
Slide 14: Business Overview
Business Overview 13
Slide 15: Truly Indian MNC…
Truly Indian MNC… Leading manufacturer of Product applications across Preferred supplier to leading Ingredient for Home & Mass, Mass-tige & Prestige Multinational, Regional & Brand Custodian Personal care Industry (HPC) range of Customers Local FMCG Brands Globally Recognized Integrated Across Full
Slide 16: …Vertically Integrated in HPC Industry
…Vertically Integrated in HPC Industry 7 Strategically Located 200+ Product Grades Extensive R&D Capabilities Indigenous Facilities with Inhouse Project 74 Members, R&D Centre, Pilot Intellectual property Execution Capabilities Plant, Product Application 68 Approved; 18 Applied 5 in India, 1 in Egyp
Slide 17: We grow faster than HPC FMCGs
We grow faster than HPC FMCGs India’s Largest Manufacturer of Oleochemical based Surfactants and Speciality Care Products for Home Care and Personal Care Industries (HPC) Consumer to Innovation & Chemistry Technology 01 03 05 Global Supplier 02 Multiple 04 High Growth to Global Brands Products acros
Slide 18: Our growth trajectory over Three Decades
Our growth trajectory over Three Decades 1986: Incorporation of Company 1994: New plant set up at Tarapur 2004: setting up of EOU at Taloja 2011: Commissioning of Egypt and Jhagadia Plants 1984: New Plant at Tarapur for 1995: Acquisition of Galaxy Chemicals 2009: Ethoxylates, Phenoxyethanol, Sunscre
Slide 19: Our focus is Personal & Home Care Segment
Our focus is Personal & Home Care Segment Hair Care Oral Care Home Care Shampoos Toothpaste Carpet Cleaner Conditioners Tooth powder Toilet Cleaner Colorants Mouth wash Detergents Styling Gels Fabric Cleaner Glass / Floor Cleaner Mass Mass -tige Prestige Serving needs across Consumer Segments Mass M
Slide 20: Product Offerings and Consumer Benefits
… with over 200 Product Offerings Anionic Surfactants FAES, FAS, LABSA ✓ Foam and Dirt removal properties Performance Surfactants Non-Ionics Surfactants Ethoxylates ✓ Cosmetics and Personal care products as emulsifiers and solubilisers Betaines ✓ Dermatological properties to reduces skin irritation
Slide 21: Our Business Segments…
Our Business Segments… Performance Surfactants Speciality Care Products “Substantive Raw Material in Customer’s End-products” “Unique Functionality to Customer’s End-products” About Product ▪ Products are functional in nature where End- ▪ Niche & Premium products consumer require foaming & cleansing
Slide 22: Our Global Footprints
Our Global Footprints USA: TRI-K Industries-100% owned Manufacturing ✓ Netherlands R&D ✓ USA # Plants 1 TRI K Turkey China Industries Global # Employees 69 Headquarters Egypt Galaxy Marketing office ✓ Chemicals (Egypt) S.A.E. India Egypt:100% owned* 9MFY20: Revenue Breakup Manufacturing ✓ India: Par
Slide 23: Consumer to Chemistry: Creation of Products
“Consumer to Chemistry”: Creation of Products 68 approved Patents and 18 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 15 15 4 7 18 R&D spend New product 68 Patents 18 Patent of INR 60+ grades, since 2002 application Capability Stage pending Cr in 17-19 process, efficien
Slide 24: …with World-class R&D facilities
…with World-class R&D facilities Collaborative product development with Customers which helps Customers in choosing “Right Technology with Right Application” Inhouse R&D Team of 74 professionals comprising of doctorates, chemists and engineers Well-Equipped R&D Centre, Pilot Plant at Tarapur, Mahara
Slide 25: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities Location No. of Units Installed Capacity Details ✓ 1 pilot plant for scale up and commercialisation of new Tarapur, Maharashtra 3 33,647 MTPA products rolling out from R&D activities ✓ Easy access to the Jawaharlal Nehru Port Trust, Navi Mumbai ✓ One of the
Slide 26: 1750+ Clients across 75+ Countries
1750+ Clients across 75+ Countries Procter & Colgate Reckitt Unilever Dabur Gamble Palmolive Benckiser Himalaya Henkel Emami Loreal CavinKare & Many more… Long term strategic relationship with all of the top 10 customers Strict qualifications and extensive collaboration with customers for end-produc
Slide 27: Awards & Certifications: True recognition of Capabilities
Awards & Certifications: True recognition of Capabilities “Best Supply Partner”, 2015 2018 “Winning through Award of Global Performance” for Long Standing Partner Award Recognition from Innovation” at the Partner L’Oréal Asia Pacific 2012 Best Reliable Partner Award to Win, 2012 Awards “Certificate
Slide 28: Accolades Received during FY19 and Certifications
Accolades Received during FY19 Recognition from Clients ““Outstanding Contribution to “Emerging Business Partner PARTNER TO WIN” by Unilever - 2018” awarded by Abbott during ACI-2019 conference at Samanvay 2018 event Awards received ICIS Innovation Award 2018 Innovation Award CHEMEXCIL Best Process
Slide 29: Management Team on Board
Management Team on Board Mr. Unnathan Shekhar Promoter, Managing Director •Associated with Company since 1986 •Chemical Engineer, PGDM from IIM, Calcutta Mr. Natarajan K. Krishnan Mr. Kasargod Ganesh Kamath Executive Director, Chief Operating Officer Executive Director (Finance), Chief Financial Off
Slide 30: Along with Guidance of Senior Board Members
Along with Guidance of Senior Board Members Mr. Shekhar Ravindranath Warriar Chairman, Non-Executive Independent Director •Associated with Company since 2007 •More than 30 years with Unilever, India in various capacities Mr. Subodh S. Nadkarni Mr. Gopalkrishnan Ramakrishnan Mr. Shashikant R. Shanbha
Slide 31: The 4 Cs: Our Core Strength
The 4 Cs: Our Core Strength CHARACTER COMPETITIVENESS Transparent & Open, Respect & Adhering to Global Quality Value People, Dreaming & Standards, Supplying Envisioning , Conducting Customers Globally, Agile & Business with Integrity Nimble Footedness COMPETENCE COMFORT Respecting our Commitments, T
Slide 32: High Growth Industry
High Growth Industry 31
Slide 33: Personal & Home Care: Stable & Non-Cyclical Industry
Personal & Home Care: Stable & Non-Cyclical Industry Personal Care and Household Personal Care and Household Cosmetics Market Cleaning Market Cosmetics Market Cleaning Market 2015 215 43 11 2 2024 358 58 23 4 5.8% 3.3% 7.9% 7.2% CAGR CAGR CAGR CAGR Galaxy has a strong presence in High Growth Markets
Slide 34: Within Surfactants – Personal Care is fastest Growing Segment
Within Surfactants – Personal Care is fastest Growing Segment Surfactants Personal Care Surfactants Personal Care Market Surfactants Market Market Surfactants Market 2015 30.65 6.13 1.34 0.24 2024 45.16 10.27 2.28 0.47 4.4% 5.9% 6.1% 7.8% CAGR CAGR CAGR CAGR All figures in USD billion Source: Compan
Slide 35: Within Specialty – Personal Care Ingredients has largest Growth Potential
Within Specialty – Personal Care Ingredients has largest Growth Potential Global Personal Care Ingredients: USD 14-18 billion UV Absorbers ▪ Global sun care (of which 80% is sun protection) is a USD 11 bn Sunscreen market and is estimated to touch USD 12.3 bn by 2021 35% 40% ▪ Preservatives blends a
Slide 36: Growth Strategy
Growth Strategy 35
Slide 37: Personal & Home Care: High Entry Barrier Businesses
Personal & Home Care: High Entry Barrier Businesses Process Product Customers Chemical Engineering & inhouse project Wide spectrum of ingredients for Customer Centric Integrated solutions for execution Consumer categories / needs the HPC FMCG Industry Meeting pre-qualifications of the Product Qualit
Slide 38: Our Growth Vision
Our Growth Vision Sales R&D and Customer Market Strategy Profitability Optimization Innovation Wallet share Improve Financial Increased focus on Continue to focus Increase Wallet Mutually Performance high margin on R&D and Share with Existing Complimentary through Sales products in both Product Inno
Slide 39: Financial Performance
Financial Performance 38
Slide 40: Managing Volatility in Raw Material Prices and Currency
Managing Volatility in Raw Material Prices and Currency... Fatty Alcohol Prices (USD / MT) INR / USD Prices LA Price USDINR 1,600 75 1,500 73 1,400 71 1,300 69 1,200 67 1,100 65 Jun-18 Oct-18 Jun-19 Nov-18 Jan-19 Apr-18 May-18 Jul-18 Aug-18 Sep-18 Dec-18 Mar-19 Apr-19 Feb-19 May-19 Jun-18 Oct-18 Jun
Slide 41: Volume: FY19 Highlights (YoY)
Volume: FY19 Highlights (YoY) Performance Surfactants Specialty Care Products Total Volume +4% +19% +9% 1,30,596 1,35,337 79,374 2,14,711 1,97,429 66,833 Volume Highlights FY18 FY19 FY18 FY19 FY18 FY19 India Growth 12% Africa Middle East Turkey de-grew by -5% Rest of the World grew by 29% AMET Marke
Slide 42: FY19 Revenue Highlights (YoY)
FY19 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ +8% +24% +13% 1,613 1,741 1,027 2,768 831 2,444 Revenue Highlights FY18 FY19 FY18 FY19 FY18 FY19 EBITDA^ PAT +20% +21% 358 191 298 158 Rs. In Crores FY18 FY19 FY18 FY19 As per Ind AS ^Includes other Income 41
Slide 43: Our Performance Highlights
Our Performance Highlights Revenue^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +10% 2,768 +17% 358 +29% 191 2,444 298 158 2,172 282 148 1,875 1,807 238 192 101 68 FY15 FY16 FY17* FY18* FY19* FY15 FY16 FY17* FY18* FY19* FY15 FY16 FY17* FY18* FY19* EBITDA per tonne Total Volume Growth +7% +9%
Slide 44: Our Balance Sheet Strength
Our Balance Sheet Strength Debt/ Equity (x) Return on Equity (%) 1.1 28.8% 0.9 25.2% 24.4% 23.9% 20.4% 0.7 0.5 0.3 FY15 FY16 FY17* FY18* FY19* FY15 FY16 FY17* FY18* FY19* Cash Flow from Operating Activities Return on Capital Employed (%) (Rs in cr) 283 26.8% 25.2% 23.9% 22.6% 170 18.6% 144 111 41 FY
Slide 45: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Mar’19 Mar’18 Particulars (Rs. In Crores) Mar’19 Mar’18 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 511.2 439.9 EQUITY Capital work-in-progress 82.6 24.9 Equity Share Capital 35.5 35.5 Goodwill 2.5 2.4 Other Equity 841.3 683.3 In
Slide 46: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Mar’19 Mar’18 Particulars (Rs. In Crores) Mar’19 Mar’18 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 354.2 277.9 EQUITY Capital work-in-progress 40.2 18.5 Equity Share Capital 35.5 35.5 Goodwill 0 0 Other Equity 747.1 630.4 Intangib
Slide 47: Thank You
Thank Company : Investor Relations Advisors : You CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Mr. Varun Divadkar/ Ms Neha Shroff Email: Paritosh.Srivastava@galaxysurfactants.com Varun.divadkar@sgapl.net / neha.shroff@sgapl.net www.galaxysurfactants.com +91 97637
Slide 48: Investors Release: 9MFY20 Consolidated Performance
Investors Release Galaxy Surfactants Limited 9MFY20 Consolidated Performance: Total volume grew by 5.6% for 9MFY20, on YoY basis Total Revenue (including other income) stood at Rs. 1,945.6 Cr, a YoY degrowth of 6.5% on account of lower fatty alcohol prices which declined by 6.7% for the quarter
Slide 49: Investors Release: Management Commentary
Investors Release Commenting on the performance Mr. U. Shekhar, Managing Director, Galaxy Surfactants Limited said “Q-3 marked a mixed quarter for us. While on one hand we had the Indian market making a comeback registering a healthy 4.8% volume growth, the ROW Market due to the seasonal holidays in
Slide 50: Investors Release: Volume Break up 9MFY20
Investors Release Galaxy Surfactants Limited (Volume Break up): 9MFY20 Particulars YoY Growth % (9MFY20 vs 9MFY19) Sales Volume 5.6% ROW 6.8% India 0.7% AMET 9.5% Total volumes stood at 1,66,107 MT for 9MFY20 as against 1,57,261 MT in 9MFY19, up by 5.6% YoY o Volume growth has been driven by all t
Slide 51: Investors Release: About Galaxy Surfactants Limited
Investors Release About Galaxy Surfactants Limited: Incorporated in 1986, Galaxy Surfactants Ltd is leading manufacturers of Performance Surfactants and Specialty Care products with over 200 product grades. These products are used in consumer-centric Home and Personal care products like hair care, o