Indo National Limited · NSE:NIPPOBATRY
Indo National — Investor Presentation (September 2021)
32 slides from Indo National's investor presentation, Sep 16, 2021
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Slide 2: Indo National Limited (INL) Corporate Presentation
INDO NATIONAL LIMITED (INL) CORPORATE PRESENTATION September 2021
Slide 3: Contents
Contents Company Strategic Financial Key Overview Investments Overview Takeaways into Composites Business 03 19 25 29 2
Slide 4: Company Overview
COMPANY OVERVIEW 3
Slide 5: Indo-National is an Emerging Conglomerate
Indo-National is an Emerging Conglomerate Well established dry High growth retail Strong brand with wide Successfully cell battery business business with wide Distribution Network collaborated with with nearing 50 years product portfolio DORCO, South Korea of heritage and launched the products of DO
Slide 6: Based on a Robust Foundation
Based on a Robust Foundation Strong Portfolio #2nd Largest ~30% * Covering retail, defence, Dry Cells (zinc-carbon) Market Share in Batteries aerospace, railways, industrial, manufacturer in India telecom etc. Strong Brand Wide Consumer Rated A* / Stable & “NIPPO” As brand is real Product Range A1**
Slide 7: Uniquely Addressing Multiple Opportunities
Uniquely Addressing Multiple Opportunities B2C B2B B2G 6
Slide 8: Diversified Businesses are Gaining Scale
Diversified Businesses are Gaining Scale Revenue Break-up (Rs. mn) 5,318 5,082 4,432 4,027 4,195 4,035 3,407 3,408 3,509 3,414 2,828 2,598 2,474 2,359 2,420 2,526 2,250 2,096 2,021 2,056 1,784 1,263 1,451 1,158 1,150 1,185 1,148 1,241 1,039 932 994 1,008 984 613 753 493 FY12 FY13 FY14 FY15 FY16 FY17
Slide 9: Battery Manufacturing Infrastructure
Battery Manufacturing Infrastructure 8
Slide 10: Wide Product Portfolio which is Expanding Further
Wide Product Portfolio which is Expanding Further Batteries Flashlights LED Bulbs Mosquito Bats Electrical Accessories BATTERY D BATTERY 9V TRAVEL ADAPTOR WITH DUAL USB CLASSIC EMERGENCY POPULAR SERIES RANGE LED BULB 9W TERMINATOR TERMINATOR II MINI BATTERY AA FLEX BOXES PREMIUM SERIES HIGHER WATTAG
Slide 11: Well entrenched Infrastructure and Distribution Structure
Well entrenched Infrastructure and Distribution Structure B2C channel established over 49 years enabling last mile penetration • 2.2 Lac Sq. Feet of Manufacturing Facilities 11% spread across 56 Acres of land ~2.6mn Revenue from • 1.25 MW Solar Power Plant for Captive Use Outlets sell E.com & Modern
Slide 12: Value Creation by Leveraging Existing Platform
Value Creation by Leveraging Existing Platform • Founded in 1955, DORCO of South Korea has become one of the most Exclusive distribution partnership with recognized shaving companies in the world, with customers in over 130 DORCO Ltd. countries • INL entered an agreement with DORCO Co., Ltd. in Dece
Slide 13: Brand Equity
Brand Equity As per TRA’s All-India Engaged Indian cricketer Rohit Sharma to promote Brand Trust Report of INL’s portfolio of products 2021, Nippo has been comprising dry-cell batteries, flashlights and ranked as 367th (out of mosquito bats 1,000 brands in India) as ‘The Most Desired Brand’ ‘NIPPO’
Slide 14: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) INL’s CSR activities focuses in the areas of Vocational Training, Health, Hygiene and Education, reinforcing its commitment towards creating a sustainable impact in the areas in which it operates 13
Slide 15: Proficient Management Team
Proficient Management Team SANKARA REDDY M SUBRAMANYAM M SIVARAMAKRISHNAN C R Director & Head, Operations President CFO B.Com, ICWA B.Com, ACA Chartered Accountant 42 Years of Experience 30 Years of Experience 29 Years of Experience B L N PRASAD MATHEW GUNASEALAN BALACHANDRAPPA K VP - Marketing VP -
Slide 16: Corporate History
Corporate History Engaged Rohit Sharma Launched Mosquito to promote INL’s Commissioning of Hi- Bats & Electrical portfolio of products AA Size Battery Tech line for production Nippo became first Products (Spike comprising dry-cell production of AA Size Battery at brand to launch LED Launched AAA Gua
Slide 17: Awards
AWARDS AOTS CUMI ‘5S’ Excellence Award in 2006 Received award for ‘Excellence in Won Productivity Award by Environment Management’ by Government of Andhra Pradesh the Govt. of Andhra Pradesh in twice in a row (1983 & 1984) 2002 & 2005 Received Best Management Award by the Govt. of Andhra Pradesh in
Slide 18: INL - Marquee Clients
Ss Ministry of Defence © SUN PHARMA Cipla INL - MARQUEE CLIENTS 7 6 & “I ¢ Vy Se a a Apollo viene TVS HAVELLS @ RANBAXY «WT umes LOTTE INDIA LABORATORIES LIMITED cement The Engineer's Choice —-~A. sb IndianOil TAFE ¥
Slide 19: Industry Outlook – Consumer Products
Industry Outlook – Consumer Products Flashlights, Mosquito Bats & Batteries LED Lighting DORCO Electrical Accessories • Market Size (as per Nielsen) – • Market Size of Indian LED • The combined market size of • Market Size – ~Rs. 2,900 crore ~Rs. 2,294 crore by value and 2.7 Lighting Industry – ~Rs.
Slide 20: Strategic Investment into Composites Business
STRATEGIC INVESTMENT INTO COMPOSITES BUSINESS
Slide 21: Corporate Structure
Corporate Structure Indo National Kaman Limited Aerospace USA Kineco has a JV with Kaman Corp. (an NYSE listed US Aerospace 100% company) 51% 51% 49% Helios Strategic Kineco Kineco Kaman Systems Limited Composites India In FY16, INL acquired Kineco to focus on Leveraging expertise of ‘Kaman 51% stak
Slide 22: Strategic Investment into Composites Business
Strategic Investment into Composites Business Strategic partnerships with global leaders • In 2015, INL has acquired majority stake (51%) in Diversified company Kineco Ltd. enabling it to pursue attractive scalable with consumer / opportunities addressing industries such as customer centricity Aeros
Slide 23: Joint Venture with an International Partner
Joint Venture with an International Partner • Kaman Aerospace Group, USA (A NYSE listed entity) is a well-diversified Company conducting business in the aerospace, medical and industrial markets • Headquartered in Bloomfield, Connecticut, was incorporated in 1945 • The Company has an outstanding por
Slide 24: Kineco's 'Make in India' Footprint
Kineco’s ‘Make in India’ Footprint First and the only Indian Company to Kineco stall at the ‘Make in India’ manufacture Composite Sonar domes for project was visited by Mr. Rajnath Naval war ships. Nominated by Indian Navy Singh (Defense Minister) as a Sole Supplier 23
Slide 25: Industry Outlook – Composites
Industry Outlook ꟷ Composites Railways Aerospace Defence Industrial & Telecom Other Emerging Trends • India has the fourth-largest • India is the 7th largest civil • India’s defence • Proven performance in • Other growth areas that railway system in the world, aviation market in the world manufactur
Slide 26: Financial and Operational Overview
FINANCIAL AND OPERATIONAL OVERVIEW
Slide 27: Consolidated Financial Highlights (Last 5 Years)
Consolidated Financial Highlights (Last 5 Years) Revenue (Rs. Mn.) EBITDA (Rs. Mn.) INL Kineco INL Kineco INL Margin Kineco Margin Linear (INL Margin) 1,451 21.1% 1,784 17.9% 17.7% 16.0% 613 1,263 1,185 13.4% 376 232 3,581 3,868 212 8.8% 2,850 3,169 3,297 82 224 6.3% 7.4% 5.9% 7.0% 340 224 212 187 2
Slide 28: Balance Sheet Snapshot (Consolidated)
Balance Sheet Snapshot (Consolidated) As on 31st As on 31st Particulars March, 2020 March, 2021 Assets Non-current assets 1,916 1,861 Current assets 3,046 3,270 Total Assets 4,962 5,131 Liabilities Shareholders Funds 2,451 2,726 Non-current liabilities 581 646 Current liabilities 1,930 1,759 Total l
Slide 29: Financial Ratios (Consolidated)
Financial Ratios (Consolidated) Particulars FY17 FY18 FY19 FY20 FY21 Debt to Equity 0.2 0.2 0.4 0.4 0.4 Debt to EBITDA 1.5x 1.1x 2.2x 1.7x 1.8x Net Debt to Equity 0.2 -0.02 0.2 0.2 0.2 Net Debt to EBITDA 1.0x -0.1x 1.0x 0.8x 1.1x Return on Equity (%) 10% 14% 11% 4% 12% Return on Capital Employed (%)
Slide 30: Key Takeaways
Key Takeaways Nearing 50 years of Inorganic business to history in battery further drive uptick in business - profitability and improve Wide Distribution return ratios going forward Transforming into a Network & established Economic and strong retail Supply Chain - Well- Fundamental trends are compa
Slide 31: About Indo National Ltd.
About Indo National Ltd. Indo-National Ltd. (formerly, Nippo Batteries Company Ltd.) is a leading manufacturer of Dry-cell Batteries in India. Headquarted in Chennai, it is the second-largest player in For further information, please contact: the industry, with a production capacity of 800 million b
Slide 32: NIBO Energising Lives
NIBO ENERGISING LIVES
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