Rain Industries Limited · NSE:RAIN
Rain Industries — Investor Presentation (May 2015)
34 slides from Rain Industries's investor presentation, May 2015
Slide 1: Rain Industries Limited Corporate Presentation – May 2015
Rain Industries Limited (Formerly Rain Commodities Limited) Corporate Presentation – May 2015
Slide 2: Forward Looking Statement
Forward Looking Statement Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking information is based on information av
Slide 3: Rain Group – Business Verticals and Geographical Presence
Rain Group – Business Verticals and Geographical Presence
Slide 4: Rain Group – Business Verticals
Rain Group – Business Verticals Rain Group • Manufacturing and sale of Calcined Chemical • Distillation and sale of primary Carbon Petroleum Coke (“CPC”), Coal Tar Pitch Products Products coal tar distillates into chemical (“CTP”) , Naphthalene, Co-generation products such as: of energy and trading
Slide 5: Rain Group – Key Milestones
Rain Group – Key Milestones • Merger of RCL with Rain Rain Calcining Ltd. (RCL) Commodities Ltd. begins operations in • Acquisition of CII Setting up of Group’s fifth Completed Brownfield expansion Visakhapatnam, India with (the 2nd largest Calciner at Waste-heat recovery of Phthalic Anhydride (“PA”
Slide 6: Diversified Geographical Profile
Diversified Geographical Profile Europe • 3 Carbon Facilities • 4th Carbon Facility in Russia is under construction • 3 Chemical Facilities North America • 7 Carbon Facilities (Including 3 River Terminals Africa and 4 Waste-heat recovery Asia facilities) • 1 Carbon Facility in Egypt • 1 Carbon Facil
Slide 7: Industry Updates
Industry Updates RIL
Slide 8: Overview of Calcined Petroleum Coke ("CPC") Industry
Overview of Calcined Petroleum Coke (“CPC”) Industry Oil Refining Industry Coke Calciners Aluminum Industry Calcined Petroleum Coke Captured through calcining process CPC <10% of Production Cost Green Petroleum Coke - A by-product Not economically viable substitute for CPC in Critical in the val
Slide 9: Overview of Coal Tar Pitch ("CTP") Industry
Overview of Coal Tar Pitch (“CTP”) Industry Steel Industry Coal Tar Distillers Aluminum Industry Pitch ~48% Aromatic Oils ~40% Naphthalene Oil ~12% Pitch <5% of Production Cost Coal Tar - A by-product No economically viable substitute for Critical in the value chain of coal tar Coke production
Slide 10: Overview of Chemical Products of Rain Group
Overview of Chemical Products of Rain Group Chemicals Superplasticizer Resins & Modifiers Aromatic Chemicals Chemical Trading Key Raw Materials Naphthalene oil Carboindene Carbolic oil Crude benzene/benzene C9 feedstock Anthracene oil Products Superplasticizer Resins Phenol Crude
Slide 11: Aluminum Industry Outlook
Aluminum Industry Outlook Global Aluminum Consumption Global Aluminum Production (Mt in millions) (Mt in millions) CAGR: ~4.9% CAGR: ~4.7% 63.1 65.5 60.7 63.5 63.2 60.7 57.3 57.6 54.1 54.1 50.3 48.0 50.6 45.0 47.3 45.7 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2011 2012 2013 2014 2015F 2016F 2017F
Slide 12: Aluminum Industry Outlook (Contd.)
Aluminum Industry Outlook (Contd.) Aluminum Price Forecast - (US$ per MT) Total metal stocks and days of inventory 2,419 14,000 110 2,500 99 2,343 95 95 2,288 100 2,300 2,195 89 12,000 86 81 90 2,049 2,045 75 2,100 80 1,938 10,000 68 1,887 1,892 13,450 13,464 12,773 13,109 13,128 12,327 62 70 1,900
Slide 13: Market - Key Quotations
Market - Key Quotations Fuel Oil Orthoxylene 800 1,200 700 1,100 600 1,000 500 900 800 400 700 300 600 200 500 100 400 0 300 Av. (spot price) orthoxylene Av. (spot price) orthoxylene 2009- today Av. Fuel oil 1% Average EUR Fuel oil 1% Benzene Naphthalene 1,200 850 1,100 750 1,000 900 650 800 550 700
Slide 14: Foreign Exchange Movements
Foreign Exchange Movements EURO to US$ US$ to INR 1.40 68 1.30 63 1.20 58 1.10 53 1.00 48 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 December 2012 – March 2015 US$/EUR Movement December 2012 – March 2015
Slide 15: Rain Group – Financial Snapshot
Rain Group – Financial Snapshot
Slide 16: Corporate Highlights – Expansion Projects
Corporate Highlights – Expansion Projects Coal Tar Distillation Plant in Russia: New Coal Tar Distillation Plant with a capacity of 300,000 TPA is being developed in Cherepovets, Russia via Joint Venture with OAO Severstal, Russia. Plant is expected to be operational during Fourth quarter of CY 20
Slide 17: Consolidated Financial Performance
Consolidated Financial Performance 117,336 12,220 25,289 25,899 30,843 3,135 3,235 1,577 Q1 15 Q4 14 Q1 14 CY 14 Revenue Adjusted (INR Millions) EBITDA Q1 15 Q4 14 Q1 14 CY 14 (INR Millions) PAT PAT Adjusted Earnings Per Adjusted (INR (INR Millions) Millions) Share EBITDA(INR) Margin (%) 12% 2,561 1
Slide 18: Business Concentration – Q1-2015
Business Concentration – Q1-2015 Revenue Breakdown EBITDA Breakdown Chemical Chemical Carbon 20% Carbon 15% 70% 73% Cement Cement 10% 12% 18
Slide 19: Carbon Products – Sales Volumes
Carbon Products – Sales Volumes 1.00 0.90 Sales Volume in Million Tons 0.80 0.13 0.21 0.06 0.09 0.14 0.21 0.13 0.18 0.70 0.07 0.60 0.26 0.29 0.28 0.24 0.25 0.28 0.25 0.50 0.25 0.26 0.40 0.30 0.44 0.42 0.44 0.20 0.41 0.40 0.41 0.39 0.38 0.37 0.10 - Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-1
Slide 20: Carbon Products – Revenues & EBITDA Margins
Carbon Products – Revenues & EBITDA Margins 60% 24,000 55% 22,000 625 2,257 50% 722 1,165 20,000 1,038 1,031 767 Revenue INR in Million 45% 18,000 1,615 1,314 40% 16,000 Margin in % 12,371 11,391 10,575 35% 14,000 10,196 11,411 11,864 11,322 30% 12,000 9,435 8,630 25% 10,000 8,000 20% 16% 15% 14% 13
Slide 21: Chemicals – Revenue & EBITDA Margins
Chemicals – Revenue & EBITDA Margins 7,000 50% 45% 6,000 40% Revenue INR in Millions 5,000 35% EBITA Margin 30% 4,000 25% 5,336 5,872 6,656 6,071 6,504 6,539 20% 6,290 3,000 5,296 15% 4,999 9% 2,000 7% 10% 7% 13% 11% 11% 12% 10% 5% 1,000 -2% 0% - -5% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q
Slide 22: Cement – Revenue & EBITDA Margins
Cement – Revenue & EBITDA Margins 3,000 721 800 700 562 600 2,500 500 EBITA Margin INR Per MT Revenue INR in Millions 400 402 300 2,000 334 381 200 195 210 100 1,500 - 34 -100 2,623 -200 1,000 -142 -300 -400 -500 500 -600 2,260 2,252 1,901 1,983 1,922 2,183 2,330 2,300 -700 - -800 Q1-13 Q2-13 Q3-13
Slide 23: Consolidated Financial Leverage
Consolidated Financial Leverage Equity Net Debt in INR and US$ 32,233 29,458 26,627 1,203 1,066 1,051 US$ Millions 25,517 INR Millions INR Millions 21,209 729 578 615 13,933 536 12,104 413 74,459 67,535 65,800 8,398 35,333 28,574 26,964 27,543 22,611 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14
Slide 24: Term Debt Profile
Term Debt Profile As at March 31, 2015 Type of (US$ Millions) Amount Rate Remarks interest Bullet repayment in 2018 and US$ Millions Senior Secured Notes 1,007 Fixed rate 8.21% 2021. Debt as at March 31, 2015 1,112 External Commercial Quarterly installments up to 41 Floating rate 4.00% Scheduled Rep
Slide 25: Senior Secured Notes / Bonds
Senior Secured Notes / Bonds (Issued by Rain CII Carbon LLC, US ) Out-standing Scheduled Redemption Option Issue Date Interest Issue Amount As on Mar 15 For On or After / (in Millions) (US$ in Millions) Repayment (Redemption Premium Payable) Dec 2010 8.00% US$ 400 380 Dec 2018 December 1, 2014 [4% *
Slide 26: Key Strengths
Key Strengths One of the leading Global Market Producer of Presence with Carbon and Chemical World-class Asset Base products Experienced Diversified and Proven Product Portfolio Management Team Rain Group Long Term Relationship Positioned to benefit from with high quality Suppliers long-term demand
Slide 27: Key Areas of Focus
Key Areas of Focus De-leveraging Balance Sheet Refinancing high-cost debt with low-cost debt Improving operational efficiency Timely Completion of Expansion Projects Expanding R&D initiatives to create more environment friendly Carbon Successful implementation of these initiatives would substantiall
Slide 28: Annexures
Annexures
Slide 29: RIL Share Holding Pattern
RIL Share Holding Pattern Dec 31, 2014 Mar 31, 2015 Domestic Foreign Institutions Domestic Foreign Institutions Institutions 16.6% 15.7% Institutions 17.2% 15.7% Public 26.8% Public 26.2% Promoters Promoters 40.9% 40.9% 29
Slide 30: Pay-out Ratio
Pay-out Ratio Reported PAT Buy Back Dividend INR Millions 8,000 2,000 Cumulative Number of Shares Bought Back: 23.83 Millions (of INR 2 each) Cumulative Amount Spent for Buy-Back: INR 795 Million 1,800 7,000 1,600 6,000 1,400 5,000 1,200 4,000 1,000 6,641 760 726 800 3,000 482 600 4,438 440 4,577 2,
Slide 31: Consolidated Key Performance Indicators
Consolidated Key Performance Indicators INR Millions Q1 2015 CY 2014 CY 2013 CY 2012 CY 2011 CY 2010 Revenue from operations (1) 25,390 119,370 117,443 53,615 56,395 37,857 Operating Profit (2) 3,135 12,220 14,978 11,090 13,873 7,559 Reported PAT 843 885 3,845 4,577 6,641 2,407 Adjusted PAT (3) 843
Slide 32: Frequently Asked Questions
Frequently Asked Questions • What is the Impact of falling Crude Oil / Commodity prices on the businesses carried-out by Rain? o Prices of CPC and GPC are not indexed to Crude Oil or other Commodity prices and they are influenced by their own supply-demand dynamics. Although, prices of both GPC and
Slide 33: Frequently Asked Questions
Frequently Asked Questions • What are the plans for de-leveraging the Company, considering the high-leverage? o Gross debt of the Company has reduced by US$ 25 million from US$ 1,211 million as on Dec. 31, 2014 to US$ 1,186 million as on Mar. 31, 2015. Net debt during the same period reduced by US$
Slide 34: Contact details
In case of any further details, please contact: India: US: Anil Kumar Upadhyay Ryan Tayman Phone: +91 40 4040 1234 Tel: +1 203 5172 822 Direct: +91 40 4040 1252 Email: rtayman@raincii.com Email: anilkumar@raincii.com www.raincii.com www.Rütgers-group.com/en www.rain-industries.com 34