Bil Vyapar Ltd · NSE:BILVYAPAR
Bil Vyapar — Mukundan Holdings — Debt Investor Presentation (May 2008)
36 slides from Bil Vyapar's debt investor presentation, May 2008
Slide 1: Mukundan Holdings Ltd. US$85 Million Term Loan Facility Lenders' Presentation
Mukundan Holdings Ltd. (A subsidiary of Binani Cement Ltd.) US$ 85 Million Term Loan Facility Lenders’ Presentation May 2008 Mandated Lead Arrangers
Slide 2: Disclaimer
Disclaimer This presentation contains statements that constitute “forward looking statements” including, without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Binani Cement Limited’s (“the Company’s” or “BCL’s” )future business devel
Slide 3: Agenda
Agenda Introduction Company Summary & Key Management Cement: Growth Trends in Emerging Markets Binani: A Pan Asia Growth Play Robust Operations/Financials Consolidation of Business Syndication Overview Q&A 2
Slide 4: Company Summary & Key Management
Company Summary & Key Management Cement: Growth Trends in Emerging Markets Binani — A pan-Asia growth play Robust operations/financial Consolidation of Business Syndication Overview 3
Slide 5: Company Summary
Company Summary History Founded (1996), IPO (2007) Antecedents Flagship Company of the Braj Binani Group (founded in 1872) with interest also in zinc, glass fibre and composites Ownership Shareholders Shareholding % Binani Industries Ltd. 64.9% J P Morgan 14.9% Credit Suisse 9.1% Public 11.1% Capaci
Slide 6: Company Summary (Contd.)
Company Summary (Contd.) Dealers/ Market 68/2,360 (Dec’07) Organizers FY08 Production 1,264,221 MT of Ordinary Portland Cement (“OPC”), 1,694,231 MT of Pozzolana Portland Cement (“PPC”) Market Cap US$615 mn as on Jan 14, 2008 Financial Performance Particulars FY07 (mn) FY08 (mn) % Inc over 2007 Net
Slide 7: Key Management
Key Management Mr. Vinod Juneja M.Com, LLB, Phd, with 33 years of experience in commercial, development & private sector banking MD,Braj Binani Group of Industries Mr M K Chattopadhyaya Bachelor of Commerce (Honours), LLB, FCA, FCS. Has over 25 years of experience in Accounts, Chief Financial Of
Slide 8: Cement: Growth Trends in Emerging Markets
Company Summary & Key Management Cement: Growth Trends in Emerging Markets Binani—A pan-Asia growth play Robust operations/financial Consolidation of Business Syndication Overview 7
Slide 9: Strong Tailwind for Cement Industry in Emerging Markets
Strong Tailwind for Cement Industry in Emerging Markets Markets Key drivers Experiencing a strong investment cycle(1), encompassing India ¾ Infrastructure (c. $500bn targeted by government over FY08-12) ¾ Industrial capex (c. $300-350bn over FY08-11) ¾ Real estate (3.4bn sq ft of annual constructi
Slide 10: Growth Trends – India
Growth Trends – India India’s per capita cement consumption of 106 kg p.a. significantly lower than world average of 260 kg p.a. India: Cement Capacity & Production India: Capacity & Demand Growth 180 166 100% 12.0% 152 157 155 10.1% 160 146 142 95% 10.0% 140 126 94% 8.1% 118 Capacity U tilisation
Slide 11: Growth Trends – India (Contd.)
Growth Trends – India (Contd.) Growing demand-supply gap - Demand is growing at 7.0%-8.0% p.a., Supply growth has been constrained due to limited brown field additions. Cyclical nature with growth in economy - Demand growth mainly due to the boom in housing sector, which increases spending for i
Slide 12: China Cement Sector
China Cement Sector Cement production in China Since 1980s, China has been the world’s largest cement producer 1,400 The PRC cement industry is localized and very 1,240 fragmented. Currently there are over 5,000 1,200 % cement producing entities 13.4 1,062 = NDRC issued the Cement Industrial Dev
Slide 13: China Cement Sector
China Cement Sector Future growth drivers With continuing economic development, property construction and Fundamental demand fixed asset investment in infrastructure will continue to drive in construction cement demand Closure of small kilns NDRC plans to shut down around 130m tonnes of small ve
Slide 14: UAE Cement Sector
UAE Cement Sector Future growth drivers domestic factories, despite producing at virtually full capacity, have not been able to meet the country’s requirement. Demand Supply Mismatch The first consequence of this has been that imports, which were virtually negligible, have increased significantl
Slide 15: Binani – A pan-Asia growth play
Company Summary & Key Management Cement: Growth Trends in Emerging Markets Binani — A pan-Asia growth play Robust operations/financial Consolidation of Business Syndication Overview 14
Slide 16: Binani – Unique Pan-Asia Growth Play
Binani – Unique Pan-Asia Growth Play 1.2 mtpa grinding capacity at Jebel Shandong Binani Rongan Industrial area, Dubai Cement Company 0.5mtpa clinker and 0.3mtpa cement grinding unit limestone reserves of 148m tonne India- 6 mtpa aggregate -integrated cement facility in Rajasthan (Binanigram & Neem
Slide 17: Product Profile
Product Profile Production Mix 2 OPC is used for general construction purposes such as 1.8 1.72 1.69 building roads, high-rise buildings and bridges, while PPC 1.6 1.6 1.45 is more durable and therefore used for mass concreting, 1.4 1.26 such as in the construction of dams and barrages. 1.19 1.24
Slide 18: Robust Operations/Financials
Company Summary & Key Management Cement: Growth Trends in Emerging Markets Binani — A pan-Asia growth play Robust operations/financial Consolidation of Business Syndication Overview 17
Slide 19: Consistently Improving Operating Efficiency
Consistently Improving Operating Efficiency Power Consumption Power consumption at about 75 KW per ton in FY2007 Consumption/tonne Contribution in CPP ¾ Captive plant meets 70-75% of the demand 90 80 77 77 73 75 71 70 63 ¾ Use of high quality imported coal blended with lignite have reduced 60 59 5
Slide 20: Financials Binani Cement Ltd. (BCL)
Financials Binani Cement Ltd. (BCL) (USD ‘Mn) FY2005 FY2006 FY2007 FY2008 Revenues 110.02 123.32 171.09 247.95 EBITDA 25.34 33.79 58.16 86.74 Interest 13.08 8.54 8.16 11.61 Depreciation 10.50 10.72 10.87 13.91 PAT 1.61 13.24 23.91 43.95 Net Fixed Assets (incli. CWIP) 132.53 148.97 252.57 304.93 Inve
Slide 21: Financial Parameters
Financial Parameters Cement Production Sales 3.5 300 2.96 3 244.7 250 2.43 2.5 2.2 2.24 2.31 200 170 mmtpa 2 US$ 150 122.1 1.5 109.5 93.7 100 1 0.5 50 0 0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2004 FY2005 FY2006 FY2007 FY2008 Realisation/ton 90 78.4 80 70.6 70 60 52.1 48.9 50 42.8 US$ 40 30 20 10 0 F
Slide 22: Financial Parameters
Financial Parameters Total Income Interest 300 16 14 248 14 13 250 11.6 12 200 170 10 8.6 8.2 US$ US$ 150 123.3 8 110 94.8 6 100 4 50 2 0 0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2004 FY2005 FY2006 FY2007 FY2008 Source: Company Source: Company EBITDA & EBITDA % to Total Income PAT & PAT% to Total Inco
Slide 23: Financial Parameters
Financial Parameters Debt/Equity Debt/EBITDA 2.5 6 2.3 2.3 2.3 5 5.1 2 1.9 1.9 4.2 4.2 4 1.5 3 3 1 2.3 2 0.5 1 0 0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2004 FY2005 FY2006 FY2007 FY2008 EBITDA/Interest 8 7.5 7 7 6 5 4 3.8 3 2 1.9 1.7 1 0 FY2004 FY2005 FY2006 FY2007 FY2008 22
Slide 24: Recent Developments
Recent Developments BCL enters into the Chinese and Global Markets In August 2007, BCL acquired 70% stake with management control in M/s.Krishna Holdings Pte, Singapore [50% of equity capital & 100% of preference capital] which holds 70% in Shandong Binani Rongan Cement Company Limited. 30% is hel
Slide 25: Expansion Planned/Commissioned
Expansion Planned/Commissioned Expansion project which included increasing production capacity from 2.25mtpa to 6mtpa commissioned by increasing capacity at Sirohi plant to 4.5 mtpa and a new plant with 1.5 mtpa at Neem ka thana, Rajasthan. Cement sales in Rajasthan, Gujarat, Northern Capital Regi
Slide 26: Consolidation of Business
Company Summary & Key Management Cement: Growth Trends in Emerging Markets Binani — A pan-Asia growth play Robust operations/financial Consolidation of Business Syndication Overview 25
Slide 27: Consolidation of Business
Consolidation of Business The Group has consolidated all its cement businesses under BCL. The Indian facility is directly owned by BCL and facilities in Dubai and China are owned by through SPV Subsidiaries viz. Krishna Holdings Pte Ltd, Singapore and Mukundan Holdings Limited, BVI (MHL) Term Lo
Slide 28: Transaction Structure
Transaction Structure Binani Cement Ltd. 50% of equity capital and 100% of (BCL) Preference capital 100% USD 5 mn Debt USD Mukundan Holdings USD Krishna Holdings Promoter B.V.I. (SPV) 25 mn (Singapore SPV) 85mn 50% of USD Equity 49% 25 mn 70% Capital USD 55 mn Local BCF Dubai SBRCC China 30% Partner
Slide 29: Key Investment Considerations
Key Investment Considerations Leading Cement Producers in High Growth North Indian Cement Market Locational advantage to the Company as its limestone reserves are at a close proximity to its plant Focus on integration of International Operations and Captive Facilities Control over Key Compon
Slide 30: Syndication Overview
Company Summary & Key Management Cement: Growth Trends in Emerging Markets Binani — A pan-Asia growth play Robust operations/financial Consolidation of Business Syndication Overview 29
Slide 31: Syndication Overview
Syndication Overview Borrower Mukundan Holdings Limited Amount USD 85 million Facility Type Term Loan facility Purpose For acquisition of 49% shareholding in Dubai, 30% shareholding in the Singapore SPV and expansion of production facilities in China unit. Tenor 4 years from the date of utilization
Slide 32: Financial Covenants
Financial Covenants Year Ending Mar 31 FY 2009 FY2010 FY2011 FY2012 Projected Ratio: Net Borrowings/EBITDA 2.28 2.28 2.31 2.29 Net Borrowings/Equity 1.05 0.85 0.72 0.60 DSCR 2.13 1.75 1.92 2.10 Financial Covenants: Net Borrowings/EBITDA 3.00 3.00 3.00 3.00 Net Borrowings/Equity 2.00 2.00 2.00 2.00 D
Slide 33: Syndication Calendar
Syndication Calendar May 2008 June 2008 M T W T F S S M T W T F S S 1 2 3 4 30 1 5 6 7 8 9 10 11 2 3 4 5 6 7 8 12 13 14 15 16 17 18 9 10 11 12 13 14 15 19 20 21 22 23 24 25 16 17 18 19 20 21 22 26 27 28 29 30 31 23 24 25 26 27 28 29 May 5, 2008 Launch of syndication May 12, 2008 Road show at Singapo
Slide 34: Stills from the Plant (Sirohi, Rajasthan)
Stills from the Plant (Sirohi, Rajasthan) 33
Slide 35: Thank You
Thank You
Slide 36: Binani
Binani BRAJ BINANI GROUP
Mukundan Holdings — Debt Investor Presentation (May 2008) on 6ix