Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Investor Presentation (September 2023)
32 slides from Neogen Chemicals's investor presentation, September 2023
Slide 1: Exploring New Horizons
Expanding Capabilities Exploring New Horizons Investor Presentation September 2023
Slide 2: Introduction to Neogen Chemicals
Introduction to Neogen Chemicals 2
Slide 3: Neogen Chemicals – At a Glance
Neogen Chemicals – At a Glance 4 ISO 9001:2015, ISO Manufacturing 248 Sites + 2 R&D 10% 29 14001:2015 & ISO 4,825 33% 35% 45001:2018 Facilities Products Infrastructure Of workforce Exporting Manufacturing units certified on Net worth - 5-year 5-year PAT developed by in R&D team countries Quality & S
Slide 4: Evolution of Neogen Chemicals
Evolution of Neogen Chemicals 1970’s to 1991 Pre-Neogen 1991 to 2016 Pre-expansion 2016 to 2023 Present Mr. HT Kanani graduated as a Chemical ‘Neogen Chemicals’ commenced Acquired 12 acres of land in Dahej for Greenfield expansion in 2015 Engineer and started his association with business oper
Slide 5: Key Milestones
Key Milestones Leading manufacturer of Bromine and Lithium-based specialty chemicals since 1989 Signed agreement with MU Ionic Solutions Corporation, Japan in April 2023 to acquire manufacturing technology license for electrolytes in India Acquired 100% stake in BuLi Chem from Livent in May 2023 to
Slide 6: Business Snapshot
Business Snapshot Bromine Compounds Pharmaceuticals Organic compounds containing chlorine, fluorine, iodine-based End User Industries combinations thereof and others including grignard reagents Agrochemicals Organic Advanced Intermediates Combining bromination with other chemistries to create forwar
Slide 7: Our Value Proposition
2Z NEOGEN HEMICALS LTD Our Value Proposition
Slide 8: Our Advantage
Our Advantage 30+ year operating history of manufacturing and sale of bromine and lithium based Focus on sustainability and CSR specialty chemicals to marquee clients, in an industry characterized by high barriers to 6 1 entry Consistent delivery on growth Strongly placed to capitalize the and margi
Slide 9: 30+ Years of Experience in Manufacturing Bromine and Lithium based Specialty Chemicals
30+ Years of Experience in Manufacturing Bromine and Lithium 1 based Specialty Chemicals Our Focus: High end and niche specialty chemicals Serving a Marquee Clientele Base* Product Basket Expansion Journey 244 189 205 156 95 57 4 12 20 FY 1991 1996 2001 2006 2011 2016 2018 2020 2023 (INR mn) Others,
Slide 10: Market Characterized by High Entry Barriers
1 Market Characterized by High Entry Barriers Domestic, Exporting to 29 countries, with key export 52% geographies in United States, Europe, Japan and Middle East FY23 revenue INR 6,860 mn Significant time and Export, 48% cost for customer to switch vendors, especially when vendor End applications f
Slide 11: Bu-Li Acquisition for Organo - Lithium Chemistry
1 Bu-Li Acquisition for Organo - Lithium Chemistry Will further strengthen the advanced intermediates and CSM manufacturing business BuLi Chem owns the Acquiring Unlocks deep technology to established & Expertise in synergies by Manufacturing proven technology manufacture N Butyl manufacturing for h
Slide 12: Battery Chemicals: Value Chain
2 Battery Chemicals: Value Chain Leveraging existing capabilities to forward integrate into a next gen market Planned entry into electrolytes for Lithium-ion batteries Lithium-ion battery (3.7v) Approximate Cost Component Break up* Lithium Lithium-Ion Value Chain Electrolytes Electrolyte Salts Batte
Slide 13: First Mover Advantage and Reputation as Trusted Supplier for Indian Electrolyte Demand
First Mover Advantage and Reputatation as Trusted Supplier for 2 Indian Electrolyte Demand led by MUIS-Neogen License Agreement FIRST Ever License Issued by MU Ionic Solutions Corporation (MUIS) Anywhere in the Globe License to manufacture electrolyte materials using globally acclaimed technology &
Slide 14: Significant Opportunities in the Indian Lithium-ion Battery sector
2 Significant Opportunities in the Indian Lithium- ion Battery sector Demand Estimates for the Indian Market Lithium Cells (GWh) 10+ companies in India in the process of establishing Giga factories ACC WINDOW (2024-28) 160 with targeted annual cell production of 5 GWh – 40 GWh by 2030 110 80 60 40 1
Slide 15: Battery Chemicals Expansion Plans
2 Battery Chemicals Expansion Plans Commercial terms including discussion around MOU for Sep 2025* Electrolyte started with 3-4 Indian cell manufacturers Electrolytes: 10,000 MT Dialogue for Lithium Electrolyte Salt supplies is ongoing with Lithium Electrolyte Salts**: more than 10 international
Slide 16: Wholly Owned Subsidiary (WOS) for Battery Chemicals business
2 Wholly Owned Subsidiary (WOS) for Battery Chemicals business Battery Chemicals business will commence in a separate entity namely Neogen Ionics Limited, which will be a wholly owned subsidiary of Neogen Chemicals Limited. Distinct demand supply dynamics High volume business: Battery and CAPEX requ
Slide 17: Robust Manufacturing Expertise and Strong Supply Chain
3 Robust Manufacturing Expertise and Strong Supply Chain Strong Manufacturing Infrastructure Land Factory Land Area Capacity Certifications of Manufacturing Facilities Utilisation Organic Inorganic Chemicals Chemicals (Reactor (Tonnage) capacity) Mahape (Since 1991) 1 acre 100% 69 m3 9 m3 ISO 9001:2
Slide 18: Excellent R&D Capabilities
3 Excellent R&D Capabilities Post commissioning of dedicated R&D units in 2001, the product portfolio Dedicated QC and CMD and MD are actively has grown from 20 QA team in place involved and spend products in 2001 to monitoring the entire significant time overseeing 248 products in Q1 manufacturing
Slide 19: Led by Technocrat Promoters and Board of Directors (1/2)
Led by Technocrat Promoters and Board of Directors comprising 4 Technical and Financial experts (1/2) Mr. Haridas Kanani, Dr. Harin Kanani, Promoter, Chairman & Managing Director Promoter & Managing Director Bachelor’s degree in chemical engineering from the Indian Institute of Technology (IIT), B
Slide 20: Led by Technocrat Promoters and Board of Directors (2/2)
Led by Technocrat Promoters and Board of Directors comprising 4 Technical and Financial experts (2/2) Prof. Ranjan Kumar Malik, Avi Sabavala, Independent Director Independent Director Gold medallist, BSc. (Chemical engineering), University of Kanpur Bachelor’s in science (honours) and a master’s
Slide 21: Consistent Delivery on Growth and Margins to create Shareholders' Wealth
Consistent Delivery on Growth and Margins to create 5 Shareholders’ Wealth Net Revenue from Operations* (INR mn.) EBITDA (INR mn.) EBITDA Margin (%) 6,862 19.0% 19.2% 1,116 17.7% 18.2% 17.8% 866 16.3% 4,873 647 3,364 582 3,061 2,391 435 1,640 290 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY2
Slide 22: Focus on Environment and Sustainability
6 Focus on Environment and Sustainability Energy Conservation Switched from Light Diesel Oil (LDO) to PNG for generating steam at its Mahape Plant, Uses PNG/CNG (which is a clean fuel) instead of other fuels to generate steam at its Dahej plant Good Manufacturing Practices (GMP) Zero Liquid (ZLD
Slide 23: Measurable CSR impact
6 Measurable CSR impact Rural Water Health and Development Resource Environment Education Sanitation and Wealth Management Generation 10,000+ 5,000 - 10,000 300+ 100+ 30+ People benefitted Beneficiaries Farmers Students Beneficiaries Laid pipeline for potable water Provided fully equipped, free
Slide 24: Way Forward
Way Forward Increasing Custom Synthesis & Foray into sunrise sector of Contract Manufacturing portfolio Lithium-Ion Batteries Expanding production capacities Focus on operational efficiency Focus on advanced speciality and functional excellence intermediates 24
Slide 25: Annexures
Annexures 25
Slide 26: Financial Table – Profit & Loss Statement (Consolidated)
Financial Table – Profit & Loss Statement (Consolidated) Particulars (INR mn) FY21 FY22 FY23 Q1 FY24 Q1 FY23 FY21-23 Revenue 3,364 4,873 6,862 1,649 1,479 42.8% Expenditure 2,717 4,007 5,746 1,368 1,233 EBITDA 647 866 1,116 281 247 31.3% Margins 19.2% 17.8% 16.3% 17.0% 16.7% Depreciation 69 117 162
Slide 27: Financial Table – Balance Sheet (Consolidated)
Financial Table – Balance Sheet (Consolidated) INR mn FY21 FY22 FY23 INR mn FY21 FY22 FY23 Current Assets Current Liabilities Cash and Cash Equivalents 12 452 207 Trade Payables 661 989 1,566 Investments - 808 761 Borrowings 858 1,032 2,331 Trade Receivables 786 1,095 1,774 Lease Liabilities 40 21 2
Slide 28: Key Performance Highlights – Q1 FY24 (Consolidated)
Key Performance Highlights – Q1 FY24 (Consolidated) BuLi Chem started commercial production under Neogen Chemicals mgt. in Q1 FY24 and already commenced sales. Significantly contributions are expected from BuLi Chem in Q2 FY24 and thereafter expected to meaningfully increase in the second half N
Slide 29: Financial Summary – Q1 FY24 (Consolidated)
Financial Summary – Q1 FY24 (Consolidated) Organic Inorganic Strong topline performance was achieved despite global headwinds that impacted the INR Mn industry like inventory destocking, rapid re-opening of China and slowdown in EU and other REVENUE Q1 FY24 1,210 440 1,650 markets 11% Revenue in
Slide 30: Seasonal Variance Factors
Seasonal Variance Factors Neogen’s business has some seasonal drivers, due to which the company tends to deliver stronger financial performance in the second half of the financial year (October to March). Seasonal variance is driven by strong demand from Europe as orders tend to scale up in Octobe
Slide 31: Safe Harbour
Safe Harbour Certain statements in this document may be forward- looking statements. Such forward looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ
Slide 32: Thank You
Thank You
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