Nuvoco Vistas Corporation Limited · NSE:NUVOCO
Nuvoco Vistas — Q1 FY2022 Earnings Presentation
38 slides from Nuvoco Vistas's earnings presentation, Sep 6, 2021
Slide 1: Exchange intimation letter: Investor and Analyst Conference Call presentation
NUVOCO VISTAS CORP. LTD. N~ O® Shaping a new world Ref. No.: Sec/71/2021-22 ~ September 6, 2021 BSE Limited National Stock Exchange of India Phiroze Jeejeebhoy Towers, ·Dalal Street, Limited Fort, Mumbai - 400 001 Exchange Plaza, C-1, Block G, Scrip Code: 543334 Sandra Kurla Complex, Sandra (East),
Slide 2: Investor Presentation Q1 FY 2022
INVESTOR PRESENTATION Q1 FY 2022 1
Slide 3: Content Flow
Content Flow Economy Key Company IPO Business Key & ESG Projects Overview Update Strategy Financials Industry Update GLOSSARY : Mn T – Million Ton ; MTPA–Million Tons Per Annum; MW–Mega Watts; Q1 - April to June; FY – Financial Year ( April- March)
Slide 4: Company Overview
Company Overview Sheping a new world
Slide 5: Vision, Mission, Values
VISION Building a safer, smarter and sustainable world MISSION Leading Building Material Company Delivering Superior Performance VALUES
Slide 6: Nuvoco at a glance
Nuvoco at a glance… Nuvoco - Major player in the building materials industry with diverse product portfolio We are the #1 cement company in East India and the 5th largest in India 23.82 MTPA Installed cement capacity Fastest growing cement Strategically located production company facilities in close
Slide 7: Fastest growing + Strong Operational Footprint
Fastest growing + Strong Operational Footprint Strategically located cement plants & Fastest growing cement company pan-India RMX presence Cement capacity evolution (MTPA) Cement – Integrated unit Cement – Grinding unit Cement – Blending Unit North Limestone reserve 23.82 10x capacity 12 RMX plants
Slide 8: Comprehensive Portfolio: Market Leading Brands
Comprehensive Portfolio : Market Leading Brands Cement Well developed brand verticals offering unique selling propositions, across wide demography with multiple price points Ready-Mix Concrete (RMX) Modern Building Materials Well diversified range for company to foray from cement to building materia
Slide 9: Strong R&D and technical capabilities
Strong R&D and technical capabilities ◼ Dedicated Construction Development and Innovation Centre (CDIC) located in Mumbai ◼ 17,500 sq. feet, NABL1-accredited facility serving as an incubation centre for innovative products Innovative products Cement with Ready-to-use wet Quick-setting OPC added micr
Slide 10: Successful track record of sustained growth
Successful track record of sustained growth • Nirma enters cement space in 2014 through Nimbol plant • Nirma group acquired Lafarge India business in 2016 (NVCL) • Leveraged the powerful Brands, Premium positioning and strong Trade channel • Focussed on Productivity Improvement • Investment in Capti
Slide 11: Nu Vista acquisition to drive synergy benefits
Nu Vista acquisition to drive synergy benefits Revenue Operational Manufacturing presence in all Range Extension (through Portland Composite Cement) core states in East India (access to production facilities in Bihar and Odisha) Cross selling of brands and logistical Multiple price point strategy (i
Slide 12: IPO Update
IPO Update Sheping a new world 11
Slide 13: Highlights
Highlights • Rs. 5000 Cr – Raised through IPO • Rs. 3500 Cr OFS + Rs.1500 Cr Primary • Successful completion of Listing on 23th August, 2021 • Issue subscribed ~1.7 x • Strong participation from marquee Institutional investors • Proceeds to be used to reduce debt L to R: Mr. Hiren Patel (Chairman, N
Slide 14: Economy & Industry
Economy & Industry Sheping a new world 13
Slide 15: Economy
Economy • Economy has been improving since H2 FY 21 (Q3 GDP – 0.5% ; Q4 GDP – 1.6% ) • Q1 FY 22 marked by • High Inflation (~6% in Q1) • Improved Production (IIP increased by ~14% in June Y-o-Y) • Sequential Improvement in PMI (Manufacturing) – (~55 in June) • Strong Rupee (~3% Gain) • Q1 FY22 GDP -
Slide 16: Industry
Industry Industry • Demand improved in Q1 FY 22 on Y-o-Y basis – Aided by low base of last year • Rural Housing – Major Driver • Infrastructure – Garnered pace Segments Outlook • Affordable Housing – Major Driver Housing • Recovery in urban housing demand in Tier 2 and 3 cities Infrastructure • Focu
Slide 17: Business Strategy
Business Strategy Sheping a new world 16
Slide 18: Revenue growth levers
Revenue growth levers Consolidate and grow market share Strengthen brand outreach Undertake marketing Leverage leadership efforts to strengthen in East and North brand outreach 2.7* MTPA Cement capacity expansion 0.9 MTPA Clinker Debottlenecking Target Central & West India (by using reserves in Karn
Slide 19: Profitability growth levers
Profitability growth levers Price Acceleration Successful integration of Operational efficiency Nu Vista Programme Focus on premiumization Leverage enhanced scale Full benefit of WHR across and maximise incentive all IUs and captive power plant at Sonadih Cement Plant Derive synergy benefits Innovat
Slide 20: Process & Culture levers
Process & Culture levers Culture Process ESG People Decrease Efficient Seamless integration carbon water of people Information footprint management technology Reduce / Increase in Attracting, developing alternate fuel reuse / and retaining talent recycle plastic Integrated business planning Renewabl
Slide 21: ESG
ESG 20
Slide 22: Sustainability – Key Thrust Area
Sustainability – Key Thrust Area • WHR at all integrated plants (~45 MW); • Usage of alternate fuels ~20% of the power mix • Solar plant at Bhiwani & Chittorgarh plants Energy Environment • High end equipments for real time tracking • Focus on reduction in heat consumption & Conservation Friendly an
Slide 23: Pillars of CSR
Pillars of CSR Shikshit Bharat ✓Improved quality of Swastha Bharat education by provision of Saksham Bharat modern education ✓Diversification of livelihood ✓Access to primary health care facilities in ~50 and self-reliance for rural and improved sanitation for government schools community by imparti
Slide 24: CSR Activities in Q1 FY 22
CSR Activities in Q1 FY 22 Shikshit • Youth leadership training programme benefitting 146 people at Risda cement Plant Bharat • Running wall writing campaign - Awareness about environment, health and cleanliness of villages at Risda Swastha • ‘Health Check-up Camp and Adolescent Awareness Programme’
Slide 25: Efforts during Second wave of Covid-19
Efforts during Second wave of Covid-19 Covid Hospitals Oxygen Cylinders & Concentrator Vaccination Camps Extended support for establishing covid Donated 50 new jumbo oxygen cylinder at Extended support to local administration hospitals in 3 districts by providing medical Sonadih and provided 7 oxyge
Slide 26: Governance
Governance Board Structure and Compliance • Following the best Corporate Governance practices - Integral part of the Company’s operations since its inception • Board composition - Optimum mix of Executive and Non-Executive Directors; including an Independent Woman Director. • The Board and Audit Com
Slide 27: Key Projects Update
Key Projects Update Sheping a new world 26
Slide 28: Projects Update
Projects Update Captive Power Plants (CPPs) Clinker Debottlenecking Cement Expansion ✓ CPPs at Arasmeta and ✓ Construction started at ✓ Brownfield expansion of Jojobera cement plant Clinker debottlenecking 1.5 MTPA commissioned under advanced stage of projects at Nimbol and at Jojobera commissioning
Slide 29: Synergy Update
Synergy Update Double Bull – Entry in North Other Synergy Projects ✓ Logistics Synergy – Manufacturing ✓ Double Bull PPC & Premium variant - presence in all core states of East Double Bull Master PPC launched optimizing distribution cots ✓ Clinker Rerouting – Optimizing the clinker transportation co
Slide 30: Innovation Focused...... External Accreditation
Innovation Focused...... External Accreditation Cement - Composite Cement RMX - 2 Launches in Q1 Award Roll Out in East ✓ Entry in Composite Cement Concreto Permadure Segment through “Duraguard Silver” in Bihar Concreto Corrosafe ✓ Secured " IC-ACI "Excellence in Concrete Construction Awards : 2021
Slide 31: Key Financials
Key Financials 30
Slide 32: Key Highlights – Q1 FY 22
Key Highlights – Q1 FY 22 Update on Key Areas Planned for Q1 FY 22 ✓ Recovery of Volumes post Covid in Q1 FY 22 ✓ Price acceleration Program improved revenue ✓ Synergies Commenced across all themes ✓ CPP and WHR Savings – Driving lower Power & Fuel Cost ✓ Fixed Cost & SGA Optimization ✓ Turnaround o
Slide 33: Key Indicators - Consolidated
Key Indicators - Consolidated For the period Q1 FY 2022 Note: Y-o-Y Change based on inclusion of NVL Financials for like to like comparison 4.2 2203 520 24% 1238 Total Volume Total Revenue Total EBITDA EBITDA Margin EBITDA (Million T) (INR Cr) (INR Cr) (%) (INR/T) 44% YoY 59% YoY 126% YoY 7.0 pp 58%
Slide 34: Income Statement
Income Statement Consolidated (All amount in INR Cr) Q1 FY21^ Q1 FY22 % Change Revenue from Operations 1383 2203 59 EBITDA 230 520 126 EBITDA Margin 16.6% 23.6% 7.0pp Finance costs 232 151 Depreciation and Amortisation expense 185 212 Profit/(Loss) before Tax (187) 157 Tax expense (59) 43 Profit/(Lo
Slide 35: Key Cement Cost Elements – INR/T
Key Cement Cost Elements – INR/T Raw Material Cost Power & Fuel Cost Distribution Cost 555 917 1343 Led by raw mix optimization Led primarily by increased Synergy Benefits offsetted despite hike in input prices share of captive power by diesel price hike 34
Slide 36: Deleveraging…Key Focus Area
Deleveraging…Key Focus Area Net debt/EBITDA (x) Focus on deleveraging IPO proceeds being used to 4.2x NVL Acquisition repay / prepay debt 3.7x 3.0x Improved capital structure FY 20 FY 21 Q1 FY 22 Flexibility to fund future growth Note: TTM EBITDA for Q1 FY 22 Long Term Credit Rating 0.5x reduction i
Slide 37: Key building blocks of our success
Key building blocks of our success Robust process, people centric approach & Significant strong ESG synergies from Nu agenda Vista Strong operational and market footprint Market leading brands Leader in the fastest growing region Strong sector outlook 36
Slide 38: Disclaimer
Disclaimer Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements”. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Company’s operatio