Apl Apollo Tubes Limited · NSE:APLAPOLLO
Apl Apollo Tubes — Investor Presentation (November 2018)
48 slides from Apl Apollo Tubes's investor presentation, November 2018
Slide 1: APL Apollo Tubes Ltd. Investor Presentation November 2018
APL APOLLO TUBES LTD. Investor Presentation Construction November 2018 Energy & & Building Infrastructure Automobiles Agriculture Engineering Material
Slide 2: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 3: Table of Content
Table of Content 1 Company Overview 2 Growth Drivers 3 Way Forward 4 Financial Highlights 5 Conclusion 6 Annexure 3
Slide 4: APL Apollo Business Overview
APL Apollo Business Overview Construction Energy & & Building Infrastructure Automobiles Agriculture Engineering Material
Slide 5: Milestones
o Commissioned a plant at Hosur, Milestones Tamil Nadu - greenfield venture with state-of-the-art o Launched Door & mills Window frames and o Developed in- o Commissioned Greenfield facility at Raipur, railing tubes o Year of house Hollow o Started multiple Chhattisgarh Incorporation Sections across
Slide 6: India's Leading Branded Steel Tubes Manufacturer
India’s Leading Branded Steel Tubes Manufacturer Technology-focused Company – at the forefront of launching innovative product offerings Catering to an array of sectors – Construction & Building Material, Infrastructure, Energy & Engineering Automobile, Agriculture, etc. Close-to-Demand Pan-India Pr
Slide 7: One-stop shop for steel structural products
‘One-stop shop’ for steel structural products: Catering to key sectors of the Indian economy Construction & Infrastructure Energy & Engineering Automobiles Agriculture Building Material • Metros • Solar plants • Truck & Bus body • Agriculture Implements • Green Construction • Airports • Power plants
Slide 8: Tapping the Building Material space
Tapping the Building Material space 1 Structural steel 2 Fencing 3 Hand railing 4 Roofing 4 5 Scaffolding 6 Door frame 7 Window frame 5 8 Ducting 9 Furniture 10 Fire fighting 1 8 10 7 3 6 Array of products 2 9 catering to multiple segments of the High Potential industry 8
Slide 9: Infrastructural Applications
Infrastructural Applications 9
Slide 10: Engineering Applications
Engineering Applications 10
Slide 11: Automotive Applications
Automotive Applications 11
Slide 12: Agricultural Applications
Agricultural Applications 12
Slide 13: Industry Parameters
Industry Parameters Steel pipes and tube manufacturing among the fastest growing industries across the globe India is one of the leading ERW steel tubes manufacturing hubs in the world Ever-increasing pent-up demand led by increased infrastructure construction, thriving automobile and refining secto
Slide 14: Strong demand for Steel pipe consumption
Strong demand for Steel pipe consumption* Pipe Steel Pipe consumption Per Capita Consumption consumption Consumption as a % of steel Mn ton Mn ton % Steel Kg Pipe Kg Global 1,573 156 10% 208 21 China 800 80 10% 568 57 India 105 10 10% 75 6 Rest of the World 673 68 10% 140 14 • Steel pipe consumption
Slide 15: Growth Drivers
Growth Drivers Construction Energy & & Building Infrastructure Automobiles Agriculture Engineering Material
Slide 16: Pillars of Growth
Pillars of Growth The ‘APL Apollo’ Brand Edge Cost Efficiency APL Apollo India’s Leading Enhancing & Branded Steel Tubes Unlocking New Manufacturer Markets Niche Innovative Offerings Adoption of Latest Technologies 16
Slide 17: APL Apollo Brand – Leading the Shift from Commodity to Branded Product
APL Apollo Brand – Leading the Shift from a Commodity to a Value-Added Branded product • Developed a focused Branding Strategy in the year 2013, serving a two- fold objective: – Creating awareness and visibility of the brand – Providing consumers a first-hand feel of products • Strength, quality and
Slide 18: Push and Pull brand awareness strategy
Changing consumer perceptions at the right touchpoints Engaging customers via two pronged APL Apollo’s Brand Awareness approach Outline Top-level plan: Brand Led Customer Led To target B2C / B2B customers through PUSH PULL Print & electronic formats in the near Strategy Strategy TV future • Focus on
Slide 19: Building Brand Visibility through New Product Launches
Strong Focus towards Building Brand Visibility through New Product Launches Apollo Coastguard Apollo Fabritech Apollo Agritech Apollo Bheem ‘Apollo Coastguard’ branded ‘Apollo Fabritech’, hollow ‘Apollo Agritech’, hollow ‘Apollo Bheem’ pipes are products to tap growing sections made with latest DFT
Slide 20: International & National Participation
International & National Participation Enhancing & Unlocking New 20 The ‘APL Apollo’ Brand Edge Adoption of Latest Technologies Niche Innovative Offerings Cost Efficiency Markets
Slide 21: Engagement Activities
Engagement Activities Enhancing & Unlocking New 21 The ‘APL Apollo’ Brand Edge Adoption of Latest Technologies Niche Innovative Offerings Cost Efficiency Markets
Slide 22: Expanding Manufacturing Footprint
Expanding Manufacturing Footprint Close-to-Demand Pan-India Footprint – localized supply to fast-track growth Target Capacity 2.0 MTPA capacity across plants by FY2019 Distribution Raipur (Greenfield Capacity) 325,000 North 28% Murbad (Lloyds Linepipes) 500,000 West Central Hosur (Unit 2) 500,000 20
Slide 23: Enhancing Presence
Enhancing Presence Local Market Presence aided by 3-tier Distribution and Solid Supply Chain Mechanism 650 Enhancing & Unlocking New 23 The ‘APL Apollo’ Brand Edge Adoption of Latest Technologies Niche Innovative Offerings Cost Efficiency Markets
Slide 24: Unlocking Opportunities – OEMs, Exports & Untapped markets
Unlocking Opportunities – OEMs, Exports & Untapped markets • Tapping potential across newer areas such as Original Equipment OEM Manufacturers (OEMs), Export Markets & Untapped markets – key for 5% driving value growth across business • Focus on OEMs & Export Markets 2018 – Introduction of latest te
Slide 25: Pioneer in Instituting the Latest Technology
Pioneer in Instituting the Latest Technology • Leader in adopting the latest technology from around the globe Direct Forming Technology – Introduced latest technologies – High speed mills from Europe (increased speed by 5x), Strip Galvanizing lines, and the unique Rotary Sizing Mills – In 2016, the
Slide 26: Direct Forming Technology
Direct Forming Technology Hollow Sections Customized Rollover time Results in direct Latest Global of varying orders / small reduced to ~20 material savings Technology shapes / sizes / orders also mins from 4-24 of ~3-7% thickness accepted hours Customer benefits include: Size customizations, specif
Slide 27: Tricoat Technology
Tricoat Technology Products made through latest Galvant technology Tri-layer of protective coating - paint, zinc and UV organic coating Corrosion Resistant Zinc Coating APL Apollo acquires equity stake in Apollo Tricoat Tubes in Nov 2018 • APL Apollo, through its wholly owned subsidiary Shri Lakshmi
Slide 28: Path-breaking Product Offerings
Path-breaking Product Offerings Continuous product innovations has expanded addressable market Product portfolio at ~3-4x the product basket of the closest competitor Pre-Galvanized (GP) Sales Volumes in 000’s (MTPA) 1,130 Galvanized (GI) 932 894 241 21% Clear shift 159 189 111 10% towards non- 657
Slide 29: Robust Product Offerings
Robust Product Offerings Continuously augmenting the product basket New Patented Designs Double At least Door Frame D Shape Hand Rail 30% Section savings as Narrow compared Sections to Normal wood Single Door Frame Z Shape L Section Section Paint Pipe T Shape Elliptical Coated Dimensions tube • 70%
Slide 30: Lowest cost producer in India
Lowest cost producer in India Deploying cost-effective strategy across business model Lowest cost producer in the country – endeavor to become the lowest cost producer across the globe Higher emphasis on channel financing to improve purchasing power of dealers, while also enhancing working capital c
Slide 31: Growth Strategy
Growth Strategy Internal Growth Levers Customer, Areas & Products Brand Development (CAP) Monetizing Tapping Preferred Targeting new Expanding know-how to Export & supplier Higher brand Customer footprint in launch New OEMs among visibility Relations New Areas Products opportunities distributors Sol
Slide 32: Way Forward
Way Forward Construction Energy & & Building Infrastructure Automobiles Agriculture Engineering Material
Slide 33: Vision
Vision Well-defined strategy with tangible targets 2.5 million ton sales Strong Balance- Sheet To become debt-free Targeting above industry average and reduced Working growth rates Capital cycle Margin Strengthen product accretive and corporate Targeting higher EBITDA branding activities per ton mar
Slide 34: Financial Highlights
Financial Highlights Construction Energy & & Building Infrastructure Automobiles Agriculture Engineering Material
Slide 35: Consistently Delivering Strong Performance
Consistently Delivering Strong Performance Particulars 2007 2010 2012 2015 2016 2017 2018 CAGR Sales* (Rs. Crore) 230 666 1, 536 3,482 4,656 3,924 5,335 33% EBITDA (Rs. Crore) 15 66 115 186 292 339 379 34% PAT (Rs. Crore) 7 30 49 64 101 152 160 33% Net Worth (Rs. Crore) 16 191 299 495 568 720 837 43
Slide 36: Strong Financial Track-record
Strong Financial Track-record Revenues* Sales (MTPA) 1,130,305 CAGR: 17% 5,335 CAGR: 19% 4,656 893,666 931,535 3,924 Rs. crore Rs. crore 3,182 682,193 2,862 572,000 FY2014 FY2015 FY2016 FY2017 FY2018 FY2014 FY2015 FY2016 FY2017 FY2018 EBITDA PAT 379 CAGR: 23% 339 CAGR: 28% 152 160 292 Rs. crore Rs.
Slide 37: Financial Parameters
Financial Parameters ROCE (%) RONW (%) 24% 25% 23% 23% 20% 19% 18% 18% 15% 14% FY2014 FY2015 FY2016 FY2017 FY2018 FY2014 FY2015 FY2016 FY2017 FY2018 Networth (Rs. Crore) Long-term Debt-Equity Ratio 837 720 0.33 0.33 568 0.28 495 425 0.15 0.09 FY2014 FY2015 FY2016 FY2017 FY2018 FY2014 FY2015 FY2016 F
Slide 38: Financial Parameters – Working capital cycle
Financial Parameters – Working capital cycle Debtor Days Inventory Days Creditor Days Net working capital days 50 47 43 38 37 35 34 35 33 33 33 31 30 30 28 26 25 26 22 22 20 20 17 13 FY2014 FY2015 FY2016 FY2017 FY2018 H1 FY2019 Continuous focus towards improving working capital efficiencies Note: De
Slide 39: Performance Highlights – Q2 & H1 FY19
Performance Highlights – Q2 & H1 FY19 Sales Volume* (Lakh Ton) Net Revenues (Rs. Crore) EBITDA1 (Rs. Crore) PAT (Rs. Crore) Shift: 11% Shift: 35% Shift: 8% Shift: -7% 6.06 3,367 195 5.48 180 80 2,501 74 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 Shift: 7% Shift: 26% Shift: -15%
Slide 40: Conclusion
Conclusion Construction Energy & & Building Infrastructure Automobiles Agriculture Engineering Material
Slide 41: Competitive Advantage
Competitive Advantage The first company in the world to Largest manufacturer of ERW steel commission a fully automated direct forming tubes in India, touching a capacity of 2 mill with a capability of producing 300 mm x million tons by 2020 300 mm hollow section with a thickness • Just to share a pe
Slide 42: Annexure
Annexure Construction Energy & & Building Infrastructure Automobiles Agriculture Engineering Material
Slide 43: Safety and Environment
Safety and Environment Building A Sustainable World Through Efficient Energy Consumption and Optimum Utilization of Natural Resources • Company targets to equip all the units and buildings of APL Apollo with rooftop solar panels SOLAR POWER • Usage of solar power will help reduce energy loss, electr
Slide 44: Key Market Statistics
Key Market Statistics As on Top Public Shareholders Key Market Statistics November 16, 2018 (more than 1%) BSE/NSE Ticker 533758 / APLAPOLLO Kitara Building Materials / Industry DSP Blackrock Infrastructure CMP (Rs.) 1,271.1 Goldman Sachs Market Cap (Rs. Crore) 3,016.2 Sameer Mahendra Sampat Number
Slide 45: Board of Directors
Board of Directors Executive / Promoter Independent Directors Directors Sanjay Gupta Anil Kumar Bansal Executive Chairman Independent Director Ashok K. Gupta Abhilash Lal Managing Director Independent Director Vinay Gupta S. T. Gerela Director Independent Director Romi Sehgal Neeru Abrol Director In
Slide 46: Management Team
Management Team Mr. Sanjay Gupta Mr. Ashok K. Gupta Romi Sehgal Deepak Goyal Executive Chairman Managing Director Director CFO Arun Agrawal Ajay Garg Shiv Kumar Bansal Rajeev Kohli VP Operations VP Operations VP Sales CEO – Apollo Metalex Dinesh Talniya Ashok Khushu Amit Kapoor Project Head – R&D an
Slide 47: About Us
About Us APL Apollo Tubes Limited (APL Apollo) [BSE: 533758, NSE: APLAPOLLO] is one of India’s leading branded steel products manufacturers. Headquartered at Delhi NCR, the Company operates seven manufacturing facilities with a total capacity of 1.75 Million MTPA. It has a PAN-Indian presence with u
Slide 48: Thank You
Construction Energy & Thank You & Building Infrastructure Automobiles Agriculture Engineering Material
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