Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q3 FY19 Earnings Presentation
46 slides from Galaxy Surfactants's earnings presentation, Feb 1, 2019
Slide 1: Exchange filing cover letter
February 01, 2019 National Stock Exchange of India Ltd., BSE Limited, Listing Compliance Department Listing Department, Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East) Mumbai- 400001 Mumbai – 400 051 Scrip Symbol: GALAXYSURF Scrip Code: 5409
Slide 2: Galaxy Surfactants Ltd. Investor Presentation - February 2019
Galaxy Surfactants Ltd. Investor Presentation - February 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Galaxy Surfactants Limited. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Q3 & 9M FY19 Performance Highlights
Q3 & 9M FY19 Performance Highlights 3
Slide 5: 9MFY19: Key Developments
9MFY19: Key Developments Domestic (India) Business growth exceeds Market Growth rate Growth driven by all three customer segments: MNC’s, Regional & Local AMET performance remains subdued, owing to a slowdown in Egypt The ROW market outperformed on the back of a strong performance registered by the
Slide 6: Volume Highlights
Volume: 9MFY19 Highlights (YoY) Performance Surfactants Specialty Care Products Total Volume +1% +20% +7% 96,635 97,698 59,563 157,261 146,381 49,746 Volume Highlights 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 India Growth 13% Africa Middle East Turkey de-grew by 8% Rest of the World grew by 29% AME
Slide 7: Revenue Highlights
9MFY19 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ +11% +24% +16% 1,319 763 2,082 1,184 1,799 615 Revenue Highlights 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 EBITDA^ PAT +15% +13% 259 134 226 118 Rs. In Crores 9MFY18 9MFY19 9MFY18 9MFY19 As per Ind AS ^Includes o
Slide 8: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs in Cr) Q3 FY19 Q3 FY18 Y-o-Y 9M FY19 9M FY18 Y-o-Y FY18 ▪ Average Forex rate in Net Revenue from Operations 679.5 597.9 2,081.0 1,790.4 2,433.9 9MFY19 was Rs. 69.57 per Other Income 1.0 2.6 1.2 8.4 10.1 USD versus Rs 64.43 per USD in 9MFY18 Total
Slide 9: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs in Cr) Q3 FY19 Q3 FY18 Y-o-Y 9M FY19 9M FY18 Y-o-Y FY18 Net Revenue from Operations 494.2 405.4 1,504.1 1,232.4 1,684.2 ▪ The Other income Other Income (0.8) 0.3 32.1 11.8 13.0 includes a gain of Rs. 32.1 crores in 9MFY19 arising Total Revenue 493.4
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Sept’18 March’18 Particulars (Rs. In Crores) Sept’18 March’18 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 451.6 439.9 EQUITY Capital work-in-progress 77.2 24.9 Equity Share Capital 35.5 35.5 Goodwill 2.6 2.4 779.4 683.3 Other Equ
Slide 11: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Sept’18 March’18 Particulars (Rs. In Crores) Sept’18 March’18 ASSETS EQUITY AND LIABILITIES Non-current assets EQUITY Property, Plant and Equipment 276.2 277.9 Equity Share Capital 35.5 35.5 Capital work-in-progress 49.9 18.5 Other Equity 695.0 63
Slide 12: Business Overview
Business Overview 11
Slide 13: Truly Indian MNC…
Truly Indian MNC… Leading manufacturer of Product applications across Preferred supplier to leading Ingredient for Home & Mass, Mass-tige & Prestige Multinational, Regional & Brand Custodian Personal care Industry (HPC) range of Customers Local FMCG Brands Globally Recognized Integrated Across Full
Slide 14: …Vertically Integrated in HPC Industry
…Vertically Integrated in HPC Industry 7 Strategically Located 200+ Product Grades Extensive R&D Capabilities Indigenous Facilities with Inhouse Project 63 Members, R&D Centre, Pilot Intellectual property Execution Capabilities Plant, Product Application 58 Approved; 28 Applied 5 in India, 1 in Egyp
Slide 15: We grow faster than HPC FMCGs
We grow faster than HPC FMCGs India’s Largest Manufacturer of Oleochemical based Surfactants and Speciality Care Products for Home Care and Personal Care Industries (HPC) Consumer to Innovation & Chemistry Technology 01 03 05 Global Supplier 02 Multiple 04 High Growth to Global Brands Products acros
Slide 16: Our growth trajectory over Three Decades
Our growth trajectory over Three Decades 1986: Incorporation of Company 1994: New plant set up at Tarapur 2004: setting up of EOU at Taloja 2011: Commissioning of Egypt and Jhagadia Plants 1984: New Plant at Tarapur for 1995: Acquisition of Galaxy Chemicals 2009: Ethoxylates, Phenoxyethanol, Sunscre
Slide 17: Our focus is Personal & Home Care Segment
Our focus is Personal & Home Care Segment Hair Care Oral Care Home Care Shampoos Toothpaste Carpet Cleaner Conditioners Tooth powder Toilet Cleaner Colorants Mouth wash Detergents Styling Gels Fabric Cleaner Glass / Floor Cleaner Mass Mass -tige Prestige Serving needs across Consumer Segments Mass M
Slide 18: Consumer Benefits
… with over 200 Product Offerings Anionic Surfactants FAES, FAS, LABSA ✓ Foam and Dirt removal properties Performance Surfactants Non-Ionics Surfactants Ethoxylates ✓ Cosmetics and Personal care products as emulsifiers and solubilisers Betaines ✓ Dermatological properties to reduces skin irritation
Slide 19: Our Business Segments…
Our Business Segments… Performance Surfactants Speciality Care Products “Substantive Raw Material in Customer’s End-products” “Unique Functionality to Customer’s End-products” About Product ▪ Products are functional in nature where End- ▪ Niche & Premium products consumer require foaming & cleansing
Slide 20: Our Global Footprints
Our Global Footprints USA: TRI-K Industries-100% owned Manufacturing ✓ Netherland R&D ✓ USA # Plants 1 TRI K Turkey China Industries Global # Employees 69 Headquarters Egypt Galaxy Marketing office ✓ Chemical (Egypt) S.A.E. India Egypt:100% owned* 9MFY19: Revenue Breakup Manufacturing ✓ India: Paren
Slide 21: “Consumer to Chemistry”: Creation of Products
“Consumer to Chemistry”: Creation of Products 58 approved Patents and 28 applied Idea Stage INDIA USA EUROPE ROW GLOBALLY Feasibility Stage 10 12 2 7 27 R&D spend New product 58 Patents 28 Patent of INR 45+ grades, since 2002 application Capability Stage pending Cr in 16-18 process, efficiencies 201
Slide 22: …with World-class R&D facilities
…with World-class R&D facilities Collaborative product development with Customers which helps Customers in choosing “Right Technology with Right Application” Inhouse R&D Team of 63 professionals comprising of doctorates, chemists and engineers Well-Equipped R&D Centre, Pilot Plant at Tarapur, Mahara
Slide 23: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities Location No. of Units Installed Capacity Details ✓ 1 pilot plant for scale up and commercialisation of new Tarapur, Maharashtra 3 32,880 MTPA products rolling out from R&D activities ✓ Easy access to the Jawaharlal Nehru Port Trust, Navi Mumbai ✓ One of the
Slide 24: 1750+ Clients across 75+ Countries
1750+ Clients across 75+ Countries & Many more… Long term strategic relationship with all of the top 10 customers Strict qualifications and extensive collaboration with customers for end-product development Of basket of 200+ products, FY18: Revenue Contribution All FMCG Protocols Through Innovation
Slide 25: Awards & Certifications
Awards & Certifications: True recognition of Capabilities “Best Supply Partner”, 2015 2018 “Winning through Award of Global Performance” for Long Standing Partner Award Recognition from Innovation” at the Partner L’Oréal Asia Pacific 2012 Best Reliable Partner Award to Win, 2012 Awards “Certificate
Slide 26: Management Team on Board
Management Team on Board Mr. Unnathan Shekhar Promoter, Managing Director •Associated with Company since 1986 •Chemical Engineer, PGDM from IIM, Calcutta Mr. Natarajan K. Krishnan Mr. Kasargod Ganesh Kamath Executive Director, Chief Operating Officer Executive Director (Finance), Chief Financial Off
Slide 27: Along with Guidance of Senior Board Members
Along with Guidance of Senior Board Members Mr. Shekhar Ravindranath Warriar Chairman, Non-Executive Independent Director •Associated with Company since 2007 •More than 30 years with Unilever, India in various capacities Mr. Subodh S. Nadkarni Mr. Gopalkrishnan Ramakrishnan Mr. Shashikant R. Shanbha
Slide 28: The 4 Cs: Our Core Strength
The 4 Cs: Our Core Strength CHARACTER COMPETITIVENESS Transparent & Open, Respect & Adhering to Global Quality Value People, Dreaming & Standards, Supplying Envisioning , Conducting Customers Globally, Agile & Business with Integrity Nimble Footedness COMPETENCE COMFORT Respecting our Commitments, T
Slide 29: High Growth Industry
High Growth Industry 28
Slide 30: Personal & Home Care: Stable & Non-Cyclical Industry
Personal & Home Care: Stable & Non-Cyclical Industry Personal Care and Household Personal Care and Household Cosmetics Market Cleaning Market Cosmetics Market Cleaning Market 2015 215 43 11 2 2024 358 58 23 4 5.8% 3.3% 7.9% 7.2% CAGR CAGR CAGR CAGR Galaxy has a strong presence in High Growth Markets
Slide 31: Within Surfactants – Personal Care is fastest Growing Segment
Within Surfactants – Personal Care is fastest Growing Segment Surfactants Personal Care Surfactants Personal Care Market Surfactants Market Market Surfactants Market 2015 30.65 6.13 1.34 0.24 2024 45.16 10.27 2.28 0.47 4.4% 5.9% 6.1% 7.8% CAGR CAGR CAGR CAGR All figures in USD billion Source: Compan
Slide 32: Within Specialty – Personal Care Ingredients has largest Growth Potential
Within Specialty – Personal Care Ingredients has largest Growth Potential Global Personal Care Ingredients: USD 14-18 billion UV Absorbers ▪ Global sun care (of which 80% is sun protection) is a USD 11 bn Sunscreen market and is estimated to touch USD 12.3 bn by 2021 35% 40% ▪ Preservatives blends a
Slide 33: Growth Strategy
Growth Strategy 32
Slide 34: Personal & Home Care: High Entry Barrier Businesses
Personal & Home Care: High Entry Barrier Businesses Process Product Customers Chemical Engineering & inhouse project Wide spectrum of ingredients for Customer Centric Integrated solutions for execution Consumer categories / needs the HPC FMCG Industry Meeting pre-qualifications of the Product Qualit
Slide 35: Our Growth Vision
Our Growth Vision Sales R&D and Customer Market Strategy Profitability Optimization Innovation Wallet share Improve Financial Increased focus on Continue to focus Increase Wallet Mutually Performance high margin on R&D and Share with Existing Complimentary through Sales products in both Product Inno
Slide 36: Capacities offers Headroom for Growth
Capacities offers Headroom for Growth Capacity & Utilisation* (%) Sales Volumes (MTPA) Revenue (Rs. In Crs) Performance surfactants 69% 63% 60% 73% +10% +10% 130,596 1,553 115,392 1,405 242,600 251,000 209,800 97,211 98,775 1,181 1,117 202,800 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 FY15 FY16 FY17 F
Slide 37: Financial Performance
Financial Performance 36
Slide 38: Managing Volatility in Raw Material Prices and Currency...
Managing Volatility in Raw Material Prices and Currency... Fatty Alcohol Prices (USD / MT) INR / USD Prices 3000 72 2500 69 2,431 66.3 1,981 64.83 2000 66 1,855 64.8 1,694 63 1500 64.9 1000 60 FY17 FY18 FY 17 FY 18 … through Robust Risk Management Practices Source: Market Prices – ICIS – LOR Source:
Slide 39: Our Performance Highlights
Our Performance Highlights Revenue^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +9% +16% +32% 2,444 282 298 158 2,172 148 1,875 1,807 238 192 101 68 FY15 FY16 FY17* FY18* FY15 FY16 FY17* FY18* FY15 FY16 FY17* FY18* EBITDA per tonne Total Volume Growth +6% +9% 15,017 15,889 15,094 197,429 177,
Slide 40: Our Balance Sheet Strength
Our Balance Sheet Strength Debt/ Equity (x) Return on Equity (%) 1.1 28.8% 0.9 25.2% 24.4% 20.4% 0.7 0.5 FY15 FY16 FY17* FY18* FY15 FY16 FY17* FY18* Cash Flow from Operating Activities Return on Capital Employed (%) 170 25.2% 23.9% 144 22.6% 111 18.6% 41 FY15 FY16 FY17* FY18* FY15 FY16 FY17* FY18* *
Slide 41: Successful Listing on the Stock Exchanges
Successful Listing on the Stock Exchanges February 2018 ▪ Listing of Galaxy Surfactants Limited ▪ IPO subscribed: 19.76X ▪ FY18 Revenue: Rs 2,444.0 Cr ▪ FY18 EBITDA Margin: 12.2% ▪ FY18 PAT Margin: 6.5% Galaxy Surfactants Listing done at Valuation of ~Rs. 5,200 Cr on 8th February 2018 As per Ind AS
Slide 42: Thank You
Thank Company : Investor Relations Advisors : You CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Mr. Rahul Agarwal / Ms. Shrikant Sangani Email: Paritosh.Srivastava@galaxysurfactants.com rahul.agarwal@sgapl.net / shrikant.sangani@sgapl.net www.galaxysurfactants.com
Slide 43: Investors Release: 9MFY19 Consolidated Performance
Investors Release Galaxy Surfactants Limited 9MFY19 Consolidated Performance: • Total Revenue (including other income) at Rs. 2,082 Cr YoY growth of 16% with an underlying volume growth of 7% • EBITDA at Rs. 259 Cr, YoY growth of 14% • PAT at Rs. 134 Cr, YoY growth of 13% Mumbai, 1st February 2019:
Slide 44: Investors Release: Management commentary
Investors Release Commenting on the performance Mr. U. Shekhar, Managing Director, Galaxy Surfactants Limited said “We have witnessed a total volume growth of 7.4% in 9MFY19. Both Indian and ROW markets have displayed strong performance, however, owing to a slowdown in Egypt, AMET performance remain
Slide 45: Investors Release: Volume and EBITDA highlights
Investors Release • We have maintained our volume growth on back of a buoyant domestic market, pick up in consumption witnessed by the home and personal care industry and traction seen in the specialty care segment • Total volumes stood at 157,261 MT for 9MFY19 as against 146,381 MT in 9MFY18, up by
Slide 46: Investors Release: Safe Harbor
Investors Release Safe Harbor: Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target da