Asahi Songwon Colors Ltd. · NSE:ASAHISONG
Asahi Songwon Colors — Q4 FY22 Earnings Presentation
35 slides from Asahi Songwon Colors's earnings presentation, May 21, 2022
Slide 1: Cover letter to stock exchanges for Q4FY22 investor presentation
® • Asah1Songwon Ref: ASCL/SEC/2022-23 / 19 May 21 , 2022 0°, The General Manager 2. To, The General Manager (Listing) Department of Corporate Services National Stock Exchange of India Ltd BSE Limited 5 th Floor, Exchange Plaza 1st Floor, New Trading Ring Plot No . C/ 1, G Block Rotunda Building, P.
Slide 2: Investor Presentation May 2022
Investor Presentation MAY 2022 ASAHI SONGWON COLORS LIMITED BSE CODE : ASAHISONG | 532853 NSE CODE : ASAHISONG
Slide 3: Contents
Contents 01 ABOUT US 04 FINANCIAL STATEMENT SUMMARY SLIDE 03-10 SLIDE 23-26 02 BUSINESS CANVAS 05 QUARTERLY HIGHLIGHTS SLIDE 11-19 SLIDE 27-32 03 STRATEGIC ADVANTAGES AND INVESTMENT MERITS SLIDE 20-22
Slide 4: About Us
About 04 – Corporate Portrait 05 – Our Journey Us 06 07 – Strengthening Business Model – Global Footprint 08 – Product Portfolio 09 – Clientele 10 – Board of Directors
Slide 5: Corporate Portrait
04 Corporate Portrait Asahi Songwon Colors Limited is one of the leading manufacturers of blue 2 Manufacturing 3 decades of (Phthalocyanine) pigments facilities manufacturing expertise for ink, plastics, paint, textile and paper industry Exporting to Team strength of with globally benchmarked manufa
Slide 6: Our Journey
05 Our Journey SMALL START WITH ASPIRATIONS SUBDUED FINANCIAL GROWTH | READY FOR THE NEXT LEG TO BECOME A GLOBAL LEADER IN STRENGTHENING BUSINESS OF GROWTH PIGMENT INDUSTRY MODEL 1993 - - - - - - 0 2014 2016 - - - - - 0 2018 2019 - - - - ------10 Onwards • 1993 – Commenced operations of green • 2016
Slide 7: Strengthening Business Model
06 Strengthening Business Model 2005 -2015 0 2015 -2020 Added 2 new Added 3 new products products Continuous investments made and entered new product category towards making the business of AZO pigments sustainable 2015 0 2021 Served 19 Serving more than Reducing costs customers and Ramping up opera
Slide 8: Strong Global Footprint
07 Strong Global Footprint • List of countries we export to 1. USA 2. KOREA ... .. .~-. ...········~·.•··•:•:-·:-· ·.·.·~•:•:-·:-·· ... ········ . .....:.:•.· ...·····• ............... ........................... . .......... . ············. . 3. JAPAN 4. GERMANY • •••••• •• •• • • ••••• ••••• ;;!!:
Slide 9: Serving Leading Brands
08 Serving Leading Brands We have come a long way from our humble beginnings CLARIANT 19 years of collaboration • We have not lost a single customer to become a preferred and still going strong in our more than 3 decades of existence choice of supplier to the • More than 80%of business is large MNC'
Slide 10: Board of Directors
9 Board of Directors Mrs. Paru M. Jaykrishna Mr. Gokul M Jaykrishna Mr. Arvind Goenka Mr. Jayprakash M Patel CHAIRPERSON & MANAGING DIRECTOR JOINT MANAGING DIRECTOR & CEO DIRECTOR DIRECTOR She holds a Bachelor’s degree in Law A major in Finance with a minor in A graduate from St. Xavier College, He
Slide 11: Board of Directors (Contd.)
10 Board of Directors (Contd.) Dr. Pradeep Jha Mr. R.K. Sukhdevsinghji Mr. Munjal M Jaykrishna Mr. Arjun G Jaykrishna Mrs. Shivani Revat Lakhia DIRECTOR DIRECTOR DIRECTOR EXECUTIVE DIRECTOR DIRECTOR He is a renowned mathematician A graduate from St. Stephens A Major in Finance and Marketing A Bachel
Slide 12: Business Canvas
Business 12 – Phthalocyanine Pigments – Our Mainstay 13 – Infrastructure Facility – Padra Unit Canvas 14 – Azo Pigments – Growth Driver 15 – Azo Pigments – Capex 16 – Infrastructure Facility – Dahej Unit 17 - Acquisition of Atlas Life Scinces 18 - Key Highlights of the Transaction 19 - Pregabalin –
Slide 13: Phthalocyanine Pigments - Our Mainstay
12 Phthalocyanine Pigments - Our Mainstay At Asahi, we use our PRODUCT CATEGORY CHARACTERISTICS • One of largest experience and expertise manufacturer of CPC to manufacture Blue crude globally Phthalocyanine pigments Backward integrated for Long lead time creates Beta and Alpha Blue entry barriers f
Slide 14: Manufacturing facility - Padra Site
13 Manufacturing facility - Padra Site Cl Setup in 2004 Products manufactured: Waste and effluent Phthalocyanine Pigments treatment facilities available • CPC Blue crude • Beta Blue Situated on 98,000 sq. mt. • Alpha Blue plot No forced pollution shutdown in the last decade Available area for furthe
Slide 15: Azo Pigments - Growth Driver
14 Azo Pigments - Growth Driver At Asahi Songwon has WHY AZO PIGMENTS CHINA +1 A STRONG TAILWIND entered into a joint venture The global organic and specialty pigment market is estimated with UK’s leading colour at $5 billion and Azo is the largest in volume. manufacture Tennants High demand that is
Slide 16: Azo Pigments - Capex
15 Azo Pigments - Capex A JV WELL POSITIONED TO CAPTURE HUGE MARKET OPPORTUNITY. • Company has entered into JV Agreement with Tennants Textile Colors Limited ( TTC ) of UK for putting up a state of the art Red & Yellow Azo pigment Plant with Capacity of 2400 TPA • Cost of project ~₹82 crores • Have
Slide 17: Manufacturing facility - Dahej Site
16 Manufacturing facility - Dahej Site Setup in 2020 Products manufactured: Waste and effluent Azo Pigments treatment facilities available Situated on 60,000 sq. mt. plot Phase 2 brownfield capex to begin after reaching 50% capacity utilization levels Capacities expandable Available capacities upto
Slide 18: Acquisition of Atlas Life Sciences
17 Acquisition of Atlas Life Sciences SALIENT FEATURES FINANCIAL HIGHLIGHTS FY22 (₹ IN CRORE) Unaudited Figures Incorporated in 2004 80 - member team strength 119.23 REVENUE Key Products include 10 products under research • Pergabalin and development, including 6 • R-Compound new molecules and inter
Slide 19: Key Highlights of Transaction
18 Key Highlights of Transaction The 78% acquisition of Atlas Asahi Songwon Colors will Asahi Songwon Colors will Life Sciences Private Limited acquire an additional 11% stake establish a new plant on the financed through a mix of in Atlas Life Sciences Private vacant land parcel in Chhatral in ₹ 28
Slide 20: Pregabalin (PG) - Industry Landscape
19 Pregabalin (PG) - Industry Landscape The global consumption of PG is 1,430 T growing India is the biggest supplier of PG Indian manufacturing base for PG is matured at 10% CAGR. The formulators in India account for globally and is rapidly increasing its with Indian producers driving process effic
Slide 21: Strategic Advantages and Investment Merits
Strategic 21 – Strategic Advantage 22 – Investment Merits Advantages and Investment Merits
Slide 22: Strategic Advantages
21 Strategic Advantages HIGH LEAD TIME REALIGNMENT OF GLOBAL STRATEGIC LOCATION LONG TERM SALES SUPPLY CHAIN CONTRACT • Customer approvals take long • The Chinese government's The new plant at Dahej brings • Majority pigments under long time. However, once the crackdown a few years ago Asahi in the
Slide 23: Investment Merits
22 Investment Merits New capex of AZO to Str ong Strong technical put the company back Balance Sheet capabilities backed on growth path by technological tie up with industry leaders Consolidation the Foray into API Greenfield capex at global pigment Chattral to further industry to put the enhance op
Slide 24: Financial Statement Summary
Financial 24 – Summary of P&L 25 – Summary of B/S Statement 26 – Summary of Cash Flow Statement Summary
Slide 25: Financial Highlights - Profit and Loss statement
24 Financial Highlights - Profit and Loss statement (₹ IN CRORE) except EPS PARTICULARS FY18 FY19 FY20 # FY21 # FY22 # Revenue from Operations 293.83 293.62 283.64 283.08 415.38 Other Income 4.47 0.04 0.78 0.31 0.89 Total Income 298.30 293.66 284.42 283.39 416.26 Total Operating Expenses 255.59 254.
Slide 26: Financial Highlights - Balance Sheet
25 Financial Highlights - Balance Sheet (₹ IN CRORE) PARTICULARS FY18 FY19 FY20 # FY21 # FY22 # Total Equity (Networth) 181.64 193.59 215.66 274.31 284.43 Non Current Liabilities 39.02 38.49 25.59 24.32 44.68 Current Liabilities 98.83 76.98 36.56 90.84 140.56 Total Equity and Liability 319.49 309.06
Slide 27: Financial Highlights - Cash Flow Statement
26 Financial Highlights -Cash Flow Statement (₹ IN CRORE) PARTICULARS FY18 FY19 FY20 # FY21 # FY22 # Cash Flow from Operating Activities 5.91 27.06 56.97 8.05 (0.38) Cash Flow from Investing Activities (43.83) (2.87) (15.76) (60.07) (28.16) Cash Flow from Financing Activities 37.78 (24.20) (38.90) 4
Slide 28: Quarterly Highlights
Quarterly 28 – Key Highlights 29 – Management Commentary Highlights 31 – Financial Statement Summary
Slide 29: Key Highlights
28 Key Highlights EXPORTS VS DOMESTIC REVENUE CONSOLIDATED STANDALONE BREAK-UP# (IN %) Revenues Revenues ,12 3.4 8 cr. ,118.76 cr. 56 44 0 36.47 % 0 23.39 % 0 31.46 % 0 23.63 % EBITDA EBITDA Exports Domestic (39.99%) 2.53% (19.08%) 8.73% PHTHALOCYANINE VS AZO PIGMENT REVENUE BREAK UP (IN %) PAT PAT
Slide 30: Management Commentary
29 Management Commentary “I am happy to report you on our performance These difficult circumstances have in FY22. While our top line experienced robust unquestionably affected our profitability, but growth, our profitability was negatively I'd like to draw your attention to the impacted by an unprec
Slide 31: Management Commentary
30 Management Commentary “FY22 has indeed been an eventful year We are confident of significantly at Asahi. While our core business of ramping up our Azo operations in FY23 phthalocyanine pigments suffered on to cater to the growing market demand. account of profitability, it continued to What excit
Slide 32: Financial Highlights - Profit and Loss statement (Standalone)
31 Financial Highlights - Profit and Loss statement (Standalone) (₹ IN CRORE) except EPS Q-o-Q Y-o-Y PARTICULARS Q4FY21 Q3FY22 Q4FY22 Change Change Revenue from Operations 90.34 96.06 118.76 23.63% 31.46% Other Income 1.08 0.35 0.77 120.00% (28.70)% Total Income 91.43 96.41 119.54 23.99% 30.74% Tota
Slide 33: Financial Highlights - Profit and Loss statement (Consolidated)
32 Financial Highlights - Profit and Loss statement (Consolidated) (₹ IN CRORE) except EPS Q-o-Q Y-o-Y PARTICULARS Q4FY21 Q3FY22 Q4FY22 Change Change Revenue from Operations 90.48 100.07 123.48 23.39% 36.47% Other Income (1.13) 0.23 0.50 117.39% N/A Total Income 89.34 100.30 123.98 23.61% 38.77% Tot
Slide 34: Disclaimer
33 Disclaimer This investor presentation has been prepared by Asahi Songwon Colors Limited and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof ) delivered or supplied shou
Slide 35: Thank You
Thank You Contact Us “Asahi House” Mr. Saji Joseph 13, Aar yans Corporate Park , cs@asahisongwon.com Near Shilaj Railway Crossing, Thaltej - Shilaj road, Thaltej, Ahmedabad - 380059. Mr. Diwakar Pingle Tel : 079 6832 5000 Diwakar.pingle@in.ey.com Mr. Abhishek Mehra abhishek@theinvestmentlab.in 95588