Fineotex Chemical Limited · NSE:FCL
Fineotex Chemical — Investor Presentation (September 2020)
31 slides from Fineotex Chemical's investor presentation, September 2020
Slide 1: Fineotex Chemical cover letter to stock exchanges
FINEOTEX” A Speciality Chemical Producing Public Listed Company (-) (2) a 8014001 5" September, 2020 a To, General Manager, The Manager, Listing Department, Listing & Compliance Department BSE Limited, The National Stock Exchange of India P.J. Towers, Dalal Street, Limited Mumbai — 400 001 Exchange
Slide 2: Fineotex Chemical Limited Investor Presentation September 2020
Fineotex Chemical Limited (BSE: 533333; NSE: FCL) Investor Presentation September 2020 Drilling Specialties Textile Specialties Home Care and Hygiene Specialties Other Specialties
Slide 3: Agenda
Agenda Company Overview 3 – 14 Sustainability Approach 15 – 20 Financial Performance 21 – 28 2
Slide 4: Company Overview
Company Overview 3
Slide 5: An Introduction to Fineotex
An Introduction to Fineotex Speciality chemicals producer for 4+ decades with a market 450+ 60+ leading position in the international textiles industry Product Categories Countries Present Bluesign, ZDHC, 43,000+ MT p.a. Successful entry into home care and hygiene and drilling Star Export House Inst
Slide 6: Fineotex Investment Case
Fineotex Investment Case Business Dynamics Acquisition Track Record Global Customer Reach • Fineotex and Biotex associated with • Biotex (73% owned) net profit has • International acceptance by high quality and innovation across grown by a factor of 4x since profile customers industries globally acq
Slide 7: Our Evolution
Our Evolution 1995 2004 2007 2011 2014 ❖ Incorporation of ❖ Accredited with ❖ Acquisition of FCPL ❖ Listed on BSE ❖ Bonus declared on 1:1 Fineotex ISO 9001:2008 by Fineotex Chemical ❖ Incorporated wholly owned basis Chemical ❖ Incorporation of Limited subsidiary in Malaysia ❖ Accredited with ISO Ind
Slide 8: Driving Future Growth
Driving Future Growth Home Care Specialities Hygiene Specialities Textile Specialities Drilling Specialities Leverage core manufacturing and development expertise into new high growth areas 7
Slide 9: Focus on Growth and Diversification
Focus on Growth and Diversification Home Care and Hygiene Chemicals Drilling Speciality Chemicals Other Speciality Chemicals • Customised solutions for: • Customised solutions for Oil and Gas • A unique ‘Mosquito Life Cycle Controller’ ▪ FMCG - branded detergents • Significant potential for offering
Slide 10: Upcoming Facility at Ambernath, Maharashtra
Upcoming Facility at Ambernath, Maharashtra ➢ Located on ~4 acres of land ➢ Expect to commission first phase of the brownfield manufacturing facility in Q1 FY2022 ➢ Proposed deployment of Rs. 270 million ➢ Cater to customer demands in the existing Textile Specialities and fast growing Home Care and
Slide 11: Synergistic Business Model
Synergistic Business Model Fineotex - India Biotex - Malaysia • Diverse product portfolio (400+ categories) • Niche product portfolio (50+ categories) across business segments Overview • High end super speciality textile chemical • Applications primarily across the entire textile applications value
Slide 12: Specialty Textile Chemicals Overview
Specialty Textile Chemicals Overview Steps Weaving Pre-treatment Dyeing Printing Finishing De-sizing, Dyeing, Rotary Exhaust Process Sizing Scouring, Washing, Printing, Padding Bleach Fixing Table Printing Enzymes, Dyes, Acids, Dyes, Binder Softeners, Wetting & Alkali Thickener, Fixer Product Polyme
Slide 13: New Product Offerings from Biotex
New Product Offerings from Biotex ‘The Bioguard Series’ of products from Biotex with water and oil repellent features in great demand post outbreak of COVID-19 12
Slide 14: Global Customer Reach
Global Customer Reach • Sales in 60+ countries including Brazil, Bangladesh, Germany, Indonesia, Malaysia, Singapore, Thailand, USA and Vietnam • 30+ technical marketing experts • 100+ dealers in Indian and International markets FY20 Revenue Mix 52% 48% Facilities at Mahape and Ambernath (upcoming),
Slide 15: Strategic Direction
Strategic Direction Leverage Fineotex’s industry insights and long standing customer relationships with Biotex’s high end product expertise and regional positioning to serve global customers Fineotex+ Biotex Synergies Upcoming brownfield facility at Ambernath, Maharashtra to be future ready for next
Slide 16: Sustainability Approach
Sustainability Approach 15
Slide 17: Board of Directors
Board of Directors Surendrakumar Tibrewala Sanjay Tibrewala Aarti Jhunjhunwala Chairman and Managing Director Executive Director Executive Director Navin Mittal Manmohan Mehta Alok Dhanuka Bindu Shah Independent Director Independent Director Independent Director Independent Director Audit Committee
Slide 18: Management Team
Management Team Surendra Kumar Tibrewala Sanjay Tibrewala Aarti Tibrewala Education: B.Com and LLB Education: B.Com and P.G. in Textile Education: B.Com and M.Com Chemicals and Processing Managing Director Chief Financial Officer Head - International Marketing Noa N. Ouakass Kedar Sankar Sonai Raman
Slide 19: Manufacturing Platforms (GMP Certified)
Manufacturing Platforms (GMP* Certified) Location Operating Facts Strategic Advantages • FY20 Production Volume: 20,440 MT • Strategically located plant near key port • Current Utilisation: 56% close to Mumbai with logistical advantage to textile hubs across North, West, South and • Peak Utilisation
Slide 20: Accreditations: Biotex Malaysia
Accreditations: Biotex Malaysia Certificate Value Proposition • Bluesign is recognized as a leading certification for sustainability in the global textile industry. As a partner, Biotex is committed to applying the bluesign system to meet the highest level of safety for both people and environment,
Slide 21: Accreditations: Fineotex India
Accreditations: Fineotex India Certificate Value Proposition • ISO 9001:2015 defines the guiding principles to create efficiencies by aligning and streamlining processes throughout the organization, create new opportunities, meet regulatory requirements, and help organizations expand into new market
Slide 22: Financial Performance
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Slide 23: Key Takeaways
Key Takeaways Profit and Loss Balance Sheet and Cash Flows ❖ Revenue from Operations up from Rs. 221 mn in FY10 to Rs. ❖ Net Cash Position of Rs. 151 mn in FY20 1,963 mn in FY20 at a CAGR of 24.4% ❖ Cash Flow from Operations at Rs. 284 mn in FY20 ❖ EBITDA has grown from Rs. 48 mn in FY10 to Rs. 342
Slide 24: Consolidated Annual Performance Trend
Consolidated Annual Performance Trend Figures in Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin CAGR: 24.4% 25.2% CAGR: 21.7% 47.9% 21.7% 21.9% 44.5% 21.0% 42.1% 40.3% 19.0% 35.5% 37.3% 17.4% 33.1% 16.2% 1,823 1,963 300 347 342 1,429 277 295 1,099 1,344 1,020 165 221 48 FY
Slide 25: Consolidated Cash Flow Trend
Consolidated Cash Flow Trend Figures in Rs. Mn. Fineotex generated a free cash flow of Rs. 273 mn in FY2020 6 ( 80 ) 138 ( 11 ) Includes D & A of Rs. 12 mn and Gain/(Loss) on Fair 284 273 220 Valuation of Investments of Rs. 126 mn PBT Non Cash Charges Working Capital Changes Taxes Paid Cash Flow Fro
Slide 26: Consolidated Balance Sheet and Return Ratios Trend
Consolidated Balance Sheet and Return Ratios Trend Figures (in Rs Mn) Mar-19 Mar-20 Cash Flow from Operations /EBITDA (%) ST Debt 20 28 83% 83% 80% LT Debt 1 - 65% Total Debt 21 28 49% Cash & Cash Equivalent 147 179 35% 127 151 21% Net Cash Equity 1,652 1,760 Total debt/Equity 0.01x 0.02x FY 10 FY 1
Slide 27: Consolidated Financial Highlights: Q1 FY2021 (Y-o-Y)
Consolidated Financial Highlights: Q1 FY2021 (Y-o-Y) Performance Discussion: Rs 303.9 mn Rs 41.1 mn Rs 82.0 mn • Q1 FY2021 Revenue was as expected impacted by Total Revenue EBITDA Net Profit the outbreak of COVID-19, resulting in lower business activity • Our factories resumed business operations at
Slide 28: Consolidated Quarterly Performance Trend
Consolidated Quarterly Performance Trend Figures in Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 39.1% 19.8% 38.1% 36.5% 17.1% 17.1% 17.4% 35.7% 15.4% 31.0% 497 510 521 101 436 85 80 76 304 41 Q1 FY 20 Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q1 FY 20 Q2 FY 20 Q3 FY 20 Q4 FY
Slide 29: Consolidated P&L Summary: Q1 FY2021
Consolidated P&L Summary: Q1 FY2021 (Rs. Million) Q1 FY21 Q1 FY20 YoY% Q4 FY 20 QoQ% FY 20* FY 19 YoY% Revenue from Operations 303.9 496.5 (38.8%) 435.8 (30.3%) 1,963.4 1,823.3 7.7% COGS 209.7 319.2 (34.3%) 265.5 (21.0%) 1,231.4 1,175.9 4.7% Gross Profit 94.2 177.4 (46.9%) 170.3 (44.7%) 731.9 647.3
Slide 30: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Fineotex Chemical Limited (“Fineotex Chemical” or the Company) future bus
Slide 31: Fineotex Chemical Limited
Fineotex Chemical Limited FINEOTEX CHEMICAL LIMITED (CIN Number: L24100MH2004PLC144295) 42-43, Manorama Chambers, S. V. Road Bandra (West), Mumbai - 400 050, India Phone: (+91 - 22) 26559174 / 75, (+91 - 22) 26559176 / 77 Email: info@fineotex.com www.fineotex.com 30
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