Rhi Magnesita India Limited · NSE:RHIM
Rhi Magnesita India — Investor Presentation (September 2022)
26 slides from Rhi Magnesita India's investor presentation, Aug 30, 2022
Slide 1: Investor presentation
Investor presentation RHI Magnesita India Limited September 2022
Slide 2: Agenda
Agenda 1 Introduction 2 FY 2022 update 3 Financial review 4 Strategic initiatives 5 History 6 Q&A RHI Magnesita India | September 2022 2
Slide 3: Introduction
Introduction
Slide 4: Refractories are essential for our modern world
Refractories are essential for our modern world Concrete Copper Steel Glass Aluminium 1,500°C 1,350°C 1,760°C 1,650°C 1,250°C 1 tonne of STEEL 1 tonne of CEMENT 1 tonne of GLASS 1 tonne of ALUMINIUM 1 tonne of COPPER demands ~10‐15 Kg demands ~1 Kg demands ~4 Kg demands ~6 Kg demands ~3 Kg of refrac
Slide 5: Refractory applications
Refractory applications Customer industries Main application Lifetime and costs Refractory characteristics Part of customers’ operational Steel 20 minutes to 2 months Basic oxygen furnace, expenditure 70% of revenues Electric arc furnace, ladles, flow control c.3% of customers’ costs Systems and sol
Slide 6: Global leader in a highly fragmented market
Global leader in a highly fragmented market Growth opportunity through consolidation Global market share Regional market share % 1 Total market size: South America 65 10.5% Others c.€20bn Africa 50 15% North America 40 10% 34% Middle East ex‐Iran 40 Medium & small 4% Chinese India 25 companies 4% Eu
Slide 7: Raw material and refractory process overview
Raw material and refractory process overview RHI Magnesita India | September 2022 7
Slide 8: Solutions contracts
Solutions contracts RHI Magnesita can offer full heat management solutions to its customers Client benefit Reduced downtime Lower refractory consumption Lower energy and other raw materials consumption Higher productivity and cost savings RHI Magnesita benefit Market share gains Higher c
Slide 9: Strong growth in the Indian market
Strong growth in the Indian market Market share growth and pricing power, 6 months to 30 June 2022 RHIM Group: Europe/CIS/Turkey RHIM Group: North America RHIM Group: 23% China and East Asia 0% 20% ‐10% 14% 26% ‐6% RHI Magnesita India Limited: India/West Asia/Africa ‐2% ‐1% H1 2022 RHIM Group: versu
Slide 10: FY 2022 Update
FY 2022 Update
Slide 11: Financial highlights, year to 31 March 2022
Financial highlights, year to 31 March 20221 Revenue EBITDA EBITDA margin Cash returned to shareholders ₹19,951m ₹3,935m 19.7% ₹402m 45.6% 78.1% 360bps Free cash flow Capex Dividend per share Earnings per share ₹(347)m ₹620m ₹2.5ps ₹16.7ps (143)% (27.3)% 0% 96.8% 1. Denoted on a reported and consoli
Slide 12: Financial review
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Slide 13: Summary Financials
Summary Financials Consolidated and reported financials year to 31 March 2022 Profit and loss 2022 2021 Change % Balance sheet 2022 2021 Change % Cash flow 2022 2021 Change % ₹m ₹m ₹m Revenue from 19,951 13,704 46% Non‐current assets 3,345 3,016 11% Profit before tax 3,575 1,846 94% operations Finan
Slide 14: Summary Financials – Q1 2022
Summary Financials – Q1 2022 Consolidated and reported three months to 30 June 2022 Profit and loss Qtr Qtr Change Qtr Change Balance sheet Jun'22 Jun'21 Change Cash flow Jun'22 Jun'21 Change ₹m Jun'22 Mar'22 % Jun'21 % ₹m ₹m % (Jun'22 Vs. (Jun'22 Vs. Mar'22) Jun'21) Revenue from Non‐current assets
Slide 15: FY 2021-2022 revenue bridge
FY 2021‐2022 revenue bridge Higher value product mix drives strong revenue growth ₹m 19,951 466 4,125 13,704 1,656 FY21 revenue Volume Price and mix One time price increase FY22 revenue RHI Magnesita India | September 2022 15
Slide 16: Cost outlook
Cost outlook Further cost inflation expected from energy and labour Raw material outlook Energy outlook Likely to maintain elevated levels Energy supply risk in Europe due to Russia/Ukraine conflict has led to a global energy crisis Rebased to 100 135 130 300 Brent crude oil 125 250 Poten LNG (India
Slide 17: Raw material prices
Raw material prices Prices increased and held higher levels year‐on‐year Raw material prices1 High grade DBM (97% ‐ China) Rebased to 100 Medium grade DBM (90% ‐ China) High grade DBM (95% ‐ Europe) RHIM weighted average DBM % movement from 30 June 2021 % movement from 31 December 2021 (13)% 6% (0)%
Slide 18: Working capital
Working capital Increased working capital in 2022 due to higher inventory volumes and value Inventories (₹ m) Inventory days 110 Working capital (₹ m) Cash conversion cycle 99 6,080 3,531 93 96 2021 2022 6,637 Receivables (₹ m)1 Receivables days 99 89 5,824 3,863 3,915 2021 2022 Payables (₹ m) Payab
Slide 19: Financial ratios
Financial ratios Prices increased and held higher levels year‐on‐year Ratio Numerator Denominator Jun'22 F.Y. Qtr 2021‐22 Net capital turnover ratio Sales Average Working capital 3.69x 3.78x Net profit ratio Profit for the period Sales 13.68% 13.48% Return on capital Earnings before interest and tax
Slide 20: Strategic initiatives
Strategic initiatives
Slide 21: Sales strategies
Sales strategies India revenue (₹ m) Merger of Indian entities to form RHI Magnesita India 22,000 Standalone Consolidated RHIM Group sales strategies 20,000 +20% The Group sales strategies are focused on the 18,000 Solutions business, growth in new markets (India 16,000 and China) and flow control
Slide 22: Vizag New tunnel kiln
Vizag RHI Magnesita India | September 2022 New tunnel kiln 22 August 2022
Slide 23: Bhiwadi New R&D centre
RHI Magnesita India | September 2022 Bhiwadi 23 New R&D centre November 2021
Slide 24: History of RHI Magnesita India
History of RHI Magnesita India The leader of refractories in India, West Asia and Africa RHI Magnesita India Ltd. was created from the integration of three Indian subsidiaries of RHI Magnesita Group in 2021: ⁃ RHI Clasil ‐ manufacturer of high alumina based refractory products with its plant in Viza
Slide 25: Q&A
Q&A
Slide 26: Disclaimer
Disclaimer Financial information contained herein, as well as other operational information, were not audited by independent auditors and may include forward‐looking statements and reflects the current views and perspectives of the management on the evolution of macro‐economic environment, condition
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