Prism Johnson Limited · NSE:PRSMJOHNSN
Prism Johnson — Investor Presentation (April 2017)
32 slides from Prism Johnson's investor presentation, Apr 12, 2017
Slide 1: Intimation of Analyst / Institutional Investors Meets
f BUREAU VERITAS Santacruz (W}, Mumbai - 400 054. Certification pRis@ Tel.: +91-22-6675 4142 / 43 Fax : 2600 1304 CEMENT website : www. prismcement.com PRISM CEMENT LIMITED “Rahejas”, Main Avenue, V.P Road, April 12, 2017 The National Stock Exchange of India Ltd., | The Bombay Stock Exchange, Exchan
Slide 2: Prism Cement Limited Investor Presentation May'16
AMONGST INDIA’S LEADING INTEGRATED BUILDING MATERIALS COMPANY Prism Cement Limited Investor Presentation May’16 1 www.prismcement.com
Slide 3: Our Brands
Our Brands 2 www.prismcement.com
Slide 4: Integrated Building Materials Company
Integrated Building Materials Company RMC Readymix H&R Johnson (India) Prism Cement Ready-mixed concrete Tiles (Ceramic, Vitrified, PPC Industrial) Champion Aggregates Sanitaryware & Faucets Champion Plus Manufactured Sand (Bath Fittings) Hi-tech / Duratech Modular Kitchens OPC
Slide 5: Prism Cement - Efforts towards re-creating history
Prism Cement- Efforts towards re-creating history EBITDA – `1229/Ton & ROCE – 63% in FY 10 Cement Years of Benchmark Sales CAGR – 17% (‘03-’12). Conso EBITDA of 14.6% in FY10 Profitable TBK Growth Sales CAGR – 39% (‘03-’12). EBITDA of 6.1% in FY11 RMC Blending Silo reconstruction, low capacity utilz
Slide 6: Business Environment – expect better demand environment
Business Environment – expect better demand environment Infrastructure activities likely to pick up – especially road construction (concretization), railways incl dedicated freight corridors, ports and power Focus on Housing for all Program. Rural housing likely to see demand growth subject to n
Slide 7: www.prismcement.com
www.prismcement.com
Slide 8: Cement Overview
Cement Overview 2 Modern Plants in Satna, MP(Central India) with effective capacity of 7mn ton Current Superior Capital Employed < ~US$ 38mn/ton No significant capacities planned in Cluster. Consolidation happening in the cluster Wide network of ~3790 dealers and ~ 155 stocking points Laun
Slide 9: Cement – Financial & Operational Highlights
Cement – Financial & Operational Highlights Particulars Unit FY16 FY15 FY10 Cement & clinker sales volume Mn Ton 5.29 5.60 2.86 Net Sales Rs in bn 20.1 21.9 10.2 Net realization incl clinker Rs/Ton 3800 3907 3562 Total cost Rs in bn 17.7 19.7 6.7 Total cost Rs/Ton 3356 3518 2347 EBITDA incl operatin
Slide 10: Cement – Realization and Cost Trend
Cement – Realization and Cost Trend 4500 1400 1227 3911 1200 3907 4000 3784 3800 1000 Realn – Cost `/Ton 3562 ` EBITDA/Ton 3500 832 3272 3130 3611 3632 800 3518 3356 3055 600 3000 2859 501 477 249 400 2500 2347 410 2664 339 200 2036 173 2000 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Realisation Tota
Slide 11: Cement EBITDA/Ton
Cement EBITDA/Ton New Blending Silo Despite reduced realn Pet Coke Q4FY16 EBITDA / ton at `594 1,400 1,229 1,200 1,000 800 741 In ` 600 501 477 410 400 339 249 173 200 0 … 2009 2010 2011 2012 2013 2014 2015 2016 Subdued Markets ROCE: 63% Blending Silo Re-construction Low Capacity Utili
Slide 12: www.prismcement.com
www.prismcement.com
Slide 13: RMC Overview
RMC Overview Ready mixed concrete is concrete in ready to use form. It is one of the most versatile building material used in construction. Started in mid-90s : ~10% of total cement used for concrete in India is through RMC route (Metros / Tier1 ~35% & Tier2 ~20%) v/s 50-70% in developed economi
Slide 14: RMC Readymix (India)
RMC Readymix (India) 2nd largest player : pan India presence with 81 Plants in 38 Cities/towns Backward integration: 7 plants of aggregates & manufactured sand NABL Accredited Labs ’03-’12 Sales CAGR of 39%. After nearly flattish growth for 4 years, double digit growth expected in the medium
Slide 15: RMC EBITDA – Performance
RMC EBITDA – Performance Q4FY16 EBITDA @ 5.7% 0.60 0.56 0.56 7.0% 5.9% 0.50 0.49 6.0% 0.50 4.9% 0.40 6.1% 0.39 5.0% 0.40 EBITDA ` bn EBITDA % 0.30 4.0% 0.30 2.4% 4.0% 3.0% 0.20 3.4% 2.5% 2.0% 0.10 1.0% 0.00 0.0% 2010 2011 2012 2013 2014 2015 2016 Subdued Economy Extra Cautious on Debtors Managem
Slide 16: RMC Specials Value-added Concrete
EnviroprotectcreteTM ® Thermocrete is temperature It is a High Performance and controlled concrete used for Sustainable concrete. Used in mass mitigating termal tensile cracks foundations, underground structures etc RMC Specials Value-added Concrete DyecreteTM comprises an eye catching array of conc
Slide 17: H&R Johnson
Oo JOHNSON REDEFINING LIFESTYLES, WORLDWIDE.
Slide 18: TBK Overview
TBK Overview Set up in 1958, offering wide range of tiles, sanitary ware, bath fittings, modular kitchens and construction chemical 10 Manufacturing plants(Own & JVs) with capacity of ~58mn m2 pa. Asset light business model through six manufacturing JVs contributing 70% of capacity with 4 JVs in
Slide 19: On recovery path…
On recovery path… Enjoyed leadership position with ’03 -’12 (Sales CAGR 17%) FY10 consolidated EBITDA margins of 14.6% FY11-14, Challenging years as 40% of total capacity in AP and Karnataka suffered on account of power and fuel availability Addressed Power and fuel issues in South by Inst
Slide 20: TBK EBITDA - Performance
TBK EBITDA - Performance 2.00 16.0% 1.76 1.80 14.0% 1.56 1.60 12.0% 1.40 1.18 EBITDA ` bn 1.20 10.0% EBITDA % 1.00 14.6% 0.89 8.0% 10.3% 0.78 0.80 0.67 6.0% 0.60 6.7% 0.45 4.0% 0.40 4.7% 0.20 3.3% 2.0% 2.2% 2.9% 0.00 0.0% 2010 2011 2012 2013 2014 2015 2016 19 www.prismcement.com
Slide 21: Strategic Investment – Raheja QBE General Insurance
Strategic Investment – Raheja QBE General Insurance JV with QBE Group of Australia Focus on speciality products like liability insurance, marine liability and trade credit Strategic sale of 23% stake to existing partner for AUS$ 21.6mn Prism’s investment : 51% stake at book value of `1.05bn
Slide 22: Management Profile
Management Profile Mr. Vijay Aggarwal, Managing Director B. Tech (Elec.) from IIT, Delhi and PGDM from IIM, Ahmedabad Tenure in Company: 22 years Past experience includes SBI Capital Markets On the Board of various companies including Exide Industries, Exide Life Insurance Co, Aptech, Asiane
Slide 23: Management Profile
Management Profile Mr. Joydeep Mukherjee, Executive Director & CEO - HRJ PGDM in Marketing Management, IGNOU, Kolkata and EMIB - International Business and Marketing from IIFT, New Delhi. Tenure in Company: 6 months Past experience includes ACC and Hindalco Mr. Venugopal M Panicker, Executive
Slide 24: Management Profile
Management Profile Mrs. Aneeta Kulkarni – Company Secretary Company Secretary, LLB, PGDAM (NMIMS) and FIII (Fellow of Insurance Institute of India) Tenure in Company: 21 years Past experience includes New India Assurance, Thirumalai Chemicals and Vijayshree Chemicals Mr. Pramod Akhramka , CFO
Slide 25: Focus on de-leveraging
Focus on de-leveraging Borrowings as on 31st March’16 Net consolidated `20.7bn, down by ~`0.9bn Net standalone `17.5bn, down by ~`0.7bn Average cost of Standalone debt: 10.75% 24 www.prismcement.com
Slide 26: Shareholding Pattern as on 31st Mar'16
Shareholding Pattern as on 31st Mar’16 Non Inst, Domestic 9.1% Inst, 9.6% Foreign Inst, 6.4% Promoters, 74.9% Public category holding over 1% of total shares Shareholder % HDFC Trustee Company Ltd - HDFC Equity Fund 3.5 Morgan Stanley Asia (Singapore) PTE 2.1 National Westminster Bank Plc as Trustee
Slide 27: Thank You
THANK YOU For further information, please contact: Munzal Shah investorrelations@prismcement.com +91 22 6675 4142-46 Disclaimer Cautionary statement regarding forward – looking statements This presentation may contain certain forward – looking statements relating to the future business, development
Slide 28: Investor Update
Investor Update February 14, 2017 Prism Cement Limited today announced un-audited standalone financial results for the quarter ended December 31, 2016 Financial Overview (Un-audited for the quarter ended December 31, 2016) (Figures in ` Crores unless mentioned otherwise) Particulars Q3 ’16-17 Q2 ’16
Slide 29: Performance Review and key developments
Performance Review and key developments The results for the quarter ended December 2016 were impacted by demonetization. The Cement and RMC Division reported better profitability as compared to quarter ended September 30th, 2016, while TBK segment is still in the consolidation phase reporting a loss
Slide 30: Divisional outlook
Regarding Cement Division, in the near term we expect better crops for farmers in our catchment area on the back of good monsoons, higher minimum support prices and ongoing thrust of government spending on infrastructure to drive demand. The H & R Johnson (India) Division continues to possess robust
Slide 31: About Prism Cement and H & R Johnson
Prism Cement Prism Cement commenced production at its Unit I in August, 1997 and scaled up capacity with Unit II in December, 2010. It manufactures Portland Pozzolana Cement (PPC) with the brand name 'Champion' & ‘Champion Plus’ and premium quality grade of cement under ‘HI-TECH’ and ‘DURATECH’ bran
Slide 32: Investor Relations
Investor Relations Prism Cement Limited is committed to creating long-term sustainable shareholder value through successful implementation of its growth plans. The company’s investor relations mission is to maintain an ongoing awareness of its performance among shareholders and financial community.