Slide 1: Prism Johnson Limited Investor Presentation May'20
AMONGST INDIA’S LEADING INTEGRATED BUILDING MATERIALS COMPANY PRISM JOHNSON LIMITED (Formerly Prism Cement Limited) Investor Presentation May’20 1 www.prismjohnson.in
Slide 2: Our Brands
Our Brands 2 www.prismjohnson.in
Slide 3: Integrated Building Materials Company - Markets Covered
Integrated Building Materials Company ´ PPC (Portland Pozzalana ´ Tiles (Ceramic, Vitrified, Cement) Industrial) ´ Champion ´ Ready-mixed concrete ´ Sanitary ware & Faucets ´ Champion Plus ´ Aggregates (Bath Fittings) ´ Duratech ´ Manufactured Sand ´ Engineering Marbles & ´ OPC (Ordinary Portland Qu
Slide 4: Year ended March 2020 – Executive Summary
Year ended March 2020 – Executive Summary Particulars Cement Division HRJ Disivion RMC Division Total Consolidated Data FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 Total Capacity 7mt 7mt 63msm 68msm 11.2cum 10.5cum NA NA Capacity Utilization (%) 82 89 58 58 32 37 NA NA Revenues (Rsmn) 25,840 27,733 1822
Slide 5: Year ended March 2020 - Standalone & Consolidated financials
Year ended March 2020 - Standalone & Consolidated financials Summary of Standalone Financials (Rsmn) FY20 FY19 % chg q Standalone EBITDA has declined by ~6% due to lockdown Net Sales 55535 59306 -6.4% Other operating income 188 250 -24.7% q EBIT is down by ~16% yoy due to higher depreciation Total r
Slide 6: Key highlights for year ended March 2020
Key highlights for year ended March 2020 ´ Prism Johnson reported consolidated EBITDA of `6013mn (excl insurance numbers), declining by ~3%. The decline is attributed to nationwide shutdown impacting the sales volume in fourth quarter of the fiscal year ´ Cement volumes de-grew by 3% on account of l
Slide 7: Key highlights for year ended March 2020
Key highlights for year ended March 2020 ´ RMC (India) revenues de-grew by ~5%. Volume declined by 14%. EBITDA was at ~`229mn, declining by ~41% due to prolonged monsoon, NGT ban on construction and volatile input costs ´ After four years of reduction, standalone debt (net) has increased by ~`900mn
Slide 8: Outlook
Outlook Outlook ´ Variable cost of Cement Division is likely to come down in the foreseeable future on account of commissioning of WHRS & solar power, fuel mix change and benign fuel cost ´ HRJ Division’s variable cost is likely to come down due to lower gas cost ´ All the three Divisions have ident
Slide 9: Health and safety priority during lockdown period
Health and safety priority during lockdown period ´ Health and Safety of all stakeholders has been of paramount importance during the lockdown period. Prism Johnson undertook following initiatives during these period towards the same ´ The Company provided Covid-19 Testing Machine to Madhya Pradesh
Slide 10: Quarter ended March 2020 – impacted by lockdown
Quarter ended March 2020 – impacted by lockdown Segment Revenue (Rs mn) Segment EBITDA (Rs mn) 9000 7954 2000 1696 8000 1530 6663 7000 6170 1500 6000 5075 1043 5000 4304 3939 1000 3659 3535 3442 4000 3000 500 2000 -126 -1 47 20 75 103 1000 0 0 Cement HRJ RMC Cement HRJ RMC -500 Q4 FY20 Q3 FY19 Q4 FY
Slide 11: Prism Johnson - Efforts towards re-creating history
PRISM JOHNSON - 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 HRJ Growth Sales CAGR – 39% (‘03-’12). EBITDA of 6.1% in FY11 RMC Blending Silo reconstruction, low capacity uti
Slide 12: www.prismjohnson.in
www.prismjohnson.in
Slide 13: Cement Overview
Cement Overview INDIA ´ 2 Modern Plants in Satna, MP(Central India) with effective capacity of 7mn ton Current ´ Superior Capital Employed < ~US$ 33/ton ´ Further consolidation in the cluster augurs well ´ Increase in effective coverage in existing markets ´ Network appointment and revival with focu
Slide 14: Cement – Financial & Operational Highlights
Cement – Financial & Operational Highlights Particulars Unit FY20 FY19 FY10 Cement & Clinker Sales Volume Mn Ton 5.72 6.27 2.86 Net Sales Rs in bn 25.7 27.6 10.2 Net realization incl clinker Rs/Ton 4494 4395 3562 Total cost Rs in bn 20.8 22.5 6.7 Total cost Rs/Ton 3627 3590 2347 EBITDA incl operatin
Slide 15: Cement – Financial & Operational Highlights
Cement – Financial & Operational Highlights Particulars Unit FY20 FY19 Raw materials Rs/Ton 531 479 Staff costs Rs/Ton 278 244 Power & fuel Rs/Ton 1227 1314 Freight & forwarding Rs/Ton 976 1002 Other exps Rs/Ton 615 551 Total cost Rs/Ton 3627 3590 ´ Power cost have declined due to sourcing of power
Slide 16: Cement – Realization and Cost Trend
Cement – Realization and Cost Trend Realization - Cost Trend 5000 1400 4494 1227 4395 1200 4500 4182 3907 1000 3784 3800 3686 889 4000 3587 EBITDA/Ton 834 Relz - Cost 800 3500 3562 3272 3627 3130 3632 3590 3518 3356 3148 600 501 3055 3000 619 567 400 477 2347 410 2500 2664 249 173 200 2000 0 FY10 FY
Slide 17: Cement EBITDA/Ton
Cement EBITDA/Ton ´ New Blending Silo ´ Pet Coke EBITDA/Ton Trend 1,000 889 834 800 567 619 600 477 in Rs 410 400 200 0 2015 2016 2017 2018 2019 2020 … EBITDA/Ton Trend ´ Better realizations and higher utilization levels ´ EBITDA per ton moved up despite cost pressures FY17 to FY20 As per IND AS 17
Slide 18: Complete Concrete Solutions
Complete Concrete Solutions | www.prismjohnson.in
Slide 19: 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. Benefits such as consistent quality, saving of site space, optimize labour, safety, reduced pollution amongst others ´ Started in mid-90s : ~10-12% of total c
Slide 20: RMC (India) Division
RMC (India) Division ´ 2nd largest player : pan India presence with 99 Operational Plants in 45 Cities/towns ´ Backward integration: 7 plants of aggregates & manufactured sand ´ BIS and NABL Accredited Labs ´ Volume decline of ~5% in FY20 due to prolong monsoon & NGT ban in some regions and lockdown
Slide 21: RMC EBITDA – Performance
RMC EBITDA – Performance 0.60 4.5% 0.52 4.1% 4.0% 0.50 0.38 3.5% 3.1% 0.39 0.40 3.0% 0.30 EBITDA ` bn 2.6% EBITDA % 2.5% 2.5% 0.30 0.28 2.0% 0.23 2.0% 0.20 1.6% 1.5% 1.0% 0.10 0.5% 0.00 0.0% 2015 2016 2017 2018 2019 2020 EBITDA % ´ Subdued Economy ´ Extra Cautious on Debtors Management ´ Low Capacit
Slide 22: Specialty concrete products
Dyecrete® comprises an eye catching array Repaircrete™ is Ready to use wet Micro Elitecrete™ is a light weight concrete of concrete that are suitable for a wide Concrete (M40 & M60) for structural with densities varying from 800 to 1800 variety of architectural and decorative strengthening & retrofi
Slide 23: Not just tiles, Lifestyles.
[JOHNSON Not just tiles, Lifestyles. www.prismcement.com
Slide 24: H & R Johnson (India) – (HRJ) Overview
H & R Johnson (India) – (HRJ) Overview ´ Set up in 1958, offers wide range of tiles, sanitaryware & faucets, engineering marbles & quartz and construction chemical ´ Overall capacity down to ~63mn m2 pa from 68 m2 pa due to close of aging unviable kiln. 11 Manufacturing plants (Own & JVs). Asset lig
Slide 25: Complimentary and Emerging businesses to leverage Brand & Distributions
Complimentary and Emerging businesses to leverage Brand & Distributions Construction Chemicals Bathrooms •50% Stake in Ardex Endura—JV with Ardex, Germany •Sanitaryware , Taps / Bath Fittings, •R&D Driven •Healthy industry structure; Brand and •Pioneer in tile fixing adhesives after sales service pl
Slide 26: HRJ Initiatives going ahead
HRJ Initiatives going ahead ´ Consolidated volumes de-grew by ~5% in FY20, could have been better but for lockdown. Consolidated EBITDA at similar levels as in FY19. Working capital under control. Key highlights during FY20: ´ Turnaround visible however full year performance impacted by lockdown. ´
Slide 27: HRJ Consolidated EBITDA - Performance
HRJ Consolidated EBITDA - Performance 0.90 4.0% 0.78 0.77 3.7% 3.7% 0.80 3.5% 3.3% 0.68 0.70 3.3% 0.63 3.0% 0.60 0.60 2.9% 2.5% EBITDA ` bn EBITDA % 0.50 2.0% 0.40 1.5% 0.30 1.0% 0.20 0.10 0.08 0.5% 0.4% 0.00 0.0% 2015 2016 2017 2018 2019 2020 EBITDA EBITDA % 27 FY16 to FY20 as per IND AS www.prismj
Slide 28: ESG initiatives – efforts to gain momentum
ESG initiatives – efforts to gain momentum Environment stands out as a key issue in ESG analysis. Prism Johnson is committed towards achievement and maintenance of high standards of Environment, Health and Safety issues at all plants and offices. • The Company actively looks for opportunity to repla
Slide 29: ESG initiatives
ESG initiatives - With the objective of giving back to the society several initiatives were conducted during the quarter at PAN India level: • Free medical assistance to nearby villagers and organization of free mega medical camps at Satna • Awareness on addiction and its health effects amongst empl
Slide 30: ESG – Awards & Recognitions
ESG – Awards & Recognitions 30 www.prismjohnson.in
Slide 31: Raheja QBE General Insurance – way forward
Raheja QBE General Insurance – way forward ´ Joint Venture with QBE group of Australia with Prism Johnson stake at 51%. Raheja QBE till recently had a liability led specialist insurance focus. Foray into retail business ´ New brand identity introduced with the core messaging of 'Your Kind of Insuran
Slide 32: Management Profile
Management Profile Mr. Vijay Aggarwal, Managing Director ´ B. Tech (Elec.) from IIT, Delhi and PGDM from IIM, Ahmedabad ´ Tenure in Company: 26 years ´ Past experience includes SBI Capital Markets ´ On the Board of various companies including Exide Life Insurance Co, Aptech, Ardex Endura (India), Ra
Slide 33: Management Profile
Management Profile Mr. Atul Desai, Executive Director & CEO – RMC ´ B.E. (Chemical) from Gujarat University and MBA (Marketing) from South Gujarat University. ´ Tenure in Company: nearly four years ´ Past experience includes Reliance Cement, Ambuja Cement and GSFC Mr. Sarat Chandak, Executive Direct
Slide 34: 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: 25 years ´ Past experience includes New India Assurance, Thirumalai Chemicals and Vijayshree Chemicals Mr. Manish Bhatia , CFO ´
Slide 35: Lockdown and WHRS Capex lead to temporary halt to otherwise improving financial parameters
Lockdown and WHRS Capex lead to temporary halt to otherwise improving financial parameters ´ Borrowings as on 31st March’20 - Net standalone `14.75bn, has gone up mainly due to WHRS capex ´ Interest cost for FY20 is also higher due to liquidity management. Company had Fixed Deposits worth `3.6bn as
Slide 36: Treasury / Liquidity management
Treasury / Liquidity management ´ The Company has not opted for moratorium with any banks / FIs for principal or interest payments. The Company did not opt for moratorium on TDS and made all payments in time ´ Over the years, the Company has been proactively managing its liquidity profile. Given the
Slide 37: Scheme of Arrangement & Amalgamation
Scheme of Arrangement & Amalgamation Company has considered and approved Composite Scheme of Arrangement and Amalgamation amongst Prism Johnson Limited (PJL), H. & R. Johnson (India) TBK Limited, Milano Bathroom Fittings Private Limited, Silica Ceramica Private Limited, TBK Rangoli Tile Bath Kitchen
Slide 38: Shareholding Pattern as on 31st Mar'20
Shareholding Pattern as on 31st Mar’20 Non Inst, 13.8% Domestic Inst, 7.6% Foreign Inst, 3.7% Promoters, 74.9% Institution category holding over 1% of total shares Shareholder % SBI Large & Mid cap 3.8 Jupiter India Fund 2.2 DSP Small Cap Fund 1.4 HDFC Trustee Co Ltd 1.2 IDFC Sterling Value Fund 1.1
Slide 39: Thank You
THANK YOU For further information, please contact: Munzal Shah investorrelations@prismjohnson.in +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