Navin Fluorine International Limited · NSE:NAVINFLUOR
Navin Fluorine International — Investor Presentation (November 2013)
28 slides from Navin Fluorine International's investor presentation, November 2013
Slide 1: Navin Fluorine International Investor Presentation
Navin Fluorine International Limited Navin Fluorine International Investor Presentation October 2013 Investor Presentation November 2013 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Navin Fluorine International Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 3: NFIL – An Introduction
NFIL – An Introduction Revenue Diversified portfolio of advanced fluorine derivatives with wide range of applications Rs. 519 Crs. Largest Business Segments - Refrigerants, Bulk Fluorides, Specialty Fluoro Chemicals & CRAMS EBITDA Integrated Specialty Manufacturing facilities at Surat, Gujarat
Slide 4: Fluorine, A Vast Landscape…
Fluorine, A Vast Landscape… Global demand for Fluoro-chemicals in 2016 to reach 3.5 mn MT (Growth of 3.9% per annum), valued at USD 19.7 billion. Pharmaceuticals Agriculture Automotive Solar / Energy Electronics Steel Glass Aluminum White Goods ... and increasingly being used in newer applications 4
Slide 5: Evolution of NFIL
Evolution of NFIL … 2003 2003 - 2013 2013 ... Focus on CRAMS & Specialty Chemical Segment to drive growth CRAMS expansion at Dewas Commenced CRAMS business in 2011 Acquisition of Manchester Organics Ltd. (MOL) in 2011 Fluorspar JV with GMDC & GFL Started Fluoro-Chemical business in 1967
Slide 6: Professional Management
Professional Management Mr. H.A. Mafatlal – Chairman Professional Team …. Mr. Shekhar Khanolkar : Managing Director Chemical Engineer with Masters in Management studies and an alumni of Harvard Business School Spent more than 21 years in the Chemical industry with both Indian & Multinational Chemica
Slide 7: Business Segments
Business Segments Refrigerants Bulk Fluorides Specialty Chemicals CRAMS 7
Slide 8: Business Segments
Business Segments Refrigerant Gases Revenue : H1 FY 2014 Specialty Chemicals [Rs. Crs.] 73 74 34% 34% 13 55 6% 26% Bulk Fluorides CRAMS 8
Slide 9: Refrigerant Gases …
Refrigerant Gases … Product & Applications Geographical Break up Exports MAFRON 22 30% Used in Residential & Commercial air conditioning Exports to South-East Asia, Middle East, Domestic Saudi Arabia, Turkey, Egypt & South Africa Sales 70% MAFRON – Refrigerant Brand of NFIL Pioneered refrige
Slide 10: … demand to remain stable
… demand to remain stable Current Scenario… Road Ahead… Under Phase out due to its Ozone More than 90% of Room Air Conditioners depleting & Global warming (RAC) uses R-22 as refrigerant properties Growth in country’s air conditioner market Production restricted at average of fuelled by a rap
Slide 11: Bulk Fluoride
Bulk Fluoride Stable Business… Growth Drivers… Ongoing investment into research Hydrofluoric acid, ammonium bifluoride and and development to introduce other inorganic fluorides newer variants User Industry : Glass , Metals, Agro, Pharma, Plans to introduce several new FMCG etc. inorganic fl
Slide 12: Specialty Fluoro Chemicals …
Specialty Fluoro Chemicals … Positioned well … Fluorine based molecules with niche applications in Pharmaceutical, Agrochemical & Petrochemical segments Constant research and innovation Strong Product Portfolio of over 40 Products Introduction of 6 new fluorinated compounds with growing appl
Slide 13: … to be a key focus area
… to be a key focus area Expanding the facility … One of the largest BF3 facilities in the world Expanded manufacturing and research capacity in this segment to speed up new product development and commercialization R&D facility and pilot plant in Surat State-of-the-art multi purpose plant i
Slide 14: CRAMS …
CRAMS … Large Opportunity Initiative to cater to product development needs of innovator Pharma and Agro companies in Europe, US and Japan Opens new doors as molecules like Bromine and Chlorine are being progressively replaced by Fluorine Increasing acceptability of fluorine resulting in wide r
Slide 15: … to grow with MOL Integration
… to grow with MOL Integration Manchester Organics Limited Integration Synergies… Privately-held chemical company based in Milligram to multi-kilo research / production North England established in 1996 capability with high pressure / specialist Research experience in Fluorination fluorination
Slide 16: Key Strengths & Growth Drivers
Key Strengths & Growth Drivers 16
Slide 17: Key Strengths
Key Strengths Ability to handle Fluorination chemistry Expertise in handling Hydrofluoric acid Direct fluorination of pre-existing compound a difficult process requiring highly specialized equipments and techniques Fluorination capabilities include catalytic, non catalytic, gas phase and liqui
Slide 18: Focused Research
Focused Research Infrastructure Affiliations 4 Labs for organic and inorganic synthesis R&D Center recognized by DSIR, Ministry Vapor Phase chemistry Lab of Science & Technology, India High Pressure chemistry lab Working relationships with: Fixed bed continuous hydrogenator Indian Inst
Slide 19: Manufacturing Strengths …
Manufacturing Strengths … Surat, Gujarat Dewas, Madhya Pradesh Located on 135 acre plot Spread over an area of ~45 acres One of the largest integrated fluoro cGMP Pilot Plant with Kilo Laboratory chemicals complex in India, since 1967 Consisting of GL, SS, Hastelloy & High standards of H
Slide 20: … to be enhanced with expansion
… to be enhanced with expansion Expansion of the CRAMS facility planned at Dewas, Madhya Pradhesh To address ton level requirements of existing CRAMS customers Investment of ~ Rs 60 Crs. Expected to be commissioned by end of FY15 20
Slide 21: Marquee Clientele
Marquee Clientele a CLARIANT Ce) Bayer Se om. AUROBINDO Committed to Healthier Life By ewe sta 21 (5) Bayer CropScience <a syngenta HETERO Ub NovARTIS —LU PIN PHARMACEUTICALS, INC. ~Y Dr. REDDY'S SUN OrchidPharma?” I IN; Whe » ARVIND MAFATLAL GROUP
Slide 22: Growth Strategies
Growth Strategies 1 Constant investment in CRAMS by leveraging fluorination technology 2 Development of new products in Specialty Chemical segment 3 Refrigerants – Stable Cash Generating segment 4 Bulk Fluorides – Expansion into newer geographies 22
Slide 23: Financial Overview
Financial Overview 23
Slide 24: Standalone Profitability Statement
Standalone Profitability Statement Rs. Crs. H1 FY14 FY 13 FY 12 Revenue Core Business 215 468 452 CER Income - 51 226 Raw Material 101 254 247 Employee Expenses 25 44 41 Other Expenses 55 140 140 EBITDA 34 81 250 EBITDA - Core Business * 34 30 24 EBITDA Margin – Core Business * 16.1% 6.3% 5.4% Other
Slide 25: Standalone Balance Sheet
Standalone Balance Sheet Rs. Crs. H1 FY 14 FY 13 FY 12 Shareholder’s Fund Share capital 10 10 10 Reserves & Surplus 517 500 474 Non-current liabilities Deferred Tax Liabilities (net) 32 33 29 Other non-current liabilities 27 24 23 Current liabilities Short term borrowings 41 83 93 Trade Payables 49
Slide 26: Strong Investments portfolio
Strong Investments portfolio Rs. 259 Crs. of Investment Portfolio – Investment in Debt Mutual Fund of Rs. 150 Crs. – Investment in Properties of Rs. 50 Crs. Generated Income of Rs. 11.6 Crs. in FY 13 – Rs. 11.7 Crs. in H1 FY14 Strong Cash & Cash Equivalents – Deployment in Revenue Earning Inst
Slide 27: Dividend History
Dividend History Dividend Per Share (Rs.) Consistent Dividend Payout Continuous Dividend since last 10 17% 21% 34% 33% years 75 Special Dividend of Rs. 60 per share in FY 12 Payout Ratio of above 30% in last 2 years 15 15 14 7.5 Interim Dividend FY 10 FY 11 FY 12 FY 13 FY 14 Pay out Ratio 27
Slide 28: Contact
Contact For further information, please contact: Company : Investor Relations Advisors : Navin Fluorine International Ltd. Strategic Growth Advisors Pvt. Ltd. Mr. Partha Roy Chowdhury Ms. Swapnil Misra / Ms. Sanjita Ghosh Vice President – Finance & Accts. partha.roychowdhury@nfil.in mswapnil@sgapl.n
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