Prism Johnson Limited · NSE:PRSMJOHNSN
Prism Johnson — Investor Presentation (May 2019)
33 slides from Prism Johnson's investor presentation, May 10, 2019
Slide 1: Prism Johnson Limited exchange filing cover letter
PRISM JOHNSON LIMITED (FORMERLY PRISM CEMENT LIMITED) Ref. : ASK/UD/2018-19/Q-4 IP May 10, 2019 The National Stock Exchange (India) | BSE Limited, Ltd., Exchange Plaza, Bandra-Kurla_ | Corporate Relationship Department, Complex, Bandra (East), P, J. Towers, Dalal Street, Fort, Mumbai - 400 051. Mumb
Slide 2: Prism Johnson Limited Investor Presentation May 2019
AMONGST INDIA’S LEADING INTEGRATED BUILDING MATERIALS COMPANY PRISM JOHNSON LIMITED (Formerly Prism Cement Limited) Investor Presentation May’19 1 www.prismjohnson.in
Slide 3: Our Brands
Our Brands 2 www.prismjohnson.in
Slide 4: 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 5: Year ended March 2019 – Executive Summary
Year ended March 2019 – Executive Summary Particulars Cement Division HRJ Disivion RMC Division Total Consolidated Data FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 Total Capacity 7mt 7mt 68msm 68msm 10.5cum 9.7cum NA NA Capacity Utilization (%) 89 81 58 58 37 35 NA NA Revenues (Rsmn) 27,733 23,723 18273
Slide 6: Year ended March 2019 - Standalone & Consolidated financials
Year ended March 2019 - Standalone & Consolidated financials Summary of Standalone Financials (Rsmn) FY19 FY18 % chg q Standalone EBITDA has increased by ~46% led by Net Sales 59306 53889 10.1% Cement Division EBITDA, up ~50% Other operating income 250 196 27.8% Total revenue from operations 59556 5
Slide 7: Key highlights for year ended March 2019
Key highlights for year ended March 2019 ´ Cement & clinker volumes grew by 11% to 6.27mn tons aided by Individual Home Building and infrastructure segment. Premium products volume contribution improved by 300bps to 18% of overall Cement volumes ´ Cement EBITDA per ton was at `834, swing of `215 ove
Slide 8: Quarter ended March 2019 – Executive Summary
Quarter ended March 2019 – Executive Summary Segment Revenue (Rs mn) Segment EBITDA (Rs mn) 10000 2000 1700 7954 7556 8000 6586 1500 1366 5075 1051 6000 4770 4254 3939 3731 3860 1000 4000 500 2000 46 162 103 57 164 -21 0 0 Cement HRJ RMC Cement HRJ RMC -500 Q4 FY19 Q3 FY19 Q4 FY18 Q4 FY19 Q3 FY19 Q4
Slide 9: 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 10: Business Environment – expect better demand environment
Business Environment – expect better demand environment ´ Government’s focus on Infrastructure continues – road construction (improved execution), railways, metros, ports, airports and power transmission ´ Focus on Housing for all Program. Ramp up in Pradhan Mantri Awas Yogna - Gramin (PMAY-G) ´ Ind
Slide 11: www.prismjohnson.in
www.prismjohnson.in
Slide 12: Cement Overview
Cement Overview INDIA ´ 2 Modern Plants in Satna, MP(Central India) with effective capacity of 7mn ton Current ´ Superior Capital Employed < ~US$ 32/ton ´ Strong volume growth in the cluster leading to higher capacity utilization levels ´ 15MW solar power commissioning by end of Q1FY20. Further addi
Slide 13: Cement – Financial & Operational Highlights
Cement – Financial & Operational Highlights Particulars Unit FY19 FY18 FY10 Cement & Clinker Sales Volume * Mn Ton 6.27 5.64 2.86 Net Sales ` in bn 27.7 23.6 10.2 Net realization incl clinker `/Ton 4395 4182 3562 Total cost ` in bn 22.5 20.2 6.7 Total cost `/Ton 3590 3587 2347 EBITDA incl operating
Slide 14: Cement – Realization and Cost Trend
Cement – Realization and Cost Trend Realization - Cost Trend 5000 1400 1227 4395 1200 4500 4182 3911 3907 3800 1000 4000 3784 3562 3686 3590 3587 EBITDA/Ton 832 Relz - Cost 3272 800 3500 3130 3518 3356 3148 3611 3632 834 600 3000 501 619 2859 3055 567 400 2664 339 477 2500 249 410 200 2036 2347 173
Slide 15: Cement EBITDA/Ton
Cement EBITDA/Ton ´ New Blending Silo ´ Q4 FY19 ROCE: 32% Annualized ´ Pet Coke ´ Q4FY19 EBITDA / ton at `971 EBITDA/Ton Trend 1,500 1,229 1,000 741 834 in Rs 501 567 619 410 477 500 249 339 173 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EBITDA/Ton Trend … … ROCE: 63% ´ Subdued Markets
Slide 16: Complete Concrete Solutions
Complete Concrete Solutions | www.prismjohnson.in |
Slide 17: 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 18: RMC (India) Division
RMC (India) Division ´ 2nd largest player : pan India presence with 97 Operational Plants in 44 Cities/towns ´ Backward integration: 5 plants of aggregates & manufactured sand ´ NABL Accredited Labs ´ Double digit volume growth in FY19 after ~5 years of flattish growth. FY03-12 sales CAGR of 39% ´ D
Slide 19: RMC EBITDA – Performance
RMC EBITDA – Performance 0.60 0.56 0.56 7.0% 0.52 6.1% 0.49 6.0% 0.50 5.9% 0.40 4.9% 0.39 0.38 0.39 5.0% 0.40 EBITDA ` bn EBITDA % 0.30 4.1% 4.0% 0.30 0.28 3.4% 3.1% 3.0% 2.4% 2.5% 2.6% 0.20 2.0% 2.0% 0.10 1.0% 0.00 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EBITDA Series2 ´ Subdued Econ
Slide 20: Specials: Dyecrete, Repaircrete, Elitecrete and other concretes
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 21: Johnson – Not just tiles, Lifestyles
JOHNSON Not just tiles, Lifestyles. www.prismcement.com
Slide 22: H & R Johnson (India) – (HRJ) Overview
H & R Johnson (India) – (HRJ) Overview ´ Completed 61 years of its presence ´ Set up in 1958, offers wide range of tiles, sanitaryware & faucets, engineering marbles & quartz and construction chemical ´ Expanded overall capacity to ~68mn m2 pa from 61 m2 pa. 13 Manufacturing plants (Own & JVs). Asse
Slide 23: Worst is behind. Continues to invest in front-end
Worst is behind. Continues to invest in front-end ´ 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
Slide 24: HRJ Consolidated EBITDA - Performance
HRJ Consolidated EBITDA - Performance 2.00 16.0% 1.80 1.76 14.0% 1.60 1.56 12.0% 1.40 14.6% 1.18 10.0% 1.20 EBITDA ` bn EBITDA % 1.00 10.3% 0.89 8.0% 0.78 0.77 0.80 6.0% 0.63 0.60 0.60 6.7% 0.45 4.0% 0.40 3.6% 4.7% 3.7% 3.3% 2.0% 0.20 2.9% 0.08 2.2% 0.00 0.4% 0.0% 2010 2011 2012 2013 2014 2015 2016
Slide 25: To summarize……
To summarize…… ´ Improved financial performance during FY19 in a challenging environment: ´ Cement Division:- Best ever volumes and better operating performance on the back of higher utilization levels ´ HRJ Division:- Volume growth improved. Deepened the initiatives undertaken over last couple of y
Slide 26: Raheja QBE General Insurance – future plans
Raheja QBE General Insurance – future plans ´ Joint Venture with QBE group of Australia with Prism Johnson stake at 51%. ´ General Insurance industry CAGR at 17% in last 18 years continues its upwards trajectory ´ India is currently the 4th largest non-life insurance market in Asia ´ Raheja QBE till
Slide 27: Awards and Accolades
Awards and Accolades “H & R Johnson” has First Ready Mixed been recognized as Concrete Manufacturer one of ‘The Economic in India to receive Times Best Brands 20 Quality Management 19’ System (QMS) Certification from Bureau of Indian Standard (BIS) for Design, Production and Supply of Ready Mixed Co
Slide 28: Management Profile
Management Profile Mr. Vijay Aggarwal, Managing Director ´ B. Tech (Elec.) from IIT, Delhi and PGDM from IIM, Ahmedabad ´ Tenure in Company: 25 years ´ Past experience includes SBI Capital Markets ´ On the Board of various companies including Exide Industries, Exide Life Insurance Co, Aptech, Asiane
Slide 29: 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 three years ´ Past experience includes Reliance Cement, Ambuja Cement and GSFC Mr. Sarat Chandak, Executive Direc
Slide 30: 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: 24 years ´ Past experience includes New India Assurance, Thirumalai Chemicals and Vijayshree Chemicals Mr. Manish Bhatia , CFO ´
Slide 31: Focus on de-leveraging…to accelerate further
Focus on de-leveraging…to accelerate further ´ Borrowings as on 31st March’19 ´ Net standalone `14.14bn, down by ~`0.70bn Financial ratios improving 5.0% 4.6% 4.5% 8 4.0% 7.2 3.7% 3.5% 6 6.3 2.9% 3.0% 5.6 4 3.9 2.5 2.0% 2 2015 2016 2017 2018 2019 Financial Cost as % of Sales Standalone Net Debt / EB
Slide 32: Shareholding Pattern as on 31st Mar’19
Shareholding Pattern as on 31st Mar’19 Non Inst, 13.9% Domestic Inst, 4.5% Foreign Inst, 6.8% Promoters, 74.9% Institution category holding over 1% of total shares Shareholder % National Westminster Bank Plc as Trustee of the Jupiter India Fund 2.4 HDFC Trustee Company Ltd 1.7 L&T Mutual Fund Truste
Slide 33: 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