Slide 1: Investor Presentation
An Indian Multinational Investor Presentation August 2015 COMMITTED TO CLEAN METAL
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), has been prepared by IFGL Refractories Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not for
Slide 3: An Overview
Slide 4: IFGL Group – An Introduction
IFGL Group – An Introduction A global producer of 3 decades of Specialised Refractories for experience Iron and Steel Industry Presence in over half of the Global Steel markets 50 + Countries: Distribution and Services Network Consistent Track record for Growth & Profitability 4
Slide 5: Our Journey
Our Journey • 1990 – IFGL Refractories • 2012 – Set up of IFGL founded as a JV with Exports at Kandla SEZ, Harima Corp., Japan Gujarat • 1999 – Indo Flogates • 2008 – Acquisition of • 2015 – Capacity merged with IFGL Hoffman Group, expansions completed Refractories Germany in USA 1990’s 2008 2012-15
Slide 6: Experienced Management
Experienced Management Mr. S.K. Bajoria Mr. P. Bajoria Mr. Gian Carlo Cozzani Mr. Giorgio Cappelli Chairman Managing Director Director, Monocon Director, Monocon • Associated with IFGL from • Associated with IFGL since • Joins as Director Monocon • Promoter of S K Bajoria International Refractories
Slide 7: Successful International Acquisitions
Successful International Acquisitions Revenue in Company Manufacturing Acquisition 2015 Acquisition Acquired Facilities Cost Revenue Year Monocon UK + USA + GBP 9.5mn GBP 21mn GBP 27mn Group, China UK - 2005 Hoffman Germany, Euro 7.0mn Euro 9mn Euro 10mn Group, Europe UK - 2008 Ei Ceramics Cincinnat
Slide 8: Holding Structure
Holding Structure HO – Kolkata, India IFGL Refractories Limited Works - Kalunga, Orissa, India 51% 100% IFGL Exports Ltd IFGL Worldwide Holding Limited Kandla SEZ, Gujarat, India Technical and Financial Collaboration of Hofmann Monocon Group EI Ceramics Ceramic Krosaki Harima Corporation, Japan, (Su
Slide 9: Specialized Refractory for Steel making with Wide Product Range
Specialized Refractory for Steel making with Wide Product Range Isostatic & Tube Changer Slide Gate & Purging Refractories Cast Products, Zirconia Refractories & System & System Nozzles, Foundry Ceramics 9
Slide 10: Our Performance
Slide 11: Financial Overview
Financial Overview Consolidated Turnover [Rs. Crs.] FY15 Sales by Region +13.8% 781 793 Europe UK [exc UK] 676 12% 35% 606 473 Americas 23% India Asia [exc 22% India] 8% India Europe [exc UK] UK Americas FY11 FY12 FY13 FY14 FY15 Asia [exc India] 11
Slide 12: Profitable International Operations with…
Profitable International Operations with… Revenue EBITDA PAT Monocon Group [GBP mn] EI Ceramics [$ mn] Hoffman Ceramics [Euro mn] 27.6 16.8 10.2 10.2 27.4 16.6 15.9 9.9 26.1 2.7 0.9 2.6 2.5 2.3 2.2 1.5 0.5 0.5 0.6 1.6 1.5 1.5 1.3 1.1 0.3 0.7 0.2 FY13 FY14 FY15 FY13 FY14 FY15 FY13 FY14 FY15 Despite c
Slide 13: …increasing focus on improving Returns
…increasing focus on improving Returns* Monocon Group EI Ceramics Hoffman Ceramics +330Bps +210Bps +390Bps 8.4% 15.7% 9.0% 13.6% EBITDA 5.1% 5.1% FY13 FY15 FY13 FY15 FY13 FY15 +850Bps +1,320Bps -60Bps 13.9% 16.4% 26.4% 15.8% ROCE 13.2% 5.4% FY13 FY15 FY13 FY15 FY13 FY15 * On Basis of Local currency
Slide 14: Key Industry Highlights – Q1 FY16
Key Industry Highlights – Q1 FY16 In 2014, World Crude Steel Production grew 1% whereas India saw a growth of 4.3% Cheap imports of Steel in India remains a cause of concern however the recent intervention by Government of India to raise import duties shall provide some relief Demand for refracting
Slide 15: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars [Rs. Crs] Q1 FY16 Q1 FY15 Q4 FY15 FY 15 Total Income 185.8 205.2 195.4 793.5 Raw Material 95.1 101.8 105.8 406.1 Employee Expenses 28.4 28.9 30.0 117.9 Other Expenses 36.2 43.4 40.7 170.6 EBITDA 26.1 31.0 19.0 98.9 EBITDA % 14.0% 15.1% 9.7% 12.5% Finance Cost 1
Slide 16: Consolidated Financial Highlights – Q1 FY16
Consolidated Financial Highlights –Q1 FY16 Consolidated Turnover [Rs. Crs] EBITDA [Rs. Crs] -5% 31.0 +37.4% 205.2 195.4 185.8 26.1 19.0 Q1-FY15 Q4-FY15 Q1-FY16 Q1-FY15 Q4-FY15 Q1-FY16 EBITDA [%] PAT [Rs. Crs] +430 Bps 18.4 +81.0% 15.1% 14.0% 15.2 9.7% 8.4 Q1-FY15 Q4-FY15 Q1-FY16 Q1-FY15 Q4-FY15 Q1-F
Slide 17: Standalone Financial Highlights – Q1 FY16
Standalone Financial Highlights – Q1 FY16 Standalone Turnover [Rs. Crs] EBITDA [Rs. Crs] -8% +2.6% 12.5 88.1 11.9 81.8 80.7 11.6 Q1-FY15 Q4-FY15 Q1-FY16 Q1-FY15 Q4-FY15 Q1-FY16 Domestic V/s Export Sales [%] PAT [Rs. Crs] 7.0 +6.9% 6.4 Domestic 50.3% 49.7% Exports 6.0 Q1-FY15 Q4-FY15 Q1-FY16 17
Slide 18: Subsidiary Performance – Q1 FY16
Subsidiary Performance – Q1 FY16 Monocon Group [GBP mn] EI Ceramics [$ mn] 6.8 6.9 4.5 6.2 3.6 3.5 0.7 0.8 0.5 0.5 0.4 0.5 0.5 0.2 0.2 0.2 0.1 0.1 Q1-FY15 Q4-FY15 Q1-FY16 Q1-FY15 Q4-FY15 Q1-FY16 Revenue EBITDA IFGL Exports [Rs. Crs] Hoffman Ceramics [Euro mn] PAT 3.0 11.9 2.9 11.3 9.6 2.6 3.3 2.9 0.
Slide 19: Key Strengths & Strategy
Slide 20: Our Manufacturing Plants
Our Manufacturing Plants Monocon , UK Hofmann Ceramic, Mono Ceramics Inc Germany Michigan, US Tianjin Monocon Tianjin, China E I Ceramics, Cincinnati, US IFGL Exports, Kandla SEZ, Gujarat, India 20
Slide 21: Our Global Network
Ukraine Our Global Network Germany France Romania & Slovakia Russia UK Ital Poland Sweden y USA, Canada, Turkey Mexico Egypt Iran Malayasia Chile Aus, NZ S.Africa Works & Marketing offices Distributors/Agents 21
Slide 22: Strong Customer Relationships
Strong Customer Relationships 22
Slide 23: Future Strategy
Future Strategy Capacity Foray in New Expansion Markets IFGL is currently present in • Tripling capacity in Kandla - 50% of the steel producing Phase 1 completion by 2016 nations of the world leaving enough room for • On going exercise of geographical expansion of De-bottlenecking to improve our pro
Slide 24: Strong Track Record
Slide 25: IFGL 5 Year Performance
IFGL 5 Year Performance Particulars [Rs. Crs] FY11 FY 12 FY 13 FY 14 FY 15 CAGR Total Income 473.3 607.1 676.8 781.0 793.5 13.8% Raw Material 247.0 303.8 352.3 378.0 406.1 Employee 66.1 84.3 98.7 110.0 117.9 Expenses Other Expenses 113.3 141.8 163.2 181.0 170.6 EBITDA 47.0 77.2 62.7 113.0 98.9 20.4%
Slide 26: Key Ratios
Key Ratios* Return on Capital Employed [%] Net Debt : Equity Ratio [x] Net Debt : EBITDA Ratio [x] 22% 0.7 2.5 18% 18% 0.5 1.9 0.5 13% 13% 1.4 0.3 0.2 0.8 0.7 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 * Consolidated ROCE = EBIT/ (Total Debt + Networth) 26 Net Debt:Eq
Slide 27: Dividend Record
Dividend Record 20.0% 17.5% 15.0% 15.0% 5.0% FY11 FY12 FY13 FY14 FY15 Particulars (Rs.) FY11 FY12 FY13 FY14 FY15 Consolidated Book Value per Share 50.8 64.1 70.9 95.1 99.7 Consolidated Earning Per Share 6.9 11.3 7.9 18.3 15.1 Dividend Per Share 0.5 1.5 1.5 1.75 2.00 27
Slide 28: Contact
Contact For further information, please contact: Company : Investor Relations Advisors : IFGL Refractories Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L27202OR1989PLC002971 CIN - U74140MH2010PTC204285 Mr. Rajesh Agrawal Mr. Shogun Jain / Ms. Sanjita Ghosh rajesh.agrawal@ifgl.in jshogun@sgapl.net