Camlin Fine Sciences Limited · NSE:CAMLINFINE
Camlin Fine Sciences — Non-Deal Roadshow (May 2016)
34 slides from Camlin Fine Sciences's roadshow presentation, May 24, 2016
Slide 1: Stock exchange intimation letter
Camlin Fine Sciences Ltd. Plot No . F/11 & F/ 12, WICEL, Opp. SEEPZ Main Gate, Central Road, Andheri (E}, Mumbai-4?0 093, India . T : +91 22 6700 1000 I F : +91 22 2832 4404 I E: corporate@camlinfs.com I www.camlmfs.com ISO 22000 Certified Company J CIN L7 41OOMH1993PLC075361 Date: 2410512016 To, BS
Slide 2: Corporate Presentation
Shelf‐life solutions | Performance Chemicals | Aroma Chemicals Corporate Presentation May 24, 24 2016
Slide 3: Disclaimer
Disclaimer ● This presentation is confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Camlin Fine Sciences Limited (also referred to as ‘Company’). By attending a meeting where this presentation is made, or by reading t
Slide 4: Camlin Fine Sciences Limited (CFS)
Camlin Fine Sciences Limited (CFS) Leveraging core competencies to address a large target market 2
Slide 5: CFS – Providing shelf-life solutions along with aroma and performance chemicals
CFS – Providing shelf‐life solutions along with aroma and performance chemicals to target large end user industries Shelf‐life Solutions Performance Chemicals Aroma chemicals ● Shelf‐life extension products ● Wide array of applications ● Synthetic replacement for natural Vanilla and offers multiple
Slide 6: CFS | Key strengths and differentiators
CFS | Key strengths and differentiators Global player in shelf‐life solutions 1 across food, f d feed f d and d pet‐food tf d Strong financials and cash 8 flows Integrated across the value chain 2 Experienced promoters and 7 professional management team Local presence in global markets 3 Proven abil
Slide 7: Global player in shelf-life solutions and intermediates for food, feed and pet food
Global player in shelf‐life solutions and intermediates for food, feed and pet food Strong presence in basic food grade1 antioxidants; gradually expanding into blends Global l b l antioxidants i id (industry size of ~US$3.2bn) Natural antioxidants Synthetic antioxidants TBHQ + BHA CFS has a signific
Slide 8: Diversified product base
Diversified product base Across antioxidant, aroma and performance chemicals segments CFS’ product portfolio Others: 1% Segment Product Applications Aroma: 3% Diphenols Catechol ● Intermediate other compounds used in Pharma, Agrochemicals and fragrance industries Diphenols: 18% HQ ● Stabilization of
Slide 9: Fully integrated across the value chain
Fully integrated across the value chain Ensures better control on supply chain, realizations and margins Key Raw Material Commodity Phenol Versalis; Novapex chemical CFS Europe Diphenols Eastman; Mitsui Hydroquinone Catechol Solvay/ Rhodia; Ube Other CFS group entities1 Performance Shelf Life Soluti
Slide 10: Local presence in global markets
Local presence in global markets On‐ground presence in America and Europe with strong India footprint Geographical reach across key markets Denmark Netherlands United Kingdom Ravenna, Italy Tarapur Iowa, USA Shanghai, China Khopoli p Mexico city Cuba Guatemala Mahad Columbia Mumbai Peru Owned Plants
Slide 11: Diversified customer base
Diversified customer base Across customers geographies and end‐user industries Revenue base diversified across geographies Going forward diversification should increase further ● Currently ~56% revenues are from food grade antioxidants; Performance Chemicals (PC) contributes to ~22% of revenues, Dip
Slide 12: Continuous investments in R&D across geographies
Continuous investments in R&D across geographies… R&D facilities across the world with #34 scientists across 2 R&D labs and 4 Application Labs R&D Labs Iowa, USA Ravenna, Italy ● Development of new products and value additions to existing products Application Labs Mumbai, India ● Product and process
Slide 13: …has enabled process improvements and global certifications
…has enabled process improvements and global certifications Approval for green process to manufacture Guaiacol Ex – ONCB route (concerns on being carcinogenic and environmentally harmful) Chlorobenzene ONCB O anisidine O‐anisidine Benzene Guaiacol Vanillin Ex – Catechol route (believed to be Phenol
Slide 14: Proven ability to acquire and turn around businesses
Proven ability to acquire and turn around businesses CFS’ acquisition and turnaround of Italian subsidiary was well conceived and executed Demonstrated experience in acquiring and integrating companies Acquired in 2011 ● At acquisition, Borregaard’s Italian subsidiary was engaged in the manufacturin
Slide 15: Leadership team across the globe to address customer demands locally
Leadership team across the globe to address customer demands locally CFS’ top management operates from across the world Jack Boers Senior VP – Antioxidant Strategy Jorgen Sorensen and d Business B i Development D l Global VP – Antioxidants Sandra Grossmann Global Business Development – Pet‐food CFS
Slide 16: Experienced leadership team
Experienced leadership team Experienced leadership team Experience in the food industry with a specialization in Over twenty years of experience in management positions Anne‐Mette Frost antioxidants for over 23 years within the food ingredients & packaging industries with a focus Global Applicat
Slide 17: Robust financial profile
Robust financial profile1 CFS’ Income has grown steadily… …with improving EBITDA margins… ...that has led to healthy operating cash flows Revenues (INR mn) EBITDA margin (%) CFO (INR mn) 19.1% 556 600 463 5,583 16.2% 5,087 4,893 14.9% 400 267 13.8% 3,736 12.0% 200 3,352 0 (200) (400) (319) FY12 FY13
Slide 18: Future growth strategy
> Camlin Fine Sciences Future growth strategy
Slide 19: Key growth drivers for CFS
Key growth drivers for CFS Focus on blends for food, feed and pet food Capacity expansion through new Scale Vanillin business plant at Dahej SEZ Leverage Mexico acquisition to Increased revenue from expand presence & product basket introduction of new derivatives of HQ and Catechol 17
Slide 20: Focus on synthetic and natural blends for food, feed and pet food
Focus on synthetic and natural blends for food, feed and pet food Blends market offers large opportunities antioxidant blends for food, feed and pet food Natural Vanilla Natural Blends Synthetic Blends ((industryy size off ~8,000MTPA) , ) CFS has started focusing on this segment recently and intends
Slide 21: Scale Vanillin business
Scale Vanillin business Focus on and grow the Vanillin business Vanilla flavor/ fragrance (natural and synthetic) Natural Vanilla Synthetic Vanilla Ex‐ONCB process Ex‐catechol process (potentially carcinogenic; less cost effective; higher (preferred manufacturing route; constrained by pollution) ava
Slide 22: Increased revenue contribution from performance chemicals business
Increased revenue contribution from performance chemicals business Performance chemicals present a large opportunity Revenue contribution from performance chemicals has increased over …and CFS is implementing plans to keep growing at a fast pace the last 2 years… 0.6% 1% Key initiatives in performan
Slide 23: Leverage Mexico acquisition to expand presence & product basket
Leverage Mexico acquisition to expand presence & product basket Mexico acquisition offers significant synergies with CFS About the acquisition US$ 000s CY14 CY15 CFS, CFS through th h a WOS, WOS acquired i d 65% off Dresen D Q i i for Quimica f a consideration id ti off USD 7.8mn 78 N t Sales Net
Slide 24: Proposed expansion at Dahej plant
Proposed expansion at Dahej plant Key characteristics of the proposed plant at Dahej Particulars Details Product particulars Capacity Proposed area for the plant Dahej SEZ, Gujarat Overall plant ● HQ and its derivatives (current thought process) ● Catechol and its derivatives Land area 67,507 square
Slide 25: Annexure
> Camlin Fine Sciences Annexure
Slide 26: Camlin Fine Sciences (CFS) | A quick introduction
Camlin Fine Sciences (“CFS”) | A quick introduction Company Overview Summary financials (INR mn) ● CFS is a global player in shelf‐life solution chemistry FY14 FY15 FY16 One of the leadingg manufacturers of TBHQ Q and BHA Net Sales 5,087 5,583 4,893 Global reach through manufacturing plants acro
Slide 27: The story so far
The story so far ● Acquisition of 65% stake in Dresen Quimica S.A.P.I.de C.V., Mexico along with its 5 subsidiaries in Mexico, Peru, Guatemala, Columbia and Dominican Republic 2016 ● The acquisition has helped the company to expand its market reach in Central and South America and parts of Latin Ame
Slide 28: Current entity structure
Current entity structure Camlin Fine Sciences Ltd. 100% 100% 100% 100% 100% 100% CFS do Brasil Indústria, CFS Antioxidantes De CFS International Trading CFCL Mauritius Pvt. Ltd. Comércio, Importação E CFS North America LLC. Solentus North America Mexico S.A. De C.V (Shanghai) Ltd. (Mauritius‐ Holdco
Slide 29: Reputed Directors on the Board
Reputed Directors on the Board An experienced industrialist, he has been actively involved in providing Long and varied experience in the field of marketing of pharmaceutical guidance for framing business policies & overseeing the all round Dilip D. Dandekar Pramod M. Sapre products progress of
Slide 30: Product value chain
Product value chain Value chain of key products Phenol Hydroquinone Catechol Ascorbic Acid Other Other Ascorbyl TBHQ BHA MEHQ derivatives of Veratrole Guethol Guaiacol derivatives of Palmitate HQQ Catechol Catec o Blends Ethyl Vanillin Vanillin 28
Slide 31: Profit & Loss Snapshot (consolidated)
Profit & Loss Snapshot (consolidated) Particulars (INRmn) FY12A FY13A FY14A FY15A FY16A Net Revenue from operations 3,352 3,736 5,087 5,583 4,893 Sales growth % ‐ 11.5% 36.1% 9.8% (12.3%) Less: Expenses Cost of Materials Consumed 1,675 1,646 2,757 2,705 2,031 Employee Benefit Expenses 243 302 344 40
Slide 32: Balance Sheet (consolidated)
Balance Sheet (consolidated) Particulars (INRmn) FY12A FY13A FY14A FY15A FY16A Net Worth 529 654 933 1,349 1,762 Debt Long Term Debt 330 377 285 281 214 Short Term Debt 885 795 1,040 1,210 1,457 Other Long Term Liabilities 33 31 (40) 52 51 Current liabilities Accounts Payable 872 1,575 1,000 1,066 9
Slide 33: Glossary of terms
Glossary of terms Terms used Inference HQ Hydroquinone TBHQ Tertiary Butyl Hydroquinone BHA Butylated Hydroxyanisole ODEB Ortho Diethoxy Benzene MEHQ Hydroquinone Mono Methyl Ether ASP Ascorbyl Palmitate ONCB Ortho Nitro Chloro Benzene BHT Butylated Hydroxy Toluene PC Performance Chemicals US$ US Do
Slide 34: Thank you
Thank you 32