Fine Organic Industries Ltd. · NSE:FINEORG
Fine Organic Industries — Investor Presentation (August 2021)
41 slides from Fine Organic Industries's investor presentation, Aug 16, 2021
Slide 1: Regulation 30 disclosure letter to stock exchanges
Date: August 16, 2021 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Plot No. C/1, "6" Block, Exchange Plaza Dalal Street, Bandra Kurla Complex, Bandra (East) Mumbai - 400 001 Mumbai - 400 051 Security Code: 541557 Symbol: FINEORG Subject: Disclosure of informa
Slide 2: Investor Presentation August 2021
Investor Presentation August - 2021
Slide 3: Celebrating 50 Years: The Fine Organics Logo
THE CELEBRATING LEAFMARK _ z=. _ rd 50 YEARS The leafmark symbolises 5 47 . fn of innovation THE FINE ORGANICS TYPEFACE FINE ORGANICS Th dable and i typeface represents our focus FINE ORGANICS on technology and the customer Gis rine ORGANICS 2008 | THE Pd FINE ORGANICS LOGO Vaal 2021 The Logo serves
Slide 4: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fine Organic Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 5: Fine Organics Success
Z FINE ORGANICS SSHOONS HO AXOLS ANIA HHL
Slide 6: Expertise in Oleo-chemistry
Expertise in Oleo-chemistry An established and reputed A Technical Pinch of salt in the end international player of oleochemical- product making a HUGE difference in based additives, rooted in India the product performance We create Specialty additives for diverse applications We are omnipresent and
Slide 7: Why FINE additives are preferred?
Why FINE additives are preferred? ✓ FINE green additives have been effectively Demand for oleochemical derived additives is increasing replacing potentially hazardous chemicals in wide range of industries such as plastics, packaging, foods, cosmetics, rubbers, coatings etc. without compromising on t
Slide 8: Legacy in Green Additives
Legacy in Green Additives Wide Product Range Diverse Customer Base Global Distribution In-house Capability Global Presence Network Direct Customers Distributors Products Over 100,000 TPA 70+ 450+ 800+ 180+ In-house capability for Product Largest producer of oleochemical- development, Process technol
Slide 9: Investor Presentation November-2019
High-Performance Environment Friendly Additives Investor Presentation November-2019
Slide 10: 50 years of Journey
50 years of Journey 1970 1988 2002 1973 2001 2005 Established as ‘Fine Commissioned first Set up second facility in Commissioned facility at Incorporated the Established R&D Centre in Organic Industries’, a food additives facility in Ambernath Badlapur (Aug 2001) company under the name Navi Mumbai p
Slide 11: A Fine Family
A Fine Family 700+ >15% >8% >15% Employee Women Employees Comprise 1st & strength employees completed 25 2nd generation of . years of journey employees with us Integrity is both a value as well as a character that is embedded Creating and encouraging home-grown leadership with the in every Fine Orga
Slide 12: Strength formulae for Success of FINE ORGANICS
Strength formulae for Success of FINE ORGANICS Innovative Technology Relentless Products and Development Focus Solution 01 02 03 04 05 06 Strong R&D & Diversified Specialized Diversified Highly Dominant Innovation led Product Business Customer Experienced Position Business Portfolio Model Base Manag
Slide 13: 1. Strong R&D: Innovative Approach
1. Strong R&D : Innovative Approach Strong In-House Design and New Product R&D Capabilities Engineering Developments Specialty Additives for: ▪ Value Creation; Effective and Efficient ▪ In-house capabilities for plant designing and technical support to customers engineering ▪ Feed nutrition ▪ Coatin
Slide 14: With Industry Standards and Regulatory Credentials
With Industry Standards and Regulatory Credentials ✓ Setting new benchmarks in quality and consistency ✓ High safety and productivity standards ✓ Products are appreciated by customers worldwide for their consistent quality and packaging standards Fine’s facilities are fully geared towards meeting gr
Slide 15: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users The diversity of oleo chemistry has Pioneer in manufacturing & enabled us to develop a wide range marketing of emulsifiers in India. of additives for PVC, Polyolefins, Styrenics, Polyamides & other Expanded its range to anti-fungal engineering po
Slide 16: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Food Additives Polymer Additives Additives for Coatings Additives for maintaining the quality Used for various functionalities in wide Used as anti-settling agents, and freshness of the food products, range of plastic products made from emulsifie
Slide 17: 3. Specialised Business Model: Entry Barriers
3. Specialised Business Model : Entry Barriers Limited Players Limited & small players in Indian specialty additives market. Globally Few players which are very large Fine Organics : Largest organised player in the Indian market & is making its presence across the globe Lengthy & expensive product a
Slide 18: 4. Diversified Customer Base
4. Diversified Customer Base Warehouses in USA & Europe Products 450+ End Users 5,000+ Countries 70+ Direct Customers 800+ Distributors 180+ 17 Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness All the
Slide 19: 5. Highly Experienced Management Team
5. Highly Experienced Management Team Prakash Kamat – Executive Director and Chairman Prakash Apte – Independent Director ▪ Holds a M.Sc. Tech- Master of Science & Tech (Oils) from Institute of ▪ On the Board since Nov 2017. Holds a Bachelor’s degree in Chemical Technology (formerly UDCT) Mechanical
Slide 20: 6. Dominant Position
6. Dominant Position Pioneers and the largest manufacturers of oleochemical-based additives in India and a strong player globally Fully automated production facility multiple production sites One of the few global players in the specialty food emulsifiers One of the few global players in the polymer
Slide 21: COVID-19 Business Update
COVID-19 Business Update • Fine’s Safe Chemistry & Philosophy supporting fight against COVID-19 Dividend continued Financial assistance extended to employees Financial Support provided to Local community No Job losses & No Salary Reductions 20
Slide 22: Industry Potential: Multiple Growth Levers
INDUSTRY POTENTIAL: Investor Presentation 1. Food Additives 2. Polymer Additives MULTIPLE GROWTH LEVERS November-2019 3. Other Specialty Additives
Slide 23: 1. Food Additives
1. Food Additives Global Food Emulsifiers Market Size* Indian Food Emulsifiers Market Size* In US $ Mn 2495.1 In US $ Million 144.8 1921.2 CAGR 5.4% 101.5 CAGR 7.36% 2018E 2023E 2018E 2023E Region-wise Growth Consumer Food Industry (From 2018 – 2023E) (From 2018 – 2023E) In US $ Mn In US $ Million 6
Slide 24: 2. Polymer Additives
2. Polymer Additives Global Market Size* Indian Market Size* In US $ Mn 30,875 CAGR 4.6% In US $ Mn 1,644 CAGR 6.7% 24,587 1,191 2021E 2026F Global End-user Segment Growth Region-wise Growth 2021E 2026F (From 2021E – 2026F) (From 2021E – 2026F) In US $ Mn In US $ Mn 5.2% 5.1% 4.7% 4.6% 4.7% Asia Pac
Slide 25: 3. Other Specialty Additives: Key Drivers
3. Other Specialty Additives : Key Drivers Cosmetics & Additives Industry Specialties Feed Nutrition Rubber Pharmaceuticals for Coatings ▪ Dispersing agents ▪ Processing Aids ▪ Natural Antibiotics ▪ Emulsifiers & Emollients Key Additives & ▪ Emulsifiers ▪ Specialty Plasticizers ▪ Lube additives ▪ Nu
Slide 26: Financial Highlights
Financial Highlights
Slide 27: Volatility in RM Prices over last 15 Months
Volatility in RM Prices over last 15 Months Price in Rs / 10 KG 2200 2000 1800 1600 1400 1200 1000 800 600 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 SOYA REFINED OIL RAPESEED EXP OIL PALMOLIEN COTTON REFINED OIL RICEBRAN RE
Slide 28: Continuous increase in Freight cost
Continuous increase in Freight cost ✓ There has been an ever-increasing rise in freight rates and this curve is on upward trend. The situation has not changed and since past few months, the increase has been substantial ✓ Shortage of containers due to more demand and less supply ✓ Countries-imposed
Slide 29: Standalone Performance Highlights (YoY)
Standalone Performance Highlights (YoY) Rs in Crores Revenues EBITDA PAT +53% -4% +21% 360 52 35 50 29 236 Q1FY21 Q1FY22 Q1FY21 Q1FY22 Q1FY21 Q1FY22 28
Slide 30: Standalone Performance Highlights (QoQ)
Standalone Performance Highlights (QoQ) Rs in Crores Revenues EBITDA PAT +12% +9% +21% 360 50 35 322 46 29 Q4FY21 Q1FY22 Q4FY21 Q1FY22 Q4FY21 Q1FY22 29
Slide 31: Q1FY22 Standalone Operating Performance
Q1FY22 Standalone Operating Performance Rs in Crores Revenues EBITDA & Margins 18.6% 22.5% 18.9% 19.3% 21.3% 23.0% 17.1% 13.8% +11% 1,121 1,044 1,026 856 +9% 777 55% 222 236 651 55% 55% 192 608 58% 147 164 62% 146 Exports 59% 54% 360 113 45% 45% 45% 63% 50 Domestic 41% 46% 38% 42% 37% FY15 FY16 FY17
Slide 32: Use of Capital (Standalone)
Use of Capital (Standalone) Net Debt to Equity Fixed Asset Turnover 0.48x 9.44x 7.77x Strengthening 6.56x 0.25x Liquidity position 4.92x 5.22x 4.90x 0.11x during this 0.08x 0.05x crisis scenario 4.13x 3.10x 2.79x 3.10x 3.26x 3.71x 2.26x -0.13x 2.34x -0.24x FY 15 FY 16 FY 17 FY 18 FY19 FY20* FY21* FY
Slide 33: Standalone Return Profile
Standalone Return Profile Return on Capital Employed Return on Net Worth 32.64% 32.77% 30.31% 31.15% 32.17% 28.86% 26.66% 26.31% 24.81% 25.37% 26.40% 23.88% 17.55% 15.56% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Return on Capital Employed = EBIT (excluding Other Income)
Slide 34: Q1FY22 Standalone Profit & Loss Statement
Q1FY22 Standalone Profit & Loss Statement Particulars (Rs in Crs) Q1FY22 Q1FY21 YoY Q4FY21 QoQ FY21 Revenue from Operations 359.9 235.6 53% 321.7 12% 1,121.3 Cost of Raw Material Consumed 248.0 144.0 217.6 726.2 Gross Profit 111.9 91.6 22% 104.1 7% 395.1 Gross Profit Margin 31.1% 38.9% 32.4% 35.2% E
Slide 35: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs in Crs) Mar-21 Mar-20 Equity & Liabilities (Rs in Crs) Mar-21 Mar-20 Non-current assets Equity Property, plant and equipment 195.3 215.9 Equity share capital 15.3 15.3 Capital work-in-progress 26.3 5.8 Other equity 723.5 615.4 Intangible assets 0.5 0.9 Financial a
Slide 36: Q1FY22 Consolidated Operating Performance
Q1FY22 Consolidated Operating Performance Rs in Crores Revenues EBITDA & Margins* 18.3% 22.6% 18.6% 18.6% 21.7% 22.7% 17.5% 14.4% +11% 1,133 1,060 1,038 856 +10% 778 230 235 652 198 607 158 145 145 358 111 52 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 PAT & M
Slide 37: Use of Capital (Consolidated)
Use of Capital (Consolidated) Net Debt to Equity Fixed Asset Turnover 0.48x 9.58 x 7.74 x 0.24x Net Cash 6.57x Position 4.91x 5.23x 4.95x 0.10x 0.07x 0.04x 4.18x 3.27 x 3.77 x 3.09x 2.79x 3.11x 2.29x 2.37x -0.14x -0.23x FY 15 FY 16 FY 17 FY 18 FY 19 FY20* FY21* FY15 FY16 FY17 FY18 FY19 FY20 FY21 Fix
Slide 38: Consolidated Return Profile
Consolidated Return Profile Return on Capital Employed Return on Net Worth 32.75% 32.88% 33.85% 30.46% 30.80% 27.24% 26.63% 28.51% 25.67% 27.00% 23.72% 24.10% 18.42% 16.45% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Return on Capital Employed = EBIT (excluding Other Income
Slide 39: Q1FY22 Consolidated Profit & Loss Statement
Q1FY22 Consolidated Profit & Loss Statement Particulars (Rs in Crs) Q1FY22 Q1FY21 YoY Q4FY21 QoQ FY21 Revenue from Operations 357.6 240.0 49% 322.9 11% 1,133.2 Cost of Raw Material Consumed 242.2 146.4 215.0 726.0 Gross Profit 115.4 93.6 23% 107.9 7% 407.2 Gross Profit Margin 32.3% 39.0% 33.4% 35.9%
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs in Crs) Mar-21 Mar-20 Equity & Liabilities (Rs in Crs) Mar-21 Mar-20 Non-current assets Equity Property, plant and equipment 195.3 215.9 Equity share capital 15.3 15.3 Capital work-in-progress 26.3 5.8 Other equity 716.1 603.6 Intangible assets 0.5 0.9 Non-Contr
Slide 41: Thank you
For further information, please contact: Thank you Company : Investor Relations Advisors : CIN: L24119MH2002PLC136003 CIN: U74140MH2010PTC204285 Ms. Sonali Bhadani Mr. Rahul Agarwal / Mr. Mandar Chavan Vice President - Finance +91 9821438864 / +91 9699382195 Email: rahul.agarwal@sgapl.net / mandar.c
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