National Fertilizers Ltd. · NSE:NFL
National Fertilizers — Non-Deal Roadshow (October 2016)
31 slides from National Fertilizers's roadshow presentation, October 2016
Slide 1: Letter to exchanges on modifications in investor presentation
CIN : L74899DLI974GO1007417 Corporate Office : A-11, Sector-24, NOIDA - 201 301 Distt. : Gautam Budh Nagar (U.P.) Phone : 0120-2412294, 2412445, 3292201-08 Fax : 0120-2412397 Website : http://www.nationalfertilizers.com Gon) wy NATIONAL FERTILIZERS LIMITED eran orate : 11, taer24, atest — 201 301 fr
Slide 2: Letter to exchanges on modifications in investor presentation
CIN : L74899DLI974GO1007417 Corporate Office : A-11, Sector-24, NOIDA - 201 301 Distt. ;: Gautam Budh Nagar (U.P.) erate orate : u11, daer-24, aityer — 201 301 fore attr Gq TR (GoyO) wy NATIONAL FERTILIZERS LIMITED awa weasel fares (ARG WAR 1 VA) NATIONAL FERTILIZERS LIMITED (A GOVERNMENT OF INDIA U
Slide 3: National Fertilizers Limited
National Fertilizers Limited
Slide 4: Disclaimer
Disclaimer This presentation has been prepared by National Fertilizers Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form par
Slide 5: Disclaimer.. contd..
Disclaimer.. contd.. The information contained in these materials has not been independently verified. None of the Company, its directors, the President of India, acting through the Ministry of Chemicals and Fertilizers or affiliates, nor any of its or their respective employees, advisers or represe
Slide 6: Industry Overview, Company Overview, Key Investment Highlights
Industry Overview Company Overview Key Investment Highlights Financial Highlights Awards and CSR Initiatives
Slide 7: Industry Overview
Industry Overview Details of production, consumption and import of urea (mn tonnes) 35 31 31 32 30 30 32 28 30 22 22 24 24 25 23 23 23 20 15 7.8 8.0 8.4 8.5 8.6 10 6.6 7.1 5 0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17P Domestic consumption is far higher than production of urea Producti
Slide 8: Largest urea player in listed space in India
Largest urea player in listed space in India 25.0% 20.0% 19.1% 15.5% 15.0% 10.4% 10.0% 9.3% 8.7% 5.5% 5.0% 4.9% 5.0% 4.0% 2.8% 0.0% IFFCO NFL RCF KRIBHCO CFCL NFCL TCL INDO GULF K.SHYAM GNFC 15.5 % share of NFL in country’s urea production (2015-16) Source: Company 6
Slide 9: Recent Urea Policies and its Impact on NFL
Recent Urea Policies and its Impact on NFL Modified New pricing Scheme of Urea stage –III (Notified on 2nd April 2014) Fixed cost element included in the concession price was based on the data for FY 2002-03 and was due for updation as it was resulting in un-recovered fixed cost to the urea units. F
Slide 10: Industry Overview, Company Overview, Key Investment Highlights
Industry Overview Company Overview Key Investment Highlights Financial Highlights Awards and CSR Initiatives
Slide 11: Overview of Plants
Overview of Plants Nangal Unit Panipat Unit Bathinda Unit Vijaipur-I & II Units 9
Slide 12: Brief on Plants and Trading Activities
Brief on Plants and Trading Activities Urea Vijaipur-II Vijaipur-I Bathinda Panipat Nangal Capacity (LMT)– 32.31 LMT 8.646 8.646 5.115 5.115 4.785 After Revamp – 35.68 LMT 10.662 9.999 5.115 5.115 4.785 Capacity utilization (2015-16) w.r.t. RAC 132.4% 114.8% 107.2% 110.9% 114.2% Comm. Production 31s
Slide 13: Evolution Timelines
Evolution Timelines Urea Cap. Year Evolution (LMT) 1974 Incorporated on 23-08-1974 to set up Fuel Oil based plants at Panipat & Bathinda - 1978 Nangal Plant merged with NFL in April 1978 on regrouping of FCIL. Capex – INR 300 cr. 3.30 1979 Panipat & Bathinda Plants started commercial production in 1
Slide 14: Overview of Business
Overview of Business Urea Production & Sales Overall Revenues (FY16) Sale value INR mn (excluding subsidy) (MTPA) 3.8 3.7 3.7 3.6 3.6 3.6 4 Products 2011-12 2012-13 2013-14 2014-15 2015-16 3.4 3.4 3.2 3.2 3 Urea 17,488.6 15,749.2 18,829.1 19,382.5 19,663.7 95.82% Industrial 1,709.1 956.3 534.1 1,054
Slide 15: Industry Overview, Company Overview, Key Investment Highlights
Industry Overview Company Overview Key Investment Highlights Financial Highlights Awards and CSR Initiatives
Slide 16: Key drivers for investment in NFL
Key drivers for investment in NFL 1 Policy benefits Attractive contribution beyond RAC Neem coated production mandatory Reduction in gas price pursuant to Gas Pooling 9 2 New initiatives undertaken Increasing demand for fertilizers Increasing sale of traded goods (DAP/MOP/ Consistently increasing de
Slide 17: Planned Capacity Additions & Energy Conservation Initiatives
Planned Capacity Additions & Energy Conservation Initiatives Urea: 1.27 MTPA, BS: 25k TPA, MoP: 8k TPA Estimated Completion Project Deliverables Period Status Capex Reduction in Energy Purge gas recovery plant at Additional Urea production (149 INR 29 Crore Completed Commissioned in July 2016 Vijaip
Slide 18: Ramagundam Fertilizers & Chemical Limited (RFCL) Project
Ramagundam Fertilizers & Chemical Limited (RFCL) Project Joint Venture (JV) Ramagundam Fertilizers & Chemical Limited (RFCL) Date of JV Agreement 14th January 2015 Equity Partners & Equity NFL – 26%, EIL – 26%, FCIL - 11% Annual Urea Production 1.271 MTPA Zero Date 25th September 2015 Project Time S
Slide 19: Performance Highlights 2015-16
Performance Highlights 2015-16 Ever highest urea production of 37.99 Lakh MT (118% capacity utilisation of RAC of 32.31 LMT) and is 2nd largest producer with 15.5% market share Urea sale of 36.41 LMT was marginally lower (0.38 LMT) as compared to CPLY* (36.79 LMT) due to poor demand owing to glut li
Slide 20: Financial Performance - Annual
Financial Performance - Annual For the Financial Year Increase / % Increase/ Particulars (INR Crs) 2015-16 2014-15 (Decrease) (Decrease) Production quantity of urea (LMT) 37.99 36.39 1.60 4.40% Sale quantity of urea (LMT) 36.41 36.79 (0.38) (1.03)% Sale of urea (Net of Excise Duty) 1,966.37 1,938.25
Slide 21: Robust marketing network across North India
Robust marketing network across North India Single Brand “Kisan” across all Fertilizer Products Presence in largest fertilizer consuming states, thereby Fertilizer Products - Brand ‘KISAN’ a household name enabling it to get better market share Nangal Jammu Panipat (Haryana) Neem Coated Urea Kisan D
Slide 22: Well maintained relationships with farmers
Well maintained relationships with farmers 1 Crop seminars & training programs organized 88 farmer training programs/ crop seminars were organized during 1 2015-16 benefitting more than 6000 farmers 5 This sensitized farmers to issues related to soil fertility status like Krishi Melas & Agriculture
Slide 23: Experienced Management Team with members from the Government and Industry
Experienced Management Team with members from the Government and Industry Board of Directors Shri Manoj Shri Smt. Bhavnaben Mishra Shri M Sagar Shri R. K. Shri Dharam Gurinderjit Kardambhai Sh. Kuntal Chairman & Mathews Chandiok Pal Singh Sandhu Dave Director Sensarma Managing Director Joint Secreta
Slide 24: Better monsoon to drive demand for fertilizers
Better monsoon to drive demand for fertilizers Above average rainfall in NFL’s key target markets State Rainfall Map Central India Actual & Normal Rainfall for the Period: 01-06-2016 to 12-10-2016 Monsoon Post Monsoon 800 80 600 60 400 40 Rainfall (mm) Rainfall (mm) 200 20 0 0 20/Aug/16 30/Aug/16 10
Slide 25: Industry Overview, Company Overview, Key Investment Highlights
Industry Overview Company Overview Key Investment Highlights Financial Highlights Awards and CSR Initiatives
Slide 26: Financial highlights
Financial highlights Historical Revenues (net of subsidy) Historical EBITDA 25,000 23,323 7,000 9.0% 20,586 5,914 19,425 19,691 6,000 8.0% 20,000 17,006 7.0% 5,000 4,186 7.6% 6.0% 15,000 4,000 3,420 5.0% 10,000 3,000 4.9% 4.0% 4.7% 1,719 3.0% 2,000 5,000 175 2.0% 1,000 0.3% 2.1% 1.0% 0 0 0.0% FY2012
Slide 27: Financial highlights
Financial highlights Networth Debt Profile 18,000 17,544 100,000 17,500 17,000 80,000 75,583 76,448 16,500 15,837 16,066 61,196 16,000 56,149 60,000 15,500 14,940 40,397 50,023 14,810 17,033 15,000 40,000 29, 846 42,922 14,500 14,000 20,000 13,838 39,116 35,186 26,425 13,500 16,008 18,274 13,000 0 F
Slide 28: Industry Overview, Company Overview, Key Investment Highlights
Industry Overview Company Overview Key Investment Highlights Financial Highlights Awards and CSR Initiatives
Slide 29: Awards & Accolades received
Awards & Accolades received Nangal Unit Vijaipur Unit Skoch Renaissance Award-2014” for FAI Best Technical Innovation Runner Up Ammonia Feedstock Changeover Project Award-2014 (AFCP) as the best project in the country “Green tech Environment Award 2014” from Green tech Foundation Group (Kolkata) Pan
Slide 30: Corporate Social Responsibility Initiatives undertaken by NFL
Corporate Social Responsibility Initiatives undertaken by NFL CSR Focus Skill development & Construction activities for Assistance to the disabled Children’s health training schools Rural development Afforestation Soil Testing Women empowerment projects Assessment camp for disabled persons organised
Slide 31: Thank You
THANK YOU
National Fertilizers — Non-Deal Roadshow (October 2016) on 6ix