Slide 1: PI Industries Ltd. Investor Presentation March, 2016
PI Industries Ltd. Investor Presentation March, 2016
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements,” including those relating to general business plans and strategy of PI Industries Limited (“PIIL"), its future outlook and growth prospects, and future
Slide 3: Table of Contents
Table of Contents 1. Introduction to PI Industries 2. Key Strengths of the Company 3. Business Strategy 4. Financial Overview 5. Annexure: Industry 6. Annexure: Custom Synthesis Manufacturing Processes 3
Slide 4: Introduction To PI Industries
Introduction To PI Industries 4
Slide 5: PI Industries: Overview
PI Industries: Overview Overview • Incorporated in 1947, PI Industries Limited is an Agri Input and Custom Synthesis & Manufacturing company in India • Multi‐locational manufacturing facilities, including Jambusar SEZ • Equipped with R&D facilities, accredited for GLP and ‘Norms on OECD Principles’
Slide 6: Key Milestones
Key Milestones Commenced Accredited by commercial OHSAS 18001 and Accredited with production at ISO 17025 GLP newly Established PI Life Inauguration of PI- commissioned unit Diversified in Commenced Sciences Research Sony Research at Jambusar SEZ Energy Metering commercial Ltd. Center
Slide 7: Domestic Business: Agri-inputs
Domestic Business: Agri-inputs AGRI INPUTS – AGRO CHEMICALS, SPECIALTY FERTILIZERS & Activities under Agri input PLANT NUTRIENTS • In‐licensing of newly launched or patented molecules • Developed brand recognition and a pan‐India from multinational innovators to register, formulate and distribution
Slide 8: Exports Business: Custom Synthesis
Exports Business: Custom Synthesis CUSTOM SYNTHESIS AND CONTRACT MANUFACTURING: Scope of Services FINE CHEMICALS • Contract research, process development, analytical • Provides contract research and contract method development manufacturing services • Wide end use segments across global agrochemical
Slide 9: Solid Infrastructure Setup
Solid Infrastructure Setup • Multi‐locational manufacturing facilities – 5 Multi‐product plants and 2 Formulation units in Panoli spread over 79,000 sq. mtr. – 3 Multi‐product plants in Jambhusar with ample scope for expansion 88,000 sq. mtr. • Manufacturing facilities are ISO 9001, ISO 14001, OHSAS
Slide 10: Key Strengths
Key Strengths 10
Slide 11: Key Strengths
Key Strengths Long-term Relationship & reputation of trust and reliability with global innovators Brand building Experienced capabilities and brand management team recognition Differentiated business model Wide distribution Entry / exit network and clear barriers in our distribution policies busines
Slide 12: Key Strengths (1/7) Differentiated business model
Key Strengths (1/7) 1 Differentiated business model 3/2/2016 Project name 12
Slide 13: Key Strengths (2-3/7)
Key Strengths (2-3/7) 2 Long-term Relationship and reputation of trust and reliability with global innovators 3 Brand building capabilities and brand recognition • Bayer Group of Companies awarded Certificate of Excellence to PI Industries As “Winner – Global Sourcing India 2013 • PI Industries rece
Slide 14: Key Strengths (4/7) Wide distribution network and clear distribution policies
Key Strengths (4/7) 4 Wide distribution network and clear distribution policies Distribution Network • 29 branches • 10,000+ distributors / dealer • Centralized SAP based ERP system which gives us efficient last-mile connectivity Clear Distribution Policies that minimize dispute • Provide delivery o
Slide 15: Key Strengths (5/7) End-to-end Capabilities in custom synthesis
Key Strengths (5/7) 5 End-to-end Capabilities in custom synthesis 3/2/2016 Project Custom Synthesis is a key growth driver: Gives visibility for name top line growth & assures long term sustainability for margins 15
Slide 16: Key Strengths (6/7) Entry / Exit barriers in our business
Key Strengths (6/7) 6 Entry / Exit barriers in our business Entry barriers for Domestic Agri input activity Exit barriers for Export Custom synthesis activity • Early and close working relationship with • Registration process in India requires global innovators which allow us to generate substantial
Slide 17: Key Strengths (7/7) Experienced Board & Management Team
Key Strengths (7/7) 7 Experienced Board & Management Team • Professionally managed Company with a board of directors consisting of individuals with backgrounds across various industries & disciplines like agro‐chemicals industry, pharmaceuticals industry and financial services and accounting discipl
Slide 18: Key Strengths (7/7)
Key Strengths (7/7) P K Lahiri Mr. Pravin K. Laheri (IAS Retd.) Gujarat cadre studied at St. Xavier’s College and Government Law College, Mumbai. Mr. P.K. Laheri joined Indian Railways in 1967 and Indian Administrative Services in 1969. He served in Government Independent Director of Gujarat in vari
Slide 19: Business Strategy
Business Strategy 19
Slide 20: Business Strategy
Business Strategy Focus on expanding • Expand product portfolio of agri input products, with primary focus on in‐licensing arrangements and co‐marketed products our product portfolio • Expand existing chemistries to all existing customers for export custom and service offerings synthesis segment • I
Slide 21: Financial Overview
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Slide 22: Growth Profile
Growth Profile Gross Revenues Rs. Cr 3000 2185 1837 2000 1310 Improved business mix drives 1000 834 999 27% CAGR topline growth 0 FY11 FY12 FY13 FY14 FY15 EBITDA Rs. Cr. 370 400 286 300 Focus on in-licensed products in 179 domestic business and high- 200 114 141 34% CAGR potential molecules in expor
Slide 23: Margin Profile
Margin Profile EBITDA in Rs. Cr. & Margins 25.0% 19.1% 400 20.0% 17.2% 18.0% 17.9% 15.6% 300 15.0% EBITDA margins driven by 200 10.0% enhancement to business mix and 5.0% 100 operating leverage 114 141 179 286 370 0.0% 0 FY11 FY12 FY13 FY14 FY15 EBITDA in Rs. Cr. & Margins (season-wise) 200 19.7% 20
Slide 24: Enhancing Shareholder Value
Enhancing Shareholder Value ROCE in % RONW in % Div. Payout Ratio in % 40.0 37.9 35.0 20.0 35.0 16.2 17.0 16.0 35.0 30.0 32.0 31.8 16.0 14.1 30.0 25.0 28.7 27.1 22.7 23.6 23.2 12.0 25.0 20.0 9.0 18.3 20.0 15.0 8.0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 ROBUST TREN
Slide 25: Driving Quality Operations
Driving Quality Operations Long Term Debt Equity Ratio Asset Turnover Ratio No. of WC days 0.60 90.9 0.45 2.40 95.0 85.3 0.37 2.11 2.13 2.10 85.0 0.40 2.10 1.96 75.0 68.0 0.16 1.74 65.0 56.0 0.20 0.07 1.80 52.0 0.02 55.0 0.00 1.50 45.0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13
Slide 26: Key Financial Highlights
Key Financial Highlights Q3 FY16 Growth (%) 9M FY16 Growth (%) (Rs. in Crore) (Y-o-Y) (Rs. in Crore) (Y-o-Y) Revenues 511.0 1% 1,511.9 8% EBITDA 104.8 11% 325.4 18% PAT 72.5 17% 218.1 19% Results analysis Net Revenues Revenue growth in 9M FY16 stood at 8% driven by 3% growth in domestic agri-input a
Slide 27: Outlook
Outlook • The global agro chemical industry is going through a challenging environment. The domestic markets have also seen a slowdown in last couple of seasons due to poor agro climatic conditions. However, PI’s outlook for the medium and long term remains robust due to the following factors: • Gro
Slide 28: Thank You
THANK YOU CIN: L24211RJ1946PLC000469 PI Industries Ltd. Regd. Off.: Udaisagar Road, Udaipur – 313001 (Raj), India, Tel: + 91 294 2492451, Fax: +91 2491946 Corporate Off.: 5th floor, Vipul Square,B Block, Sushant Lok,Phase - 1, Gurgaon 28 www.piindustries.com