Coromandel International Limited · NSE:COROMANDEL
Coromandel International — Q4 FY21 Earnings Presentation
58 slides from Coromandel International's earnings presentation, April 2021
Slide 1: Investor Presentation Apr 2021 – Q4 FY21 Results
Investor Presentation Apr 2021 – Q4 FY21 Results
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 Coromandel International Ltd, its future outlook and growth prospects, and future de
Slide 3: Agenda
Agri industry: The opportunity ahead Coromandel: Strong track record, future positive Business-wise highlights: Unique strengths to win in the market The Coromandel investment case: Summary Coromandel: FY21 Results Update 2
Slide 4: Agri industry: The opportunity ahead
Agri industry: The opportunity ahead Coromandel: Strong track record, future positive Business-wise highlights: Unique strengths to win in the market The Coromandel investment case: Summary Coromandel: FY21 Result Update 3
Slide 5: Global: Increasing population and wealth to drive up global food consumption
Global: Increasing population and wealth to drive up global food consumption Strong increase in food demand expected Increasing Food consumption Transition countries Near East/North Africa Sub Saharan Africa East Asia population (M tons) Latin America & Carribean Industrial countries South Asia 6,00
Slide 6: Global agri trend: Rising consumption & resource exhaustion
Global agri trend: Rising consumption & resource exhaustion Strong increase in food demand expected…. Combined with non-ceasing water and land scarcity seen leading to Natural Resource pressure triangle Transition countries Industrial countries East Asia Latin America & Carribean Sub Saharan Africa
Slide 7: India: A decade of accelerated growth
India: A decade of accelerated growth … GDP US$B 40y 20y 20y 2011 2030 10,000 ~+$450B +$2,200B +$6,000B 8,000 6,000 $8-9T 4,000 2,000 $2.7T $500B $36B 1960 2000 2020 2030 Year Ranking basis GDP, India expected to be 3rd largest economy nominal, US$ B Note: Forecasts by International Monetary Fund, O
Slide 8: India: Unparalleled value creation in Agri sector over the next 10 years
India: … with unparalleled value creation in Agri sector over the next 10 years in India Gross value added by Agri sector (cumulative) ₹230 trillion ₹171 2019-29 trillion ₹120 trillion 2008-18 2X 1997-07 India Agri: ~$1.7 trillion to ~$3.3 trillion in 30 years 7 1. USD / INR rate conversion assumed
Slide 9: India: The opportunity and imperative for value creation in Agri sector
India: The opportunity and imperative for value creation in Agri sector over the next 10 years are large… Falling per capita land holding Imbalanced Nutrient Usage 2.5 14 Avg. landholding size (ha) N:P:K Consumption Ratio 12 2 10 1.5 8 1 6 0.5 ideal ratio → 4: 2: 1 4 FY11 → 4.7: 2.3: 1 0 2 1970-71 1
Slide 10: 8 global agri trends: Impact on India
8 global agri trends : Impact on India Rising pressure on Changing Evolution of Farm natural resources dietary preferences farm holdings labor shortages Done Pressure on natural resources Dietary patterns are evolving as Declining avg. farm holding Decreasing labour is driving greater push demand fo
Slide 11: Trends opening up significant opportunities for Agri cos
Trends opening up significant opportunities for Agri cos Themes Implications Rising pressure on Continued • Focus on balanced plant nutrition and improved natural resources importance to Ag input penetration Political economy • Focus on specialized nutrients and ag inputs for F&V, pulses in line wit
Slide 12: Government policy focus positive for value creation in Agri sector
Government policy focus positive for value creation in Agri sector • Doubling of farmer income: Productivity, Price Realization – Productivity: Soil Health Cards, customized fertilizer – Realization: Direct Income Support - Centre & State initiatives, Agri Insurance, Electronic Agriculture Markets,
Slide 13: COVID 19: Agriculture reforms
COVID 19: Agriculture reforms – Sets a good base for long term while taking care of short term • Essential Industry: Declared Agri Input industry as essential industry • Supply chain: Agri supply chain including production given preference • PM Kisan: Front loading first payment of Rs. 2000 (8.1 Cr
Slide 14: Coromandel: Strong track record, future positive
Agri industry: The opportunity ahead Coromandel: Strong track record, future positive Business-wise highlights: Unique strengths to win in the market The Coromandel investment case: Summary Coromandel: FY21 Result Update 13
Slide 15: Murugappa Group: Coromandel flagship company of the group
Murugappa Group: Coromandel flagship company of the group Workforce Businesses Revenue Market Cap Locations 29; 50,000+ 10 listed 381 Bn INR 1323* Bn INR 90 entities Coromandel Agriculture EID Parry CUMI Engineering Tubes Investment Chola Finance Financial Services Chola MS 14 120 years of trust *As
Slide 16: Coromandel: Strong Governance Structure
Coromandel: Strong Governance Structure Eminent Board Professional Management Engaged employees 15
Slide 17: Coromandel: a strong, responsible company
Coromandel: a strong, responsible company Key Facts : • Turnover: Rs. 142 billion (FY20-21) • Market Cap: Rs. 216 billion (Apr 2021) • Strong credit rating: ‘AA +’ (Stable outlook)’ with CRISIL India • Zero long term debt • ~4500 employees & ~7500 contract staff COST EFFECTIVE BRINGING PROSPERITY ST
Slide 18: Coromandel: India footprint
Coromandel: India footprint India’s largest private sector Phosphatic 16 manufacturing locations Fertilizer company Jammu Pioneers & market leaders ~750 Retail centres in Specialty Nutrients India’s largest Single Super Phosphate (SSP) Raebareli ~20,000+ dealers company Kota 5th largest Crop Udaipur
Slide 19: Coromandel: Global footprint & collaborations
Coromandel: Global footprint & collaborations Strategic Investment TIFERT—Phos acid • Highly diversified venture in Tunisia sourcing Marketing partnerships – Bio Technology • Significant market US, Canada, Europe partnership & Regional Office, presence in China International markets Rock Phosphate M
Slide 20: Coromandel: A 'Farmer First' winning business model
Coromandel: A 'Farmer First' winning business model Farmer First Seeds Portfolio Farm implements Specialty Crop Aqua/Vet Feed Fertilizer Organic Biologicals Nutrients Protection Traded Products Rural Retail Ag Tech Farm Services Testing services (Soil, Water, Tissue) Advisory Financing & Insurance 1
Slide 21: Converting farmer insights into farmer prosperity
Coromandel: Converting farmer insights into farmer prosperity Direct connect with farmers • Deep insight on farmer preferences, cropping patterns, pest incidence, area Marketing & Activation under cultivation, hyperlocal trends • Educating, disseminating best-in-class package of practices, driving c
Slide 22: Business-wise highlights: Unique strengths to win in the market
Agri industry: The opportunity ahead Coromandel: Strong track record, future positive Business-wise highlights: Unique strengths to win in the market The Coromandel investment case: Summary Coromandel:FY21 Result Update 21
Slide 23: Fertilizer: Opportunity to address nutrient imbalance
Fertilizer: Opportunity to address nutrient imbalance Widespread Soil Deficiency Nitrogen Phosphorus Potassium Nitrogen Zinc xxx Nitrogen Iron xxx Potassium Huge opportunity xxx xxx Copper Over 50% Over 50% Sulphur exists for Fertilizer 20% to 50% 20% to 50% Less than 20% Less than 20% Punjab Punjab
Slide 24: Fertilizer: Positive Policy Measures
Fertilizer: Positive Policy Measures Soil Health Cards … Direct Benefit Transfer (DBT) JAM Trinity for Direct Transfers Boosting investments • Scheme started in 2015 by • In 2018, DBT implemented • Rural India high on “JAM” • Self sufficiency in Urea— Government of India pan India coverage—Jan Dhan
Slide 25: Coromandel Fertilizer: Highlights
Coromandel Fertilizer: Highlights Differentiated Product Offering Efficient Manufacturing Winning in Markets 39% 4.5 15.3% unique MT Market share capacity share (NPK+SSP) 3.5 86% 100% 16.3% 39% 81% 83% 15.8% 15.7% 15.3% 40 45% 82%* 14.7% 3.0 20 37% 37% 36% 40% 68% 80% 2.5 00 32% 35% 2.0 60% 80 30% 1
Slide 26: Crop Protection: Market opportunity large
Crop Protection: Market opportunity large India … massive potential exists Exports slated to grow at 9% CAGR India – Consumption lowest in world Bn USD Pesticide consumption 3.2 (kg/hectare) 20 17.0 2.0 India is well positioned to 13.0 12.0 10 7.0 7.0 1.1 tap the huge multi-year 0.6 exports opportun
Slide 27: Coromandel Crop Protection: Highlights
Coromandel Crop Protection: Highlights Key Strengths Product Offering Large 10,000 • 1000+ product registrations globally resulting in geographically diversified Crop protection dealers sales company in India • Focus on new products/combinations development - Rich product pipeline Presence across •
Slide 28: Coromandel Biologicals: Highlights
Coromandel Biologicals: Highlights Key Strengths New Product development • Rich product pipeline • Strong R&D capabilities: Research on Azadirachtin from plant extracts, microbial bio pesticides • Tie-ups with Indian and International CROs No.1 65% Azadirachtin Export share Manufacturing • Manufactu
Slide 29: Coromandel Crop Protection: Global footprint
Coromandel Crop Protection: Global footprint Beyond India … Creating a true global champion Europe APAC 3% 13% 8 subsidiaries at • Mexico • Brazil • Argentina US & Canada 2% • Netherlands Central 5% • Nigeria America • Philippines • Australia South 13% • Mali America China office 12% 51% Africa Indi
Slide 30: Specialty Nutrients: Market opportunity large
Specialty Nutrients: Market opportunity large – micro irrigation, secondary & micro nutrients Potential for Specialty Nutrients business to capture market as micro-irrigation coverage expands Current Micro Irrigation coverage in India at 6% (US: 55%, Brazil: 52%, China: 10%) Potential: 69 mil Ha Cur
Slide 31: Coromandel Specialty Nutrients: Highlights
Coromandel Specialty Nutrients: Highlights Key Strengths Market Activation Product Offering • Focus on Crop specific nutrient & liquid leaders Tie-ups with Drip Irrigation, contract fertilizer solutions targeting Cereals, pulses, cotton and horticulture crops In WSF & Sulphur farming, Agri • Exclusi
Slide 32: Coromandel Retail: Comprehensive Agri Solutions
Coromandel Retail: Comprehensive Agri Solutions Key Strengths ~750 ONE Key achievements • India's largest agri retail chain Retail Centers Stop Shop for • Strong brand equity providing customer Agriculture value proposition of Quality, Trust & Significant needs farm Advice presence in AP, TG, KN; fo
Slide 33: Coromandel Organic: Highlights
Coromandel Organic: Highlights Key Strengths Product Offering No.1 • Product portfolio: – Soil health (City compost) Organic fertilizer – Soil nutrition (Kash, PROM, CMS, Nrich) – Soil amendment (gypsum) marketer in India Growth drivers for future Sales & Marketing / Activation • Regulatory push • L
Slide 34: Coromandel AgTech: Successful forays
Coromandel AgTech: Successful forays Coromandel has successfully forayed into Agtech by carrying out pilot trials using Drones Real time crop diagnostics quickly highlighting stressed regions needing intervention made possible Crop advisory provided to farmers based crop diagnostics results Timely i
Slide 35: Leveraging Technology for Farmer Prosperity
Coromandel: Leveraging Technology for Farmer Prosperity ~50,000 soil tests carried out annually Farm advisory through Scientists’ Gromor Nutrient Manager based panel nutrients recommendations Hiring Farm machinery through Custom Developing superior delivery E kiosks for improving reach & product Hir
Slide 36: Focus on Sustainable development
Coromandel: Focus on Sustainable development Bird’s Paradise • Bird’s Paradise was established at Kakinada plant is home to 100+ species • Recognized by UNDP ‘Turning a Factory into a Bird Sanctuary’ • Extensive coverage by Discovery Green Belt ▪ Converting Phospho gypsum heaps into green belt ▪ 1st
Slide 37: Coromandel CSR: Doing it responsibly
Coromandel CSR: Doing it responsibly Healthcare Initiatives Girl Child Education Scheme Community Development • Coro Medical Centres have • Girl Child Education Scheme has • Community development touched 80K+ beneficiaries touched 16K+ children and initiatives focussed on creating annually counting
Slide 38: The Coromandel investment case: Summary
Agri industry: The opportunity ahead Coromandel: Strong track record, future positive Business-wise highlights: Unique strengths to win in the market The Coromandel investment case: Summary Coromandel: FY21 Result Update 37
Slide 39: Track record of sustained financial performance
Coromandel: Track record of sustained financial performance EBITDA Profit after Taxes Revenue* From Operations (₹ Crores) (₹ Crores) (₹ Crores) 1,312 2,003 1,059 14,163 1,727 13,204 13,117 1,450 10,943 1,305 685 714 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 *Fertilizer revenue subj
Slide 40: Holistic farm solutions provider with unique business model
Coromandel – Holistic farm solutions provider… …with unique business model driving farm prosperity Farmer First Seeds Portfolio Farm implements Specialty Crop Aqua/Vet Feed Fertilizer Organic Biologicals Nutrients Protection Traded Products Rural Retail Ag Tech Farm Services Testing services (Soil,
Slide 41: Eight key elements of our Strategy
Accelerate the innovation agenda 1 Strengthen Build power 8 2 capabilities brands Eight key elements of our Strategy to Partnering with Government on 7 3 Reinforce consumer capture the India Agri reforms strongholds Ag opportunity & deliver consistent value… Build stronger processes with focus 6 4 L
Slide 42: Coromandel Value Proposition
Coromandel Value Proposition Unparalleled value creation Coromandel has a strong opportunity in India track record of delivering agriculture space consistent value • India agriculture opportunity • Top quartile TSR performer over large; GV to reach INR 230 the last 3 years (in the S&P BSE trillion b
Slide 43: Coromandel: FY21 Results Update
Agri industry: The opportunity ahead Coromandel: Strong track record, future positive Business-wise highlights: Unique strengths to win in the market The Coromandel investment case: Summary Coromandel: FY21 Results Update 42
Slide 44: India – Agri Trends
India – Agri Trends Record Production: Last 2 Years - 303 Mil MT (+2 % over record production LY) • Crop diversification: - Fruits and Vegetables GVA growth (%) 10% - Surpassing food grain production (320 v/s 296 mil ton – FY20) 8% - Import substitution: Oilseeds and Pulses 6% - Oilseeds 37 Mn MT (+
Slide 45: India – Agri Reforms
India – Agri Reforms 8.0 • Higher Rural spending : 11% CAGR Rural Spending (Rs Lakh Crs.) - MNREGA, Social Assistance Programs 6.1 • Agricultural credit target increase: Rs 16.5 lakh Cr (+10%) 4.4 3.7 - Credit Disbursement & Gross Cropped Area - Positively Related 3.5 3.5 2.4 2.6 • Food processing i
Slide 46: Phosphatic Industry FY2021
Phosphatic Industry FY2021 DAP Vol lmt NPK Vol lmt 103 105 114 101 97 93 54 58 46 38 17 9 Production Imports Sales Production Imports Sales LY CY LY CY Production growth: -17% Production growth: 8% Imports growth: 7% Imports growth: 102% Primary Sales growth: 2% Primay Sales growth: 17% Phosphatic T
Slide 47: Performance Highlights: Q4 and FY2021
Performance Highlights: Q4 and FY2021 Sales EBITDA PBT EPS EBITDA% ROCE DE Ratio Q4 ₹ 2841 Cr ₹ 258 Cr ₹ 211 Cr ₹5.33 9% 32% 0.00 FY 20-21 Growth 0% -34% -32% -5% % -36% Q4 FY 19-20 ₹ 2,854 Cr ₹ 388 Cr ₹ 310 Cr ₹7.89 14% 25% 0.37 ₹ 14163 Cr ₹ 2,003 Cr ₹ 1,766 Cr ₹44.8 14% 32% 0.00 FY2021 Growth % -3
Slide 48: CIL: Nutrients – Q4
CIL: Nutrients – Q4 Sales (Rs.Crs.) Volume Summary Vol LMT Segment FY1920 FY2021 Growth 7% NPK +DAP (Mfd) 6.77 5.12 -24% 2436 2372 NPK +DAP 0.14 0.74 100% + (Imp) NP/NPKs Total 6.91 5.86 -15% Q4 LY Q4 CY Primary Market 16.2% 15.3% PBIT*(Rs.Crs.) Share (NP/NPKs) PoS Market 18.7% 20.1% Share (NP/NPKs)
Slide 49: CIL: Nutrients – FY2021
CIL: Nutrients – FY2021 Sales (Rs.Crs.) Volume Summary Vol LMT Segment FY1920 FY2021 Growth 6% NPK +DAP (Mfd) 30.69 29.41 -4% 11550 12207 NPK +DAP 0.75 4.09 100% + (Imp) FY 1920 FY 2021 NP/NPKs Total 31.44 33.50 7% PBIT(Rs.Crs.) Primary Market 15.7% 15.3% Share (NP/NPKs) 12% PoS Market 15.8% 15.7% S
Slide 50: CIL: Subsidy
CIL: Subsidy Subsidy Recievable (Rs .Crs.) • YTD: Receipts of Rs. 5,041 Crs. (Rs. 3,424 Crs. LY) - Disbursement of Additional Rs. 65,000 Crs. in Q4 2316 • Budget Allocation FY2122: - Total: Rs. 79,529 Crs. - NPKs: Rs. 20,762 Crs. 590 - Urea: Rs. 58,767 Crs. FY20 FY21 49
Slide 51: CIL: Crop Protection – Q4
CIL: Crop Protection – Q4 Sales (Rs.Crs.) 16% In Rs. Crs. 494 426 Market FY1920 FY2021 Growth Domestic 255 324 27% Q4 LY Q4 CY PBIT (Rs.Crs.) Exports 171 170 -1% 9% Total 426 494 16% 62 57 Q4 LY Q4 CY 50 *Before Un-allocable Expenses
Slide 52: CIL: Crop Protection – FY2021
CIL: Crop Protection – FY2021 Sales (Rs.Crs.) 24% In Rs. Crs. 2059 Market FY1920 FY2021 Growth 1666 Domestic 958 1285 34% FY 1920 FY 2021 Exports 708 774 9% PBIT(Rs.Crs.) 54% Total 1666 2059 24% 333 216 FY 1920 FY 2021 51 *Before Un-allocable Expenses
Slide 53: New Product Launches – Q4
New Product Launches – Q4 NPK Fertiliser Organic Fertiliser Speciality Nutrient Balanced Plant Nutrition Organic Carbon Water Soluble Fertilizer for Soil Health For Sugarcane 52
Slide 54: CIL: P&L Statement – Standalone (Q4, FY)
CIL: P&L Statement – Standalone (Q4, FY) Q4 FY Q4 FY Description % Growth % Growth 2020-21 2020-21 2019-20 2019-20 2854 13117 Revenue from Ops 2841 0% 14163 8% 631 2692 Gross Margin 555 -12% 3118 16% 22% 20% GM% 20% 22% 242 924 Other Expenses 297 23% 1062 15% 389 1727 EBITDA 258 -34% 2003 16% 14% 13
Slide 55: COVID 19: Wave 2 - Coromandel response
COVID 19: Wave 2 - Coromandel response • Work form Home: Online meeting, Reviews and Rapid response team • Plant operations: COVID SOPs at Plant site with safety measures as per guidelines • Employee Safety: Screening, Testing, social distancing, staggered shifts, Mask/Sanitizers Distribution • Logi
Slide 56: Share Holding Pattern – 31st March 2021
Share Holding Pattern – 31st March 2021 • Promoters: - EID Parry: 56.42% - Individual/HUF: 0.65% Public & - Trust/Corporate Bodies: 0.51% Others 14.6% • Top Domestic Institutional Holdings: Insurance Co. 5.1% - Kotak Mutual Fund - DSP Mutual Fund FII 7.7% - UTI Mutual Fund - Motilal Mutual Fund Prom
Slide 57: Coromandel……Bringing Smiles to the Farmers
Coromandel……Bringing Smiles to the Farmers 56
Slide 58: Thank You
Thank You Corporate Office: For Investor Relations, contact: Coromandel International Ltd., Ms Jayashree Satagopan Coromandel House, 1-2-10, SP Road JayashreeSatagopan@coromandel.murugappa.com Secunderabad, Telangana 500003 Mr Saurabh Jain JainS1@coromandel.murugappa.com Phone no: 040 6699-7300 57
Coromandel International — Q4 FY21 Earnings Presentation on 6ix