Slide 1: IFGL Refractories Ltd Result Update Presentation, November 2015
IFGL REFRACTORIES LTD RESULT UPDATE PRESENTATION , NOVEMBER 2015
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), has been prepared by IFGL Refractories Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not for
Slide 3: Industry Overview
INDUSTRY OVERVIEW
Slide 4: Tough times in 2015
Tough times in 2015 Global Steel Slowdown Steel production fallen by 2.86% in H1FY16 Increased Chinese Exports Chinese Steel Exports increased by 28% in first 6 months of the year USA Steel production slowing Cheaper imports causing production slowdown in USA Protection introduced European Commissio
Slide 5: … expect better performance in 2016
… expect better performance in 2016 Source – Worldsteel Short Range Outlook 2015-16 5
Slide 6: U.S.A. Refractories' Market to improve
U.S.A. Refractories’ Market to improve Demand Uptick Expected Demand in U.S for refractories to increase 3.3% p.a. through 2019 to $3.1 bn Value Addition to Improve U.S. Imports lower cost commodity products & Exports higher value advanced refractories Shipments to Increase Shipments expected to ris
Slide 7: IFGL - Ready to Capitalize on
IFGL - Ready to Capitalize on Increase in Steel Steel Demand in Stabilizing World Production In the World ex- Economy to India on back of China to is lead to recovery Infrastructure expected to of Steel Demand growth & grow by 2.9% in in Developed Safeguards 2016 Economies IFGL is present in 50% of
Slide 8: Our Performance
=, = = Na = > lt a” af ’ i, - { r i j « ¢ F | ; . Y r, e as} s d i 4 f / ! Our Performance
Slide 9: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars [Rs. Crs] H1 FY16 H1 FY15 Commentary Total Income 372.4 405.0 Provision: Relates to a provision of GBP 0.64mn Raw Material 191.1 202.5 (comprising of receivables of GBP Employee Expenses 58.7 58.3 0.51mn and stocks of GBP 0.13mn) due to Other Expenses 74.6 88.1
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars [Rs. Crs] Sep’15 Mar’15 Particulars [Rs. Crs] Sep’15 Mar’15 Commentary Shareholder’s Fund 380.0 344.8 Non-Current Assets 265.5 254.7 Debt: Debt levels remain at comfortable levels. Share capital 34.6 34.6 Fixed assets 129.9 128.1 Gross Debt reduced by Goodwill
Slide 11: Standalone Financial Highlights – H1FY16
Standalone Financial Highlights – H1FY16 Standalone Turnover [Rs. Crs] EBITDA [Rs. Crs] 167.1 165.9 25.2 23.5 H1FY15 H1FY16 H1FY15 H1FY16 Domestic V/s Export Sales [%] PAT [Rs. Crs] 14.1 12.7 Domestic 48.4% 51.6% Exports H1FY15 H1FY16 11
Slide 12: Consolidated Financial Highlights – H1FY16
Consolidated Financial Highlights – H1FY16 Standalone Turnover [Rs. Crs] EBITDA before provision [Rs. Crs] 405.0 372.4 56.1 48.0 H1FY15 H1FY16 H1FY15 H1FY16 EBITA margin PAT After MI [Rs. Crs] 13.8% 32.3 12.9% 21.1 H1FY15 H1FY16 H1FY15 H1FY16 *Normalized EBITDA is before Provision (other than Tax) w
Slide 13: Subsidiary Performance – H1FY16
Subsidiary Performance – H1FY16 Monocon Group [GBP mn]* EI Ceramics [$ mn] 16.3 8.8 7.7 14.1 1.4 1.3 0.9 0.9 0.7 0.6 0.3 -0.1 H1FY15 H1FY16 H1FY15 H1FY16 Revenue EBITDA IFGL Exports [Rs. Crs] Hoffman Ceramics [Euro mn] PAT 5.5 23.3 23.3 5.4 6.1 0.6 0.6 4.9 0.4 0.4 3.5 1.3 H1FY15 H1FY16 H1FY15 H1FY16
Slide 14: Reputed Global Brand
fveth Reputed Global Brand
Slide 15: Strong Brand in Global Refractories Market
Strong Brand in Global Refractories Market Consolidated Turnover [Rs. Crs.] FY15 Sales by Region +13.8% 781 793 Europe UK [exc UK] 676 12% 35% 606 473 Americas 23% India Asia [exc 22% India] 8% India Europe [exc UK] UK Americas FY11 FY12 FY13 FY14 FY15 Asia [exc India] 15
Slide 16: IFGL 5 Year Performance
IFGL 5 Year Performance Particulars [Rs. Crs] FY11 FY 12 FY 13 FY 14 FY 15 CAGR Total Income 473.3 607.1 676.8 781.0 793.5 13.8% Raw Material 247.0 303.8 352.3 378.0 406.1 Employee 66.1 84.3 98.7 110.0 117.9 Expenses Other Expenses 113.3 141.8 163.2 181.0 170.6 EBITDA 47.0 77.2 62.7 113.0 98.9 20.4%
Slide 17: Profitable Overseas Businesses…
Profitable Overseas Businesses… Revenue in Company Manufacturing Acquisition 2015 Acquisition Acquired Facilities Cost Revenue Year Monocon UK + USA + GBP 9.5mn GBP 21mn GBP 27mn Group, China UK - 2005 Hoffman Germany, Eu Euro 7.0mn Euro 9mn Euro 10mn Group, rope UK - 2008 Ei Ceramics Cincinnati, U
Slide 18: …bucking Global Steel Trend and…
…bucking Global Steel Trend and… Revenue EBITDA PAT Monocon Group [GBP mn] EI Ceramics [$ mn] Hoffman Ceramics [Euro mn] 27.6 16.8 10.2 10.2 27.4 16.6 15.9 9.9 26.1 2.7 0.9 2.6 2.5 2.3 2.2 1.5 0.5 0.5 0.6 1.6 1.5 1.5 1.3 1.1 0.3 0.7 0.2 FY13 FY14 FY15 FY13 FY14 FY15 FY13 FY14 FY15 Despite challengin
Slide 19: …increasing focus on improving Returns
…increasing focus on improving Returns* Monocon Group EI Ceramics Hoffman Ceramics +330Bps +210Bps +390Bps 8.4% 15.7% 9.0% 13.6% EBITDA 5.1% 5.1% FY13 FY15 FY13 FY15 FY13 FY15 +850Bps +1,320Bps -60Bps 13.9% 16.4% 26.4% 15.8% ROCE 13.2% 5.4% FY13 FY15 FY13 FY15 FY13 FY15 * On Basis of Local currency
Slide 20: Sustainable Shareholder Value Creation
Sustainable Shareholder Value Creation Return on Capital Employed [%] Net Debt : Equity Ratio [x] Net Debt : EBITDA Ratio [x] 22% 0.7 2.5 18% 18% 0.5 1.9 0.5 13% 13% 1.4 0.3 0.2 0.8 0.7 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 * Consolidated ROCE = EBIT/ (Total Debt
Slide 21: Dividend Record
Dividend Record 20.0% 17.5% 15.0% 15.0% 5.0% FY11 FY12 FY13 FY14 FY15 Particulars (Rs.) FY11 FY12 FY13 FY14 FY15 Consolidated Book Value per Share 50.8 64.1 70.9 95.1 99.7 Consolidated Earning Per Share 6.9 11.3 7.9 18.3 15.1 Dividend Per Share 0.5 1.5 1.5 1.75 2.00 21
Slide 22: Contact
Contact For further information, please contact: Company : Investor Relations Advisors : IFGL Refractories Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L27202OR1989PLC002971 CIN - U74140MH2010PTC204285 Mr. Rajesh Agrawal Mr. Shogun Jain / Ms. Sanjita Ghosh rajesh.agrawal@ifgl.in jshogun@sgapl.net