Jk Paper Limited · NSE:JKPAPER
Jk Paper — Investor Presentation (November 2016)
29 slides from Jk Paper's investor presentation, Nov 9, 2016
Slide 1: JK Paper Ltd. exchange filing letter
JK PAPER LTD. Nehru House, 4 Bahadur Shah Zafar Marg, New Delhi-| 10002 PAPER JKP/SH/2016 9!" November 2016 Electronic Filing Department of Corporate Services/Listing | National Stock Exchange of India Ltd. BSE Limited “Exchange Plaza” Bandra-Kurla Phiroze Jeejeebhoy Towers, Complex, Bandra (E), Dal
Slide 2: JK Paper Today – Investor Presentation
JK Paper Today Investor Presentation An Industry benchmark with Power Packed Brands 9th November, 2016
Slide 3: JK Paper one of the leading companies of JK Organisation
JK Paper Ltd is one of the leading companies of JK Organisation – a prominent business house of India founded over 100 years ago Paper Cement Tyre Rs. Cr. Rs. Cr. Rs. Cr. Mkt Cap 5,668 Mkt Cap 3,251 Mkt Cap 1,453 Revenue 2,955 Revenue 7,562 Revenue 2,881 V-Belts- Oil Seals & Power Agri Genetics USD
Slide 4: JK Paper - History & Milestones
JK Paper - History & Milestones 75 YEARS JOURNEY OF JK PAPER Started Manufacturing Straw Board at First Integrated Pulp & Paper company in India & 3rd Paper Company 1938 Bhopal with a capacity of 3,600 TPA in the World to get Award for TPM Excellence – First Category from JIPM Installed 1st Fine Pap
Slide 5: JK Paper – Shareholding Pattern
JK Paper – Shareholding Pattern Major Institutional Investors Shareholding Pattern As on 30th September 2016 Others including NRIs Promoters Employee 57.74% Trusts 7.61% 10.27% Individuals 14.21% FCCBs Holders Institutions 10.17% 4 J K PAPER …….Creating Lasting Impressions Slide No.4
Slide 6: JK's Brands are Industry Benchmarks In Respective Product Categories
JK’S Brands are Industry Benchmarks In Respective Product Categories Plants with state of the art technology and minimal environmental impact Panoramic view of the Unit JKPM (Orissa) -295,000 tpa Copier Paper (Market Leader – Current Mkt. Share is 27%) Coated Paper ( Amongst top Two – Current Mkt. S
Slide 7: Strategic Geographical Presence
Strategic Geographical Presence Total Production Capacity • Strategic location Saleable Product : 455,000 tons per annum (tpa) Pulp : 276,000 tpa (BD) – JKPM located close to raw material sources – CPM located close to large end customers & port • Strong distribution reach – 4 regional offices UNIT
Slide 8: Global v/s Indian Paper Industry
Global v/s Indian Paper Industry World Per Capita Consumption (Paper + Board) in Kgs -2014 250 224 218 200 159 156 150 100 75 66 57 50 47 30 29 11 8 0 Source : PPI Global - 2014 India 2014-15 India 2018-19 Product CAGR % CAGR % CAGR% Sl. Mn % Mn % Mn No Category Tons Share last 4 yrs Tons Share last
Slide 9: Indian Paper Market & Product Category
Indian Paper Market & Product Category CAGR CAGR Market Size Category Share of (5 Years) (14-15 to (in Lac MT) Total 2011-12 18-19) 15-16 18-19 (15-16) Base year Industry 1 2 3 4 5 6 1.0 Writing & Printing Paper 47.7 56.1 30% 5.5% 5.6% 1.1 Creamwove/Maplitho (Low Bright) 19.0 21.5 12% 4.1% 4.2% 1.2
Slide 10: Demand / Supply
Demand / Supply Copier Paper - Lac MT Uncoated Paper (Copier + Maplitho) - Lac MT 10.00 Market Demand 9.73 Total Demand- Copier +Maplitho Potential Supply (incl Imports) 32 Potential Supply CAGR 9.02 30 CAGR 28.57 9.00 2011-16 : 6.7% 28 2011-16 : 13.4% 2016-21 : 6.3 % 7.83 2016-21 : 6.1 % 8.00 26 24
Slide 11: Difference in MOP – Domestic vs Imports
ASEAN FTA DIFFERENCE IN MOP* – DOMESTIC vs IMPORTS % difference of MOP – Domestic vis-à-vis ASEAN imports USD @ Rs 67 70 11.3% 10.7% 9% 60 4.4% Rs Thousands 50 ASEAN (A) 40 Non-ASEAN (NA) 30 Domestic MOP (D) 20 10 0 Copier Wood Free Virgin Fibre Coated Paper Board As of October 2016 Source: Company
Slide 12: New Project at Unit - JKPM (I)
New Project at Unit - JKPM……(I) Fibreline (215,000 TPA) Paper Machine (165,000 TPA) J K PAPER …….Creating Lasting Impressions Slide No.11
Slide 13: New Project at Unit - JKPM (II)
New Project at Unit - JKPM……(II) Power Plant A4 Cutting Line Robotic Palletizer J K PAPER …….Creating Lasting Impressions Slide No.12
Slide 14: JKPL Performance – EBITDA
JKPL Performance EBITDA (Rs. Crore) 160 25.0% 141 140 20.0% 120 EBITDA % 100 114 117 15.0% 102 106 98 80 93 10.0% 60 77 5.0% 40 53 45 20 0.0% Q-1 Q-2 Q-3 Q-4 Q-1 Q-2 Q-3 Q-4 Q-1 Q-2 2014-15 2015-16 2016-17 EBITDA (Rs. Crore) EBITDA % Note: Current Year FY 2016-17 (Q1 & Q2) is as per Ind AS which is
Slide 15: Key Financials for Q2 & H1 (FY 2016-17 vs FY 2015-16)
JK Paper - Key Financials for Q2 & H1 (FY 2016-17 vs FY 2015-16) Rs. Cr. 2nd Quarter (Q2) 6 Months (H1) % Growth Unit 2016-17 2015-16 2016-17 2015-16 Q2 H1 Sales Volume MT 1,27,315 1,11,510 2,41,637 2,19,945 14.2 9.9 Uncoated Paper MT 80,095 69,899 1,52,265 1,39,497 14.6 9.2 Coated Paper MT 24,742 1
Slide 16: JKPL - Profitability
JKPL - Profitability Rs. Cr. 2013-14 2014-15 2015-16 2016-17 S.N. Description 12 Months 12 Months 12 Month Q1 Q2 H1 1 Net Sales 1,822 2,260 2,548 637 709 1,346 1.1 Other Operating Income 17 20 33 1 12 13 1.2 Total Income from Operations 1,838 2,280 2,581 638 721 1,359 2 Cost of Materials Consumed 1,
Slide 17: Industry Turnaround (I)
Industry Turnaround... (I) 1. Stability / Moderation in Raw Material Price 2. Moderation / Stability in Chemical Prices 3. Stability in Coal Prices 4. Gradual uptick in output price after capacity absorption 5. Closure of Unviable Capacities - Closer of Capacities Unit – 1 1,38,300 TPA Unit – 2 72,0
Slide 18: Industry Turnaround (II)
Industry Turnaround... (II) Hardwood Prices (Rs./ADMT) 12,000 10,000 8,000 Rs. / ADMT 6,000 4,000 2,000 - Q1 Q2 Q3 Q4 Q1 Q2 2010- 2011- 2012- 2013- 2014- 2015- 2015- 2015- 2015- 2016- 2016- 11 12 13 14 15 16 16 16 16 17 17 Hardwood 4,290 5,237 6,558 8,962 9,750 9,242 9,640 9,611 9,093 8,519 9,081 Ch
Slide 19: JK Paper - Performance Highlights
JK Paper - Performance Highlights 1. Increase in Copier Market share to 27 % in Domestic Market from 19 % in FY 2012-13 2. Exports of 48,553 MT in FY 16 compared to 12,900 MT in FY15 3. Unit : JKPM PM-6 achieved over 100% capacity utilisation (Q4 103.2 %) . 4. Unit : JKPM achieved best in the class
Slide 20: Consumption – Electricity & Coal
JK Paper (Total Company) Consumption – Electricity & Coal Electricity Consumption - Per MT of Paper & Board 1,400 Kwh/MT of Output 1,300 1,200 1,100 1,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 JKPL 1,378 1,398 1,250 1,191 1,180 1,153 1,120 1,176 1,161 1106 Coal Consumption - Per MT of Pa
Slide 21: Unit JKPM Efficiency Improvements
JK Paper (Unit – JKPM) Efficiency Improvements Power Kwh/T Paper Coal T/T Paper 1500 2.50 2.06 1389 1.90 1.88 1368 1356 1369 1400 2.00 1.53 1287 1300 1.50 1211 1.02 1176 0.81 1200 1.00 0.74 1131 0.65 1100 0.50 1000 - 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Q1 2016- Q2 2016- 2010-11 2011-12 2
Slide 22: Unit JKPM Chemical Consumption – Kg/T Pulp
JK Paper (Unit – JKPM) Chemical Consumption – Kg /T Pulp Lime Kg/T Pulp Caustic Kg/T Pulp 570 600 534 538 120 504 102 481 466 468 500 452 100 87 85 79 72 73 400 80 64 55 60 300 40 200 20 100 0 0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Q1 2016- Q2 2016- 2010-11 2011-12 2012-13 2013-14 2014-15
Slide 23: Quantum Jumps through continuous expansions in last one decade
Quantum Jumps through continuous expansions in last one decade 2005 - Expansion in Coated Paper, 2007 - Expansion in Packaging Board and 2013 - Expansion in Uncoated Paper Volume - '000 MT 3 Times Turnover (Gross Sales) - Rs. Cr. 4 Times 500 3,500 400 3,000 2,500 '000 MT 300 Rs. Crore 2,000 200 1,50
Slide 24: Farm Forestry and Raw Material Security Initiatives
Farm Forestry and Raw Material Security Initiatives JK Paper – Plantation Coverage under Farm Forestry – in Hectare Clonal Development Centre 20,000 16,934 17,536 Started in 1991-92 14,877 15,000 17,536 Ha area Maximum planted in 2015-16 Coverage 11,803 within 200 km Overall > 1.44 Lac Ha 10,0
Slide 25: Financial Highlights – Profitability
Financial Highlights – Profitability Sl. H1 Financial Year >>> 2012-13 2014-15 2015-16 No. (2016-17) 1 Quantity In MT 1.1 Production 2,92,582 4,13,835 4,49,918 2,39,123 1.2 Capacity Utilisation 101% 91% 98.9% 105% 1.3 Sales Volume 2,90,421 3,98,387 4,59,977 2,41,637 2 Operating Results In Rs. Cr. 2.
Slide 26: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet Rs. Cr. Year End >>> 31st March 30th Sep 2014 2015 2016 2016 Total Assets 3,058 2,897 2,868 2,903 Net Fixed Assets 2,465 2,294 2,292 2,377 CWIP 17 27 20 25 Investments 96 28 35 268 Net Current Assets (excl. cash) 472 530 507 230 Cash / Bank balance 8 17 15 3 Capi
Slide 27: Key Awards & CSR
Key Awards & CSR Key Awards received in last one year Livelihood Interventions CSR Unit JKPM 1. 87 Self help Groups (SHGs) with over 1000 members stabilised 1. 1st Prize among Pulp and Paper Industries in the prestigious “National Energy Conservation Award 2015” 2. 456 SC & ST youth mobilised and mi
Slide 28: Disclaimer
Disclaimer This presentation (the “Presentation”), which has been prepared by JK Paper Ltd. (the “Company”), has been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be
Slide 29: Thank You
THANK YOU J K PAPER …….Creating Lasting Impressions Slide No.28