Sumitomo Chemical India Ltd. · NSE:SUMICHEM
Sumitomo Chemical India — FY2021 Earnings Presentation
42 slides from Sumitomo Chemical India's earnings presentation, May 31, 2021
Slide 1: Exchange filing cover letter
SCIL/SEC/2021 31st May, 2021 To, BSE Limited, The National Stock Exchange of Listing Department, India Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex Mumbai-400001 Bandra East, Mumbai - 400 051 Dear Sirs, Sub: Investor Presentation on Financial Resu
Slide 2: Sumitomo Chemical India Limited Investor Presentation May 2021
Sumitomo Chemical India Limited Investor Presentation May 2021
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sumitomo Chemical India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Financial Performance & Key Highlights
Financial Performance & Key Highlights 3
Slide 5: Performance Highlights – Quarter & Full Year
Performance Highlights – Quarter & Full Year Revenue (Rs Crs) Gross Profit (Rs. Crs) & EBITDA (Rs. Crs) & PAT (Rs Crs) Gross Profit Margin (%) EBITDA Margin (%) +23% +72% +136% +20% Quarter 193 71 54 534 447 157 41 23 35.1% 36.2% 13.4% 5.1% 9.3% 10.1% Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20
Slide 6: Performance Highlights – Full Year
Performance Highlights – Full Year Key Highlights ✓ COVID-19 1st wave SCC Responsible Care Awards 2021 ▪ Production lost during few initial weeks of Q1 FY21 ▪ Subsequently production resumed and ramped up gradually over the period ✓ 2nd wave of COVID-19 has impacted operations in Q1 FY22 but not mat
Slide 7: Consolidated Profit & Loss Account Statement – Quarter & YTD
Consolidated Profit & Loss Account Statement – Quarter & YTD Quarter Full Year Particulars (Rs. Crs) Q4 FY21 Q4 FY20 YoY FY21 FY20 YoY Revenue from Operations 534.3 446.7 20% 2,644.9 2,424.8 9% COGS 340.9 289.8 1,655.4 1,607.6 Gross Profit 193.3 156.9 23% 989.5 817.2 21% Gross Profit % 36.2% 35.1% 1
Slide 8: Revenue Breakup – Full Year
Revenue Breakup – Full Year Product Breakup Geographic Breakup 7% 7% 4% 1% 2% 1% 11% 11% 3% 3% 2% 3% 2% 4% 5% 0% 6% 7% 7% 47% 45% FY20 FY21 FY20 FY21 10% 11% 80% 83% 18% 19% Insecticides PGR Fungicides Domestic Japan Europe North America Herbicides Metal Phosphides AND & EHD* Africa Asia (Ex. India)
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs) Mar-21 Mar-20 Equity & Liabilities (Rs. Crs) Mar-21 Mar-20 Non-Current Assets (A) 365.7 360.6 EQUITY (A) 1,541.3 1,221.8 Property, Plant and Equipment 277.6 282.9 Equity Share Capital 499.1 499.1 Capital work-in-progress 4.3 6.5 Other Equity 1,042.2 722.6
Slide 10: Consolidated Working Capital Movement
Consolidated Working Capital Movement Change Change Particulars (Rs. Crs) Mar-21* Mar-20* (Mar-21 to Dec-20* (Mar-21 to Mar-20) Dec-20) Inventory (A) 754.4 588.0 166.4 544.0 210.4 Inventory Days (Inventories/ COGS* No. of days in period) (i) 166 134 143 Trade Receivables (B) 848.2 849.8 -1.5 916.5 -
Slide 11: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement (Rs. Crs) Year ended 31-Mar-21 Year ended 31-Mar-20 Net Profit Before Tax 453.3 266.5 Adjustments for: Non-Cash Items / Other Investment or Financial Items 54.5 45.7 Operating profit before working capital changes 507.8 312.2 Changes in working ca
Slide 12: Capex Plans
Capex Plans Regular Capex Additional Capex Rs. 70-75 crore p.a. Rs. 100-110 crore over 1-2 years for 5 products Research & Development To manufacture additional proprietary technical Indian R&D team is working on manufacturing Maintenance capex grade active ingredients products for our parent severa
Slide 13: Digital transformation & SAP Implementation
Digital transformation & SAP Implementation Earlier SCIL was using different SAP platforms in different parts of business. From April 2021, SCIL has completed implementation of an integrated SAP SH4 HANA system across the entity including several additional modules Common SAP system across the entit
Slide 14: Sumitomo Chemical Company Limited, Japan - An Introduction
Sumitomo Chemical Company Limited, Japan - An Introduction
Slide 15: Overview of our Parent Company
Overview of our Parent Company About Sumitomo ✓ Sumitomo started business in Japan in early 16th Century (400 years+) ✓ Currently several Sumitomo founded companies operate as independent listed companies with widespread shareholding and run by its professional boards ✓ Even today, all Sumitomo comp
Slide 16: SCC - Growth Strategy in Health & Crop Sciences Sector - R&D
SCC - Growth Strategy in Health & Crop Sciences Sector - R&D Core Competence: R&D R&D performance data (Million US$) Crop Protection Sales & Number of Issued Patent (2012-2019) Sumitomo Chemical is conducting 14,000 12,600 Crop Protection Products Sales Numbers of Issued Patents R&D based on the kno
Slide 17: SCC - Growth Strategy in Health & Crop Sciences Sector - Distribution
SCC - Growth Strategy in Health & Crop Sciences Sector - Distribution Refer SCC, Japan IR presentation and Investor handbook 2020 at SCC website 16
Slide 18: Sumitomo Chemical India Ltd. - Company Overview
Sumitomo Chemical India Ltd. - Company Overview Journey to 11x Growth Formidable Player in the Indian SCIL - Vision & Mission in India Agrochemicals Space Diversified & De-risked Portfolio Strong Brand and Well- Strategically Located Across the Agro-Chem Value Entrenched Distribution Manufacturing F
Slide 19: SCIL - Vision & Mission
SCIL - Vision & Mission Vision & Values Mission Vision: Marketing and Sales: • To be a trusted market leader in Indian crop- • Further penetration into Indian market & take protection sector leadership; expand exports • To develop a vibrant corporate culture • Strengthen Sales Force, Distribution an
Slide 20: Journey to 11x Growth in India
Journey to 11x Growth in India Exploration Phase: 2000 – 2010 Manufacturing JV with New Acquired product - 2000 Chemi 2002 Started EHD (Public Health) 2005 ‘Sulfosulfuron’ Leader 2010 business rights from Monsanto Started Animal Nutrition SCIL incorporated in India as 2001 Started ASD business 2003
Slide 21: Key Products
Formidable Player in the Indian Agrochemicals Space 5 200+ Grown 11X+* over FY11-21 Manufacturing Brands Rs. Bn Facilities 13X 26.4 10+ 25+ / 200+ Technical Actives Patents / Registrations 14,000+ 1,500+ Distributors Employees Product Name Product Category Indicative Use Glyphosate Herbicide Tea Gar
Slide 22: Diversified & De-risked Portfolio Across the Agro-Chem Value Chain
Diversified & De-risked Portfolio Across the Agro-Chem Value Chain Well-Diversified across multiple dimensions Business Products Geographies Customers Crops Served Segments Diversified Portfolio Across Segments Geographic Diversification with Exports to over 60 countries Generics Speciality 7% 1% Au
Slide 23: Strong Brand and Well-Entrenched Distribution Network
Strong Brand and Well-Entrenched Distribution Network ✓ Strong brand with market leading position across various product categories 23 States 65+ Depots ✓ Dual brand portfolio can offer products at all price points serving multiple customer sub-segments 14,000+ ~40,000 ✓ In-depth knowledge of own re
Slide 24: Expanding Brand Visibility and Connect
Expanding Brand Visibility and Connect ✓ Wide range of generics and speciality products for Increased crop presence and providing crop protection solutions ✓ More than 1,400+ Relationship managers connecting to 1 million+ farmers throughout crop cycle ✓ Over 100 brands covering maximum of crops and
Slide 25: Digital Marketing Initiatives
Digital Marketing Initiatives Develop “Digital Marketing” as a parallel support to Traditional marketing system leading to improved sales. YouTube - Advantage ✓ Our Digital Assets : 23 websites, engaged with 5.6 million consumers in 2020-21. More than 31,000 subscribers http://www.danitolindia.com/
Slide 26: Strategically Located Manufacturing Facilities
Strategically Located Manufacturing Facilities Connectivity to Major Cities and Proximity to Main Highways, Ports Reduces Logistic Time and Costs Plant Location Area (acres) Segment Served Product Manufactured Manufacturing of Technical Grade Pesticides Technical Grade Products: Bhavnagar ~58 and Fo
Slide 27: Strong Focus on R&D and Process Innovation
Strong Focus on R&D and Process Innovation End-to-End Product Development Capabilities ✓ 3 fully equipped, DSIR approved R&D labs located at Mumbai, Bhavnagar and Gajod capable of synthesis, technical product and formulation development ✓ R&D Team comprises of 75+ qualified and dedicated engineers &
Slide 28: Thrust on Safety, Health and Environment (SHE)
Thrust on Safety, Health and Environment (SHE) Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites Abiding by SCC Japan’s EHS Policies ISO:9001:2015, ISO-14001:2015 and OHSAS18001:2007 for the manufacturing sites at Bhavnagar, Gajod, Tarapu
Slide 29: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Dr. Mukul Govindji Asher Preeti Gautam Mehta Chairman and Independent Director Independent Non-executive Director ▪ Professorial Fellow at Lee Kuan Yew School of Public Policy at ▪ 30 years of experience in corporate laws, foreign investment the Nationa
Slide 30: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Hiroyoshi Mukai Tadashi Katayama Masanori Uzawa Non-executive Director Non-executive Director Non-executive Director ▪ MBA from University of Virginia, USA and ▪ MBA from Vanderbilt University, U.S.A. a Bachelor’s degree from the University ▪ Associated
Slide 31: Growth Strategies
Growth Strategies Continued Investment in R&D and Pipeline Capacity Expansion Achieving Market Leadership in • Aim to invest in seamless integration of R&D between SCIL and SCC • units which would help improve our production processes, Driving operational efficiencies maintaining highest safety stan
Slide 32: Historical Performance Highlights & Key Takeaways
Historical Performance Highlights Financial Performance & Key Takeaways Key Takeaways
Slide 33: Historical Performance Highlights
Historical Performance Highlights Revenue (Rs Crs) EBITDA (Rs. Crs) & EBITDA Margin (%) PAT (Rs Crs) ✓ Good monsoon and availability +11% of water boosted farmer 2,645 487 345 sentiment and resulted in good 2,425 +31% +34% 2,228 growth in rabi season 2020 as 1,913 333 291 205 well as upcoming Kharif
Slide 34: Consolidated Profit & Loss Account Statement
Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) FY21 FY20 FY19 FY18 Net Revenue from Operations 2,644.9 2,424.8 2,228.4 1,912.9* COGS 1,655.4 1,607.6 1,458.9 1,238.7 Gross Profit 989.5 817.2 769.6 674.2 Gross Profit % 37.4% 33.7% 34.5% 35.2% Employee Expenses 194.3 179.3 158.4 147
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs) Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (Rs. Crs) Mar-21 Mar-20 Mar-19 Mar-18 Non-Current Assets (A) 365.7 360.6 318.3 312.7 EQUITY (A) 1,541.3 1,221.8 1,048.4 954.0 Property, Plant and Equipment 277.6 282.9 277.2 264.8 Equity Share Capital 499.1
Slide 36: Consolidated Working Capital Movement
Consolidated Working Capital Movement Change Particulars (Rs. Crs) Mar-21 Mar-20 Mar-19 (Mar-21 over Mar-19) Inventory (A) 754.4 588.0 680.6 73.8 Inventory Days (Inventories/ COGS*365) (i) 166 134 170 Trade Receivables (B) 848.2 849.8 671.0 177.2 Trade Receivables Days (Trade Receivables / Revenue*3
Slide 37: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Year ended Year ended Year ended Year ended Particulars (Rs. Crs) 31-Mar-21 31-Mar-20 31-Mar19 31-Mar-18 Net Profit Before Tax 453.3 266.5 259.8 221.0 Adjustments for: Non-Cash Items / Other Investment or Financial Items 54.5 45.7 18.6 9.6 Operating profit before wor
Slide 38: Key Takeaways
Key Takeaways Formidable Player in the Indian Experienced Management Team Well-diversified Product Portfolio Strong Brand and Well-Entrenched Agro-chem Space and Board of Directors Across Agro-Chem Value Chain Distribution Network ▪ Strong / leadership position across ▪ Strong management and ▪ Multi
Slide 39: Annexures
Awards & Accolades Annexures Details on Merger with Excel Crop Care Ltd.
Slide 40: Awards & Accolades
Awards & Accolades Jamnalal Bajaj Award for “Fair Business and Practices” Shramveer award for improvement of product efficiency received from national level Delhi First ever president’s gold shield for import substitution Vishwakarma Rashtriya Puraskar received for process development First award fo
Slide 41: Merger of Excel Crop Care to Unlock Value
Merger of Excel Crop Care to Unlock Value Successfully and smoothly completed the merger Pre-Merger Structure Post-Merger Structure SCC and its affiliates Public Shareholders SCC and its affiliates (Japan) 44.98% Public & Others (Japan) 35.03% Excel Crop Care (ECC) 75% 19.7% 100.00% 19.98% Sumitomo
Slide 42: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Sumitomo Chemical India Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110MH2000PLC124224 CIN: U74140MH2010PTC204285 Mr. Jigar Kavaiya +91 99206 02034 investor.relations@sumichem.co.in jigar.kavaiya@sgapl.net www.s
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