Fine Organic Industries Ltd. · NSE:FINEORG
Fine Organic Industries — Investor Presentation (February 2021)
39 slides from Fine Organic Industries's investor presentation, Feb 16, 2021
Slide 1: Stock exchange disclosure cover letter
Fine Organic Industries Limited Regd.Office Fine House, Anandji Street, Off M. G. Road, Ghatkopar East, Mumbai 400 077, India. ~ CIN Tel : L24119MH2002PLC136003 : + 91-22-2102 5000 to 15 ffl'NE ORGANICS Fax : + 91-22-2102 889912102 6666 Email : info@fineorganics.com www.fineorganics.com Date: Februa
Slide 2: Investor Presentation February 2021
Investor Presentation February - 2021
Slide 3: Fine Organics leaf mark, typeface and logo
THE LEAF MARI< The leafmark symbolises nature as a source of innovation THE FINE ORGANICS TYPEFACE FINE ORGANICS The readable and geometric typeface represents our focus FINE ORGANICS on technology and the customer THE LOGO The Logo serves as a beacon for sustainable and customer-centric innovation
Slide 4: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fine Organic Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 5: Success
Z FINE ORGANICS SSHOONS HO AXOLS ANIA HHL
Slide 6: Expertise in Oleo-chemistry
Expertise in Oleo-chemistry An established and reputed A Technical Pinch of salt in the end international player of oleochemical- product making a HUGE difference in based additives, rooted in India the product performance We create Specialty additives for diverse applications We are omnipresent and
Slide 7: Why FINE additives are preferred?
Why FINE additives are preferred? ✓ FINE green additives have been effectively Demand for oleochemical derived additives is increasing replacing potentially hazardous chemicals in wide range of industries such as plastics, packaging, foods, cosmetics, rubbers, coatings etc. without compromising on t
Slide 8: Legacy in Green Additives
Legacy in Green Additives Wide Product Range Diverse Customer Base Global Distribution In-house Capability Global Presence Network Direct Customers Distributors Products Over 100,000 TPA 70+ 400+ 750+ 170+ In-house capability for Product Largest producer of oleochemical- development, Process technol
Slide 9: High-Performance Environment Friendly Additives
High-Performance Environment Friendly Additives Investor Presentation November-2019
Slide 10: 50 years of Journey
50 years of Journey 1970 1988 2002 1973 2001 2005 Established as ‘Fine Commissioned first Set up second facility in Commissioned facility at Incorporated the Established R&D centre in Organic Industries’, a food additives facility in Ambernath Badlapur (Aug 2001) company under the name Navi Mumbai p
Slide 11: A Fine Family
A Fine Family 700+ >15% >11% >12% Employee Women Employees Comprise 1st & strength employees completed 25 2nd generation of . years of journey employees with us Integrity is both a value as well as a character that is embedded Creating and encouraging home-grown leadership with the in every Fine Org
Slide 12: Strength formulae for Success of FINE ORGANICS
Strength formulae for Success of FINE ORGANICS Innovative Technology Relentless Products and Development Focus Solution 01 02 03 04 05 06 Strong R&D & Diversified Specialized Diversified Highly Dominant Innovation led Product Business Customer Experienced Position Business Portfolio Model Base Manag
Slide 13: 1. Strong R&D: Innovative Approach
1. Strong R&D : Innovative Approach Strong In-House Design and New Product R&D Capabilities Engineering Developments Specialty Additives for: ▪ Value Creation; Effective and Efficient ▪ In-house capabilities for plant designing and technical support to customers engineering ▪ Feed nutrition ▪ Coatin
Slide 14: With Industry Standards and Regulatory Credentials
With Industry Standards and Regulatory Credentials ✓ Setting new benchmarks in quality and consistency ✓ High safety and productivity standards ✓ Products are appreciated by customers worldwide for their consistent quality and packaging standards Fine’s facilities are fully geared towards meeting gr
Slide 15: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users The diversity of oleochemistry has Pioneer in manufacturing & enabled us to develop a wide range marketing of emulsifiers in India. of additives for PVC, Polyolefins, Styrenics, Polyamides & other Expanded its range to anti-fungal engineering pol
Slide 16: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Food Additives Polymer Additives Additives for Coatings Additives for maintaining the quality Used for various functionalities in wide Used as anti-settling agents, and freshness of the food products, range of plastic products made from emulsifie
Slide 17: 3. Specialised Business Model: Entry Barriers
3. Specialised Business Model : Entry Barriers Limited Players Limited & small players in Indian specialty additives market. Globally Few players which are very large Fine Organics : Largest organised player in the Indian market & is making its presence across the globe Lengthy & expensive product a
Slide 18: 4. Diversified Customer Base
4. Diversified Customer Base Warehouses in USA & Europe Products 400+ End Users 5,000+ Countries 70+ Direct Customers 750+ Distributors 170+ 17 Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness All the
Slide 19: 5. Highly Experienced Management Team
5. Highly Experienced Management Team Prakash Kamat – Executive Director and Chairman Prakash Apte – Independent Director ▪ Holds a M.Sc. Tech- Master of Science & Tech (Oils) from Institute of ▪ On the Board since Nov 2017. Holds a Bachelor’s degree in Chemical Technology (formerly UDCT) Mechanical
Slide 20: 6. Dominant Position
6. Dominant Position Pioneers and the largest manufacturers of oleochemical-based additives in India and a strong player globally Fully automated production facility multiple production sites One of the few global players in the specialty food emulsifiers One of the few global players in the polymer
Slide 21: COVID-19 Business Update
COVID-19 Business Update • Fine’s Safe Chemistry & Philosophy supporting fight against COVID-19 Dividend continued as usual Financial assistance extended to employees Financial Support provided to Local community No Job losses & No Salary Reductions 20
Slide 22: Industry Potential: Multiple Growth Levers
INDUSTRY POTENTIAL: Investor Presentation 1. Food Additives 2. Polymer Additives MULTIPLE GROWTH LEVERS November-2019 3. Other Specialty Additives
Slide 23: 1. Food Additives
1. Food Additives Global Food Emulsifiers Market Size* Indian Food Emulsifiers Market Size* In US $ Mn 2495.1 In US $ Million 144.8 1921.2 CAGR 5.4% 101.5 CAGR 7.36% 2018E 2023E 2018E 2023E Region-wise Growth Consumer Food Industry (From 2018 – 2023E) (From 2018 – 2023E) In US $ Mn In US $ Million 6
Slide 24: 2. Polymer Additives
2. Polymer Additives Global Market Size* Indian Market Size* In US $ Mn 30,000 CAGR 6.4% In INR Million 90,000 CAGR 9.2% 22,000 58,000 2016 2021E Country-wise Growth 2016 2021E End-user Segment Growth (From 2016 – 2021E) (From 2016 – 2021E) In US $ Mn In INR Million 7.0% 8.4% Asia Pacific Strong gro
Slide 25: 3. Other Specialty Additives: Key Drivers
3. Other Specialty Additives : Key Drivers Cosmetics & Additives Industry Specialties Feed Nutrition Rubber Pharmaceuticals for Coatings ▪ Dispersing agents ▪ Processing Aids ▪ Natural Antibiotics ▪ Emulsifiers & Emollients Key Additives & ▪ Emulsifiers ▪ Specialty Plasticizers ▪ Lube additives ▪ Nu
Slide 26: Financial Highlights
Financial Highlights
Slide 27: Standalone Performance Highlights (YoY)
Standalone Performance Highlights (YoY) Rs in Crores Revenues EBITDA PAT +12% -20% -24% 298 58 37 266 46 28 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Revenues EBITDA PAT +2% -19% -35% 784 800 181 133 146 86 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 26
Slide 28: Standalone Performance Highlights (QoQ)
Standalone Performance Highlights (QoQ) Rs in Crores Revenues EBITDA PAT +12% -6% -4% 298 49 29 46 28 266 Q2FY21 Q3FY21 Q2FY21 Q3FY21 Q2FY21 Q3FY21 27
Slide 29: 9MFY21 Standalone Operating Performance
9MFY21 Standalone Operating Performance Rs in Crores Revenues EBITDA & Margins 18.6% 22.5% 18.9% 19.3% 21.3% 23.0% 18.3% +11% 1,044 1,026 856 777 800 55% +16% 222 236 651 55% 608 58% 56% 164 62% 146 147 146 Exports 59% 54% 113 42% 45% 45% Domestic 41% 46% 38% 44% FY15 FY16 FY17 FY18 FY19 FY20 9MFY21
Slide 30: Use of Capital (Standalone)
Use of Capital (Standalone) Net Debt to Equity Fixed Asset Turnover 0.48x 9.44x 7.77x Strengthening 6.56x 0.25x Liquidity position 4.92x 5.22x 0.11x during this 4.38x 0.08x crisis scenario 0.05x 4.13x 3.10x 2.79x 3.10x 3.26x 3.71x 2.26x -0.13x 2.21x -0.23x FY 15 FY 16 FY 17 FY 18 FY19 FY20* H1FY21#
Slide 31: Standalone Return Profile
Standalone Return Profile Return on Capital Employed Return on Net Worth 32.64% 32.77% 30.31% 31.15% 32.17% 28.86% 26.70% 26.31% 24.81% 25.37% 26.38% 23.88% 21.60% 19.30% FY15 FY16 FY17 FY18 FY19 FY20 H1FY21# FY15 FY16 FY17 FY18 FY19 FY20 H1FY21# Return on Capital Employed = EBIT (excluding Other In
Slide 32: Q3&9MFY21 Standalone Profit & Loss Statement
Q3&9MFY21 Standalone Profit & Loss Statement Particulars (Rs in Crs) Q3FY21 Q3FY20 Q2FY21 9MFY21 9MFY20 Revenue from Operations 298.2 265.9 265.8 799.6 783.8 Cost of Raw Material Consumed 197.0 153.7 167.6 508.6 463.3 Gross Profit 101.2 112.2 98.2 291.0 320.5 Gross Profit Margin 33.9% 42.2% 36.9% 36
Slide 33: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs in Crs) Sep-20 Mar-20 Equity & Liabilities (Rs in Crs) Sep-20 Mar-20 Non-current assets Equity Property, plant and equipment 196.7 215.9 Equity share capital 15.3 15.3 Capital work-in-progress 22.0 5.8 Other equity 665.4 615.4 Intangible assets 0.7 0.9 Financial a
Slide 34: 9MFY21 Consolidated Operating Performance
9MFY21 Consolidated Operating Performance Rs in Crores Revenues EBITDA & Margins 18.3% 22.6% 18.6% 18.6% 21.7% 23.2% 18.6% +11% 1,060 1,038 856 810 778 +17% 230 241 607 652 145 145 158 151 111 FY15 FY16 FY17 FY18 FY19 FY20 9MFY21 FY15 FY16 FY17 FY18 FY19 FY20 9MFY21 PAT & Margins Cash PAT & Margins
Slide 35: Use of Capital (Consolidated)
Use of Capital (Consolidated) Net Debt to Equity Fixed Asset Turnover 0.48x 9.58 x 7.74 x 0.24x Net Cash 6.57x Position 4.91x 5.23x 0.10x 4.36x 0.07x 0.04x 4.18x 3.27 x 3.77 x 3.09x 2.79x 3.11x 2.29x 2.24x -0.14x -0.23x FY 15 FY 16 FY 17 FY 18 FY 19 FY20* H1FY21*# FY15 FY16 FY17 FY18 FY19 FY20 H1FY2
Slide 36: Consolidated Return Profile
Consolidated Return Profile Return on Capital Employed Return on Net Worth 32.75% 32.88% 33.85% 30.46% 30.80% 27.24% 27.45% 28.51% 27.67% 25.67% 23.65% 24.06% 22.05% 19.41% FY15 FY16 FY17 FY18 FY19 FY20 H1FY21# FY15 FY16 FY17 FY18 FY19 FY20 H1FY21# Return on Capital Employed = EBIT (excluding Other
Slide 37: Q3&9MFY21 Consolidated Profit & Loss Statement
Q3&9MFY21 Consolidated Profit & Loss Statement Particulars (Rs in Crs) Q3FY21 Q3FY20 Q2FY21 9MFY21 9MFY20 Revenue from Operations 299.3 266.2 271.0 810.3 790.8 Cost of Raw Material Consumed 195.5 153.0 169.0 510.9 464.5 Gross Profit 103.8 113.2 102.0 299.4 326.3 Gross Profit Margin 34.7% 42.5% 37.6%
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs in Crs) Sep-20 Mar-20 Equity & Liabilities (Rs in Crs) Sep-20 Mar-20 Non-current assets Equity Property, plant and equipment 196.7 215.9 Equity share capital 15.3 15.3 Capital work-in-progress 22.0 5.8 Other equity 654.6 603.6 Intangible assets 0.7 0.9 Non-Contr
Slide 39: Thank you
For further information, please contact: Thank you Company : Investor Relations Advisors : CIN: L24119MH2002PLC136003 CIN: U74140MH2010PTC204285 Ms. Sonali Bhadani Mr. Rahul Agarwal / Mr. Mandar Chavan Vice President - Finance +919821438864 / +919699382195 Email: rahul.agarwal@sgapl.net / mandar.cha
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