Rain Industries Limited · NSE:RAIN
Rain Industries — Investor Presentation (May 2019)
31 slides from Rain Industries's investor presentation, May 29, 2019
Slide 1: Cover letter to stock exchanges: Corporate Presentation
all L RAIN INDUSTRIES LIMITED RIL/SEs/2019 May 29, 2019 The General Manager The Manager Department of Corporate Services Listing Department BSE Limited The National Stock Exchange of India Phiroze Jeejeebhoy Towers Limited Dalai Street, Fort Bandra Kurla Complex Mumbai-400 001 Bandra East Mumbai - 4
Slide 2: Rain Industries Limited Corporate Presentation – May 2019
RAIN INDUSTRIES LIMITED Corporate Presentation – May 2019 Investor Relations Contact: RAIN is a leading vertically integrated global producer of a diversified portfolio of products that are essential raw materials for staples of everyday life. We operate in three business segments: Carbon, Cement an
Slide 3: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including our statements addressing our expectations for segment volumes an
Slide 4: RAIN - At a glance
RAIN - At a glance Global producer of 2.1 MT #1 Coal Tar Pitch Calcined petroleum coke production Global producer of #2 Calcined Petroleum Coke 1.3 MT Coal tar distillation 18 production facilities in 8 countries across 3 continents 5 waste-heat recovery systems 0.7 MT 132 MW eco-friendly energy co-
Slide 5: Key Milestones
Key Milestones Doubled production Brownfield expansion Acquired RÜTGERS, Commissioned capacity of CPC to of cement with a the world’s 2nd FGD system in become capacity of 1.5 Million largest coal tar Chalmette, the 5th largest Tons p.a. at the cement distiller. Louisiana, USA. global producer plant
Slide 6: Global Facilities
Global Facilities CTDF in Cherepovets, Russia CTPT and DPAM in Zelzate, Belgium DPAM in Candiac, Canada DPAM in Uithoorn, The Netherlands CTDF in Hamilton, GSU in Kedzierzyn– Canada Kozle, Poland CPC plant in CPC plant in Purvis, Robinson, Mississippi Illinois CPC plant, FGD Blending facility and WH
Slide 7: Overview of Carbon Products
Overview of Carbon Products – 68% of Revenue and 79% of Adjusted EBITDA Primary Intermediates (Other Carbon Products) Calcined Petroleum Coke Coal Tar Pitch Creosote Oil Carbon Black Oil Naphthalene Oil % of Total 33% 20% 3% 8% 2% Revenue Calcined Petroleum Coke (2018) Key Raw Green Petr
Slide 8: Carbon Products – Industry Trend
Carbon Products – Industry Trend Calcined Petroleum Coke Coal Tar Pitch 7.9 34.0 34.0 CAGR 2018-2023 – 3.0% 7.8 CAGR 2018-2023 – 3.0% 7.7 33.2 33.3 7.6 32.3 32.4 7.5 7.4 31.5 31.5 7.3 7.2 30.0 30.1 7.0 6.8 6.9 29.1 29.1 29.4 29.4 6.7 6.7 6.6 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 202
Slide 9: Carbon Products - Market Update
Carbon Products - Market Update Primary Aluminium Production Growth in Thousand Metric Tons LME Inventory (Million Tons) vis-à-vis LME (000 US$ per ton) Not to Scale 6.0 2.5 2.4 (0.20%) 5.0 2.3 (3.69%) 2.2 4.0 2.1 Inventory (-3.59%) 2.0 LME (13.16%) (-2.02%) (-0.03%) 3.0 1.9 1.8 2.0 1.7 1.6 1.0 1.5
Slide 10: Carbon Products - Aluminium Market Update
Carbon Products - Aluminium Market Update • Downward trend of LME aluminium pricing during Q1 2019 expected to continue in medium-term • Current level of global inventory days of primary aluminium consumption in 2019 estimated to be lowest in decades • Weaker demand for aluminium during Q1 CY19 from
Slide 11: Carbon Products - Update on Petcoke Import Ban in India
Carbon Products - Update on Petcoke Import Ban in India • During Q1 2019, RAIN was allocated additional GPC of 33,680 tons from volumes surrendered by other calciners making total allocation of 287,019 tons for the Second-half of FY 2018-19. • 553,574 tons of GPC was allotted to the Company for FY 2
Slide 12: Carbon Products - Capacity Expansion under implementation
Carbon Products - Capacity Expansion under implementation Rotary Kiln Vertical Shaft Calciner Parameters Rotary Kiln Vertical Shaft Processing Time Less than 2 hours 24 - 48 hours Conversion Factor (In-Put to Out-Put Ratio) 1.35-1.40 1.25 -1.30 Density Low High Aluminum smelters need both grades of
Slide 13: Carbon Products - Capacity Expansion under implementation
Carbon Products - Capacity Expansion under implementation • Vertical Shaft Kiln (“VSK”) CPC Plant with a capacity of 370,000 Tons per annum is under construction in Andhra Pradesh Special Economic Zone in Visakhapantam. o All existing plants of CPC use Rotary Kiln technology. o VSK Plant produces di
Slide 14: Carbon Products - Key Performance Indicators
Carbon Products - Key Performance Indicators Average Revenue (₹ in billions) Average Adjusted EBITDA (₹ in billions) 79.5 78.2 15.4 9.5 10.6 40.7 CY 10-12 CY 13-15 CY 16-18 CY 10-12 CY 13-15 CY 16-18 • Decrease in revenues between CY 16-18, as compared to CY 13-15; is mainly due to fall in commodity
Slide 15: Overview of Advanced Materials
Overview of Advanced Materials - 25% of Revenue and 18% of Adjusted EBITDA Advanced Materials Petrochemical Naphthalene Engineered Resins Intermediates derivatives Products % of Total Revenue 5% 6% 10% 4% (2018) Key Raw Materials Crude Benzene Naphthalene Oil Carboindene Petro tar
Slide 16: Advanced Materials – Capacity Expansion under implementation
Advanced Materials – Capacity Expansion under implementation Hydrogenated Hydro Carbon Resins Project: • Construction work is progressing. • Estimated to commence the commercial operations from Q3 of CY19 Marketing of Product: • Product “Novares® Pure” launched in various Chemicals conferences. Hydr
Slide 17: Carbon and Advanced Materials – End-use in Automobiles
Carbon and Advanced Materials – End-use in Automobiles Today’s automobiles are highly reliant on our Carbon and Advanced Materials-based products. Calcined petroleum coke CARBORES® PETRORES® resins NOVARES® resins for anodes used in for refractory for lithium-ion for hot melt adhesives electrolytic
Slide 18: Advanced Materials - Key Performance Indicators
Advanced Materials - Key Performance Indicators Average Revenue (₹ in billions) Average Adjusted EBITDA (₹ in billions) 28.0 22.7 3.9 2.0 - - CY 10-12 CY 13-15 CY 16-18 CY 10-12 CY 13-15 CY 16-18 • Increase in revenues between CY 16-18, as compared CY 13-15; is due to shift in segments coupled with
Slide 19: Overview of Cement
Overview of Cement - 7% of Revenue and 3% of Adjusted EBITDA • Two integrated Cement plants; one each in Nalgonda, Kodad District, Telangana and Kurnool District, Andhra Pradesh along with a Packing Plant in Bellary, Karnataka. • Annual capacity of 4.0 Million Tons • Two Waste-heat recovery power pl
Slide 20: Cement – Update on Expansion Projects & Other Developments
Cement – Update on Expansion Projects & Other Developments Waste-heat Recovery Power Plant (4MW) in Kodad, Telangana: • Majority of construction and erection of equipment is completed. • Commercial operation date (COD) expected to be in June 2019. • Once operational, substantial savings from electri
Slide 21: Cement - Key Performance Indicators
Cement - Key Performance Indicators Average Revenue (₹ in billions) Average Adjusted EBITDA (₹ in billions) 9.8 1.4 9.1 0.9 0.9 8.3 CY 10-12 CY 13-15 CY 16-18 CY 10-12 CY 13-15 CY 16-18 • Increase in revenues between CY 16-18, as compared CY 13-15; is due to higher realizations coupled with increase
Slide 22: Consolidated Financial Performance (1/2)
Consolidated Financial Performance (1/2) Average Revenue (₹ in billions) Average Adjusted EBITDA (₹ in billions) 116.0 20.2 111.4 13.6 10.8 49.0 CY 10-12 CY 13-15 CY 16-18 CY 10-12 CY 13-15 CY 16-18 • Increase in revenues between CY 16-18, as compared CY 13-15; is mainly due to capacity Expansions a
Slide 23: Consolidated Financial Performance (2/2)
Consolidated Financial Performance (2/2) Average Adjusted Profit After Tax Average Free cash flow from operations (₹ in billions) (before CAPEX) (₹ in billions) 13.8 6.2 5.2 10.5 8.5 3.4 CY 10-12 CY 13-15 CY 16-18 CY 10-12 CY 13-15 CY 16-18 • There is a fall in “Average Adjusted Profit After Tax” du
Slide 24: Consolidated Financial Position
Consolidated Financial Position $ in Millions Mar.’19 Dec.’18 INR in Millions CY 2018 CY 2017 7.25% USD Bonds (due in April 2025) 550 550 Gross Debt (A) 77,795 73,323 Euro TLB (due in January 2025) 438 446 Net Debt (B) 69,283 63,897 Other Term Debt 63 64 Equity (C) 47,661 40,454 Gross Term Debt 1,05
Slide 25: RAIN – Key Business Strengths
RAIN – Key Business Strengths • Three business verticals (Carbon, Advanced Materials and Cement) • Global presence with 2.1 million tons p.a. calcination capacity, 1.0 million tons p.a. CPC blending capacity, 1.3 million tons p.a. coal tar distillation capacity, 0.7 million tons p.a. Advanced Materi
Slide 26: Appendix
Appendix
Slide 27: Financial Highlights – Last Years
Financial Highlights – Last 5 Years ₹140.5 ₹22.7 ₹21.5 Adj EBITDA (billions) To t a l As s e t s (bil l i o n s ) Revenue (billions) $ 2.27 $ 2.26 ₹121.4 ₹114.5 ₹104.5 ₹16.4 $ 2.14 ₹94.9 CAGR 4% ₹13.5 CAGR 15% ₹12.2 $ 2.02 CAGR 1% $ 1.92 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 20
Slide 28: Revenue by end-industry
Revenue by end-industry CY 2017 CY 2018 1% 1% 2% 2% 1% 1% 2% 2% 2% 2% 2% 2% 2% 2% 3% 3% 4% 3% 38% 4% 40% 5% 7% 6% 7% 8% 11% 11% 14% 12% Aluminum (38%) Construction (14%) Specialty Chemicals (11%) Aluminum (40%) Construction (12%) Specialty Chemicals (11%) Carbon black (7%) Graphite (6%) Coatings (5%
Slide 29: Revenue by Geography
Revenue by Geography CY 2017 CY 2018 4% 1% 3% 2% 7% 6% 11% 38% 39% 12% 15% 17% 21% 24% Europe (38%) Asia (excl. ME) (21%) Europe (39%) Asia (excl. ME) (24%) United States (US) (17%) N. America (excl. US) (12%) United States (US) (15%) N. America (excl. US) (11%) Middle East (ME) (7%) Africa (4%) Mid
Slide 30: Segment Wise Performance: Revenue and EBITDA Mix
Segment Wise Performance Advanced Advanced Materials Materials 28% Revenue Mix 25% 2017 2018 Carbon Carbon 63% 68% Cement Cement 7% 9% Advanced Advanced EBITDA Mix Materials Carbon Materials 18% 72% 2017 24% 2018 Carbon 79% Cement 3% Cement 4% 29
Slide 31: Thank You
Thank You REL