Prism Johnson Limited · NSE:PRSMJOHNSN
Prism Johnson — Prism Cement — Investor Presentation (April 2016)
36 slides from Prism Johnson's investor presentation, Apr 14, 2016
Slide 1: Intimation to stock exchanges of investor meeting
PRISM CEMENT LIMITED “Rahejas”, Main Avenue, V.P Road, Santacruz (W}, Mumbai - 400 054. EAU VERS 1s Tel.: +9 1-22-6675 4142 / 43 Fax ; 2600 1304 CEMENT website : www.prismcement.com April 14, 2016 The National Stock Exchange of India Ltd., | The Bombay Stock Exchange, Exchange Plaza, Bandra-Kurla Co
Slide 2: May, 2015
May, 2015
Slide 3: Integrated Building Materials Company
Integrated Building Materials Company Cement (Champion) Cement (OPC) Cement (Hi Tech) Ready-mixed Concrete Aggregates Manufactured Sand Tiles (Ceramic, Vitrified, Industrial) Sanitaryware, Faucets, and Bath Fittings Modular Kitchens Construction Chemicals 2
Slide 4: Business Environment
Business Environment The Company to benefit in medium term from strong tailwinds due to following key initiatives: Initiative Cement RMC TBK Goods and Services Tax Make in India Swachch Bharat Abhiyaan 100 Smart Cities Industrial Corridors Roads 3
Slide 5: Divisional Split: FY 2015
Divisional Split: FY 2015 RMC 20% Cement 41% Total Sales: ` 6,117 crores HRJ ($ 971 Mn) 39% RMC 9% HRJ 23% Total EBITDA: ` 335 crores Ce ment ($ 53 Mn) 68% 4 All Conso numbers excluding RQBE US$ 1 = ` 63
Slide 6: Prism Cement
PRISM CEMENT
Slide 7: Cement - Overview
Cement - Overview 2 Modern Plants (set-up in 1997 and 2010) in Satna, MP, Central India Effective Capacity: 7 mn tons cement and clinker Superior Capital Employed: < US$ 35 / Ton Cluster demand growth > 1.5x national Chattisga Bihar rh 2% No new capacities in 20% Road progress in Cluster East UP 36%
Slide 8: Cement - Overview
Cement - Overview 81% Trade Sales. Primarily Non Trade 19% caters to rural and tier 2 & 3 city Housing Wide network of over 3,800 dealers & ~ 90 stocking points Trade 81% Healthy receivables. FY 15 debtors: < 1 day OPC 3% HiTech 3% Launched premium cement Hi-Tech in Bihar and recently in UP Superior
Slide 9: EBITDA / Ton trend
EBITDA / Ton trend 1,400 1,229 Vol: 5.6 MT (Up 10%) 1,200 1,000 New Blending Silo 741 Pet Coke 800 600 501 407 400 339 249 200 173 0 2009 2010 2011 2012 2013 2014 2015 ROCE: 63% Subdued Markets Blending Silo Re-construction Low Capacity Utilization (Capacity increased from 3 MTPA to 7 MTPA) 8
Slide 10: Cement - Expansion
Cement - Expansion Green-field plant to come up in Kurnool District, Andhra Pradesh: Cement Capacity: 4.8 MTPA ~ 3,000 acres of land acquired Large limestone reserves secured; Mine development activities in progress Bengaluru, Chennai, and Hyderabad within 300 KMs radius from the Site 9
Slide 11: Mix with the Best
Mix with the Best
Slide 12: Ready-mixed Concrete
Ready-mixed Concrete Ready-mixed concrete is strategic route to market for cement Modern channel of cement distribution As markets mature, higher value in Ready-mixed concrete business and aggregates as compared to cement 11
Slide 13: Ready-mixed Concrete Industry
Ready-mixed Concrete Industry Started in mid-90s; Penetration increasing ~ 10% of total cement used for concrete in India is sold through RMC Channel Metros / tier 1 (~35%) and tier 2 (~20%) In developed countries: 50% - 70% Several benefits such as assured quality, speed, saving of site space, redu
Slide 14: RMC Readymix (India)
RMC Readymix (India) 2nd largest player in India with national footprint 81 Plants in 35 cities / towns Backward Integration: 8 Plants Aggregates and Manufactured Sand 1400 1200 1000 03 12 Sales CAGR: 39% 800 Flattish for last 3 years, on 600 400 account of subdued economy 200 Demand drivers: Urbani
Slide 15: RMC Performance
RMC Performance 60 56 56 7.0% 5.9% 49 6.0% 50 6.1% 4.9% 40 40 5.0% 40 3.4% 30 4.0% 30 2.4% 2.5% 3.0% 20 2.0% 10 1.0% 0 0.0% 2010 2011 2012 2013 2014 2015 Subdued Economy Extra Cautious on Debtors Management Capacity Utilization dropped to 40% 14
Slide 16: RMC Dynamics
RMC Dynamics EBITDA Margins: 3 7% Asset Turns: > 6x Capital Employed: ` 198 crores ($ 31 Mn) Sales: ` 1,226 crores (@ 40% utilization) ($ 195 Mn) Industry Structure Barriers to Entry: Location and permission in cities ~ 60% unorganized. GST implementation would shift the market towards organized sec
Slide 17: H & R Johnson
EI JOHNSON REDEFININS LIFESTYLES, WORLDWIDE.
Slide 18: H & R Johnson (India)
H & R Johnson (India) Set-up in 1958; Pioneer of Ceramic tiles in India Wide range: Tiles, Sanitary ware, Bath fittings, Modular Kitchens, Construction Chemicals 11 Manufacturing Plants (Own & JVs) with largest capacity of over 54 mn m2 / annum Strong brand equity Proje Large, national Trade cts net
Slide 19: HRJ: Business Model
HRJ: Business Model House of Johnson chain of Retail Outlets 28 across the country Selling complete range of products Contributes ~10% of Division s total sales Manufacturing Joint Ventures Asset Light business model 5 Manufacturing JVs contributing to 65% of the capacity Gujarat: 3 AP: 2 18
Slide 20: HRJ: Business Model
HRJ: Business Model • Built complimentary businesses to leverage Brand and Distribution 50% Stake in Ardex Endura JV Sanitaryware , Sunrise industry with Ardex, Taps, Bath High growth Germany Fittings, wellness potential R&D Driven products Offers complete Pioneer in tile Healthy industry range of f
Slide 21: HRJ: Financial Trend
HRJ: Financial Trend 03 12 Sales CAGR: 17% Flattish in FY 13 and 14: 2500 2000 40% of total capacity in AP 1500 & Karnataka which suffered 1000 on account of power and 500 fuel unavailability 0 03 04 05 06 07 08 09 10 11 12 1 3 14 15 EBITDA (Conso) declined till FY 14: 200 176 FY 10: ` 176 crores (1
Slide 22: HRJ: Key Initiatives
HRJ: Key Initiatives Addressed Power and Fuel issues in South by: Installing 3 Coal Gassifiers in 2 Plants in AP Winning bids for onshore micro Gas wells in AP Natural Gas pipeline connectivity completed for Karnataka plant Started purchasing Traded power Further strengthening Brand leadership Scali
Slide 23: Strategic Investment
Strategic Investment
Slide 24: 74% stake in Raheja QBE General Insurance
74% stake in Raheja QBE General Insurance JV with QBE Group of Australia Focus on Speciality products like Liability insurance, Marine liability and Trade Credit Prism s investment: ` 153 crores ($ 24 Mn) FY 15 financials: Gross written premium: ` 29 crores ($ 5 Mn) Profit before tax: ` 17 crores ($
Slide 25: Management Profile
Management Profile
Slide 26: Management Profile
Management Profile Mr. Vijay Aggarwal, 46 years, Managing Director B. Tech (Elec.) from IIT, Delhi and PGDM from IIM, Ahmedabad Tenure in Company: 21 years Past experience includes SBI Capital Markets On the Board of various companies including Exide Industries, Aptech, Asianet Satellite Communicati
Slide 27: Management Profile
Management Profile Mr. Ganesh Kaskar, 55 years, Executive Director HRJ M. Tech (Civil) from IIT, Mumbai Tenure in Company: 18 years Past experience includes ACC and Tata Consulting Engineers Mr. Venugopal M Panicker, 50 years, Executive Director RMC Chartered Accountant, Company Secretary and a Memb
Slide 28: Other Information
Other Information Borrowings Shareholding
Slide 29: Borrowings
Borrowings Borrowings Status (As on 31.03.2015) Consolidated: ` 2,236 crores ($ 355 Mn) Stand-alone: ` 1,895 crores ($ 301 Mn) Average cost of Debt: 11 % Replacing expensive bank borrowings with NCDs in a phased manner Short-term rating enhanced from A2 to A1 and for Term Loan / NCD from A- (Negativ
Slide 30: Shareholding
Shareholding Market Cap (As on 13.05.2015): ` 5,099 crores ($ 809 Mn) Shareholding Pattern (As on 31.03.2015) Non Inst Domestic 9.8% Inst 7.8% Foreign Inst 7.5% Promoters 74.9% Public category holding over 1% of total shares Shareholder % HDFC Trustee Company Ltd - HDFC Equity Fund 2.7 Goldman Sachs
Slide 31: Thank You
THANK YOU For further information, please contact: Aditya Bob Mahendru / Munzal Shah investorrelations@prismcement.com +91 22 6675 4142-46 Disclaimer Cautionary statement regarding forward looking statements This presentation may contain certain forward looking statements relating to the future busi
Slide 32: Investor Update: Q3 FY16 financial overview
Investor Update February 11, 2016 Prism Cement Limited today announced un-audited standalone financial results for the quarter ended December 31, 2015 Financial Overview (Un-audited for the quarter ended December 31, 2015) (Figures in Crores unless mentioned otherwise) Particulars Q3 ’15-16 Q2 ’15-1
Slide 33: Performance Review and key developments
Performance Review and key developments The quarter ended December 2015 saw improvement in Cement EBIDTA at `479/ton as compared to `209/ton in the corresponding quarter in FY15, an increase of 129%, despite lower realizations and slowdown of demand in the market. This reflects the benefits of cost
Slide 34: Industry Scenario / Future Outlook
Industry Scenario / Future Outlook India is the fastest growing economy in the world, with a falling repo rate cycle, CAD, budget deficit and inflation. We expect that considering the positive macro economic indicators, taken together with clear policy initiatives, the economic cycle is expected to
Slide 35: About Prism Cement and H & R Johnson
Prism Cement Prism Cement commenced production at its Unit I in August, 1997 and scaled up capacity with Unit II in December, 2010. It manufactures Portland Pozzolana Cement (PPC) with the brand name 'Champion' and premium quality grade of cement under ‘HI-TECH’ and ‘DURATECH’ brand. Prism Cement ha
Slide 36: For additional information, please contact
For additional information, please contact: Mr. Munzal Shah Prism Cement Limited Tel: (D) +91-22-6104 2229 / (B) 91-22-6675 4142-46 Email: investorrelations@prismcement.com Website: www.prismcement.com Address: “Rahejas”, Main Avenue, V. P. Road Santacruz (W), Mumbai—400 054 Safe Harbor Certain stat