Himatsingka Seide Limited. · NSE:HIMATSEIDE
Himatsingka Seide — B&K Annual Investor Conference - Trinity India 2017
22 slides from Himatsingka Seide's conference presentation, Jun 6, 2017
Slide 1: Regulation 30 disclosure of investor conference
Himatsingka Seide Limited 10/24, Kumara Krupa Road, High Grounds, Bangalore - 560 001, India. Ref: SEC:0001:2:0917:KGN June 6, 2017 Bombay Stock Exchange Ltd National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, 5" Floor, Plot No. C/1 Dalal Street G Block, Bandra-Kurla Compl
Slide 2: Investor Presentation May 2017
LEADING BRANDS POWER OF INTEGRATION VERTICAL MANUFACTURING INVESTOR PRESENTATION May, 2017
Slide 3: Safe Harbour Disclaimer
SAFE HARBOUR DISCLAIMER This presentation may contain statements about events and expectations that may be “forward looking,” including those relating to general business plans and strategy of Himatsingka Seide Limited (“HSL"), its future outlook and growth prospects, and future developments in its
Slide 4: The Himatsingka Model
THE HIMATSINGKA MODEL
Slide 5: Group Structure
GROUP STRUCTURE PROMOTERS 57.2% HIMATSINGKA SEIDE, INDIA 100% 49% 100% 100% HIMATSINGKA WOVENS, INDIA TWILL & OXFORD, UAE HIMATSINGKA HOLDINGS, NA HIMATSINGKA EUROPE LTD, UK 100% 100% HIMATSINGKA AMERICA, USA GIUSEPPE BELLORA, ITY MANUFACTURING BUSINESSES / PARENT RETAIL & DISTRIBUTION BUSINESSES 4
Slide 6: The Himatsingka Model
THE HIMATSINGKA MODEL MANUFACTURING DISTRIBUTION B TO C INTERFACE HIMATSINGKA SEIDE HIMATSINGKA AMERICA (FURNISHING DIVISION) (NORTH AMERICA) RETAILERS HIMATSINGKA LINENS GIUSEPPE BELLORA (SHEETING DIVISION) (EUROPE) OWN STORES HIMATSINGKA TERRY HIMATSINGKA WOVENS (TOWEL DIVISION) (ASIA & INDIA) HIM
Slide 7: Manufacturing Business – The New Platforms
MANUFACTURING BUSINESS – THE NEW PLATFORMS SHEETING 46 MMPA SPINNING* INTEGRATED TERRY** 211,584 MANUFACTURING SOLUTIONS 25,000 TPA SPINDLES DRAPERY & UPHOLSTERY 2 MMPA • BROWNFIELD EXPANSION OF SHEETING FACILITY COMMENCED OPERATIONS IN OCTOBER, 2016. • * SPINNING FACILITY IS UNDER CONSTRUCTION AND
Slide 8: Distribution Business – Driven by Brands
DISTRIBUTION BUSINESS – DRIVEN BY BRANDS EUROPE • REVENUES FROM BRANDS CROSSED RS 1,200 CRORE IN FY17 • OVER 10 BRANDS IN PROTFOLIO, HOWEVER, GOING FORWARD FOCUSING ON LARGER BRANDS IN THE PORTFOLIO • BRANDS WILL ENHANCE QUALITY OF REVENUE STREAMS, SUSTAINABILITY AND INCREASE RELATIVE PRICING POWER
Slide 9: Strong Client Profile
STRONG CLIENT PROFILE GLOBAL REACH 7,000 POINTS OF SALE 8
Slide 10: The Himatsingka Edge
THE HIMATSINGKA EDGE PROVEN TRACK RECORD ROBUST CLIENT POWER OF BASE & DEEP INTEGRATION RELATIONSHIPS FIRST TO IMPLEMENT DNA TAGGING ACROSS COTTON VALUE CHAIN STRONG TOP 5 PLAYER INTELLECTUAL ACROSS OUR PROPERTY BUSINESSES PORTFOLIO GLOBALLY WORLD CLASS MANUFACTURING STRONG CORE CAPABILITIES VALUES
Slide 11: Group Challenges & Risks Mitigation
GROUP CHALLENGES & RISKS MARKET PRICING POWER FOREIGN EXCHANGE RAW MATERIALS CONCENTRATION Cotton is predominant raw All Manufacturing material and RISK North America Product category has revenues for export therefore there is an concentration at low pricing power markets subject to underline exposu
Slide 12: Industry Overview
INDUSTRY OVERVIEW
Slide 13: Industry Overview – Opportunities for Growth
INDUSTRY OVERVIEW – OPPORTUNITIES FOR GROWTH GLOBAL TEXTILE & APPAREL TRADE IS ESTIMATED TO GROW AT 4.5% – 5.0%, LIKELY TO TOUCH USD 1 TRILLION BY 2020. 530 Billion 756 Billion 1 Trillion 2006 2015 2021 World Textile & Apparel Trade (in USD billion) (Source: International Trade Statistics 2015, WTO)
Slide 14: Industry Overview – Opportunities for Growth
INDUSTRY OVERVIEW – OPPORTUNITIES FOR GROWTH 2016 2021 INDUSTRY TEXTILE INDIAN 137 Billion 223 Billion EXPORTS 40 Billion 82 Billion DOMESTIC 97 Billion 141 Billion CAGR 4.5% INDUSTRY TEXTILE GLOBAL HOME 142 Billion 177 Billion 2015 2020 Source: OTEXA, Industry Sources 13
Slide 15: Key Financials
KEY FINANCIALS
Slide 16: Key Statistics – Improving Operating Performance
KEY STATISTICS – IMPROVING OPERATING PERFORMANCE TOTAL REVENUE (Rs. Crs / CAGR 5 Yrs (%)) EBITDA* (Rs. Crs / CAGR 5 Yrs (%)) 2,138 391 2,028 1,943 1,891 1,689 314 1,429 222 205 167 148 +8.39% +21.44% 11-12 12-13 13-14 14-15 15-16 16-17 11-12 12-13 13-14 14-15 15-16 16-17 EBIT (Rs. Crs / CAGR 5 Yrs (
Slide 17: Key Statistics – Improving Consolidated Margin Profile
KEY STATISTICS – IMPROVING CONSOLIDATED MARGIN PROFILE EBITDA* MARGIN EBIT MARGIN 18.3% 16.6% 15.6% 13.1% 11.4% 10.4% 9.9% 10.1% 9.1% 6.8% 7.4% 6.4% 11-12 12-13 13-14 14-15 15-16 16-17 11-12 12-13 13-14 14-15 15-16 16-17 PBT MARGIN PAT MARGIN 11.2% 8.5% 6.6% 8.1% 4.9% 4.7% 3.4% 3.1% 3.1% 3.1% 3.1% 2
Slide 18: Key Statistics – Leverage Ratios
KEY STATISTICS – LEVERAGE RATIOS NET DEBT / EQUITY (X) INTEREST COVERAGE RATIO 1.21 3.6 1.11 1.08 1.09 2.8 0.91 0.84 2.07 1.74 1.76 1.82 11-12 12-13 13-14 14-15 15-16 16-17 11-12 12-13 13-14 14-15 15-16 16-17 DEBT SERVICE COVERAGE RATIO NET DEBT / EBITDA 4.67 2.09 4.21 1.88 3.93 3.29 2.65 2.58 1.09
Slide 19: Key Statistics – Return Ratios
KEY STATISTICS – RETURN RATIOS RETURN ON CAPITAL EMPLOYED (RoCE) “Focused on 15.3% 14.2% 11.4% 10.4% 8.8% 7.3% sweating 11-12 12-13 13-14 14-15 15-16 16-17 assets” RETURN ON EQUITY (ROE) 17.8% 14.0% 12.3% 9.5% 9.1% 6.0% 11-12 12-13 13-14 14-15 15-16 16-17 18
Slide 20: Focus Areas for FY18
FOCUS AREAS FOR FY 18 • Capacity of Sheeting Plant increased from 23 MMPA to 46 MMPA. Focus on placing further capacities. • Commenced construction of the captive spinning facility at Hassan; on schedule for Q3 FY18 commercial production • Construction of Terry Towel Plant to commence in FY 18. • Wi
Slide 21: Shareholding Snapshot
SHAREHOLDING SNAPSHOT SHAREHOLDING PATTERN AS ON MARCH 31, 2017 MAJOR INSTITUTIONAL INVESTORS Corporate Others DSP BlackRock MF 5.10% 4% 1% Sundaram MF 3.16% Retail 20% Franklin MF 2.15% Jupiter 1.89% FIIs 7% Promoters 57% Invesco 1.23% DIIs 11% L&T MF 0.96% Others 4.08% 20
Slide 22: Thank You
THANK YOU For more information please contact: Sachin Garg AVP– Finance (Treasury and Investor Relations) Himatsingka Seide Ltd. Phone: +91-80-42578000 Email: investors@himatsingka.com http://himatsingka.com/ 21
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