Styrenix Performance Materials Ltd · NSE:STYRENIX
Styrenix Performance Materials — INEOS Styrolution India — Investor Presentation (March 2022)
34 slides from Styrenix Performance Materials's investor presentation, Mar 22, 2022
Slide 1: Cover letter to stock exchanges on investor calls
INECS INEOS Styrolution India Ltd. 5th Floor. Ohm Hc use-I I. STYROLUTION Ohm Business Park. subhanpurs, V adoda ra 200 023 — OLilaral. Fn(ta , iI1sossiirlII!iklOi Ildi a.coIfl March 22, 2022 To BSE Limited National Stock Exchange of India Limited Dept. DSC CAD Exchange Praza. Phirozo Joajeeblioy lo
Slide 2: INEOS Styrolution India Limited At a Glance
INEOS STYROLUTION INDIA LIMITED AT A GLANCE Company presentation March 2022
Slide 3: Disclaimer
Disclaimer IMPORTANT: You must read the following Disclaimer before continuing. • This presentation has been prepared by INEOS Styrolution India Ltd. (the “Company”) solely for information purposes and does not purport to contain all the information that the recipient may require. Recipients should
Slide 4: Disclaimer
Disclaimer • This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, o
Slide 5: Disclaimer
Disclaimer • The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates or associates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liabili
Slide 6: Unmatched in a growing industry
INEOS Styrolution India Limited: Unmatched in a growing industry India’s Market Leader in ABS plastics and leading player for Polystyrene • An experienced leader with unmatched background in styrenics plastics • No.1 producer of ABS (Absolac®) and SAN (Absolan®) in India, serving a well- diversified
Slide 7: About INEOS Styrolution India Limited
About INEOS Styrolution India Limited INEOS Styrolution India Limited is leading producer of Styrenics resin in India. Total Income (INR mn) Profit before tax and Shareholding pattern exceptional item (INR mn) 0.32% 19.60% 3.06% 2.02% 6,402 2,165 5,954 5,135 4,591 1,184 1,206 75% 734 Jan-Mar Apr-Jun
Slide 8: Contents
Contents Company portrait: Who we are Product portfolio: What we offer Markets: How we serve our customers Assets: Our footprint in India Performance: Sales, Profitability and Balance Sheet 7
Slide 9: Contents: Company portrait
Contents Company portrait: Who we are An experienced leader with unmatched background in styrenics plastics 8
Slide 10: INEOS, one of the Top Tier Chemical Companies in the World
INEOS, one of the Top Tier Chemical Companies in the World INEOS Styrolution India Limited is part of the INEOS Styrolution business under the umbrella of INEOS, one of the largest chemical companies in the world Annual revenues INEOS has $61bn 90+ 26,000 Employees years of experience in styrenics a
Slide 11: INEOS Styrolution at a glance
INEOS Styrolution at a glance 10
Slide 12: Experienced Management Guided by Global Parent
Experienced Management Guided by Global Parent Name & Designation Brief Overview of Profile • Over 30 years in multinationals like GE, SABIC & INEOS Sanjiv • Country Head for SABIC Innovative Plastics India before joining INEOS Styrolution India Limited in 2016 Vasudeva MD & CEO • Completed his Chem
Slide 13: Contents: Product portfolio
Contents Product portfolio: What we offer No.1 producer of ABS and SAN plastics in India, serving a well-diversified range of attractive applications 12
Slide 14: Our products: ABS and SAN
Our products: ABS and SAN ABSOLAC® Acrylonitrile butadiene styrene (ABS) plastics resin • Aesthetic, colorful surfaces and excellent paintability • Easy processing, good impact strength and heat resistance, high adhesion strength required for electroplating, good mechanical strength and chemical res
Slide 15: Our products: Polystyrene
Our products: Polystyrene STYROLUTION® PS General Purpose Polystyrene (GPPS) • Transparent polymers suitable for injection molding and extrusion applications. • Uses for these products vary from food service and food packaging to refrigerator components, healthcare and diagnostic and lab ware as wel
Slide 16: Contents: Markets
Contents Markets: How we serve our customers Long-established relationships with Tier 1 customers in attractive markets on a stable growth trajectory 15
Slide 17: Significant growth potential for plastics in India
Significant growth potential for plastics in India Indian Plastics Industry growth Growth of plastics consumption Per Capita consumption (kg) vs. GDP growth KTA GDP Growth 18,450 108 ~USD 73 Bn Polymer Consumption Growth 15,500 Industry 14.6% 12.9% 2x 10.9%10.6%~10.0% 56 6,800 31 30 5.8% 4,200 8.7%
Slide 18: Product Segments and Applications
Product Segments and Applications Product FY21 Net Sales % End Use Application examples • Automobile • Household ABS – Absolac® • Consumer Brand Electronics • Toys, Sports & Specialties Others Approx. 70% • Household • Consumer SAN – Absolan® Electronics Brand • Packaging • Toys and General Injectio
Slide 19: ABS demand on a growth trajectory
ABS demand on a growth trajectory Demand (kt) CAGR (FY20 -22): 6.6% Demand CAGR (FY14-20): 7.7% 267 250 235 235 224 205 183 166 151 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21E FY22E FY = fiscal year ABS India market share estimates: INEOS Styrolution India Domestic Competitor Imports 25-35% 15-25% 40-5
Slide 20: Strong growth drivers for ABS
Strong growth drivers for ABS. Automotive most important industry Market Break-up by End Industry for ABS • Generally, ABS demand has grown and is expected to grow at or above Auto Household Electronics Construction Healthcare GDP • Demand recovery and strong growth in automotive and home appliances
Slide 21: PS demand on a growth trajectory
PS demand on a growth trajectory Demand (kt) CAGR (FY20 -22): 5.2% Demand CAGR (FY14-20): 3.1% 289 274 261 252 262 260 261 232 217 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21E FY22E FY = fiscal year PS India market share estimates: INEOS Styrolution India Domestic Competitors Imports Approx. 20% 60-70%
Slide 22: Growth drivers for PS
Growth drivers for PS Packaging most important industry Market Break-up by End Industry for PS • Key end markets for Polystyrene growing well in India, supported by Packaging Household demand for durables (home Electronics Stationary & TSLO appliances) Construction Healthcare • Packaging form a sign
Slide 23: Contents: Assets
Contents Assets: Our footprint in India Well-located assets with global safety standards and a strong safety record 22
Slide 24: Asset Locations
Asset Locations Gujarat Katol Moxi Nandesari Delhi Dahej Vadodara (HQ) Mumbai Pune ABS Polystyrene Bangalore Chennai Sales Team 23
Slide 25: Strong Footprint of Manufacturing Facilities in India
Strong Footprint of Manufacturing Facilities in India ABS Production Network (100kt/a capacity) Expanded in 2019 ABS Compounding ABS Rubber and R&D Centre Nandesari Moxi Expanded in 2014 GPPS SAN HIPS Katol Dahej Polystyrene Site (78kt/a capacity) • Global standards of safety, health & environmental
Slide 26: Safety, Health and Environment (SHE)
Safety, Health and Environment (SHE) – The number one priority INEOS SHE principles rigorously implemented • INEOS Behavioural and Process Safety Principles INEOS Group: • Life Saving Rules Guidelines and Principles • INEOS Group Guide Notes • Safety, Health & Environmental targets INEOS Styrolution
Slide 27: Consistently outstanding safety record
Consistently outstanding safety record Total Case Incident Rate (TCIR)* 1.5 1.4 1 0.5 0.1 0.14 0.05 0.07 0 2018 2019 2020 2021 INEOS Styrolution India Limited (Own Employees + Contractors) Plastics Manufacturing Industry Average** Site Last recordable on date*** Days without recordable*** Katol 3-De
Slide 28: State of the Art R&D Center at Moxi
State of the Art Research & Development (R&D) Center at Moxi Moxi Color Excellence and R&D center Established in 1996 Supports process optimization, coloring, application and new product development, customer relations and core R&D programs. • Unique product innovation capabilities with world class
Slide 29: Contents: Performance
Contents Performance: Sales, Profitability and Balance Sheet Profitability with a very robust balance sheet 28
Slide 30: Sales and Profit Headline overview
Sales and Profit Headline overview Total Income (INR mn) Profit before tax and exceptional item (INR mn) 3,761 21,037 19,576 3,125 15,858 16,445 15,680 1,031 245 -185 FY18 FY19 FY20 FY21 Q1-3 FY18 FY19 FY20 FY21 Q1-3 FY22 FY22 Source: Audited financial statements. 1H 2022 limited review, unaudited 2
Slide 31: Resilient Cash Flow and strong Balance Sheet
Sales and Profit Resilient Cash Flow and strong Balance Sheet Net working capital Net CF from operating activities (INR mn) 3,519 3,644 3,712 3,441 2,914 3,019 1,990 23% 1,638 17% 19% 15% 16% -277 FY18 FY19 FY20 FY21 1H 2022 NWC (INR mn) NWC (% of revenue) FY18 FY19 FY20 FY21 • Robust operating cash
Slide 32: Unmatched in a growing industry
INEOS Styrolution India Limited: Unmatched in a growing industry India’s Market Leader in ABS plastics and leading player for Polystyrene • An experienced leader with unmatched background in styrenics plastics • No.1 producer of ABS (Absolac®) and SAN (Absolan®) in India, serving a well- diversified
Slide 33: For more information visit www.ineos-styrolution.com
For more information visit www.ineos-styrolution.com
Slide 34: Robust and resilient
INEOS Styrolution India Limited: Robust and resilient An Indian business with strong market diversification and a track record of serving customers well, even in challenging times • Business has demonstrated resilience in crises (strong profitability and robust cash flow during COVID) • We have no d
INEOS Styrolution India — Investor Presentation (March 2022) on 6ix