Chemplast Sanmar Limited · NSE:CHEMPLASTS
Chemplast Sanmar — H1 FY2022 Earnings Presentation
43 slides from Chemplast Sanmar's earnings presentation, October 2021
Slide 1: Chemplast Sanmar Ltd. Investor Presentation – October 2021
Chemplast Sanmar Ltd. Investor Presentation – October 2021
Slide 2: Safe Harbour
Safe Harbour Chemplast Sanmar Limited This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemplast Sanmar Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or
Slide 3: Company Overview
Company Overview
Slide 4: Chemplast Sanmar: Leading Chemical Manufacturer in India
Chemplast Sanmar: Leading Chemical Manufacturer in India… Chemplast Sanmar Limited #1 manufacturer resin in India of specialty paste PVC #1 manufacturer of S-PVC in South India and 2 largest in India nd (1) Leading player in custom manufacturing #1 manufacturer in South India of hydrogen peroxide Le
Slide 5: A Diversified Product Portfolio
… with a Diversified Product Portfolio Chemplast Sanmar Limited Chemplast Sanmar CCVL (1) Specialty Chemicals Non-Specialty Chemicals Suspension PVC Specialty Paste PVC resin Custom manufacturing Caustic soda Hydrogen Chloromethanes peroxide Irrigation Auto Agrochemicals End user Footwear upholstery
Slide 6: Specialty Paste PVC Resin
Specialty Paste PVC Resin Chemplast Sanmar Limited Industry Overview Company Overview 143 ktpa Indian demand 9.3% #1 manufacturer of specialty paste PVC resin in India FY20 (1) CAGR (FY21-25) (1) Domestic Imports 55% 45% 66 ktpa 35 ktpa Key growth drivers Installed capacity Planned capacity addition
Slide 7: Custom Manufacturing
Custom Manufacturing Chemplast Sanmar Limited Industry Overview Company Overview Leading player in custom manufacturing US$ 6.0 bn 9.1% Setting up a multipurpose Indian market size FY21 (1) 1,068 mtpa facility in stages CAGR (FY21-25) (1) Installed capacity (Blocks 1 & 2) at Berigai Key growth drive
Slide 8: Product – Non-Specialty Chemicals
Product – Non-Specialty Chemicals Chemplast Sanmar Limited Caustic Soda Hydrogen Peroxide Chloromethanes 3.5 mn mtpa 282 ktpa 510 ktpa Indian demand Indian demand 10.3% Indian Demand 10.1% 8.2% FY21 (1) FY21(1) CAGR (FY21-25) (1) FY21 (1) CAGR (FY21-25) (1) CAGR (FY21-25) (1) Industry Key growth dri
Slide 9: Suspension PVC (CCVL)
Suspension PVC (CCVL) Chemplast Sanmar Limited Industry Overview Company Overview 3,340 ktpa manufacturer of S-PVC in South India and 2nd largest in Indian demand in FY20(1) 7.7% CAGR (FY21-25) (1) #1 India 300 ktpa 31 ktpa Key growth drivers Debottlenecking is Installed capacity at Cuddalore underw
Slide 10: Sustainable Opportunity Across Products
Sustainable Opportunity Across Products Chemplast Sanmar Limited Entry barriers Global supply deficit Specialty Paste India is a net importer Rising demand from end user industries High PVC Import substitution opportunity Shortage of capable & reliable partner globally Custom India is a
Slide 11: Legacy of Over Five Decades
Legacy of Over Five Decades Chemplast Sanmar Limited CCVL became a wholly Commencement of Expansion of Marine terminal Capacity expansion: owned subsidiary of our manufacturing of PVC production capacity of facility and EDC Plant Paste PVC to 66,000 tpa at Mettur Company; resins at Mettur PVC resins
Slide 12: Chemplast Sanmar: Key Highlights
Chemplast Sanmar: Key Highlights Chemplast Sanmar Limited Leadership position across wide array of products; Growing end-use applications; Wide and stable customer base High entry barriers For Paste PVC, the company uses micro The custom manufacturing industry has significant entry barriers, - suspe
Slide 13: Organizational Capabilities
Organizational Capabilities
Slide 14: Quality Manufacturing Facilities
Quality Manufacturing Facilities Chemplast Sanmar Limited Chemplast Sanmar CCVL Location Mettur, Tamilnadu Berigai Tamilnadu Karaikal, Puducherry Cuddalore, Tamilnadu Paste PVC 66 ktpa Caustic Soda 67 ktpa Caustic soda Custom manufacturing Suspension PVC resin Capacity Hydrogen Peroxide 34 ktpa 1068
Slide 15: A High Degree of Backward Integration
… with a High Degree of Backward Integration Chemplast Sanmar Limited Mettur Plant Hydrogen Hydrogen Peroxide 34kt Caustic Imported Coal Methanol Soda 67 kt EDC Power Plant Electrolysis Paste PVC 48.5 MW VCM 70 kt 66 kt Chloromethanes Chlorine HCI HCI 35 kt Salt 400kt (Vedaranyam) Karaikal Plant Sta
Slide 16: Glance at Manufacturing Facilities
Glance at Manufacturing Facilities Chemplast Sanmar Limited Paste PVC plant, Chloromethanes plant, Custom manufacturing, Mettur, Tamilnadu Mettur, Tamilnadu Berigai , Tamilnadu Custom manufacturing, Caustic Soda manufacturing, Suspension PVC, Berigai , Tamilnadu Karaikal, Puducherry Cuddalore, Tamil
Slide 17: Strong Focus on Sustainability
Strong Focus on Sustainability Chemplast Sanmar Limited Environment Friendly Practices Health & Safety Measures Annual sustainability reports published for over a decade Zero liquid discharge policy Installation of speed Desalination plants at coastal control & safety systems facilities - avoi
Slide 18: Key Awards & Recognition
Key Awards & Recognition Chemplast Sanmar Limited Accreditations Key Awards FICCI Safety system Star Award from Excellence Award National Safety Council Sword of 2019 Honor Safety Safety British Safety Council 2020 ECOVADIS SILVER MEDAL Safety 5-Star Rating British Safety ICC’s FICCI Council “Certif
Slide 19: Leadership Team With Deep Domain Expertise (1/2)
Leadership Team With Deep Domain Expertise (1/2) Chemplast Sanmar Limited Vijay Sankar Chairman and Non-Executive Director • Industrialist with experience in managing several businesses • Past president of Indian Chemical Council • He is on the boards of companies such as The KCP Ltd, Oriental Hotel
Slide 20: Leadership Team With Deep Domain Expertise (2/2)
Leadership Team With Deep Domain Expertise (2/2) Chemplast Sanmar Limited Dr. Krishna Kumar Rangachari Ramkumar Shankar Executive Director - Custom Managing Director Manufactured Chemicals Division N Palanisamy S Gajendiran N Krishnamoorthy Senior Vice President Executive Vice President Executive Di
Slide 21: Eminent Board of Directors (1/2)
Eminent Board of Directors (1/2) Chemplast Sanmar Limited Vijay Sankar Ramkumar Shankar Chairman and Non-Executive Director Managing Director • Industrialist with experience in managing several businesses • Member of the CII National Committee on Chemicals and Petrochemicals • Past president of Indi
Slide 22: Eminent Board of Directors (2/2)
Eminent Board of Directors (2/2) Chemplast Sanmar Limited Aditya Jain Dr. Lakshmi Vijayakumar Independent Director Independent Director • Chairman and Editorial Director of International Market • Medical practitioner and honorary Assoc. Professor in the Assessment India University of Melbourne • MBA
Slide 23: Way Forward
Way Forward 23
Slide 24: Our Strategies
Our Strategies Chemplast Sanmar Limited Expansion of the production capacities Planning to add Paste PVC capacity to benefit from structural changes in the supply side dynamics and to cement leadership position in India Planning to expand custom manufacturing capabilities to leverage our chemist
Slide 25: Capex Plans
Capex Plans Chemplast Sanmar Limited Low cost future expansion leveraging existing land and infrastructure facilities 2025 Custom Manufacturing 2024 Setting up a multipurpose facility (block 1&2) in phases Paste PVC 2022 Planning to add 35 kt capacity at Cuddalore Suspension PVC resin Rs 340.0 cr Es
Slide 26: Financial Highlights
Financial Highlights
Slide 27: MD’s Message
MD’s Message Chemplast Sanmar Limited Suspension PVC, Paste PVC and Caustic Soda supply continues to be tight internationally. Supply has been affected due to weather- related issues (Hurricane IDA in the US, floods in Europe), and coal/natural gas shortages across the world. The Dual-Control policy
Slide 28: Segmentwise Volumes & Revenues – H1 & Q2 – FY ‘22
Segmentwise Volumes & Revenues – H1 & Q2 – FY ‘22 Chemplast Sanmar Limited In mt Sales Volume H1FY22 H1FY21 Q2FY22 Q2FY21 Specialty Chemicals 29,677 23,570 20,842 21,075 Non-Specialty Chemicals 66,633 44,212 37,851 26,667 Suspension PVC 146,180 126,115 93,155 74,672 Total Sales Volume 242,490 193,89
Slide 29: Performance Highlights – H1 & Q2 FY ‘22
Performance Highlights – H1 & Q2 FY ‘22 Chemplast Sanmar Limited In Rs. Cr Total Revenues EBITDA PAT 92% 17% 19% NA 7% Margin 2,633 118% 498 180 1,368 228 -114 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 Total Revenues EBITDA PAT 81% 25% 21% 49% NA 9% Margin 1,673 346 926 233 151 Q2FY21 Q2FY22 Q2FY21
Slide 30: Consolidated Profit & Loss Account (Proforma)
Consolidated Profit & Loss Account (Proforma) Chemplast Sanmar Limited Particulars (Rs. In cr) Q2 FY22 Q2 FY21 Y-o-Y H1 FY22 H1 FY21 Y-o-Y Revenue from Operations 1,673 926 81% 2,633 1,368 92% Cost of Goods Sold 1,077 501 1,675 812 Employee Cost 30 31 58 60 Other Expenses 220 160 403 269 EBITDA 346
Slide 31: Consolidated Balance Sheet (Proforma)
Consolidated Balance Sheet (Proforma) Chemplast Sanmar Limited ASSETS (Rs. in cr) Sep-21 Mar-21 EQUITY AND LIABILITIES (Rs. in cr) Sep-21 Mar-21 Non-Current Assets Equity a) Equity Share Capital 79 67 a) Property, Plant And Equipment 3,072 3,133 b) Other Equity 989 -451 b) Capital Work in Progress 3
Slide 32: H1 FY ‘22 Consolidated Cashflow Statement (Proforma)
H1 FY ‘22 Consolidated Cashflow Statement (Proforma) Chemplast Sanmar Limited Particulars (Rs. in cr.) Sep-21 Sep-20 Net Profit Before Tax 220 -171 Adjustments for: Non Cash Items / Other Investment or Financial Items 287 499 Operating profit before working capital changes 507 328 Changes in working
Slide 33: Standalone Profit & Loss Account
Standalone Profit & Loss Account Chemplast Sanmar Limited Particulars (Rs. In cr) Q2 FY22 Q2 FY21 Y-o-Y H1 FY22 H1 FY21 Y-o-Y Revenue from Operations 534 355 50% 846 468 81% Cost of Goods Sold 209 131 284 145 Employee Cost 20 21 39 39 Other Expenses 155 105 276 172 EBITDA 151 98 54% 247 113 119% EBI
Slide 34: Standalone Balance Sheet
Standalone Balance Sheet Chemplast Sanmar Limited ASSETS (Rs. in cr) Sep-21 Mar-21 EQUITY AND LIABILITIES (Rs. in cr) Sep-21 Mar-21 Non-Current Assets Equity a) Property, Plant And Equipment 2,048 2,088 a) Equity Share Capital 79 67 b) Capital Work in Progress 27 25 b) Other Equity 3,302 1,954 Total
Slide 35: H1 FY ‘22 – Standalone Cashflow Statement
H1 FY ‘22 – Standalone Cashflow Statement Chemplast Sanmar Limited Particulars (Rs. in cr.) Sep-21 Sep-20 Net Profit Before Tax 97 -55 Adjustments for: Non Cash Items / Other Investment or Financial Items 148 170 Operating profit before working capital changes 245 114 Changes in working capital -25
Slide 36: Use of Proceeds Update
Use of Proceeds Update Chemplast Sanmar Limited IPO Proceeds Offer for Sale (OFS) Rs. 3,850 cr Primary Issuance Rs. 2,550 cr Rs. 1,300 cr Out of the net proceeds of the OFS, received by the Selling Shareholders Sanmar Redeemed NCDs amounting to Rs. 1,238.25 crores, which was a part of Holdings Limit
Slide 37: Historical Performance
Historical Performance
Slide 38: Segmentwise Volumes & Revenues
Segmentwise Volumes & Revenues Chemplast Sanmar Limited In mt Sales Volume H1FY22 FY21 FY20 Specialty Chemicals 29,677 63,231 64,739 Non-Specialty Chemicals 66,633 104,874 119,863 Suspension PVC 146,180 273,296 271,300 Total Sales Volume 242,490 441,401 455,902 In Rs. Cr Total Revenue H1FY22 FY21 FY
Slide 39: Consolidated Profit & Loss Account (Proforma)
Consolidated Profit & Loss Account (Proforma) Chemplast Sanmar Limited Particulars (Rs. In cr) FY21 FY20 Y-o-Y Revenue from Operations 3,799 3,123 22% Cost of Goods Sold 2,230 1,933 Employee Cost 114 118 Other Expenses 601 671 EBITDA 855 400 113% EBITDA Margin 22.5% 12.8% Other income 16 19 Deprecia
Slide 40: Consolidated Balance Sheet (Proforma)
Consolidated Balance Sheet (Proforma) Chemplast Sanmar Limited ASSETS (Rs. in cr) Mar-21 Mar-20 EQUITY AND LIABILITIES (Rs. in cr) Mar-21 Mar-20 Non-Current Assets Equity a) Property, Plant And Equipment 3,133 3,232 a) Equity Share Capital 67 67 b) Capital Work in Progress 25 13 b) Other Equity -451
Slide 41: Consolidated Cashflow Statement (Proforma)
Consolidated Cashflow Statement (Proforma) Chemplast Sanmar Limited Particulars (Rs. in cr.) Mar-21 Mar-20 Net Profit Before Tax 563 9 Adjustments for: Non Cash Items / Other Investment or Financial Items 526 303 Operating profit before working capital changes 1,089 312 Changes in working capital 48
Slide 42: Historical Performance Highlights
Historical Performance Highlights Chemplast Sanmar Limited In Rs. Cr Revenues EBITDA 13% 23% 19% Margin 3,799 855 # 3,123 2,633 498 400 FY20 FY21 H1FY22 FY20 FY21 H1FY22 PAT Net - Debt 11% 7% 410 ++ 2,060 1,459 180 -47 ++ -195 FY20 FY21 H1FY22 FY20 FY21 H1FY22 # Excludes positive impact on account o
Slide 43: Thank You
Thank You Strategic Growth Advisors Pvt. Ltd. Chemplast Sanmar Ltd. CIN - U74140MH2010PTC204285 CIN- U24230TN1985PLC011637 Ms. Shikha Puri / Mr. Shrikant Sangani N Muralidharan – Chief Financial Officer Email - shikha.puri@sgapl.net/ shrikant.sangani@sgapl.net nm3@sanmargroup.com +91 9819282743 / +9