Jubilant Ingrevia Ltd. · NSE:JUBLINGREA
Jubilant Ingrevia — Monarch Healthcare & Chemicals Day 2021
59 slides from Jubilant Ingrevia's conference presentation, Aug 16, 2021
Slide 1: Intimation of Investor/Analyst Meeting
August 16, 2021 BSE Limited National Stock Exchange of India Limited P. J. Towers Exchange Plaza Dalal Street, Bandra Kurla Complex Mumbai - 400 001 Bandra (E), Mumbai - 400 051 Dear Sirs, Sub.: Intimation of Investor/ Analyst Meeting Pursuant to the provisions of Regulation 30 of the Securities and
Slide 2: Investors participating in the e-Conference
The following investors shall be participating in the e-Conference: 1. JM Financials MF 2. Mahindra Manulife 3. L&T MF 4. InCred AMC 5. Invesco AMC 6. Quest Investment Advisors 7. Sundaram MF 8. Alchemy AMC 9. PGIM India MF 10. SBI MF 11. Canara HSBC 12. Roha AMC 13. Nine Rivers Capital 14. Abbakus
Slide 3: Investor Presentation August 2021
Investor Presentation August 2021
Slide 4: Disclaimer
Disclaimer Disclaimer Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential product characteristics and uses, product sales potential and tar
Slide 5: Business Segments & Integrated Operations
Jubilant Ingrevia: Business Segments & Integrated Operations Integrated Operations… Vertical integration across the value chain enables cost competitive advantage Nutrition & For Vitamin B3 (Niacinamide & Niacin), Life Science 100% in-house sourcing of Beta Picoline Speciality Nutrition & Health H
Slide 6: Financial Highlights (Pro-forma): Improvement in all Key Financial Parameters
Financial Highlights (Pro-forma2) : Improvement in all Key Financial Parameters Financial Highlights ₹ 1,145 Cr. ₹ 287 Cr. 25.1% ₹ 168 Cr. 14.7% ₹ 10.6 Sales EBITDA EBITDA (%) PAT PAT (%) EPS Q1’FY22 55% YoY 126% YoY 786 bps 220% YoY 756 bps 220% YoY Highlights ₹ 737 Cr. ₹ 127 Cr. 17.3% ₹ 53 Cr. 7.1
Slide 7: Glorious Four Decades of Growth
Glorious Four Decades of Growth 2019: Started new Acetic Anhydride plant, Bharuch SEZ, GJ (50 KTA) 10+ years experience 2018: Started Agro Intermediate plant (800 TPA), Bharuch SEZ in Vitamin B3, 2017: Certified for Responsible Care (RC) Demerger into 2021 Our Journey 20+ years in Vitamin 2015: Comm
Slide 8: Strong Presence in Industry Value Chain
Strong Presence in Industry Value Chain CDMO Services Commercial Scale Clinical Phase Manufacturing Intermediates / Discovery Process Development API Formulation Phase I / II / III Custom Manufacturing • Route Design, Process • Phase III: 4 Intermediates for Anti-Viral Jubilant Ingrevia’ s familiari
Slide 9: Presence in Large & Growing Markets
1 Presence in Large & Growing Markets1 Global API Global CDMO Market Global CDMO – By Region Global Speciality Chemicals 5.8% CAGR (2020E) US$ Bn. US$ Bn. 9.1% CAGR US$ Bn. 6.4% CAGR Others 857 1168 187 248 180 279 11-15% Speciality 2020 E 2020 E 2025 P 2020 E 2025 P India 2025 P Chemicals 7-8% Indi
Slide 10: Key Highlights & Differentiators
Jubilant Ingrevia: Key Highlights & Differentiators 1 Leading Market Positions Across Business Lines, with High Barriers to entry 2 Diverse & De-risked Business Model State-of-the-art Research Development & Technology (RDT) with Strong 3 Product Pipeline Global Competitive Edge through Integrated Op
Slide 11: Leading Market Positions Across Business Lines, with High Entry Barriers
1 Leading Market Positions Across Business Lines, with High Entry Barriers Highlights Entry Barriers Portfolio of ~70 products Globally lowest cost producer of Pyridine – Beta & all Amongst top 2 in Pyridine - Beta globally value added products Speciality #1 in 11 Pyridine Derivatives global
Slide 12: Diverse & De-risked Business Model
2A Diverse & De-risked Business Model De-risked business model benefits from its diversified product offerings, product sourcing capabilities as well as a broad customer base with a world class manufacturing and global marketing footprint Presence across geographic locations enables us to serve
Slide 13: Diverse Applications
2B Diverse Applications Pharmaceuticals Nutrition APIs Animal Nutrition Human Nutrition Nutraceuticals Energy Drinks Premixes Agrochemicals Consumer Herbicides, Insecticides, Fungicides Industrial Cosmetics Anti-microbial Mouthwashes Paints Print & Packaging Fuel Blending Solvent 11
Slide 14: State-of-the-art RDT with Strong Product Pipeline
3 State-of-the-art Research Development & Technology (RDT) with Strong Product Pipeline Key Highlights 90 highly qualified scientists (~20 PhDs) 3 RDT centers in Noida, Gajraula and Bharuch Dedicated Project Management team to address enquiries, with a customer centric approach 35 Key techno
Slide 15: Global Competitive Edge through Best in Class Manufacturing
4a Global Competitive Edge through Best in Class Manufacturing Supported by Five Manufacturing Sites Select Certifications Gajraula Bharuch Nira Samlaya Ambernath Responsible Care RC 14001:2015 ISO 9001:2015 ISO 22000:2005 ISO 14001:2015 ISO 45001:2018 FSSAI
Slide 16: Manufacturing Capabilities & Operational Excellence
4b Manufacturing Capabilities & Operational Excellence World Class GMP facility Temperature, Humidity & Differential Pressure Controlled Areas ISO-8 (Class 100,000) clean rooms for Speciality Chemicals, CDMO and Nutrition & Health ingredients Powder Processing Area with quarantine Clean Rooms
Slide 17: Compliance with Environmentally Responsible and Sustainable Operations
5a Strict Adherence to Compliance with Environmentally Responsible and Sustainable Operations Compliance Tracking of 3,800+ compliance items under various legislations ‘EY’ Conformity tool: Web-based automated compliance management system Real Time MIS, Review & Reporting: by the Senior Manage
Slide 18: Business Excellence
5b Business Excellence We create a culture of excellence to enhance Process, People & System capabilities Our Design Excellence Operational Excellence Customer Excellence Approach Quality by Design (QbD) Lean Management & Six Sigma Stage Gate deployment & • Strengthen development capability by • Rem
Slide 19: Focus on Digital Transformation to Enhance Business Performance
6 Focus on Digital Transformation to Enhance Business Performance Digital transformation journey started in 2018 with an objective to improve Operational efficiency improvements, Business & Supply chain processes improvement and enhancing customer experience and engagement Every project we consi
Slide 20: Highly Qualified, Experienced and Dedicated Management Team
7 Highly Qualified, Experienced and Dedicated Management Team Shyam S Bhartia Hari S Bhartia Chairman Co-Chairman 42 years of industry 40 years of industry experience experience Rajesh Srivastava Anant Pande Prakash Bisht Anil Khubchandani Chief Executive Officer & President & President & President
Slide 21: Global Trends
Global Trends 1. Global customers continue to explore possibilities of shifting their sourcing from higher cost countries to India, to remain competitive. 2. Customers are looking for diversifying their supply chain from China to have a reliable alternate second source. They find India as most poten
Slide 22: Growth Drivers for Investment Decisions
Jubilant Ingrevia - Growth Drivers for Investment Decisions Customer Demand Geographic Strong Customer Forward Integration Expansion Relationship Growing customer Continuously move- Deep and long Geographical demand up the value chain in standing relationship expansion of market existing pro
Slide 23: Speciality Chemicals
JUBUANT INGRI Speciality Chemicals
Slide 24: Speciality Chemicals - Industry Overview
Speciality Chemicals - Industry Overview Global Market Size: Speciality Chemicals1 India Market Size: Speciality Chemicals1 US$ 857 Bn CAGR 6.4% US$ 1168 Bn US$ 36 Bn CAGR 12.4% US$ 64 Bn (2020 E) (2025 P) (2020 E) (2025 P) 4% Global Share Key Trends Global Market - By Segment1 (2020) Agrochemical
Slide 25: Speciality Chemicals - Business Overview
Speciality Chemicals - Business Overview Overview Globally we have the largest range of products in Pyridines, Picolines & It’s derivatives (~70 products) Globally amongst top 2 in Pyridine-Beta, Globally #1 in 11 Pyridine Derivatives We are the largest in revenue from Pyridine, Picolines & It
Slide 26: CDMO - Customized Solutions for Pharma and Agro Industry
CDMO - Customized Solutions for Pharma and Agro Industry To be the Partner of Choice for our customer by building innovative, knowledge based solutions through Speed, Vision efficiency, open communication & respect for intellectual property, society & environment Process Development Clinical Phase M
Slide 27: CDMO – Our Value Offering
CDMO – Our Value Offering Process Clinical Phase Commercial Value Chain Development Manufacturing Manufacturing Route Design; Pilot Plant/Kilo Lab ~22 Reactors (20L - 1KL), MPP with ~ 100+ (1 - 16 KL) reactors (MSGL, Process familiarization & Optimization; MSGL, SS, Cryo , PFR, (Operating temp -80 t
Slide 28: Speciality Chemicals – Applications
Speciality Chemicals – Applications Select Products Application Lutidines & Collidines Pharma: Esomeprazole, Lansoprazole and other prazoles (anti-Ulcer), Etoricoxib (anti-inflammatory) Pharma: Dabigatran (anti-coagulant / blood thinner), Pirfenidone (Idiopathic pulmonary fibrosis), Risperidone (ant
Slide 29: Speciality Chemicals - Growth Strategy Going Forward
Speciality Chemicals - Growth Strategy Going Forward Growth Driver/ Opportunity Proposed Investment Forward integration of our Ketene capability and growing Invest in new facility for launch of 6 Diketene derivatives. demand of Diketene derivatives Subsequently, add 8 value-added Diketene deriva
Slide 30: Nutrition & Health Solutions
Nutrition & Health Solutions 28
Slide 31: Nutrition & Health Solutions - Industry Overview (Vitamin B3)
Nutrition & Health Solutions - Industry Overview (Vitamin B3) Global Market Size: Vitamin B31 Global Market of Vitamin B3- By Region2 (2020E) CAGR 2.5% 4% 5% 388 Americas 380 Europe 16% (US$Mn) 372 34% 365 China 358 351 SE & FE Asia 17% RoW India FY 20 E FY 21 P FY 22 P FY 23 P FY 24 P FY 25 P 24% K
Slide 32: Nutrition & Health Solutions - Business Overview
Nutrition & Health Solutions - Business Overview Overview Globally #1 producer of Niacinamide and amongst Global top 2 manufacturers of Vitamin B3 India’s largest manufacturer of Vitamin B4 (Choline Chloride) Providing nutrition solutions by offering 34 products (~18 branded speciality product
Slide 33: Applications of Vitamin B3
Nutrition & Health Solutions – Applications of Vitamin B3 Hair Care Cosmetics Animal Feed Pet Food Nutraceuticals Feed Grade Pharma Grade Cosmetic Grade Food Fortification Weight Supplements Energy Drinks Breakfast Cereal Food Grade 31
Slide 34: Animal Nutrition & Health Solution - Key Offerings
Animal Nutrition & Health Solution - Key Offerings Animal Nutrition & Health Solutions Poultry Dairy Aqua Liver Protection Solutions Milk Enhancer Solutions Gut Health Solutions Better Meat Quality Anti-Stress Solutions Feed Efficiency Solutions Anti-Stress Solutions Milk Quality Solutions Transitio
Slide 35: Human Nutrition & Health Solutions - Key Offerings
Human Nutrition & Health Solutions - Key Offerings Human Nutrition & Health Solutions Premix Ingredients Antioxidants We have a strategic partner to offer high quality nutrient premixes & blends Nutritional Premixes: Imported & contract manufactured portfolio Ingredients: Imported & Traded Portf
Slide 36: Nutrition & Health Solutions - Growth Strategy Going Forward
Nutrition & Health Solutions - Growth Strategy Going Forward Growth Driver/ Opportunity Proposed Investment Expand Vitamin B3 capacity by ~20% from current 13,000 We are the lowest cost producer and fully backward MT/ Year and launch various value-added grades of integrated Vitamin B3 Expandin
Slide 37: Life Science Chemicals
JUBILANT INGREVIA Life Science Chemicals
Slide 38: Life Science Chemicals - Industry Overview
Life Science Chemicals - Industry Overview Global Merchant Market Size: Acetic Anhydride2 Global Market Size: Ethyl Acetate3 CAGR 4.5% CAGR 3.6% 772 4318 4513 744 3955 4133 3622 3785 718 (US$Mn) (US$Mn) 693 669 645 FY 20 E FY 21 P FY 22 P FY 23 P FY 24 P FY 25 P FY 19 FY 20 P FY 21 P FY 22 P FY 23 P
Slide 39: Life Science Chemicals - Business Overview
Life Science Chemicals - Business Overview Overview Globally among top 2 merchant sellers of Acetic Anhydride and Propionic Anhydride in merchant market Domestic market leader in Acetic Anhydride and Ethyl Acetate since last 4 decades World’s largest manufacturer of Bio-Acetaldehyde Among le
Slide 40: Life Science Chemicals – Applications
Life Science Chemicals – Applications Pharmaceuticals Artificial Sweeteners Flexible Packaging Modified Starch Vitamins Polyimide Films Cellulose Acetate Aromatics and Fragrances Triacetin Paints & Coatings Wood Acetylation Polyacetal Spandex 38
Slide 41: Life Science Chemicals - Growth Strategy Going Forward
Life Science Chemicals - Growth Strategy Going Forward Growth Driver/ Opportunity Proposed Investment Invest in another Acetic Anhydride facility to increase Growing demand capacity by ~35% and further strengthen global No new facility globally leadership Customers are exploring to shift fro
Slide 42: Financials
JUBUANT INGREVIA Financials
Slide 43: Jubilant Ingrevia – Q1'FY22 Financial Highlights
Jubilant Ingrevia – Q1'FY22 Financial Highlights Particulars1 Q1'FY212 Q1'FY22 YoY (%) • Revenue grew by 55% on YoY basis, driven by robust growth in volume and prices. Revenue • Speciality Chemicals revenue grew by 18% YoY driven by volume growth across Speciality Chemicals 257 305 18% product segm
Slide 44: Debt Profile – Q1 FY22
Debt Profile – Q1 FY22 Particulars1 31/Mar/21 30/Jun/21 Long Term Borrowings 456 227 Short Term Borrowings 92 230 Total 548 457 Cash & Equivalent 117 70 Net Debt 431 386 QoQ change - -10% Gross Debt reduction of Rs 91 Crore in Q1’FY 22. Net Debt reduction of Rs 45 Crore in Q1’FY22. Net Debt to
Slide 45: Business outlook
Business outlook Our businesses remain strong and during the year we expect to deliver better performance over last year. The Input prices continue to increase and the efforts to pass on the increases are being made continuously Our ongoing Diketene Capex is as per schedule, and it will be com
Slide 46: Income Statement – Q1 FY22
Income Statement – Q1 FY22 Particulars1 Q1'FY212 Q1'FY22 YoY (%) Total Revenue from Operations 737 1,145 55% Speciality Chemicals 257 305 18% Nutrition & Health Solutions 148 167 13% Life Science Chemicals 331 673 103% Total Expenditure 614 863 (41%) Other Income 4 6 Segment EBITDA Speciality Chemic
Slide 47: Appendix
: Ww - JUBUANT INGREVIA — Appendix 45
Slide 48: Demerger Rationale- Explained
Demerger Rationale- Explained Effective 1st February 2021, Life Science Ingredients business of Jubilant Life Sciences demerged to Jubilant Ingrevia Limited. • Demerger will facilitate in creating a simple structure with two separate pure-play entities Simplified Corporate Structure • Greater operat
Slide 49: Pre-Demerger Org Structure
Pre-Demerger | Organisation & Business Structure Pre-Demerger Org Structure Life Science Jubilant Life Sciences Limited Ingredients Business (Listed on NSE & BSE) At holding Company Level Jubilant Pharma Limited Jubilant Biosys Limited Jubilant Therapeutics Limited Jubilant Life Sciences Limited (JL
Slide 50: Post-Demerger Org Structure
Post-Demerger | Organisation & Business Structure Jubilant Ingrevia Limited Jubilant Pharmova Limited Jubilant Life Post-Demerger Org Structure Sciences Limited renamed as Carved out Life Science Jubilant Pharmova 100% Ingredients business to be housed Limited on Feb 1, in a separate entity named Ju
Slide 51: Financial Performance – Historical (Pro-forma)
Financial Performance – Historical (Pro-forma2) Revenue from Operations EBITDA 13% 18% 3,179 3,491 627 48% 50% (Rs Crore) (Rs Crore) 17% 18% 409 35% 32% FY20 FY21 FY20 9M'FY21 Specialty Chemicals Nutrition & Health Solutions Life Science Chemicals Margin % Speciality Chemicals and Nutrition and He
Slide 52: Debt Profile – Declining Leverage (Pro-forma)
Debt Profile – Declining Leverage (Pro-forma2) Leverage Net Debt to EBITDA Net Debt to Equity Consistent reduction in Net Debt to EBITDA 2.5 (Rs Crore) 1,295 ( x. Times ) ( x. Times ) 0.22 1,025 548 0.7 431 FY20 FY21 FY20 FY21 FY21 Gross Debt Net Debt Net Debt/EBITDA Net Debt/Equity Significant de
Slide 53: Balance Sheet – Key Parameters/Ratios (Pro-Forma)
Balance Sheet – Key Parameters/Ratios (Pro-Forma2) Return On Capital Employed (RoCE) Return on Equity Asset / Turnover and Return On Asset (RoA) 1.8x 2.0x 20.2% 16.4% 9.4% (%age) 12.0% (%age) 6.6% FY20 FY21 FY21 FY20 FY21 ROCE % Return on Equity Asset / Turnover ROA % Net Working Capital Operating C
Slide 54: FY21 Financial Highlights (Pro-forma)
Jubilant Ingrevia Limited – FY21 Financial Highlights (Pro-forma2) Particulars1 FY20 FY21 YoY (%) • Revenue grew by 10% on YoY basis, driven by growth in volume Revenue Speciality Chemicals 1,104 1,124 2% and pricing together. Nutrition & Health Solutions 537 630 17% • Speciality Chemicals revenue g
Slide 55: Pro-Forma Income Statement Consolidated – Q4'FY21
Pro-Forma Income Statement Consolidated – Q4’FY21 (1 month of discontinued operation of LSI segment of Jubilant Pharmova Limited and 2 months of Jubilant Ingrevia Limited ) 1 Month 2 Month Particulars Q4 FY20 Q4 FY21 YoY (%) Q4FY21 Q4FY21 Revenue from operations a) Sales/Income from operations 810 3
Slide 56: Pro-Forma Income Statement Consolidated – FY21
Pro-Forma Income Statement Consolidated – FY21 (10 months discontinued operation of LSI segment of Jubilant Pharmova Limited and 2 months Jubilant Ingrevia Limited ) 10M'FY21 2M'FY21 Particulars1 FY20 FY21 YoY (%) Apr'20 to Jan'21 Feb'21 to Mar'21 Revenue from operations a) Sales/Income from operati
Slide 57: Combined Income Statement – Q4 & FY21 (Pro-Forma)
Combined Income Statement – Q4 & FY21 (Pro-Forma2) Particulars1 Q4'FY20 Q4'FY21 YoY (%) FY20 FY21 YoY (%) Total Revenue from Operations 823 1,078 31% 3,179 3,491 10% Speciality Chemicals 282 329 17% 1,104 1,124 2% Nutrition & Health Solutions 163 199 22% 537 630 17% Life Science Chemicals 377 549 46
Slide 58: Our Vision, Values, Promise and Philosophy
Our Vision, Values, Promise and Philosophy OUR PHILOSOPHY Caring Sharing Growing 56
Slide 59: For More Information
For More Information For Investors: Siddharth Rangnekar CDR India Pavleen Taneja Ph: +91 22 6645 1209 Ph: +91 120 436 1021 E-mail: siddharth@cdr-india.com E-mail: pavleen.taneja@jubl.com For Media: Clayton Dsouza Sudhakar Safaya Madison Public Relations Ph: +91 120 436 1034 E-mail: clayton.dsouza@ma
Jubilant Ingrevia — Monarch Healthcare & Chemicals Day 2021 on 6ix