Bil Vyapar Ltd · NSE:BILVYAPAR
Bil Vyapar — Binani Cement — Investor Presentation (January 2008)
21 slides from Bil Vyapar's investor presentation, January 2008
Slide 1: Binani Cement Limited Investor Presentation
Binani Cement Limited Investor Presentation January 2008
Slide 2: Disclaimer
Disclaimer This presentation contains statements that constitute “forward looking statements” including, without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Binani Cement Limited’s (“the Company’s” or “BCL’s” )future business devel
Slide 3: Company Summary
Company Summary History: Founded (1996), IPO (2007) Antecedents: Flagship company of the Braj Binani Group (founded in 1872) with interest also in Zinc, Glass Fibre and Composites. Ownership: Binani Industries Limited (64.9%), JP Morgan (14.9%); Credit Suisse (9.1%), Others (11.1%) Capacity: 4.5mtpa
Slide 4: Investment Highlights
Investment Highlights Play on investment boom in emerging markets Binani—A pan-Asia growth play Robust operations/financial 3
Slide 5: Investment Highlights
Investment Highlights Play on investment boom in emerging markets Binani—A pan-Asia growth play Robust operations/financial 4
Slide 6: Strong Tailwind for Cement Industry in Emerging Markets
Strong Tailwind for Cement Industry in Emerging Markets Markets Key drivers Experiencing a strong investment cycle(1), encompassing India ¾ Infrastructure (c. $500bn targeted by government over FY08-12) ¾ Industrial capex (c. $300-350bn over FY08-11) ¾ Real estate (3.4bn sq ft of annual constructi
Slide 7: Growth Trends – India Capacity Utilisation
Growth Trends – India India’s per capita cement consumption of 106 kg p.a. significantly lower than world average of 260 kg p.a. India: Cement Capacity & Production India: Capacity & Demand Growth 180 166 100% 12.0% 152 157 155 160 146 10.1% 142 95% 10.0% 140 126 94% 118 8.1% Capacity Utilisation
Slide 8: China Cement Sector
China Cement Sector Cement production in China Since 1980s, China has been the world’s largest cement producer 1,400 The PRC cement industry is localized and very 1,240 fragmented. Currently there are over 5,000 1,200 % cement producing entities 13.4 1,062 = NDRC issued the Cement Industrial Dev
Slide 9: China Cement Sector: Future growth drivers
China Cement Sector Future growth drivers With continuing economic development, property construction and Fundamental demand fixed asset investment in infrastructure will continue to drive in construction cement demand Closure of small kilns NDRC plans to shut down around 130m tonnes of small ve
Slide 10: Investment Highlights
Investment Highlights Play on investment boom in emerging markets Binani—A pan-Asia growth play Robust operations/financial 9
Slide 11: Binani – Unique Pan-Asia Growth Play
Binani – Unique Pan-Asia Growth Play Shandong Binani Rongan Cement Company 0.5mtpa clinker and 0.3mtpa cement grinding unit limestone reserves of 148m tonne India-Binanigram Plant 4.5mtpa with an additional 1.5mtpa by Mar-08, integrated cement facility in Rajasthan Key Milestones.. Year 1997 1998 20
Slide 12: Product Profile
Product Profile Production Mix 3.0 OPC is used for general construction purposes such as building 2.43 2.5 2.31 roads, high-rise buildings and bridges, while PPC is more 2.20 2.24 2.11 durable and therefore used for mass concreting, such as in the Production in mtpa 2.0 0.34 0.48 0.64 construction
Slide 13: Investment Highlights
Investment Highlights Play on investment boom in emerging markets Binani—A pan-Asia growth play Robust operations/financial 12
Slide 14: Consistently Improving Operating Efficiency
Consistently Improving Operating Efficiency Power Consumption Power consumption at about 75 KW per ton in FY2007 Consumption per tonne of cement KWh ¾ Captive plant meets 70-75% of the demand Contribution from CPP KWh 100 ¾ Use of high quality imported coal blended with lignite have 78 77 77 73 75
Slide 15: Financial Parameters
Financial Parameters Production Sales 3.00 200 2.43 170.0 2.50 2.20 2.24 2.31 150 122.1 2.00 109.5 102.3 mmtpa 1.31 93.7 US$ 1.50 100 1.00 50 0.50 0.00 0 FY2004 FY2005 FY2006 FY2007 H1 FY08 FY2004 FY2005 FY2006 FY2007 H1 FY08 Realisation/ton 100 76.8 80 70.6 48.9 52.1 60 42.8 US$ 40 20 0 FY2004 FY20
Slide 16: Financial Parameters
Financial Parameters Total Income Interest US$ US$ 15 14.0 180 170.0 13.0 160 12 140 123.3 110.0 8.6 8.2 120 102.3 9 94.8 100 80 6 4.5 60 40 3 20 0 0 FY2004 FY2005 FY2006 FY2007 H1 FY08 FY2004 FY2005 FY2006 FY2007 H1 FY08 Source: Company Source: Company EBITDA & EBITDA % to Total Income PAT & PAT% t
Slide 17: Financial Parameters
Financial Parameters Debt/Equity Debt/EBITDA 3 6 5.1 2.3 2.3 2.3 1.9 5 4.2 4.2 2 4 3.0 3 1 2 1 0 0 FY2004 FY2005 FY2006 FY2007 FY2004 FY2005 FY2006 FY2007 EBITDA/Interest 8 7.0 7 6 5 3.8 4 3 1.7 1.9 2 1 0 FY2004 FY2005 FY2006 FY2007 16
Slide 18: Recent Developments
Recent Developments BCL enters into the Chinese and Global Markets In August 2007, BCL acquired 70% stake with management control in M/s.Krishna Holdings Pte, Singapore which holds 70% in Shandong Binani Rongan Cement Company Limited. 30% is held by M/s.Shandong Rongan Group Company Limited. Shand
Slide 19: Expansion Plan
Expansion Plan Expansion project includes increasing production capacity from 2.25mtpa to 6mtpa to be completed by Mar 2008 Commercial production of clinker commenced in Oct 2007 First grinding unit of expansion project started commercial production from Dec 2007 The second split grinding mi
Slide 20: Key Management
Key Management Mr. Vinod Juneja M.Com, LLB, Phd, with 33 years of experience in commercial, development & private sector banking Dy MD, Binani Group of Industries Mr M K Chattopadhyaya Bachelor of Commerce (Honours), LLB, FCA, FCS. Has over 25 years of experience in Accounts, Finance, Chief Fina
Slide 21: Thank You
Thank You