Sumitomo Chemical India Ltd. · NSE:SUMICHEM
Sumitomo Chemical India — Q2 FY2023 Earnings Presentation
46 slides from Sumitomo Chemical India's earnings presentation, Oct 29, 2022
Slide 1: Cover letter to stock exchanges
SCIL/SEC/2022 29th October, 2022 To, BSE Limited, The National Stock Exchange of Listing Department, India Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex Mumbai-400001 Bandra East, Mumbai - 400 051 Dear Sirs, Sub: Investor Presentation on Financial
Slide 2: Sumitomo Chemical India Limited Investor Presentation October 2022
Sumitomo Chemical India Limited Investor Presentation October 2022
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sumitomo Chemical India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Financial Performance & Key Highlights
Financial Performance & Key Highlights 3
Slide 5: Performance Highlights – Quarter & YTD
Performance Highlights – Quarter & YTD Revenue (Rs Crs) Gross Profit (Rs. Crs) & EBITDA (Rs. Crs) & PAT (Rs Crs) Gross Profit Margin (%) EBITDA Margin (%) +20% +30% +31% +23% 425 278 202 1,122 355 910 215 154 39.0% 37.9% 23.6% 24.8% 16.9% 18.0% Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23
Slide 6: Performance Highlights – H1FY23
Performance Highlights – H1FY23 Key Highlights New Product Launches ✓ The country overall received 7% more rains than the long-term average during the 2022 June- September monsoon season, however, overall trends of monsoon spread was erratic Company launched 3 unique proprietary 9(3) products – Sumi
Slide 7: Consolidated Profit & Loss Account Statement – Quarter & YTD
Consolidated Profit & Loss Account Statement – Quarter & YTD Particulars (Rs. Crs) Q2 FY23 Q2 FY22 YoY Q1 FY23 QoQ H1FY23 H1FY22 YoY Revenue from Operations 1,121.7 910.4 23% 985.5 14% 2,107.2 1,692.4 25% COGS 696.7 555.5 639.2 1,335.9 1,055.2 Gross Profit 424.9 354.8 20% 346.4 23% 771.3 637.2 21% G
Slide 8: Revenue Breakup – YTD
Revenue Breakup – YTD Product Breakup Geographic Breakup 6% 6% 5% 6% 1% 2% 0% 2% 0% 10% 9% 3% 3% 1% 1% 3% 3% 4% 7% 7% 42% 41% H1FY22 H1FY23 H1FY22 H1FY23 10% 11% 85% 81% 24% 27% Insecticides PGR Fungicides Domestic Japan Europe North America Herbicides Metal Phosphides AND & EHD* Africa Asia (Ex. In
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs) Sep-22 Mar-22 Equity & Liabilities (Rs. Crs) Sep-22 Mar-22 Non-Current Assets (A) 590.2 487.6 EQUITY (A) 2,219.7 1,927.2 Property, Plant and Equipment 379.3 349.6 Equity Share Capital 499.1 499.1 Capital work-in-progress 22.5 21.1 Other Equity 1,720.6 1428
Slide 10: Consolidated Working Capital Movement
Consolidated Working Capital Movement Change Change Change Particulars (Rs. Crs) Sep-22* Jun-22* (Sep-22 to Mar-22* (Sep-22 to Sep-21* (Sep-22 to Jun-22) Mar-22) Sep-21) Inventory (A) 818.2 957.8 -139.6 937.8 -119.6 650.4 167.8 Inventory Days (Inventories/ COGS* No. of days in period) (i) 110 136 17
Slide 11: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement (Rs. Crs) Year ended 30-Sep-22 Year ended 30-Sep-21 Net Profit Before Tax 451.6 351.9 Adjustments for: Non-Cash Items / Other Investment or Financial Items 34.5 23.0 Operating profit before working capital changes 486.1 375.0 Changes in working ca
Slide 12: Sumitomo Chemical Company Limited, Japan - An Overview
Sumitomo Chemical Company Limited, Japan - An Overview
Slide 13: Overview of our Parent Company
Overview of our Parent Company About Sumitomo ✓ Sumitomo started business in Japan in early 16th Century (400 years+) ✓ Currently several Sumitomo founded companies operate as independent listed companies with widespread shareholding and run by its professional boards ✓ Even today, all Sumitomo comp
Slide 14: Sumitomo Chemical India Ltd. - Company Overview
Sumitomo Chemical India Ltd. - Company Overview Journey to 13x Growth Formidable Player in the Indian SCIL - Vision & Mission in India Agrochemicals Space Diversified & De-risked Portfolio Strong Brand and Well- Strategically Located Across the Agro-Chem Value Entrenched Distribution Manufacturing F
Slide 15: SCIL - Vision & Mission
SCIL - Vision & Mission Vision & Values Mission Vision: Marketing and Sales: • To be a trusted market leader in Indian crop- • Further penetration into Indian market & take protection sector leadership; expand exports • To develop a vibrant corporate culture • Strengthen Sales Force, Distribution an
Slide 16: Journey to 13x Growth in India in last 12 years
Journey to 13x Growth in India in last 12 years Exploration Phase: 2000 – 2010 Manufacturing JV with New Acquired product - 2000 Chemi 2002 Started EHD (Public Health) 2005 ‘Sulfosulfuron’ Leader 2010 business rights from Monsanto Started Animal Nutrition SCIL incorporated in India as 2001 Started A
Slide 17: Key Products
Formidable Player in the Indian Agrochemicals Space 5 200+ 700+ Grown 13X+* over FY11-22 Manufacturing Brands SKUs Rs. Bn Facilities 13X 30.6 14 25+ / 200+ Technical Actives Patents / Registrations 16,000+ 1,750+ Direct Distributors Employees & 60+ Depots Product Name Product Category Indicative Use
Slide 18: Diversified & De-risked Portfolio Across the Agro-Chem Value Chain
Diversified & De-risked Portfolio Across the Agro-Chem Value Chain Well-Diversified across multiple dimensions Business Products Geographies Customers Crops Served Segments Diversified Portfolio Across Segments Geographic Diversification with Exports to over 60 countries Generics Speciality 7% 2% 2%
Slide 19: Strong Brand and Well-Entrenched Distribution Network
Strong Brand and Well-Entrenched Distribution Network ✓ Strong brand with market leading position across various product categories ✓ Dual brand portfolio can offer products at all price points serving multiple 23 States 60+ Depots customer sub-segments ✓ In-depth knowledge of own research products,
Slide 20: Expanding Brand Visibility and Connect
Expanding Brand Visibility and Connect ✓ Wide range of generics and speciality products for Increased crop presence and providing crop protection solutions ✓ More than 1,500+ Relationship managers connecting to 4.4 million+ farmers throughout crop cycle ✓ Over 200 brands covering maximum of crops an
Slide 21: Digital Marketing Initiatives
Digital Marketing Initiatives Develop “Digital Marketing” as a parallel support to Traditional marketing system leading to improved sales. YouTube - Advantage ✓ Our Digital Assets : 23 websites, engaged with 17.2 million consumers in 2021-22. More than 31,000 subscribers http://www.danitolindia.com/
Slide 22: Digital transformation & SAP Implementation
Digital transformation & SAP Implementation Earlier SCIL was using different SAP platforms in different parts of business. From April 2021, SCIL has completed implementation of an integrated SAP SH4 HANA system across the entity including several additional modules Common SAP system across the entit
Slide 23: Strategically Located Manufacturing Facilities
Strategically Located Manufacturing Facilities Connectivity to Major Cities and Proximity to Main Highways, Ports Reduces Logistic Time and Costs Plant Location Area (acres) Segment Served Product Manufactured Manufacturing of Technical Grade Pesticides Technical Grade Products: Bhavnagar ~58 Chlorp
Slide 24: Capex Plans
Capex Plans Regular Capex Additional Capex Research & Development Rs. 70-75 crore p.a. Rs. 120 crore over 2 years for 5 products Indian R&D team is working on manufacturing several off-patent products for Domestic as well as To manufacture additional proprietary technical Exports to global affiliate
Slide 25: Strong Focus on R&D and Process Innovation
Strong Focus on R&D and Process Innovation End-to-End Product Development Capabilities ✓ 3 fully equipped, DSIR approved R&D labs located at Mumbai, Bhavnagar and Gajod capable of synthesis, technical product and formulation development ✓ R&D Team comprises of 75+ qualified and dedicated engineers &
Slide 26: Thrust on Safety, Health and Environment (SHE)
Thrust on Safety, Health and Environment (SHE) Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites Abiding by SCC Japan’s EHS Policies ISO:9001:2015, ISO-14001:2015 and OHSAS18001:2007 for the manufacturing sites at Bhavnagar, Gajod, Tarapu
Slide 27: Awards & Accolades
Awards & Accolades Jamnalal Bajaj Award for “Fair Business and Practices” Shramveer award for improvement of product efficiency received from national level Delhi First ever president’s gold shield for import substitution Vishwakarma Rashtriya Puraskar received for process development First award fo
Slide 28: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Dr. Mukul Govindji Asher Preeti Gautam Mehta Chairman and Independent Director Independent Non-executive Director ▪ Professorial Fellow at Lee Kuan Yew School of Public Policy at ▪ 30 years of experience in corporate laws, foreign investment the Nationa
Slide 29: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Hiroyoshi Mukai Tadashi Katayama Masanori Uzawa Non-executive Director Non-executive Director Non-executive Director ▪ MBA from University of Virginia, USA and ▪ MBA from Vanderbilt University, U.S.A. a Bachelor’s degree from the University ▪ Associated
Slide 30: Growth Strategies
Growth Strategies Continued Investment in R&D and Pipeline Capacity Expansion Achieving Market Leadership in • Aim to invest in seamless integration of R&D between SCIL and SCC • units which would help improve our production processes, Driving operational efficiencies maintaining highest safety stan
Slide 31: Financial Performance & Key Takeaways
Historical Performance Highlights Financial Performance & Key Takeaways Key Takeaways
Slide 32: Historical Performance Highlights
Historical Performance Highlights Revenue (Rs Crs) EBITDA (Rs. Crs) & EBITDA Margin (%) PAT (Rs Crs) +13% 3,065 600 424 2,645 +29% 487 +31% 345 2,425 2,228 1,913 333 291 205 217 145 166 18.4% 19.6% 11.3% 13.0% 13.7% FY18* FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Networth
Slide 33: Consolidated Profit & Loss Account Statement
Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) FY22 FY21 FY20 FY19 FY18 Net Revenue from Operations 3,064.6 2,644.9 2,424.8 2,228.4 1,912.9* COGS 1,908.0 1,655.4 1,607.6 1,458.9 1,238.7 Gross Profit 1,156.6 989.5 817.2 769.6 674.2 Gross Profit % 37.7% 37.4% 33.7% 34.5% 35.2% Empl
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non-Current Assets (A) 487.6 365.7 360.6 318.3 312.7 EQUITY (A) 1,927.2 1,541.3 1,221.8 1,048.4 954.0 Property, Plant and Equipment 349.6 277.6 282.9 277.2
Slide 35: Consolidated Working Capital Movement
Consolidated Working Capital Movement Particulars (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Inventory (A) 937.8 754.4 588.0 680.6 Inventory Days (Inventories/ COGS*365) (i) 179 166 134 170 Trade Receivables (B) 843.1 848.2 849.8 671.0 Trade Receivables Days (Trade Receivables / Revenue*365) (ii) 100 117
Slide 36: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Year ended Year ended Year ended Year ended Year ended Particulars (Rs. Crs) 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar19 31-Mar-18 Net Profit Before Tax 575.7 453.3 266.5 259.8 221.0 Adjustments for: Non-Cash Items / Other Investment or Financial Items 46.3 54.5 45.7 18.6
Slide 37: Key Takeaways
Key Takeaways Formidable Player in the Indian Experienced Management Team Well-diversified Product Portfolio Strong Brand and Well-Entrenched Agro-chem Space and Board of Directors Across Agro-Chem Value Chain Distribution Network ▪ Strong / leadership position across ▪ Strong management and ▪ Multi
Slide 38: Annexures
Annexures Glance of various events to bring people together
Slide 39: Glance of various events to bring people together
Glance of various events to bring people together 38
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Slide 42: Sumitomo Chemical India Ltd.
@ SUMITOMO CHEMICALJNDIA LTD. 41
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Slide 45: Goal setting meet
cl SOURNEY “sumiExcollonce” iGOAL SETTING MEET J (2022-23) | Vapi, SILVASSA, TARAPUR_
Slide 46: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Sumitomo Chemical India Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110MH2000PLC124224 CIN: U74140MH2010PTC204285 Mr. Jigar Kavaiya / Mr. Parin Narichania +91 99206 02034 / +91 99300 25733 investor.relations@sum
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