Usha Martin Limited · NSE:USHAMART
Usha Martin — Investor Presentation (February 2023)
44 slides from Usha Martin's investor presentation, Feb 14, 2023
Slide 1: Investor Presentation filing letter to stock exchanges
Date: 14th February 2023 The Manager The Secretary Societe de la Bourse de National Stock Exchange of India Ltd BSE Limited Luxembourg Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, 35A Bouleverd Joseph II Plot No.C/1, G Block, Dalal Street L-1840, Luxembourg Bandra Kurla Complex, Bandra (E)
Slide 2: Specialty Wire Rope Solutions Provider Investor Presentation
Specialty Wire Rope Solutions Provider Investor Presentation February 2023
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Usha Martin Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall no
Slide 4: Contents
Company Competitive Overview Edge Financial Growth Overview Strategy Contents ESG Summary Annexure 3
Slide 5: Company Overview
Company Overview 4
Slide 6: Leading global and India's no.1 specialty steel wire rope solutions provider
Leading global and India’s no.1 specialty steel wire rope solutions provider… Rich Legacy Of 6 ~60 years Manufacturing Facilities Offering wide range of: Presence across 30+ ▪ Specialty wire ropes 6 Distribution Centers Continents ▪ High-quality wires ▪ Low relaxation prestressed concrete steel stra
Slide 7: With diversified presence across geographies and end-industries
…With diversified presence across geographies and end- industries ▪ State-of-the-art manufacturing facilities: Ranchi, Hoshiarpur, Dubai, Bangkok, UK and Silvassa ▪ Global Design Center at Italy: Engaged in designing / using proprietary design software to develop best in class products ▪ Worldwide n
Slide 8: We are undergoing a strategic transformation and are poised for growth
We are undergoing a strategic transformation and are poised for growth Turnaround Consolidation Growth • Value accretive capex • Divestment of steel business • Renewed focus on specialty • Enhance specialty offerings resulting in: wire rope business across industry segments • Sharp deleveraging • St
Slide 9: Our vision echoes our long-term growth agenda
Our vision echoes our long-term growth agenda To be the global leader in the wire rope industry by delivering customer delight, adopting modern technology and ensuring sustainable growth for all of its stakeholders 8
Slide 10: Competitive Edge
Competitive Edge
Slide 11: In an industry with high entry barriers
In an industry with high entry barriers… Critical Close Customer High Customer Technical Component Of Engagement Switching Costs Know-how End-product Customer approvals and Customers have little Design application and High-end applications of engagement are built over incentive to switch once knowle
Slide 12: We have the competitive edge to fuel growth
…We have the competitive edge to fuel growth 1 3 5 Brand Value Focus on Services - Robust R&D and Established Over Offering Total Innovation 60 Years Solutions to Clients Capabilities Comprehensive Global ‘Close-to- Strong Financial Product Portfolio Consumer’ Position across Diverse Footprint Criti
Slide 13: Brand value established over 60 years
1 Brand value established over 60 years Manufacturing Excellence Technology Leadership Customer Satisfaction 12
Slide 14: Comprehensive product portfolio across diverse critical applications
2 Comprehensive product portfolio across diverse critical applications Fishing Wire Rope Elevated Structures for Transportation High Capacity Wire Cranes-Ports LRPC Cable Supported Aerial High-Speed Mining Elevator Bridges & Structures Transportation 13
Slide 15: Focus on services - offering total solutions to clients
3 Focus on services - offering total solutions to clients Cutting & Socketing Splicing, Fused & Tapering Testing & Site Inspection Services Spooling and Cutting of Heavy Mechanical Splicing Site Inspection Reels Up to 100 Ton Load Test or Destruction Test Resin Socketing Fused and Tapering with 500
Slide 16: Global 'close-to-consumer' footprint
4 Global ‘close-to-consumer’ footprint EUROPE 6 NORTH AMERICA ASIA Manufacturing Facilities Aberdeen, UK India Rotterdam, Netherlands Singapore Presence Across Nottinghamshire, UK AFRICA Bangkok, Thailand 6 Concesio, Italy Dubai, UAE Ho Chi Minh City, Vietnam Continents Jakarta, Indonesia 30+ Distri
Slide 17: Robust R&D capabilities
5 Robust R&D capabilities ▪ GDC has >40 years experience in rope design and application engineering ▪ Technical guidance for product development ▪ In-depth R&D and product testing ▪ Project management and quality assurance for critical supplies ▪ Close co-operation with customers, universities and r
Slide 18: Financial Overview
Financial Overview
Slide 19: Strategic initiatives have strengthened our operational and financial performance
Strategic initiatives have strengthened our consolidated operational and financial performance Delivery Volumes (‘000 MT) Revenue (in Rs. crore) 2,688 207 193 2,378 2,413 189 2,153 2,097 174 1,922 137 146 ▪ Registered consistent performance by leveraging inherent strengths ▪ Greater focus on high va
Slide 20: We have been successfully navigating raw material volatility
We have been successfully navigating raw material volatility Steel Price1 (Rs. per tonne) 65,508 62,796 54,911 57,217 58,287 58,465 50,689 52,700 43,399 ▪ Sustained EBITDA/ton in a volatile raw material environment Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 o Robust pass-on mecha
Slide 21: Healthy balance sheet to support growth initiatives
Healthy balance sheet to support growth initiatives Networth (in Rs. crore) Net Debt (in Rs. crore) Net Working Capital Days 3,463 Payable Receivable Inventory 1,920 1,697 156 167 169 167 1,407 121 1,265 814 189 201 180 171 144 458 342 40 44 45 42 43 191 217 53 47 63 77 79 FY19 FY20 FY21 FY22 Dec-22
Slide 22: Robust free cash flow
Robust free cash flow Operating Cash Flow before Income Tax (in Rs. crore) 241 217 146 ▪ Healthy Free Cash Flow generating businesses FY20 FY21 FY22 ▪ Focus on optimizing working capital to further strengthen OCF generation Free Cash Flow (in Rs. crore) 174 177 107 FY20 FY21 FY22 Note 1: All figures
Slide 23: Focus on enhancing shareholder value
Focus on enhancing shareholder value 57% of Free Cash Flow FY22 Rs. 61.08 crore Dividend (proposed dividend) 21% of Profit After Tax Dividend Payout Policy ▪ New dividend policy adopted during FY22 (Link) ▪ Aspires to maintain healthy dividend payout 22
Slide 24: Growth Strategy
Growth Strategy
Slide 25: Multi-faceted growth strategy
Multi-faceted growth strategy Capex initiatives focused on value-migration Expand international market share through overseas subsidiaries Strong focus on digital initiatives Remain financially prudent 24
Slide 26: Capex initiatives focused on value-migration
Capex initiatives focused on value-migration ▪ Capital allocation towards growth initiatives Consolidated Capex Spend (in Rs. crore) o Capex plan of Rs. 310 crore during FY22 – expected to be completed by Q3FY24 Capex program Sustenance & Other projects ▪ Objectives include: o Expansion of capacity
Slide 27: Expand international market share through overseas subsidiaries
Expand international market share through overseas subsidiaries ▪ International operations have recorded a substantial growth in revenue with 9M FY23 revenue nearly at full-year FY22 levels ▪ Macro-economic factors that continue to strengthen our performance Revenue from International Operations1 o
Slide 28: Strong focus on digital initiatives
Strong focus on digital initiatives Wave 1: Wave 2: Wave 3: Upto Dec. 2023 Upto Dec. 2024 Upto Dec. 2025 Single version of truth Connected Organisation Automation coverage, Reimagined reductions of manual Usha Data Driven Decision Making Martin Business Benefits activity SAP Analytics Phase 3 Transp
Slide 29: Remain financially prudent
Remain financially prudent Consolidated EBITDA Net Debt Net Working Revenue margin leverage Capital Days Outlook (2-3 years) ~15% ~18% <1 <150 (CAGR growth) Net Debt/EBITDA Days 28
Slide 30: ESG
ESG 29
Slide 31: Focus on sustainability
Focus on sustainability Energy And Sustainable Carbon Intensity Supply Chain ▪ Child labor due-diligence ▪ Reduce GHG emissions ▪ Strict adherence to supplier Community ▪ Supply products to code of conduct and supplier renewable energy sector Engagement sustainability ▪ Investment in skill ▪ Prefere
Slide 32: Governance structure in place to drive transparency, accountability and sustainability
Governance structure in place to drive transparency, accountability and sustainability Board of Directors 4 Independent Directors - 3 Whole Time Directors Audit Committee Stakeholders Relationship Risk Management Committee Committee Nomination & Remuneration Finance Committee CSR Committee Committee
Slide 33: Corporate social responsibility (CSR) initiatives
Corporate social responsibility (CSR) initiatives Natural Resource Health, Nutrition & Women Management Sanitation Empowerment ▪ Well construction ▪ Village hospitals ▪ Strengthening of self- help group ▪ Drip irrigation ▪ Health camps ▪ Training of capacity ▪ Hand pump repair ▪ Health awareness bui
Slide 34: Summary
Summary
Slide 35: Focused on creating sustainable value for all stakeholders
Focused on creating sustainable value for all stakeholders State-of-the-art manufacturing, R&D capabilities and well entrenched global distribution network – ‘close-to- customer’ strategy enables the Multi dimensional business company to provide customized initiatives to support shift towards soluti
Slide 36: Annexure
SORT BRT ie Rs SANT
Slide 37: Marquee projects
Marquee projects Sardar Vallabhbhai Patel Statue, World’s longest hanging bridge for ZPMC, China, Barge Disneyland, Shanghai, China Gujarat - Pavilion roof structure adventure tourism in Italy - Cables Crane - Main & auxiliary - Full locked coil, supporting supporting cables with special end connect
Slide 38: Manufacturing set-up - India
Manufacturing set-up - India Ranchi Facility Ismal Unit, Ranchi Hoshiarpur Plant Spread across an area of more than 100 acres, this facility is one of the world’s largest wire Well-equipped facility with over 3 decades of Set up in 1974 in Punjab, India, spread over 8 rope manufacturing facility exp
Slide 39: Manufacturing set-up - International
Manufacturing set-up - International Brunton Wire Ropes FZCO Brunton Shaw UK Ltd. Usha Siam Steel Industries Located at Nottinghamshire in UK, manufacturers high quality wire ropes for a wide range of applications UK Located at Jebel Ali Free Zone in THAILAND Manufacturing facility Dubai (UAE), this
Slide 40: Globally recognized certifications and licenses
Globally recognized certifications and licenses ISO 9001: 2015 ISO 14001: 2015 Certificate of Authority issued Manufacturer Certificate Quality management Environmental management by American petroleum issued by DNV - GL Systems systems institute Manufacturing Japan - Approval of Approved Manufactur
Slide 41: Board of Directors
Board of Directors Mr. Vijay Singh Mr. Venkatachalam Mr. Sethurathnam Mr. Devadip Mr. Rajeev Jhawar Mrs. Ramni Nirula Mr. D J Basu Bapna, Ramakrishna Iyer Ravi, Bhowmik, Managing Director Director Whole Time Director Chairman Director Director Whole Time Director • Over four decades of • An Indian i
Slide 42: Market snapshot
Market snapshot Shareholding pattern as on 31st Dec. 2022 As on Key Market Statistics st 31 Dec. 2022 517146 / Public 29.6% BSE/NSE Ticker USHAMART CMP (Rs.) 171.2 Market Cap (Rs. Crore) 5,248 Corporate Bodies 14.1% Number of outstanding shares (Crore) 30.47 Face Value 1.00 FPI 8.7% 52-week High / L
Slide 43: Contact us
Contact us About Us: Established in the year 1960, Usha Martin is a leading global and India’s No. 1 specialty steel wire rope solutions provider. The Company is also engaged in Mr. Anirban Sanyal (Chief Financial Officer) the manufacturing of high-quality wires, low relaxation prestressed concrete
Slide 44: Thank You
Thank You tf usha martin