Carborundum Universal Limited · NSE:CARBORUNIV
Carborundum Universal — Shareholder Meeting (July 2020)
49 slides from Carborundum Universal's shareholder meeting presentation, Jul 29, 2020
Slide 1: True Grit - 66th Annual General Meeting
TRUE GRIT 66th ANNUAL GENERAL MEETING 29 July 2020
Slide 2: Disclaimer
DISCLAIMER The communication may contain statements relating to future business developments, company’s performance and economic performance that may constitute ‘forward looking statements’. While these forward looking statements represent the company’s judgments and future expectations, a number of
Slide 3: CUMI – A Brief History
CUMI – A BRIEF HISTORY 12 MW Hydel project at Maniyar, Kerala, Toll manufacturing model operations India. WFA at Edapally, commenced in China. CUMI Incorporated EAL, Calcutta. Sterling Abrasives Limited, Ahmedabad, Expansion of IC at Hosur Acquired & merged Cutfast Abrasive Tools METZ 2.0 Coated Abr
Slide 4: We Engineer Materials Science Solutions for an Enduring Planet
WE ENGINEER MATERIALS SCIENCE SOLUTIONS FOR AN ENDURING PLANET Abrasives Surface Engineering Electro minerals Wear & Materials Heat Containment Corrosion Science & Protection Ceramics & Refractories Solutions Management Composites Mission Critical Applications
Slide 5: Our Leadership Team
OUR LEADERSHIP TEAM M M Murugappan Chairman N Ananthaseshan Managing Director Ninad Gadgil Rajesh Khanna Sergey Kostrov V G Rajendran Jayan P S Trevor Allen Arul Rajkumar Abrasives Ceramics VAW Refractories Electrominerals CAPL HR
Slide 6: A Resilient Organisation Built on Strong Fundamentals
A RESILIENT ORGANISATION BUILT ON STRONG FUNDAMENTALS APPLICATION HYDEL POWER ABRASIVES 7 DSIR LABS NEW-AGE MATERIALS DEVELOPMENT BAUXITE MINE SURFACE TECHNOLOGY ORGANIC & INORGANIC ELECTRO MINERALS NEW PROCESSES CENTRE GROWTH CERAMICS; REFRACTORIES 60 + MATERIALS & THERMAL POWER TECHNOLOGY PLATFORM
Slide 7: CUMI Group
CUMI GROUP CUMI Standalone Direct Subs Subs via CIL JVs/ Associates Operations Abrasives Sterling Abrasives Limited – 60% Volzhsky Abrasives Works MMTCL - 49% (Russia)- 98.07% FOSKOR Zirconia (Pty) Ltd. (S. Africa) – 51% CIRIA Limited - 30% Electro Minerals CUMI Australia Pty. Ltd. - 51.22% CUMI Ame
Slide 8: Global Footprint
GLOBAL FOOTPRINT So
Slide 9: The Year That Was 2019-20
aXe murugappa The Year That Was 2019-20
Slide 10: 2019: Subdued Global Growth
2019: SUBDUED GLOBAL GROWTH 25% 20% INDIA** 20% GLOBAL* AUTOMOTIVE 15% 10% 6% 4% 5% 0% 0% -4% Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Q1 FY 20 Q2 FY 20 Q3 FY 20 Q4 FY20 -5% -13% -11% -10% -16% 1.3 -15% 1.3 -20% 8.0 6.4 6.6 6.0 CONSTRUCTION 2.3 7.0 5.2 5.2 6.1 6.0 4.2 2.6 5.0 4.0 3.0 -0.04 2.0 1.0 1.7 -2
Slide 11: Core Industries Impacted
COAL PRODUCTION (mMT) 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 0.0 CEMENT (‘000 TONS) 50000.0 0.0 100000.0 150000.0 200000.0 250000.0 300000.0 350000.0 400000.0 **CSO, MOSPI 2011-12(Apr-Mar) 551.5 2011-12(Apr-Mar) 229500.0 2012-13(Apr-Mar) 569.1 2012-13(Apr-Mar) 246614.0 3% 7% 2013-14(Apr-Mar
Slide 12: Consolidated Financials Segmental Results: FY20
CONSOLIDATED FINANCIALS SEGMENTAL RESULTS : FY 20 Financial Year 20 Gross Sales * :INR 2569 Cr -3% PAT :INR 272 Cr 10% Abrasives** Electrominerals** Ceramics & Refractories** Revenue: INR 995 Cr -11% Revenue :INR 1026 Cr 1% Revenue :INR 629 Cr 4% EBIT : INR 113 Cr -19% EBIT :INR 104 Cr -19% EBIT :IN
Slide 13: Consolidated and Standalone Sales and PAT
FINANCIALS Sales: (3%) GOLY Sales: (7%) GOLY 2,800 PAT: 10% GOLY 2656 PAT: 15% GOLY 2575 2569 1,800 1752 1622 1623 2331 2,330 1,551 CONSOLIDATED SALES AND PAT IN RS Crores STANDALONE SALES AND PAT IN RS Crores 1,600 2,080 2,300 1,383 1,917 1,400 1,274 1,800 1,200 1,000 1,300 800 600 PAT % PAT % PAT
Slide 14: Financially Resilient
FINANCIALLY RESILIENT 16% 15% 15% 15% 14% Financial Strength Return on Equity% 15% 14% 14% • 66 years of unbroken dividend 14% 13% 13% payout 13% • Strong and consistent returns on capital 12% 2016 2017 2018 2019 2020 0.35 0.3 0.3 • Steady increase in Asset turnover 0.25 • Strong Balance Sheet – Maj
Slide 15: Perpetual Resilience
PERPETUAL RESILIENCE
Slide 16: What Makes CUMI Resilient?
WHAT MAKES CUMI RESILIENT ? It’s varied Businesses • Abrasives, EMD, Industrial Ceramics, Refractories It’s varied industry segments • Auto, Auto comp, Engineering, Basic Metals, Infrastructure, Energy, Power, Housing etc. It’s varied markets • ~45% of the revenues are outside India It’s cost compet
Slide 17: Abrasives: Engineering Surfaces
ABRASIVES: ENGINEERING SURFACES Auto & Component General & Heavy Engineering Overall GDP growth High end Applications – India growth in Aerospace, Defense, Construction expected to reach MRO Hubs in India 6% in 2021 Bearings Auto Greater Preference General Eng for personal modes of transportation He
Slide 18: Coated Capacity Expansion – Sriperumbudur
COATED CAPACITY EXPANSION – SRIPERUMBUDUR 18
Slide 19: Electrominerals: Workhorse Minerals for Industry
ELECTROMINERALS: WORKHORSE MINERALS FOR INDUSTRY; PERFORMANCE MINERALS FOR FUTURE Abrasives Plasma Spray Semiconductors Powder & Black / Green SiC, high Investment casting purity minerals Defense & IoT, digitzation etc. Refractories Aerospace push- ANB Abrasives Diesel Particulate Filters ‘Regular’
Slide 20: White Fused Alumina Furnace Conversion and Refurbishment at Kochi
White Fused Alumina Furnace conversion and Refurbishment at Kochi 20
Slide 21: SiC Expansion, NbSiC Refractories, Securing Supply Chains
SiC expansion NbSiC Refractories Volzhsky Abrasive Works Securing supply chains VOLZHSKY ABRASIVE WORKS
Slide 22: Industrial Ceramics: Wear Application; Co-created Engineered Ceramics
INDUSTRIAL CERAMICS: WEAR APPLICATION; CO-CREATED ENGINEERED CERAMICS Mining Renewables/ Clean Cement, Mining Energy - SOFC ANB push on Infra Global renewable Issue of mining energy goals Power Generation licenses Coal self sufficiency Power T&D Iron & Steel Infra & construction push SoFC Semiconduc
Slide 23: CUMI Australia: Non Oxides, Cast Basalt, RBSiC
CUMI AUSTRALIA PTY LTD. 1 NON OXIDES 2 CAST BASALT 3 RBSIC
Slide 24: Growth: Capacity Expansions, New Capabilities
GROWTH : CAPACITY EXPANSIONS, NEW CAPABILITIES Metz 2.5 SiSiC NbSiC 24
Slide 25: Refractories & Composites: Heat Containment, Wear, Corrosion Resistance
REFRACTORIES & COMPOSITES : HEAT CONTAINMENT, WEAR, CORRSION RESISTANCE Ceramics Misc Heavy industries: Composites Cement, Glass, Carbon Wind energy, Railways Black EV Bodies – light Cement Growth to rebound in 2021 weighting Glass Iron & Steel Infra & construction push Waste incineration NbSiC Stee
Slide 26: Innovation & New Products
ps Tee 4 & x Innovation & New Products ae ce
Slide 27: New Products - Abrasives
NEW PRODUCTS - ABRASIVES Flap Discs Zr disc Scrub pad Paper Disc
Slide 28: New Products: Composites
NEW PRODUCTS : COMPOSITES Defense – telescopic poles Electric Vehicles
Slide 29: New Products: Ceramics, Refractories, New Materials
NEW PRODUCTS: CERAMICS, REFRACTORIES, NEW MATERIALS Composite Spray Header IoT enabled Predictive maintenance Graphene Spherodization
Slide 30: New Products: Ceramics
NEW PRODUCTS : CERAMICS Ceramic lined rubber hoses Life style substrates Metallized Ceramics for X Rays C Channels- SOFC Metal Matrix Composites Paper Cone accessories
Slide 31: People Capabilities
People Capabilities
Slide 32: The CUMI Family: Diverse, Vibrant
THE CUMI FAMILY: DIVERSE, VIBRANT 32
Slide 33: Networks & Industry Leadership, Partnerships, Customers, Expos
NETWORKS & INDUSTRY LEADERSHIP 1 PARTNERSHIPS 2 CUSTOMERS 3 EXPOS 4 INDUSTRY BODIES 33
Slide 34: Awards & Recognition
Awards & Recognition
Slide 35: CSIR Diamond Jubilee Technology Award for 2018
CSIR Diamond Jubilee Technology Award for 2018 • CUMI IC was awarded the CSIR Diamond Jubilee Technology 2018 for the technology of Metallization of Ceramics on 26th of September 2019 • CSIR Foundation Day Function was held at Vigyan Bhavan, New Delhi. The function was graced by the Honorable Presid
Slide 36: Awards & Recognition
AWARDS & RECOGNITION IEI Centenary Excellence Award National Productivity Summit Sreshta Suraksha Pushkar Award - EMD TPM Significant Achievement Award 36
Slide 37: Awards & Recognition
AWARDS & RECOGNITION ICIA and SAFA Awards – financial Reporting CSR Award from Rotary International CCSD Hosur, “Best Establishment of the SEEM National Energy Conservation Award Region, GoI 37
Slide 38: Capability: People & Infrastructure
CAPABILITY : PEOPLE & INFRASTRUCTURE 18 16 16 14 13 12 10 GETs & PhDs Skill Development 8 8 6 4 2 0 Trademarks Patents Desgin Design Thinking DSIR Labs / Surface Technology Centre 38
Slide 39: Corporate Social Responsibility
Corporate Social Responsibility
Slide 40: Corporate Social Responsibility: Health, Education & Infrastructure
CORPORATE SOCIAL RESPONSIBILITY : HEALTH, EDUCATION & INFRASTRUCTURE Health Community Education Education Health Community 40
Slide 41: Inauguration of Skill Development Centre - 2020
INAUGURATION OF SKILL DEVELOPMENT CENTRE - 2020 Total No. of Students till Mar’2020 : 353 Total No. of pass-outs : 157 Ongoing batch : 196 316 37
Slide 42: COVID & Post Lockdown
COVID & Post Lockdown
Slide 43: All Plants Operational Post First Lockdown
ALL PLANTS OPERATIONAL POST FIRST LOCKDOWN Roorkee Okha, Bhatia Jabalpur Kolkata • Operations safely restarted post lockdown – across locations globally • Strict adherence to social distancing Hosur (2) Thiruvottriyur • PPEs, sanitization facilities, and safety gear Kakanad Ranipet (3) Edapally prov
Slide 44: Aligning Ourselves to the New Normal
ALIGNING OURSELVES TO THE NEW NORMAL EMPLOYEES CUSTOMERS OPERATIONS COMMUNITIES 44
Slide 45: Keeping Our Focus Trained on the Future
KEEPING OUR FOCUS TRAINED ON THE FUTURE 3 GROWTH Core Maker 2 Metz 2.5 SiC / NbSiC SiSiC Composites 2 EFFICIENCY Core Automation Digital IT infra Cost Reduction JDPS 1 CAPABILITY Core GETs PhDs Design Thinking 16 TM 8 Patents Tape Casting Magnetic sputtering Skill Development Centre
Slide 46: Way Forward: Navigating the Post COVID World
Way Forward : Navigating the Post COVID World Health & Safety – Pivot Product Portfolio - Employee Strengthen supply Stakeholder Covid Care innovation Productivity enhanced chains across global Relationships through Automation operations 1 2 3 4 5 46
Slide 47: Strategy Summary
Strategy Summary Distribution Reach Materials & Processing Capabilities • Expand product offering to Core Strong industries (Cast Basalt, Wear Plates) Balance • Break-out growth in 1) Non-oxides 2) Sheet & Composites 3) Semi-conductor Cash Flow Cost Position substrates & wafers 4) Medical Ceramics •
Slide 48: The Five Lights
he five lights The light of INSFEGRITY that gives us the courage to always do the right thing The light of gy, RESPONSIBILITY that gives us the humility to think about the world around us ‘The light of RESPECT that inspires people around us to perform ‘The light of PASZION that provides us with the
Slide 49: Thank You
i i E j d i i Thank You 49
Carborundum Universal — Shareholder Meeting (July 2020) on 6ix