Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Investor Presentation (May 2019)
32 slides from Himadri Speciality Chemical's investor presentation, May 31, 2019
Slide 1: Exchange filing cover letter: Investor Presentation Revised
.4 Himadri Ref.: No.: HSCL/Stock-Ex/2019-20/33 Date: 31 May, 2019 E-mail: blsharma@himadri.com Ref.: Listing Code: 500184 Ref.: Listing Code: HSCL BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, C-1, Block-G P. J Towers, 25th Floor Bandra Kuria C
Slide 2: Investor Presentation May 2019
Himadri Speciality Chemical Ltd INVESTOR PRESENTATION DEEPER STRONGER May - 2019 ROOTS SHOOTS
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himadri Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Ready for the next phase
Ready for the next phase… Himadri Next Phase of Innovation and R&D C• Next Phase of High-Value Products Next Phase of Earnings Next Phase of Growth 3
Slide 5: Next Phase of Innovation and R&D
Next Phase of Innovation and R&D ♦ I r, 11111 11101-11 An Techno- Innovation Commercial Mindset Team ■■ NIM; World Class Laboratory Large Knowledge Continuous Bank R&D 12 7% 11% New grades introduced & Reduction in energy Increased productivity of commercialised in consumption in certain certain gra
Slide 6: Next Phase of High Value Products
Next Phase of High Value Products 4IW Himadri Coal Tar Advance Carbon Material Carbon Black Specialty Carbon Black Sulphonated Naphthalene Naphthalene Formaldehyde Most Integrated Global well-diversified Product portfolio with Strong Speciality Carbon Corporation Globally Competitive 5
Slide 7: Expansion in High-Value Products
Expansion in High-Value Products Specialty Carbon Black Advance Carbon Material Increase application of Focus on Speciality Set-up of Specialty Carbon Black Advance Carbon Materials project lithium-ion batteries in Carbon with High at West Bengal with an annual of 20,000 MTPA is progressing well the
Slide 8: Next Phase of Earnings (Consolidated)
Next Phase of Earnings EPF . Himadri Consolidated Performance Rs. In Crs Revenue EBITDA# PAT 2,422 563 324 2,022 452 248 FY18 FY19 FY18 FY19 FY18 FY19 +20% +24% +31% y-o-y growth y-o-y growth y-o-y growth C C C 7 #EBITDA excludes FX Fluctuation loss / Gains
Slide 9: Next Phase of Earnings (Standalone)
Next Phase of Earnings at H i mad ri Standalone Performance Rs. In Crs Revenue EBITDA# PAT 1,971 21% 2,377 rio 450 20% 538 To 243 27% 307 FY18 FY19 FY18 FY19 FY18 FY19 Key Milestones Revenue EBITDA# PAT Crossed Crossed Crossed Rs. 2,000 Rs. 500 Rs. 300 Crores Crores Crores mark mark mark #EBITDA exc
Slide 10: Priorities for Cash
Priorities for Cash IIP411 Himadri NEW CAPACITIES DEBT IMPROVED OPERATING ANNOUNCED REDUCTION EFFICIENCIES riN riwl Working Capital days 200 Focus on Speciality Carbon with High Value- -111 additions & Performance » Net Debt decreased by INR 688 Crores from INR 163 1,118 Crs. in FY14 to INR 430 Crs.
Slide 11: Transformation – High Value & High Margin Strategy
Transformation – High Value & High Margin Strategy H imacl ri Sales Volume Realisation/MT EBITDA/MT# Sales Rationalisation – Better Product Mix – Sale Focus on Value-addition Focus on High-value of High-value & High- Strong growth in business margin products profitability +26.1% +25.1% 3,79,679 65,4
Slide 12: Balance Sheet Strength & Financial Flexibility
041 Balance Sheet Strength & Financial Flexibility Himadri Net Debt Net Debt / EBITDA* 5.26x Strong Balance Sheet and Sufficient Financial flexibility… 2.90x 1,118 Rs. in Crs 1,030 1.40x 0.80x 805 Mar-16 Mar-17 Mar-18 Mar-19 717 629 Net Debt / Equity 430 0.87x 0.67x 0.43x 0.26x Mar-14 Mar-15 Mar-16
Slide 13: Operating Efficiency leading to Higher Returns
Operating Efficiency leading to Higher Returns Working Capital (No. of days) ROCE (excl. CWIP) (%) +395 bps Improved 112 by 23 days r'l 22.3% 26.2% 89 Mar-18 Mar-19 ROCE (excl. CWIP) =EBIT/( Equity + Total Debt – Cash & Cash Equivalents – CWIP) ROCE (%) +262 bps r'- 22.0% 24.6% Mar-18 Mar-19 Cash ge
Slide 14: Next Phase of Growth
Next Phase of Growth Himadri High Value Right Capacity Strong Clientele Product Pipeline Product Strategic Strong R&D Leadership Location Global Diversified End Management Cutting Edge 0 Markets Team Technologies R ..01111° 13
Slide 15: Strategic Growth Priorities
Strategic Growth Priorities H H I mad ri Advance Carbon Coal Tar Pitch Carbon Black SNF Material Serving core sectors of economy Focus on Speciality Carbon with Increase application of lithium-ion Widen the Product Portfolio by through Aluminium & Graphite High Value-additions & batteries in the Sun
Slide 16: Financial Performance
Financial Performance NIZFA 15
Slide 17: Standalone Profit & Loss
Standalone Profit & Loss Particulars (In Rs. Crs) Q4 FY19 Q4 FY18 Y-o-Y (%) FY19 FY18 Y-o-Y (%) Net Revenue From Operations 583 551 6% 2,377 1,971 21% Cost of Materials Consumed 388 362 1,588 1.325 Gross Profit 196 189 4% 789 646 22% Employee Benefits Expense 16 14 58 47 Other Expenses 56 49 192 150
Slide 18: Standalone Balance Sheet
Standalone Balance Sheet at H i mad ri Particulars (in Rs. Crs.) Mar’19 Mar’18 Particulars (in Rs. Crs.) Mar’19 Mar’18 ASSETS EQUITY AND LIABILITIES Non-Current Assets 1,664 1,583 EQUITY 1,677 1,456 Property, Plant and Equipment 1,090 1,097 Equity Share Capital 42 42 Capital work-in-progress 126 18
Slide 19: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (In Rs. Crs) FY19 FY18 Y-o-Y (%) Net Revenue From Operations 2,422 2,022 20% Cost of Materials Consumed 1,600 1,365 Gross Profit 822 656 25% Employee Benefits Expense 60 48 Other Expenses 200 155 EBITDA 563 452 24% Other Income 8 5 Foreign Exchange Fluctuation
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet 1104 H i mad ri Particulars (in Rs. Crs.) Mar’19 Mar’18 Particulars (in Rs. Crs.) Mar’19 Mar’18 ASSETS EQUITY AND LIABILITIES Non-Current Assets 1,637 1,556 EQUITY 1,631 1,414 Property, Plant and Equipment 1,168 1,175 Equity Share Capital 42 42 Capital work-in-progress 133
Slide 21: Validation through Awards & Recognition 2018
Validation through Awards & Recognition 2018 Himadri For I r, Ihurrm 11011 r 11:manvimql 2111111 CII Water Management Award I lurid .1 r liciincul11.1 World’s 100 Greatest Brands Winner in Within the Fence Category in CII’s Water Received at the Fourth edition of India-UAE Business and Management Na
Slide 22: Business Overview
Himadri Business Overview 21
Slide 23: Product Development was a Clear Focus
Product Development was a Clear Focus Himadri 2010 2019 • Himadri » Aluminium Grade Pitch » Heavy Creosote Oils » Graphite Grade Binder Pitch » Anthracene Oil/Carbon Black » Coal tar pitch – Binder grade » Graphite Grade Zero QI Oil/ CT Oil » Coal tar pitch – Impregnating (Quinolene Insoluble) coal
Slide 24: Coal Tar Pitch: Critical Input in Downstream Industries
Coal Tar Pitch : Critical Input in Downstream Industries Coal Tar Pitch Graphite Grade In Graphite Electrode Binder Pitch Manufacturing Graphite Grade Zero QI Coal tar Anode Impregnating Pitch Special Pitches Material In graphite electrode, nipple Used by DRDO in long range warhead missiles. In carb
Slide 25: Specialty Carbon Black: Niche Applications
Specialty Carbon Black : Niche Applications Himadri Forward Integration to convert Coal Tar Oil into Carbon Black 3rd Largest Carbon Black Producer in India with Anything that is manufactured Black 120,000 MTPA has With Superior Inhouse Raw Carbon Black Material & R&D Capabilities launching Speciali
Slide 26: Naphthalene Value Proposition
Naphthalene Value Proposition H i mad ri Special Grade Naphthalene Special Grade Naphthalene is formulated to cater customer's niche requirements in dyestuff and dyes intermediates application Naphthalene Moth Ball Moth Balls is made by using superior grade chemical composition and leading-edge tech
Slide 27: SNF: Next Generation Products
4 SNF : Next Generation products Himadri SNF – Next Generation Product for the Construction Chemical Industry (Admixture), Agro chemicals, Latex, Gypsum Largest Indian manufacturer of SNF with an installed capacity of 68,000 MTPA Highest Purity SNF manufactured from In-house produced Naphthalene Pen
Slide 28: High Performance Construction Chemicals
High Performance Construction Chemicals H rn ad ri » Sulphonated Naphthalene Formaldehyde (SNF) is a speciality chemical condensate that helps improve concrete mixes by dispersing cement particles for extended workability and reinforcing compressive flexural strength ▪ Naphthalene, one of the by pro
Slide 29: Advance Carbon Material
Advance Carbon Material Forward Integration from Coal Tar to Advance Carbon Material Anode Material used in Lithium-ion Batteries Only Producer of Advance Carbon Material in India Best in class Proprietary Technology With Cost Leadership 28
Slide 30: Applications across Industries
Applications across Industries H i ma dri Paints, Plastic & Fibre Graphite Electrodes Anti Corrosive Material Missiles _ nireop , iii, ONI =MP pli imir . A Ilb, AIM 4 v 1-401 (A& r ....... \,_..... Construction Chemical Aluminium Lithium – Ion Batteries Infrastructure C Rubber Industries Wood Preser
Slide 31: If You Can Be One Thing, Be Dependable
If You Can Be One Thing, Be Dependable Himadri CTP Clientele CB Clientele Others Clientele NPIP-77-141.1 sHowA vedama --0ENKO APOLLO TYRES 31111ELLF• TYRES aluar ADITYA BIRLA huber:: AI urninil.o Argo-Mho PACIFIC 111t CooperSta nda rd ■ group ■ ALUMINIUM HIFJDA1 CO FR MEI GRAFfeo 3LEI1D COLOURI Powe
Slide 32: For further information, please contact
For further information, please contact: Himadri Investor Relations Advisors : Company : S GA Strategic Growth Advisors Himadri Speciality Chemical Ltd CIN: U74140MH2010PTC204285 CIN: L27106WB1987PLC042756 Ms. Payal Dave / Ms. Neha Shroff Mr. Somesh Satnalika VP Strategy & Business Development +91 9
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