Fine Organic Industries Ltd. · NSE:FINEORG
Fine Organic Industries — Investor Presentation (November 2019)
36 slides from Fine Organic Industries's investor presentation, November 2019
Slide 1: Investor Presentation November-2019
Investor Presentation November-2019
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fine Organic Industries Limited (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 3: The Fine Story of Success
é: FINE ORGANICS A Fine Additude fade ‘THE FINE STORY OF | SUCCESS |
Slide 4: Expertise in Oleo-chemistry
Expertise in Oleo-chemistry “It takes Fine Additude to be a Leader ” An established and reputed A Technical Pinch of salt in the end We are omnipresent and form a part international player of oleochemical- product making a HUGE difference in of your life in every way based additives, rooted in India
Slide 5: Why Fine additives are preferred?
Why Fine additives are preferred? Demand for oleochemical derived additives is increasing: ✓ As Green additives have been replacing potentially harmful synthetic chemicals in several industries like plastics, foods, cosmetics, rubber, paint etc. ✓ In recent times, preference for consumer/environment
Slide 6: Legacy in Green Additives
Legacy in Green Additives Wide Product Range Diverse Customer Base Global Distribution Network Direct Customers Distributors Products 400+ 650+ 150+ Installed Capacity Global Presence and engineering R&D and engineering R&D development, Process technology Largest manufacturer of development, Process
Slide 7: Touching Life in Different Ways
Touching Life in Different Ways “High-Performance Environment Friendly Additives” 7
Slide 8: 49 years of Journey
49 years of Journey 1970 1973 1988 1995 2002 2005 Established as ‘Fine Incorporated Oleofine Organics Incorporated the Organic Industries’, Commissioned first company under the Established R&D a partnership firm Set up second (India) Pvt. Ltd. for food additives name of Fine centre in Navi by Late S
Slide 9: With Fine Family
With Fine Family 658 >10% >13% Employee >15% Employees Women completed 25 Comprise 1st & strength as on 2nd generation employees years of journey March 31, 2019 of employees with us Integrity is both a value as well as a character that is embedded in Creating and encouraging home-grown leadership wi
Slide 10: Strength formulae for Success of Fine Organics
Strength formulae for Success of FINE ORGANICS 1 2 3 4 5 6 7 Strong R&D & Diversified Specialized Diversified Highly Dominant Strategically Innovation led Product Business Customer Experienced Position Located Business Portfolio Model Base Management Team TECHNOLOGY DEVELOPMENT RELENTLESS FOCUS INNO
Slide 11: 1. Strong R&D: Innovative Approach
1. Strong R&D : Innovative Approach Strong In-House New R&D Design and Product Capabilities Engineering Development ▪ Feed nutrition additives – derived from natural ▪ Product Development Lab & Product Application Lab ▪ Company has in-house capabilities for plant vegetable oils designing and enginee
Slide 12: Industry Standards and Regulatory Credentials
with Industry Standards and Regulatory Credentials ✓ Setting new benchmarks in quality and consistency ✓ High safety and productivity standards ✓ Products are appreciated by customers worldwide for their consistent quality and packaging standards Fine’s facilities are fully geared towards meeting gr
Slide 13: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Our product range for CosPha The diversity of oleochemistry has Pioneer in manufacturing & (Cosmetic and Pharmaceutical) Using our oleochemical expertise, enabled us to develop a wide marketing of emulsifiers in India. applications serve as base
Slide 14: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Food Additives Polymer Additives Reduces friction between polymer products & other Product act as additives in maintaining the quality and surfaces they come in contact. Converts water droplets freshness of the food products, impart better produc
Slide 15: 3. Specialised Business Model: Entry Barriers
3. Specialised Business Model : Entry Barriers Lengthy & expensive product approval processes lead to high switching costs The additives have a direct impact on for customers. Due to this, customers human life as well as the environment, rely on established suppliers, as thus necessitating stringent
Slide 16: 4. Diversified Customer Base
4. Diversified Customer Base Warehouses in USA & Europe Products 400+ End Users 5,000+ Countries 70+ Direct Customers 650+ Distributors 150+ Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness All the da
Slide 17: 5. Highly Experienced Management Team
5. Highly Experienced Management Team Prakash Kamat – Executive Director and Chairman Prakash Apte – Independent Director ▪ Holds a M.Sc. Tech- Master of Science & Tech (Oils) from Institute of ▪ On the Board since Nov 2017. Holds a Bachelor’s degree in Chemical Technology (formerly UDCT) Mechanical
Slide 18: 6. Dominant Position
6. Dominant Position Pioneers and the largest manufacturers of oleochemical-based additives in India and a strong player globally Fully automated production facility multiple production sites One of the six global players in the specialty food emulsifiers One of the five global players in the polyme
Slide 19: 7. Strategically Located Facilities
7.Strategically Located Facilities Current Operational Facility Plant Capacity (TPA) Remarks 1 1st Ambernath Facility 49,500 -- 2 Badlapur Facility 6,400 -- 5 3 Dombivli Facility 8,400 Acquired on Sub-lease basis Ambernath 4 4 2nd Ambernath Facility 5,000 Acquired on Sub-lease basis 1 3 Dombivli Bad
Slide 20: Industry Potential: Multiple Growth Levers
INDUSTRY POTENTIAL: MULTIPLE GROWTH LEVERS 1. Polymer Additives 2. Food Additives 3. Other Specialty Additives
Slide 21: 1. Polymer Additives
1. Polymer Additives Global Market Size Indian Market Size In US $ Mn 30,000 CAGR 6.4% In INR Million 90,000 CAGR 9.2% 22,000 58,000 2016 2021E 2016 2021E End-user Segment Growth Country-wise Growth (From 2016 – 2021E) (From 2016 – 2021E) In US $ Mn In INR Million 7.0% 8.4% Asia Pacific 5.2% 4.8% St
Slide 22: 2. Food Additives
2. Food Additives Global Food Emulsifiers Market Size Indian Market Size In US $ Mn 2495.1 144.8 1921.2 CAGR 5.4% In US $ Million CAGR 7.36% 101.5 2018E 2023E 2018E 2023E Region-wise Growth Consumer Food Industry (From 2018 – 2023E) (From 2018 – 2023E) In US $ Mn In US $ Million 6.7% 6.0% 8.25% 8.18
Slide 23: 3. Other Specialty Additives: Key Drivers
3. Other Specialty Additives : Key Drivers Industry Cosmetics & Specialties Feed Nutrition Additives for Coatings Rubber Pharmaceuticals ▪ Dispersing agents ▪ Processing Aids ▪ Natural Antibiotics ▪ Emulsifiers & Emollients Key Additives & ▪ Lube additives ▪ Emulsifiers ▪ Specialty Plasticizers ▪ Pr
Slide 24: Financial Highlights
é: FINE ORGANICS A Fine Additude Bo Financial Highlights . eke ei ned f il — it ‘= x = ; : “3 —_ >
Slide 25: Standalone Performance Highlights
Standalone Performance Highlights Rs in Crores Revenues EBITDA PAT +5% +12% +85% 263 274 65 59 58 32 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Revenues EBITDA PAT +3% +10% +40% 504 518 123 96 112 69 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 25
Slide 26: H1FY20 Standalone Operating Performance
H1FY20 Standalone Operating Performance Rs in Crores Revenues EBITDA & Margins 18.6% 22.5% 18.9% 19.3% 21.3% 23.8% 1,044 +14% 856 777 55% +18% 222 608 651 58% 518 164 62% 146 147 54% 113 123 Exports 59% 55% 45% 46% 38% 42% Domestic 41% 45% FY15 FY16 FY17 FY18 FY19 H1FY20 FY15 FY16 FY17 FY18 FY19 H1F
Slide 27: Disciplined Use of Capital (Standalone)
Disciplined Use of Capital (Standalone) Net Debt to Equity Fixed Asset Turnover 0.48x 9.44x 7.77x 6.56x 4.92x 5.22x 0.25x 3.10x 2.79x 3.10x 3.26x 3.71x 0.11x 0.08x 0.05x FY15 FY16 FY17 FY18 FY19 FY 15 FY 16 FY 17 FY 18 FY19 Net Debt = Total Long term debt + short term debt + current of Fixed Asset T
Slide 28: Capital delivering Consistent Performance (Standalone)
Capital delivering Consistent Performance (Standalone) Return on Capital Employed Return on Net Worth 32.64% 32.77% 32.17% 30.31% 31.15% 28.86% 26.31% 24.81% 25.37% 23.88% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Return on Capital Employed = EBIT (excluding Other Income) / (Total Return on
Slide 29: Q2 & H1FY20 Standalone Profit & Loss Statement
Q2 & H1FY20 Standalone Profit & Loss Statement Particulars (Rs in Crs) Q2FY20 Q2FY19 Y-o-Y Q1FY20 Q-o-Q H1FY20 H1FY19 Y-o-Y Revenue from Operations 274.4 262.5 4.5% 243.5 12.78 517.9 504.3 2.7% Cost of Raw Material Consumed 162.9 164.7 146.7 309.6 316.2 Gross Profit 111.5 97.8 14.0% 96.8 15.1% 208.3
Slide 30: Q2 & H1FY20 Consolidated Profit & Loss Statement
Q2 & H1FY20 Consolidated Profit & Loss Statement Particulars (Rs in Crs) Q2FY20 Q2FY19 Y-o-Y Q1FY20 Q-o-Q H1FY20 H1FY19 Y-o-Y Revenue from Operations 274.0 265.8 3.1% 250.6 9.4% 524.6 513.3 2.2% Cost of Raw Material Consumed 161.5 165.3 150.0 311.5 313.2 Gross Profit 112.6 100.5 12.0% 100.6 11.9% 21
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs in Crs) Sept-19 Mar-19 Equity & Liabilities (Rs in Crs) Sept-19 Mar-19 Non-current assets Equity Property, plant and equipment 216.8 77.8 Equity share capital 15.3 15.3 Capital work-in-progress 9.3 106.3 Other equity 551.4 484.9 Intangible assets 0.3 0.3 Non Con
Slide 32: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (Rs. in Crs.) Sept-19 Sept-18 Net Profit Before Tax 121.2 122.9 Cash generated from Operations 151.5 104.4 Direct taxes paid (net of refund) (39.0) (30.7) Net Cash from Operating Activities (A) 112.5 73.7 Net Cash from Investing Activities (B) (45.8) (31.2
Slide 33: H1FY20 Consolidated Operating Performance
H1FY20 Consolidated Operating Performance Rs in Crores Revenues EBITDA & Margins 18.3% 22.6% 18.6% 18.6% 21.7% 24.0% +15% 1,060 856 778 +20% 230 607 652 525 145 145 158 111 126 FY 15 FY 16 FY 17 FY 18 FY 19 H1 FY20 FY 15 FY 16 FY 17 FY 18 FY 19 H1 FY20 PAT & Margins Cash PAT & Margins 8.8% 11.7% 9.9
Slide 34: Disciplined Use of Capital (Consolidated)
Disciplined Use of Capital (Consolidated) Net Debt to Equity Fixed Asset Turnover 0.48x 9.58 x 7.74 x 6.57x 0.24x 4.91x 5.23x 0.10x 3.27 x 3.77 x 3.09x 2.79x 3.11x 0.07x 0.04x FY15 FY16 FY17 FY18 FY19 FY 15 FY 16 FY 17 FY 18 FY 19 Net Debt = Total Long term debt + short term debt + current of Fixed
Slide 35: Capital delivering Consistent Performance (Consolidated)
Capital delivering Consistent Performance (Consolidated) Return on Capital Employed Return on Net Worth 32.75% 32.88% 33.85% 30.46% 30.80% 27.24% 28.51% 25.67% 23.65% 24.06% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Return on Capital Employed = EBIT (excluding Other Income) / (Total Return o
Slide 36: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : CIN: L24119MH2002PLC136003 CIN: U74140MH2010PTC204285 Ms. Sonali Bhadani Ms. Neha Shroff / Mr. Shrikant Sangani Vice President - Finance +91 773807 3466 / +91 96195 95686 www.fineorganics.com Email: neha.shroff@sgapl.ne
Fine Organic Industries — Investor Presentation (November 2019) on 6ix