Sumitomo Chemical India Ltd. · NSE:SUMICHEM
Sumitomo Chemical India — FY2024 Earnings Presentation
47 slides from Sumitomo Chemical India's earnings presentation, May 28, 2024
Slide 1: Cover letter to stock exchanges
.+► SUMITOMO CHEMICAL INDIA LTD. Corporate Office: 13/14, Aradhana IDC, Near Virwani Industrial Estate, Goregaon (East), Corporate Identity Number (CIN) - L24110MH2000PLC124224 Mumbai - 400 063. Maharashtra, INDIA. Tel. : +91-22-4252 2200 / Fax: +91-22-4252 2380 URL http://www.sumichem-india.co.in S
Slide 2: Investor Presentation March 2024
4 SUMITOMO CHEMICAL INDIA LTD. Evolving Responsibly 0 44 4 'i ce 4• Sumitomo Chemical India Ltd. Investor Presentation March 2024 --• • • • --%4• 1•: 1 •1 1 7 - ''....1?. :a.: -7. h. ..-.. . -
Slide 3: Safe Harbour
• SUMITOMO CHEMICAL INDIA LTD. 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 invitatio
Slide 4: Financial Performance and Key Highlights
*SUMITOMO CHEMICAL INDIA LTD. 1 Financial Performance and Key Highlights 3 Innovate Nurture Grow www.sumichem.co.in
Slide 5: Performance Highlights – Quarter & YTD
• SUMITOMO CHEMICAL INDIA LTD. Performance Highlights – Quarter & YTD I toi ii .4 .ri Revenue (Rs Crs) Gross Profit (Rs. Crs) & EBITDA (Rs. Crs) & PAT (Rs Crs) Gross Profit Margin (%) EBITDA Margin (%) Q4FY24 vs Q4FY23 +38% +74% +52% +3% 282 140 110 652 674 204 72 41.7% 81 20.8% 31.3% 16.3% 12.4% 11
Slide 6: Performance Highlights – Q4 & FY24
• SUMITOMO CHEMICAL INDIA LTD. Performance Highlights – Q4 & FY24 ✓ Over the preceding two years (FY22 & FY23), the company had experienced a positive business environment. Our primary focus during this period was to maximize performance in such favorable conditions and exceed expectations. Building
Slide 7: New Product Launches - PAN India
*SUMITOMO CHEMICAL INDIA LTD. New Product Launches - PAN India tri .'• I 1%1 • I . ' :• I Santana I CLOTICAHICW 0 5'. we* GA I ' '• i;! • ,; • 100101110 0•110011. NO. Lre Pyclome Sumiblue Diamond Santana Insecticide Plant Growth Regulator Insecticide Clothianidin 3.5% + Gibberellic Acid 0.1 % GR Clo
Slide 8: New Product Launches - PAN India
• SUMITOMO CHEMICAL INDIA LTD. New Product Launches - PAN India , . • • • A MEMO HERBICIDE \ 1h 4,I CtilorsatratiOprolt Herbicide Oxadiargyl 1% + Pretilachlor 6% GR Category: Herbicide Insecticide Chlorantrasniliprole 0.4% w/w GR 4 4s SUMITOMO CHEMICAL INDIA LTD. SLICTOIrlOCK@VIICAL INDIA LTD •• 4.1
Slide 9: Consolidated Profit & Loss Account Statement
4 SUMITOMO CHEMICAL INDIA LTD. Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) Q4FY24 Q4FY23 YoY Q3FY24 QoQ FY24 FY23 YoY Revenue from Operations 674.2 651.6 3% 542.0 24% 2,843.9 3,511.0 -19% COGS 392.7 447.4 326.5 1,775.1 2,270.6 Gross Profit 281.5 204.1 38% 215.5 31% 1,068.9 1,2
Slide 10: Revenue Breakup – FY24
*SUMITOMO CHEMICAL INDIA LTD. Revenue Breakup – FY24 Product Breakup Geographic Breakup OO 00 7% 1% 5% 10% 9% 2% 0% 3% 1% 9% 4% 8% 2% 2% 0% 5% 5% 8% 41% 43% 9% 6% FY23 FY24 FY23 FY24 9% 10% 75% 80% 24% 22% Insecticides PGR Fungicides Domestic Japan Europe North America • Herbicides • Metal Phosphide
Slide 11: Consolidated Working Capital Movement
* SUMITOMO CHEMICAL INDIA LTD. Consolidated Working Capital Movement Change Change Particulars (Rs. Crs) Mar-24* Dec-23* (Dec-23 to Mar-23* (Mar-23 to Mar-24) Mar-24) Inventory (A) 610.4 576.1 34.3 888.7 -278.3 Inventory Days (Inventories/ COGS* No. of days in period) (i) 126 115 143 Trade Receivabl
Slide 12: Financial Performance Trend
4 SUMITOMO CHEMICAL INDIA LTD. Financial Performance Trend Gross Profit Margin % EBITDA Margin % PAT Margin % 1,200 1,122 1,100 1,000 986 910 903 900 800 782 754 Revenue (Rs. In crores) 707 724 700 665 652 674 600 542 7 500 38% 400 39% 35% 38% 36% 38% 25% 35% 42% 300 38% 24% 31% 31% 40% 19% 21% 200
Slide 13: Company Overview
4 SUMITOMO CHEMICAL INDIA LTD. 0 Li Company Overview • Innovate Nurture Grow www.sumichem.co.in
Slide 14: Journey to 15x Growth in India
4 SUMITOMO CHEMICAL INDIA LTD. Journey to 15x Growth in India SCIL – Vision & Mission • alb 4 Strategically Located Manufacturing Facilities k W -1 t _ 'tat b a- al &ki t: War _ 4 fr.' 41(IMETAISt_ r ,•T I' Ir Formidable Player in the Indian a a Strong Focus on R&D, Process Innovation Agrochemicals
Slide 15: SCIL - Vision & Mission
*SUMITOMO CHEMICAL INDIA LTD. SCIL - Vision & Mission O 1• 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 • Stre
Slide 16: Journey to 12x Growth in India in last 14 years
• SUMITOMO CHEMICAL INDIA LTD. Journey to 12x Growth in India in last 14 years Feasibility study to set-up correct business model to Exploration Phase : 2000 – 2009 capture potential in Indian market and start aggressive growth phase Manufacturing JV with New Acquired product - 2000 Chemi Industries
Slide 17: Key Products
40b SUMITOMO CHEMICAL INDIA LTD. Formidable Player in the Indian Agrochemicals Space 5 200+ Brands Manufacturing Grown 12x+ over FY11-24 700+ SKUs Facilities Rs. Bn 14 12x 25+ Patents Technical 200+ Registrations 28.4 Actives 15,000+ Direct -r't'vr 7F1S;:- • ra 1600+ Employees Distributors & 1500+ F
Slide 18: Diversified & De-risked Portfolio Across the Agro-Chem Value Chain
• SUMITOMO CHEMICAL INDIA LTD. Diversified & De-risked Portfolio Across the Agro-Chem Value Chain Well-Diversified across multiple dimensions 0 + CD + CD + 0 Business Segments Diversified Portfolio Across Segments Products Geographies Customers Geographic Diversification with Exports to ~50 countrie
Slide 19: Strong Brand and Well-Entrenched Distribution Network
0 SUMITOMO CHEMICAL INDIA LTD. 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 p 26 States 60 Depots customer sub-segments 0 0 ✓ In-depth
Slide 20: Expanding Brand Visibility and Connect
40P SUMITOMO CHEMICAL INDIA LTD. Expanding Brand Visibility and Connect t ✓ Wide range of generics and speciality products for Increased crop presence and providing crop , .x-gecui Ito protection solutions RIxra ald.tat vtip • ✓ More than 1,500+ Relationship managers connecting to 4.4 million+ farme
Slide 21: Digital Marketing Initiatives
+ SUMITOMO CHEMICAL INDIA LTD. 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 (9 local languages), engaged with 20 million consumers in FY23 More than 53
Slide 22: Strategically Located Manufacturing Facilities
* SUMITOMO CHEMICAL INDIA LTD. 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
Slide 23: R&D: End-to-End Product Development Capabilities
O SUMITOMO CHEMICAL INDIA LTD. R&D: 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; Soil Health Research Laboratory and in-house field trials ❑ R&D Team
Slide 24: Capex Plans
• SUMITOMO CHEMICAL INDIA LTD. Capex Plans Regular Capex Rs. 70-75 crore p.a. Maintenance capex [ Additional Capex Rs. 120 crore over 2 years for 5 products* ] To manufacture additional proprietary technical grade active ingredients products for our parent company SCC Japan and our global affiliates
Slide 25: Thrust on Safety, Health and Environment (SHE)
• SUMITOMO CHEMICAL INDIA LTD. Thrust on Safety, Health and Environment (SHE) Quality Certifications Ensure Consistent product quality and healthy Abiding by SCC Japan’s EHS Policies working environment at manufacturing sites Four Start Export House by Ministry of Commerce and Industry Authorized Ec
Slide 26: Awards & Accolades
*SUMITOMO CHEMICAL INDIA LTD. Awards & Accolades Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites Jamnalal Bajaj Award for “Fair Business and Practices” National Safety Award by Labour Ministry, Government of India for safety performance
Slide 27: Autonomous Board with Vast Industry Experience
4 SUMITOMO CHEMICAL INDIA LTD. 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 ▪ 31 years of experience in corporate laws,
Slide 28: Autonomous Board with Vast Industry Experience
*SUMITOMO CHEMICAL INDIA LTD. Autonomous Board with Vast Industry Experience Tadashi Katayama Masanori Uzawa Non-executive Director Non-executive Director ▪ MBA from Vanderbilt University, U.S.A. ▪ MBA from University of Virginia, USA and a and a Master’s degree from Kyoto Bachelor’s degree from the
Slide 29: Growth Strategies
• SUMITOMO CHEMICAL INDIA LTD. Growth Strategies Continued Investment in R&D and Pipeline Capacity Expansion 0 0 0 m 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 effic
Slide 30: Financial Performance Key Takeaways
4 SUMITOMO CHEMICAL INDIA LTD. Financial Performance WSW & f ft dilloo: • • Key Takeaways • ••V" , 41 • Innovate Nurture Grow www.sumichem.co.in
Slide 31: Historical Performance Highlights
• SUMITOMO CHEMICAL INDIA LTD. Historical Performance Highlights Revenue (Rs Crs) EBITDA (Rs. Crs) & EBITDA Margin (%) PAT (Rs Crs) ____--CD------- +5% 3,511 + _____--C11)-----. +10% 667 cD--------a +17% 502 3,065 600 424 2,645 2,844 2,425 487 475 345 370 2,228 333 291 205 a 166 18.4% 19.6% 19.0% 13
Slide 32: Consolidated Profit & Loss Account Statement
* SUMITOMO CHEMICAL INDIA LTD. Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) FY24 FY23 FY22 FY21 FY20 FY19 Net Revenue from Operations 2,843.9 3,511.0 3,061.2 2,644.9 2,424.8 2,228.4 COGS 1,775.1 2,270.6 1,908.0 1,655.4 1,607.6 1,458.9 Gross Profit 1,068.9 1,240.3 1,153.2 989.5
Slide 33: Consolidated Balance Sheet
4 SUMITOMO CHEMICAL INDIA LTD. Consolidated Balance Sheet Assets (Rs. Crs) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (Rs. Crs) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non-Current Assets (A) 640.4 581.2 487.6 367.6 360.6 318.3 EQUITY (A) 2,444.5 2,381.8 1,927.2 1,541.3 1,221.8
Slide 34: Consolidated Working Capital Movement
O SUMITOMO CHEMICAL INDIA LTD. Consolidated Working Capital Movement Particulars (Rs. Crs) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Inventory (A) 610.4 888.7 937.8 754.4 588.0 680.6 Inventory Days (Inventories/ COGS*365) (i) 126 143 179 166 134 170 Trade Receivables (B) 715.9 946.1 843.1 848.2 849.
Slide 35: Consolidated Cash Flow Statement
* SUMITOMO CHEMICAL INDIA LTD. Consolidated Cash Flow Statement Year ended Year ended Year ended Year ended Year ended Year ended Particulars (Rs. Crs) 31-Mar-24 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar19 Net Profit Before Tax 502.9 654.2 575.7 453.3 266.5 259.8 Adjustments for: Non-Cash Items
Slide 36: Key Takeaways
• SUMITOMO CHEMICAL INDIA LTD. 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
Slide 37: Annexures
4 SUMITOMO CHEMICAL INDIA LTD. Annexures 4 Glance of various events to bring people together Innovate Nurture Grow www.sumichem.co.in
Slide 38: Glance of various events to bring people together
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Slide 39: Annual Sales Conference – Sumi Manthan 2024
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Slide 40: Annual Sales Conference – Sumi Manthan 2023
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Slide 41: Annual Distributor Meet – Sumi Bandhan
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Slide 42: Goal Setting Meet – Bhavnagar 2023
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Slide 43: Goal Setting Meet – Gajod 2023
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Slide 44: Goal Setting Meet – Vapi, Silvassa, Tarapur 2022 and 2023
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Slide 45: SCC senior management India visit – May 2023
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Slide 46: SCC senior management India visit – June 2022
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Slide 47: For further information, please contact
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Sumitomo Chemical India — FY2024 Earnings Presentation on 6ix