Fine Organic Industries Ltd. · NSE:FINEORG
Fine Organic Industries — Investor Presentation (May 2019)
34 slides from Fine Organic Industries's investor presentation, May 2019
Slide 1: Investor Presentation May - 2019
Investor Presentation May - 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
THE FINE STORY OF SUCCESS 3
Slide 4: Our Story of Success
Our Story of Success 1970 1973 1988 1995 2002 2005 Established as ‘Fine Commissioned first Set up second facility Incorporated Oleofine Incorporated the Established R&D Organic Industries’, food additives in Ambernath Organics (India) Pvt. Company under the Centre in Navi a partnership firm by facil
Slide 5: Legacy in Green Additives
Legacy in Green Additives Wide Product Range Diversified Customer Base Global Distribution Network Products Direct Distribution 400+ Customers 650+ 130+ Installed Capacity Global Presence 69,300 TPA 70+ Inhouse capability for product Largest manufacturer of oleochemical-based development, Process te
Slide 6: Strength formulae for Success of Fine Organics
Strength formulae for Success of FINE ORGANICS Highly Experienced Dominant Specialized 01 Position 04 Business Model 07 Management Team EFFECTIVE TECHNOLOGY Diversified Strategically 02 Product Portfolio 05 Located + RELENTLESS FOCUS Diversified Strong R&D = – Innovation INNOVATIVE PRODUCTS 03 Custo
Slide 7: 1. Dominant Position
1. 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 five global players in the One of the six global players in the One of the leading players to dev
Slide 8: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Our product range for CosPha (Cosmetic and Pharmaceutical) The diversity of oleochemistry has Pioneer in manufacturing & applications serve both as base Using our oleochemical expertise, enabled us to develop a wide range marketing of emulsifiers
Slide 9: 2. Diversified Product Portfolio: 400+ Products
2. Diversified Product Portfolio : 400+ Products Helps food to get the desired aesthetic structure and texture along with maintaining quality and freshness. Enhances shelf life of bakery products Food Additives and keeps if safer from spoiling or from becoming toxic due to unwanted growth of bacteri
Slide 10: 3. Diversified Customer Base
3. Diversified Customer Base Warehouses in USA & Europe Products 400+ End Users 5,000+ Countries 70+ Direct Customers 650+ Distributors 130+ All the data points are as on 31st March 2019 10
Slide 11: 4. Specialised Business Model: Entry Barriers
4. Specialised Business Model : Entry Barriers The Indian oleochemical market has limited and Complex technology & manufacturing processes create smaller players, while the world over has few players multiple entry barriers into the oleochemical derived Very High additives industry. Product formulat
Slide 12: 5. Strategically Located: Current Facilities
5.Strategically Located : Current Facilities Ambernath 1 4 3 Dombivli 2 Badlapur India plants located in close proximity to Ambernath Badlapur Nhava Sheva Port – Ideal for Exports Current Operational Facility Plant Capacity (TPA) Remarks Certifications 1 1st Ambernath Facility 49,500 -- 2 Badlapur F
Slide 13: 5. Strategically Located: Expansion Plans
5.Strategically Located : Expansion Plans Proposed Expansion Plants Ambernath 5 Plant Capacity (TPA) Remarks rd Patalganga 5 3 Ambernath Facility 32,000 Q1 FY20 6 6 Patalganga Facility 10,000 Q2 FY21* 7 German Facility 10,000 FY22* Leipzig, Germany 7 *Subject to all necessary approvals 13
Slide 14: 6. Strong R&D: Innovative Approach
6. Strong R&D : Innovative Approach Strong R&D Capabilities Focus on ▪ Infrastructure spread over area of 5,000 sq. mts. Production Increasing Contribution from new ▪ Dedicated team of 18 people consisting of scientists Processes products developed and launched and technicians ▪ Developed and launch
Slide 15: 7. Experienced Management Team
7. 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 ▪ On the Board since Nov 2017. Holds a Bachelor’s degree in of Chemical Technology (formerly UDCT) Mechanical Engine
Slide 16: Industry Potential: Multiple Growth Levers
INDUSTRY POTENTIAL: MULTIPLE GROWTH LEVERS 1. Polymer Additives Industry 2. Food Additives Industry 3. Other Specialty Additives 16
Slide 17: 1. Polymer Additives Industry
1. Polymer Additives Industry 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 Country-wise Growth 2016 2021E End-user Segment Growth (From 2016 – 2021E) (From 2016 – 2021E) In US $ Mn In INR Million 7.0% 8.4% Asia Pacific 5.2
Slide 18: 2. Food Additives Industry
2. Food Additives Industry Global Food Emulsifiers Market Size Indian Market Size In US $ Mn 3,400 9,000 2,800 CAGR 4% In INR Million CAGR 11% 5,400 2016 2021E 2016 2021E Country-wise Growth Consumer Food Industry (From 2016 – 2021E) (From 2017 – 2022E) In US $ Mn In INR Million 4.6% 20.0% Asia Paci
Slide 19: 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 ▪ Prop
Slide 20: Financial Highlights
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Slide 21: FY19 Standalone Performance Highlights
FY19 Standalone Performance Highlights Rs in Crores Revenues EBITDA PAT +22% +36% +27% 1,044 222 129 856 101 164 55% Exports 58% 45% Domestic 42% FY18 FY19 FY18 FY19 FY18 FY19 As per IND AS 21
Slide 22: Standalone Operating Performance
Standalone Operating Performance Rs in Crores Revenues EBITDA & Margins 18.6% 22.5% 18.9% 19.1% 21.3% 1,044 +14% 856 777 55% +18% 222 608 651 58% 164 62% 146 147 54% 113 Exports 59% 45% 46% 38% 42% Domestic 41% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 PAT & Margins Cash PAT & Margins 9.1% 1
Slide 23: 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 0.25x 4.92x 5.22x 0.11x 3.10x 2.79x 3.10x 3.26x 3.71x 0.08x 0.05x FY15 FY16 FY17 FY18 FY19 FY 15 FY 16 FY 17 FY 18 FY19* Gross Net Net Debt = Total Long term debt + short term debt + current of Fi
Slide 24: 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 25: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs in Crs) Q4FY19 Q4FY18 Y-o-Y FY19 FY18 Y-o-Y Revenue from Operations (Net of Taxes) 278.7 275.0 1.3% 1,044.0 856.3 21.9% Cost of Raw Material Consumed 177.4 173.4 654.4 556.9 Gross Profit 101.3 101.6 -0.3% 389.5 299.4 30.1% Gross Profit Margin 36.4%
Slide 26: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs in Crs) Mar-19 Mar-18 Equity & Liabilities (Rs in Crs) Mar-19 Mar-18 Non-current assets Equity Property, plant and equipment 77.8 88.1 Equity share capital 15.3 15.3 Capital work-in-progress 106.3 31.7 Other equity 493.1 393.1 Intangible assets 0.3 0.3 Total equit
Slide 27: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs in Crs) Q4FY19 Q4FY18 Y-o-Y FY19 FY18 Y-o-Y Revenue from Operations (Net of Taxes) 284.3 270.4 5.1% 1,060.3 855.8 23.9% Cost of Raw Material Consumed 180.8 173.4 655.2 557.8 Gross Profit 103.5 97.0 6.7% 405.2 298.0 36.0% Gross Profit Margin 36.4%
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs in Crs) Mar-19 Mar-18 Equity & Liabilities (Rs in Crs) Mar-19 Mar-18 Non-current assets Equity Property, plant and equipment 77.8 88.1 Equity share capital 15.3 15.3 Capital work-in-progress 106.3 31.7 Other equity 484.9 380.3 Intangible assets 0.3 0.3 Non Contr
Slide 29: Consolidated Operating Performance
Consolidated Operating Performance Rs in Crores Revenues EBITDA & Margins 18.3% 22.6% 18.6% 18.5% 21.7% +15% 1,060 856 778 +20% 230 607 652 145 145 158 111 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 PAT & Margins Cash PAT & Margins 8.8% 11.7% 9.9% 11.1% 12.9% 12.5% 16.3% 13.0% 13.5%
Slide 30: 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 Gross Net Net Debt = Total Long term debt + short term debt + current
Slide 31: 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% 24.10% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Return on Capital Employed = EBIT (excluding Other Income) / (Total Return o
Slide 32: Looking Ahead
LOOKING AHEAD 32
Slide 33: Key Takeaways
Key Takeaways New Business Organic Growth at the Opportunities Forefront ▪ 2 new proposed facility in ▪ Developing Feed Nutrition pipeline Additives and other specialty additives ▪ Focus is into newer high margin products Continued Focus on Expand Global Innovation and R&D Footprint ▪ Application la
Slide 34: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : CIN: U24119MH2002PLC136003 CIN: U74140MH2010PTC204285 Ms. Sonali Bhadani Ms. Neha Shroff / Mr. Shrikant Sangani Senior Manager - Banking & Finance +91 773807 3466 / +91 96195 95686 www.fineorganics.com Email: neha.shrof
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