Gfl Ltd · NSE:GFLLIMITED
Gfl — Gujarat Fluorochemicals — Investor Presentation (August 2018)
30 slides from Gfl's investor presentation, August 2018
Slide 1: Gujarat Fluorochemicals Limited Investor Presentation
GUJARAT FLUOROCHEMICALS LIMITED Investor Presentation August, 2018 1
Slide 2: Table of Contents
Table of Contents • The story so far • The platform created • The path forward Note: all numbers in this presentation are based on the Standalone Financial Accounts of GFL, and represent the chemical business alone. 2
Slide 3: The story so far
The story so far 3
Slide 4: Revenues
Revenues Rs. in crores 2500 800 694.9 2084.3 700 0 3.9 28.7 31.9 42.6 2000 CAGR 16.3% 94.5 38.3% 600 1532.1 502.3 1435.1 758.6 1500 104.5 500 288.2 1321.1 30.1 28.7 100.8 43.2 9.7 19.6 1140.9 30.1 21.3 39.5 33.4 37.9 400 22.7 430.9 508.4 1000 519.1 417.1 186.1 439.2 300 262.3 243.1 169.9 204.3 264.7
Slide 5: EBITDA and EBITDA margin
EBITDA and EBITDA margin Rs. in crores 700 35% 250 35% 28.6% 30.6% 595.7 212.6 600 30% 30% 200 500 25% 25% 21.4% 20.8% 19.5% 19.6% 400 20% 150 17.0% 20% 300.0 300 282.3 280.5 15% 104.5 15% 100 194.4 200 10% 10% 100 5% 50 5% 0 0% FY2014 FY2015 FY2016 FY2017 FY2018 0 0% EBITDA EBITDA margin Q1FY2018 Q
Slide 6: PAT and PAT margin
PAT and PAT margin Rs. in crores 350 333.3 18% 140 18% 16.0% 16.6% 16% 16% 300 120 115.3 14% 14% 250 12.6% 12% 100 12% 200 9.2% 10% 80 10% 150 141.0 8% 63.3 6.5% 6.6% 6.0% 60 8% 95.4 6% 100 79.6 6% 74.4 4% 40 50 4% 2% 20 2% 0 0% FY2014 FY2015 FY2016 FY2017 FY2018 0 0% PAT PAT margin Q1FY2018 Q1FY201
Slide 7: Revenues – Caustic Soda and Chloromethanes
Revenues – Caustic Soda and Chloromethanes Rs. in crores 600 300 4.9% 274.6 264.7 488.8 248.8 500 250 234.7 13.3% 218.2 400 368.1 200 319.4 296.9 300 271.7 150 36.7% 26.5% 200 100 69.6 120.7 95.4 50.9 100 50 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 Q1FY2018 Q1FY2019 FY2014 FY2015 FY2016 FY2017 FY2018
Slide 8: Revenues – Refrigerants and PTFE
Revenues – Refrigerants and PTFE Rs. in crores 450 800 758.6 417.1 14.6% 400 700 350 34.9% 600 519.1 508.4 300 262.3 500 243.1 439.2 430.9 250 51.8% 54.9% 204.3 400 200 169.9 288.2 300 150 126.0 111.9 186.1 200 100 50 100 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 Q1FY2018 Q1FY2019 FY2014 FY2015 FY2016
Slide 9: Revenues – VAP and Others
Revenues – VAP and Others Rs. in crores 100 94.5 45 90 39.5 40 37.9 80 35 42.8% 31.9 70 30.1 30.1 30 60 25 50 117.3% 43.2 42.6 20 40 33.4 15 30 22.7 21.3 9.7 19.6 10 20 5 3.9 10 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 Q1FY2018 Q1FY2019 FY2014 FY2015 FY2016 FY2017 FY2018 Q1FY2018 Q1FY2019 VAP (include
Slide 10: Balance Sheet
Balance Sheet Rs. in crores 4000 3726 4000 3726 246 3500 3286 3500 3286 3176 761 3176 3080 3080 2967 2967 249 3000 3000 291 193 489 702 489 479 442 712 2500 2500 626 561 534 432 2000 2000 3480 1500 1500 2885 2887 3037 2525 2253 1000 2056 2061 2030 2050 1000 500 500 0 0 FY2014 FY2015 FY2016 FY2017 FY
Slide 11: ROCE and ROE
ROCE and ROE 25% 21.4% 20% 15.3% 15% 14.5% 11.4% 10.2% 10% 9.2% 5.6% 5.8% 5.4% 5.1% 5% 4.2% 4.1% 3.5% 3.2% 0% FY2014 FY2015 FY2016 FY2017 FY2018 Q1FY2018 Q1FY2019 ROCE ROE ROCE = EBIT / Average Shareholder Funds + Total Debt – Strategic Investments – Treasury Investment ROE = PAT / Average Sharehold
Slide 12: The platform created
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Slide 13: Global Fluoropolymer Industry
Global Fluoropolymer Industry • Global demand of various fluoropolymers would be around 336,000 MT per annum, growing at around 4-5% per annum • Suppliers include a few Western producers and a handful of Chinese manufacturers • Western producers not expanding because • Tougher environmental regulati
Slide 14: GFL strategy in the fluoropolymer market
GFL strategy in the fluoropolymer market • Differentiate from Chinese manufacturers and move closer to Western producers by • Continuous improvement in product quality and consistency • Understanding customer requirements and undertaking product development to fulfill customer needs • Expanding rang
Slide 15: GFL positioning in the fluoropolymer market
GFL positioning in the fluoropolymer market • As a result of above strategy, GFL is now seen as • Having a sustained and long term presence in the fluoropolymer market • A reliable supplier of consistent high quality product at competitive prices • Capable of engaging in product development to suppl
Slide 16: GFL’s strategic advantage
GFL’s strategic advantage • One of the most competitive producers of fluoropolymers due to its fully integrated manufacturing operations starting from basic raw materials • Ability to develop new products and grades in a very short period fo time using its R&D capabilities • Unlikely that new intern
Slide 17: The path forward
The path forward 17
Slide 18: Growth in PTFE
Growth in PTFE • GFL has further expanded its monomer and polymer capacity to cater to the growing demand of its products in all geographies • Over the next 6 quarters, GFL expects a ramp up in volumes of the new grades of PTFE which have been developed and introduced in these markets • The timely e
Slide 19: Expansion in New Fluoropolymers
Expansion in New Fluoropolymers • After making successful inroads in the global PTFE markets, GFL is expanding its presence in other fluoropolymer products • Considerable time, energy and resources have been invested over the past two years to develop the technology and build production capacities f
Slide 20: New Fluoropolymers business snapshot
New Fluoropolymers business snapshot • New fluoropolymers include FKM, FEP, PFA, PVDF, Micropowders and PPA • Global market 1,35,000 tpa • CARG 5% - 6% • GFL capacity 6,500 tpa • GFL global market share 4% - 5% (at full capacity) • Annualised turnover at full capacity Rs 600 crores • Annualised EBIT
Slide 21: New Fluoropolymer: FKM
New Fluoropolymer: FKM Substance Name: Fluor Karbon Material Applications: Fuel hose, automative seals and gaskets, o-rings, turbocharger hose, fuel injector, fuel resistance tubes, shaft seals, valve stem seals Global market: 25,000 tpa Annual growth rate: 5% pa Major suppliers: Chemours, 3M, Solva
Slide 22: New Fluoropolymer: PFA
New Fluoropolymer: PFA Substance Name: Per Fluoro Alkoxy Alkane Applications: Chemical resistance lining, tubing, cast film coating, impregnation for high temperature chemical resistance Global market: 5,500 tpa Annual growth rate: 5% pa Major suppliers: Chemours, 3M, Daikin 22
Slide 23: New Fluoropolymer: FEP
New Fluoropolymer: FEP Substance Name: Fluoro Ethylene Propylene Applications: Chemical resistance lining, hook up wire, co- axial cable, LAN cable, film and coating Global market: 29,000 tpa Annual growth rate: 5% pa Major suppliers: Chemours, 3M, Daikin, Donguye 23
Slide 24: New Fluoropolymer: PVDF
New Fluoropolymer: PVDF Substance Name: Poly Vinylidene Fluoride Applications: Electric wire insulation, pipes, connectors, battery binders, architectural coatings, solar panel films Global market: 42,000 tpa Annual growth rate: 5% pa Major suppliers: Arkema, Solvay, Kureha 24
Slide 25: New Fluoropolymer: PPA
New Fluoropolymer: PPA Substance Name: Polymer Processing Aid Applications: Extrusion and blown film applications Global market: 7,000 tpa Annual growth rate: 6% pa Major suppliers: Chemours, 3M 25
Slide 26: New Fluoropolymer: Micro powders
New Fluoropolymer: Micro powders Substance Name: Direct polymerized / irradiated / thermal extruded Applications: Additives for inks, coatings, rubbers, plastics, greases Global market: 25,000 tpa Annual growth rate: 5% pa Major suppliers: 3M, Solvay, Shamrock 26
Slide 27: Entry into Specialty Chemicals - outlook
Entry into Specialty Chemicals - outlook • Major applications: crop protection chemicals and pharmaceutical intermediates • Organic Fluorine (F) molecules are increasingly becoming ingredients in newer crop protection and pharmaceutical molecules due to • Higher efficacy as F has the highest electro
Slide 28: Specialty Chemicals – GFL status
Specialty Chemicals – GFL status • GFL has set up an R&D centre, approved by Ministry of Science and Technology, Government of India, with 4 analytical laboratoris and 2 pilot plants • Using this R&D centre, GFL has developed in-house technology for about 11 molecules on lab, kilo lab or pilot scale
Slide 29: Specialty Chemicals - business snapshot
Specialty Chemicals - business snapshot • GFL strengths: • Nearly 30 years’ experience in safely handling F molecules • In-house availability of host of key building blocks for F molecules • Cost competitive manufacturing due to fully integrated value chain • Annualised turnover at full capacity Rs
Slide 30: Thank you!!
Thank you!! 30
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