Slide 1: Corporate Presentation August 2020
NSE: GRAPHITE, BSE: 509488 Corporate Presentation August 2020
Slide 2: Important Notice
Important Notice Forward Looking Statements This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Graphite India’s future business develop
Slide 3: Discussion Agenda
Discussion Agenda Investment Highlights_______________________________________ 4 -5 Milestones _______________________________________________ 6 Business Overview _________________________________________ 7 - 12 Financial Performance ______________________________________ 13 - 18 Covid-19 Impact and
Slide 4: Investment Highlights
Investment Highlights Graphite India is globally well positioned through its product quality, scale of operations and manufacturing platform base Ranked 3rd Largest Leading Graphite 98,000 mt Graphite Electrode Electrode Manufacturer Capacity with Plants at Manufacturer in the in India three Locatio
Slide 5: Investment Highlights
Investment Highlights Global Market Position Best-in-Class Operations Attractive Industry Dynamics Strong Financial Performance ❖ Largest Indian producer of ❖ High quality; around 46% of ❖ Consolidated industry with ❖ Consistent cash flows to support graphite electrodes by total electrode production
Slide 6: Milestones
Milestones Over 50 Years of Experience in the Graphite Electrode Industry -Backward integration Further Predecessor through expanded company formed acquisition of Durgapur plant by Bangur family Fully integrated two CPC capacity from Expanded 34K to 54K MT and Great Lakes plant established manufactu
Slide 7: Business Overview: Highlights
Business Overview Graphite India Graphite and Carbon* Others* 98% 2% • Core expertise in value-added Ultra-High Power (UHP) electrodes • Power generation capacity of 18MW through hydel route. It is used primarily • 98K tonnes/year (TPA) capacity, with flexibility to produce all grades of for outside
Slide 8: Strategically Located Manufacturing Facilities
Business Overview Strategically Located Manufacturing Facilities Caters to European Cater to global Countries markets Barauni Durgapur Nurnberg Nasik ❖ The Indian plants are located close to the Graphite India is the largest Indian producer of three main ports of India, offering logistic graphite el
Slide 9: Diversified Premier Global Customer Base
Business Overview Diversified Premier Global Customer Base CANADA – ALTA STEEL ARCELOR MITTAL ( DOFASCO) NORTH AMERICA - TURKEY - ARCELOR MITTAL ( CONTRECOEUR) NUCOR GR. DILER /YAZICI SDI GR., SSAB, AFRICA - : JAPAN – T NORTH STAR BLUESCOPE, EGYPT – EZDK OKYO STEEL STERLING STTEL, MOROCCO – MAGHREB
Slide 10: Global Player with Strong Profitability
Business Overview Global Player with Strong Profitability Graphite Electrode Capacity (in thousand tonnes / Year)2 GIL Exports1 53.2% 54.0% 44.4% 4,243 46.0% 37.4% Rs. Crore 230 210 98 96 80 1,231 1,423 857 689 GrafTech Showa Denko Graphite India Tokai Carbon HEG 2016 2017 2018 2019 2020 Total Expor
Slide 11: Group Organizational Structure
Business Overview Group Organizational Structure Graphite India Limited Carbon Finance Graphite Limited International B.V Bavaria Bavaria Carbon Bavaria Carbon Graphite Cova Electrodes GmbH Holdings GmbH Specialties GmbH GmbH Incorporated Incorporated in Incorporated in India Netherlands in Germany
Slide 12: Senior Management Team
Business Overview Senior Management Team Key Executives Background K.K. Bangur • Over 31 years of experience in managing the affairs of companies and its business activities Chairman • Has been a Director of Graphite India since July 1988 and Chairman since July 1993 • Chairman of the Shareholders/I
Slide 13: Consolidated Financial Performance
Consolidated Financial Performance Q4 y-o-y Q3 q-o-q Year Ended y-o-y Growth Growth Growth (Rs. Crore) FY2020 FY2019 FY2020 FY2020 FY2019 Comments (%) (%) (%) Net Sales 602 1,693 (64%) 643 (6%) 3,094 7,858 (61%) (Excluding Other Income) Lower volumes and Other Income 23 70 (67%) 43 (47%) 174 210 (17
Slide 14: Standalone Financial Performance
Standalone Financial Performance Q4 y-o-y Q3 q-o-q Year Ended y-o-y Growth Growth Growth (Rs. Crore) FY2020 FY2019 FY2020 FY2020 FY2019 Comments (%) (%) (%) Net Sales 548 1,390 (61%) 597 (8%) 2,875 6,737 (57%) (Excluding Other Income) Lower volumes and Other Income 18 63 (71%) 42 (57%) 157 197 (20%)
Slide 15: Annual Performance Trends
Annual Performance Trends Consolidated Standalone 6,737 7,858 Net Sales 2,983 2,875 3,291 3,094 FY18 FY19 FY20 FY18 FY19 FY20 5,233 4,403 Operating Profit 67% 65% 1,533 1,441 95 62 47% 49% 3% 2% FY18 FY19 FY20 FY18 FY19 FY20 2,806 3,396 Net Profit 43% 42% 1,032 914 45 31 31% 32% 1% 1% Margins% 15 FY
Slide 16: Leverage Profile
Leverage Profile Significant financial flexibility available for future organic / inorganic growth Consolidated Leverage Profile Standalone Leverage Profile (Rs. Crore) Mar-20 Dec-19 Sep-19 June-19 Mar -19 (Rs. Crore) Mar- 20 Dec- 19 Sep- 19 June- 19 Mar -19 Cash & Cash Cash & Cash 2,424 2,523 2,327
Slide 17: Annual Segment Performance
Annual Segment Performance Consolidated Segment Performance Standalone Segment Performance Full Year y-o-y Full Year y-o-y (Rs. Crore) FY2020 FY2019 Growth (%) (Rs. Crore) FY2020 FY2019 Growth (%) Graphite and Carbon 2,995 7,690 (61)% Graphite and Carbon 2,780 6,575 (58)% Others 99 170 (42)% Others
Slide 18: Quarterly Segment Performance
Quarterly Segment Performance Consolidated Segment Performance Standalone Segment Performance Q4 y-o-y Q3 q-o-q Q4 y-o-y Q3 q-o-q Growth Growth Growth Growth (Rs. Crore) FY2020 FY2019 FY2020 (Rs. Crore) FY2020 FY2019 FY2020 (%) (%) (%) (%) Graphite and Carbon 577 1,663 (65)% 625 (8)% Graphite and Ca
Slide 19: COVID-19 Impact and Business Response
COVID-19 Impact and Business Response • Covid-19 caused an unprecedented health and economic crisis around the globe • Complete or partial lockdown of countries disrupted global economic activities Covid-19 • Overall economy slowdown and lower manufacturing activity leading to production cuts and de
Slide 20: COVID-19 Business Impact and Position
COVID-19 Business Impact and Position • The immediate impact on the business due to closure of factories and offices coupled with transportation challenges resulted in the muted sales in last week of March 2020 • The company started partial operations from mid-April onwards, however due to prolonged
Slide 21: Global Steel and Graphite Electrode Industry
Industry Dynamics Global Steel and Graphite Electrode Industry Global Steel Production Process Wise Steel Production 2019 1,814 1,869 1,732 5.5% 1,621 1,629 32.4% 43.8% Million Tonnes 28.0% 28.8% 27.7% 59.1% 25.1% 25.3% 71.9% 89.6% 94.5% 485 522 518 67.6% 407 412 56.2% 40.9% 27.7% 10.4% 2015 2016 20
Slide 22: Steel Industry Outlook and Dynamics
Steel Industry Outlook and Dynamics ▪ World crude steel production was 443 Mt in Q1 CY2020, a decline of 1.4% as compared to Q1 CY2019 ▪ The EU produced 38.3 Mt of crude steel in Q1 CY2020, a decline of 10% compared to Q1 CY2019. EU steel demand continues to be impacted due to decline in manufacturi
Slide 23: Graphite Electrode Industry
Graphite Electrode Industry ▪ Since 2016 China has closed about 300 million tonnes of outdated and highly polluting steel production capacity but around 908 million tonnes still remain. Such closures are being replaced by environment friendly electric arc furnaces (EAF’s) which is supported by incre
Slide 24: Industry Dynamics
Industry Dynamics Over the years, China remains the biggest crude steel producer with a 53.3% share in 2019 vs 45.4% in 2010 & 18.1% in 2001 Global Steel Production 2001 Global Steel Production 2010 Others China Others 15.7% 18.1% North America 11.8% China India North America 7.9% 45.4% 3.3% 14.3% C
Slide 25: EAF Steel Production Process
Industry Dynamics EAF Steel Production Process Electric Arc Furnace Graphite Electrodes Electrode Clamp/Power Supply Water Cooled Roof Molten Steel Slag Door Arc Zone EBT(Eccentric Bottom Tap Hole) Hearth Ladle Tilting Cylinder Rack & Pinion LTC(Ladle Transfer Car) ❖ An electric arc furnace (EAF) is
Slide 26: Graphite India Limited contact details
Graphite India Limited (CIN: L10101WB1974PLC094602) 31 Chowringhee Road, Kolkata 700 016 Phone: +91 33 4002 9600 Fax: +91 33 4002 9676 www.graphiteindia.com M.K. Chhajer +91 33 40029622 Graphite India Limited mkchhajer@graphiteindia.com Ravi Gothwal / +91 22 6169 5988 Vikas Luhach Churchgate Partner