Atul Limited · NSE:ATUL
Atul — Shareholder Meeting (July 2018)
34 slides from Atul's shareholder meeting presentation, Jul 27, 2018
Slide 1: Proceedings of Annual General Meeting 2018
‘On the other side of resistance is the flow.’ ~ Guy Finley Proceedings of Annual General Meeting 2018 July 27, 2018
Slide 2: Welcome
Welcome Miles to go... Parnera hillock, Atul village
Slide 3: Founder Shri Kasturbhai Lalbhai
Founder Shri Kasturbhai Lalbhai Ethics Perseverance Envisioning Attention to detail Larger purpose (1894 – 1980) 1 | 11
Slide 4: Sales and PBT from operations
Sales and PBT from operations ` cr +55% +112% 3,050 397 +97% 1,964 +434% 187 998 35 2007-08 2012-13 2017-18 2007-08 2012-13 2017-18 Sales PBT from operations 2 | 11
Slide 5: Oil prices
Oil prices 115 USD | barrel 110 108 87 85 82 84 69 58 47 49 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 source: Thomson Reuters, average price for the respective years 3 | 11
Slide 6: Borrowings
Borrowings ` cr 355 351 302 281 155 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 4 | 11
Slide 7: Subsidiary and associate companies
Subsidiary and associate companies 80 76 Sales 20 25 PBT 10 ` cr 21 57 20 19 8 60 55 15 48 15 15 14 15 12 6 40 35 12 10 6 10 5 4 20 8 5 6 5 3 3 3 2 4 0 0 0 0 13-14 14-15 15-16 16-17 17-18 13-14 14-15 15-16 16-17 17-18 Atul Bioscience DPD 40 15 80 73 20 32 65 26 59 30 10 60 15 23 10 15 19 9 43 14 14
Slide 8: Anaven
Anaven
Slide 9: Foreign subsidiary companies
Foreign subsidiary companies •• UK • USA • China UAE • • • Brazil Atul Europe was ranked 19th in the fastest growing Indian companies in UK for 2016-17 6 | 11
Slide 10: Education
Education Atul Vidyalaya Atul Vidyalaya Atul Vidyamandir Kalyani shala Nurtured ~7,200 young minds through education
Slide 11: Empowerment
Empowerment Atul Institute of Vocational Excellence Empowered ~11,000 students through vocational training courses
Slide 12: Empowerment: Urmi
Empowerment Urmi
Slide 13: Empowerment
Empowerment ITI Bilimora ITI Ankleshwar ITI Sagbara ITI Bilimora ITI Ankleshwar
Slide 14: Infrastructure
Infrastructure Constructed ~3,500 individual household toilets and ~1,500 underway
Slide 15: Market capitalisation
Market capitalisation Based on yearly highest price ` cr 9,148 7,383 5,354 4,491 1,439 1,401 646 714 371 222 338 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 7 | 11
Slide 16: Dividend
Dividend % 120 100 100 85 75 60 45 45 40 30 30 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 8 | 11
Slide 17: Q1 Financials
Q1 Financials ` cr 2018-19 2017-18 Q1 Q1 Q4 Income 901 695 892 EBIDTA % 19% 12% 17% PBT from operations 127 52 125 PAT 84 34 99 RoCE % 27% 12% 32% 9 | 11
Slide 18: Projects
Projects ` cr Project type Investment Expansion (3) 304 Debottlenecking (2) 25 Environment (2) 74 Total 403 10 | 11
Slide 19: Yangtze river protection
Yangtze river protection In a new development the Chinese Government is keen to protect Yangtze river and declared some areas of the river as a protective zone. No factories are likely to be established within 1 km from the river. This may also impact existing chemical factories set up in those regi
Slide 20: Serving diverse customers
Glu Serving diverse customers —_— wvaudan® 4 ENGAGING Better, Ail- Wye SENSES The Chemical Company BRIGHT SCIENCE. BRIGHTER LIVING. always inspiring more... Bed UOREAL WERE fincicr PLG MADE TO FEEL GOOD. ‘THE CHOICE OF CHAMPIONS: Power is nothing without control Fouching lives, improving life. AC VI
Slide 21: Serving diverse customers
Serving diverse customers —_— G dow AgroSciences ha [joe ji ufarm coRpORStion Science for growth The miracles of science’ — Grow abettertomorrow. An Employee-Owned Company ic. Cipla abo bvie AUROBINDO ~'Ip' Life : GlaxoSmithKline © ALTANA Gamesa IS|HETERO a Where the future'started yesterday::: KANS
Slide 22: Other information shared
Other information shared
Slide 23: Projects and Volume growth
Projects and Volume growth ` cr Projects Amount YoY Volume growth Main projects (9) 425* 16% 17%* Others (small) 200 12% Environment (50 nos) 150 8% Total 775 5% 3% * of which `180 cr (2 nos) are underutilised 13-14 14-15 15-16 16-17 17-18 18-19 Q1 * with respect to Q1 17-18 1 | 11
Slide 24: RoCE
RoCE 31% 27% 22% 12% Avg CE – 1,766 Avg CE – 1,814 Avg CE – 1,890 Avg CE – 1.369 PBIT - 55 PBIT - 406 PBIT - 128 PBIT - 423 Q1 17-18 2017-18 Q1 18-19 Highest achieved in 2015-16 CE: Capital employed 2 | 11
Slide 25: Key performance ratios
Key performance ratios Ratios 13-14 14-15 15-16 16-17 17-18 18-19 Q1 Debt equity 0.4 0.3 0.2 0.1 - - Fixed asset turnover 1.9 2.0 3.1 2.4 2.6 3.0 Turnover to average capital employed 1.9 2.0 1.8 1.6 1.7 1.8 Current 1.5 1.5 1.4 1.9 2.3 2.3 3 | 11
Slide 26: Future performance
Future performance ` cr Project type Investment Approved Expansion (3) 304 Debottlenecking (2) 25 Environment (2) 74 Under consideration Various 4 | 11
Slide 27: Sub-segment-wise performance
Sub-segment-wise performance Business Status Aromatics Performance has improved in Q1 2018-19. Bulk chemicals Augmentation via debottlenecking in two products will be completed in Q2. Colors Capacity expansion of two products has been approved. Crop Protection MCA availability at Atul site will bene
Slide 28: China situation
China situation What if the companies restart? – Their cost will be relatively higher, increasing competitiveness of the companies in India. Dependence for raw materials – ~5% of total purchase from China – Planning to backward integrate selectively 6 | 11
Slide 29: Anaven
Anaven High purity MCA Acetic acid Chlorination Hydrogenation Distillation No air pollution No mother liquor generation Cl2 H2 from Atul from Atul Phase – I is expected to be operational by end of 2018-19. 7 | 11
Slide 30: Dividend
Dividend 140 40 120 120 35 100 100 30 100 85 25 80 75 20 60 60 45 45 15 40 40 30 30 10 % 20 5 ` cr * 9 9 12 13 13 18 22 25 30 30 36 0 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 * excluding dividend distribution tax 8 | 11
Slide 31: ESOP
ESOP At this time, the Company does not have ESOP. Compensation comprises fixed and variable pay (linked to profit and sales) for all managers. Reward and recognition scheme for middle management. Humari Pehel (suggestion scheme) for workmen. 9 | 11
Slide 32: Renewable energy
Renewable energy ~3 % of total power generation from renewable energy sources 10 | 11
Slide 33: Q1 Subsidiary and associate companies
Q1 Subsidiary and associate companies Sales PBT ` cr 19 6 4 18 Q1 17-18 Q1 18-19 Q1 17-18 Q1 18-19 Atul Bioscience DPD 10 9 15 21 8 6 16 10 6 4 5 2 4 0 1 0 Q1 17-18 Q1 18-19 Q1 17-18 Q1 18-19 Amal Rudolf Atul Chemicals 11 | 11
Slide 34: Thank you
Thank you