Orient Paper & Industries Ltd. · NSE:ORIENTPPR
Orient Paper & Industries — Q1 FY2012 Earnings Presentation
31 slides from Orient Paper & Industries's earnings presentation, Jul 27, 2011
Slide 1: Orient Paper and Industries Limited Analyst Meeting
Orient Paper and Industries Limited Analyst Meeting – July 27, 2011
Slide 2: Business Overview
@? Orient Paper and Industries Limited BUSINESS OVERVIEW
Slide 3: Key Businesses
Key Businesses Cement Cement Electricals Electricals Paper Paper Products Products Products – PPC & OPC – Fans – Tissue paper Manufacturing facilities – CFLs, fluorescent tube – Writing, printing and – Andhra Pradesh lights & luminaries photocopying paper (3 MTPA) Manufacturing facilities
Slide 4: Track Record – Last Years
Track Record – Last 5 Years Growing Turnover Robust EBITDA 2,500 400 358 366 2,175 333 324 2,000 1,769 1,691 300 1,497 255 1,500 (Rs Cr) (Rs Cr) 1,265 200 1,000 100 500 0 0 2006-07 2007-08 2008-09 2009-10 2010-11 2006-07 2007-08 2008-09 2009-10 2010-11 Robust Debt Equity Ratio % of Net Profit Distri
Slide 5: Cement Business Overview
Orient Paper and Industries Limited ~ CEMENT BUSINESS OVERVIEW
Slide 6: Cement Business – Overview
Cement Business – Overview Key Highlights Net Sales Value 1,200 1,033.2 Continues to be one of India’s lowest‐cost 1,000 871.8 894.8 cement producers with one of the highest 733.2 800 EBIDTA margins in the industry (Rs Cr) 591.7 600 Year on year growth rate higher than 400 industry average Inc
Slide 7: Cement Industry – Outlook
Cement Industry – Outlook Except last year, India’s cement demand has been growing at between 10‐12% per year in ratio of 1: 1.2 of GDP growth We believe that last year was an exception and expect robust demand growth since India’s GDP is expected to grow at > 8% Because of major capacity addi
Slide 8: Cement Industry – Outlook
Cement Industry – Outlook Our belief in India Cement industry’s long‐term prospects and the confidence in our ability to control costs, provides us the opportunity to build capacities and be ready for the next up‐cycle Our 3 mtpa greenfiled project in Karnataka is under implementation and is exp
Slide 9: Paper Business Overview
Orient Paper and Industries Limited PAPER BUSINESS OVERVIEW
Slide 10: Paper Business - Overview
Paper Business ‐ Overview Key Highlights Tissue Paper Sales (Volume) 14 Largest tissue paper capacity in India 12.2 Acquired 36,000 tpa caustic chlorine plant in 12 10 ('000 tonnes) FY 09 for diversification & backward integration 8.5 7.5 For the last 3 years performance has suffered 8 6.3 6.6
Slide 11: Paper Business Initiatives
Paper Business Initiatives New Power Plant Setting up a 55 MW power plant to improve the cost efficiencies of the paper & chemical plants – This plant is at an advanced stage of completion and is expected to be operational in the first quarter of the next financial year 11
Slide 12: Paper Business Initiatives – Water Security
Paper Business Initiatives Water Security Scarcity of water during summers has adversely impacted recent performance – Implemented modern technologies to reduce water consumption by ~ 25% – Constructed 2 large water reservoirs with a capacity of 250 million gallons 100mn gallon reservoir 150mn gal
Slide 13: Paper Business Initiatives – Tissue Paper
Paper Business Initiatives Tissue Paper Tissue paper consumption in the country is fast increasing Robust growth in domestic markets coupled with our successful foray in export markets including Europe, USA, Canada, Singapore, Thailand, Dubai, French Guinea, Hong Kong and China, among others pro
Slide 14: Electrical Business Overview
ELECTRICAL BUSINESS OVERVIEW
Slide 15: Electricals Business - Overview
Electricals Business ‐ Overview Key Highlights Net Sales Turnover 700 648.4 One of the leading brands with MS Dhoni as our 600 brand ambassador for Fans 485.6 500 Registered over 30% growth year‐on‐year during (Rs. Cr.) 400 341.4 last 2 years 285.5 300 242.5 Increased our market share rapidly
Slide 16: Electricals Business – Outlook
Electricals Business – Outlook We expect demand for our fans and CFL’s to grow significantly on the back of: – Growing disposable income and changing life style has spurred the demand for electrical appliances – Focus on energy conservation has increased demand of energy efficient products; (inclu
Slide 17: Electrical Business – Initiatives
Electrical Business – Initiatives Increase capacity for Fans Introduce new premium fan varieties and higher wattage CFLs and LED lamps aimed at wider market penetration Diversification into small electrical appliances; to be launched in phases in the current fiscal year 17
Slide 18: Electrical Business – Diversification
Electrical Business – Diversification Exclusive first glance of our exciting range of small electrical appliances Mixer Grinder Range Juicer Mixer Grinders/ food processors A range of electric irons Room Heaters PTC Heaters Air Coolers Water Heaters These products will be launched in phases betw
Slide 19: Financial Overview for Q1 FY 2012
FINANCIAL OVERVIEW FOR Q1 FY 2012
Slide 20: Q1 FY 2012 Results
Q1 FY 2012 Results We are happy to report that despite the challenging business environment, which all of you are aware of, our results for the first quarter for financial year 2011 have been more than satisfactory: 21% 73% 74% Net Sales Profit after Tax EPS Note: The increase shown above is over
Slide 21: Unaudited Financial Results for the Quarter Ended 30th June, 2011
Unaudited Financial Results for the Quarter Ended 30th June, 2011 (Rs. In Cr) Quarter Ended Year Ended June 30, 2011 June 30, 2010 March 31, 2011 Particulars (Unaudited) (Unaudited) (Audited) Gross Sales 594 494 2,175 Net Sales 534 442 1,959 PBIDT 118 81 332 Interest 9 10 42 PBDT 109 70 290 Deprecia
Slide 22: Segment wise Results
Segment wise Results (Rs. In Cr) Quarter Ended Year Ended Particulars June 30, 2011 June 30, 2010 March 31, 2011 (Unaudited) (Unaudited) (Audited) Segment Revenue a) Cement 317 284 1,033 b) Paper & Board 51 21 277 c) Electrical Consumer Durables 165 135 642 d) Others 2 1 6 Total 534 442 1,959 Segmen
Slide 23: Restructuring Proposal
Orient Paper and Industries Limited RESTRUCTURING PROPOSAL
Slide 24: Restructuring Proposal
Restructuring Proposal The Board of Directors of Orient Paper & Industries Limited (OPIL) in its meeting today, approved a proposal to demerge the cement business of OPIL into Orient Cement Limited by way of a classical demerger with mirror shareholding – The demerger is subject to approval of Hon
Slide 25: Restructuring Proposal
Restructuring Proposal The Appointed Date for the Scheme is April 1, 2012 The demerger will be compliant with section 2(19AA) of the Income Tax Act, 1961 The scheme is conditional to approval of shareholders and creditors as required by law and the requisite order of the Hon’ble High Court – T
Slide 26: Classical Demerger - Transaction Structure
Classical Demerger ‐ Transaction Structure Current Structure Promoters* Promoters* Public Public&&Others Others 37.5% 62.5% OPIL OPIL Proposed Structure Promoters* Promoters* Public Public&&Others Others Promoters* Promoters* Public Public&&Others Others 37.5% 62.5% 37.5% 62.5% 37.5% 62.5% OPIL OPIL
Slide 27: Key Benefits of Restructuring
Key Benefits of Restructuring Benefits of Classical Demerger Creation Creation of of aa pure‐play pure‐play cement cement company company providing providing existing existing Pure Play Cement 9 shareholders shareholdersananopportunity opportunityto toparticipate participatedirectly directlyinin
Slide 28: Outline of Demerger Process
Outline of Demerger Process The Board of Directors decided to proceed with the “Classical Demerger of the Cement Business with Mirror Shareholding”, taking on record the valuers’ report, fairness opinion and draft of the scheme of arrangement and recommend the share entitlement ratio Draft schem
Slide 29: Outline of Demerger Process
Outline of Demerger Process After final hearing and sanction of scheme, the scheme will be filed with the Registrar of Companies Stock exchanges and SEBI are then approached for final listing approval and relaxation from requirements of clause 19(2)(b) of SCRA for listing of Orient Cement withou
Slide 30: Key Advisors
Key Advisors Transaction TransactionAdvisors Advisors Kotak KotakInvestment InvestmentBanking Banking Legal LegalAdvisors Advisors Khaitan Khaitan&&Co Co Report ReportononShare ShareEntitlement EntitlementRatio Ratio Doshi, Doshi,Chatterjee, Chatterjee,Bagri Bagri&&Co, Co,Chartered CharteredAccounta
Slide 31: Thank You!
Orient Paper and Industries Limited THANK YOU!
Orient Paper and Industries — Q1 FY2012 Earnings Presentation on 6ix