Alkali Metals Ltd. · NSE:ALKALI
Alkali Metals — Investor Presentation (January 2010)
27 slides from Alkali Metals's investor presentation, January 2010
Slide 1: Alkali Metals Limited Information Memorandum
January, 2010 ALKALI METALS LIMITED | Information Memorandum
Slide 2: Contents
Contents Slide No Executive Summary 3 About Alkali Metals 5 Investment Rationale 9 Key USPs 12 Key Financials 19 Industry Overview 23
Slide 3: Executive Summary
Executive Summary Alkali Metals is a leading manufacturer in the specialty and fine chemicals space - A specialty chemicals company manufacturing more than 246 products collaboratively with a variety of customers in domestic and overseas market - Company's products find wide application and use in v
Slide 4: About Alkali Metals
About Alkali Metals
Slide 5: About Alkali Metals
‘ About Alkali Metals Corporate Information Locations Hyderabad, Visakhapatnam, India Employees 600 Manufacturing Specialty chemicals Products Sodium Derivatives, Pyridine Derivatives, Fine Chemicals and Custom Synthesis Products 88 8 8 Key personnel Mr. Y.S.R. Venkata Rao — Managing Director Tay G
Slide 6: Performance & Shareholding Snapshot
Performance & Shareholding Snapshot Current Details Shareholding Pattern % holding CMP (Rs/share) 137 Promoter & Promoter Group 70% Market Cap (Rs. Mn) 1380 MF/FIs/Fils NIL 52 week High (Rs/share) 399 Bodies Corporate 15% 52 week Low (Rs/share) 119 Individuals 9.5% Others 5.5% 12 month stock perform
Slide 7: Product Overview
i Product Overview Product Segment Alkali Metal Derivatives Products Sodium amide, Sodium azide, Sodium hydride, Sodium tertiary butoxide, Sodium methoxide / _ ethoxide, Hexamethy! disilazane sodium salt, Potassium metal derivatives End-use Application Pharma Intermediates (Select Therapies) Anti Re
Slide 8: Investment Rationale
Investment Rationale
Slide 9: Investment Rationale
Investment Rationale.... Alkali Metals is a leading player in its lines of business (i.e., ‘specialty’ chemicals space) catering to the requirements of some of the leading pharma giants across the world Bouquet of more than 246 products from specialized chemicals developed via in house research faci
Slide 10: Investment Rationale
Investment Rationale Current below industry average utilizations owing to inadequate marketing initiatives to provide room for significant revenue synergies going forward - Current installed capacity of 4,400 MTPA at two sites in Hyderabad (one each for domestic and exports market) — Scale provides
Slide 11: Key USPs
Key USPs
Slide 12: Sound and diversified client base
Sound and diversified client base Domestic Market Export Market m About 50% of output is marketed to meet the needs of m About 50% of output is exported to leading domestic industry companies in Japan, Europe, South America and USA @ Leading customers include: — Dr Reddy's Laboratories @ Leading cus
Slide 13: Opportunity to scale up existing installed capacity
: Opportunity to scale up existing installed capacity 80% | 70% 60% - 50% - 40% - 30% - 20% 10% - 0% 38% Capacity Utilization ¥ 15% —#— Aggregate —¢e— Sodium Derivatives —e— Pyridine Derivatives —s— Fine chemicals @ Given the average industry utilization rate hovering between 60-75% (benchmarking wi
Slide 14: Strong focus on technology and product quality
Strong focus on technology and product quality as 8 8 @ Focus on Technology In-house R&D with requisite expertise and recognition from the Dept. of Science and Technology, Govt. of India All products are developed with in-house technology Has developed technology for sodium metal based on it’s in— h
Slide 15: Foray into value-added products space and increased CRAMS focus
Foray into value-added products space and increased focus on the CRAMS segment ® Going forward, Alkali Metals intends to tap the value-added products space by entering into long- term manufacturing contracts with international customers — Company March 2010 is setting up a 672 MTPA manufacturing uni
Slide 16: Experienced management team at the helm
Experienced management team at the helm Mrs. Y. V. Lalitha Devi — Chairperson NE and ID Dr. Y. V. S. Murty — Promoter NE and ID Mr. Y. S. R. Venkata Rao — Promoter Managing Director NE - Non Executive ID — Independent Director Mr. Ch. S, Prasad — NE and ID ya \ Aged 74 years. She is a Non Executive
Slide 17: Experienced management team at the helm
Experienced management team at the helm Mr. P.C. Patnaik — NE and ID Mr. G. Jayaraman NE & ID Dr. J. S. Yadav NE & ID NE - Non Executive ID — Independent Director Ne (— Aged 73 years. He is Chemical Engineer and had been a Scholar at IIT and at >) Carnegie Mellon University. He brings in around 48 y
Slide 18: Key Financials
Key Financials
Slide 19: Key Assumptions
Key Assumptions | FY11E FY12E FY13E Installed Capacity (MT) Sodium derivatives 3400 3400 3400 Pyridine derivatives 600 600 600 Fine chemicals 400 400 400 Contract Manufacturing 672 672 672 Capacity Utilization (%) Sodium derivatives 43% 47% 53% Pyridine derivatives 18% 19% 20% Fine chemicals 25% 26%
Slide 20: Key Financials
Key Financials P&L Summary (Rs. Mn) FY08 FY09 FY10E FY11E FY12E FY13E Revenues 618 638 580 1185 1465 1608 Growth (y-o-y) 2.9% 3.3% (9.1%) 104.2% 23.7% 9.8% EBITDA 126 130 140 308 374 415 EBITDA margin 20.4% 20.4% 24.1% 26.0% 25.5% 25.8% PAT 80 87 90 151 181 202 PAT margin 12.9% 13.6% 15.6% 12.8% 12.
Slide 21: Comparable Peer Analysis
1 Comparable Peer Analysis @ Step 1: Identification of comparable listed peers — Specialty chemicals and active players in the CRAMS space Peer Selection Approach @ Step 2: Zero In on similar comparables taking on product similarity basis FY10E FY11E FY10E FY11E FY10E FY11E Jubiliant Organosys 48,83
Slide 22: Industry Overview
Industry Overview
Slide 23: Chemical industry - Global
Chemical industry - Global The global chemical industry, estimated at US$ 2.4 trillion, is one of the fastest growing sectors of the manufacturing industry. = Market Segmentation — Basic Chemicals — are high volume, low value-ad commodity chemicals. Include organic, inorganic chemicals, bulk petroch
Slide 24: Chemical industry - Domestic
Chemical industry - Domestic @ Indian chemical industry size is estimated at USD 35 Bn, expected to Indian Chemical Industry — by segments grow at a CAGR of 15% against global rate of 8.7% m Dominated by Basic chemicals (57%), followed by Specialty (26%) and Knowledge (17%) 17% Basic Chemicals ™ Exp
Slide 25: Contract Manufacturing Opportunity
1 Contract Manufacturing Opportunity Nicholas Contract manufacturing for API and Piramal 45 AMO, Allergan etc. formulations Contract manufacturing for Intermediated and Dishman 30 Solvay, GSK etc. API Shasun 30 Eli Lilly, GSK, Novartis Contract manufacturing for API Contract manufacturing for Interm
Slide 26: Disclaimer
i Disclaimer This presentation contains certain forward looking statements regarding the business prospects of Alkali Metals Ltd. (‘the Company’), which are subject to a number of risks and uncertainties and the actual results could materially differ from those in said statements. The risks and unce
Slide 27: Thank You
Thank You