Camlin Fine Sciences Limited · NSE:CAMLINFINE
Camlin Fine Sciences — H1 FY19 Earnings Presentation
40 slides from Camlin Fine Sciences's earnings presentation, Nov 16, 2018
Slide 1: Intimation to BSE and NSE under SEBI LODR
> Camlin Fine Sciences Date: 16/11/2018 To, To, BSE Limited, The Manager, 25, P. J. Towers, Listing Department, Dalal Street, National Stock Exchange of India Ltd., Mumbai — 400 001 Exchange Plaza, Bandra Kurla Complex, Ref: Company Scrip Code: 532834 Bandra (East), Mumbai- 400051 Ref: Symbol: CAMLI
Slide 2: Analyst Meet H1 / Q2-FY19
Bringing science to everyday life H1 / Q2-FY19
Slide 3: Introduction of Speakers
2 Introduction of Speakers Ashish Dandekar Nirmal Momaya Santosh Parab Managing Director Non-Executive Director Chief Financial Officer • B.A. in economics and • Qualified CA with over 25 • A commerce graduate and a Management graduate from years of experience in the field CA with over 24 years of T
Slide 4: Introduction of Speakers (Global Business Heads)
3 Introduction of Speakers (Global Business Heads) Dr. Massimo Cupello Castagna Jennifer Igou Gautum Sapute Managing Director - CFS Europe General Manager – CFS North Head Operations (Vanillin) – S.p.A America LLC CFS Wanglong Flavours (Ningbo) Co. Ltd Luciano Monteiro Arturo Paulin General Manager
Slide 5: Camlin Fine Sciences (CFS) Snapshot
4 Camlin Fine Sciences (CFS) Snapshot Financials FY18 (INR Mn) Revenue Over 30 years experience Manufacturing facilities in 7,228 providing innovative solutions with a competitive India, Italy, Brazil, Mexico and China Unique producer of fully vertically integrated products advantage in fine science
Slide 6: Company Overview
= Camlin Fine Sciences Bringing science to everyday life COMPANY OVERVIEW
Slide 7: Company Overview
6 Company Overview • A vertically integrated company, engaged in research, development, manufacturing, commercialising, and marketing of speciality chemicals and blends which are used in a wide array of: FY18 Operational Revenue Breakup Food, feed, Others Flavours & 1% animal and pet Pharma Agro Che
Slide 8: Vision, Mission and Values
7 Vision, Mission and Values VISION To be the globally preferred, trusted and VALUES integrated provider of reliable and innovative Credible shelf life solutions, aroma ingredients and Passionate performance chemicals. Collaborative MISSION To have an in-depth product Reliable technical know-how, it
Slide 9: Key Milestones
8 Key Milestones 1993 • Camlin Fine Chemical division incorporated in 2015 • Commencement of production and marketing of Camlin Ltd. to manufacture antioxidants for the antioxidant blends in Brazil through 100% subsidiary ‘CFS global market. do Brasil Ltda’. • Ultra-modern manufacturing plant was se
Slide 10: Key Clients
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Slide 11: Global Presence
10 Global Presence Denmark Ravenna, Italy Tarapur Iowa, USA Yuyao, Khopoli Mexico city Cuba Zhejiang, China Guatemala Mahad Colombia Mumbai Peru Indaiatuba, Brazil Chile Owned Plants Argentina Outsourced Manufacturing Blending Facility R&D/ Food Labs Marketing offices
Slide 12: Current Entity Structure
11 Current Entity Structure Camlin Fine Sciences Ltd. 100% 100% 100% 100% 100% 100% 51% CFS do Brasil Indústria, CFS International CFS Antioxidantes CFS Pahang Asia Pte. CFCL Mauritius Pvt. Comércio, Importação Solentus North Trading (Shanghai) CFS North America De Mexico S.A. De Ltd. Ltd. (Mauritiu
Slide 13: R&D and Application Labs across geographies
12 R&D and Application Labs across geographies Application Labs R&D Labs • Developing customized • Development of new blends for various products and value applications additions to existing • Technical assistance and Iowa, USA Ravenna, Italy products development support to • Product and process cus
Slide 14: Key Strengths
13 Key Strengths Global player in shelf-life solutions across food, feed, pet-food and Bio Diesel 1 Preferred Partner for manufacturing Local presence in global markets customized products 8 2 Experienced promoters and Advanced R&D facilities & Application professional management team 7 3 Labs 6 4 P
Slide 15: Growth Strategy
14 Growth Strategy Shift in focus from anti-oxidant ingredients Continue to grow the Vanillin business to anti-oxidant blends and additives Capacity expansion through new plant at Increase revenue contribution Dahej SEZ from Performance Chemicals business Integrate the strategic acquisitions Improvi
Slide 16: Business Overview
= Camlin Fine Sciences Bringing science to everyday life BUSINESS OVERVIEW
Slide 17: Business Mix
16 Business Mix Shelf-Life Solutions Performance Chemicals Aroma Chemicals (50%) (34%) (15%) Food Pet food Pharma intermediates Agrochemicals Feed & food Consumer goods Animal Nutrition Rendering Dyes and colours Petrochemicals Incense Sticks Flavours & Fragrances Aqua Culture Bio-fuels Pharmaceutic
Slide 18: Fully integrated across the value chain
17 Fully integrated across the value chain Key Raw Material Commodity Phenol chemical Diphenols Hydroquinone Catechol Performance Shelf Life Solutions Aroma Chemicals Ascorbyl Palmitate1 TBHQ MEHQ Guaiacol Guethol Other derivatives of BHA HQ Veratrole Vanillin Blends Other derivatives of Catechol Et
Slide 19: Shelf-Life Extension Solutions
18 Shelf-Life Extension Solutions Total Operational Revenue (INR Mn) Shelf Life Extension Solutions Blends 4,000 3,612 3,500 • Primarily include anti-oxidants chemicals and anti-oxidant blends 3,000 • Sourced from natural or synthetic substances 2,500 • Available both in liquid and dry solutions 2,0
Slide 20: Performance Chemicals
19 Performance Chemicals Total Operational Revenue (INR Mn) 3,000 2,457 2,500 2,148 • Products are speciality chemicals and have wide applications in sectors such 2,000 as food flavouring, pharmaceuticals intermediate, dyes, etc. 1,500 • CFS has entered into a long term preferred supply agreement wi
Slide 21: Aroma Chemicals
20 Aroma Chemicals Total Operational Revenue (INR Mn) 1,200 1,095 1,000 800 • 3rd largest vanillin manufacturers in the world with 100% backward integration 600 • CFS has its manufacturing base in China and India. 380 • Leveraging the existing global presence in shelf life solutions for expanding 40
Slide 22: Country Overview
= Camlin Fine Sciences Bringing science to everyday life COUNTRY OVERVIEW
Slide 23: CFS India
22 CFS India • R&D Centre at Tarapur that has developed many new Diphenol- downstream products • Shelf Life Solutions Development, Testing and Applications Lab at Mumbai that works on testing food formulations and blends for the food, pet food and animal nutrition industries. • Provides technical ex
Slide 24: CFS India
23 CFS India
Slide 25: Update on Dahej Project
24 Update on Dahej Project Work / Activities completed • Financial Closing achieved Time lines • Basic Process & Mechanical Equipment Engineering • Majority of long lead equipment (process & utility) – Orders placed • Civil / Structural Engineering for major non-process buildings • Civil Contractors
Slide 26: CFS Mexico
25 CFS Mexico • Acquire 65% stake in Dresen Quimica SAPI De CV, Mexico in May 2016 • Primarily manufactures Blends and Additives • Key customer segments: Oil, Poultry, Diary, Rendering, Aqua, Pet food, Cuba Mexico city Swine, Vitamin Pre-mix Republic of • Total Market size is ~USD 200 Mn and CFS Mex
Slide 27: CFS Mexico
SCamlin Fine Sciences Bringing sclence to everyday life
Slide 28: CFS Europe
27 CFS Europe Performance Chemicals • Acquired the manufacturing facility at Ravenna, Italy in 2011, which provides captive requirements of key raw materials i.e. Hydroquinone and Catechol • Capacity utilization achieved at 80% in H1-FY19 • The company has initiated cost reduction program, impact of
Slide 29: CFS Europe
SCamlin Fine Sciences Bringing sclence to everyday life
Slide 30: CFS Brazil
29 CFS Brazil Shelf Life Solutions • Formed in 2013 for Blends and the production started in 2015 • Has an application lab in Indaiatuba – Brazil for customizing blends for Shelf-life Extension Solutions. • Handles distribution of bulk antioxidants and vanillin. • Key customer segments: Oil, Poultry
Slide 31: CFS Brazil
30 CFS Brazil
Slide 32: CFS Wanglong
31 CFS Wanglong • CFS along with CFS Europe acquired 51% stake in Ningbo Wanglong Flavours in 2017 which had an operational plant since 2011. • This acquisition makes CFS the 3rd largest producer of Vanillin • Located in Grade 1 Industrial zone in the city of Yuyao Zhejiang Province, China. • It man
Slide 33: CFS Wanglong
32 CFS Wanglong
Slide 34: CFS North America
33 CFS North America Shelf Life Solutions • Formed in October 2015 as a wholly owned subsidiary Market focus • Food - Bulk oils (synthetic antioxidants), Meat & poultry (natural Iowa, USA antioxidants) • Pet food - Rendering for pet food (natural antioxidants), Rendering for animal feed (synthetic a
Slide 35: CFS North America
( CFS North America Camilir Bringing sclence to everyday life
Slide 36: Financial Overview
= Camlin Fine Sciences Bringing science to everyday life FINANCIAL OVERVIEW
Slide 37: Q2-FY19 Consolidated Income Statement (IND-As)
36 Q2-FY19 Consolidated Income Statement (IND-As) Total Operational Revenue (INR Mn) EBITDA (INR Mn) and EBITDA Margins (%) 2,500 8.55% 200 7.66% 9.0% 2,000 8.0% 150 7.0% 1,500 6.0% 100 5.0% 1,000 2.76% 4.0% 3.0% 500 50 2.0% 1,461 1,814 2,013 40 139 172 1.0% - - 0.0% Q2-FY18 Q1-FY19 Q2-FY19 Q2-FY18
Slide 38: H1-FY19 Consolidated Income Statement (IND-As)
37 H1-FY19 Consolidated Income Statement (IND-As) Total Operational Revenue (INR Mn) EBITDA (INR Mn) and EBITDA Margins (%) 4,000 8.13% 400 9% 7% 3,000 200 5% 3% 2,000 - -2.64% 1% 2,869 3,827 -76 311 -1% 1,000 -200 -3% H1-FY18 H1-FY19 H1-FY18 H1-FY19 EBITDA (INR Mn) EBITDA Margins (%) PAT (INR Mn) a
Slide 39: Three Year Snapshot – Financial Highlights
38 Three Year Snapshot – Financial Highlights Total Operational Revenue (INR Mn) EBITDA* (INR Mn) 8,000 7,228 1,000 918 6,000 5,042 5,469 800 4,000 600 400 282 2,000 200 126 - - FY16 FY17 FY18 FY16 FY17 FY18 Profit After Tax (INR Mn) Earnings Per Share (INR) 400 358 5.00 3.73 4.00 300 3.00 200 2.00
Slide 40: Thank You
Thank... | You | ~