Camlin Fine Sciences Limited · NSE:CAMLINFINE
Camlin Fine Sciences — HDFC Securities' Investor Forum 2019
40 slides from Camlin Fine Sciences's conference presentation, December 2019
Slide 1: Camlin Fine Sciences exchange intimation cover letter
> Camlin Fine Sciences O5't December, 2019 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;
Slide 2: Investor Presentation November 2019
INVESTOR PRESENTATION November 2019
Slide 3: Executive Summary
2 Executive Summary 2 Company Overview Financials FY19 Consolidated (INR Mn) • Camlin Fine Sciences Limited (CFS), formed in 2006 after demerging the Operational fine chemical business from Camlin Ltd., is a vertically integrated company Revenue engaged in research, development, manufacturing, comme
Slide 4: Snapshot
3 Snapshot One of the few Leading Manufacturers of Vertically and Antioxidants in the world 3rd Largest producer of Backward with more than 25 years Vanillin in the world Integrated player of experience Serving more than 80 Preferred Partner for Strategic move to start countries with over manufactur
Slide 5: Company Overview
> Camlin Fine Sciences Bringing science to everyday life COMPANY OVERVIEW
Slide 6: About the Company
5 About the Company • In 2006, Camlin Fine Sciences Limited (CFS) was formed after de-merging (mirror Total Operational Revenue (INR Mn) shareholding) the fine chemical business from Camlin Ltd. • The Company has over 30 years of experience providing innovative solutions with a 10,000 8,922 competit
Slide 7: Board of Directors
6 Board of Directors Mr. Dilip Dandekar - Chairman Ms. Anagha Dandekar – Non-Executive Director • Been with the Company since 2006 and has long and vast experience in • MBA in Finance from University of South Carolina, USA. Marketing, Administration and overall Management. • President, co-founder of
Slide 8: Key Milestones
7 Key Milestones 7 1993 • Camlin Fine Chemical division incorporated in 2015 • Commencement of production and marketing of antioxidant Camlin Ltd. to manufacture antioxidants for the blends in Brazil through 100% subsidiary ‘CFS do Brasil Ltd.’. global market. • Setting up of application laboratorie
Slide 9: Current Entity Structure
8 Current Entity Structure 8 Camlin Fine Sciences Ltd. 100% 100% 100% 100% 100% 100% 51% CFS do Brasil Indústria, CFS International CFS Pahang Asia Pte. CFS Antioxidantes De CFCL Mauritius Pvt. Ltd. Comércio, Importação E CFS North America Solentus North Trading (Shanghai) Ltd. Mexico S.A. De C.V Lt
Slide 10: Major Clients
= FMC Cargill a CLARIANT = BASF The Chemical Company LOTTE Corporation adani ss wilmar wean? + ew wilmar @ evonix
Slide 11: Key Strengths
10 Key Strengths Global player in shelf-life solutions across food, feed, pet-food and biodiesel 1 Preferred Partner for manufacturing 2 Local presence in global markets customized products 8 Experienced promoters and Advanced R&D facilities & professional management team 7 3 Application Labs 4 Prov
Slide 12: Manufacturing Overview
> Camlin Fine Sciences Bringing science to everyday life MANUFACTURING OVERVIEW
Slide 13: Geographical Presence
12 Geographical Presence 12 Denmark Tarapur Ravenna, Italy Iowa, USA Yuyao, Zhejiang, Khopoli Mexico city Cuba China Guatemala Mahad Colombia Mumbai Peru Indaiatuba, Brazil Chile Owned Plants Argentina Outsourced Manufacturing Blending Facility R&D/ Food Labs Marketing offices
Slide 14: Manufacturing Plants
13 Manufacturing Plants CFS CFS North Countries CFS India CFS Mexico CFS Europe CFS Wanglong Brazil America Dr. Massimo Gautum Sapute Ashish Dandekar Arturo Paulin Luciano Monteiro Jennifer Igou Business heads Cupello Castagna (Head of (Managing Director) (Manager) (General Manager) (General Manager
Slide 15: Integrated Value Chain
14 Integrated Value Chain 14 Key Raw Material Commodity Phenol chemical Diphenols Hydroquinone Catechol Performance Performance Shelf Life Solutions Chemicals Aroma Chemicals Ascorbyl Palmitate1 TBHQ MEHQ Guaiacol Guethol Other derivatives of BHA HQ Veratrole Vanillin Blends Other derivatives of Cat
Slide 16: Global Research & Development
15 Global Research & Development 15 Application Labs R&D Labs • Develops customized blends • Develops new products and for various applications does value additions to existing • Provides technical assistance products and development support to Ravenna, Italy • Develops customised products customers
Slide 17: Certifications
16 Certifications ISO 2015 FSAAI Certificate FSSC 22000 Halal Certificate Kosher Kosher Kosher Intense Green & FAMI QS Vanillin, Ethyl Vanillin, TBC, TBHQ & BHA Vetigreen BHT, ASP etc. (10 products)
Slide 18: Business Overview
> Camlin Fine Sciences Bringing science to everyday life BUSINESS OVERVIEW
Slide 19: Business Mix
18 Business Mix 18 Shelf-Life Solutions* Performance Chemicals* Aroma Chemicals* (54%) (25%) (17%) Food Pet food Pharma Intermediates Agrochemicals Feed & food Consumer goods Animal Nutrition Rendering Dyes and Pigments Petrochemicals Incense Sticks Flavours & Fragrances Aqua Culture Bio-fuels Pharm
Slide 20: Shelf Life Solutions Industry Overview
19 Shelf Life Solutions Industry Overview • Shelf life Solutions are solutions in terms of both - increasing shelf life and food safety options which help preserve color, freshness, safety of the product. Global TBHQ Market • The addressable market caters to human food, pet food, animal nutrition, M
Slide 21: CFS - Shelf-Life Solutions
20 CFS - Shelf-Life Solutions • CFS is one of the leading global antioxidants manufacturer and a trusted name in the Total Operational Revenue (INR Mn) antioxidant industry for more than 25 years. Shelf Life Extension (Ingredients) Blends • The Company provides solutions for shelf life needs of huma
Slide 22: Global Antioxidants Market
21 Global Antioxidants Market • Antioxidants are amongst the valuable ingredients used in the food beverage, fuel additives, animal feed, Global Antioxidants Market (USD Bn) cosmetics and synthetic resins industry. • Synthetic antioxidants are largely used in Edible Oil 5.0 4.2 4.4 4.6 3.7 4.0 follo
Slide 23: CFS - Antioxidants
22 CFS - Antioxidants Synthetic Antioxidants TBHQ BHA Characteristics: Characteristics: • Increasing shelf life of edible oils. • Stability to lard and tallow, i.e. fat extracted from pigs and beef • Protection of fats produced from these oils like after rendering. margarine. • Stability to vitamin
Slide 24: CFS - Blends
23 CFS - Blends • CFS transitioned from selling the anti-oxidants as a commodity to making blends which command higher margins in 2016. • Today the company has over 100+ formulation blends which are a combination of Camlin: various anti-oxidants like TBHQ, BHA, BHT, Ascorbyl Palmilate and Propyl Gal
Slide 25: CFS - Performance Chemicals
24 CFS - Performance Chemicals • CFS’s Performance Chemicals are HQ, Catechol and their downstreams. Total Operational Revenue (INR Mn) • Most specialty chemicals are organic chemicals that are used in a wide range of every 3,000 day products used by consumers and industry. 2,457 2,409 2,148 • They
Slide 26: CFS - Performance Chemicals
25 CFS - Performance Chemicals Performance Chemicals are specialty chemicals sold on the basis of their performance for specific applications. Hence named as ‘Performance Chemicals’. They are unique or formulated based on requirements of customers to provide innovative solutions. Performance Chemica
Slide 27: Vanillin Market
26 Vanillin Market • Vanillin is used in food & beverages, to enhance sweetness in food products, such as Global Vanillin Market in Revenues chocolates, biscuits, candy, ice-creams, and cakes. (USD Mn) • The growing demand for these food products across the globe, is expected to boost 1,000 843 885
Slide 28: CFS - Aroma Chemicals
27 CFS - Aroma Chemicals 27 • CFS produces Vanillin through Catechol route and is most trusted by the Food and Total Operational Revenue (INR Mn) Flavours Industry. 2,000 • Vanillin is a synthetic substitute to vanilla as it is very expensive and labour intensive 1,517 to produce. 1,500 1,095 • The
Slide 29: Strategic Overview
> Camlin Fine Sciences Bringing science to everyday life STRATEGIC OVERVIEW
Slide 30: Growth Strategy
29 Growth Strategy 29 To create a sustainable business by diversifying into To shift the focus from anti-oxidant ingredients different geographies and different derivative to anti-oxidant blends and additives applications To commercialize Dahej SEZ facility making To innovate and develop natural and
Slide 31: Update on Dahej Project
30 Update on Dahej Project Work / Activities completed • Financial Closing achieved • Basic Process & Mechanical Equipment Engineering • Long lead equipment (process & utility) as well as major equipments – Orders received except Boiler • Civil / Structural Engineering for major non-process building
Slide 32: Financial Overview
> Camlin Fine Sciences Bringing science to everyday life FINANCIAL OVERVIEW
Slide 33: Standalone Income Statement
32 Standalone Income Statement Particulars (INR Mn) FY17 FY18 FY19 H1-FY20 Operational Income 3,376 4,050 5,481 2,871 Total Expenses 3,156 3,996 5,182 2,585 EBITDA 220 54 299 286 EBITDA Margin 6.52% 1.33% 5.46% 9.96% Depreciation 116 91 91 56 Finance Cost 232 236 203 144 Other Income 129 92 137 56 E
Slide 34: Standalone Balance Sheet (IND-As)
33 Standalone Balance Sheet (IND-As) Particulars (INR Mn) FY18 FY19 H1-FY20 Particulars (INR Mn) FY18 FY19 H1-FY20 EQUITY 3,314 3,474 3,564 Non-Current Assets 1,597 2,735 3,456 a) Equity Share Capital 121 121 121 a) Property, Plant and Equipment 683 789 675 b) Other Equity 3,193 3,353 3,443 b) Capit
Slide 35: Consolidated Income Statement
34 Consolidated Income Statement PARTICULARS (INR Mn) FY17 FY18 FY19 H1-FY20 Operational Income 5,469 7,228 8,922 4,824 Total Expenses 5,187 7,073 8,235 4,168 EBITDA 282 155 687 656 EBITDA Margin 5.16% 2.14% 7.70% 13.60% Depreciation 218 267 290 153 Finance Cost 269 284 367 204 Other Income 145 86 1
Slide 36: Consolidated Balance Sheet (IND-As)
35 Consolidated Balance Sheet (IND-As) PARTICULARS (INR Mn) FY18 FY19 H1-FY20 PARTICULARS (INR Mn) FY18 FY19 H1-FY20 EQUITY 4,334 4,303 4,527 Non-Current Assets 3,510 4,143 5,179 a) Equity Share Capital 121 121 121 a) Property, Plant and Equipment 2,066 2,055 2,053 b) Other Equity 3,591 3,588 3,699
Slide 37: Consolidated Financial Highlights
36 Consolidated Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) 10,000 1,200 18.19% 20.00% 8,922 8,000 7,228 900 15.00% 5,469 917 6,000 5,042 600 7.70% 10.00% 4,000 5.16% 300 2.14% 5.00% 2,000 687 282 - - 155 0.00% FY16* FY17 FY18 FY19 FY16* FY17 FY18 FY19 PAT(I
Slide 38: Capital Markets
37 Capital Markets 37 Share Price Data as on 30th September, 2019 50% 40% 30% 20% 10% 0% -10% -20% Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Camlin Sensex Price Data (30th September, 2019) INR Shareholding Pattern as on 30th September, 2019 Face Value 1.00 M
Slide 39: Disclaimer
38 Disclaimer 38 Camlin Fine Sciences Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in
Slide 40: Thank You
39 Thank You
Camlin Fine Sciences — HDFC Securities' Investor Forum 2019 on 6ix