Navin Fluorine International Limited · NSE:NAVINFLUOR
Navin Fluorine International — Investor Presentation (May 2017)
29 slides from Navin Fluorine International's investor presentation, May 2017
Slide 1: Navin Fluorine International Limited Investor Presentation
Navin Fluorine International Limited Investor Presentation May 2017
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Navin Fluorine International Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 3: Navin Fluorine International Limited
Navin Fluorine International Limited Built “India’s only plant with high pressure fluorination capabilities with cGMP compliance” for Largest Integrated Specialty Fluorochemical CRAMS Business Company in India Manufacturing plants strategically Over 45 years of expertise in Handling Fluorine located
Slide 4: Fluorine Chemistry – A Growing Landscape
Fluorine Chemistry – A Growing Landscape Global demand for Fluoro-chemicals in 2018 to reach 4.0 Millon MT, with CAGR of 4% per annum Pharmaceuticals Agriculture Electronics Steel Solar / Energy Aluminum White Goods Automotive Glass 4
Slide 5: Evolution of NFIL
Evolution of NFIL 2015… …2013 ✓ Focus on CRAMS & Specialty Chemical Segment to drive growth ✓ Commenced CRAMS business in 2011 ✓ CRAMS expansion at Dewas ✓ Acquisition of 51% equity stake in Manchester Organics Ltd. ✓ JV with Piramal Enterprises at Dahej (MOL) in 2011 ✓ Acquired balance 49% stake in
Slide 6: Professional Management
Professional Management Mr. Vishad Mafatlal – Chairman Professional Team …. Mr. Shekhar Khanolkar : Managing Director Chemical Engineer with Masters in Management studies and an alumni of Harvard Business School Spent more than 21 years in the Chemical industry with both Indian & Multinational Chemi
Slide 7: Business Units (BU) - Standalone
Business Units (BU) - Standalone CRAMS 03 • Leveraging our proven skills in Fluorination Chemistry • CRAMS for custom chemical syntheses of fluorinated compounds for the pharmaceuticals, agro chemicals and speciality chemicals industries 02 Specialty Chemicals • Large Scale Manufacture of Specialty
Slide 8: Refrigerants, Inorganic Fluorides: Sustainable and Stable BUs
Refrigerants Inorganic Fluorides Sustainable and Stable BUs 8
Slide 9: Refrigerants: Growing Demand for Non-Emissive applications
Refrigerants : Growing Demand for Non-Emissive applications Product User Distribution Export Offering Base Network Outreach ✓ Pioneered manufacturing of refrigerant gases in India in ✓ Used in Residential Air ✓ Strong Distribution Network ✓ Exports to South-East Asia, 1967 in Surat, Gujarat Conditio
Slide 10: Inorganic Fluorides: Growth from Exports
Inorganic Fluorides : Growth from Exports Product User Distribution Export Offering Base Network Outreach ✓ Portfolio includes 8-10 ✓ Oil & Gas Industry ✓ Developed Strong network in ✓ Growing exports products India ✓ Stainless Steel ✓ From near Zero to ~8% of the ✓ One of the largest Anhydrous ✓ Pr
Slide 11: Business Units Performance: Refrigerants and Inorganic Fluorides
Business Units Performance Refrigerants Inorganic Fluorides Revenue (Rs. Crs) 215 214 120 194 113 105 176 99 94 154 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Exports 8% Geographic Mix – FY17 Exports 31% Domestic Domestic 69% 92% 11 * Standalone Results
Slide 12: Specialty Chemicals, CRAMS: Driving up the Fluorine Value chain
Specialty Chemicals CRAMS Driving up the “Fluorine Value chain” 12
Slide 13: Specialty Chemicals: Growing product basket
Specialty Chemicals : Growing product basket Product ✓ Strong Portfolio of value added Specialty Fluoro intermediates Offering ✓ Introduction of novel molecules to expand portfolio ✓ Used by Pharma, Agchem, Petrochem industries User ✓ Focus on deeper penetrating into existing users and Base particip
Slide 14: CRAMS: Scalable Growth through Innovation
CRAMS : Scalable Growth through INNOVATION Strong R&D ✓ Leveraging our proven skills in Fluorination Chemistry ✓ State of the art R&D led by qualified and experienced chemistry teams of PhDs & Post Doctorals Developing Contract ✓ cGMP Pilot Plant with Kilo Laboratory at Manufacturing Base Dewas, MP
Slide 15: Manchester Organics - In Perfect Synergy with CRAMS
Manchester Organics - In Perfect Synergy with CRAMS ✓ Established in 1996, Manchester Organic Ltd (MOL) has a strong legacy in fluorination and high pressure chemistry ✓ Offer over 60 years of combined chemistry experience to customers ✓ Milligram to multi-kilo research/production facility in the UK
Slide 16: Business Units Performance: Specialty Chemicals and CRAMS
Business Units Performance Specialty Chemicals CRAMS** Revenue (Rs. Crs) 137 239 228 215 178 87 156 26 31 14 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Domestic 0% Geographic Mix – FY17 Exports 43% Exports 100% Domestic 57% 16 ** CRAMS business generating revenue since FY13
Slide 17: JV with Piramal Enterprises
JV with Piramal Enterprises ✓ Entered into JV with Piramal Enterprises Ltd ✓ 51% - Piramal Enterprises Ltd ✓ 49% - Navin Fluorine International Ltd ✓ To develop, manufacture & sell specialty Fluorochemicals for the healthcare segment ✓ Investment outlay of ~Rs. 170 Crs. ✓ Product validation has been
Slide 18: Clients across the Globe
Lj Clients across the Globe Ne. . . CLARIANT= ico) Bayer syngenta (eS) Bayer CropScience — W Novartis te LUPIN [2] HETERO “Y Dr.Reppvy's LIFE. RESEARCH . HOPE . | Ni BLUE STAR e PADMANABH MAFATLAL GROUP
Slide 19: Key Strengths
Key Strengths Fluorination Capabilities In-house R&D ✓ State-of-the-art R&D centre – Navin Research ✓ Pioneered Manufacturing of Refrigerant Gases in India Innovation Centre at Surat ✓ Over 45 years of experience in handling Fluorine ✓ DSIR approved R&D Centre ✓ Extensive expertise focusing on speci
Slide 20: Growth driven by Every Business Unit
Growth driven by Every Business Unit CRAMS ✓ Business progression from Contract research to contract manufacturing ✓ Manufacturing facility commercially operational Specialty Chemicals ✓ Introduction of new high value added molecules in portfolio ✓ Entry into newer geographies Inorganic Fluorides ✓
Slide 21: Consistent Dividend Performance
Consistent Dividend Performance Dividend as % of Face Value Robust Dividend Payout Interim Final Special 315% ✓ Continuous Dividend since last 10 years ✓ Special Dividend of Rs. 60.00 per share 210% in FY12 150% 150% 150% 160% 160% 140% ✓ Declared Interim Dividend of Rs. 11.00 per share and a Specia
Slide 22: Strategy Begins to Yield Results
Strategy Begins to Yield Results Operating EBITDA Margin (%) Operating PBT Margin (%) 21% 17% 18% 14% 15% 13% 10% 12% 8% 8% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Return on Net Worth (%) Return on Capital Employed (%) 19% 20% 18% 14% 12% 10% 11% 11% 9% 9% FY13 FY14 FY15 FY16 FY17 FY13 FY1
Slide 23: Financial Highlights
Responsible Care” Financial Highlights e PADMANABH Ni MAFATLAL GROUP
Slide 24: Annual Financial Performance
Annual Financial Performance Refrigerants Increasing demands for cooling Traction in Key product Inorganic Fluorides solutions & as feedstock for portfolios & Customer segments Pharmaceutical industry to drive 120 94 215 214 long term growth 31% 17% FY16 FY17 FY16 FY17 Revenue Break-up FY17 CRAMS* S
Slide 25: Standalone Profitability Statement
Standalone Profitability Statement Particulars (Rs. Crs.) FY17 FY16 Change % Q4 FY17 Q4 FY16 Change % Revenue 701 636 10% 201 190 6% Raw Material 286 292 80 88 Employee Expenses 77 66 21 19 Other Expenses 189 162 60 47 Operating EBITDA 150 116 29% 39 36 8% Operating EBITDA Margin 21.4% 18.2% 320 bps
Slide 26: Standalone Balance Sheet
Standalone Balance Sheet Equity and Liabilities (Rs. Crs.) Mar’17 Mar’16 Assets (Rs. Crs.) Mar’17 Mar’16 Shareholder’s Fund 748 634 Non-current assets 690 542 Share capital 10 10 Fixed assets 428 282 Tangible Assets 411 267 Reserves & Surplus 738 624 Intangible Assets 0 1 Non-current liabilities 69
Slide 27: Consolidated Profitability Statement
Consolidated Profitability Statement Particulars (Rs. Crs.) FY17 FY16 Change % Revenue 748 680 10% Raw Material 303 311 Employee Expenses 92 81 Other Expenses 195 171 Operating EBITDA 158 117 35% Operating EBITDA Margin 21.1% 17.2% 390 bps Interest Expenses 2 4 Depreciation 30 22 Operating PBT 126 9
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Equity and Liabilities (Rs. Crs.) Mar’17 Mar’16 Assets (Rs. Crs.) Mar’17 Mar’16 Shareholder’s Fund 765 645 Non-current assets 689 608 Share capital 10 10 Fixed assets 460 307 Reserves & Surplus 755 636 Tangible Assets 428 286 Intangible Assets 0 1 Minority Interest 0 0 Cap
Slide 29: Contact
Contact For further information, please contact: Company : Investor Relations Advisors : Navin Fluorine International Ltd. Strategic Growth Advisors Pvt. Ltd. CIN : L24110MH1998PLC115499 CIN : U74140MH2010PTC204285 Mr. Sitendu Nagchaudhuri Mr Jigar Kavaiya / Ms. Neha Shroff Chief Financial Officer 9
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