Srf Limited · NSE:SRF
Srf — Investor Presentation (September 2015)
48 slides from Srf's investor presentation, September 2015
Slide 1: SRF Limited Investor Presentation
SRF Limited Investor Presentation September 2015 Diversity Innovation Performance
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ mat
Slide 3: Contents
Contents Company Overview Business Segments Consolidated Snapshots Outlook Other Milestones 3
Slide 4: Company Overview
India Thailand South Africa Company Overview
Slide 5: Overview: History & Heritage
Overview History & Heritage Our legacy since 1889 Known as one of India’s respected business houses Group known for philanthropic work Run and manage some of the premiere academic institutions of India Winner of Deming Prize 2004: Tyre Cord Business 2012: Chemicals Business 5
Slide 6: Overview: Operation
Overview Operation SRF is • A multi-business manufacturing entity • An Indian multinational • Engaged in the manufacture of chemical based industrial intermediates 9 plants in India 4 plants abroad 6
Slide 7: Overview: Business Leadership
Overview Business Leadership Early Entrants in Only Company in India India • Nylon tyre cord fabrics • manufacturing HFC-134a with in-house technology • Belting fabrics • Coated fabrics • supplying HFC 134a Pharma under a global brand • Specialty chemicals • Refrigerants • manufacturing polyester ty
Slide 8: Overview: Market Rankings
Overview Market Rankings Global No. 2 India No. 1 India No. 2 • nylon 6 tyre cord fabrics • tyre cord • packaging films • belting fabrics • belting fabrics • refrigerants • specialty chemicals • fishnet twine • engineering plastics 8
Slide 9: Overview: At a Glance as on 31 March 2015
Overview At a Glance as on 31 March 2015 st Revenues EBIT No of Business Segments Manufacturing locations / No. of Countries Exporting to Global Workforce No. of Countries Consolidated, FY15 figures in $ million (USD/INR=64) rounded off 9
Slide 10: Overview: Business Profile
Overview Business Profile Technical Textiles Chemicals & Polymers Packaging Films Fluorochemicals • Tyre cord fabrics Films for Flexible Packaging • Refrigerants (nylon & polyester) • Bi-axially Oriented • Chlorinated solvents Polyethylene Terephthalate • Belting fabrics (BOPET) Specialty Chemicals
Slide 11: Overview: Shareholding Pattern
Overview Shareholding Pattern Shareholding Pattern (31st July 2015) FIIs Prominent Shareholders % of total capital 15.9% Promoters 52.3% DIIs Amansa Holdings Private 5.02 12.4% Limited DSP Blackrock Mutual Fund 4.16 Sundaram Mutual Fund 3.73 UTI-Mutual Fund 2.67 Public 15.7% Goldman Sachs India Fund
Slide 12: Overview: Path of Progress
Overview Path of Progress Incorporated as Commences production of Commenced production Shri Ram Fibres Shri Ram Fibres nylon engineering plastics of coated fabrics renamed as SRF Ltd 1970 1979 1986 1990 1974 1983 1989 Commenced Commissioning of Belting Entered Chemicals Business with operations of F
Slide 13: Overview: Business Evolution
Overview Business Evolution Relative Composition (in %) of Businesses FY11 Revenue* FY15 Revenue $542.7 mn $709.4 mn Successful 53.4% 44.8% Transformation: $317.5 $289.9 Technical Textiles Multiple business entity with focus on knowledge based 27.8% industries 21.5% $197.4 Chemicals & Polymers $116.
Slide 14: Overview: Growth Levers
Overview Growth Levers Focus on building Nurture leadership innovation businesses through R&D Build and Reposition maintain portfolio market towards leadership in knowledge business based segments products Build a Company known and respected for its Continue to R&D capabilities build new De-risk fro
Slide 15: Overview: Leadership Team
Overview Leadership Team Mr. Arun Bharat Ram Mr. Ashish Bharat Ram Mr. Kartik Bharat Ram Chairman Managing Director Dy Managing Director Mr. Rajdeep Anand Mr. Sushil Kapoor Mr. Rajendra Prasad President (CTG) President & CEO (TTB) President & CFO Mr. Prashant Yadav Mr. Prashant Mehra Mr. Anurag Jain
Slide 16: Business Segments
Technical Textiles Chemicals & Polymers Packaging Films Business Segments
Slide 17: Technical Textiles: Nylon Tyre Cord Fabrics
Technical Textiles Nylon Tyre Cord Fabrics Despite increase in radialisation of bus & truck tyre segment, the demand for NTCF is expected to remain stable on account of growth in Tractor, 2 wheeler and OTR tyre segments Continues to be the domestic market leader and ranked world Number 2 in Nylon 6
Slide 18: Technical Textiles: Polyester Tyre Cord Fabrics
Technical Textiles Polyester Tyre Cord Fabrics Global surplus in PTCF leading to lower realisations; yarn developed for alternate applications Only manufacturer of polyester tyre cord fabrics in India 18
Slide 19: Technical Textiles: Belting Fabrics
Technical Textiles Belting Fabrics Largest manufacturer of belting fabrics in India and second largest in the world; domestic market share ~60% Segment reporting healthy performance; anticipated improvement in infrastructure sector to provide further boost Facilities located in India and South Afric
Slide 20: Technical Textiles: Belting Fabrics
Technical Textiles Belting Fabrics State-of-the-art coating line offers PVC coated fabric with Acrylic / PVDF finishes and polyurethane coated fabrics Integrated manufacturing facility from polyester yarn to fabricated articles Economic slowdown has impacted performance – operating at low utilisatio
Slide 21: Technical Textiles: Laminated Fabrics
Technical Textiles Laminated Fabrics Laminated fabric is a combination of a polyester fabric with a film (PVC or another) on either or both sides Lower advertising spends on account of slowdown has led to subdued demand Modern facility in Uttarakhand, India; also equipped for Hot Lamination 21
Slide 22: Technical Textiles Key Highlights
Technical Textiles Key Highlights Revenues Operating Profits 334 333 341 317 31 290 28 25 18 19 77 84 9 7 FY11 FY12 FY13 FY14 FY15 Q1FY16 Q1 FY15 FY11 FY12 FY13 FY14 FY15 Q1FY16 Q1FY15 Tyre Cord Sales Trend (in MTs) • Free cash flow generating business with stable contribution to overall 61,170 59,4
Slide 23: Business Segments
Technical Textiles Chemicals & Polymers Packaging Films Business Segments
Slide 24: Chemicals & Polymers: Fluorochemicals Business
Chemicals & Polymers Fluorochemicals Business • Refrigerant portfolio consists of R-22, R-134a and HFC blends: R- 410A, R-404A and R-407C • Only manufacturer of R-134a in India • Global size capacity for R-134a with two manufacturing facilities in India • Over 40% share of the Indian market besides
Slide 25: Chemicals & Polymers: Specialty Chemicals Business
Chemicals & Polymers Specialty Chemicals Business Multi Product : Multi Customer : Multi Application Cross-selling amongst existing and new customers More than 25 years of concerted Developed an intermediate building R&D efforts and experience in block for the medicine that is being handling fluorin
Slide 26: Chemicals & Polymers: Driving Innovation through R&D
Chemicals & Polymers Driving Innovation through R&D • The Chemicals Technology Group (CTG) is actively engaged in the development of new process technologies – Key focus on the niche area of fluorinated molecules • Strong internal competencies and capabilities – Equipped with state-of-the-art R&D fa
Slide 27: Chemicals & Polymers: Chemical Complex at Dahej
Chemicals & Polymers Chemical Complex at Dahej • Presently developing 126 acres out of 293 acres in Phase I Operational Units • Facilities to produce multiple products o Multiple Specialty with focus on fluorochemicals and Chemicals plants specialty chemicals o Multiple Flexible • Gross value of Fix
Slide 28: Chemicals & Polymers Key Highlights
Chemicals & Polymers Key Highlights Revenues Operating Profits 93 188 162 69 66 54 41 116 45 21 197 21 40 149 119 121 47 95 30 59 50 24 27 14 15 12 FY11 FY12 FY13 FY14 FY15 Q1FY16 Q1FY15 FY11 FY12 FY13 FY14 FY15 Q1FY16 Q1FY15 • In spite of slow down in agri sector, long-term outlook for Specialty Ch
Slide 29: Business Segments
Technical Textiles Chemicals & Polymers Packaging Films Business Segments
Slide 30: Packaging Films Key Highlights
Packaging Films Key Highlights Industry estimated to grow at apprx 8% Domestic industry moving p.a. globally and apprx 10% - 12%p.a. towards higher capacity domestically utilisation SRF remains the second-largest SRF’s overseas units in Thailand manufacturer of thin BOPET and South Africa set up in
Slide 31: Packaging Films: Overseas Operations
Packaging Films Overseas Operations BOPP Plant at South Africa BOPET Plant at Thailand • Set up a greenfield BOPP film plant and a vacuum • Set up a greenfield BOPET film plant and a vacuum metallisation plant in KwaZulu Natal, South Africa in metallisation plant in Rayong, Thailand in 2013 2013 • W
Slide 32: Packaging Films Key Highlights
Packaging Films Key Highlights Revenues Operating Profits 54 194 136 138 103 97 10 9 4 1 2 55 47 -1 FY11 FY12 FY13 FY14 FY15 Q1FY16 Q1FY15 FY11 FY12 FY13 FY14 FY15 Q1FY16 Q1FY15 Packaging Films Capacity and Utilisation Trend • Improving revenues, efficiencies and higher margins leading to healthy 12
Slide 33: Consolidated Snapshots
2D ales Consolidated Snapshots
Slide 34: Financial Performance Trend: Revenues
Consolidated Snapshots Financial Performance Trend Revenues 626 591 542 69 41 21 628 709 521 557 550 191 181 FY11 FY12 FY13 FY14 FY15 Q1FY16 Q1FY15 Business Segments Technical Textiles CPB Packaging Films 334 333 341 317 290 188 194 162 136 138 116 69 41 103 97 77 84 21 197 149 55 47 95 119 121 59 5
Slide 35: Financial Performance Trend: EBIT
Consolidated Snapshots Financial Performance Trend EBIT 127 115 21 66 75 106 40 87 49 55 35 33 21 FY11 FY12 FY13 FY14 FY15 Q1FY16 Q1FY15 Business Segments Technical Textiles CPB Packaging Films 93 54 31 28 25 18 19 66 54 45 10 9 4 1 2 9 21 40 7 47 24 27 30 -1 14 15 12 FY11 FY12 FY13 FY14 FY15 Q1FY16
Slide 36: Financial Performance Trend: PAT and EPS
Consolidated Snapshots Financial Performance Trend PAT 100 14% 12% 12% 80 9% CER 14 10% 8% 60 7% 8% Ex CER 40 6% 44 4% 62 4% 27 47 PAT Margin% 20 3% (Ex CER) 2% 25 2% 15 13 18 14 0 0% FY11 FY12 FY13 FY14 FY15 Q1FY16 Q1FY15 EPS ($) 1.3 • Focus of investments in higher margin businesses 1.0 0.8 • High
Slide 37: Financial Performance Trend: Networth and Gross Block
Consolidated Snapshots Financial Performance Trend Networth Gross Block 354 1,043 303 318 954 273 241 743 648 592 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 • Dahej facility to produce multiple products with focus on specialty chemicals and fluorochemicals • Return ratios are anticipated to i
Slide 38: Financial Performance Trend: Dividend, Debt, Returns
Consolidated Snapshots Financial Performance Trend Dividend Payout* (%) Net Debt: Equity (x) 41 1.02 1 0.8 25 26 0.59 23 0.58 20 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 * Including Corporate Dividend Tax RONW (%) ROCE CWIP ROCE(%) 32% 100.0 29.4 35.0 30.0 22% 80.0 23.8 25.0 60.0 20.0 13% 1
Slide 39: Outlook
Outlook
Slide 40: Outlook: Technical Textiles Business
Outlook Technical Textiles Business • NTCF is expected to remain a key business in the segment and a generator of steady cash flow • Demand for NTCF to mirror Indian GDP growth as it is closely linked to the transportation sector • Macroeconomic environment to have an impact on coated and belting fa
Slide 41: Outlook: Chemicals & Polymers Business
Outlook Chemicals & Polymers Business • Future potential and prospects of the Specialty Chemicals Business remain robust • Focus on expanding range of specialty products and moving towards higher value- added products in the agrochemical and pharmaceutical sectors • Ongoing investments in R&D leadin
Slide 42: Outlook: Packaging Films Business
Outlook Packaging Films Business • Driven by the robust FMCG growth and fast urbanisation, domestic market in India is expected to grow by 10% year-on-year • Focus on having efficient cost structures, enhanced capabilities and incorporating more value-added products in the portfolio • International
Slide 43: Other Milestones
ales Other Milestones
Slide 44: Other Milestones: Awards & Recognitions
Other Milestones Awards & Recognitions Winner of Deming Prizes for 2 businesses Chemicals Tyre Cord Business Business 2012 2004 CII-ITC SRF in Sustainability Awards Forbes’ 2008 Strong ‘Best Commitment Under a 2009, 2010 & 2011 Significant Achievement Billion List’ 2011 2013 Sustainability Prize 44
Slide 45: Other Milestones: Awards & Recognitions
Other Milestones Awards & Recognitions CSR Awards 2012 Businessworld FICCI CSR Award Best CFO Award 2013 Aaj Tak Care Awards 2013 Greentech CSR Award 2012: ‘Best CFO’ presented by a leading Indian business magazine BusinessWorld 45
Slide 46: Other Milestones: Concern for Community
Other Milestones Concern for Community Education Vocational Skills Undertakes up-gradation of government schools under ‘Quality Undertakes several initiatives to Education for All’ programme, improve the employability of people covering 90 primary and middle especially the younger generation from sc
Slide 47: About Us
About Us Established in 1970, SRF as a group has today grown into a global entity with operations in 3 countries. Apart from Technical Textiles Business, in which it enjoys a global leadership position, SRF is a domestic leader in Refrigerants, Engineering Plastics and Industrial Yarns as well. The
Slide 48: Thank you
1S, sre We always find a better way Thank you