Camlin Fine Sciences Limited · NSE:CAMLINFINE
Camlin Fine Sciences — Valorem's Sixth Annual Analyst Conference – March with Valorem – India Resurrection (March 2021)
39 slides from Camlin Fine Sciences's conference presentation, Mar 1, 2021
Slide 1: Intimation to BSE and NSE under SEBI LODR Regulation 30
Date: 27/02/2021 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: CAMLINFINE || Series: EQ Sub
Slide 2: Investor Presentation February 2021
INVESTOR PRESENTATION February 2021
Slide 3: Executive Summary
Executive Summary Company Overview Manufacturing Facilities, R&D Centres and • Camlin Fine Sciences Limited (CFS), formed in 2006 after demerging the Application Labs fine chemical business from Camlin Ltd., is a vertically integrated company engaged in research, development, manufacturing, commerci
Slide 4: Snapshot
Snapshot One of the few Vertically and Backward Leading Manufacturers of Antioxidants in the 3rd Largest producer of Vanillin in the Integrated player world with more than 25 years of experience world Serving more than 80 countries with over Preferred Partner for manufacturing customized Strategic m
Slide 5: Company Overview
COMPANY OVERVIEW
Slide 6: About the Company
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. 10,491 • The Company has over 30 years of experience providing innovative solutions with a 8,922 8,605 comp
Slide 7: Board of Directors
Board of Directors Mr. Dilip Dandekar - Chairman Mr. M.G. Palekar - Independent Director • Been with the Company since 2006 and has long and vast experience in Marketing, • Chemical Engineer with a doctorate degree from University Department of Chemical Technology Administration and overall Manageme
Slide 8: Key Milestones
Key Milestones 1993 • Camlin Fine Chemical division 2015 • Commencement of production and marketing of antioxidant blends in incorporated in Camlin Ltd. to Brazil through 100% subsidiary ‘CFS do Brasil Ltd.’. manufacture antioxidants for the global • Setting up of application laboratories, fully sup
Slide 9: Current Entity Structure
Current Entity Structure 100% 100% 100% 100% 65% 51% CFS do Brasil Indústria, Comércio, Importação E Dresen Quimica CFS Pahang Asia Pte. CFS North America Solentus North Ltd. CFS Europe SPA. (Italy) LLC. (U.S.A.) America Inc. (Canada) S.A.P.l. de C.V. (Mexico) Exportação De Aditivos Alimentícios Ltd
Slide 10: Major Clients
Major Clients He —# LOCKHEED MARTIN
Slide 11: Key Strengths
Key Strengths Preferred Partner for manufacturing Global player in shelf-life solutions across customized products food, feed, pet-food and biodiesel Experienced promoters and Local presence in global markets professional management team Advanced R&D facilities & Diversified customer base Applicatio
Slide 12: Manufacturing Overview
MANUFACTURING OVERVIEW
Slide 13: Geographical Presence
Geographical Presence Denmark Dahej Tarapur USA Italy Khopoli Cuba China Mahad Dominican Republic Mumbai Mexico city India Colombia Guatemala Singapore Peru Indaiatuba, Brazil Chile Argentina Owned Plants Outsourced Manufacturing Blending Facility R&D/ Food Labs Marketing offices 12
Slide 14: Manufacturing Plants
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
Integrated Value Chain Key Raw Material Commodity Phenol chemical Diphenols Hydroquinone Catechol Shelf Life Performance Performance Chemicals Aroma Solutions Chemicals Ascorbyl Palmitate1 TBHQ MEHQ Guaiacol Guethol BHA Other derivatives of HQ Veratrole Vanillin Blends Other derivatives of Catechol
Slide 16: Global Research & Development
Global Research & Development Application Labs R&D Labs Pilot Plant • Develops customized blends for various • Develops new products and does value • It has the ability to run small batch sizes and applications additions to existing products stabilize the processes before commercial • Provides techn
Slide 17: Certifications
Certifications FSAAI Certificate Halal Certificate ISO 2015 FSSC 22000 Kosher Vanillin, Ethyl Vanillin, TBC, FAMI QS BHT, ASP etc. (10 products) Kosher TBHQ & BHA Kosher Intense Green & Vetigreen 16
Slide 18: Business Overview
BUSINESS OVERVIEW
Slide 19: Business Mix
Business Mix Shelf-Life Solutions* Performance Chemicals* Aroma Chemicals* (54%) (27%) (18%) 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 Pharmaceuti
Slide 20: Shelf Life Solutions Industry Overview
Shelf Life Solutions Industry Overview • Shelf life Solutions are solutions in terms of both - increasing shelf life and food Global TBHQ Market safety options which help preserve color, freshness, safety of the product. ME&A USA, 8% • The addressable market caters to human food, pet food, animal nu
Slide 21: CFS - Shelf-Life Solutions
CFS - Shelf-Life Solutions Brands Total Operational Revenue (INR Mn) Shelf Life Extension (Ingredients) Blends !4,000 3,612 3,135 !3,000 2,5872,381 2,470 2,231 2,035 2,114 !2,000 1,667 1,571 1,327 !1,000 22 • CFS is one of the leading global antioxidants manufacturer and a trusted name in the antiox
Slide 22: Global Antioxidants Market
Global Antioxidants Market • Antioxidants are amongst the valuable ingredients used in the food beverage, fuel additives, Global Antioxidants Market (USD Bn) animal feed, cosmetics and synthetic resins industry. • Synthetic antioxidants are largely used in Edible Oil followed by Packaged Foods, 8 %
Slide 23: CFS - Antioxidants
CFS - Antioxidants TBHQ Characteristics: • Increasing shelf life of edible oils. • Protection of fats produced from these oils like margarine. BHA • Increasing frying cycles of the edible oil, i.e., how many times you can use the oil to cook food. Characteristics: Applications: • Stability to lard a
Slide 24: CFS - Blends
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 various anti-oxidants like TBHQ, BHA, BHT, Ascorbyl Palmilate and Propyl Gallate. • Ble
Slide 25: CFS - Performance Chemicals
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!3,000 range of every day products used by consumers and industry. 2,457 2,409 2,469 !2,500 2,1
Slide 26: CFS - Performance Chemicals
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 Chemicals
Slide 27: Vanillin Market
Vanillin Market • Vanillin is used in food & beverages, to enhance sweetness in food Global Vanillin Market in Revenues products, such as chocolates, biscuits, candy, ice-creams, and cakes. (USD Mn) • The growing demand for these food products across the globe,!1,000.0 is 843 885 800 expected to boo
Slide 28: CFS - Aroma Chemicals
CFS - Aroma Chemicals • CFS produces Vanillin through Catechol route and is Total Operational Revenue (INR Mn) most trusted by the Food and Flavours Industry. !2,500 • Vanillin is a synthetic substitute to vanilla as it is very 2,016 !2,000 expensive and labour intensive to produce. 1,564 1,517 rd •
Slide 29: Strategic Overview
STRATEGIC OVERVIEW
Slide 30: Growth Strategy
Growth Strategy To shift the focus from anti-oxidant To create a sustainable business by To innovate and develop natural and ingredients to anti-oxidant blends and diversifying into different geographies organic chemical products additives and different derivative applications To continue to grow in
Slide 31: Update on Dahej Project
Update on Dahej Project Work/Activities completed • The capacity utilization stood at 55% for December 2020 and at facilities will be consumed internally an average of 33% for Q3-FY21 • The 6,000 MT Vanillin facility to be set up at Dahej has been • Full-blown impact of the facility is expected to b
Slide 32: Financial Overview
FINANCIAL OVERVIEW
Slide 33: Historical Standalone Income Statement
Historical Standalone Income Statement Particulars (INR Mn) FY18 FY19 FY20 9M-FY21 Operational Income 4,050 5,481 5,798 4,316 Total Expenses 3,996 5,182 5,201 3,904 EBITDA 54 299 597 412 EBITDA Margin 1.33% 5.46% 10.30% 9.55% Depreciation 91 91 113 127 Finance Cost 236 203 281 226 Other Income 92 13
Slide 34: Standalone Balance Sheet
Standalone Balance Sheet Particulars (INR Mn) FY19 FY20 H1-FY21 Particulars (INR Mn) FY19 FY20 H1-FY21 EQUITY 3,474 3,768 4,367 Non-Current Assets 2,733 3,802 3,812 a) Equity Share Capital 121 121 121 a) Property, Plant and Equipment 789 686 2,419 b) Other Equity 3,353 3,647 4,246 b) Capital Work In
Slide 35: Historical Consolidated Income Statement
Historical Consolidated Income Statement PARTICULARS (INR Mn) FY18 FY19 FY20 9M-FY21 Operational Income 7,228 8,922 10,491 8,605 Total Expenses 7,102 8,235 9,184 7,290 EBITDA 126 687 1,307 1,315 EBITDA Margin 1.74% 7.70% 12.46% 15.28% Depreciation 267 290 328 325 Finance Cost 284 367 431 254 Other I
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet PARTICULARS (INR Mn) FY19 FY20 H1-FY21 PARTICULARS (INR Mn) FY19 FY20 H1-FY21 EQUITY 4,303 4,601 5,540 Non-Current Assets 4,143 5,591 5,576 a) Equity Share Capital 121 121 121 a) Property, Plant and Equipment 2,055 2,034 3,738 b) Capital Work In Progress 573 1,761 117 b) O
Slide 37: Consolidated Financial Highlights
Consolidated Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) !12,000 10,491 !1,500 15.28% 18.00% 8,922 16.00% !10,000 8,605 !1,200 12.46% 1,315 14.00% !8,000 7,228 12.00% !900 1,307 5,469 7.70% 10.00% !6,000 !600 5.16% 8.00% !4,000 687 6.00% !300 1.74% 4.00% !2,
Slide 38: Capital Markets
Capital Markets 60% 40% 20% 0% -20% -40% -60% -80% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Sensex Camlin Price Data (31st December, 2020) INR Shareholding Pattern as on 31st December, 2020 Face Value 1.0 Promoters 21.63% Market Price 122.4 52 Week H/L 133.
Slide 39: Disclaimer
Disclaimer 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 all e