Pcbl Chemical Limited · NSE:PCBL
Pcbl Chemical — Phillips Carbon Black — Investor Presentation (June 2016)
27 slides from Pcbl Chemical's investor presentation, June 2016
Slide 1: Phillips Carbon Black Limited
Phillips Carbon Black Limited www.pcblltd.com June 2016 1 A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People
Slide 2: RP-Sanjiv Goenka Group Companies
RP- Sanjiv Goenka Group Companies RP- Sanjiv Goenka Group Power & Media & IT & Natural Carbon Black Retail Entertainment Infrastructure Education Resources 2
Slide 3: Financials of Group companies
Financials of Group companies (Rs. bn ) Gross Current EBIDTA Net Profit Promoter Institutional Revenues Market cap (FY`16) (FY`16) Holding Holding (FY`16) (appx) CESC 66.16 17.21 7.07 80 50% 42% Firstsource Solutions 32.30 4.05 2.65 30 56% 16% Spencer`s Retail 18.65 (0.53) (1.42) - 100% - Haldia Ene
Slide 4: Phillips Carbon Black - at a Glance
Phillips Carbon Black - at a Glance Business Largest producer of Carbon Black in India and 7th largest in the World Largest CB Capacity of 4,72,000 MT p.a. across four locations in India Capacity Co –Generation Power Plant at each location aggregating 76MW Customers Leading tyre companies ar
Slide 5: PCBL Journey
PCBL Journey Kochi : 50 KT, Mundra & Durgapur : 62 270 KT Mundra : 90 KT PCBL Capacity : KT 472 KT 1960 - 2004 2009 Specialty Blacks 2012 2013 Rubber Black Rubber & Specialty Blacks Among the lead players in National Market & International Market presence • Started with Phillips Petroleum Co. USA at
Slide 6: Business Profile
Business Profile CB is a critical raw material for Tyre Industry Market Leadership – Largest producer of CB in India for many years - Ranks 7th globally by Capacity Product Mix - Wide Product Portfolio for Rubber black - Presence in Specialty Black ( Plastic Source : ATMA Applications ) Current
Slide 7: Business Profile..contd
Business Profile..contd Shareholding Pattern as on June’16 Domestic Positioning in Capacity (KTPY) 500 472 Others, 3.6% 450 400 350 315 Retail, 24.6% 300 250 200 Promoters , 53.6% 150 120 85 Bodies 100 36 Corporate 50 s, 10.00% 0 DII, 1.8% PCBL SKI India Himadri CCIL RalsonCarbon FII, 6.5% 1.1 85% 1
Slide 8: Business Profile..contd
Business Profile..contd Revenue Split (%) : FY16 CB Revenue Split (%) : FY16 4% 24% 76% 96% National International Carbon Black Power EBITDA Split ( Rs. Crs) : FY16 45 185 Carbon Black Power 8 A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our P
Slide 9: Highlights
Highlights 1 Globally accepted Carbon Black brand 2 Wide range of product portfolio in rubber black 3 Leading speciality black player in India 4 In house Research & Development centre 5 Manufacturing facilities & virtual plants strategically located near customer locations 9 A trusted Global player
Slide 10: Global Footprints
Global Footprints Eastern Europe Western Europe S. KOREA USA CHINA JAPAN TURKEY IRAN NEPAL ISRAEL BANGLADESH UAE TAIWAN THAILAND VIETNAM SAUDI ARABIA MALAYSIA PHILIPPINES NIGERIA SRI INDONESIA ETHOPIA KENYA LANKA PERU SINGAPORE BRAZIL AUSTRALIA NEW ZEALAND Manufacturing Facilities Market presence/ W
Slide 11: Customer Profile
Customer Profile AND MANY MORE … 11 A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People
Slide 12: Indian Tyre Industry Overview
Indian Tyre Industry Overview Total Tyre Production (Lakhs Nos) • 39 tyre companies 1462 1254 1228 1289 • 60 tyre plants 1192 976 • 11 ATMA member companies • Rs. 50,000 crs tyre industry turnover in India • Rs. 10,500 crs tyre exports from India • 12% CAGR in last five years 2009-10 2010-11 2011-12
Slide 13: Tyre Capacities - Addition
Tyre Capacities - Addition Company Segment Additional capacity Year of completion JK Tyre PCR 2,200,000 tyres p.a. FY16 JK Tyre MHCV 800,000 tyres p.a. FY16 CEAT LTD PCR 36,500 tyres p.a. FY16 Bridgestone Corp PCR 2,190,000 tyres p.a. FY16 Bridgestone Corp MHCV 273,750 tyres p.a. FY16 TVS Srichakra
Slide 14: Growth Drivers & Risks
Growth Drivers & Risks Growth Drivers Economic growth driving demand in automobile, construction, electronics sectors Tyre capacities migration to Asia Long term Business tie-up with global tyre customers Moving up the value chain in product portfolio Growing Specialty Black business Key R
Slide 15: Investment Highlights
Investment Highlights 15 A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People
Slide 16: Current Industry Trend
Current Industry Trend Lower feedstock prices with drop in crude prices Fall in CB imports in India on account of anti-dumping duty. Sold out condition for domestic CB industry on account of Robust auto growth and lower imports Gradual reduction of Chinese dominance in global CB markets on account o
Slide 17: Business Acceleration Underway
Business Acceleration Underway FY13-FY15 Steps Taken FY17 Onwards Poor Tyre demand Growth in industry both Intl and demand Dom mkt Global penetration New customers added High raw FY13- Dumping Low raw Improving material from material FY17 Specialty prices 15 China New Grades added prices Onwards seg
Slide 18: Brent Crude & CBFS Price
Brent Crude & CBFS Price 800 ($/MT) 700 600 500 400 300 200 100 CRUDE CBFS 18 A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People
Slide 19: Power Generation mitigates core business risk
Power Generation mitigates core business risk EBITDA split (%) 120% 233 Crs 244 Crs 119 Crs 155 Crs 210 Crs 230 Crs 100% 27% 23% 20% 28% 31% 80% 58% 60% 40% 72% 73% 77% 80% 69% 20% 42% 0% FY11 FY12 FY13 FY14 FY15 FY16 Carbon Black Power 19 A trusted Global player providing cutting edge solutions to
Slide 20: Volume Growth International
Sales increase with focus on International market • New grades of CB added in the product portfolio Volume • International market growth > domestic market Growth • Growth in tyre demand with GDP growth • Growth in specialty business • Expansion in the customer base International • New grades added f
Slide 21: Reducing Finance cost
Reducing Finance cost Borrowing cost reduction Reduction in Interest cost Fall in working capital requirement despite volume growth Fall in Crude Efficient WC Prices Management 21 A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People
Slide 22: Accelerating contribution by power segment
Accelerating contribution by power segment FY12 FY13 FY14 FY15 FY16 POWER BUSINESS TO GROW CB Production (MT Lakhs) 3.17 2.97 2.89 3.12 3.32 Power Generation (MU) 400 410 346 342 372 Power Export (MU) 272 273 204 199 225 Avg Selling Price (Rs/Kwh) 3.03 3.06 3.16 3.48 3.40 Carbon Black Volumes Power
Slide 23: Financial Overview
Financial Overview (Rs. crs) FY11 FY12 FY13 FY14 FY15 FY16 Profit & Loss Statement Net Sales 1690 2187 2285 2277 2485 1913 EBITDA 234 219 83 104 210 230 Depreciation 38 48 51 54 57 55 Finance Cost 31 67 72 139 138 118 PBT 164 103 (40) (88) 14 57 Tax 48 16 (19) (1) 2 34 PAT 116 87 (22) (87) 12 23 23
Slide 24: Quantitative Summary
Quantitative Summary Particulars Q4FY16 Q3FY16 %Change (QoQ) Q4FY15 %Change (YoY) Production (MT) 87,640 82,806 5.8% 73,520 19% Capacity Utilization(%) 85.4% 80.7% 4.7% 71.7% 13.8% Total Sales Volume (MT) 88,507 80,203 10% 77,207 15% Domestic (MT) 64,153 57,596 11% 54,780 17% Export (MT) 24,354 22,6
Slide 25: Financial Summary
Financial Summary Particulars Q4FY16 Q3FY16 Q4FY15 Rs Crs Rs Crs Rs Crs Net Sales (incl. other income) 461 464 599 EBITDA (before forex) 67 60 32 EBITDA% 14% 13% 5% PBT 20 19 (4) PAT 7 8 1 Power realization Rate (Rs/KWH) 3.0 3.3 3.5 Particulars YTD Mar FY16 YTD Mar FY15 Rs Crs Rs Crs Net Sales (incl
Slide 26: Outlook
Outlook Increase competitiveness in international market due to steep decline of crude price Auto sector growth to increase domestic demand Initiatives in manufacturing space yielding result Release of working capital on account of low Raw Material prices Growth of specialty business increasing over
Slide 27: Thank You
Thank You 27 A trusted Global player providing cutting edge solutions to our Partners and an exciting workplace to our People
Phillips Carbon Black — Investor Presentation (June 2016) on 6ix