Jk Paper Limited · NSE:JKPAPER
Jk Paper — Investor Presentation (July 2016)
27 slides from Jk Paper's investor presentation, Jul 29, 2016
Slide 1: JK Paper Today – Investor Presentation
JK Paper Today Investor Presentation An Industry benchmark with Power Packed Brands 29th Jul 2016
Slide 2: JK Paper is one of the leading companies of JK Organisation
JK Paper Ltd is one of the leading companies of JK Organisation – a prominent business house of India founded over 100 years ago Paper Cement Tyre Rs. Cr. Rs. Cr. Rs. Cr. Mkt Cap 4,970 Mkt Cap 2,064 Mkt Cap 854 Revenue 2,955 Revenue 2,881 Revenue 7,562 V-Belts- Oil Seals & Power Agri Genetics Transm
Slide 3: JK Paper - History & Milestones
JK Paper - History & Milestones 75 YEARS JOURNEY OF JK PAPER Started Manufacturing Straw Board at First Integrated Pulp & Paper company in India & 3rd Paper Company 1938 Bhopal with a capacity of 3,600 TPA in the World to get Award for TPM Excellence – First Category from JIPM Installed 1st Fine Pap
Slide 4: JK Paper – Shareholding Pattern
JK Paper – Shareholding Pattern Major Institutional Investors Shareholding Pattern As on 30th June 2016 Others Promoters Employee including NRIs 9.35% 57.74% Trusts 7.70% Individuals 14.71% FCCBs Holders Institutions 10.50% 4 J K PAPER …….Creating Lasting Impressions Slide No.4
Slide 5: JK's Brands are Industry Benchmarks in Respective Product Categories
JK’S Brands are Industry Benchmarks In Respective Products Categories Plants with state of the art technology and minimal environmental impact Panoramic view of the Unit JKPM (Orissa) -295,000 tpa) Copier Paper (Market Leader – Current Mkt. Share is 27%) Coated Paper ( Amongst top Two – Current Mkt.
Slide 6: Strategic Geographical Presence
Strategic Geographical Presence Total Production Capacity • Strategic location Saleable Product : 455,000 tons per annum (tpa) Pulp : 276,000 tpa (BD) – JKPM located close to raw material sources – CPM located close to large end customers & port • Strong distribution reach – 4 regional offices UNIT
Slide 7: Global v/s Indian Paper Industry
Global v/s Indian Paper Industry World Per Capita Consumption (Paper + Board) in Kgs -2014 250 224 218 200 159 156 150 100 75 66 57 50 47 30 29 11 8 0 Source : PPI Global - 2014 India 2014-15 India 2018-19 Product CAGR % CAGR % CAGR% Sl. Mn % Mn % Mn No Category Tons Share last 4 yrs Tons Share last
Slide 8: Indian Paper Market & Product Category
Indian Paper Market & Product Category (Lac MT) CAGR CAGR Market Size Category Share of (5 Years) (14-15 to (in Lac MT) Total 2010-11 18-19) 14-15 18-19 (14-15) Base year Industry 1 2 3 4 5 6 1.0 Writing & Printing Paper 45.0 56.7 31% 5.8% 5.9% 1.1 Creamwove/Maplitho (Low Bright) 18.2 21.5 12% 4.3%
Slide 9: Demand / Supply
Demand / Supply Copier Paper - Lac MT Uncoated Paper (Maplitho + Copier) - Lac MT Market Demand Potential Supply Total Demand- Copier +Maplitho Potential Supply 10.00 28.00 CAGR CAGR 2010-16 : 7.0% 26.00 2010-16 : 6.7% 2016-19 : 7.1% 9.00 2016-19 : 6.5 % 24.00 21.87 8.00 7.52 22.00 19.88 20.00 21.25
Slide 10: FTA with ASEAN - Import Price Parity
FTA with ASEAN - Import Price Parity Rs / ton 70,000 % difference of Domestic 11% 10 MOP vis-à-vis ASEAN import 65,000 9% prices US$ @ Rs 67 4% 60,000 D Non-ASEAN (NA) 55,000 D D ASEAN (A) 50,000 A A D Domestic MOP (D) A NA A 45,000 NA 40,000 Copier Wood Free Virgin Fibre Coated Paper Board Source:
Slide 11: New Project at Unit - JKPM (I)
New Project at Unit - JKPM……(I) Fibreline (215,000 TPA) Paper Machine (165,000 TPA) J K PAPER …….Creating Lasting Impressions Slide No.11
Slide 12: New Project at Unit - JKPM (II)
New Project at Unit - JKPM……(II) Power Plant A4 Cutting Line Robotic Palletizer J K PAPER …….Creating Lasting Impressions Slide No.12
Slide 13: JKPL Performance – EBITDA
JKPL Performance EBITDA (Rs. Crore) 114 117 120 25.0% 102 106 98 100 93 20.0% 77 EBITDA % 80 15.0% 53 60 10.0% 45 40 5.0% 20 0.0% Q-1 Q-2 Q-3 Q-4 Q-1 Q-2 Q-3 Q-4 Q-1 2014-15 2015-16 2016- EBITDA (Rs. Crore) EBITDA % 17 Note: Current Quarter Q1 (FY 2016-17) is as per Ind AS which is effective from 1s
Slide 14: Key Financials for Q1 (FY 2016-17 vs FY 2015-16)
JK Paper - Key Financials for Q1 (FY 2016-17 vs FY 2015-16) Rs. Cr. 1st Quarter % Growth Unit 2016-17 2015-16 Q1 Sales Volume MT 1,14,368 1,08,435 5.5 Uncoated Paper MT 72,216 69,598 3.8 Coated Paper MT 19,996 17,009 17.6 Virgin Fibre Board MT 22,156 21,828 1.5 Gross Sales Rs. Cr. 711 683 4.1 Net Sa
Slide 15: JKPL - Profitability
JKPL - Profitability Rs. Cr. 2013-14 2014-15 2015-16 2016-17 S.N. Description 12 Months 12 Months 12 Month Q1 1 Net Sales 1,721 2,139 2,422 606 1.1 Other Operating Income 17 20 33 1 1.2 Total Income from Operations 1,738 2,159 2,455 607 2 Cost of Materials Consumed 1,079 1,295 1,293 315 2.1 (Increas
Slide 16: Industry Turnaround (I)
Industry Turnaround... (I) 1. Stabilisation / Moderation in Raw Material Price 2. Moderation in Chemical Prices 3. Stability in Coal Prices 4. Gradual uptick started in output price after capacity absorption 5. Closure of Unviable Capacities - Closer of Capacities Unit – 1 1,38,300 TPA Unit – 2 72,0
Slide 17: Industry Turnaround (II)
Industry Turnaround... (II) Moderation in Hardwood Prices (Rs./ADMT) 12,000 10,000 8,000 Rs. / ADMT 6,000 4,000 2,000 - Q1 Q2 Q3 Q4 Q1 2010- 2011- 2012- 2013- 2014- 2015- 2015- 2015- 2015- 2016- 11 12 13 14 15 16 16 16 16 17 Hardwood 4,290 5,237 6,558 8,962 9,750 9,242 9,640 9,611 9,093 8,518 Stabil
Slide 18: JK Paper - Performance Highlights
JK Paper - Performance Highlights 1. Increase in Copier Market share to 27 % in Domestic Market from 19 % in FY 2012-13 2. Exports of 48,553 MT in FY 16 compared to 12,900 MT in FY15 3. Unit : JKPM PM-6 achieved over 100% capacity utilisation (Q4 103.2 %) . 4. Unit : JKPM achieved best in the class
Slide 19: Consumption – Electricity & Coal
JK Paper (Total Company) Consumption – Electricity & Coal Electricity Consumption - Per MT of Paper & Board 1,400 Kwh/MT of Output 1,300 1,200 1,100 1,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 JKPL 1,378 1,398 1,250 1,191 1,180 1,153 1,120 1,176 1,161 1106 Coal Consumption - Per MT of Pa
Slide 20: Unit JKPM Efficiency Improvements
JK Paper (Unit – JKPM) Efficiency Improvements Power Kwh/T Paper Coal T/T Paper 1450 2.50 1389 2.06 1400 1368 1369 1.90 1.88 1356 2.00 1350 1.53 1287 1.50 1300 1.02 1250 1211 1.00 0.81 1200 0.50 1150 1100 - 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2010-11 2011-12 2012-13 2013-14 2014-15 2015-
Slide 21: Unit JKPM Chemical Consumption – Kg/T Pulp
JK Paper (Unit – JKPM) Chemical Consumption – Kg /T Pulp Lime Kg/T Pulp Caustic Kg/T Pulp 570 600 534 538 120 504 102 481 466 500 100 87 85 79 72 73 400 80 300 60 200 40 100 20 0 0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Hydrogen Peroxide Kg/T
Slide 22: Quantum Jumps through continuous expansions in last one decade
Quantum Jumps through continuous expansions in last one decade 2005 - Expansion in Coated Paper, 2007 - Expansion in Packaging Board and 2013 - Expansion in Uncoated Paper Volume - '000 MT 3 Times Turnover (Gross Sales) - Rs. Cr. 4 Times 500 3,500 400 3,000 2,500 '000 MT 300 Rs. Crore 2,000 200 1,50
Slide 23: Farm Forestry and Raw Material Security Initiatives
Farm Forestry and Raw Material Security Initiatives JK Paper – Plantation Coverage under Farm Forestry – in Hectare Clonal Development Centre 20,000 16934 17536 Started in 1991-92 14877 15,000 17,536 Ha area Maximum planted in 2015-16 Coverage 11803 within 200 km Overall > 1.44 Lac Ha 10,000 8
Slide 24: Financial Highlights – Profitability
Financial Highlights – Profitability (In Rs. Cr.) Sl. Financial Year >>> 2012-13 2014-15 2015-16 Q1 No. (2016-17) 1 Quantity In MT 1.1 Production 2,92,582 4,13,835 4,49,918 1,17,528 1.2 Capacity Utilisation 101% 91% 98.9% 102% 1.3 Sales Volume 2,90,421 3,98,387 4,59,977 1,14,368 2 Operating Results
Slide 25: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet (In Rs. Cr.) Year End March 2013 March March 2016 2015 Total Assets 2,738 2,897 2,868 Gross Block 1,516 2,996 3,099 Net block 768 2,294 2,292 CWIP 1,541 27 20 Investments 15 28 35 Net Current Assets (excl. cash) 381 530 507 Cash / Bank balance 34 17 15 Capital Em
Slide 26: Disclaimer
Disclaimer This presentation (the “Presentation”), which has been prepared by JK Paper Ltd. (the “Company”), has been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be
Slide 27: Thank You
THANK YOU J K PAPER …….Creating Lasting Impressions Slide No.27