Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Shareholder Meeting (August 2010)
20 slides from Tata Chemicals's shareholder meeting presentation, Aug 9, 2010
Slide 1: Tata Chemicals Limited AGM
Tata Chemicals Limited AGM 9 August 2010 Tata Chemicals Limited AGM 12 August 2010 1
Slide 2: The Year that was – Internal Improvements and focus on growth
The Year that was – Internal Improvements and focus on growth to counter tough Business environment Business Environment Fall in Demand & Prices in most Products Delayed and deficient monsoons Positive shift in Fertilizers’ Policy Tata Chemicals’ Response Operational and Financial improvemen
Slide 3: The Year that was – Delivering growth and diversifying portfolio
The Year that was – Delivering growth and diversifying portfolio Tata Chemicals’ Achievements Constant Focus throughout the year to Improve Balance Sheet Position ADAPT delivers EBIDTA improvement. Rallis enhances Agri input portfolio & gives pan India foot print Successful Debottlenecking of Babral
Slide 4: Steady Financial performance – Strengthening the Balance sheet
Steady Financial performance – Strengthening the Balance sheet Net Debt/Equity Net Debt/EBIDTA 1.11 1.11 3.93 0.77 0.81 0.66 2.64 2.28 2.09 1.72 05-06 06-07 07-08 08-09 09-10 05-06 06-07 07-08 08-09 09-10 Reduction in Debt: Stronger Balance Sheet 4
Slide 5: Steady Financial performance - Improvement in Operational Metrics
Steady Financial performance - Improvement in Operational Metrics TURNOVER ( Rs Cr.) EBIDTA ( Rs Cr.) PBT ( Rs Cr.) 12652 2,002 *1,176 25.4% CAGR, 25% CAGR, 1837 9448 11.6% CAGR, 2.47x 2.44x 1.53x 917 933 748 5763 5982 1,050 601 994 3998 752 05-06 06-07 07-08 08-09 09-10 05-06 06-07 07-08 08-09 09-1
Slide 6: Steady Financial Performance – Shareholder Returns
Steady Financial Performance – Shareholder Returns Basic EPS( Rs/Share) 43.51 6.5 % CAGR, 1.28x 27.59 25.61 23.62 19.91 Steady EPS 25000 450 performance, in face of 05-06 06-07 07-08 08-09 09-10 an extremely difficult 400 Stock Price Movement 20000 Business environment 350 300 Tata Chemicals 15000 B
Slide 7: Diversified Product portfolio and Revenue Base (FY 10)
Diversified Product portfolio and Revenue Base (FY 10) Revenue Breakup - Products Revenue Breakup – Geographies Others, 8% Other Income, STPP, 1% 2% Europe, Cement, 14% 2% Urea, 12% Africa, 2% Asia, 67% Soda Ash, 45% America, 17% omplex Fertilizers, 24% Expenditure Breakup Materials, 52% Vacuum Salt
Slide 8: Building relationship with customers and creating value through Brands
Building relationship with customers and creating value through Brands Consumer Products Chemicals Business Agri Business 8
Slide 9: Favourable global trends, combined with TCL strengths for Future growth
Favourable global trends, combined with TCL strengths for Future growth Future Global trends Tata Chemicals’ Strengths 1. Growth driven by Emerging economies 1. Global Low cost position and a Balanced portfolio in Soda Ash 2. Focus on Sustainability 2. Strong Farmer connect and leading position 3. R
Slide 10: Growth by capitalizing relevant skills in each business and exploiting linkages
Growth by capitalizing relevant skills in each business and exploiting linkages Living Brand and Market Leadership in Existing products. Essentials National Branded Salt player, New Entrant in Water Entry into newer segments for purification and Fresh produce masses based on linkages with Farm and I
Slide 11: Opportunity across the value chain in Indian Agri sector
Opportunity across the value chain in Indian Agri sector, linkage from Farm to Household Procurement 33.7% Processing 35.7% Logistics 11.0% Services 7.3% Total Indian Agri Value Chain Agri Inputs Branding/Retailing ~ USD 316 bn 10.5% 1.8% Data Source – Mckinsey Study 11
Slide 12: Rising Food Demand, limited arable land, to drive productivity improvements in India
Rising Food Demand, combined with limited arable land availability, to drive productivity improvements in India Food demand to grow with rising population and increasing India already has 2nd largest arable land.. awareness of nutrition needs Arable land as % Arable land of total land Food Demand Mi
Slide 13: Indian Agri sector estimated to grow to ~$648 bn in 2020
Estimated Indian Agri sector estimated to grow to ~ $648 bn in 2020 from ~ $ 316 bn today PROCESSING & RETAIL $ 648 bn 700 Processing and Retail Processing Branding/ Produce Procurement Retailing 600 Agri Inputs $ 316 bn $ 40 bn 500 356 USD bn PRODUCE PROCUREMENT 400 $ 316 bn Logistics Procure 300 1
Slide 14: Rising incomes and Consumption Growth provide opportunity in Household consumption
Rising incomes and linked Consumption Growth provide opportunity for growth in Household consumption Rising Disposable Incomes in India Consumption Growth in India $ 1,107.92 $ 1647.20 per capita per capita $ 1076.99 $ 745.79 per capita per capita 2010(F) 2014(F) 2010(F) 2014(F) Opportunity for Sust
Slide 15: Emerging economies driving Soda Ash growth
Emerging economies driving Soda Ash growth, Global presence to a key strength in meeting demand Soda Ash demand growth linked to World GDP growth Emerging Economies to drive growth World 25 China 22.6 m MT 0.01 60000 57.02 m MT 80,000.00 18.4 m MT Millions 20 0.01 14.3 m MT 50.25 m MT 15 70,000.00 $
Slide 16: Sustainability at the core of Tata Chemicals
Sustainability at the core of Tata Chemicals – Environmental stewardship, Economic value and Social capital Community Development Safety Environment, Climate Change Sustainability Network Operations - Technology, waste reduction Innovation 16
Slide 17: Committed to Climate change initiative
Committed to Climate change initiative 4 CDM projects registered and 44,942 mt Certified Emission Reductions (CERs) earned so far Carbon conscious Growth Opn. Carbon Abatement 2009 2015 2020 Reduce in-plant specific emissions TCO2/mt products Grow existing businesses in a carbon conscious manner 17
Slide 18: CSR Efforts
CSR Efforts Enriching the quality of life of people and impacting communities Livelihood Support & promotion • Rural Enterprise Development • Okhai Handicrafts promotion • Uday – Rural BPO • Self- help groups & Group Enterprise Health, Education, Infrastructure • Swasthanagn • Divya Dristi (Eye Camp
Slide 19: CSR Efforts
CSR Efforts Caring for the environment Natural Resource Management • Water & Salinity Ingress Management • Integrated Agriculture Growth • Land Reclamation • Pond Management Environment Conservation • Mangrove Plantation • Bio-diversity Reserve • Save the Whale Shark Campaign • Lion Conservation • C
Slide 20: Thank You
qp TATA Thank You TATA CHEMICALS LIMITED 20