Navin Fluorine International Limited · NSE:NAVINFLUOR
Navin Fluorine International — Investor Presentation (July 2014)
28 slides from Navin Fluorine International's investor presentation, July 2014
Slide 1: Navin Fluorine International Limited Investor Presentation
Navin Fluorine International Limited Navin Fluorine International Investor Presentation October 2013 Investor Presentation July 2014 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Navin Fluorine International Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 3: NFIL – An Introduction
NFIL – An Introduction Diversified portfolio of advanced fluorine derivatives Revenue with wide range of applications Rs. 130 Crs. Largest Business Segments - Refrigerants, Inorganic Fluorides, Specialty Fluoro Chemicals & CRAMS Integrated EBITDA Specialty Manufacturing facilities at Surat, Gu
Slide 4: Fluorine, A Vast Landscape…
Fluorine, A Vast Landscape… Global demand for Fluoro-chemicals in 2016 to reach 3.5 mn MT (Growth of 3.9% per annum), valued at USD 19.7 billion. Pharmaceuticals Agriculture Automotive Solar / Energy Electronics Steel Glass Aluminum White Goods ... and increasingly being used in newer applications 4
Slide 5: Evolution of NFIL
Evolution of NFIL … 2003 2003 - 2013 2013 ... Focus on CRAMS & Specialty Chemical Segment to drive growth Set-up Multi- Purpose Plant at Surat CRAMS expansion at Dewas Commenced CRAMS business in 2011 Acquisition of Manchester Organics Ltd. (MOL) in 2011 Fluorspar JV with GMDC & GFL St
Slide 6: Professional Management
Professional Management Mr. H.A. Mafatlal – Chairman Professional Team …. Mr. Shekhar Khanolkar : Managing Director Chemical Engineer with Masters in Management studies and an alumni of Harvard Business School Spent more than 21 years in the Chemical industry with both Indian & Multinational Chemica
Slide 7: Business Segments
Business Segments Refrigerants Inorganic Fluorides Specialty Chemicals CRAMS 7
Slide 8: Business Segments
Business Segments Refrigerant Gases Revenue : Q1 FY15 Specialty Chemicals [Rs. 130 Crs.] 50 39% 45 35% 26 8 20% 6% Inorganic Fluorides CRAMS 8
Slide 9: Refrigerant Gases …
Refrigerant Gases … Product & Applications Geographical Break up Exports MAFRON 22 38% Used in Residential & Commercial air conditioning Exports to South-East Asia, Middle East, Saudi Arabia, Turkey, Egypt & South Africa Domestic 62% MAFRON – Refrigerant Brand of NFIL Pioneered refrigerant g
Slide 10: … demand to remain stable
… demand to remain stable Current Scenario… Road Ahead… Under Phase out due to its Ozone More than 90% of Room Air Conditioners depleting & Global warming (RAC) uses R-22 as refrigerant properties Growth in country’s air conditioner market Production restricted at average of fuelled by a rap
Slide 11: Inorganic Fluoride
Inorganic Fluoride Stable Business… Growth Drivers… Ongoing investment into research Hydrofluoric acid, ammonium bifluoride and and development to introduce other inorganic fluorides newer variants User Industry : Glass , Metals, Agro, Pharma, Plans to introduce several new FMCG etc. inorgan
Slide 12: Specialty Fluoro Chemicals …
Specialty Fluoro Chemicals … Positioned well … Fluorine based molecules with niche applications in Pharmaceutical, Agrochemical & Petrochemical segments Constant research and innovation Strong Product Portfolio of over 40 Products Introduction of 6 new fluorinated compounds with growing appl
Slide 13: … to be a key focus area
… to be a key focus area Expanding the facility … One of the largest BF3 facilities in the world Expanded manufacturing and research capacity in this segment to speed up new product development and commercialization R&D facility and pilot plant in Surat State-of-the-art multi purpose plant i
Slide 14: Greenfield Facility at Dahej for Specialty Chemicals
Greenfield Facility at Dahej for Specialty Chemicals Facility for value-added Fluoro-Organics Initial investment, including site development, ~Rs. 120 Crs Site Development and regulatory approvals under process Expected to come on-stream by FY16 Bhoomi Pujan at Dahej 14
Slide 15: CRAMS …
CRAMS … Large Opportunity Initiative to cater to product development needs of innovator Pharma and Agro companies in Europe, US and Japan Opens new doors as molecules like Bromine and Chlorine are being progressively replaced by Fluorine Increasing acceptability of fluorine resulting in wide r
Slide 16: … to grow with MOL Integration
… to grow with MOL Integration Manchester Organics Limited Integration Synergies… Privately-held chemical company based in Milligram to multi-kilo research / North England established in 1996 production capability with high pressure / Research experience in Fluorination specialist fluorination
Slide 17: Key Strengths & Growth Drivers
Key Strengths & Growth Drivers 17
Slide 18: Key Strengths
Key Strengths Ability to handle Fluorination chemistry Expertise in handling Hydrofluoric acid Direct fluorination of pre-existing compound a difficult process requiring highly specialized equipments and techniques Fluorination capabilities include catalytic, non catalytic, gas phase and liqui
Slide 19: Focused Research
Focused Research Infrastructure Affiliations 4 Labs for organic and inorganic synthesis R&D Center recognized by DSIR, Ministry Vapor Phase chemistry Lab of Science & Technology, India High Pressure chemistry lab Working relationships with: Fixed bed continuous hydrogenator Indian Inst
Slide 20: Manufacturing Strengths …
Manufacturing Strengths … Surat, Gujarat Dewas, Madhya Pradesh Located on 135 acre plot Spread over an area of ~45 acres One of the largest integrated fluoro cGMP Pilot Plant with Kilo Laboratory chemicals complex in India, since 1967 Consisting of GL, SS, Hastelloy & High standards of H
Slide 21: … to be enhanced with expansion
… to be enhanced with expansion Expansion of CRAMS facility at Dewas, Madhya Pradhesh To address ton level requirements of existing CRAMS customers Investment of ~ Rs 60 Crs. Expected to be commissioned by end of FY15 21
Slide 22: Marquee Clientele
Marquee Clientele CLARIANT = syngenta Cy Bayer (ey Bayer CropScience HETERO semson @ Uh) NOVARTIS LLUPIN 2 qu POND 9 AUROBINDO Committed to Healthier Life dR. REDD) SUN “y! Dr-Reoby's INDUSTRIES LTD. , a7 Fy BLUE star | <=> OrchidPharma I 22 rN ARVIND MAFATLAL Grour
Slide 23: Growth Strategies
Growth Strategies CRAMS - Leveraging fluorination technology to partner with global 1 majors in their product development cycle 2 Specialty Chemicals - Development of new products 3 Refrigerants – Stable Cash Generating segment 4 Inorganic Fluorides – Expansion into newer geographies 23
Slide 24: Financial Overview
Financial Overview 24
Slide 25: Standalone Profitability Statement – Q1 FY15
Standalone Profitability Statement – Q1 FY15 Rs. Crs. Q1 FY15 Q1 FY14 YoY% Q4 FY14 QoQ% Revenue 130 115 13% 124 5% Raw Material 65 56 61 Employee Expenses 17 13 12 Other Expenses 36 27 38 EBITDA 12 18 (31%) 13 (8%) Margin 9.4% 15.6% 10.7% Other Income 4 6 13 Interest & Finance Charges 0 1 2 Deprecia
Slide 26: Strong Investments portfolio
Strong Investments portfolio Investment of Rs. 263Crs. – Investment in Debt Mutual Fund & FMP of Rs.151 Crs. – Investment in Properties of Rs. 47 Crs. Generated Income of Rs. 4 Crs in Q1 FY15 – Rental Income – Rs.3 Crs – Treasury Income – Rs.1 Crs Strong Cash & Cash Equivalents – Deployment in
Slide 27: Dividend History
Dividend History Dividend Per Share (Rs.) Consistent Dividend Payout 15% 21% 32% 33% 31% Continuous Dividend since last 10 years 75 Special Dividend of Rs. 60 per share in FY 12 Payout Ratio of more 16 than 30% in last 3 years 15 15 14 FY 10 FY 11 FY 12 FY 13 FY 14 Pay out Ratio 27
Slide 28: Contact
Contact For further information, please contact: Company : Investor Relations Advisors : Navin Fluorine International Ltd. Strategic Growth Advisors Pvt. Ltd. CIN : L24110MH1998PLC115499 CIN : U74140MH2010PTC204285 Mr. Partha Roychowdhury Ms. Sanjita Ghosh / Mr. Shogun Jain Chief Financial Officer p
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