Ion Exchange (India) Ltd. · NSE:IONEXCHANG
Ion Exchange (India) — Investor Presentation (January 2018)
42 slides from Ion Exchange (India)'s investor presentation, January 2018
Slide 1: Investor Presentation January 2018
INVESTOR PRESENTATION JANUARY 2018
Slide 2: Our Vision
Our Vision To be the leader in our business which is so vital to people‟s lives and the environment. 2
Slide 3: Refreshing the Planet
Rebreshing the Planet BUSINESS OVERVIEW ly e\NANCIAL OVERVIEW
Slide 4: Executive Summary
@ ION EXCHANGE Rebreshing the Planet
Slide 5: Executive Summary
Executive Summary BUSINESS & REVENUE (%) MIX - OVERVIEW MARQUEE CLIENTS CONSOLIDATED • Ion Exchange (India) Ltd. (Ion • Engineering (60%) – Provides • Industrial – NTPC, NPC, Reliance, Exchange), formed in 1964, is a comprehensive and integrated IOCL, JSW, CPCL, L&T, Essar group, pioneer in water, w
Slide 6: Company Overview
@ ION EXCHANGE Refacshing the Planch COMPANY OVERVIEW
Slide 7: Company Overview
Company Overview • Ion Exchange was originally formed as a subsidiary of Permutit, UK in 1964. REVENUE BREAKUP 9M-FY18* It became a wholly owned Indian company in 1985. The company is currently in its 53rd Year of operations. • The company has expanded its footprints globally and possesses a Enginee
Slide 8: Key Management Personnel
Key Management Personnel MANAGEMENT TEAM • Aankur Patni • S. N. Iyengar Executive Director Executive VP – Medium Industry • Dinesh Sharma • Anil Khera Executive Director Executive VP- Chemical • Ajay A. Popat • Vasant Naik President – Corporate Sr. VP – Finance Diversification, Technology & Marketin
Slide 9: Key Milestones
Key Milestones 1998 Consumer products 1982 manufacturing started at Engineering and fabrication Goa. 1964 Incorporated as 60% subsidiary setup started at Hosur. 2010 of Permutit Co., U.K. 1983 Commissioned largest RO based water desalination Industrial Chemical Production 1965 started at Patancheru.
Slide 10: Global Footprint
Global Footprint Canada USA Bahrain Bangladesh Saudi Arabia UAE Oman India Thailand Tanzania Singapore Malaysia Nigeria Kenya Indonesia South Africa International Division Manufacturing Facilities 10
Slide 11: Domestic Footprint
Domestic Footprint ANKLESHWAR, GUJARAT WADA, MAHARASHTRA Resin Facility - Fabrication Water and Facility non-water PATANCHERU, TELANGANA RABALE, MAHARASHTRA EOU & Chemicals Engineering Facility Design Facility Corporate Office VERNA, GOA International Division HOSUR, TAMIL NADU Regional & Branch off
Slide 12: Research And Development
Research And Development Strong focus on R&D Well established in-house R&D department since 1965 Recognized by Department of Scientific and Industrial Research (DSIR), New Delhi For Chemicals at Patancheru, Telangana For Engineered Products & Systems at Vashi, Maharashtra Product application and tes
Slide 13: Awards & Accolades
Awards & Accolades Water Digest 2015-16 4 TIMES IN A ROW Water Award Chemtech CEW Leadership Mera Brand Awards for Zero (UNESCO) & Excellence Award B- Most Preferred RO Brand 3 TIMES 8 TIMES 2015-16 4 TIMES Best Best Best Best Water Solutions Water Company Water Treatment Water Treatment- Provider w
Slide 14: Key Strengths
Key Strengths 1 Design, Engineering and supply of water, waste water treatment and recycle plants on turnkey, BOT and EPC basis. 50 4 50 years of pan India presence. 2 Largest one stop shop water solution's provider in Asia. 5 Manufacturer of chemicals 3 Global footprint with exports and ion exchang
Slide 15: Future Strategy
Future Strategy Engineering • Increased application coverage • Increased exposure to of resin and membrane international markets. technologies. • Selectively target Infrastructure • New Government initiatives and Municipal projects. resulting in more opportunities. Chemicals • Resins for pharmaceuti
Slide 16: Business Overview
@ ION EXCHANGE Refacshing the Planch BUSINESS OVERVIEW
Slide 17: Business
Business Ion Exchange (India) Ltd, formed in 1964, is a pioneer in water, waste water treatment & environment solutions and caters to various industries, homes & communities Process Applications Industrial Waste Water with Resins/Membranes Treatment/Recycle & Management of Solid Waste Management Pro
Slide 18: Business Segments
Business Segments Business Segments ^ Engineering Chemicals Consumer (60%) (30%) Products (10%) Industrial Retail Industrial Chemicals Municipal Institution Resins O&M / Services Rural Water treatment chemicals Specialty Chemicals Conventional Resins Specialty Resins ^ Consolidated as on FY2017 18
Slide 19: Work-flow Process
Work-flow Process Water Treatment Water Treatment Waste Treatment Specialty Raw Water Treatment I II & Recycle Chemicals • Disinfection Membrane Ion Exchange • Aerobic Process • Polyelectrolytes o Chlogen Processes Processes o Activated Sludge o Coagulants o Ozonator • Micro/Ultra- • Demineralizers
Slide 20: Engineering
Engineering • The Company designs, engineers, manufactures and sells REVENUES* (INR MN) medium and large size equipment for water and waste water treatment plants including recycling & Zero liquid discharge 6,418 plants. 5,572 4,850 5,140 4,573 • Extensive technologies, process design & detailed eng
Slide 21: Engineering - Industrial
Engineering - Industrial PROJECTS: • Ion Exchange integrates extensive process technologies and design, engineering & project management expertise into design & build projects, on turnkey, BOOT or EPC basis. Specially formed teams manage and support each and every stage of project implementation. •
Slide 22: Clientele - Industrial & Institution
Clientele - Industrial & Institution AUTO- ELECTRONICS/ PAPER AND HEAVY INDUSTRIAL PETROCHEMICALS HOTELS POWER PHARMA TEXTILES MOBILES ELECTRICALS PULP FOOD & CHEMICALS SUGAR CEMENT HOSPITALS REAL ESTATE BEVERAGES 22
Slide 23: Engineering - O&M and Services
Engineering - O&M and Services Ion Exchange‟s O&M and services provides single-source responsibility, saves customers expense, manpower, supervision and the hassle of maintaining facilities in-house. O&M CONTRACTS • Annual Maintenance: Water & waste water equipment for efficient performance and zero
Slide 24: Engineering Industry Overview
Engineering Industry Overview MARKET POTENTIAL • The global water industry including sectors like desalination, wastewater treatment and water-efficiency technologies, is expected to touch $652.38 billion in 2017. • The domestic industrial sector is expected to grow at a CAGR of 5-7% while waste wat
Slide 25: Engineering Industry Overview
Engineering Industry Overview MAKE IN INDIA • The GOI‟s „Make in India‟ Programme is expected to generate new opportunities as Industrial capex gains traction. • INR 500 bn (USD 7.7 bn) has been allocated for investment in 500 towns and cities under AMRUT and another INR 480 bn (USD 7.4 bn) has been
Slide 26: Chemicals
Chemicals • The company is engaged in manufacturing water REVENUES* (INR MN) treatment chemicals, ion exchange resins and other specialty chemicals. 3,243 3,106 2,949 2,435 2,547 • Water treatment chemicals are used in boiler, cooling water treatment, coagulation and flocculation, membrane cleaning
Slide 27: Water Treatment & Speciality Chemicals
Water Treatment & Speciality Chemicals • The company manufactures Water Treatment & Specialty Chemicals in a modern ISO 9001, 14001 and OHSAS 18001 certified manufacturing facility. • Ion Exchange is known for their tailor made treatment programs coupled with continuous developments of newer formula
Slide 28: Chemicals - Resins
Chemicals - Resins Resins are backed by innovation, quality and service, sustained R&D and state-of-the-art ISO 9001 and 14001 certified manufacturing facilities. They also have FDA approved pharma grade resin facility. Ion Exchange offers products under the registered trademark of INDION RESINS whi
Slide 29: Chemicals Industry Overview
Chemicals Industry Overview MARKET POTENTIAL • The market for water and water treatment chemicals in India is expected to expand leaps and bounds due to the focus on optimum utilization of water resources. • The global demand for water chemicals is currently estimated at USD 25.1 bn and in the next
Slide 30: Consumer Products
Consumer Products The company‟s water and environment management solutions REVENUES* (INR MN) extend beyond the industrial sector to homes, hotels, spas, educational institutions, hospitals, laboratories, realty sector 1,048 and defence establishments providing safe drinking water and a clean enviro
Slide 31: Consumer Products - Retail & Community
Consumer Products - Retail & Community • Ion Exchange is the pioneer of the revolutionary RO technology, in India. With its National & International presence, Zero B has emerged as one of the premier brand of the company in this segment. At Zero B, every product is crafted with meticulous attention
Slide 32: Financial Overview
@ ION EXCHANGE Refacshing the Planch FINANCIAL OVERVIEW
Slide 33: Standalone Income Statement
Standalone Income Statement INCOME STATEMENT (INR MN) FY13 FY14 FY15 FY16 FY17 9MFY18** Total Income* 7,732 7,201 7,400 8,139 9,513 6,888 Total Expenses 7,208 6,705 6,813 7,419 8,575 6,311 EBITDA 524 496 587 720 938 577 EBITDA Margins (%) 6.8% 6.9% 7.9% 8.9% 9.9% 8.4% Depreciation 79 84 98 100 108 9
Slide 34: Historical Standalone Balance Sheet (As per IGAAP)
Historical Standalone Balance Sheet (As per IGAAP) PARTICULARS (INR MN) FY15 FY16 FY17 PARTICULARS (INR MN) FY15 FY16 FY17 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets (A) Share Capital 145 146 147 (A) Fixed Assets 750 823 1,233 (B) Reserves & Surplus 2,058 2,355 2,812 (B) Non-
Slide 35: Standalone Balance Sheet (As per IND-AS)
Standalone Balance Sheet (As per IND-AS) PARTICULARS (INR MN) H1FY18 PARTICULARS (INR MN) H1FY18 EQUITIES & LIABILITIES ASSETS Equity Non-Current Assets (A) Equity Share Capital 147 (A) Property, Plant and Equipments 850 (B) Other Equity 2,661 (B) Capital Work-in-progress 418 Total Equity 2,808 (C)
Slide 36: Financials - Standalone (As per IGAAP)
Financials - Standalone (As per IGAAP) REVENUES* (INR MN) EBITDA (INR MN) PAT (INR MN) 9,513 938 460 CAGR CAGR 720 CAGR 345 17% 30% 33% 8,139 FY16 FY17 FY16 FY17 FY16 FY17 NET DEBT/EQUITY ROE and ROCE WORKING CAPITAL DAYS 0.1 RoE RoCE 50 18.9 16.2 40 15.5 13.8 -0.3 FY16 FY17 FY16 FY17 FY16 FY17 * In
Slide 37: Consolidated Income Statement (As per IGAAP)
Consolidated Income Statement (As per IGAAP) INCOME STATEMENT (INR MN) FY13 FY14 FY15 FY16 FY17 Total Income^ 8,620 7,978 8,048 8,776 10,298 Total Expenses 8,081 7,588 7,539 8,155 9,465 EBITDA 539 390 509 621 833 EBITDA Margins (%) 6.3% 4.9% 6.3% 7.1% 8.1% Depreciation 123 106 121 126 133 Finance Co
Slide 38: Historical Consolidated Balance Sheet (As per IGAAP)
Historical Consolidated Balance Sheet (As per IGAAP) PARTICULARS (INR MN) FY15 FY16 FY17 PARTICULARS (INR MN) FY15 FY16 FY17 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets (A) Share Capital 141 141 142 (A)Fixed Assets 989 1050 1,453 (B) Reserves& Surplus 1,420 1,560 1,837 (B) Non
Slide 39: Financials - Consolidated (As per IGAAP)
Financials - Consolidated (As per IGAAP) REVENUES* (INR MN) EBITDA (INR MN) PAT **(INR MN) 833 283 10,298 621 CAGR CAGR CAGR 17% 34% 85% 153 8,776 FY16 FY17 FY16 FY17 FY16 FY17 NET DEBT/EQUITY ROE and ROCE WORKING CAPITAL DAYS 0.3 RoE RoCE 47 21.8 16.8 40 14.3 -0.4 9.0 FY16 FY17 FY16 FY17 FY16 FY17
Slide 40: Market Data (Bloomberg – ION IN, Reuters – IONX.BO)
Market Data (Bloomberg – ION IN, Reuters – IONX.BO) 1 YEAR SHARE PRICE MOVEMENT (AS ON 31st DECEMBER, 2017) 140% ION Exchange Sensex 120% 100% 80% 60% 40% 20% 0% PRICE DATA (AS ON 31st DECEMBER, 2017) SHAREHOLDING PATTERN (AS ON 31st DECEMBER, 2017) Face value (INR) 10 Market Price (INR) 599.7 Promo
Slide 41: Disclaimer
Disclaimer Ion Exchange (India) 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
Slide 42: Thank You
@ ION EXCHANGE Refreshing the Planet
Ion Exchange (India) — Investor Presentation (January 2018) on 6ix