Sowing the seeds of tomorrow.

Transcription

1 Sowing the seeds of tomorrow. July

2 Outline of Presentation Financial overview The Emerging Tata Chemicals 2

3 FINANCIAL OVERVIEW 3

4 Financials Revenue growth 5810* 6,000 in Rs. crore 5,000 0% 4 GR A C 4, * 515 3,000 2,000 1, FY03 FY04 FY05 FY06 FY07 Note: FY2006 Consolidated financials include BMGL s Q4 results and IMACID s performance over 11 months * Post consolidation 4

5 Financials EBIDTA % 2 R G A C in Rs. crore * 809* FY03 FY04 FY FY06 FY07 * Post consolidation 5

6 Profit After Tax 600 7% 2 R G A C in Rs. crore * 428* FY03 FY FY05 FY FY07 * Post consolidation 6

7 Distribution of Rupee Earned FY 2006 V/s 2007 Others 5% STPP 3% Other Income 3% Soda Ash 19% Cement 4% Vacuum Salt 8% Urea 19% Others 5% Other Income 3% STPP 4% Cement 5% Salt 8% Urea 20% Complex Fertilizers 37% Complex Fertilizers 39% 2006 Soda Ash 18%

8 Distribution of Rupee Deployed FY 2006 V/s 2007 Retention 6% Dividend Financial 4% Retention 5% Dividend 4% Financial Taxes4% 4% Taxes 9% 8% Overheads 5% Overheads 5% Distribution 9% Materials 62% Employee 3% Materials 60% Distribution 8% Employee 4%

9 Revenue Split - Consolidated Chemicals 54% Fertilisers 46% 9

10 FY 2007 Debt Split Debt-Equity Perspective 19% 6 44% 36% Reducing interest cost (% of sales) 1% Banks/Others Term Loans Cash/ Packing Credit 4 (%) FCCB Total Debt Rs. crore 2221 Shareholder's Equity FY FY FY 03 FY 04 FY 05 FY 06 FY 07 10

11 Credit Ratios Interest Coverage ratio Net Debt/Equity FY03 - FY04 FY05 FY06 FY07 11

12 Financial ratios Category Profitability Shareholder Returns Cash Generation Stability Activity Unit FY 2005 FY 2006* FY 2007* EBITDA Margin % Net Profit Margin % Earnings per share INR Networth per Share INR Dividend Yield % Market to Book Value Times EBITDA Rs. crore Debt : Equity Times Interest Coverage Times Fixed Asset Turnover Times Avg Debtors Velocity No. of Days No. of Days No. of Days Avg Inventory Turnover Cash cycle * Post consolidation 12

13 Financial snapshot (Rs in crore) FY 2006 TCL Sales FY 2007 IMACID / BMGL Consolidated (Jan to Mar 06) TCL IMACID / BMGL Consolidated 3, , , , ,809.6 EBITDA ,100.9 EBIT Net Income EPS After reducing provision of USD 58.7 mn for the deficit in BMG s pension liability) 13

14 Shareholder Returns FY ' Rs Rs. per share FY '03 FY '04 EPS Dividend FY '05 FY '06 FY '07 Average Market Price Improved Shareholder Returns 14

15 The Road Ahead The Future Tata Chemicals 15

16 A Typical Mithapur Salt pan Tata Chemicals today is the>> 3rd largest soda ash manufacturer in the world #1 soda ash player in India Market leader in edible salt market Most energy efficient urea 1/3rd stake in IMACID, Presence in Agri inputs & Agri Solutions Morocco manufacturer in India 16

17 Global Presence UK Netherlands Morocco India Kenya South Africa Facilities Markets 17

18 Our Major Customers 18

19 TCL today is.. The TATA Company with the largest number of customer touch-points a company with a wide array of Customers: Detergent manufacturers Glass manufacturers Builders/ Contractors/ masons Chemicals / dye / dyechem manufacturers Paper and newsprint manufacturers Textiles manufacturers Petroleum refiners Food manufacturers Farmers Housewives 19

20 Getting where we are today was not easy Some of the challenges we had to overcome: Global competition & lower Customs Duties More demanding customers Intense price competition in Soda Ash industry Difficult regulatory environment on Fertilisers More stringent environmental regulations 20

21 Solutions & Responses Improvements in Operational Efficiency Strong Customer Focus Building People Competencies Strategic Sourcing & Improved Supply Chain Management Continuous Improvement Responsible Care & Focus on SHE Cultural Change 21

22 Additionally Visionary & Bold Decisions Benchmarked with the Best Succeeded in de-commoditising our businesses TKS in Fertiliser Space Branding most commonly used commodity Salt Relationship building though KAM for Chemicals 22

23 Superbrand - Ranked # 1 food brand by Economic Times Thrice in a row Tata Salt - pioneer in branded salt market Nationwide distribution - over 43 million households Integrated operations at Chemical site - Embedded competitive advantage Business with social objective first Iodized Salt (goitre) 23

24 Now offering in addition to Farm Inputs Advisory Services Insurance of input investment Soil Testing 589 TATA KISAN SANSAR OUTLETS Output Purchase Crop Loans Farm Machines 24

25 TCL has outperformed Indian & World Chemical Companies Market Value Indexed at 100 on Jan TATA CHEMICALS INDIA CHEMICALS INDIA MARKET WORLD CHEMICALS Jan-06 Jan-05 Jan-04 Jan-03 Jan-02 Jan-01 Jan WORLD MARKET 25

26 26

27 Where we want to be The of tomorrow New Technology: Nano Bio tech products New Products, New Businesses: Fresh Produce, Bio-Fuels Fertilisers, Salt Soda Ash Decommoditisation: From agri input to Agri Business From just salt to India s number 1 food brand From traditional B to B, to Key Account partnerships 27

28 The Fresh Produce Business Leveraging the TKS Network Focusing on what matters the supply chain Partnering with TOTAL PRODUCE 100 years of expertise Sequential roll-out Punjab and West Bengal In Distribution Centres In 3 years 20 Distribution Centres In 5 years 40 Distribution Centres A 160,000 Cr. market 28

29 The Bio-fuels Business 1. Proposed entry into both Bio Diesel and Bio Ethanol 2. Trial cultivation of non-food agricultural feedstock commenced in both cases 3. Dual approach conventional technology & advanced new technologies (concurrent development) 4. Development of novel technologies is the responsibility of the Innovation Centre (Pune) 29

30 Existing Businesses will also Grow De-bottlenecking of Babrala has commenced Modernisation Of Mithapur A Global Bi-carb Business Magadi Output will Is taking shape Double in 2008 Has commenced 30

31 The Innovation Centre 1. Based in Pune 2. Focus on the Bio-Nano space scientists going to 100 in 2 years time & ~500 in the longer-term 4. Current Focus Areas: Bio Diesel cleaner & simpler trans - esterification Bio Ethanol Enzyamatic Cellulosic conversions Nano Materials, Bio Materials & Advanced/Smart Materials 25% Research into Blue Sky areas 31

32 THANK YOU Is looking forward to an exciting future! 32

33 33