INEOS Styrolution India Limited has informed the Exchange regarding Investor Presentation
INEQS STYROLUTION
INEOS Styrolution India Ltd. 5th Floor, Ohm House-II, Ohm Business Park, Subhanpura, Vadodara — 390 023 Gujarat, India
ineos—styrolution.com
14 February 2019
To, BSE limited
Dept. DSC_CRD Phiroze Jeejeebhoy Towers, Dalal Street
Bandra (E) Mumbai 400 001
National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, ’6’ Block, Bandra— Kurla Complex, Bandra (E) Mumbai 400 051
Stock code No. 506222
Stock code. INEOSSTYRO
Subject: Investors Presentation
Dear Sir,
In continuation to our letter dated 31.01.2019 informing about the earnings call organized by the Company on 14 February 2019, please find the attached Investor Presentation relating to the Unaudited Financial Results for the third quarter ended on 31 December 2018.
You are requested to kindly take the above information on your records.
Thanking you.
Yours faithfully, For INEOS Styrolutio
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Sanjiv Vasudeva Managing Directo
INEOS STYROLUTION INDIA LIMITED ‘
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INVESTOR PRESENTATION Q3 2018-19 (Oct-Dec)
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Disclaimer
This presentation has been prepared by INEOS Styrolution India Ltd. (the “Company") solely for your information and may not be taken away, distributed, reproduced, or redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or published in whole or in part, for any purpose by recipients directly or indirectly to any other person. By accessing this presentation, you are agreeing to be bound by the trailing restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials. The Company may alter, modify or othenNise change in any manner the contents of this presentation, without obligation to notify any persons of such change or changes. This presentation and its contents are should not be copied, published, reproduced or disseminated in any manner.
This presentation may contain certain fonNard looking statements within the meaning of applicable securities law and regulations. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. Many factors could cause the actual results, performances, or achievements of the Company to be materially different from any future results, performances, or achievements. Significant factors that could make a difference to the Company’s operations include domestic and international economic conditions, changes in government regulations, tax regime and other statutes. In addition, please note that the date of this presentation is mentioned at the beginning of the presentation, and any fonNard-looking statements contained herein are based on assumptions that we believe to be reasonable as ofthis date. The Company does not undertake to update any fonNard-looking statements that may be made from time to time by or on behalf ofthe Company unless it is required by law.
In no event shall Styrolution or its directors or management, be responsible to any person or entity for any loss or damage, whether direct, indirect, incidental, consequential or otherwise, arising out of access or use or dissemination of information contained in this presentation, including, but not limited to, loss of profits.
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Continue...
Slide 2
Disclaimer
to change without notice and past performance is not
No representation, warranty, guarantee or undertaking (express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein and, accordingly, none of the Company, its advisors and representative and any of its or their affiliates, officers, directors, employees or agents, and anyone acting on behalf of such persons accepts any responsibility or liability (in negligence or otherwise) whatsoever arising directly or indirectly from this presentation or its contents or otherwise arising in connection therewith. Readers must make their own assessment of the relevance, accuracy and adequacy ofthe information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject indicative of future results. By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance ofthe Company’s business. This presentation is not for publication or distribution or release in any country where such distribution may lead to a breach of any law or regulatory requirement. The information contained herein does not constitute or form part of an offer or solicitation of an offer to purchase or subscribe for securities for sale. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. None of the Company’s securities may be offered or sold in the United States without registration under the US. Securities Act of 1933, as amended, except pursuant to an exemption from registration therefrom. This disclaimer clause and any claims arising out of the use of the information from this presentation shall be governed by the laws of India and only the courts in Vadodara, and no other Courts, shall havejurisdiction over the same. By accessing this presentation, the reader accepts this.
IN EQS STYROLUTION
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Slide 3
Notes
- Revenue from operations for period up to June 30, 2017 include excise duty, which is discontinued effective from July 01, 2017 upon In accordance with lnd AS 18, Revenue, GST is not included in revenue from implementation of Goods and Services Tax in India. In view of the aforesaid restructuring of indirect taxes, revenue from operations for the quarter Apr - Jun 2018 is not operations. comparable with the quarter Apr — Jun 2017. Similarly, revenue from operations for period Apr — Dec 2018 is not comparable with the period Apr — Dec 2017.
- Segment Information:
Segment reporting in financial results: Based on the "management approach" as defined in Ind AS 108 - 'Operating Segments', the Chief Operating Decision Maker (CODM), as represented by Chairman, Managing Director and CFO, evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. The accounting principles used in the preparation of these financial results are consistently applied to record revenue and expenditure in individual segment.
IN E©S STYROLUTION
Driving Success. Together.
Slide 4
Contents
Executive summary
Company information
Financial review
Outlook 2019
IN E(C)S STYROLUTION
Driving Success Togcihm
Slide 5
Executive summary
Oct-Dec18
Performance summary
°
°
Profit Before Tax (PBT) is (-355) INR mn in Oct - Dec 18 as compared to 107INR mn in Jul-Sep18 Profit Before Tax (PBT) is (-355) INR mn in Oct - Dec 18 as compared to 228 INR mn in Oct - Dec 17
° Automotive market slowed down after Aug and yearly plant shutdown in
Oct - Dec 18
Market update
Dec
° Slowdown observed across all segments ° Higher imports in PS segment
Oct - Dec 18
Business update
° Adverse impact of high cost raw material inventory ° Significant drop in market prices leading to adverse impact on margins ° Demand further impacted due to weak INR keeping input cost high
IN E©S STYROLUTION
Driving Success. Together:
Slide 6
INEOS Styrolution at a glance
3,300 EMPLOYEES
“I.“ 9
COUNTRIES
18 'l' "'
PRODUCTION SITES
6R&D CENTRES
24sa|es offices.
APPROX.1,00°
_
PATENTS
4000*
. . CUSTOMERS H
1,500‘ PRODUCTS I g I: a -? a as
2,000+APPLICATIONS ACROSS SEVEN INDUSTRIES
5 3 ‘\EUrROSB'ILNLIR‘OECENUE © ‘5' 6 6 9 O 9 mm
TOYS, SPORE %=5'
CONSTRUCTION
ELECWCNICS
HEALTHCARE
HDUSEHC’J}
PACKAGING
AUTOMOTIVE
IN EQS STYROLUTION
Driving Success. Togethen
Slide 7
I LEISURE
Global reach and proximity to customer markets
Antwerp SM, PS, ABS, sec
Addyston INEOS ABS1
ABS, Specialties
Bayport SM
Altamira
PS, ABSI ASA, SBC, AMSAN
Channahon
PS
Decatur
PS, SMMA
Cologne ABS specialties
Schwarzheide
Compounding
Ludwigshafen ABSI ASA. SAN. AMSAN.
SMMA
Moxi
Compounding
Vadodara
ABS
Ulsan
ASA, PS, ABS,
Compounding
Map Ta Phut ABS, SAN
(1) INEOS Styrolution acts as exclusive distributor for the INEOS ABS plant in Addyston, Ohio.
IN E©S STYROLUTION
Driving Success. Together.
SM: styrene monomer PS: polystyrene ABS: acrylonitrile butadiene styrene Specialties: ABS/ ASA, ASA, SAN, AMSAN, SBC, SMMA
Slide 8
Shareholding pattern as at Dec 31, 2018
INEOS Styrolution APAC Pte Ltd., Singapore 75.00%
Foreign institutions 0.69%
Domestic
institutions
5.98%
IEPF *
0.16%
Non institutions
18.17%
* IEPF : Investor Education and Protection Fund [Government Organization]
IN E(C)S STYROLUTION
Driving Success. Togethc‘
Slide 9
Sales performance
SALES VOLUME KT
SALES REVENUE INR mn
.2017-18
.2018-19
.2017-18
.2018-19
Apr-J un
Jul-Sep
Oct-Dec
APF'JU”
”"399
Od'DeC
4,529
4,450
° Sales revenue — refer note below.
Revenue from operations for periods up to June 30, 2017 include excise duty, which is discontinued effective from July 01, 2017 upon included in revenue from implementation of Goods and Services Tax (GST) in India. operations. In view ofthe aforesaid restructuring of indirect taxes, revenue from operations for the period Apr — Jun 18 is not comparable with period Apr — Jun 17.
In accordance with Ind AS 18, Revenue GST is not
[N E(C)S STYROLUTION
Driving Success. Together
Slide 10
Financial review Q3 2018-19 (Oct - Dec) results highlights
(Unit: INR mn except volumes & EPS)
Particulars
Oct-Dec 18
Jul-Sep 18
Oct-Dec 17
% vs Jul-Sep % vs Oct-Dec
18
17
Volumes (kt)
Sales revenue
Other income
Cost of goods sold
Depreciation & amortization
Other expenses
Profit before tax
Profit after tax
Other comprehensive income
Total comprehensive income
32.5
4,450
24
3,972
54
803
(355)
(228)
(1)
(229)
39.1
5,675
46
4,690
64
860
107
70
0
70
36.1
4,529
16
3,432
68
817
228
143
8
151
EPS (Rs.)
(12.95)
3.99
8.14
(16.8)
(21.6)
(48.4)
(15.3)
(16.1)
(6.7)
(430.6)
(424.6)
(460.1)
(424.8)
(424.6)
(10.0)
(1.7)
50.0
15.7
(20.6)
(1.7)
(255.3)
(259.1)
(116.2)
(251.8)
(259.1)
lN E(C)S STYROLUTION
Driving Success. Trvgcvthzw
Slide 11
Financial YTD Dec 2018 (Apr - Dec) results highlights
review
Particulars
YTD Dec'18
YTD Dec'17
%
(Unit: INR mn except volumes & EPS)
Volumes (kt)
Sales Revenue
Other Income
Cost of goods sold
Depreciation & amortization
Other expenses
Profit before tax
Profit after tax
Other comprehensive income
Total comprehensive income
115.5
114.0
49
119.6
16,062
107
13,446
180
2,524
19
11
(2)
10
14,397
11,368
191
2,360
527
340
5
346
1.2
11.6
18.3
(5.6)
6.9
(96.5)
(96.7)
(129.5)
(97.2)
(96.7)
EPS (Rs)
0.64
19.35
Revenue from operations for periods up to June 30, 2017 include excise duty, which is discontinued effective from July 01, 2017 upon included in revenue from implementation of Goods and Services Tax (GST) in India. operations. In view of the aforesaid restructuring of indirect taxes, revenue from operations for the period Apr — Dec 18 is not comparable with the period Apr — Dec 17.
In accordance with Ind AS 18, Revenue, GST is not
INEQS STYROLUTION
Driving Success. Togatlw
Slide 12
Segment revenue & results Q3 2018-19 (Oct - Dec) results highlights
Particulars
Oct-Dec 13
Jul-Sep 13
Oct-Dec 17
(Unit: INR mn)
% VS 113's” % VS 107°t'Dec
1. Segment revenue
(Revenue from operations)
(a) Specialties
(b) Polystyrene
(c) Others
Total
2. Segment results
(Segment profit before interest and tax)
(a) Specialties
(b) Polystyrene
(c) Others
3,299
1,157
4,393
1,290
3,277
1,253
-
-
-
4,455
5,684
4,530
(24.9)
(10.4)
0.0
(21.6)
0.7
(7.7)
0.0
(1.7)
(125)
(200)
233
(67)
245
(153.7)
(151.0)
7
198.9
(3009.9)
-
-
-
0.0
0.0
Total segment profit before interest and tax
(i) Interest expense
(ii) Interest income
(flztgm:rr::::|)locable expenditure
Profit before tax
(325)
(45)
0
16
(355)
166
(18)
18
(58)
107
(296.3)
(229.1)
252
(34)
4.3
147.7
(99.6)
6
(127.3)
32.3
(98.3)
160.0
228
(430.6)
(255.3)
ll\l E(C)S STYROLUTION
Driving Success. Trigcvtl'irw
Slide 13
Segment revenue & results YTD Dec 2018 (Apr - Dec) results highlights
Particulars
YTD Dec'18
YTD Dec'17
% VS,YTD
Dec 17
(Unit: INR mn)
1. Segment revenue
(Revenue from operations)
(a) Specialties
(b) Polystyrene
(c) Others
Total
2. Segment results
(Segment profit before interest and tax)
(a) Specialties
(b) Polystyrene
(c) Others
Total segment profit before interest and tax
(i) Interest expense
(lb Interest income
(Eilztim:;:::)loca ble expenditure
Profit before tax
12,046
4,037
10,129
4,273
16,084
14,402
451
(273)
661
(22)
-
-
177
(82)
22
(98)
19
639
(119)
25
(17)
527
18.9
(5.5)
11.7
(31.8)
1155.9
0.0
(72.2)
(30.7)
(11.1)
464.9
(96.5)
Revenue from operations for periods up to June 30, 2017 include excise duty, which is discontinued effective from July 01, 2017 upon included in revenue from implementation of Goods and Services Tax (GST) in India. operations. In view of the aforesaid restructuring of indirect taxes, revenue from operations for the period Apr — Dec 18 is not comparable with the period Apr — Dec 17.
In accordance with Ind AS 18, Revenue, GST is not
IN E(C)S STYROLUTION
Driving Success. Togcthm
Slide 14
Segment assets & liabilities YTD Dec 2018 (Apr - Dec) results highlights
Particulars
YTD Dec'18
YTD Dec'17
(umthan)
% vs ,YTD
Dec17
Segment assets
(a)Spedaflms
(b) Polystyrene
(c) Unallocated
Total segment assets
Segmentfiabmfies
(a)Spedaflms
(b) Polystyrene
(c) Unallocated
Total segment liabilites
9fl78
2,631
295
12,104
2329
662
2,743
5,734
6938
2,290
393
9,621
L706
114
1,670
3,489
323
14.9
(25.1)
25.8
365
481.7
64.3
64.3
ll\l E(C)S STYROLUTION
Driving Success. Trvgrvtl'w
Slide 15
Outlook 2019
Assumptions for 2019
° We expect various budgetary schemes to continue to drive demand growth
° We expect currency rates and raw material prices to stabilize
Target 2019
° Continue to strengthen our position in Specialties focus segments and drive product mix to maximize
margins
° Safe and successful startup of Moxi compounding expansion from 66kt to 100 kt
IN EQS STYROLUTION
Driving Success. Togethen
Slide 16
THANK YOU
[SNTEé'aunou
Driving Success. Together.