SINTEXPLA ST IC S T ECH N O LO G Y
Ref No: SEC/NSE/BSE/2018-19 November 19, 2018
The Corporate Relationship Dept. BSE LimitedI s* Floor, New Trading Ring,Rotunda Building, P.J.Towers, ’ Dalai Street, Mumbai-400 001
Stock Code: Equity - SPTL Stock Code: Equity 540653
SUB: Participation in Conference /Investors Meet
Dear Sir/Madam,
We hereby inform you that the Management of the Company will be participating in following conference with the Analyst and Institutional Investors to discuss Corporate Presentation of the Company.
The Manager, Capital Market (Listing) National Stock Exchange of India Ltd.Exchange Plaza, 5th Floor,Plot No : C / l, G Block Bandra Kurla Complex Bandra (E), Mumbai-400 051
Date of Conference Name of Investors/Conference Type of Conference/ Location 8tMeeting Timings
November 20th ,2018 IDFC Securities'annual investor Group Meeting & one Grand Hyattconference The Stock called on one meeting Hotel, MumbaiIndia' Timing : 11 am
to 1.30 pm
Note: Dates are subject to change. Meeting can be postponed/cancelled by the Investors/Company due to exigencies.
Details of the conference as required under the SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015 is being uploaded on the Company's Website www.sintexplastics.com .
We would further like to inform that Corporate Presentation to be made at said conference(s) by the Management of the Company is enclosed herewith and will be also placed on the Company's Website.
This is for the purpose of dissemination of information widely to the Members of the Company.
Thanking you.
Yours faithfully,For SINTEX PLASTICS TECHNOLOGY LIMITED
Manan Bhavsar
Company Secretary
Enclosed: As stated above.
SINTEX PLASTICS TECHNOLOGY LIMITED(Formerly known as Neev Educare Limited)Regd. Office: In the premises of Sintex-BAPL Ltd., Near Seven Garnala, Kalol (N.G.) - 382721 Phone: +91-2764-253500 E-mail: [email protected]
CIN: U74120GJ2015PLC084071 www.sintex-plastics.com
• INDIA • USA • FRANCE • GERMANY • HUNGARY • MOROCCO • POLAND • SLOVAKIA • TUNISIA
Custom Moulding ( India & Overseas)
The group has 35 manufacturing facilities and a
global footprint span across 9 countries and 4
continents
The company is equipped with diverse capabilities
of customized moulding which find applications in
many industries such as Automotive, Aerospace &
Defence, Electrical, Mass Transit and Off-the-
Road Vehicles, Medical imaging products etc.
The company uses a range of custom moulding
processes and technologies from blow moulding,
open moulding, rotational moulding, LRTM and
Vacuum Bag Infusion Molding to ultrasonic
welding to meet all types of customer needs and
requirements
Sintex has presence in a diversified range of
Technologies, Geographies and Industry
Sectors/Customers i.e. no single customer
contributes more than 5% of CM sales
Retail & Others Prefab and Infra Division
■ Pioneers in water storage solutions since 1975
having a varied portfolio of products and a market
leadership of more than 60% share across India.
Our brands include Sintex, Reno, Renotuf, Sintex
Pure and Titus
■ Affordable, quick to construct and low maintenance
plastic products such as false ceilings, doors,
cabinets aimed at low cost, mass housing solutions
such as slum rehabilitation shelters and Janta
housing. Our brands include Indian, Micra and
Sierra
■ Aggressively promoting a new range of `Euroline’
dustbins and containers with international looks
and finish, which have received an overwhelming
response from several markets particularly Eastern
India.
■ Others include Sandwich panel, Biogas chambers,
water treatment plants, material handling products
for pharma, textile and other industries
■ The company’s manufacturing plants which covers
80% of India’s geography for execution with
different materials for various climatic conditions,
utility structures, sanitation programs and varied
requirements
■ Public healthcare centers, schools, public
administration buildings, Labor colonies, Portable
toilets,
■ Introduced Prefabricated bunk houses in India in
2005
■ Prefabricated bunk houses are fully furnished and
equipped with modern facilities
■ Project offices, site offices and residential units for
long-gestation projects
BUSINESS SUMMARY
Company
Profile
High working capital with significant
government business
Low Retail focus with obsolete
distribution channel
Focus largely on B2B and B2G
• Strong Retail focus, Rejuvenated distribution
channel. Renewed brand positioning and
focus on premium retail market
• Focus B2C and global plastics solutions
provider
• Reduce government business, cut down
working capital
Large Capex’s, build businesses through
acquisitions
Combination of B2B and B2G presence
led to high capital requirement
Consistently borrowed for expansions
• Free cash generation, Debt reduction
• Focus on Retail, Institutional and Industrial
business
• Generate better ROCE
• Fast track debt reduction and higher free
cash generation
• Capex driven, asset heavy model
• Aggressively added new verticals with
borrowed capital
• Outsourced manufacturing, focus on branding
and distribution – asset light model.
• Focused on Retail and Custom Molding
segment
• Generate business with internal accruals
Capital
Allocation
Business
Strategy
Pre-demerger Beyond FY18
SPTL - Transformation and Transition
Lucrative Customer base & Strong
brand positioning
Retail & Institutional
Superior management bandwidth &
empowerment to biz heads Technology, Product Development
Pillars of
strength
for SPTL
Opportunity
Resilient Model - Industrial and Retail business
CM Industrial
History & Milestones
• Incorporated
as The Bharat
Vijay Mills
Limited,
established
composite
textile mill in
Kalol, Gujarat
• Commenced
manufacturing of
plastic moulded
polyethylene
liquid storage
tanks
• Introduced new
plastic products
like; doors,
window frames
& pallets
• Renamed to
Sintex Industries
Limited
• Entered into
SMC moulded
products,
pultruded
products, resin
transfer moulded
products and
injection
moulded
products
• Commencement
of production of
prefabricated
structures
• Entered into
licensing
agreement with
Containment
Solutions for
sub-surface and
underwater fuel
tanks
• Entered housing
sector with
monolithic
construction
• First international
acquisition - 81% in
Wausaukee
Composites Inc.,
USA
• Acquired automotive
business division of
Bright Brothers Ltd
• Acquired 100%
stake in Nief Plastic
SA, a French
Company
• Acquired 100%
stake in its
competitor, Nero
Plastics Inc., USA
• Sintex NP acquired
Groupe Simonin,
France, NP Germany &
NP Polska
• Sintex - BAPL brings
Precision Technology,
Thermo set and Light
Resin Transfer
Moulding (LRTM) to
India
• Sintex BAPL signs a
JV with Rototech, Italy
commences production
in India.
• The demerger of
Plastics Division and
SPTL is listed in the
stock exchanges on 8th
August 2017
• FY18 - KKR infuses
INR 11,900 mn in S-
BAPL limited,
subsidiary of SPTL
• Renewed focus on
Retail Business (B2C)
1931-1974
1975-1990
1991-2000
2001-2004
2005-2008
2009-2018
6
Group Structure
Sintex Plastics Technology Limited1 (SPTL)
Sintex BAPL Limited2
Industrial Custom
Molding3
Retail Custom
Moulding3
Sintex Prefab & Infra Limited2
(Erstwhile Sintex Infra Projects
Ltd)
7
FY18
Net Revenues
INR 55360
Mn
Prefab/Monolithic3 Infrastructure3
1 Legal Entity – Listed 2 Legal Entity 3 SBU (not a standalone Legal Entity)
All subsidiaries are 100% subsidiary
Retail
Custom Molding Segment - Key Focus Areas
Institutional Aerospace
Electrical
HVAC
Mass Transit
Off Road
Vehicles
Automotive
Decorative
Parts
Medical
Imaging
Retail and Institutional Business
Key Business Areas
Tanks
overhead &
underground
Doors Profiles &
Fabrication
Electrical SMC
products Continues
Sandwich panel
Environmental
products
Retail Direct control on retail
sales, connecting to end
customer
Focus on secondary sales
Better pricing and margins
Leverage operational
efficiency IT, HR and
ensure faster market
turnaround
New distribution channel to
launch range of products
Market development and
customer centric approach
CM Retail Q2FY19 - Tanks Launched Across the Pyramid
New Launches
Sintex Pure Coloured – Super premium
Sintex ACE - premium
Titus Coloured – Mid range
Sintex NEO – Lower end of Pyramid
Institutional
Focused institutional approach
Key client account
management by focused sales
force
Faster turnaround and better
servicing through informed
sales force
Leverage relationships over
longer term through a pipeline
of products
Retail and Institutional Business
Revenue (₹ Bn) & EBITDA % • The company is equipped with diverse capabilities 39 of customized
moulding which find applications in many industries such as
Automotives, Aerospace & Defence, Electrical, Mass Transit and
Off-the-Road Vehicles, Medical imaging products etc.
• Sintex has presence in a diversified range of Technologies,
Geographies and Industry Sectors/Customers i.e. no single customer
contributes more than 5% of CM sales.
• Sintex’s presence in custom mouldings in India and globally is through
its subsidiary in Europe, US and India.
Domestic 48% Overseas
52%
Custom Mouldings – Industrial Overview
12
FY18 Geographical Revenue Breakup Strong growth in SNP France
13.65 16.70 17.50 18.82 20.59
10.0% 10.0% 11.0% 12.2% 12.6%
FY14 FY15 FY16 FY17 FY18
Segment revenue ( ₹ Bn) & EBITDA Margin %
39 38
20.1
15% 15%
16%
FY17 FY18 H1FY19
PRODUCTS
• Lighting: daytime running lights, anti-fog
lights, electronic card, wire work and
others.
• Under the hood: pistons, mechatronic
elements, turbine pump, hosing,
connectivity and others.
• Bodywork fittings: structural parts,
hatches, grids, trims and others.
• Various parts for CT scanners, MRI
scanners, oncology machines, security
& baggage scanners and others
Custom Mouldings – Overseas
Clients Clients
PRODUCTS
• Aeronautics: air distribution, embedded
box, ventilation tube, brackets and others.
• Defense: masks, drift of missile, night
vision system, missile corset and others.
• Decorative : Cosmetics, Gift articles
encasing and high end products shifted
from wood to composites.
Clients
Connectors Sensor Switches
Railway Engineering
Lightings Bodywork Fittings
Air distribution Drift of Missile Decorative parts
Electrical Automotive/ Medical Imaging Aeronautics, Defence & Decorative
13
CT Scanner
PRODUCTS
• High & medium voltage: support
structures, connectors, breaker structures
and others.
• Low voltage: connecting comb, case &
connectors, winding carriers and others.
• Ultra terminal: sensor switches, tappet,
decorated facades and others.
• Railway Engineering: junction box,
insulated-gate bipolar transistor (IGBT)
cooler, splints and others.
Custom Moulding - Overseas
Product Basket
Medical Imaging
Electrical Automotive
Electrical
Automotives
14
PLASTRONICS LDS
Railway Segment
Metal Stamping
Mass Transit
Mass Transit
THERMOPLASTIC INJECTION Aerospace & Defence
Railway Segment Household Appliances
LRTM
Global Market Size of Composites
by Value (US $ Bn)
Source: Lucintel, IBEF , Grand view Research, Start view Research, SIEM
Custom Moulding overview
80
130
2018 2024
15
1,25,000 4,45,000 5,49,000
84,300 1,48,500 1,83,000
83,200
1,83,800 2,00,000
62,500
2,23,300 2,95,000
69,000
4,36,700 4,62,500
39,900 1,78,700 2,00,000
FY15 FY26 Base Case FY26 Optimise Case
Component
after market
Component
Exports
OEM Exports
OEM Value
Addition
Component
imports
Systems/compone
nts in
house/Domestic
₹ Crore 4,64,000 18,89,500
16,16,000
Indian Automotive Segment
Composite Aircraft interiors market to exceed US$1.8 billion by 2023 as per Stratview Research .
Plastics consumption 12 million metric tons per annum (MMTPA) to 20 MMTPA
India produces 3% of the global volume of composites but this is expected to double over the next five years
The demand for electrical and electronics in the Indian composites market is expected to experience the highest growth over the
next five years
Make In India and government thrust on Infrastructure and defense indigenisation to boost composite volumes
Indian Automotive sector to grow 3.5 times between FY15 to FY26 as per SIAM
Custom Moulding - India :
• Instrument panel: air ducts, air vents, center
facades, consoles, glove box, speaker grills and
others.
• Interior & Exterior trims: pillar trim, scuff plate, rear trim pad, bumpers, step on pads, spoilers, and others.
• Under the hood: radiator air duct, housing, fans, engine covers, intercooler seal.
• Tanks: urea tanks for diesel vehicles, reservoir tanks, air cleaner parts
• Two wheeler: cover handles, engine covers, rear fenders, tail ends and others vents, center facades, consoles, glove box, speaker grills and others.
• Mass Transit : interiors & exteriors
• Electricals : switches, precitech parts and others.
Mass Transit Roto Molding Automotive
Customers Products
Ad blueTank
BS VI Emissionorms
CV Space
Electric Vehicle Mass transit
Adding Overseas customers in India Next wave
of growth
Revenue (INR Bn) and EBITDA (%) The prefabricated structures are completely knocked-down kits, that
can be assembled at the site by trained professionals thereby
minimising wastage and improving their cost effectiveness. This is
now India’s preferred solution towards strengthening social
infrastructure.
The company is a Pan-India player offering range of products from
Mid-day meal kitchens to classrooms, health care centres, Police
chowkis, Labour camps and Army shelters among others.
Consciously reducing government exposure and unlocking working
capital from government orders continues.
Prefab and Infra Business
Marquee Clients & Products
17 Housing
Healthcare
Infrastructure Defence Shelters
21 17
5.1
21.0%
11.0%
12.2%
FY17 FY18 H1FY19
INCOME STATEMENT CONSOLIDATED (INR Mn)
19
FY18 & H1FY19 Financial Performance
Performance by Business Segment
H1FY19 REVENUE
Rs 25,213 mn
20%
Prefab
& Infra
Revenue
Rs 5,113
Mn
EBIDTA
12.2%
80%
Custom
Molding
Revenue
Rs 20,100
Mn
EBIDTA
16%
Key Indicators
Income Statement FY18 H1FY19
Total Income 55,944 24,970
EBITDA 7,837 3,522
EBIDTA Margin(%) 14% 14%
PAT 1,358# 778
Balance Sheet (mn)
Equity Share Capital 614.5 631
Net Debt/Equity 0.89 0.91
# costs charged to P & L
Impact on FY18 bottom-line and potential future benefit
Item Restructuring/ costs Net Amount
(Rs mn)
Potential benefit
I One time demerger expense 449 Demerged SPTL to plough back cash generation, fast track debt
repayment
II US subsidiary shutting down (employed 400 people),
plant shifted to India
450 To generate over 20 mn US$ sales over 2 years from Pune & Kalol at
much higher margins, as US operations was running at a negative
EBITDA.
III Restructuring expenses/ re organising loans 470 To save outflow on account of interest outgo from FY19 .
Total Costs charged to P&L in FY18 1,360
Note : Item 1 charged in Q2FY18. Item ii and iii have been charged in Q4FY18.
One time costs charged to P & L P&L FY18 Rs mn
Total Income 55,944
EBITDA 7,837
Costs charged… 1,360
PAT 1,358
FY18 Rs mn
Charged in Q2 449
Charged in Q4 920
Total 1360
FY18 FINANCIALS
15.1%
18-20%
FY18 FY20-22
9.0%
16 – 20%
FY18 FY20-22
Capex Intensity (Capex to Sales)
DEBT To EBIDTA ( times)
ROCE %
4.0
2-2.5
FY18 FY20-22
Note : FY20-22 is on projected basis
EBIDTA %
5.0%
4.0%
FY18 FY20-22
Roadmap FY19-22
Key focus areas:
• Quality earnings with
better profitability
• Better utilisation of
assets – relatively
asset light model
• Brand leveraging and
growing retail portfolio
• Improve ROCE, Free
cash generation.
Capital allocation – Better return potential
Disclaimer
For further details, please feel free to contact our Investor Relations Representatives:
Mr. Rajiv Naidu
Sintex Plastics Technology Limited
Tel: +91-22-28270810
Email:[email protected] 22
Sintex Plastics Technology Limited Disclaimer: 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 events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Sintex Plastics Technology Limited (“Company” or “Sintex Plastics Technology Limited”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.