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Investor Presentation Dec 16, 2024
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Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements,” including those relating to general business plans and strategy of Coromandel International Ltd, its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results may differ materially from these forward‐looking statements due to a number of factors, including future changes or developments in Coromandel’s business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell, any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of Coromandel’s shares. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of Coromandel. Coromandel, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. Coromandel assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. Coromandel may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner. THE INFORMATION PRESENTED HERE IS NOT AN OFFER OR SOLICITATION OF ANY OFFER TO PURCHASE OR SELL ANY EQUITY SHARES OR ANY OTHER SECURITY OF COROMANDEL INTERNATIONAL LTD. 2
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Coromandel’s Agri presence for over a Century o E.I.D Parry started operating 1st Single Super Phosphate plant in Asia o Coromandel Fertilizers incorporated by synergistic efforts of 2 major US companies (Chevron and IMC) and EID Parry Ltd o Complex fertilizer plant commissioned at Visakhapatnam o Murugappa Group acquired majority shareholding in EID Parry o Acquired Sabero Organics to expand agrochemical exports o Acquisition of Liberty Phosphates to strengthen SSP portfolio o JV with Yanmar & Mitsui – Farm mechanization o Acquired Bio-Pesticides business of EID Parry o Investment in BMCC, Senegal for rock phosphate sourcing o Investment in Agtech startups o Acquired majority stake in Dhaksha, a drone startup o Strengthening Backward integration - Sulphuric acid, Phosphoric acid o Farm Inputs Division of EID Parry India merged with Coromandel o Investment in Godavari Fertilizers and Chemicals Ltd o Strategic investment in Foskor, SA & Tifert, Tunisia for sourcing Phosphoric Acid o Acquisition of FICOM & Pasura for expanding into Agrochemicals o Opening of first Rural Retail store in Andhra 1906 1961- 81 2000- 10 2010-20 2020 onwards 3
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Murugappa is a leading conglomerate with businesses across sectors $9.3 Bn Annual turnover $0.9 Bn Annual net profit $41.3 Bn Market Cap ~83k People 29 Businesses 98 Manufacturing Locations 9 Listed Companies EngineeringAgriculture Financial Services Other Businesses ~38% of group revenue ~27% of group revenue ~34% of group revenue ~1% of group revenue Based on FY23-24 numbers Flagship company of Murugappa Group Murugappa Group Overview 4
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Integrated farm solutions play Marketing ~6 million ton Plant Nutrients & Crop Protection products Delivering solutions to 20 million farmers ~13,000 channel partners, 800+ Retail stores Pan India presence 18 Manufacturing facilities, 4 JVs with overseas partners ~5300 employees & ~11000 contract staff 7 R&D centers Nutrient, Crop Protection, Bio, Nano Farm advisory & Spraying solutions 44% area under Green belt Coromandel: India’s leading Agri solutions Player 5
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Track record of strong financial performance 10,05311,30611,634 10,19511,127 13,22513,13714,182 19,111 29,628 22,058 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 365 402 357 477 691 720 1,065 1,329 1,528 2,013 1,641 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Based on Consolidated results Revenue (Rs Cr) PAT (Rs Cr) Earnings per Share (Rs/ share) • Volume expansion in Fertilisers • Scale-up of acquired biz: Sabero, Liberty, & Biopesticides • Organic play : Retail & Specialty Nutrients expansion • Value capture through Backward integration • Smart sourcing capabilities • Operational efficiencies & sweating of assets • Strong brand with unique blends of NPKs • Efficient Working capital management & robust cash generation • Strong Balance Sheet • Consistent returns: RoCE & RoE • Track record of dividend payout 6 12.6 13.8 12.3 16.4 23.6 24.6 36.4 45.3 52.1 68.5 55.8 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 16% CAGR 8% CAGR
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70 120 170 220 270 320 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Nifty 50 CIL Indexed Share price movement – 5 yr (Jan 2020 = 100) Delivering superior shareholders’ returns Amongst the Top value creators • 5 yrs Annualized stock return: 23% (Nifty 50: 15%) Market capitalization (30th Nov 24): Rs. 526 Billion Strong Balance Sheet • Zero Net Debt • Credit rating: Crisil AAA/Stable; IND AAA/Stable Prudent Capital Allocation: Balancing Investment to strengthen the Core & Investing in Future 23% CAGR 15% CAGR 6.5 12.0 12.0 12.0 12.0 6.0Dividend per share 7
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CROP NUTRIENTS CROP PROTECTION AGRI SERVICES TECH Largest Indian NPK player in Private sector Leading Speciality & Organic Marketer Largest Single Super Phosphate player Large Crop Protection Indian player Largest Rural Retail store network (800+) Largest Neem bioproducts manufacturing Crop protection Bio products Fertilizers & SSP Specialty Nutrients Nano DAP Organic fert Retail Drone Spraying Advisory Drones CDMO/ Specialty Chem Green Tech Agri Robotics 8 Our Businesses Insurance
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Integrated Operations with strong cost positioning • Strong cost positioning: Backward integrated complex plants • Flexibility to use multiple grades of rock & acid for NPK production • Portfolio: 13 NPK products, 5 SSP variants • Long term supply agreements for key raw materials • Overseas JVs for Rock phosphate & Phosphoric acid sourcing • Pilot plant & R&D - Product development & process improvement Promoting Balanced Nutrition • Largest private Phosphatic player, largest SSP producer & marketer in India • Strong presence in key South India markets • Market share (FY24) NPK: 15.0%, SSP: 15% • Unique grade sales share (FY24): 38% • Best in class agronomists & marketing team • Differentiated offerings: Nutriclinics – Soil/ Leaf/ Water testing & farm advisory • Strategic tech tie-ups – Shell, IIT Bombay- Monash Academy Plant Capacity Primary sales (mil ton) Fertilizers: Well placed to maintain Leadership in NPKs Phosphoric acid: 0.5 mil ton NPK (3 plants): 3.5 mil ton SSP (8 plants): 1.0 mil ton 2.6 2.8 2.8 3.1 3.0 0.5 0.5 0.5 0.5 0.50.6 0.7 0.8 0.8 0.73.7 4.0 4.1 4.5 4.2 FY20 FY21 FY22 FY23 FY24 NPK DAP SSP 9
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Vizag Capacity: 12.5 LMT IntegratedPhos Acid – 4 LMT & Sulphuric Acid - 11.5 LMT Ennore Capacity: 3 LMT IntegratedPhos Acid -0.6 LMT & Sulphuric Acid Plant – 2.6 LMT Kakinada Capacity: 20 lakh tons Flexibility to manufacture multiple grades Nano Fertiliser Production – 1 Crs Bottles/annum Single Super Phosphate Capacity: 1 Million ton Spread across 8 locations pan India 29.8 28.4 28.8 32.9 33.2 FY'20 FY'21 FY'22 FY'23 FY'24 6.0 6.7 7.4 8.6 6.7 FY'20 FY'21 FY'22 FY'23 FY'24 Complex Production (lakh ton) SSP Production (lakh ton) Fertilizers: State of the Art Manufacturing Facilities 10
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Diversified crop based solutions • Key segments: Water Soluble Fert, Secondary & Micro nutrients, Organic • Strong Brands built over 2 decades with pioneering R&D and Pan India presence • Leading Bentonite sulphur player. Expanding capacity. • Largest Organic marketer in India >2.5 Lac tons • Crop based Water soluble fert- Cereals, pulses, cotton & horticulture Promoting resource efficiency • High Nutrient uptake efficiency: 2x conventional fertilizers – Concept selling through Qualified Agronomists • Forayed into Liquid fertilizers , bio stimulants • Strong presence in key Northern & Central markets: MP, Punjab, Haryana, Gujarat • 60,000+ soil tests Plants Sales mix (FY24) Speciality Nutrients: Promoting Resource Efficiency Liquid fertiliser plant WSF: 30k mt Bentonite Sulphur: 25k mt 11 76% 24% SND Organic
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Robust network ensuring last mile connect • India's largest Agri retail chain – One stop shop for entire agri needs • Started in 2008. Presence at mandal level. • Markets served: AP, Telangana, Karnataka & Tamil Nadu • 98% stores profitable • Own manufactured and label products: Ag nutrients, crop pesticides, seeds, vet feed, farm implements Integrated approach to Farm prosperity • Crop based packages: Solutions approach • Strong farmer connect – 70% turnover through Captive products • Farm Services- Technical solutions,, Krishi Shastra, Soil testing, Precision farming • Scientist at store to assist farmers • E com sales & product delivery services Plant infrastructure Sales mix (FY24) Retail: Customer value proposition of Quality, Trust & Farm Advice Retail team strength: 3000+ Direct connect with 3.3 mil farmers Retail outlets: 800+ 52% 21% 18% 9% Fert CPC SND & Organic Others* *includes Seeds, Implements, Vet 12
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Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 CAGR Turnover 10,452 8,913 9,602 11,505 11,550 12,200 16,714 27,162 19,775 8% PBIT^ 595 730 1,014 1,180 1,507 1,654 1,773 2,594 2,166 18% Capex/ non-current assets# 71 37 85 204 631 123 435 465 389 Nutrient & Other Allied* Business: Segment Performance Rs Cr • Turnover growth led by: NPK volumes (up 42%), SND, Nano, Retail scaleup • Improved Profitability led by volume scaleup, backward integration, improved product mix & Retail • Capex picking pace since 2019 *includes Fertiliser, SSP, SND, Nano, Retail businesses ^before un-allocable expenses 13 #consists of addition to fixed assets, intangibles and RoU / Lease assets Based on Consolidated results
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Presence in Complex Chemistries • 6th largest Indian crop protection player– 20 Technicals • Strong R&D practices: 117 Patents filed, 29 granted • Key Chemistries - Dithiocarbamates, Organophosphates, Triazoles, Strobilurins • Key Processes - Chlorination, Bromination, Nitration, Hydrogenation, Hydrolysis, Condensation, Acetalization, Esterification Wide network & global registrations • Exporting in ~80 nations. 1000+ global registrations • Domestic sales thru B2B & B2C – 50,000 retailers • Global innovator tie-ups • Gromor Suraksha – End to end Crop lifecycle approach • Product portfolio: Insecticides, Fungicides, Herbicides, Nematicides, Bio stimulants Sales mix (FY24) Crop Protection: Technical capabilities with global market presence 3 NABL approved R&D labs 3 Technical plants: 90k mt 43% 26% 30% 1% Exports Domestic B2B Domestic Formulations Others 1 Pilot, 2 Formulation plants Plant infrastructure 14
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Crop Protection: Focus on new product launches 6 products launched • 1 Herbicide • 1 Fungicide • 4 Insecticides 4 products launched • 3 Insecticides • 1 Fungicide 7 products launched • 3 Herbicides • 2 Fungicides • 2 Insecticides 10 new products launched • 1 Herbicide • 1 Fungicide • 4 Insecticides 2021-22 2022-23 2023-24 2024-25 New Product Turnover Index: 15% 15
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Leaders in Neem extraction • Largest neem based bioproducts producer globally • Highest purity & best in class stability at plant - 2 yrs shelf life • Mfg. process: Aflatoxins<50ppb vs European norms of 100 ppb • Strong R&D capability driving portfolio expansion • Pilot plant for Microbials research • Captive neem plantation Diversified portfolio promoting IPM practices • Global Organic certifications: DNV, IMO • Export markets: US, Canada, Europe • Product Portfolio - Bio protection & Bio nutrition • Microbials – Launch in FY25 Plant infrastructure Sales mix (FY24) Bioproducts: Promoting Integrated Pest Management Captive neem plantation: 700 acre 1 R&D center 21 patents, 8 granted Aza capacity: 22.5 mt 64% 36% Exports Domestic 16
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Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 CAGR Turnover 1,282 1,408 1,662 1,802 1,685 2,084 2,511 2,636 2,457 8% PBIT^ 164 262 269 283 220 347 368 366 290 7% Capex/ non-current assets# 25 55 38 74 56 69 112 156 138 Crop Protection* Business: Segment Performance Rs Cr • Doubling turnover since 2016: Volume expansion, Bio integration • Global headwinds impacted Margins in last 2 years • Capex targeting infrastructure strengthening *includes Crop Protection, Bio products businesses ^before un-allocable expenses 17 #consists of addition to fixed assets, intangibles and RoU / Lease assets Based on Consolidated results
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Differentiated products & Service offerings o Crop based package of practices o New product turnover index in CPC: 15% o New tech unique products: Nano, novel combinations o Agronomists, Farm analytics, Crop diagnostics, Advisory & Services o Drone Spraying services Integrated Operations bringing cost competitiveness o Strong supply chain linkages: Mining to Manufacturing o 3.5 million ton NPK capacity: 25% of India NPK production o 20 Technical in Agchem feeding into formulations, 1000+ global product registrations o Captive plantations (700 acres) for Neem sourcing 18 Entrenched market presence o Pan India presence: Strong Factory to Farm linkage o Direct connect with over 3 million farmers thru MGCs o Presence thru 13000 dealers, 800 Retail stores o Gromor - Strong brand salience Coromandel’s Key Strengths
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• 7 state-of-the-art R&D centers: Nutrients (2), Crop Protection (3), Bio (1), Nano tech (1) • 3 Pilot plants for Technology transfer • Soil testing lab, Polyhouse • R&D farm for Product trials • Core R&D disciplines – Inorganic chemistry, Organic chemistry, Process engineering, Formulation chemistry, Microbiology, Biochemistry, Nanotechnology • Product development, Process improvement, Regulatory & Registrations • Open Innovation: IIT Bombay, IIT Kharagpur, TNAU, NRC, ICAR among others • Sulphur enhanced Fertilizers: Shell technology • Pioneers in introducing Nano technology in Agriculture • UAVs development Infrastructure Research focus Partnerships Technology orientation – Building future play R&D team ~100 Scientists & Researchers New Products introduced (last 3 years): 33 Patents filed: 158, Granted: 49 Highlights 19
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Efficient Manufacturing Operations Fertilizer – Complex, SND & Nano Crop Protection & Bioproducts Fertilizer - SSP Drones Coromandel – Manufacturing Operations 20 NPK/ DAP: 3.5 million ton 3 Plants SSP: 1.0 million ton 8 Plants Crop Protection: 90,000 ton 5 Plants Bioproducts: 22.5 ton Aza 1 Plant Water Soluble Fertilizer: 30,000 ton 1 Plant Nano products: 1 crore bottles 1 Plant
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• Bird’s Paradise, a birds’ Sanctuary established at Kakinada plant. Home to 100+ species, Recognized by UNDP • Afforestation thru Miyawaki Plantation: 91000 trees planted in 2 years • Desalination plant at Vizag – 6 mlpd • Power generation thru Waste Heat Recovery – 20 MW • Zero liquid discharge operations at major units • Positively impacting 1 million lives thru CSR programs • Focus on Education, Health & Community Development • Annual CSR spend (FY24): Rs 42 Crore Environment Resource Efficiency Social Impact Doing it Responsibly 61 Dow Jones Sustainability Index TRIR (FY24): 0.33 (Recordable injuries per mil man hours) 44% Area under green plantation Highlights 21
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Reduction in Scope 1 & Scope 2 emission intensity by 25% by 2030 Coverage under Green triangle products & neem- based pesticides: 6 mil ha Share of alternate water source within Total Water consumption to 20% by 2025 Increase the share of renewable energy within total electrical energy to 20% by 2030 Achieve water neutrality in SSP operations by 2030 Driving sustainable farm practices through improving coverage under Drone spraying to 2 lakh acre by 2025 Farmer coverage under agricultural support programmes for adopting sustainable agri practices: 1.5 mil Direct beneficiaries impacted through CSR activities: 0.6 mil Employee Engagement Index: > 75 Protecting the planet Minimizing Resource Use Inclusive Growth With firm commitments on Sustainability 22
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Coromandel Reimagined: Opportunities Ahead 23
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Nurturing New Businesses Nano products Gromor Drive • Pioneers in introducing patented Nano technology in agriculture • Capacity: 10,000 kl • ~3 million Nano DAP bottles marketed till date • Coromandel Nanotechnology Center at Coimbatore to drive research in Nano • Offers Drone based spraying services • Nutrient use efficiency & upto 90% water savings in applications • Acres covered till date: 1 lakh acres • Fleet of ~150 drones driven by DGCA certified pilots • Tie-up with 10+ institutional partners 24
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Nurturing New Businesses BMCC Senegal Dhaksha Unmanned Systems • Coromandel holds 45% equity in rock phosphate mines in BMCC Senegal • Phosphate mineral resources ~250 M tons • Can meet upto one-third of Coromandel’s rock requirement • Commissioned fixed processing plant: Production efficiency & rock output • Coromandel holds 58% equity in drone company Dhaksha • Business segments: Agri, defence, Enterprise • Drone Pilot training unit in Partnership with Anna University • Only Player with type certificates for 4 drone models in medium & small categories 25
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Strengthening the Core Backward Integration Enhancing Capacity Sul acid plant, Kakinada 2000 tpd (2026) Phos acid plant, Kakinada: 650 tpd (2026) Fixed Processing Plant, Senegal Increase throughput (2025) Captive neem plantation, Cuddalore (700+ acres) Granulation train, Kakinada 7.5 lakh ton (2026) MPP, Ankleshwar 2 products (2026) Nano Plant, Kakinada Urea SSP, Bentonite Sulphur, Magnesium Sulphate 26
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Strengthening the Core Novel Solutions In-licensing & Partnerships Unique Combinations Drone spraying Product to Solutions approach Biologicals – Microbials, Plant Extract New Markets B2C Exports – SE Asia, Brazil Fertilizer – Pan India play E Com channel Retail Store expansion Existing & New markets 27
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Project name FY25 FY26 FY27 Total Sulphuric acid & Phosphoric acid, Kakinada 450 650 1100 Granulation Plant, Kakinada 200 300 500 Multi Product Plant, Ankleshwar 90 70 160 Key investments announced Rs Cr Investment theme: • Backward integration • Capacity expansion in NPKs • New age products in Crop Protection 28
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Ag CDMO & Specialty Chem Phosphate Chemistries Retail – Service expansion • Leveraging know-how in complex chemistries • Investments over next 2 years to build a business of scale . • Leveraging Phosphate handling and processing capabilities to build a strong Downstream pipeline of value added products • Insurance: New subsidiary formed • Precision advisory – Satellite, Plant diagnostics, Weather services Leveraging existing capabilities 29
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Investments in Next Gen Technologies Climate smart solutions Ecozen: Climate –smart solutions for agriculture & beyond Solar based cold rooms Solar irrigation solutions Leveraging fermentation technology String Bio: Fermentation technology Converting green house gases into next generation products for different uses Agricultural robots Xmachines: Autonomous agricultural robots for handling various agricultural activities Hardware and AI Based Analytics Aerial Unmanned Systems Dhaksha: India’s leading drone player Solutions in defence, agriculture & enterprise 30
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Key Financials – 10 years’ view Details FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Revenue 11,306 11,634 10,195 11,127 13,225 13,137 14,182 19,111 29,628 22,058 EBITDA ^ 853 767 983 1,256 1,443 1,731 1,984 2,150 2,926 2,399 EBITDA % 8% 7% 10% 11% 11% 13% 14% 11% 10% 11% PAT 402 357 477 691 720 1,065 1,329 1,528 2,013 1,641 Total equity 2,202 2,634 2,891 2,896 3,358 4,317 5,150 6,358 7,907 9,419 Net Cash/(Borrowings) -1,319 -1,540 -1,538 -1,770 -2,367 -1,118 2,234 3,693 3,053 3,430 Net Debt: Equity ratio 0.60 0.58 0.53 0.61 0.70 0.26 0.00 0.00 0.00 0.00 Rs Cr 31Based on Consolidated numbers ^Excludes other income, exceptional items, share of profit/loss in JV & Associates
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32 Corporate Office: Coromandel International Ltd., Olympia Terraces, 15B(SP), SIDCO Industrial Estate, Guindy, Chennai – 600032, Tamil Nadu For Investor Relations, contact: Ms Jayashree Satagopan, CFO Mr. Anuj Naithani, GM NaithaniA@coromandel.murugappa.com Thank you 32