Rain Industries Limited (Formerly Rain Commodities Limited) - PowerPoint PPT Presentation

Rain Industries Limited (Formerly Rain Commodities Limited) Corporate Presentation – May 2015

Forward Looking Statement Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. 2

Rain Group – Business Verticals and Geographical Presence

Rain Group – Business Verticals Rain Group • Manufacturing and sale of Calcined • Distillation and sale of primary Chemical Carbon Petroleum Coke (“CPC”), Coal Tar Pitch coal tar distillates into chemical Products Products (“CTP”) , Naphthalene, Co -generation products such as: of energy and trading of GPC. • Resins and Modifiers Cement Products • Seven CPC Plants with an aggregate capacity of • Aromatic Chemicals 2.1 million Tons in India and US. • Super-plasticizers • Four CTP Plants with an aggregate capacity of • Manufacturing and Sale of Cement. • Other Chemicals 1.0 million Tons in Europe and North America. • Two integrated Cement plants , one each in • Activities across the World with • Five Waste-heat Recovery Power Plants Andhra Pradesh & Telangana along with a Four operating facilities in of an aggregate capacity of 125 MW in Packing Plant in Karnataka. Europe and North America. India and US • Annual capacity of 3.50 Million Tons. • Additional CTP Plant of 0.3 • Activities in the states of Andhra Pradesh, Karnataka, Million Tons in Russia is Maharashtra, Orissa, Tamil Nadu and Telangana. expected to commence operations during Q4 • Markets Cement under the brand “ Priya Cement ” of 2015. Growth opportunities exist in all three business verticals 4

Rain Group – Key Milestones • Merger of RCL with Rain Rain Calcining Ltd. (RCL) Commodities Ltd. begins operations in • Acquisition of CII Setting up of Group’s fifth Completed Brownfield expansion Visakhapatnam, India with (the 2 nd largest Calciner at Waste-heat recovery of Phthalic Anhydride (“PA”) a capacity of 0.3 Million that point of time) at an EV facility in United States Project in Belgium Tons of US$ 619 million 2015 1998 2005 2007 2008 2012 2013 2014 & 2016 Greenfield Coal Tar Distillation facility with a capacity of 0.3 Acquisition of RUETGERS Million Tons, through Russian JV. RCL doubles CPC capacity in Completed Brownfield (Second largest Coal Tar India to become fifth Cement expansion of 1.5 Distiller in the World) at an Set-up of 22 MW Solar Power Plant in Dharmavaram, largest Calciner globally Million Tons EV of € 702 million Anantapur District, Andhra Pradesh Set-up 7 MW Waste-heat Recovery Power Plant at Cement Plant in Kurnool, Andhra Pradesh Rain Group is growing continuously in its core business, through capacity expansions, acquisitions and successfully integrating the same with its existing business 5

Diversified Geographical Profile Europe • 3 Carbon Facilities • 4 th Carbon Facility in Russia is under construction • 3 Chemical Facilities North America • 7 Carbon Facilities (Including 3 River Terminals Africa and 4 Waste-heat recovery Asia facilities) • 1 Carbon Facility in • 1 Carbon Facility (including 1 Egypt • 1 Chemical Facility Waste-heat recovery facility) in India • 2 Cement Facilities in Andhra Pradesh (and one packing facility in Karnataka) With best-in-class Facilities across Four Continents, Rain Group supplies to customers across the World 6

Industry Updates

Overview of Calcined Petroleum Coke (“CPC”) Industry Aluminum Industry Coke Calciners Oil Refining Industry Calcined Petroleum Coke Captured through calcining process CPC <10% of Production Cost Green Petroleum Coke -  Not economically viable substitute for CPC in A by-product  Critical in the value chain of Green Coke Aluminum production process  Regional competition given high transportation  GPC production related to  Reliable and continuous supply of CPC with costs consistent high quality is crucial refining of sweet crude  High barriers to entry due to limited availability  Complementary to CTP in anode production  Reliable off-take is critical of GPC and scale of economies Overview World CPC Demand by End-use  CPC is produced from GPC, a by-product of crude oil refining CY 2014 TiO2 4%  Calciners compete on the basis of product quality and reliability, apart from the price Other  Availability of Anode-grade GPC has been declining as oil refiners 19% process heavier, more sour crude oils  Additional worldwide CPC capacity effectively constrained by availability Aluminium of suitable GPC (Anode Grade GPC) 77%  Industry participants working to develop CPC from lower quality GPC sources  Every Ton of Aluminum requires ~ 0.4 Tons of CPC Rain has Seven CPC Plants in US and India with aggregate capacity of 2.1 MTA and supplies to customers around the world, except Australia and China. 8

Overview of Coal Tar Pitch (“CTP”) Industry Steel Industry Coal Tar Distillers Aluminum Industry Pitch ~48% Aromatic Oils ~40% Naphthalene Oil ~12% Pitch <5% of Production Cost Coal Tar - A by-product  No economically viable substitute for  Critical in the value chain of coal tar  pitch in Aluminum production process Coke production related to steel  Regional competition given logistical industry’s production volumes  Reliable and continuous supply of pitch limitations/high transportation costs  with consistent high quality is crucial Reliable off-take is critical  High barriers to entry due to scale economies,  Complementary to CPC in anode asset intensity and know-how requirements production World CTP Demand by End-use Overview CY 2014  CTP is produced from coal tar, a by-product of metallurgical coke ovens in the steel industry Electrodes  The need for CTP determines the rates of operation for coal tar distillation 12%  Distillers position their facilities in close proximity to tar suppliers due to specialized transportation requirements to move coal tar and costs associated therewith Other end Aluminum users  Anode CTP is the essential binder used primarily to make carbon anodes for the 9% 79% aluminum industry and carbon electrodes for the electric arc furnaces of the steel industry, in addition to other lower volume applications  Every Ton of Aluminum requires ~ 0.1 ton of CTP Rain has Three Plants in Belgium, Canada and Germany with aggregate capacity of 1.0 MTA and Fourth Plant of 0.3 MTA under construction in Russia and supplies to customers around the world, except Australia and China. 9

Overview of Chemical Products of Rain Group Chemicals Superplasticizer Resins & Modifiers Aromatic Chemicals Chemical Trading  Naphthalene oil  Carboindene  Carbolic oil  Crude benzene/benzene Key Raw Materials  C9 feedstock  Anthracene oil  Superplasticizer  Resins  Phenol  Crude benzene/benzene Products chemicals  Modifiers (DIPN)  Specialty products Key Applications  Chemicals  Adhesives/coatings  Chemicals  Carbon chemicals Key End Markets  Admixture and construction  Rubber  Automotive/tyres  Crude aromatics  Paper  Wire varnish  Candiac (CAN)  Duisburg (GER)  Castrop-Rauxel (GER)  Duisburg (GER) Plants  Uithoorn (NL) 10

Aluminum Industry Outlook Global Aluminum Consumption Global Aluminum Production (Mt in millions) (Mt in millions) CAGR: ~4.7% CAGR: ~4.9% 65.5 63.1 63.5 63.2 60.7 60.7 57.6 57.3 54.1 54.1 50.6 50.3 48.0 47.3 45.7 45.0 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2011 2012 2013 2014 2015F 2016F 2017F 2018F CPC Outlook - % of Reserve Calcining Capacity Coal Tar Pitch Outlook (Mt in millions) 6.8% Production Demand 8.00% 5.9% 4.6% 6.00% 2.5% 7.5 7.5 3.1% 3.0% 7.0 7.0 4.00% 6.7 6.7 Tight Market 6.2 6.2 2.00% 5.8 5.8 3.2% 5.5 5.4 5.3 5.2 0.00% -2.00% -5.0% -1.8% -4.00% -2.6% -6.00% -3.8% -5.2% -5.1% -5.7% -8.00% 2011 2012 2013F 2014F 2015F 2016F 2017F Rated Effective 2011 2012 2013F 2014F 2015F 2016F 2017F Global Aluminum production is expected to grow at a CAGR of 5% driving incremental demand for both CPC and CTP 11