Slide 1: Corrigendum to Investor Presentation cover letter
.•. ______________ POLYPLEX October 5, 2019 The Manager - Listing Department, The General Manager - Listing Department, National Stock Exchange of India Limited, BSELimited Exchange Plaza, NSE Building, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai- 400 001 Mumba
Slide 2: Polyplex Corporation Limited (PCL) IR Presentation
Polyplex Corporation Limited (PCL) IR Presentation September 2019
Slide 3: Disclaimer
Disclaimer • This presentation may contain forward-looking statements which are based on the Company’s current expectations and estimates about the industry, management’s beliefs and various other assumptions. These forward-looking statements are subject to various risks, uncertainties and other fac
Slide 4: Polyplex: At A Glance
Polyplex: At A Glance FY 2018-19 Highlights Q1 2019-20 Highlights ------------------------------------------------------ ------------------------------------------------------ 4,545 Cr +28% YoY 1,111 Cr +5% YoY 798 Cr (18% Margin) +34% YoY 241 Cr (22% Margin) +28% YoY Normalized EBITDA Normalized EB
Slide 5: Success Enablers
Success Enablers Global leadership Continuous and high position with industry growth in demand leading scale & cost Strong financial & operational track Stable earning across record business cycles Stable & proven Management team
Slide 6: Global leadership position with industry leading scale & cost
Global leadership position with industry leading scale & cost
Slide 7: Global Leadership By Capacity (KMT)
Global Leadership Unique model of on-shore, off-shore & near shore manufacturing 500 Global # 6 in PET Film* By Capacity (KMT) 450 400 350 300 250 200 Six Manufacturing Facilities in 5 150 Countries, 100 50 Multiple warehouses and - Liaison offices around the world *Including all industry upcoming c
Slide 8: Global Presence & Portfolio
Global Presence & Portfolio Operating company-wise breakup of sales Business segment-wise breakup of sales FY 2018-19 FY 2018-19 4% 3% 5% 7% 27% 6% 18% 9% 61% 13% 23% 26% Polyplex India Polyplex USA Thin PET film Coated film OPP Polyplex Thailand Polyplex Europa Thick PET film Chips Other sales Othe
Slide 9: Industry leading scale & vertical integration
Industry leading scale & vertical integration Base Films (MT) Coated/ Value Added Films PET Film Resin PET Thin Blown Metallized Holography Coated TMP PET Thick BOPP CPP PP (MT) (MT) (MT) (Million Sqm) (Million Sqm) P A R E N 55,000 35,000 34,613 4080 286 83 T 77,600 INDIA 42,000 28,800 10,000 8,845
Slide 10: Industry leading cost structure
Industry leading cost structure Polyplex CUF vs Industry (Thin PET) 190,000 120% 185,000 99% 95% 100% 180,000 90% 91% 84% 175,000 76% 79% 69% 70% 72% 80% 170,000 165,000 60% 184,300 Industry leader with 160,000 near 100% Capacity 176,742 40% 155,000 167,379 168,870 Utilization through 150,000 156,53
Slide 11: Continuous and High Growth in Demand
Continuous and High Growth in Demand
Slide 12: Global Demand Growth
Global Demand Growth Core flexible packaging application end- use consistently growing at 6-7% due to design 5,000 versatility, cost advantage, resource economy, low carbon footprint, cost advantage and retail 3,750 format / packaging innovations 2,500 Core flexible packaging demand driven by 3,601
Slide 13: Continuous Growth
Continuous Growth Capex CAGR ‘000 MT 10% 900 873 813 813 800 700 639 649 654 614 624 631 600 500 440 448 455 400 287 300 200 100 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Base Film Metallised Film Resins Coating Polyplex growth more that the average market growth rate
Slide 14: Strong financial & operational track record
Strong financial & operational track record
Slide 15: Strong Financial Performance
Strong Financial Performance Revenue (INR Crores) ROCE & ROE 30% 5,000 4,500 25% 23% 24% 4,000 20% 22% 15% 21% 3,500 13% 15% 3,000 4,545 4,445 10% 14% 2,500 3,551 5% 12% 3,170 3,180 2,000 5% 4% 1,500 0% 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 (Annualised) ROCE
Slide 16: Strong Financial Performance
Strong Financial Performance PAT (INR Crores) EPS (Rs/Share) 700 120.00 600 100.00 500 80.00 400 60.00 300 584 617 103.19 101.32 40.00 72.44 200 361 284 20.00 49.85 100 9.08 16 - - 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 (Annualised)* (Annualised)* Effective T
Slide 17: Free Cash Flows
Free Cash Flows FY 2018-19 INR in Lacs 80,000 68,580 60,000 40,000 20,910 20,726 20,000 - (20,000) (7,989) (9,199) (14,577) (40,000) (37,001) (60,000) EBIT Taxes Depreciation & Amortisation Capex Change in WC Unrealised FX Loss / (Gain) Free Cashflow INR in Lacs Operating Cash Flow Deployment Trend
Slide 18: Strong Liquidity
Strong Liquidity INR in Lacs Despite significant Capex, in times 40,000 D/E – Cash Positive 0.06 35,000 0.05 0.05 30,000 25,000 0.04 20,000 37,001 0.03 15,000 0.02 10,000 5,000 13,690 0.01 4,769 7,175 - - - - 0 2015-16 2016-17 2017-18 2018-19 Capex Net Debt/Equity Cash & Debt Position as on 30th Jun
Slide 19: Stable earning across business cycles
Stable earning across business cycles
Slide 20: Value Chain
Value Chain PET Film is a versatile product with wide & growing range of applications.
Slide 21: Product Applications & Sales Mix
Product Applications & Sales Mix 72% Packaging Sales By Applications 28% Industrial
Slide 22: Strong R&D Capability
Strong R&D Capability A separate R&D department registered with the Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology (India) 18+ dedicated personnel having significant experience in chemicals, coatings, resin, customer process and other relevant fields Focu
Slide 23: VA Stability
VA Stability PCL VA Vs China VA (SCI) Vs Crude 2.00 75 75 80 67 69 69 1.80 63 61 1.60 54 52 60 1.40 49 50 46 46 1.20 1.02 $/ Barrel 0.93 0.98 0.98 $/Kg 0.90 0.91 0.93 1.00 0.82 0.85 0.84 40 0.84 0.73 0.72 0.80 0.60 0.61 0.56 0.54 0.49 0.50 0.60 0.38 0.26 0.28 0.29 0.33 20 0.40 0.23 0.25 0.20 - - Chi
Slide 24: Stable & proven Management team
Stable & proven Management team
Slide 25: Management Team
Management Team Pranay Kothari CEO Amit Prakash, PCH Kapil Gupta Amit Kalra Manish Gupta Sunil Kumar Rajpal Yadav (Thailand, Turkey & PCH (India) PCH (USA) Group CFO Group Head HR Group Head Projects Indonesia) Krishna Reddy Ramesh Gupta Bhavin Patel Head R&D BH (Saralam) BH (Saracote) ● The busines
Slide 26: Polyplex & Sustainability
Polyplex & Sustainability Minimize product impact through Target Products: Portfolio optimized product design: • Co-create design using principles of • Down-gauging 8-10μ circular economy • RPET with up to 90% PCR content • Create mono material (Low SIT heat • BioPET - Bio content 30% sealable PET)
Slide 27: Industry Outlook
Industry Outlook SUPPLY Polyplex – Key points • Approx. 0.9 Million Tons Of Capacity To Be • Leverage our local presence in Added In Thin PET By 2022 Globally various geographies – Quick • Capacity To Be Added Every Quarter turnaround, urgent delivery, • Margin Disruption Expected Temporarily While
Slide 28: Capex Growth Plans
Capex Growth Plans In addition to the above, normal maintenance Capex is generally in the range of USD 5-6 million.
Slide 29: Thank You
Thank You POLYPLEX.