Epl Limited · NSE:EPL
Epl — Q3 FY21 Earnings Presentation
41 slides from Epl's earnings presentation, Feb 2, 2021
Slide 1: Cover letter to stock exchanges on Q3 FY21 investor notes
02 February 2021 -- -- •ept LEADING THE PACK Corporate Service Department The Listing Department BSE Limited National Stock Exchange of India Ltd 25 th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Mumbai 400 001 Bandra-Kurla Complex, Bandra (E) Mumbai 400 05
Slide 2: Q3 FY21 Earnings Presentation
LEADING THE PACK EPL LIMITED (Formerly known as Essel Propack Limited) Q3 FY21 Earnings Presentation
Slide 3: Safe Harbour
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Safe Harbour Certain statements in this presentation concerning our future growth prospects are forward-looking statements. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties that could caus
Slide 4: EPL 2.0
EPL 2.0 Market Leading Revenue Growth and Capital Efficient, Consistent Earnings Growth 3
Slide 5: The Year So Far…
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK The Year So Far… • 1 Market continues to be challenging in the context of Covid-19 •• 3 2 EPL demonstrated resilience in business performance despite impact of Covid-19 Strengthened management team, Board, and advisor network • Sudhanshu Vats
Slide 6: EPL Worked Proactively with All Stakeholders to Ensure Business Continuity
EPL Limited Q3FY21 Earnings Presentation •epl LEADING THE PACK EPL Worked Proactively with All Stakeholders to Ensure Business Continuity and Minimize Covid-19 Impact Supply Proactively worked with regulatory authorities and customers to classify EPL in the Supply All 20 plants Enablement operatio
Slide 7: We are now EPL
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK We are now EPL 6
Slide 8: 9MFY21 Consolidated Financial Highlights
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK 9MFY21 Consolidated Financial Highlights: Reported Y-o-Y Revenue growth of 10.0% and EBITDA growth of 13.1% (INR million) Revenue from Operations EBITDA and EBITDA Margins EBIT and EBIT Margins 20,712 10.0% 22,789 - -20.2% 4,190 13.1% 20.8% 4
Slide 9: EPL 2.0 Mission: Capital Efficient, Consistent Earnings Growth (9MFY21)
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK EPL 2.0 Mission: Capital Efficient, Consistent Earnings Growth (INR million) 9MFY20 9MFY21 Growth Revenue 20,712 22,789 10.0% • Growth1 Adjusted EBITDA 4,258 4,945 c::> 16.1% • Adjusted EPS (INR) 4.97 As of December’19 6.77 As of December’20
Slide 10: Q3FY21 Consolidated Financial Highlights
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Q3FY21 Consolidated Financial Highlights: Reported Y-o-Y Revenue growth of 7.9% and EBITDA growth of 1.5% (INR million) - - Revenue from Operations EBITDA and EBITDA Margins EBIT and EBIT Margins 7,109 7.9% 7,671 22.2% 1,579 1.5% 20.9% 1,603
Slide 11: EPL 2.0 Mission: Capital Efficient, Consistent Earnings Growth (Q3)
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK EPL 2.0 Mission: Capital Efficient, Consistent Earnings Growth (INR million) Q3FY20 Q3FY21 Growth Revenue 7,109 7,671 7.9% • Growth1 Adjusted EBITDA 1,619 1,701 c::> 5.1% • Adjusted EPS (INR) 2.00 As of December’19 2.53 As of December’20 c::>
Slide 12: Renewed Focus on Capital Efficiency Leading to Reduction in Net Debt
EPL Limited Q3FY21 Earnings Presentation •epl LEADING THE PACK Renewed Focus on Capital Efficiency Leading to Reduction in Net Debt Prudent Capex Spend.. 2,305 FY17 1,405 FY18 3,040 FY19 Capital Expenditure (INR million) - 1,286 FY20 - 1,046 9MFY21 ..Leading to Reduction in Net Debt 7,035 FY17 5,636
Slide 13: Continued Focus on Fundamental Levers
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Continued Focus on Fundamental Levers • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 12
Slide 14: Personal Care Has Grown at a 16% CAGR Over Nine Years
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Personal Care has grown at a 16% CAGR Over the Last Nine Years and Continues to be the Major Growth Driver for EPL in 9MFY21 Personal Care Revenue (INR million) ➔ 1s.9%CAGR 11,206 .-_.::,____ 9,381 8,254 Growth 9.8 % Y-o-Y 2,980 Sub-categorie
Slide 15: Personal Care Contribution Stood at 45% in 9MFY21
EPL Limited Q3FY21 Earnings Presentation Personal Care Contribution stood at 45% in 9MFY21 Personal Care Contribution to Tube Revenue 45% 45% 43% 41% FY18 FY19 FY20 9MFY21 Despite clear headwinds in B&C, Personal care share maintained by increased demand of Hygiene Products 14
Slide 16: Continued Growth in Personal Care (1/2)
EPL Limited Q3FY21 Earnings Presentation Continued Growth in Personal Care (1/2) (INR million) AMESA EAP -1.0% CAGR Growth 43.8% Y-o-Y Growth -11.3% Y-o-Y 3,917 3,821 3,839 2,708 1,158 1,611 1,698 1,951 FY18 FY19 FY20 9MFY21 FY18 FY19 FY20 9MFY21 Highlights Highlights Personal Care contribution de
Slide 17: Continued Growth in Personal Care (2/2)
EPL Limited Q3FY21 Earnings Presentation Continued Growth in Personal Care (2/2) (INR million) Americas Europe -- 19.0%CAGR Growth 16.7% Y-o-Y Growth 9.0% Y-o-Y 896 1,277 1,496 1,196 2,950 3,572 4,180 3,546 FY18 FY19 FY20 9MFY21 FY18 FY19 FY20 9MFY21 Highlights Highlights Personal Care contributio
Slide 18: Continued Focus on Fundamental Levers
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Continued Focus on Fundamental Levers • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 17
Slide 19: Global Leadership in Oral Care with Steady Long-Term Revenue Growth
EPL Limited Q3FY21 Earnings Presentation •epl LEADING THE PACK EPL has Established Global Leadership in Oral Care with the Segment Demonstrating Steady Long-Term Revenue Growth at a CAGR of 10.1% Oral Care Revenue (INR million) 10.1% CAGR 12,748 13,809 11,764 11,306 Growth 9.2% 9,203 Y-o-Y 5,823 FY1
Slide 20: Continued Focus on Fundamental Levers
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Continued Focus on Fundamental Levers • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 19
Slide 21: Continued Growth Momentum in Europe across Oral and Personal Care
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Continued Growth Momentum in Europe across Oral and Personal Care Categories Europe Revenue (INR million) 8,000 6,771 5,852 5,684 6,000 5,096 Growth Y-o-Y 4,000 ~ -- 16.6% Total ~-~~-~~-~~---- 10.0% Oral Care 2,000 61% 64% 62% 66% 16.7% Perso
Slide 22: Leading to Strong EBITDA Growth and Margin Improvement
EPL Limited Q3FY21 Earnings Presentation Leading to Strong EBITDA Growth and Margin Improvement Europe EBITDA (INR million) 1,000 12.8% ... ______14.1% 15.0% 800 • - ---------- •---- --- 10.0% 10.3% 866 803 Growth 32.1%10.0% 600 Y-o-Y 603 400 511 5.0% 200 0 0.0% FY18 Key elements to profit growth FY
Slide 23: Continued Focus on Fundamental Levers
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Continued Focus on Fundamental Levers • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 22
Slide 24: Sustainability: an Intrinsic Value at EPL
EPL Limited Q3FY21 Earnings Presentation •epl LEADING THE PACK Sustainability: an Intrinsic Value at EPL PLATINA FAMILY PCR TUBE GREEN MAPLE LEAF TM ORGANIC GREEN PCR ETAIN MAPLE LEAF TM Light weight, Eco-friendly, PCR Laminate Tube Eco-friendly, code 2 50% bio-polymers from PCR Extruded Tube fully
Slide 25: Strong Traction and Acceptability of EPL's Sustainable Offerings
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Strong Traction and Acceptability of EPL’s Sustainable Offerings by Leading Global Customers Enabled leading Oral Care Player Ship EPL’s Sustainable Laminates Being Platina Laminate is Now Ready for Cosmetics & World’s First Recyclable Tube C
Slide 26: Corporate Social Responsibility
EPL Limited Q3FY21 Earnings Presentation •epl LEADING THE PACK Corporate Social Responsibility Focus area: Our Vision: Greening Lives ,JI Greening EPL’s Strategy will focus on Sustainability and Sustainable lives Development with core values of Prosperity, Balance & Harmony, Green communities: Vital
Slide 27: Acquisition of Creative Stylo Packs (Creative) - Overview
EPL Limited Q3FY21 Earnings Presentation Acquisition of Creative Stylo Packs (Creative) - Overview Founded in 2012 by two young entrepreneurs Bhavik Shah and Darshan Shah. Marquee Clientele FY20 Revenue of INR 1,031 mn and Adjusted EBITDA of INR 305 mn I ~ ® (29.6% margin). t.=OREAL ~ 1malava -
Slide 28: Creative is a Subsidiary of EPL effective Feb 2021
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Creative is a Subsidiary of EPL effective Feb 2021 Transaction was consummated on 1st February 2021. Enterprise Value: INR 2,539 mn Deal structure: • Purchase of 72.5% stake through cash • Purchase of balance 27.5% stake through issuanc
Slide 29: Looking Ahead
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Looking Ahead • 1 Vaccination brings the hope of recovery; mass availability and effectiveness critical • 2 Hardening of raw material prices • 3 Sustainability is the key growth driver and EPL is fully geared up for this • 4 Focused on delive
Slide 30: Appendix
EPL Limited Q3FY21 Earnings Presentation Appendix 29
Slide 31: 9MFY21: Adjusted EBITDA grew 16.1% Y-o-Y & Adjusted PAT grew 36.2%
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK 9MFY21: Adjusted EBITDA grew 16.1% Y-o-Y & Adjusted PAT grew 36.2% Y-o-Y (INR million) Adjustments EBITDA PAT1 Reported 9MFY21 numbers 4,739 1,984 • China Tax refund - -25 • TSA2 related expenses +120 +90 • ESOP related cost +86 +86 Adjusted
Slide 32: Q3FY21: Adjusted EBITDA grew 5.1% Y-o-Y & Adjusted PAT grew 26.3%
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Q3FY21: Adjusted EBITDA grew 5.1% Y-o-Y & Adjusted PAT grew 26.3% Y-o-Y (INR million) Adjustments EBITDA PAT1 Reported Q3FY21 numbers 1,603 709 • TSA2 related expenses +40 +30 • ESOP related cost +58 +58 Adjusted Q3FY21 numbers 1,701 797 Repo
Slide 33: Q3FY21 Regional Performance – 1/2
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Q3FY21 Regional Performance – 1/2 Revenue Split % EBIT Split % Europe, Europe, 10% 22% AMESA, 30% AMESA, 32% Americas, 20% Americas , 22% EAP, 26% EAP, 38% • The quarterly revenue grew by 7.9% Y-o-Y, majorly driven by EAP, Americas and Europe
Slide 34: Q3FY21 Regional Performance – 2/2
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Q3FY21 Regional Performance – 2/2 (INR million) Revenue YoY Growth EBITDA1 Margin AMESA 2,362 -6.1% 633 26.8% EAP 2,043 17.4% 511 25.0% Americas 1,735 19.1% 309 17.8% Europe 1,768 9.3% 231 13.1% (1) EBITDA excludes INR 40 mm of TSA related ex
Slide 35: Q3FY21 Performance – AMESA and EAP
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Q3FY21 Performance – AMESA and EAP (INR million) AMESA Particulars Q3FY21 Q3FY20 % change Revenue 2,362 2,516 -6.1% EBITDA 633 661 -4.3% EBITDA % 26.8% 26.3% EBIT 402 409 -1.7% EBIT % 17.0% 16.3% EAP Particulars Q3FY21 Q3FY20 % change Revenue
Slide 36: Q3FY21 Performance – Americas and Europe
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK Q3FY21 Performance – Americas and Europe (INR million) Americas Particulars Q3FY21 Q3FY20 % change Revenue 1,735 1,457 19.1% EBITDA 309 308 0.2% EBITDA % 17.8% 21.1% EBIT 206 215 -4.3% EBIT % 11.9% 14.8% Europe Particulars Q3FY21 Q3FY20 % cha
Slide 37: About EPL
EPL Limited Q3FY21 Earnings Presentation About EPL (Formerly known as Essel Propack Limited) 36
Slide 38: EPL: Company Overview
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK EPL: Company Overview Largest Global Leader in Growing Strong laminated tubes Oral Care emergence in relationships manufacturer Personal Care with marquee FMCG customers ~8 bn Tubes #1 Globally 45% 20+ years contribution Best in class Best in
Slide 39: EPL Caters to Marquee Customers Across Trillion Dollar Categories
EPL Limited Q3FY21 Earnings Presentation •epl LEADING THE PACK EPL Caters to Marquee Customers Across Trillion Dollar Categories Tube revenue split (9MFY21) Personal Care, 45% 5% 11% Others Pharma 29% 55% Beauty Oral & Care Cosme tics ------------------------- ---------------------------------------
Slide 40: About EPL
EPL Limited Q3FY21 Earnings Presentation LEADING THE PACK About EPL EPL is the largest global specialty packaging company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space. Employing over 3,366 people representing over 25 different nationalities, EPL functions in ten count
Slide 41: Thank you
epl LEADING THE PACK Thank you /esselofficial /company/essel-propack-limited /essel_propack EPL LIMITED (Formerly known as Essel Propack Limited) Top Floor, Times Tower, Kamala City Senapati Bapat Marg, Lower Parel Mumbai - 400 013, India