Cosmo First Limited · NSE:COSMOFIRST
Cosmo First — Q2 FY25 Earnings Presentation
36 slides from Cosmo First's earnings presentation, Nov 13, 2024
Slide 1: Exchange cover letter: Investor Presentation
CFL/SE/2024-25/NOV/05 November 13, 2024 The Manager (Listing) The Manager (Listing) BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1, G Block, Mumbai-400 001 Bandra – Kurla Complex Scrip Code: 508814 Mumbai-400 051 Security ID: “
Slide 2: A Perspective – November 2024
A Perspective November 2024 Speciality Films, Speciality Chemicals, Rigid Packaging & Petcare Flexible Packaging I Lamination I Labeling I Synthetic Paper I Speciality Chemicals I Plastech I Sunshield I D2C Petcare (Zigly)
Slide 3: Discussion Summary
Discussion Summary Cosmo First – An Overview Q2, FY25 - Performance Snapshot Strategic Perspective Our Businesses: Films Business Specialty Chemicals Rigid Packaging (Plastech) D2C Petcare (Zigly) Financial Overview ESG Focus Disclaimer Certain statements in this presentation are for
Slide 4: Company Overview
Company Overview Strong History & Leading Position Global Leader in some Specialty Segments Unique Proposition Established in 1981, Cosmo Films World’s largest producer of thermal Uniquely positioned with a strong blend of Ltd.is the pioneer of BOPP Films lamination films. specialty/semi-speci
Slide 5: Company Overview – Businesses
Company Overview – Businesses Speciality films focused business with target to sell 80% BOPP based volume of speciality films by FY26 (FY24 Speciality 64% and H1, FY25 70%) Verticals: Masterbatch (From FY21) Coating Chemicals (From FY22) Adhesive (From FY24) End-to-end rigid packaging vertical (F
Slide 6: Company Overview - Key Milestones
Company Overview - Key Milestones ► Established in 1981, Cosmo Films Ltd.is ►Speciality Chemicals ►2012: 2nd ►2016: CPP line-1 the pioneer of BOPP Films Industry in ►Petcare “Zigly” India; coating line ►2017: 10th BOPP ► Globally amongst top four in BOPP ►2010: 2nd ►2013: 9th line Specialty films an
Slide 7: Speciality & Semi Speciality Growth and Margins
Speciality & Semi Speciality Growth and Margins Expanding Speciality & Semi-Speciality films portfolio (high margin category) (H1 FY25 70% volume; 11% CAGR over last 5 years) 120% 80 70 100% 60 Films Volume (%) Gross Margin/Kg 80% 38% 43% 52% 50 64% 62% 64% 70% 60% 40 30 40% 62% 57% 20 48% 20% 36%
Slide 8: Films Margin/Volume & Capacity Utilization
Films Margin/Volume & Capacity Utilization Quarterly movement in Films margin Films Volume Bifurcation 120% 70 120% 100% 60 100% 50 12% 14% 10% 10% 6% 14% Films Volume (%) Gross Margin/Kg 80% 64% 61% 40 80% 65% 66% 69% 72% 60% 30 60% 40% 20 94% 88% 86% 90% 90% 86% 20% 40% 35% 36% 39% 34% 10 31% 28%
Slide 9: Core Profitability – Consolidated :: Q2’FY25
Core Profitability – Consolidated :: Q2’FY25 13.1% Q2' FY 2025 2.2% 14.1% -0.7% -0.5% Reported EBITDA Speciality Chemicals Pet Care Business Rigid Packaging Packaging
Slide 10: Performance Snapshot Q2 FY25
Performance Snapshot INR Cr. Particulars Unaudited Q2 FY 24-25 Unaudited Q1 FY 24-25 Unaudited Q2 FY 23-24 Q2 FY25 Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 723 759 647 690 617 664 EBITDA 88 107 65 84 71 72 Performance EBITDA % 12% 14% 10% 12% 11% 11% PBT 39 5
Slide 11: Performance Snapshot – Management Commentary Continues
Performance Snapshot – Management Commentary Continues … BOPET vertical (about 9% of Company’s sales for Q2, FY25) has also witnessed better margins and posted double digit EBITDA in Q2, FY25 for the first time since its commissioning in FY22-23. The Specialty Chemical subsidiary is advancing we
Slide 12: Strategic Perspective – Why Cosmo First?
Why Cosmo First ? Company with diversified businesses with target 20% CAGR topline growth in next 3 years coupled with commensurate return growth. Strategic Potential high Growth Engines include Speciality Films, Speciality Chemicals, Rigid packaging and D2C Petcare business. Perspective Stron
Slide 13: Strategic Perspective – Why Cosmo First?
Why Cosmo First ? Speciality Chemicals: Masterbatch plant (1st line with 75% captive consumption & 25% outside sale). Coating Chemicals – scale up in coming years. Strategic Complimentary Adhesive business for Packaging, Lamination and Labels – FY24. Estimated ROCE FY25 to be 30%+. Perspec
Slide 14: Business Overview “FILMS Business”
Business Overview “FILMS Business”
Slide 15: Manufacturing Footprints & Offices
Manufacturing Footprints & Offices” Upcoming capacities: CPP line (25000 TPA – H2’FY25) - Waluj, Aurangabad BOPP line (67000 TPA – H1’FY26) – Waluj, Aurangabad
Slide 16: Films Business-India Industry Dynamics & Capex Strategy
Films Business-India Industry Dynamics & Capex Strategy Data Source: AMI/PCI/Other Independent Research and Industry Sources
Slide 17: Films Business - Speciality Films Product Portfolio
Films Business - Speciality Films Product Portfolio PACKAGING FILMS LAMINATION FILMS LABEL FILMS INDUSTRIAL FILMS o Print & Pouching Films o Thermal Lamination & Wet o Pressure Sensitive Label o Synthetic paper o Tape & Textile Films Lamination stock films o Cable Overwrap o Barrier Films o Special
Slide 18: Speciality Films Focus
Speciality Films Focus Grow Speciality portfolio by volume from Key Speciality Products: 70% in H1 FY25 to 80%+ by 2026 Globally among top four players in BOPP Speciality films Speciality Label Films – Second largest player in the World Each 1% shift in Speciality adds EBITDA Thermal Lam
Slide 19: Focus on R&D and innovation to fuel next phase of growth
Focus on R&D and innovation to fuel next phase of growth Infrastructure Innovative Product Launches Chemically recycled PCR BOPP film- for soap application. Specialized BOPET line: We have launched wide range of PET-G shrink films - High shrink, Low shrink force, White PETG , PET-G shrink films
Slide 20: Films Business – Customers/Brands we Serve
Films Business – Customers/Brands we Serve Company stands as a trusted partner to a prestigious portfolio of large blue chip companies and renowned brands. . . Disclosure: All these are trademarks of respective Owners
Slide 21: Rigid Packaging “Plastech” Business Overview
Rigid Packaging “Plastech” Domestic Industry size of INR 10,000 Cr and growing @ 10%+ End-to-end rigid packaging solutions. Business Overview Specializes in creating customized packaging solutions for a variety of fast- moving consumer goods products. “Rigid Packaging” State-of-the-art machi
Slide 22: Business Overview “Speciality Chemicals Business”
Business Overview Masterbatches Adhesives India Industry size is 500k mt. Adhesive kick started from Industry growing by 11% pa. “Speciality Masterbatch is a concentrated H2’FY23 Global Industry USD 52 billion Chemicals Business” mixture of pigments and additives used for imparting specifi
Slide 23: Business Overview D2C Petcare
Business Overview The Pet care market in India is booming with: • ~25% Projected Annual Growth • ~32MM pets D2C PETCARE • ~1MM annual adoptions UNDER BRAND Indian Petcare Market “ZIGLY” Pet penetration in developed markets like US & UK is more then 68% and growing. 12000 Rs 12500 Cr 10000 8000 6000
Slide 24: Zigly - Business Model
Key Tractions Zigly - Business Model 10 Cr GMV (Q2’25) Retail outlets Own Service Other 68K + E-commerce Marketplace Marketplace Customers served with website and App One Stop solution retail Private label outlets offering available on 6200+ Acting as an Amazon SKUs available aggregator for Products
Slide 25: Plan for Petcare Vertical “Zigly”
Plan for Petcare Vertical “Zigly” India Petcare industry INR 5k crores (25% expected growth rate) Smaller families, rising income levels and limited social lives (especially post Covid-19) No large scale organized players in India offering end to end comprehensive solution Average spending o
Slide 26: Financial Overview & ESG
Cosmo First Financial Overview & ESG
Slide 27: FY23-24 - Performance Snapshot
FY23-24 - Performance Snapshot INR Cr Unaudited H1 FY 24-25 Audited FY 23-24 Audited FY 22-23 Audited FY 21-22 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 1370 1449 2391 2587 2742 3063 2824 3038 EBITDA 153 191 213 251 396 434
Slide 28: Key Financial Snapshot
Key Financial Snapshot Net debt/EBITDA 2.2 times and net debt to equity at 0.5 times –Sep’24 Rewards (Dividend/Buyback) (% to PAT) NET DEBT (INR CR) 80% 63% 69% 727 698 800 584 561 60% 600 438 434 40% 30% 20% 22% 24% 400 303 22% 20% 20% 17% 20% 200 0% - Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-
Slide 29: Shareholding Pattern – September 2024
Shareholding Pattern –September 2024 1.05 Promoter and Promoter Top Non-Promoter Shareholding – 30th Sep 2024 Group 1 Minaxi Bhalchandra Trivedi 1.47% Institutional 45.04 2 50.48 Tejas Balchandra Trivedi 0.99% Non Institutional 3 Shivani Tejas Trivedi 0.97% Acadian Emerging Markets Small Cap Cosmo F
Slide 30: ESG & Sustainability Initiatives - CareEdge “Good” ESG Rating
ESG & Sustainability Initiatives - CareEdge “Good” ESG Rating Product Practices Manufacturing Practices Offering mono-material for ease of recycling. Recycling of manufacturing waste for further film Production (about Designed heat resistant BOPP films replacing 95%) BOPET; giving push to creation
Slide 31: Board of Directors
Board of Directors Mr. H N Sinor Mr. Ashok Jaipuria Independent Director Chairman & Managing Director Over 4 decades experience in public as well as private sector banks A first generation entrepreneur with over forty like UBI, Central Bank of India and ICICI Bank. years of experience in the corpora
Slide 32: Leadership Team
Leadership Team Mr. Kulbhushan Malik Business Head- Cosmo Films Over 24 years of experience in the areas of Business & Mr. Pankaj Poddar Strategy Management, Sales and Financial management. Group Chief Executive Officer Over 27 years of experience in finance, advisory and various leadership roles. M
Slide 33: ESG Snapshot
ESG Snapshot Environmental Social 6 Cr FY24 7,00,000+ 15% Governance 70% 6
Slide 34: CSR Milestones
CSR Milestones dens Education _ Sanitation Environment & Plantation 43 40 ove 200 a 100k+ 24 46 1 Th scncom ns Health and Community Publication of Covid Engagement Educational Resources 170000 31104 7 tune = oS mee — —— Ata Conversation 008 : 5 peas Bo Ei Www.cosmofirst.com Our Businesses: GFSOSMOFI
Slide 35: Awards and Accolades
Awards and Accolades FY2024-2025 • Cosmo Films won the "Fastest Growing Enterprise of the Year 2024" award at the Modern Plastics Award FY 2023-24 • Grabbed the IFCA Star Awards 2023 in the innovative category for “Super Barrier BOPP Film” and “High Puncture Resistant BOPP Film” FY 2022-23 • Feature
Slide 36: Thank You
Thank You For more information, please contact: Cosmo First Ltd. Mr. Neeraj Jain Group Chief Financial Officer Email ID: neeraj.jain@cosmofirst.com; Mr. Shivang Goel Investor Relations Email ID: shivang.goel@cosmofilms.com