Uflex Limited · NSE:UFLEX
Uflex — Investor Presentation (April 2022)
36 slides from Uflex's investor presentation, April 2022
Slide 1: Investor Presentation April 2022
Investor Presentation April 2022
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”)), EXCEPT TO “QUALIFIED INSTITUTIONAL BUYERS” (AS DEFINED IN RULE
Slide 3: Disclaimer
Disclaimer The information contained in, and the statements made in, this presentation should be considered in the context of the circumstances prevailing at the time. There is no obligation to update, modify or amend such information or statements or to otherwise notify any recipient if any informa
Slide 4: Key Representatives of UFlex
Key Representatives of UFlex Anantshree Chaturvedi Apoorvshree Rajesh Bhatia Ashwani K. Sharma, Jeevaraj Pillai Chaturvedi President & CEO, Joint President, Flexible Vice Chairman and CEO, Group President Aseptic Packaging FlexFilms Int’l Director, EU Operations (Finance & Accounts) Packaging and Ne
Slide 5: Company Overview
CLIENT LOGO HERE LDNP020478A Uflex_S Gupta_14 12 21 Enter Presentation Title Here Enter Presentation Subtitle Here Date Company Overview Company Overview
Slide 6: UFlex Limited (“UFlex”) – Company Overview
UFlex Limited (“UFlex”) – Company Overview Company Overview A Material Sciences, Sustainable Packaging Solutions Company built on the vision of ‘circularity’ Key Highlights Key Financials(1) Particulars ($m) FY19 FY20 FY21 9MFY22 • Founded in 1988 by Mr. Ashok Chaturvedi, a first generation entrep
Slide 7: Business Evolution and Key Milestones
Business Evolution and Key Milestones $ Engineering UFlex went Chemicals Holography International $ Business Public Business Business Expansion 1988 1989 1994–1996 2004–2005 2009–2010 Ashok Chaturvedi started Company went Public (IPO) Added Films line-1st BOPP Added Film Capacity Added BOP
Slide 8: UFlex is in the Business of Packaging Films and Flexible & Aseptic Packaging
UFlex is in the Business of Packaging Films and Flexible & Aseptic Packaging Business Packaging Films Flexible Packaging Aseptic Packaging Lines Key Highlights ~60% ~40% Contribution to consolidated revenue Contribution to consolidated revenue Recipient of several awards for contribution to UFlex ha
Slide 9: Segment Details: Packaging Films
Segment Details: Packaging Films CPP Films BOPET Films BOPP Films Business The main products of this business are BOPET Films, BOPP Films, CPP Films, Metalized Films, Alox Coated Films and other specialty films. Overview Product Characteristics Application BOPET Films High Tensile & Dielec
Slide 10: Segment Details: Flexible Packaging
Segment Details: Flexible Packaging The main products of this business are Flexible Laminates, Pouches, Bags, Flexi -Tubes & Liquid Packs laminates made of various combinations of Polyester film, BOPP film, Poly film, Metalized & Holographic films and others in roll form or various pouch for
Slide 11: Segment Details: Aseptic Packaging
Segment Details: Aseptic Packaging UFlex is World’s First Manufacturer of Holographic Aseptic liquid packs and foil stamping Business Uflex provides packaging solutions to products like juices, non-aerated alcoholic beverages and highly perishable liquid consumables like milk Overview and ot
Slide 12: UFlex has Wide Presence Across The World
UFlex has Wide Presence Across The World Corporate Structure WOS: Wholly Owned Subsidiary UFLEX LIMITED Outside India (The “Company”) India 68% 47.15% Holding Holding USC Holograms Flex Foods Ltd. Pvt. Ltd. (India) Sales & Sales & Business Sales & (India) Plastic Films 59.17% Associate – Manufac. &
Slide 13: Key Credit Highlights
Key Credit Highlights
Slide 14: Key Strengths
Key Strengths One of the Fastest Growing and Most Profitable Packaging Solutions Partner Globally Leading Global Material Sciences Player In A High Growth Industry 1 With Exposure To Resilient End Markets Well Diversified Business Model And Fully Integrated Player With 2 Presence Across The Value Ch
Slide 15: Attractive Market with Demand Drivers to Boost Growth
1 Attractive Market with Demand Drivers to Boost Growth Demand Packaging Industryfor to Packaging ($bn) in 2025 Reach INR 2,200bn Global India Annual Consumption(1) 2016–2021 CAGR 2022–2027 CAGR 2016–2021 CAGR 2022–2027 CAGR 3.8% 3.9% Revenue ($bn) 148 Revenue ($bn) 9.8% 10.2% 1,274 135 1,232 123 1,
Slide 16: Strong Growth Prospects of Flexible Packaging
1 Strong Growth Prospects of Flexible Packaging Global Market Size of Packaging by Substrate Growth Rate of Packaging Markets (As of FY21) (% CAGR) Rigid 3.1% ~$243 Rigid Plastic Plastic 2.1% Packaging Films and Packaging Films and 5.5% ~$194 Flexible Plastic Flexible Packaging Flexible Packaging 4.
Slide 17: UFlex Is Well Positioned to Capitalize on the Growth Given the End-to-end Integrated Model
UFlex Is Well Positioned to Capitalize on the Growth Given 1 the End-to-end Integrated Model Vertically Integrated Business Model Raw Material Primary Secondary Value Chain Printers Manufacturer Convertors Convertors End-user Industries Converts Raw Converts Films Materials to to Packs and Films Pou
Slide 18: UFlex’s Business is Non Cyclical, Catering to High Growth and Resilient End Markets
UFlex’s Business is Non Cyclical, Catering to High Growth 1 and Resilient End Markets India: Flexible Packaging Market By End-use(1) Global: Flexible Packaging Market By End-use(1) (Revenue ($bn) 2016–2021 2022–2027 2016–2021 2022–2027 (Revenue in $bn) CAGR CAGR CAGR CAGR 4.8% 4.4% 10.1% 10.0% 4.4%
Slide 19: Well Diversified Business Model with High Focus on Innovation
Well Diversified Business Model with High Focus on 2 Innovation Key Tenets of UFlex’s Business Model Revenue Split between Flexible vs Films 100% 90% Continued Focus on Innovation and New Product Development with ~2- 80% 39% 42% 40% 3 major product launches every year and 3-6 product variants 70% 60
Slide 20: Uflex has State-of-the Art Manufacturing Infrastructure with 16 Manufacturing Facilities Across 9 Countries
2 Uflex has State-of-the Art Manufacturing Infrastructure with 16 Manufacturing Facilities Across 9 Countries Strategically Located Manufacturing Facilities Global Capacity of ~680,000 MTPA: Deliver Anywhere in the World Within 15 Days Region Region (India) Capacity % Utilization Capacity % Utilizat
Slide 21: UFlex Localized Supply-Chain results in Cost-Efficient Operations
2 UFlex Localized Supply-Chain results in Cost-Efficient Operations Localized Procurement in Major Production Facilities FY21 Purchases UFlex has a history of dealings with marquee suppliers globally. However, as an industry practice, we do not enter into long term fixed price contracts. The absen
Slide 22: Proximity to Customers Across Major Business Centres Reduces Lead Time for Deliveries
Proximity to Customers Across Major Business Centres Reduces Lead 2 Time for Deliveries and Enables Cost-Competitiveness Russia Poland Hungary Kentucky, USA Mexico Egypt Nigeria India Dubai, Manufacturing Location UAE Agents/Distributor Direct Presence Advantages of Vertically Integrated Manufacturi
Slide 23: Packaging Solutions Partner Driving Long-lasting Customer Relationships and Low Concentration Risk
Packaging Solutions Partner Driving Long-lasting Customer 3 Relationships and Low Concentration Risk Length of Customer Relationships Kolak Truda UPM American Dupont Nestle P&G Pepsi Co Mondelez Bemis Amcor Huhtamaki Snacks Foods Raflatac* Pkg Teijin films 8+ 8+ 8+ 5+ 7+ 10+ 8+ 9+ 6+ 9+ 8+ 9+ The To
Slide 24: Robust Financial Performance with Strong Operating Margins and Cash Generation
Robust Financial Performance with Strong Operating 4 Margins and Cash Generation Revenue from Operations EBITDA(1) PAT (US$m) (US$m) (US$m) 12.4% 14.6% 20.3% 16.5% 3.9% 5.0% 9.5% 8.1% 1,500 300 150 1,210 1,245 245 1,300 250 125 115 1,083 205 101 1,100 1,007 200 100 900 135 147 150 75 700 50 100 50 4
Slide 25: Conservative Levels of Debt with Strong Liquidity and Fully Funded Capex
Conservative Levels of Debt with Strong Liquidity and Fully 4 Funded Capex EBITDA/Interest Expense(1) Debt/EBITDA(3,4) 10.00x 5.00x 7.87x 8.00x 4.00x 6.79x 3.35x 6.00x 3.00x 4.54x 4.81x 2.24x 2.13x 2.12x 4.00x 2.00x 2.00x 1.00x 0.00x 0.00x FY 2019 FY 2020 FY 2021 9MFY22 FY 2019 FY 2020 FY 2021 9MFY2
Slide 26: Sustainability at UFlex
5 Sustainability at UFlex Sustainability at UFlex Restricted - External
Slide 27: Circular Vision of UFlex
5 Circular Vision of UFlex Sustainability at UFlex Extended Producer Responsibility for Packaging Mechanism Collect Recycle/ Reuse Biodegrade Problem Solution Sustainable Space High C B Govt. Govt. EPR-Guidelines Circularity UFlex Project Plastic-Fix Industry Industry Compliance to EPR A Consu
Slide 28: UFlex has transitioned to become a Material Sciences Company built on the vision of Circularity
UFlex has transitioned to become a Material Sciences 5 Company built on the vision of Circularity UFlex’s four fold approach to sustainable and eco friendly packaging is a key Unique Selling Proposition UFlex Group has been a trendsetter when it comes to sustainable innovation and commitment towar
Slide 29: One of the First in the World to Recycle Mixed Plastic Waste
5 One of the First in the World to Recycle Mixed Plastic Waste Among the first in the world to recycle mixed plastic waste for which it earned recognition at Davos Recycle Forum in 1995, way ahead of other companies from developed economies Highlights of Initiatives Taken PCR & PCPR Recycling Infr
Slide 30: High Performing Team with Operational Experience
6 High Performing Team with Operational Experience The company has an experienced management team where key members all have over 25 years of industry experience An Experienced, Dedicated and Professional Management Ashok Chaturvedi, Chairman & MD Jagmohan Mongia, Whole-time Director, Packaging Film
Slide 31: High Performing Team with Operational Experience
6 High Performing Team with Operational Experience An Experienced, Dedicated and Professional Management Team 19+ Ajay Tandon, President- Engineering, Product Development 7+ Rajesh Bhasin, Joint President, Chemicals Business Mr. Ajay Tandon is a Mechanical Engineer and has been associated Mr. Ra
Slide 32: Strong Corporate Governance and Robust Internal Controls
6 Strong Corporate Governance and Robust Internal Controls Listed on Indian Bourses Since 1989 Corporate Governance Structure Board of Directors The BoD of UFlex comprises of 7 Directors, consisting of Shareholders 2 Executive Directors 4 Independent Non-Executive Directors (including one Woma
Slide 33: Appendix
Appendix Restricted - External
Slide 34: Awards & Accolades
Awards & Accolades Appendix Uflex has received awards for its packaging excellence all across the globe 1. UFlex won 11 titles at the SIES SOP Star Awards 2021 across its business, in the categories of Sustainable & Eco- Friendly (including the President's Award for Sustainability & Innovation for i
Slide 35: Awards & Accolades (contd.)
Awards & Accolades (contd.) Appendix 15. UFlex won 4 AIMCAL 2020 Awards 1) Sustainability of the Year Winner and Technical Excellence : Recyclable PE/PE Laminate for Wet Wipes for Primark; 2) Product Excellence: Flexitube for Clariss Organic Face wash; 3) Technical Excellence: 4D Bags with Handle fo
Slide 36: Leverage Profile
Leverage Profile Debt Breakdown (Dec’21) Long Term Debt Maturity Profile(2) (US$m) (Dec’21) FX = 74.3025 INR m US$m Long Term Debt (incl. Current 33,029 445 Maturities) 46 50 41 Working Capital 14,540 128 Leases 602 8 40 29 33 Total Debt 48,173 581 FY23 FY24 FY25 India Overseas Split of Long Term De