Slide 1: Regulation 30 filing cover letter to exchanges
________________~POLYPLE)( November 11, 2020 The Manager - Listing Department, The General Manager - Listing Department, National Stock Exchange of India Limited, BSE Limited Exchange Plaza, NSE Building, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai- 400 001 Mum
Slide 2: Second Quarter FY 20-21 Financial Results & Summary
Second Quarter FY 20-21 Financial Results & Summary Polyplex Corporation Limited (PCL) November 11, 2020
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 Q2 20-21 Highlights H1 20-21 Highlights 1,223 Cr +6% +13% 2,378 Cr +8% Sales Revenue# QoQ YoY Sales Revenue# YoY 337 Cr +13% +55% 636 Cr +39% Normalized EBITDA* Normalized EBITDA* (28% EBITDA Margin) 163bps 754bps (27% EBITDA Margin) 583bps QoQ YoY YoY # Excludes other operatin
Slide 5: Success Enablers
Success Enablers Global leadership position with industry leading scale & cost Strong financial & operational track record Continuous and high growth in demand Stable earning across business cycles Stable & proven Management team !4
Slide 6: Global leadership position with industry leading scale & cost
Global leadership position with industry leading scale & cost !5
Slide 7: Global Leadership
Global Leadership Unique model of on-shore, off-shore and near-shore manufacturing Preferred strategic partner in flexible packaging - the largest and fastest growing segment in polyester film 500 Global #5 in Thin PET Film* Polyplex 375 By Capacity Corporation (KMTPA) Netherlands Korea 250 USA Japan
Slide 8: Global Presence & Portfolio
Global Presence & Portfolio Operating company-wise breakup of sales Business segment-wise breakup of sales H1 20-21 H1 20-21 2% 3% 2% 3% 9% 4% 26% 5% 7% 19% 13% 64% 23% 20% Thin PET Film Coated Film Polyplex USA Polyplex India OPP Thick PET Film Polyplex Thailand Polyplex Turkey CPP/Blown PP Chips P
Slide 9: Industry leading scale & vertical integration
Industry leading scale & vertical integration Resin* Base Films* Value Added Films* PET Film Resin Recycled Resin# PET Thin PET Thick BOPP CPP Blown PP Metallized Holography Coated TMP (MT) (MT) (MT) (MT) (MT) (MT) (MT) (MT) (MT) (Million SQM) (Million SQM) 00 7 55,000 35,000 3, 4,080 257 83 India 7
Slide 10: Industry leading cost structure
Industry leading cost structure Polyplex CUF vs Industry (Thin PET Film) 2,25,100 100% Industry leader with near 100% 99% 100% 100% 91% 95% Capacity Utilization through 90% 1,68,825 82% 83% 75% business cycles 76% 70% 72% 69% • Globally one of the lowest cost 1,12,550 50% manufacturers, driven by sc
Slide 11: Strong financial & operational track record
Strong financial & operational track record !10
Slide 12: Q2 20-21 Performance Snapshot
Q2 20-21 Performance Snapshot QoQ Growth YoY Growth (Q2 20-21 v/s Q1 20-21) (Q2 20-21 v/s Q2 19-20) Sales Volume 11% 19% (All Films) 77,628 MT Sales Revenue# 6% 13% 1,223 INR Crores Normalized EBITDA* 13% 55% 337 INR Crores PAT (Before Minority) -69% -47% 102 INR Crores EPS^ 24.37 INR/Share -56% -27
Slide 13: H1 20-21 Performance Snapshot
H1 20-21 Performance Snapshot Growth (H1 20-21 v/s H1 19-20) Sales Volume 14% (All Films) 147,824 MT Sales Revenue# 8% 2,378 INR Crores Normalized EBITDA* 39% 636 INR Crores PAT (Before Minority) 24% 432 INR Crores EPS^ 80.81 INR/Share 37% # Excludes other operating revenues * Normalised EBITDA: EBI
Slide 14: Thin PET Film - Trend
Thin PET Film - Trend Thin PET Film* Sales Volume (MT) Ex-Factory Price - Thin PET Film* (USD/Kg) Value Addition** - Thin PET Film* (USD/Kg) 2.26 2.04 1.97 1.88 1.85 1,98,056 Q2 1.04 1.15 1.04 1,70,456 1,78,782 1.02 57,068 0.93 Q1 54,512 17-18 18-19 19-20 H1 20-21 17-18 18-19 19-20 Q1 20-21 Q2 20-21
Slide 15: Normalised EBITDA
Normalised EBITDA Normalised EBITDA* - Trend 27% 1,300 28% 21% 975 18% 21% INR Crores 17% 650 14% 801 944 Q2 337 325 588 7% Q1 299 17-18 18-19 19-20 H1 20-21 Annualised Normalised EBITDA Normalised EBITDA as % of Sales Revenue Normalised EBITDA* (Q2 20-21 vs Q1 20-21) 33 52 2 1 51 337 9 299 299 INR
Slide 16: Strong Financial Performance
Strong Financial Performance Sales Revenue* (INR Crores) Operating Cash Flow Deployment Trend (INR Crores) 21 37 74 236 4,545 4,465 Q2 3,551 253 1,223 209 Q1 1,155 17-18 18-19 19-20 H1 20-21 66 199 32 Annualised * Excludes other operating revenues 472 PBT Normalized# (INR Crores) 148 79 370 137 134
Slide 17: Strong Liquidity
Strong Liquidity Despite major Capex, D/E net cash 500 positive due to generation of 472 4 robust free cash flow from operations 370 375 3 250 2 137 134 125 1 0 0 0 0 17-18 18-19 19-20 H1 20-21 Net Debt/Equity (times) Capex (INR Crores) Cash & Debt Position as on 30th Sep 2020 INR Crores 1,539 999 6
Slide 18: Strong Financial Performance
Strong Financial Performance EPS^ (INR/Share) Dividend Div Per Share (INR/Share) Div Yield %* 161.62 10.17% 60 11.00% 8.22% 51 8.47% 45 8.25% 47 40 31 H1 30 32 5.50% 103.19 30 3.45% 88.18 80.81 15 2.75% 17 49.85 20 17 15 10 17-18 18-19 19-20 H1 20-21 17-18 18-19 19-20 H1 20-21 Annualised * Average s
Slide 19: Total Shareholder's Return
Total Shareholder’s Return 1,540 3,300 1,600 Since 1,408 Last 1 Last 3 Last 5 Shareholder’s Return IPO 1,236 year years years (1988) 2,475 1,117 1,200 980 1,015 952 (A) Total Returns* INR Crores 916 850 781 - Polyplex INR 1,650 717 703 800 76% 20% 35% 23% - Nifty 500 - TRI 3% 4% 9% 12% 825 400 - BSE
Slide 20: Awards
Awards Thai subsidiary PTL won the Money & Banking Awards 2020 in the ‘Best Public Company’ Category !19
Slide 21: Third Quarter 20-21 Guidance
Third Quarter 20-21 Guidance 302 337 299 242 217 236 248 Normalised EBITDA (INR Crores) Q1 19-20 Q2 19-20 Q3 19-20 Q4 19-20 Q1 20-21 Q2 20-21 Q3 20-21 The forward-looking statements reflect Polyplex’s expectations of its next quarter earnings. These are based on certain assumptions as on date and ar
Slide 22: Continuous and high growth in demand
Continuous and high growth in demand !21
Slide 23: Global Demand Growth
Global Demand Growth 5,000 Retail format & 3,750 E-commerce Increasing Improved Environmental 2,500 4,344 4,615 4,906 Quality of Life 3,660 3,938 4,091 Awareness 3,016 3,195 3,433 PRIMARY 1,250 GROWTH Increasing DRIVERS Population 2014 2015 2016 2017 2018 2019 2020 2021 2022 Consumerism Growth Globa
Slide 24: Continuous Growth
Continuous Growth Polyplex growth more that the average market growth rate Capacity is in ‘000 MT 1100 1,065 Capacity CAGR 11% 986 880 863 827 642 652 666 660 618 629 635 440 448 455 440 287 220 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Base Film Resins (incl. Recycled) M
Slide 25: Stable earning across business cycles
Stable earning across business cycles !24
Slide 26: Value Chain
Value Chain NATURAL BASIC RAW PLASTIC & INTERMEDIATE RESOURCES PETROCHEMICALS MATERIALS PRODUCTS Ethylene MEG Packaging & Industrial Customers Film Grade PET Coating Natural Gas Resin Paraxylene PTA Base Films Metallizing Transfer Polypropylene/ PP/PE Resin Holography Metallized Polyethylene Paper O
Slide 27: Product Applications & Sales Mix - H1 20-21
Product Applications & Sales Mix - H1 20-21 Sachet Pack Susceptor Film 74% Stand up Pouch Packaging Can Lamination Easy Peeling Lids Customers Aroma Pack Sprouted Pack Ready 2 Eat Pack PV Backsheets Electrical Grade 26% Electronic Grade Industrial Window Films Optical Grade Customers Liner Grade Con
Slide 28: Strong R&D Capability
Strong R&D Capability A separate R&D department 15 dedicated personnel in Focus on providing innovative registered with the Corporate R&D supplemented by solutions to customers. local technical service and R&D Department of Scientific and Collaborative Research with team having significant experienc
Slide 29: VA Stability
VA Stability PCL VA v/s China VA v/s Crude Stable VA despite crude price volatility 75 75 67 69 69 61 63 62 63 50 52 50 $/Barrel 43 1.10 $/Kg 0.98 0.98 1.02 0.99 1.02 0.99 0.90 0.93 0.91 0.93 0.93 0.85 0.84 30 0.72 0.75 0.70 0.68 0.65 0.56 0.60 0.61 0.49 0.54 0.50 0.29 0.33 0.25 Q1 17-18 Q2 17-18 Q3
Slide 30: Polyplex & Sustainability
Polyplex & Sustainability Minimize product impact through optimized product design: Target Product: Portfolio • Down-gauging 8-10μ • RPET with up to 90% PCR content • Co-create design using principles of circular economy • BioPET - Bio content 30% • Mono material (Low SIT heat sealable PET) structur
Slide 31: Polyplex & Sustainability
Polyplex & Sustainability Ecoblue Limited, Thailand provides sustainable solutions for the packaging and apparel industry • US FDA & GRS approved 3D Pure rPET resin for bottle, film and polyester yarn applications • New state of the art facility being setup to provide complete solution for recycled
Slide 32: Industry Outlook
Industry Outlook OUTLOOK • Approx.1.79 Million Tons of Capacity (more than 60% in China) to be further added in Thin PET by 2023 globally • Changing cost dynamics may result in closure/underutilization of older lines • Constant up-gradation in technology (10.6 mtr wide line) to remain a long term th
Slide 33: Growth Plans
Growth Plans Capital Cost Benefits related to on-going Other Projects: Projects Location Likely Start Up (In USD million) 1.Expansion of product portfolio BrownField - BOPP Indonesia 54 H1 FY 21-22 BrownField - BOPET USA 83 H2 FY 22-23 2.De-bottlenecking of existing film lines Other Projects India 6
Slide 34: Fallout of Covid for PET Film Industry
Fallout of Covid 19 for PET Film Industry • Flexible packaging demand (74% of our sales) for consumer staple has been at elevated level since March 2020 and is expected to remain at normal to slightly elevated level in the medium term. The demand for discretionary items has seen minor decline • Acce
Slide 35: Polyplex Response - Covid
Polyplex Response - Covid 19 Towards Society: Towards Employees: 1. Supporting the less privileged in participation with various NGO’s 1. Ensuring health and safety of the employees as the top priority 2. Contribution of necessary medical equipments and protective 2. Stringent social distancing meas
Slide 36: Annexures
Annexures Contents • Shareholding Pattern • Group Structure !35
Slide 37: Shareholding Pattern
Shareholding Pattern • Polyplex Corporation Limited (PCL) is the Group Holding Company • PCL’s economic interest in the overseas businesses is 51% • PCL listed on BSE/NSE in India and the Thai subsidiary (PTL) on the Stock Exchange of Thailand (SET) • Shareholding of the Company (as on 30th Sep’20)
Slide 38: Group Structure
Group Structure Polyplex Corporation Limited 100% 17.19% Public/Institutional Shareholder (PCL/Polyplex India) INDIA 49% Polyplex (Asia) Pte. Ltd Polyplex (Thailand) Public Co. Ltd. 33.81% (PAPL/Polyplex Asia) (PTL/Polyplex Thailand) SINGAPORE THAILAND 100% 66.50% 100% 100% 100% PAR LLC EcoBlue Ltd
Slide 39: Thank You
Thank You Polyplex Corporation Limited B-37, Sector-1, NOIDA Distt. Gautam Budh Nagar Uttar Pradesh-201 301 Board:+91.120.2443716-19 Fax:+91.120.2443723 & 24 !38