Slide 1: Cover letter to stock exchanges on audited results
POLYPLEX May 28, 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 Mumbai- 400 051 SYMBOL : P
Slide 2: Fourth Quarter & FY 19-20 Financial Results & Summary
Fourth Quarter & FY 19-20 Financial Results & Summary Polyplex Corporation Limited (PCL) May 28th, 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 Q4 19-20 Highlights FY 19-20 Highlights 1,186 Cr +9% +3% 4,465 Cr -2% Sales Revenue# QoQ YoY Sales Revenue# YoY 248 Cr +5% +26% 944 Cr +18% Normalized EBITDA* QoQ YoY Normalized EBITDA* YoY (21% EBITDA Margin) (21% EBITDA Margin) # Excludes other operating revenues * Normalised
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 Global #6 in PET Film* 550 413 Polyplex By Capacity (KMTPA) 275 Netherlands Korea USA Japan 138 Turkey Mexico China India Thailand 0 CIFU Group Hengli Group Uflex Industries Polyester Films SKC Co Limited DuPont-Teijin
Slide 8: Global Presence & Portfolio
Global Presence & Portfolio Operating company-wise breakup of sales Business segment-wise breakup of sales FY 19-20 FY 19-20 2% 3% 3% 3% 2% 4% 26% 7% 19% 9% 61% 12% 23% 26% Thin PET Film Coated Film Polyplex India Polyplex USA OPP Thick PET Film Polyplex Thailand Polyplex Turkey CPP/Blown PP Chips O
Slide 9: Industry leading scale & vertical integration
Industry leading scale & vertical integration Resin* Base Films* Value Added Films* (MT) 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) 55,000 35,000 34,613 4,080 286 83 Ind
Slide 10: Industry leading cost structure
Industry leading cost structure Polyplex CUF vs Industry (Plain Thin PET) 99% 100% 2,05,000 90% 91% 95% 100% Industry leader with near 100% 84% 82% Capacity Utilization (CUF) through 76% 1,53,750 70% 69% 70% 72% 75% business cycles 1,02,500 2,03,481 50% 1,67,379 1,68,870 1,76,742 1,84,300 • Globally
Slide 11: Strong financial & operational track record
Strong financial & operational track record !10
Slide 12: Q4'19-20 Performance Snapshot
Q4’19-20 Performance Snapshot QoQ Growth YoY Growth (Q4 19-20 v/s Q3 19-20) (Q4 19-20 v/s Q4 18-19) Sales Volume 10% 14% (All Films) 74,630 MT Sales Revenue# 9% 3% 1,186 INR Crores Normalized EBITDA 5% 26% 248 INR Crores PAT (Before Minority) -83% -88% 21 INR Crores EPS 7.18 INR/Share -68% -77% Exce
Slide 13: FY'19-20 Performance Snapshot
FY’19-20 Performance Snapshot YoY Growth (FY19-20 v/s FY18-19) Sales Volume 8% (All Films) 2,72,662 MT Sales Revenue# -2% 4,465 INR Crores Normalized EBITDA 18% 944 INR Crores PAT (Before Minority) -15% 494 INR Crores EPS 88.18 INR/Share -15% ROCE: 18% ROE : 16% (Excluding Cash & Bank Balance) Excep
Slide 14: Thin PET Film - Trend
Thin PET Film - Trend Thin PET Film (Plain+Met) Sales Volume* (MT) Ex-Factory Price - Thin PET Film (Plain+Met) USD/Kg Value Addition - Thin PET Film (Plain+Met) ** USD/Kg Increase due to new film line start up in Indonesia 12,561 2.26 2.04 1.97 1.75 1,98,056 198,056 1,78,782 1,85,495 1,64,933 1,70,
Slide 15: Normalised EBITDA
Normalised EBITDA Normalised EBITDA* - Trend 21% 1,000 18% 21% 16% 17% 750 16% INR Crores 500 944 11% 801 250 495 588 5% 16-17 17-18 18-19 19-20 Normalised EBITDA Normalised EBITDA as % of Sales Revenue Normalised EBITDA* (Q4 19-20 vs Q3 19-20) 43 INR Crores 16 248 -40 236 -1 -6 EBITDA Volume VA Rat
Slide 16: Strong Financial Performance
Strong Financial Performance Sales Revenue* (INR Crores) PAT# (INR Crores) 4,545 4,465 584 3,551 494 3,180 361 284 16-17 17-18 18-19 19-20 16-17 17-18 18-19 19-20 * Excludes other operating revenues # Before Minority Operating Cash Flow Deployment Trend (INR Crores) 21 37 74 236 209 449 199 472 79 3
Slide 17: Strong Financial Performance
Strong Financial Performance EPS (INR/Share) Dividend Div Per Share (INR/Share) Div Yield %* 60 10.17% 11.00% 8.22% 103.19 45 8.25% 88.18 72.44 31 30 5.50% 49.85 30 51 3.45% 2.21% 40 15 2.75% 20 17 7 10 16-17 17-18 18-19 19-20 0 16-17 17-18 18-19 19-20 * Average stock price for the period has been c
Slide 18: Strong Liquidity
Strong Liquidity 500 Despite significant Capex, 472 4 D/E - Net Cash Positive 370 375 3 250 2 137 125 72 1 0 0 0 0 16-17 17-18 18-19 19-20 Net Debt/Equity (times) Capex (INR Crores) Cash & Debt Position as on 31st Mar 2020 INR Crores 1,257 976 758 591 167 281 Polyplex Corporation Limited & Polyplex
Slide 19: First Quarter 20-21 Guidance
First Quarter 20-21 Guidance * Reflects short term 290 benefit of lower raw material prices and lag in sales price correction due to elevated demand 242 236 248 217 Normalised EBITDA (INR Crores) Q1 19-20 Q2 19-20 Q3 19-20 Q4 19-20 Q1 20-21* The forward-looking statements reflect Polyplex’s expectat
Slide 20: Continuous and high growth in demand
Continuous and high growth in demand !19
Slide 21: Global Demand Growth
Global Demand Growth 4,800 New Retail 3,600 formats Increasing Improved Environmental 2,400 4,340 4,558 4,791 Quality of Life 3,608 3,882 4,133 Awareness 2,985 3,169 3,369 PRIMARY 1,200 GROWTH Increasing DRIVERS Population 2014 2015 2016 2017 2018 2019 2020 2021 2022 Consumerism Growth Global Thin P
Slide 22: Continuous Growth
Continuous Growth Polyplex growth more that the average market growth rate Capacity is in ‘000 MT 1000 956 Capacity CAGR 11% 864 828 800 655 669 630 636 644 619 600 440 448 455 400 287 200 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Base Film Metallised Film (incl. Holo & TMP) R
Slide 23: Stable earning across business cycles
Stable earning across business cycles !22
Slide 24: 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 Resin Holography Metallized Paper Oil Paper Polyplex
Slide 25: Product Applications & Sales Mix - FY 19-20
Product Applications & Sales Mix - FY 19-20 Sachet Pack Susceptor Film 71% Stand up Pouch Packaging Can Lamination Easy Peeling Lids Customers Aroma Pack Spouted Pouch Ready 2 Eat Pack PV Backsheets Electrical Grade 29% Electronic Grade Industrial Window Films Optical Grade Customers Liner Grade Con
Slide 26: Strong R&D Capability
Strong R&D Capability A separate R&D department 15 dedicated personnel Focus on providing innovative registered with the having significant experience solutions to customers. Department of Scientific and in chemicals, coatings, resin, Collaborative Research with Industrial Research (DSIR), customer
Slide 27: VA Stability
VA Stability PCL VA v/s China VA v/s Crude Stable VA despite crude price volatility 2.00 75 75 80 67 69 69 1.71 61 63 62 63 54 52 60 1.43 49 50 50 $/ Barrel 46 46 1.02 0.99 1.02 $/Kg 1.14 0.93 0.98 0.93 0.98 0.93 0.85 0.90 0.91 0.82 0.84 0.84 40 0.86 0.73 0.72 0.57 0.72 0.75 0.68 20 0.56 0.6 0.61 0.
Slide 28: Polyplex & Sustainability
Polyplex & Sustainability Minimize product impact through optimized product design: Target Product: Portfolio • Down-gauging 8-10μ • Co-create design using principles of circular economy • RPET with up to 90% PCR content • Mono material (Low SIT heat sealable PET) structures • BioPET - Bio content 3
Slide 29: Polyplex & Sustainability
Polyplex & Sustainability EcoBlue Limited, Thailand provides sustainable solutions for film based post consumer and industrial process waste • Recycling of difficult to recycle materials like films, coated films, laminates & fibre waste with oils • US FDA approved 3D Pure rPET resin for bottle, film a
Slide 30: Industry Outlook
Industry Outlook OUTLOOK • Approx.1 Million Tons of Capacity (more than 50% in China) to be further added in Thin PET from 2020 to 2023 globally • Changing cost dynamics may result in closure/underutilization of older lines • Constant upgradation in technology (10.6 mtr wide line) to remain a long t
Slide 31: Growth Plans
Growth Plans Capital Cost Projects Location Likely Start Up Newly Approved Capex (In USD million) • Offline Coater, Blown Film Line and Metallizer in BrownField - BOPP Indonesia 53 H1 FY 21-22 Turkey approx. USD 11 million India 3 Upto Q2 FY 20-21 • Post Consumer Bottle Recycling Project (EcoBlue, Oth
Slide 32: Fallout of Covid for PET Film Industry
Fallout of Covid 19 for PET Film Industry • Flexible packaging demand (71% 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 • Packaging demand for discretionary items may see some minor dec
Slide 33: Polyplex Response - Covid
Polyplex Response - Covid 19 Towards Society: Towards Employees: 1. Supporting the less privileged in participation with various 1. Ensuring health and safety of the employees as the top NGO’s priority 2. Contribution of necessary medical equipments and protective 2. Stringent social distancing meas
Slide 34: Annexures
Annexures Contents • Shareholding Pattern • Group Structure !33
Slide 35: 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 31st Mar’20)
Slide 36: 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 37: 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 !36