Garware Hi-tech Films Limited · NSE:GRWRHITECH
Garware Hi-tech Films — Q4 FY23 Earnings Presentation
39 slides from Garware Hi-tech Films's earnings presentation, Jun 1, 2023
Slide 1: Regulation 30 cover letter to stock exchanges
June 01, 2023 The Compliance Manager The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Corporate Relationship Dept., Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street,Mumbai 400001. Bandra (East), Mumbai 400 051. S
Slide 2: Investor Presentation Q4 FY23 & FY23
1 Investor presentation Garware Hi-tech Films Ltd. Q4 FY23 & FY23 (GHFL) Investors Meet : Thursday, June 1, 2023 at 2:30pm
Slide 3: Contents
2 Contents 01 Company Overview 02 Business Overview 03 Financial Highlights 04 Annexure March 2023
Slide 4: Safe harbor
ISafe harbor 3 Our discussion may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results
Slide 5: Company Overview
4 Company Overview ~ GARWARE. v::!/ HI-TECH FILMS
Slide 6: Unlocking Sustainable Growth
Unlocking Sustainable Growth 5 I ,--------------------------------------------------] ',! --------------------------------- ': , ----------------------------------- --------,: I High margin r------- Manufacturing J! Increasing Global I II Fostering Sustainable J I I1 I I I [ Specialty films : i Exce
Slide 7: Transitioned into a Value-Added Product Business
Transitioned into a Value-Added Product Business 6 IGHFL has ventured into value-added products like SunControl, Paint Protection and Shrink Film, resulting in better recovery of revenue, and improved margins. FY17 & Prior 20% FY18 & Beyond 27% 52% ➢ Before its transformation, GHFL had a diverse ➢ G
Slide 8: Breaking Barriers: GHFL Brand dominance
I Breaking Barriers: GHFL Brand dominance 7 Brand GHFL >90% >90% of SunControl Films are exported ----------------------------------------- ' Export ' \\ j __________ j( / / Leading Choice Premium ~72% Quality, technology, and We are a renowned brand ~ GARWARE' Export ~72% of Paint Protection Films
Slide 9: Business Overview
8 Business Overview ~ GARWARE. v::!/ HI-TECH FILMS
Slide 10: GHFL's Strategic Roadmap
I GHFL's Strategic Roadmap 9 Diversified product portfolio Expanding and diversifying the range of value- Global pioneer in Polyester Film manufacturing -~ f{i)l_ R&D Focus Focusing on R&D to introduce new value-added added and patented products, such as PPF, can products and patented technology can
Slide 11: Diversified Portfolio driving GHFL's Success
I Diversified Portfolio driving GHFL's Success 10 Consumer Product Division (CPD) Industrial Product Division (IPD) Value Added Product Value Added Product Commodity • Automotive Suncontrol Film • Shrink Film • Thermal Lamination • Paint Protection Film • Electrical & Electronics • Plain Film • Safe
Slide 12: SunControl Films
I SunControl Films 11 GHFL is only company in the world with backward integration for manufacturing Solar control films Unique Product Features of Garware SunControl U. S. P. Key Application Industries Block 99% of harmful UV rays, preventing skin Extreme UV resistance damage and interior fading. Sk
Slide 13: SunControl Films – Key Drivers
I SunControl Films – Key Drivers 12 Key Growth Drives GHFL Competitive Advantages Premium leading brand & Monopoly ➢ Premium Tier-1 brand in global markets .. Product Demand & Related Sector Demand ➢ Rising domestic demand ➢ Positive outlook for automotive and real estate sectors ➢ Only one of its k
Slide 14: Paint Protection Films
I Paint Protection Films 13 Scratch-resistant and durable paint protection films are a result of over 6 decades of perfecting polyester manufacturing process. GHFL Competitive Advantages ➢ A single-source, vertically integrated manufacturing process that produces self-healing & Integrated PPF abrasi
Slide 15: Paint Protection Films – Key Drivers
I Paint Protection Films – Key Drivers 14 Key Growth Drives r------------------------------------, 300 LSF pa ,------------------------------------, 50* % I I I I I I Further scope to utilize I I I I I I Capacity Expansion I I I I I I I I I I the capacity to meet the I I I I I I I I I I Installed Ca
Slide 16: Targeting B2C Business Model
I Targeting B2C Business Model 15 Garware Application Studios (GAS) ➢ Detailing and Car care Studios dedicated to installing PPF on new or used vehicles by certified and trained applicators ➢ Targeting direct B2C space by setting up world-class (GAS) ➢ Asset light model across major Tier 1 and Tier
Slide 17: Shrink Films
I Shrink Films 16 Key Highlights ~60% Market Catering to Specialty Recyclable Share Large converters film GHFL holds ~60% Caters to leading shrink film High-shrink PET film is a One of the greatest market share of Shrink converters to meet their Specialty film, which upsides of PET shrink Film in In
Slide 18: Shrink Films – Key Drivers
I Shrink Films – Key Drivers 17 GHFL Competitive Advantages Key Growth Drives Wide variety due to consistent R&D ➢ Consistent R&D and innovation, the company today manufactures total 12 variants of the high-shrink film. .. ➢ Global shrink film is expected to grow at a CAGR of 5.4% from 2022 to 2031.
Slide 19: A Robust Global Network
I A Robust Global Network 18 GHFL's global network and unique product diversification provide diversified revenue streams and insulation from regional risks, reducing dependence on any particular market or customer. 90+ Countries India, USA, UK India ➢ Strong global distribution network [ Global Pre
Slide 20: GHFL Manufacturing footprints
,-------------------------------------------------- ' GHFL Manufacturing footprints I I Pioneering the Future of Specialty Polyester Films Fungible Capacity 19 ➢ Crucial for improving sales mix & responding to stable demand ➢ Enables shift between value-added and commodity products Fully Vertically
Slide 21: Vertically Integrated Chips-to-Films Manufacturing
I Vertically Integrated Chips-to-Films Manufacturing 20 GHFL enjoys complete control due to its vertical integration excellence, streamlining films manufacturing GHFL’s core business in value chain - Natural Resources C__) C_) C_ _ _ _) C Basic Petrochemicals Raw Materials Chips-to-Films Customers J
Slide 22: Vertical Integration: A Strategic Advantage
I Vertical Integration: A Strategic Advantage 21 Unparalleled Competitive Advantages due to its Vertical Integration ✓ Self Sufficient Eliminates dependency on other manufacturers ✓ Raw material Ensures required and continuous availability of or outside vendors. availability quality raw materials en
Slide 23: Innovation-driven R&D
I Innovation-driven R&D 22 Dynamic manufacturing facility with a dedicated R&D department “TPM Excellence Category - A” Award from the Japanese Institute of Plant Maintenance (JIPM) ➢ Separate R&D department recognized by the Department of Scientific & Industrial Research (DSIR), Government of India
Slide 24: Growth Oriented Capex completed
I Growth Oriented Capex completed 23 Key CAPEX .. INR 270 crores (FY21 – FY23) J Completed in 2 tranches Tranche 1 INR 135 Crores • Upgradation of Manufacturing CAPEX (INR crores) Facilities • Setup of New PPF Line of 300 126 LSF p.a. • Setup of New Metallizer 3,400 MT p.a Tranche 2 70 CAPEX Rationa
Slide 25: Debt Profile
I Debt Profile Key Aspects 24 ➢ Moved to zero net debt and improved balance sheet over the years Total Debt breakdown Net Debt (INR Crores) ➢ Focus on organic growth with CAPEX planned of 114 Particulars INR Crores INR 270 crores 29 19 Long Term 81.24 ➢ Completed major capex expenditure on paint -91
Slide 26: BRSR-ESG at GHFL: 3P's of Sustainability
I BRSR-ESG at GHFL : 3P’s of Sustainability 25 Sustainable, Responsible, and Committed PLANET PRODUCT PEOPLE 50% Reduction (By FY 2029-30) 3-5% Reduction (By FY 2029-30) ffl Target to reduce 50% of absolute emissions with SunControl films reducing 3-5% fuel consumption mt respect to FY 2022-23 in th
Slide 27: Financial Highlights
26 Financial Highlights ~ GARWARE. v::!/ HI-TECH FILMS
Slide 28: Message from the CMD
I Message from the CMD 27 "We have increased our focus and efforts on distribution network expansion and marketing activities to build brand awareness and demand for our world-class PPF and SCF products. We have also engaged Boston Consulting Group (BCG) to accelerate B2C growth in the domestic mark
Slide 29: Resilient performance in a challenging environment
I Resilient performance in a challenging environment 28 Consolidated Revenue EBITDA EBITDA PAT EPS Margin Q4 FY23 Rs. 349 cr Rs. 70.4 cr Rs. 43.1 cr 18.54 20.2% +7.9% YoY -0.3% YoY -4.5% YoY Revenue EBITDA EBITDA PAT EPS FY23 Margin Rs. 1438 cr Rs. 269.4 cr Rs. 166.1 cr 71.51 18.7% +10.4% YoY -2.9%
Slide 30: Quarterly Financial Performance – Q4 FY23
I Quarterly Financial Performance – Q4 FY23 29 - - - --- - - - --- - - - --- - - -- -- - - -- -- - - -- -- - - -- - -- -- - - -- -- - - -- -- - - -- ----------, AJiir +7.6% Comments • Sales for quarter Q4FY23 stood at Rs 349 crores, up by 7.6% QoQ and up by 7.9% YoY. Revenue j • Sales for the year F
Slide 31: New Initiatives
I New Initiatives 30 • Appointment of Director Technical - Mr. M. S. Adsul. An alumni of UDCT Mumbai, Mr. Adsul has more than 40 years of experience in Plastics & Polymer Engineering • New Product Launch : Environment friendly shrink film - ‘white and low density’ • 60+ Garware Application Studios (
Slide 32: Stable Performance Metrics
I Stable Performance Metrics 31 Revenue from Operations EBITDA PAT (INR crores) (INR crores) (INR crores) 23.6% 1,438 21.3% 400 14.0% 12.7%12.8% 240 1,303 11.6% 18.8% 18.7% 350 12.0% 20.0% 167 166 16.1% 277 269 300 9.3% 190 948 989 10.0% 8.6% 925 234 126 833 15.0% 250 8.0% 140 10.6% 173 200 153 82 8
Slide 33: Profit and Loss Summary
I Profit and Loss Summary 32 Consolidated In Rs. Crores Quarter Ended Year Ended Particulars 31.03.2023 31.12.2022 31.03.2022 31.03.2023 31.03.2022 (Audited) (Unaudited) (Audited) (Audited) (Audited) Revenue from Operations 349.0 324.4 323.5 1438.0 1302.6 Other Income 17.1 7.5 15.4 42.16 39.4 Total
Slide 34: Balance Sheet Summary
I Balance Sheet Summary 33 In Rs. Crores Liabilities Mar-23 Mar-22 Assets Mar-23 Mar-22 Shareholders Fund 1,855.82 1,710.88 Non-Current Assets 1,563.11 1,535.68 Share Capital 23.23 23.23 Property, Plant And Equipment 1466.01 1,338.96 Other Equity 1,832.59 1,687.65 Capital Work-In-Progress 10.32 95.8
Slide 35: Annexures
34 Annexures ~ GARWARE. v::!/ HI-TECH FILMS
Slide 36: Product Division Summary CPD
I Product Division Summary 35 CPD Consumer Product Division Automotive Suncontrol Paint Protection Safety Architectural Film Film Film Film ➢ GHFL manufactures ➢ Leveraging 8+ decades of ➢ Polyester safety films provide ➢ GHFL produces a range of automotive films with expertise in polyester high imp
Slide 37: Product Division Summary IPD
I Product Division Summary 36 IPD Special Industrial Product Division (IPD) Shrink Film Electrical & Electronics Release Liners ➢ GHFL produces shrink films for ➢ Electrical and Electronics specialty ➢ Release liners are a specialty film wrapping and labeling plastic films are widely used in various
Slide 38: Product Division Summary Commodity IPD
I Product Division Summary 37 Commodity Industrial Product Division (IPD) Packaging & Lidding Thermal Lamination Plain Film Metalized Film Film ➢ They type of specialty films that are ➢ Plain films offer excellent ➢ Packaging & Lidding Films are ➢ GHFL produces custom designed to provide heat insula
Slide 39: Thank You
38 Thank You Garware Hi-Tech Films Limited. Ernst & Young LLP CIN: L10889MH1957PLC010889 Investor Relation Advisory Ashish Samal Vikash Verma Sumedh Desai ashish.samal@garwarehitech.com Vikash.Verma1@in.ey.com Sumedh.desai@in.ey.com cs@garwarehitech.com ~ GARWARE. v::!/ HI-TECH FILMS
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