Slide 1: Exchange filing cover letter for Q2 results presentation
______________ ~POLYPLE)( November 16, 2021 The Manager - Listing Department, The General Manager - Listing Department, National Stock Exchange of India Limited, BSE Limited Exchange Plaza, NSE Building, Phiroze Jeejeebhoy Towers, Sandra Kurla Complex, Dalal Street, Sandra East, Mumbai- 400 001' Mum
Slide 2: Second Quarter FY 21-22 Financial Results & Summary
Second Quarter FY 21-22 Financial Results & Summary Polyplex Corporation Limited (PCL) November 16, 2021 !1
Slide 3: Polyplex At a Glance
Polyplex At a Glance Years 33 High level of expertise, especially in PET Film production, with Of Experience in-house R&D continuously seeking to provide innovative in Plastic Films solution to customers #1 In BOPET Film Production in SEA The preferred provider across regions #7 Global BOPET Thin Fi
Slide 4: Polyplex: At a Glance
Polyplex: At a Glance India Rating & Research IND AA- (Stable Outlook) Q2 FY 21-22 Highlights H1 FY 21-22 Highlights 1,543 Cr ($ 208 million) +7% +26% 2,979 Cr ($ 403 million) +25% Sales Revenue# QoQ YoY Sales Revenue# YoY 272 Cr ($ 37 million) -17% -19% 600 Cr ($ 81 million) -6% Normalized EBITDA*
Slide 5: Polyplex Journey so far: Ability to identify & capitalise on opportunities
2019 2022/2023 TMP in Bazpur, India New PET Film line and OLC in USA Polyplex Journey so far: Ability to identify & capitalise on opportunities Started manufacturing in Indonesia 2014 Expansion of Coating and Holography Started Offline Chemical business in Khatima, India Coated operations in Turkey &
Slide 6: 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 !5
Slide 7: Global leadership position with industry leading scale & cost
Global leadership position with industry leading scale & cost !6
Slide 8: 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 PET film 550 Global #7 in Thin PET Film* 440 Polyplex By Capacity Poland (KMTPA) 330 Netherlands Italy Korea Japan 220 USA
Slide 9: Industry Trend Setter
Industry Trend Setter First in First Indian Only Industry producer Company Operate 10.6 metre line Integrated PET resin To set up overseas operations @ 675 mpm manufacturing at all locations Diversified Product Portfolio Forward integration into Direct Melt Casting for across several substrates Meta
Slide 10: Global Presence & Portfolio
Global Presence & Portfolio Operating company-wise breakup of sales Business segment-wise breakup of sales H1 FY 21-22 H1 FY 21-22 2% 4% 4% 4% 10% 27% 4% 6% 17% 9% 57% 14% 19% 23% Thin PET Film Coated Film Polyplex USA Polyplex India OPP Thick PET Film Polyplex Thailand Polyplex Turkey (PE+PP) CPP/B
Slide 11: 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) 55,000 35,000 37,300 4,080 257 83 India 77,60
Slide 12: Industry leading cost structure
Industry leading cost structure Polyplex CUF vs Industry (Thin PET Film) Enhancing Operational Excellence Industry leader with near 100% 99% 100% 99% 99% 2,33,000 95% 100% Capacity Utilization through • Implementing Kaizens to business cycles improve productivity and 80% 82% 82% 80% business process
Slide 13: Strong financial & operational track record
Strong financial & operational track record !12
Slide 14: Q2 FY 21-22 Performance Snapshot
Q2 FY 21-22 Performance Snapshot QoQ Growth YoY Growth (Q2 FY 21-22 v/s Q1 FY 21-22) (Q2 FY 21-22 v/s Q2 FY 20-21) Sales Volume (All Films) 77,999 MT 1% Sales Revenue# 7% 26% 1,543 INR Crores ($ 208 million) Normalized EBITDA* -17% -19% 272 INR Crores ($ 37 million) PAT (Before Minority) -9% 66% 169
Slide 15: H1 FY 21-22 Performance Snapshot
H1 FY 21-22 Performance Snapshot YoY Growth (H1 FY 21-22 v/s H1 FY 20-21) Sales Volume 5% (All Films) 154,954 MT Sales Revenue# 25% 2,979 INR Crores ($ 403 million) Normalized EBITDA* -6% 600 INR Crores ($ 81 million) PAT (Before Minority) -18% 355 INR Crores ($ 48 million) EPS 66.12 INR/Share -18%
Slide 16: 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 2.10 2.12 2.04 1.97 1.85 2,26,950 1.03 1.05 1.11 1.04 1.01 1,98,056 Q2 0.91 1,70,456 1,78,782 57,664 Q1 57,403 17-18 18-19 19-20 20-21 H1 21-22 17-18 18-1
Slide 17: EBITDA
EBITDA 200 Normalised EBITDA* - Trend Normalised EBITDA* (Q2 21-22 vs Q1 21-22) 150 7.4 0.4 0.7 0.3 0.4 44.3 44.27 37.26 USD million 36.85 36.58 36.31 36.72 36.7 USD million 100 171 133 115 Q2 50 91 37 Q1 44 EBITDA Volume VA Rate VA Other Film & Other Fixed Cost Other EBITDA 17-18 18-19 19-20 20-21
Slide 18: Strong Liquidity
Strong Liquidity Free Cash Flow Deployment Trend (INR Crores) 1227 90 33 864 724 61 542 103 562 236 562 209 160 82 159 97 146 79 310 224 529 472 370 228 137 -37 -104 -2 -49 -125 -11 17-18 18-19 19-20 20-21 H1 21-22 Capex Increase/(Decrease) in NWC Dividend Paid BuyBack of shares (incl. Tax) Net Repa
Slide 19: Strong Financial Performance
Strong Financial Performance Sales Revenue* (USD million) Cash & Debt Position (USD million) 650 630 660 551 Q2 208 172 Q1 195 125 94 100 17-18 18-19 19-20 20-21 H1 21-22 Annualised 78 * Excludes other operating revenues Effective Tax Rate (Tax/PBT) 16.50% 25 Polyplex Corporation Limited Polyplex (Th
Slide 20: Strong Financial Performance
Strong Financial Performance EPS^ (INR/Share) Dividend Per Share (INR/Share) 132 162.57 103.19 88.18 Q2 31 33 30.59 30 49.85 Q1 35.52 10 20 17 32 15 17-18 18-19 19-20 20-21 H1 21-22 17-18 18-19 19-20 20-21 H1 21-22 Annualised Normal Dividend Special Dividend ^ EPS is computed based on daily weighted
Slide 21: Total Shareholder's Return
Total Shareholder’s Return Since 3,400 1,100 Last 1 Last 3 Last 5 Shareholder’s Return IPO 996 year years years 990 (1988) 952 2,800 950 (A) Total Returns* 850 INR Crores - Polyplex 171% 60% 50% 26% 781 INR 2,200 800 - Nifty 500 - TRI 52% 22% 18% 13% 3,029 3,053 3,133 2,771 - BSE Small Cap - TRI 91%
Slide 22: Third Quarter 21-22 Guidance
Third Quarter 21-22 Guidance 47 45 46 44 39 40 37 35 31 33 34 Normalised EBITDA (USD million) Q1 19-20 Q2 19-20 Q3 19-20 Q4 19-20 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 The forward-looking statements reflect Polyplex’s expectations of its next quarter earnings. These are base
Slide 23: Awards
Awards Polyplex (Thailand) Public Co. Ltd got the Prime Minister Industry Award 2021 in Sustainable innovation Polyplex (Thailand) Public Co. Ltd has been awarded the esteemed title of “Green Innovation Award” at the prestigious Asia Corporate Excellence & Sustainability Awards 2021 Green Innovation
Slide 24: Continuous and high growth in demand
Continuous and high growth in demand !23
Slide 25: Continuous Growth
Continuous Growth Polyplex growth more that the average market growth rate Capacity is in ‘000 MT 1100 1,049 1,051 Capacity CAGR 8% 971 880 814 735 640 640 660 660 629 633 533 455 440 220 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Base Film Resins (incl. Recycled) Metallised Film (i
Slide 26: Global Demand Growth
Global Demand Growth 6,000 Retail format & 4,500 E-commerce Increasing Improving Environmental 3,000 5,380 Quality of Life 4,549 4,808 5,084 Awareness 3,943 4,101 4,289 PRIMARY 1,500 GROWTH Increasing DRIVERS Population 2018 2019 2020 2021F 2022F 2023F 2024F Consumerism Growth Global Thin PET Demand
Slide 27: Stable earning across business cycles
Stable earning across business cycles !26
Slide 28: Value Chain
Value Chain NATURAL BASIC RAW PLASTIC & INTERMEDIATE RESOURCES PETROCHEMICALS MATERIALS PRODUCTS Film Packaging & Industrial CPGs/OEMs Ethylene MEG Grade Converters PET Polyplex’s Area of operation Retail Chain/ Resin E-Commerce Coating Natural Gas PCR PET Base Films End Flakes Consumers Paraxylene
Slide 29: 70% Packaging
Product Applications Food Personal Care - Health & Hygiene Retort Pouch Susceptor Film Easy Peeling Lids Healthcare Products Liquid Packaging 70% Packaging Wafer Bag Rice Bags Coffee Pouch Air Freshener Carton Packaging Soup Powder Meat Wrap Candy Wrap Mosquito Mat Wet Wipes Label Frozen Food Baby Fo
Slide 30: 30% Industrial
Product Applications Electrical & Electronic Building & Construction Countless Others Solar Panel Wire and Cable Motor Insulation PP Liner Shingle Liner FRP Protection Film Floor Heating Film Back sheets Overwrap 30% Industrial Flexible Circuits MTS Keypads ESD Bags Flexible Ducts Window Film Face S
Slide 31: Strong R&D Capability
Strong R&D Capability A separate R&D department 13 dedicated personnel in Focus on providing innovative registered with the Corporate R&D supplemented by solutions to customers. Department of Scientific and local technical service and R&D Collaborative Research with Industrial Research (DSIR), team
Slide 32: Business Outlook and Sustainability
Business Outlook and Sustainability !31
Slide 33: VA Stability
VA Stability PCL VA v/s China VA v/s Crude Stable VA despite crude price volatility 75 75 74 69 69 69 63 62 63 61 $/Barrel 50 $/Kg 43 1.17 44 1.09 1.11 1.01 1.03 1.05 0.97 1.00 0.97 0.99 1.00 0.97 0.98 0.92 0.93 0.95 30 0.72 0.75 0.71 0.68 0.70 0.61 0.65 0.61 0.56 0.60 0.54 0.50 Q1 18-19 Q2 18-19 Q3
Slide 34: Grow Sustainable Business Line
Grow Sustainable Business Line Introduce Sustainable Products and Adopt Sustainable Process In response to global concern over plastic use and develop sustainable business, Polyplex aims to continue introducing sustainable plastic products and transform the business process to be more environmentall
Slide 35: Polyplex & Sustainability
Polyplex & Sustainability Ecoblue Limited, Thailand provides sustainable solutions for the packaging and apparel industry • US FDA & GRS approved 3D Pure rPET, rPP & rHDPE resins for bottle, film and polyester yarn applications • New state of the art facility being setup to provide complete solution
Slide 36: Industry Outlook
Industry Outlook OUTLOOK Expected Total Capacity in the Industry • Approx.1.47 Million Tons of Capacity (more than 55% in China) to be further added in Thin PET by BOPET Thin Film 2024 globally Unit:KMT • Changing cost dynamics may result in closure/underutilization of older lines A G R * . 6 8%C •
Slide 37: Growth Plans
Growth Plans Capital Cost Projects Location Likely Start Up Benefits related to on-going Other Projects: (In USD million) 1.Expansion of product portfolio Brownfield - BOPP Indonesia 54 Expected Soon 2.De-bottlenecking of existing film lines Brownfield - BOPET USA 83 H2 2022-23 3.Increasing the shar
Slide 38: Stable & proven Management team
Stable & proven Management team !37
Slide 39: Healthy Work Environment
Healthy Work Environment • Professional, highly qualified and experienced leadership team • Stable management team with almost zero attrition over the last several years • Strong Value system - SCORE Seamlessness, Care, Ownership & Responsibility and Excellence • Focus on Empowerment & Inclusiveness
Slide 40: Annexures
Annexures Contents • Shareholding Pattern • Group Structure !39
Slide 41: 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’21)
Slide 42: Group Structure
Group Structure 100% 17.19% Public/Institutional Shareholder Polyplex Corporation Limited 49% 33.81% Polyplex (Asia) Pte. Ltd Polyplex (Thailand) Public Co. Ltd. 100% 66.50% 100% 100% 100% PAR LLC Eco Blue Ltd Polyplex America Holdings Inc. Polyplex (Singapore) Pte. Ltd. Polyplex Europa B.V. 100% 33
Slide 43: 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 44: 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 BSE (scrip code) : 524051 Fax:+91.120.2443723 & 24 Symbol : PTL NSE (symbol) : POLYPLEX Included in SET 100 ISIN : INE633B01018 Polyplex India Polyplex Thailand !43
Slide 45: Glossary
Glossary • EBITDA: Earning before interest, tax, depreciation and amortisation • PCL: Polyplex Corporation Limited • PTL: Polyplex (Thailand) Public Company Limited • PE: Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi • PU: Polyplex USA LLC • PFI: PT Polyplex Films Indonesia • WOS: