Slide 1: Exchange filing cover letter
November 17, 2023 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 : POLYP
Slide 2: Second Quarter 23-24 Financial Results & Business Profile
Polyplex Corporation Limited November 17, 2023 Second Quarter 23-24 Financial Results & Business Profile India - Bazpur India - Khatima USA Thailand Indonesia Ecoblue, Thailand Turkey 1
Slide 3: Contents
Contents Company Overview Quarter & Year under review Success Enablers Stability in Earnings Industry Outlook Growth Capex Guidance Annexures 2
Slide 4: Company Overview
Company Overview POLYPLEX.
Slide 5: Polyplex at a Glance
Polyplex at a Glance ◼ Integrated and diversified manufacturer of plastic film substrates including BOPET (thin & thick), BOPP, CPP and Blown PP / PE ◼ Wide offering of specialty, innovative and differentiated products across a variety of packaging, electrical & electronic and other industrial appli
Slide 6: Polyplex Journey so far
Polyplex Journey so far: Ability to identify & capitalize on opportunities Trend-Setter With Many ‘Firsts’ in the Industry First in the industry to invest First in the industry First Indian manufacturer in post-consumer and post- to operate 10.6-meter line @ to set up overseas operations industrial
Slide 7: Pioneer in Sustainable Products and Processes in the Industry
Pioneer in Sustainable Products and Processes in the Industry Strong Commitment Towards Sustainability Focused Innovative Solutions ◼ Spearheading post-consumer and post-industrial waste (PIW) recycling in the industry towards achieving the goal of circular economy ◼ Has taken various initiatives to
Slide 8: Quarter under review
Quarter under review POLYPLEX.
Slide 9: Financial Performance – Snapshot
Financial Performance – Snapshot India Rating & Research IND AA- (Positive Outlook) Superior Value Creation Over the Years… (Q2 FY 23-24) (H1 FY 23-24) $190mm $16mm $379mm $30mm Revenue# Normalized Normalized EBITDA* Revenue# EBITDA* 9% 8% Normalized 5% Normalized 4% EBITDA* ROCE1 EBITDA* ROCE1 Marg
Slide 10: Q2 FY 23-24 Performance Snapshot
Q2 FY 23-24 Performance Snapshot QoQ Growth YoY Growth (Q2 FY 23-24 v/s Q1 FY 23-24) (Q2 FY 23-24 v/s Q2 FY 22-23) Sales Volume 5% -8% (All Films) 85,767 MT Sales Revenue 1% -25% 1,569 INR Crores ($ 190 million) Normalized EBITDA 136 INR Crores ($ 16 million) 24% -53% PAT (Before Minority) INR 59 cr
Slide 11: H1 FY 23-24 Performance Snapshot
H1 FY 23-24 Performance Snapshot YoY Growth (H1 FY 23-24 v/s H1 FY 22-23) Sales Volume -7% (All Films) 167,819 MT Sales Revenue -24% 3,127 INR Crores ($ 379 million) Normalized EBITDA -65% 245 INR Crores ($ 30 million) PAT (Before Minority) -93% 38 INR Crores ($ 5 million) EPS 7.90 INR/Share -92% Fa
Slide 12: EBITDA Evolution
EBITDA Evolution Normalized EBITDA Bridge (Q2 23-24 vs Q1 23-24) 2.8 1.8 0.2 0.2 0.5 1.3 USD million 15.5 15.7 16.0 16.4 13.2 13.2 14.2 14.2 Normalised EBITDA - Volume VA variance Rate VA variance Other Film & Chips Other Variable Cost Fixed Cost Other Operational Normalised EBITDA - Q1 23-24 (Thin
Slide 13: Improving Shareholders' Return
Shareholders’ Return Improving Shareholders’ Return 4,000 1,137 1,136 1,200 1,086 952 990 3,500 1,000 850 3,000 800 INR Crores 2,500 INR 2,000 600 3,410 3,569 3,567 1,500 3,109 400 1,000 3,046 200 500 2,719 - - FY19 FY20 FY21 FY22 FY23 H1FY24 Shareholders' Fund (after adjusting for minority) - INR C
Slide 14: Success Enablers
Success Enablers POLYPLEX.
Slide 15: Success Enablers
Success Enablers 1 Global and Integrated Manufacturing Set-up 2 Diversified and Differentiated Product Portfolio Polyplex is the ONLY Multifarious and Demanding Customer Base Served Player to Combine Key 3 by an International Sales & Distribution Network Attributes… Continued Focus on Operational Ef
Slide 16: A Self-Contained Manufacturing & Sales Capability in Each Region
1 A Self-Contained Manufacturing & Sales Capability in Each Region Manufacturing Proximity and an Entrenched Sales & Distribution Network in Major Demand Centers Ensure a Reliable Supply Chain for Customers 7 Manufacturing Facilities In 5 Countries with Multiple Warehouses & Liaison Offices Worldwid
Slide 17: Integrated Manufacturing Capacities Across Geographies
1 Integrated Manufacturing Capacities Across Geographies Ability to Provide a Comprehensive Suite of Products in Each Manufacturing Location Resin Base Films Value Added Films Mechanically PET Film Recycled BOPET BOPET Blown PP / Resin1 Resin2 Thin Thick BOPP CPP PE Metallized Holography Coated3 TMP
Slide 18: Integrated Manufacturing Has Broadened Product Portfolio
1 Integrated Manufacturing Has Broadened Product Portfolio Base Film Lines with Upstream PET Resin Plants and Downstream Capabilities ◼ The only global player with resin plants at all manufacturing locations ◼ Forward integration provides ability to undertake one or more downstream processes on the
Slide 19: Integrated Manufacturing Across Geographies
1 Integrated Manufacturing Across Geographies Ensures Supply Chain Efficiency, Cost Optimization & Lower Time to Access and Market New Products and Applications Backward integration into captive PET resin Forward integration to downstream capabilities production at all film manufacturing locations i
Slide 20: Polyplex – A Respected Plastic Film Manufacturer
2 Polyplex – A Respected Plastic Film Manufacturer In addition to Sarafil range of standard and specialty base films, Polyplex has diversified into several value-added downstream products under Saracote, Saralam and Saraprint brands over the last 10-15 years Sarafil Base Films are suitable for a ran
Slide 21: Focus on Highly Differentiated Specialty Film Sales
2 Focus on Highly Differentiated Specialty Film Sales Differentiated Product, Application or Customer (D-PAC): Drives Polyplex’s Right to Win in a Competitive Industry Unique value proposition of differentiated products, applications and customers has led to a healthy growth in specialty portfolio ✓
Slide 22: Increasing Contribution of D-PAC Sales
2 Increasing Contribution of D-PAC Sales Continued Increase in D-PAC Volumes… …Resulting in Growth of Incremental1 D-PAC EBITDA KMT (films) Incremental EBITDA for D-PAC ($ / kg) EBITDA ($ million) 0.70 0.75 0.81 0.93 0.87 360 $186 323 $171 306 274 $133 $132 $110 268 229 $116 $47 233 207 $86 124 $76
Slide 23: Product and Application Penetration (1/6)
2 Product and Application Penetration (1/6) Flexible Packaging - Food¹ Sugar & Confectionary Frozen Food Cheese & Dairy Snacks & Cookies Tea & Coffee Cereals Food Staples Soups Liquids Specialty Food Others ¹ Sarafil Thin BOPET (Primarily). BOPP Specific 22
Slide 24: Product and Application Penetration (2/6)
2 Product and Application Penetration (2/6) Flexible Packaging – Non Food¹ Medical & Pharmaceutical Kitchen & Home Care Cigarettes & Tobacco Personal Care & Hygiene Pet Food Garden & Outdoor Electronics Packaging Miscellaneous Personal Care & Hygiene Shrink Films Textile Bags Tapes ¹ Sarafil Thin BO
Slide 25: Product and Application Penetration (3/6)
2 Product and Application Penetration (3/6) CPP & Blown PP/ PE Food Food Overwrap Flower Overwrap CPP Sealant Film Medical Retort Anti-fog Construction Underlayment Metallized PE, Sealant, Safety Air Bags Container Liner Labels & Specialty Blown PP Blown PE Retort PP Mulch Metal Protection Stretch W
Slide 26: Product and Application Penetration (4/6)
2 Product and Application Penetration (4/6) Labels, Carton, Holography¹ and Paper Labels Carton Packaging Direct and Transfer Metallized Paper Brand Protection - Holography 1Sarafil Thin BOPET, BOPP 25
Slide 27: Product and Application Penetration (5/6)
2 Product and Application Penetration (5/6) Industrial1,2 Thin Films¹ Flexible Ducting Hot Stamping Foil Tapes Release Liners¹,² EV Battery MLCC Construction, FRP 1,2 Window Films 1,2 Electronics 1,2 Others Thick Films² Media & Screen PV Solar Electricals Face Shield Electronic Liner Decoration Prot
Slide 28: Product and Application Penetration (6/6)
2 Product and Application Penetration (6/6) Downstream Construction Release Liners Saracote Saraprint Saralam 27
Slide 29: Constantly Innovating to Ensure Sustained Differentiation
2 Constantly Innovating to Ensure Sustained Differentiation Dedicated R&D Ecosystem in India Demonstrated ability to partner with customers for joint product development and co-innovation due to strong technical capabilities, thereby deepening customer relationships A separate R&D department registe
Slide 30: Global and Well-Diversified Customer Base
3 Global and Well-Diversified Customer Base Deep-Rooted Relationships with Key Customers Spanning Over 15+ Years ◼ Tier I supplier to leading global and regional converters who cater to global CPGs / OEMs ◼ Strong manufacturing and distribution capabilities helps capitalize on the increasing prefere
Slide 31: Continued Focus on Operational Efficiencies and Costs
4 Continued Focus on Operational Efficiencies and Costs ◼ Business process continuous improvement and excellence programs — Undertaking several initiatives to improve business processes and optimize costs through continuous improvement in the areas of productivity, wastage, freight, packing, energy
Slide 32: Superior Utilization Relative to Industry
4 Superior Utilization Relative to Industry Polyplex has consistently improved capacity utilization through debottlenecking and outperformed the industry (Thin BOPET Film utilization) 500 100% 99% 99% 99% 98% 120% 400 100% 80% 300 82% 82% 81% 76% 60% 200 40% 100 203 229 232 231 20% 115 - 0% FY20 FY2
Slide 33: Sustained and Profitable Growth (1/3)
5 Sustained and Profitable Growth (1/3) Sales Volume Across All Films (KMT) EBITDA ($mm) and EBITDA Margin (%) & $/kg 11% 21% 26% 21% 14% 8% 12% 6% -7% 0.49 0.56 0.57 0.37 0.18 323 360 171 186 274 306 133 132 168 30 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 Annualised Annualised Sales Vo
Slide 34: Sustained and Profitable Growth (2/3)
5 Sustained and Profitable Growth (2/3) Revenue (USD million) Effective Tax Rate 38.8% 887 951 16.5% 34.5% 630 660 12.9% 15.5% 7.7% 379 12.1% 14.7% 9.0% 7.0% FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 Annualised Current tax adjusted for tax on inter company dividend Current tax (unadjuste
Slide 35: Sustained and Profitable Growth (3/3)
5 Sustained and Profitable Growth (3/3) EPS (INR/Share) Dividend Per Share (INR/Share) 132 181.19 162.57 68 65 88.18 110.97 7.90 32 36 23 17 2 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 Normal Dividend Special Dividend Normalized1 ROCE ROE 26% 25% 25% 25% 21% 15% 16% 14% 19% 20% 18% 19% 1
Slide 36: Polyplex's Commitment to Sustainable Development & Growth
6 Polyplex’s Commitment to Sustainable Development & Growth Commitment Towards Sustainable Environment A ◼ Strive to work on sustainable products and processes ◼ Continue to make multiple and substantial investments in recycling operations to provide solutions for post industrial as well as post-con
Slide 37: Continued Focus and Thrust on Sustainability
6 Continued Focus and Thrust on Sustainability 5 1 ◼ Industry Collaboration — Working in close collaboration ◼ Increase in Post-consumer / with industry associations, Post-industrial Recycling CPGs/OEM, Converters and Capacity research organizations to develop viable solutions 4 3 2 ◼ Ecoblue Initia
Slide 38: Recent Initiatives Undertaken by Polyplex
6 Recent Initiatives Undertaken by Polyplex Sustainable Products That Have Already Been Delivered Polyplex has successfully executed several sustainability initiatives till date Post-Consumer Foil Replacement Recycled PET Film - Mono PET structures (High Barrier 30% - 100% PCR Metallized films) PVC
Slide 39: Ecoblue - A Recycling Initiative of Polyplex
6 Ecoblue - A Recycling Initiative of Polyplex Ecoblue is helping brands meet their sustainability goals About Ecoblue Key Products ◼ Starting operations in 2013, Ecoblue provides sustainable solutions for film-based process rPET resin waste as well as post-consumer plastic waste for varied applicat
Slide 40: Promoting Sustainability Through Ecoblue
6 Promoting Sustainability Through Ecoblue Engaged in Adopting Innovative Recycling Solutions Ecoblue is a specialist in recycling a wide spectrum of materials Recycled Polyolefin for Virgin Recycling Unrecyclable Materials rPET for Virgin Replacement Replacement Ecoblue Strap2Strap Solution Bottles
Slide 41: Meaningful Social Impact
6 Meaningful Social Impact Conscientious Approach to Contribute to the Community ◼ Ensures safety and security of staff members — A robust health monitoring mechanism has been in place including handling of emergency situations — Proactive communication and prevention has been the hallmark of these
Slide 42: Focus on SCORE
6 Focus on SCORE Core Values Binding the Employees ◼ We leverage synergies across hierarchies, functions and Seamlessness locations Professional, highly Stable management qualified and team with almost ◼ We value our people and are committed to their experienced zero attrition over leadership team t
Slide 43: Creating Impact Through Strong Governance
6 Creating Impact Through Strong Governance Continuously Strives to Follow Best Practices ✓ Committed to promoting fundamental values of honesty, integrity, and ethical conduct among all stakeholders ✓ Strong compliance orientation — Adheres to all applicable laws, regulations and guidelines across
Slide 44: Recipient of Prestigious Awards and Accolades Globally
6 Recipient of Prestigious Awards and Accolades Globally Polyplex has been a recipient of some of the most prestigious awards in the industry, demonstrating its commitment towards becoming a global leader in the industry Prime Minister’s Best Public Best Public Corporate Social Company of 2020 – Gre
Slide 45: Stability in Earnings
Stability in Earnings 44
Slide 46: Business Model Creates a Natural Hedge Against Industry Volatility
Key Attributes of the Business Model Creates a Natural Hedge Against Industry Volatility Global S&D Network => diversified Global – local manufacturing and fragmented customer base; => cater to local market optimized market mix to improve needs margins Diversified portfolio Integrated manufacturing
Slide 47: Superior and Stable Gross Margins Relative to the Industry
Polyplex Has Consistently Generated Superior and Stable Gross Margins Relative to the Industry VA Stability Polyplex’s strength as a diversified and specialty - focused business enables it to achieve steadier gross margins 1.40 114 120 1.20 1.09 1.11 1.09 100 1.25 1.05 1.00 1.01 89 87 1.00 0.95 80 1
Slide 48: Industry Outlook
Industry Outlook 47
Slide 49: Thin BOPET Demand
Thin BOPET Demand Thin BOPET Film Demand Expected to Stay Resilient and Accounts for 80% of Global BOPET Film Demand Thin BOPET Films Expected to Be the Fastest Growing Segment in the Global BOPET Films Market Global Thin BOPET Film Demand (KMT) Demand growth 7,000 of 5-6% 6,000 5,000 4,000 3,000 2,
Slide 50: Thin BOPET Industry Outlook
Thin BOPET Industry Outlook Upcoming Capacity Additions Expected Capacity Additions - Thin PET Film ◼ Majority of the new capacity is being installed in low-cost developing countries - China and India, China accounting for ~70% and India ~12% of the total upcoming capacity 9,000 ◼ Based on the lates
Slide 51: Growth Capex
Growth Capex POLYPLEX.
Slide 52: Investment Under Implementation
Investment Under Implementation Key Investment Rationale ◼ New investment rationale: — High level of confidence owing to established sales and distribution network Base Film Capacity Expansion (i.e., Second BOPET Film and Debottlenecking Resin — Market growth of 10-12 KT p.a. plant) in USA — Availab
Slide 53: Guidance
Guidance POLYPLEX.
Slide 54: Third Quarter 23-24 Guidance
Third Quarter 23-24 Guidance Normalised EBITDA (USD million) 60 50 40 30 50 54 52 45 46 44 20 39 40 37 36 15 32 10 16 13 13 0 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 Q1 22-23 Q2 22-23 Q3 22-23 Q4 22-23 Q1 23-24 Q2 23-24 Q3 23-24 Key Factors impacting Q2 performance •
Slide 55: Annexures
Annexures POLYPLEX.
Slide 56: Shareholder Pattern
Shareholder 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’23) i
Slide 57: Group Structure
Group Structure | | 33.81% Polyplex (Thailand) Public Co. Ltd. 100% 100% | (eal 100% | — Lee! Polyplex America Holdings Inc. Polyplex (Singapore) Pte. Ltd. Polyplex Europa B.V. = [tt 100% Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi Investment and Trading & Distribution poEUeees P
Slide 58: 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 59: Glossary
Glossary • EBITDA: Reported Earning before interest, tax, depreciation and amortisation • Normalized EBITDA: EBITDA excluding impact of unrealized FX gains/(losses) on long term loans • Revenue: Reported sales excluding other operating revenues • Net debt: Long-term debt + short term debt + current
Slide 60: 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 BSE (scrip code) : 524051 Symbol : PTL NSE (symbol) : POLYPLEX ISIN : INE633B01018 Polyplex India Polyplex Thailand 59