Slide 1: Investor Presentation on Un-audited Financial Results cover letter
ESTER INDUSTRIES LTD. CIN : l24111 UR1985PLC015063 DNV Date: gth November 2023 BSE Limited (BSE) National Stock Exchange of India Limited (NSE) Department of Corporate services Exchange Plaza, Phirojee Jeejeebhoy Towers Plot no. C/1, G Block, Dalal Street, Mumbai - 400023 Bandra-Kurla Complex, Bandr
Slide 2: Investor Presentation November 2023
festor Presentation November, 2023
Slide 3: Forward-looking statements disclaimer
Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause actual results to diff
Slide 4: About Us, Q2 & H1 FY24 Performance, Ester 2.0
About Us Q2 & H1 FY24 Performance Ester 2.0 Investment Thesis Business Overview 3
Slide 5: Business Overview: Diversified business portfolio
Sales Mix (Q2FY24) Diversified business portfolio Polyester Comprehensive product suite Films 88% State-of-the-art manufacturing facilities Global footprint Specialty Polymers 12% Experienced management team Healthy financial Position 4
Slide 6: Company at a glance
1985 GURGAON, INDIA #2 Year of Incorporation Corporate Headquarters Business Segments* 500 – KHATIMA, About 50 COUNTRIES SITARGANJ, CRISIL A GURGAON (Industry Outlook – Negative) 164 - HYDERABAD Global Footprint People Credit Rating (Long Term) PF - Polyester Film; SP - Specialty Polymers (EP - Engi
Slide 7: Manufacturing facilities: Sitarganj, Khatima, Gurgaon
Sitarganj Haryana Uttarakhand Gurgaon Khatima Telangana* Corporate Headquarter Manufacturing facility *Commercial production at New BOPET Film plant at Telangana commenced on 20th January 2023 6
Slide 8: We serve about 50 Countries
= 57S =) Sa INDUSTRIES TTI’ We serve about 50 Countries
Slide 9: Q2 & H1 FY24 Performance Overview
ESTER INDUITl'UES LTD. Q2 & H1 FY24 Performance Overview 8
Slide 10: Consolidated results: Continued Operations Q2 FY24
Particulars – Continued Operations Q2 FY24 Q2 FY23 % H1FY24 H1FY23 % (Rs.cr) Revenues 243.9 308.07 (20.8) 450.5 634.6 (29) EBITDA (including Non operating 2.7 30.2 (91.1) 15.2 92.2 (83.5) income) (1110 Margins (%) 1.1 9.8 (870 bps) 3.4 14.5 bps) PAT (Continuing operations) (12.8) 7.6 - (18.0) 41.7 -
Slide 11: Standalone results: Continued Operations Q2 FY24
Particulars – Continued Operations Q2 FY24 Q2 FY23 % H1FY24 H1FY23 % (Rs.cr) Revenues 271.1 306.3 (11.5) 538.1 632.8 (14.9) EBITDA (including Non operating (0.4) 27.2 - 9 88.8 (89.8) income) Margins (%) - 8.9 - 1.7 14.0 (87.9) PAT (Continuing operations) (30.4) 5 - (52.5) 38.2 - Margins (%) - 1.6 -
Slide 12: Chairman's commentary on results
Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “While we have seen a gradual pick up in the business on a sequential basis, broadly though the situation remains challenging. Specialty Polymer business performance despite witnessing some pick up in revenues and volum
Slide 13: Ester 2.0 'Specialty' Company
ESTEA INl:lUiTRHiS LTP. Ester 2.0 ''Specialty'' Company 12
Slide 14: Ester 2.0: Knowledge, Innovation, Customization, Technology
Knowledge Innovation ESTER Customization 2.0 Technology 13
Slide 15: Ester 1.0 vs Ester 2.0 achievements
Achievements Ester 2.0 Ester 1.0 Specialty Polymer SBU Commoditized product Revenues o Largely patent protected portfolio (FY12-FY16) (FY17-FY23) – high entry barriers Limited bargaining power o High sustainable margins 2.4% CAGR 9.7% CAGR Low and unpredictable o High growth potential margin
Slide 16: Revenues, EBITDA, margins and PAT FY13-FY23
Revenues (Rs.cr) EBITDA (Rs.cr) 1,405 1,213 236 243 886 928 896 771 1,0281,039 992 189 707 824 118 108 74 71 70 66 41 42 FY13 FY14 FY15 FY16 FY17 FY18 FY19FY20 FY21 FY22 FY23 FY13 FY14 FY15 FY16 FY17 FY18 FY19FY20 FY21 FY22 FY23 EBITDA Margins (%) PAT (Rs.cr) 142 139 24.6% 100 19.1% 17.9% 31 49 11.2
Slide 17: Debt, ROCE and Dividend Payout
Debt (Rs.cr) ROCE (%) 335 363 348 31% 304 300 290 28% 242 267 26% 183 142 157 14% 8% 7% 7% 7% 9% 3% 3% FY13 FY14 FY15 FY16 FY17 FY18 FY19FY20 FY21 FY22 FY23 FY13 FY14 FY15 FY16 FY17 FY18 FY19FY20 FY21 FY22 FY23 Dividend Payout (%) 37.2% 13% 21% 20% 13.4% 10% 0.0% 37% 0.0% 0.0% 0.0% FY13 FY14 FY15 FY
Slide 18: Shareholding pattern
35.71 35.71 35.80 35.90 % % % % Dec 22 Mar 23 Jun 23 Sep 23 64.04 64.04 64.04 64.04 0.25% % 0.32% % 0.16% % 0.06% % 17
Slide 19: Investment Thesis
Specialty Polymers - Polyester Films - High Largely IP protected share of value added product portfolio products Rewarding shareholders with Scaling up capacities dividend Healthy balance sheet 18
Slide 20: Green Initiatives: Focus on Sustainability
Green lniti,a tives 1 F'o cus On S·Ustainability 1 BIO-BASED F,u el Consumption PVC FREE PACKAGING (Twist Wrap I S hrink Film~ BIO...BASED Raw Material PVDC FREE PACKAGING (Transparent HJgh Barrier ftlm) PACKAGING MATER Reduction/ Recycling FOIL REPLACEMENT 19
Slide 21: Specialty Polymer
ESTEA INl:lUiTRHiS LTP. Specialty Polymer 20
Slide 22: Largely IP protected business
Customer High entry retention Largely IP barriers – ensured as High margin Marquee Export protected patent largely business clientele oriented business protected patent protected 21
Slide 23: Business Opportunity: carpet stain resistance
Problem Solution Business Opportunity USA, largest High cost towards carpet stain Flexible low cost solution producer of Carpets removal Ester has developed a PET based & Rugs boasts of Stain marks on (nylon) carpets given master batch, which imparts permanent spillover / spillage of liquid shor
Slide 24: Supplying Innovative PBT polymers to a global chemical leader
Regularly manufacturing & supplying Innovative Successful extension of the ‘Manufacture and Supply Polybutylene Terephthalate (PBT) polymers to a global Agreement’ entered with a global chemical leader in chemical leader April 2019 Ester Industries is among the only company globally Achieved sales o
Slide 25: Specialty Polymer products and applications
Polyethylene Terephthalate Consumer electronics (PET) Textile – Flame Retardant, Deep dyeable master batches, Cationic dyeable master Polybutylene Terephthalate batch Applications Products (PBT) Carpets – Stain Resistant Master Batches Polyethylene Naphthalate (PEN) Carpets – Deep Dyeable Master Bat
Slide 26: Specialty Polymer: Q2 FY24 performance and volumes
Figs. in cr Q2 Q2 Q1 Volumes (MT) Particulars % % FY24 FY23 FY24 Sales (Vol's Q2FY23 Q2FY24 599 1,248 (52) 526 14 MT) Revenue 27 72 (63) 20 35 605 EBIT 6 23 (74) 7 (14) Innovative PBT 185 Margins (%) 21.3 32 (1,070 bps) 33.3 (1,200 bps) Despite gradual recovery in revenues on a Q-o-Q basis, busine
Slide 27: Packaging (BOPET) Film Business
ESTER INDU$TRJ~$ LTP. Packaging (BOPET) Film Business 26
Slide 28: Global and domestic BOPET scenario
Global Scenario: Domestic Scenario: Demand growth of 5.5% - 6.0% Strong double digit growth rate of 11%-13% pa over past 6 years BOPET film used in flexible packaging applications will continue to be the key end use sector, Low per capita consumption of BOPET; new accounting for nearly 60% o
Slide 29: Film capacity and key facts
108,000 23,200 #35 MTPA MTPA Years of experience Polyester Film capacity Metallized Polyester Film capacity (including Telangana capacity) (including Telangana capacity) About 67,000 Telangan 50 25% MTPA a Plant Export market Share of value-added Polyethylene Terephthalate Commercial production (# o
Slide 30: Value-added mix, domestic and export split
Value Added (%) *Film business (excl. chips) Domestic Exports 28 30% 20% 23% 20% 22 22 25 (Rs.cr) FY22 FY23 Q1FY2 Q2FY2 4 4 70% 80% 77% 80% EBIT 150 72 4.0 -2.4 Margins 17.8 8.1 2.3 -1.4 FY22 FY23 Q1FY24 Q2FY24 (%) FY22 FY23 Q1FY24 Q2FY24 Pass through business model for Product mix – despite reducti
Slide 31: BOPET film applications and products
White Opaque High Clear Flexible Packaging Applications High Barrier Embossable Barrier Packaging Products Heat Saleable Twist Wrap Embossing Shrink film Anti - Static Lidding Metalized High Label & Graphics Matte Barrier 30
Slide 32: Film business Q2 FY24 performance
Figs. in cr Particulars Q2FY24 Q2FY23 % Q1FY24 % Sales (Vol’s MT) 12,892 14,885 (13) 12,462 3 Revenue 210 232 (10) 178 18 EBIT (1) 14 - 4 - Margins (%) -1 6 - 2.2 - While revenues and volumes improved on a sequential basis, overall sentiments remain challenging on account of excess supply o Share
Slide 33: Telangana plant (Ester Filmtech) performance
Ester Filmtech Limited, a wholly-owned-subsidiary of Ester Industries Limited, commenced commercial production on 20th January 23 at new Polyester (BOPET) film manufacturing plant in the State of Telangana. Generated revenues worth Rs.65 crore during Q2FY24; volumes of 5,975 MT Low margins and
Slide 34: Ester Filmtech Q2 and H1 FY24 results
Particulars – Continued Operations (Rs.cr) Q2 FY24 H1 FY24 Net Sales 64.8 128.1 Other Operating Income 0.4 0.8 EBITDA (6.4) (10.6) Other Non-Operating Income 3.2 4.4 Cash Profit (11.3) (21.8) PBT (17.7) (34.5) PAT (17.7) (34.5) 33
Slide 35: About Us and contact details
About Us: (CIN :- L24111UR1985PLC015063) Incorporated in 1985, Ester Industries Limited (EIL) is an ISO 9001:2008,ISO 22000:2005,TS16949:2002 certified Company engaged in the manufacture of Polyester Films, Specialty Polymers and Polyester Chips with manufacturing facilities located in Khatima & Sit
Slide 36: Thank You
- I - .1. . ·- • -· - ..... ..... ESTER Thank You INDUSTRIES LTD 1 •