Slide 1: Cover letter to stock exchanges
30" May, 2022 The Listing Department, The Manager The Manager, The Calcutta Stock Exchange | The Department of Corporate | The Listing Department, Ltd, Services, National Stock Exchange of India 7, Lyons Range, BSE Limited, P. J. Towers, Limited, Exchange Plaza, Kolkata - 700001 Dalal Street, Bandra
Slide 2: FY22 Strategy Presentation
FY22 STRATEGY May 2022 PRESENTATION. NSE : LINC BSE : LINC Linc Limited Bloomberg : LINC:IN (formerly Linc Pen and Plastics Limited) 1
Slide 3: Inside this Presentation
Inside this Presentation. Executive Summary Industry Outlook LINC 2.0 Financial Snapshot 2
Slide 4: Who are we?
L NC lincpen.com LINC Who are we?.
Slide 5: A Leading Writing Instrument Company
A Leading Writing Instrument Company . • Among Top 3 brands • New Writing Instrument • Global brand from • Asia’s largest stationery in India for Writing brand launched in FY19 by Mitsubishi Pencil Co. Ltd, giant. • Linc Ltd. is the 3rd Instruments. Linc in MRP ₹10 and above Japan. largest writing s
Slide 6: Trend of Financial Performance
Trend of Financial Performance . Operating Income Operating EBITDA 5000 12.00% 38.3% 9.6% 10.00% ₹ Lacs 39,699 4000 7.8% ₹ Lacs 36,694 33,189 3,826 8.00% 35,496 3000 6.9% 4.0% 6.1% 6.00% 10.6% 25,666 8.2% 2000 2,577 2,539 2,153 4.00% -5.3% -35.3% 1000 2.00% 1,017 0 0.00% FY18 FY19 FY20 FY21 FY22 FY1
Slide 7: Leadership
Leadership. MR. DEEPAK JALAN MR. ANIL KOCHAR Managing director, Independent, Non-executive director, • Commerce graduate with 35 years of experience • Postgraduate in Commerce and LLB • Responsible for the overall operations with a specialization in • An eminent advisor on income tax matters interna
Slide 8: Industry Outlook
L NC lincpen.com LINC Industry Outlook.
Slide 9: Global Writing Instrument Industry Opportunity
Global Writing Instrument Industry Opportunity. 1. The Global writing instruments Global Writing Instrument Industry Share of relevant market market is dominated by USA with a market share of 27% 2020 2027 2. Growth Drivers: 20.6 Billions 15.9 CAGR Ball and Gel Pen 36% 41% a) Demand for Luxury USD 3
Slide 10: Global Stationery Industry Opportunity
Global Stationery Industry Opportunity. Global Stationery Products Market • The stationery industry is divided into paper and non-paper 217.9 stationery, the latter accounting for the larger share • Growth Drivers • Billions 192.2 Rising inclination towards higher education CAGR USD 1.81% • Demand f
Slide 11: Opportunity in Indian Market
Opportunity in Indian Market. Indian Education Market Size Indian School Market Size • Largest population in age bracket of 5-24 years ~ 580 million 225 74.3 • Over 250 million school going students • Indian education market expected to be ~ $225 CAGR CAGR billion by FY 25, growing at over 13% 91.7
Slide 12: LINC 2.0
L NC LINC 2.0. lincpen.com 11
Slide 13: Evolution to Linc 2.0
Evolution to Linc 2.0. Full Effect of Pentonic Project Full Effect of Gel Pen Project Share of Pentonic Revenue Total Revenue reached ₹ 13,684 lacs increased to 17%, GM and EBITDA was ₹ 918 lacs expanded to ~ 25% due to higher GP of 46% on Pentonic 1999- 2004- 2018- 2019- 2022 2000 2005 2019 2020 On
Slide 14: Increased Touch Points
Increased Touch Points. 2,18,471 1,48,898 1,16,963 ▪ India has over 10 Mn non-stationery outlets 65,000 56,553 ▪ Broken tradition by expanding to neighbourhood 46,000 50,000 grocery stores (Kirana, Medical stores, Pan stores, etc.) 5,000 2,000 3,000 ▪ Currently, we have crossed the milestone of 1 la
Slide 15: Focus on Higher Margin Products
Focus on Higher Margin Products. • Pentonic brand introduced in FY19 as a minimalistic yet 25.5% contemporary pen, known for its aesthetics as well as writing 20.0% 17.2% smoothness 7.0% • Positioned at ₹ 10 + segment, Pentonic’s GPM is ~ 43% 0.0% • Increase in share of Pentonic in total revenue lea
Slide 16: Inroads into Stationery Products
Inroads into Stationery Products. • Targeting over ₹7,500 lacs topline by FY25 • Deli will contribute ~ 15% in company’s total revenue in the next 3-4 years • Deli’s GPM is around 20% and hence it will start contributing significantly to the operating EBITDA of the company from the current financial
Slide 17: Step-up the Existing Capacity
Step-up the Existing Capacity. Linc plans to increase its existing in house capacity from 10 lacs pen per day to 15 lacs pen per day Revenue Potential of the new facility at full capacity will be ~ ₹7,500 lacs Land acquisition in the final leg of completion with advance already paid and land blocked
Slide 18: ESG
ESG. Environment Social Governance • Pentonic’s individual • Strongly believes in • Consistently endeavored plastic wrapper packaging diversity in the workforce to practice good has been consciously and has ~700 female Corporate Governance substituted with paper employees at the Gujrat • Believes su
Slide 19: Financial Snapshot
L NC lincpen.com LINC Financial Snapshot. 18
Slide 20: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation. FCF VS DIVIDEND PAYOUT 4,723 52.0% 3,835 3,317 ₹ Lacs • Steady increase in Free Cash Flow 2,044 34.0% 32.9% • Consistent Dividend Pay-out track record of greater than 30% 1,317 12.0% 534 267 268 (Other than Covid years due to cash conservation). 223 0.0% FY18 FY1
Slide 21: Profit & Loss Summary
Profit & Loss Summary. ₹ Lacs Particulars FY18 FY19 FY20 FY21 FY22 Operating Income 33,189 36,694 39,699 25,666 35,496 Growth (%)3 -5.0% 10.6% 8.2% -35.4% 38.3% Gross Profit 7,232 7,434 9,805 5,753 8,441 Gross Profit Margin 21.8% 20.3% 24.7% 22.4% 23.8% Operating EBITDA 2,577 2,539 3,826 1,017
Slide 22: Balance Sheet Summary
Balance Sheet Summary. ₹ Lacs Particulars FY18 FY19 FY20 FY21 FY22 Net Worth 12,077 12,337 13,697 13,471 14,285 Short Term Loans 4,848 3,813 2,352 812 299 Long Term Loans 1,710 2,392 2,223 - - Gross Debt 6,558 6,205 4,575 812 299 Cash & Cash equivalent 11 11 13 14 9 Net Debt 6,547 6,194 4,5
Slide 23: Ratio Summary
Ratio Summary. ₹ Lacs Particulars Ratios FY18 FY19 FY20 FY21 FY 22 Net Debt/Equity 0.54 0.50 0.33 0.06 0.02 Solvency Ratios Net Debt/Op EBITDA 2.54 2.44 1.19 0.78 0.13 EBIT/Interest 3.57 2.76 5.26 -0.39 15.81 Current Ratio 1.74 1.68 1.85 1.92 2.14 Fixed Asset Turnover 5.33 5.15 5.15 3.43 4.63
Slide 24: Shareholding Pattern
Shareholding Pattern. 27.4% Promoters Mitshubishi Pencil Co Ltd 0.3% IEPF 58.70% 0.2% NRI, FII etc. 13.5% Other Public As on 31st March 22 23
Slide 25: Why Linc?
Why Linc?. Education sector experiencing Strong Balance Sheet with very strong tail winds in India; low leverage hence demand for company’s products will continue to grow Presence over all categories – Strong in-house manufacturing Roller Pen, Gel Pen & Ball Pen - facilities with judicious mix of in
Slide 26: Disclaimer
Disclaimer. The information contained in this presentation is provided by Linc Limited (the “Company”). Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change without
Slide 27: Thank You
Thank You. For further details please contact Director Finance & CFO Investor Relations Advisor N.K.Dujari Email: investors@lincpen.com Phone No.: +91 9830042353 Sanjeev Sancheti Landline: +91 33 68262100 Email: ss@uirtus.in Phone No.: +91 9836244222 26