Tcpl Packaging Limited · NSE:TCPLPACK
Tcpl Packaging — Investor Presentation (April 2023)
51 slides from Tcpl Packaging's investor presentation, Apr 4, 2023
Slide 1: Cover letter to stock exchanges: Updated Investors Presentation
04.04.2023 The Bombay Stock Exchange Ltd The National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, G Block Dalal Street, Bandra Kurla Complex, Mumbai 400 001 Bandra East, Mumbai 400 051 Security Code:-523301 Trading Symbol:- TCPLPACK Dear Sir(s), Re:- Updated
Slide 2: Investor Presentation April 2023
Investor Presentation April 2023
Slide 3: Disclaimer
Certain statements and opinions with respect to the anticipated future performance of TCPL Packaging Limited in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to be correct. Such fo
Slide 4: Company Overview
TSOPL’ packaging limited \ Qircrer) VWWOFILIAS PVT LTD)
Slide 5: At a Glance
At a Glance TCPL – One of India’s leading producers of sustainable packaging solutions for customers across industries 32 YEARS 1,078 (RS. CRORE) 126 (RS. CRORE) 8 ~1,900 Revenue Cash Profit Manufacturing Employees Of proving an array of (FY22) (FY22) units (FY22) packaging solutions 19.8% 15.5% 26.
Slide 6: Mission Statement
Mission Statement Maintain and acquire To be the most customers and admired Indian contribute to their success packaging Company with To drive long term an objective to: profitable growth Get it right the first time every time 5
Slide 7: Business Overview
Business Overview One of India’s largest Folding Carton manufacturers and convertors of paperboard Innovative player in the Flexible packaging industry Close-to-Demand Pan-India Footprint to fast-track growth Caters to Consumer Goods, Food & Beverage, Tobacco, Liquor, Agro-Chemicals, Pharma, and var
Slide 8: Folding Carton Division
Folding Carton Division One of India's leading Carton Packaging companies since 1990s driven by adoption of industry-leading technology Offers wide-range of innovative, sustainable & unique packaging solutions Well-positioned to support diverse customer requirements with PAN India presence and netwo
Slide 9: Flexible Packaging Division
Flexible Packaging Division Innovative player providing versatile and sustainable solutions to customers across industry verticals Offers a variety of products including Pouches, Laminates, Shrink Sleeves, and Wrap Around Labels POUCHES SHRINK SLEEVES WRAP AROUND LABELS BUNDLE PAPER, INNER LAMINATES
Slide 10: Key Milestones – Journey of TCPL Since 1990
Key Milestones – Journey of TCPL Since 1990 Branched into Added Third Crossed $100m sheeted offset Gravure Turnover printing Packaging line First machine Started Haridwar Started Guwahati Incorporated begins production Factory Factory TCPL Innofilms at Silvassa Private Limited 1990 1997 2001 2003 20
Slide 11: Pillars of Strength
Pillars of Strength Equipped with latest state-of- the-art machines Operates multiple Several technical collaborations manufacturing units Developing creative solutions by to ensure efficiency & a dedicated team with proven productivity Vast market network across Long-term connect with capabilities
Slide 12: Diversified Customer Base
Diversified Customer Base Long term relationships with several customers spanning over 32 years 100+ customers ranging across large domestic & 100+ 50+ global corporates Delivers innovative & sustainable packaging solutions Folding Flexible to customers across various industry verticals such as Cart
Slide 13: Marquee Clients
Marquee Clients Electronics, Pharma & Others FMCG FMCG Liquor Food & Beverages “Enables leading companies across industries identify the right packaging solutions” 12
Slide 14: Dedicated Team for Innovative Solutions
Dedicated Team for Innovative Solutions Delivers Specialized Customization Packaging Solution Expert Well equipped Interventions with advanced software Exclusive technical collaborations “Committed to developing best-in-class, high-quality, and cutting-edge packaging solutions” 13
Slide 15: Innovative & Diversified Packaging Solution Provider (1)
Innovative & Diversified Packaging Solution Provider (1) SPECIALITY INKS SPECIALISED LENS EFFECT SECURITY FEATURES – PRINTING, EMBELLISHMENT & CODING Hidden Text/ Images Anti-copy feature Micro Text SUSTAINABLE ALTERNATIVE TO SPECIALTY COATINGS PLASTIC Random alphanumeric Auto paste barcodes coding
Slide 16: Innovative & Diversified Packaging Solution Provider (2)
Innovative & Diversified Packaging Solution Provider (2) Appealing Print Finish Appealing Print Finish Lux Valentina - matt/gloss Afxigra Lens – Carton 3D hologram combination, embossing, double lens registered to +/-0.1mm pass foil stamping. Glued with hot accuracy melt on PE coated board Hidden Im
Slide 17: Pan-India Presence
Pan-India Presence Close-to-demand strategy has enabled TCPL to emerge as one of India’s leading sustainable packaging solution providers *Haridwar Delhi Headquartered in Mumbai, TCPL Noida Guwahati operates 8 manufacturing units *Silvassa across 5 locations & has marketing Kolkata Mumbai offices in
Slide 18: Expanding Global Footprint
Expanding Global Footprint Revenue Break-Up Exports 25% Domestic 75% Export Revenue stood at Rs. 250 crore for FY22 “As a ‘Star Export House’, TCPL offers exemplary value to its clients along with world-class quality and service” 17
Slide 19: Manufacturing Excellence
Manufacturing Excellence Focus on achieving operational excellence by adopting latest technology and practices Established best-in-class equipment across facilities State-of-the-art laboratories at all plants to ensure high GRAVURE PROCESS OFFSET PROCESS quality Ink management systems installed as p
Slide 20: Sustainable Packaging – Renewable, Recyclable and Compostable
Sustainable Packaging – Renewable, Recyclable and Compostable Growing global trend towards eco-friendly packaging solutions fueled considerable growth over the last decade o Ever increasing end-consumer awareness and demand for eco- friendly & recyclable offerings Paperboard is a naturally Renewable
Slide 21: Sustainability Initiatives – Paperboard
Sustainability Initiatives – Paperboard Replacement of plastic in food packaging – Working on replacement of Replacement of plastic in e-commerce – Working on solutions to cut down non-sustainable materials like plastic food trays with biodegradable and on plastics in e-commerce and online delivery
Slide 22: Sustainability Initiatives – Paperboard
Sustainability Initiatives – Paperboard Replacement of plastic film lamination and plastic extrusion for food and other Metallised Board – developed in-house facility to transfer metallised effects barrier packaging on paperboard, giving the same quality and finish as metallised plastic film widely
Slide 23: Investments towards driving higher sustainability in Flexible packaging
Investments towards driving higher sustainability in Flexible packaging TCPL INNOFILMS SPECIALTY CURRENT STRUCTURE NEW STRUCTURE PET InnoPure Adhesive Adhesive PE PE Non - RECYCLABLE 100% RECYCLABLE (Above is an example of a common structure (Above is an example of the use of our in the market) spec
Slide 24: ESG Initiatives
ESG Initiatives Environment TCPL has framed a policy on Business Responsibility aimed to fulfil its Social, Environmental and Economical responsibilities. It covers procedures relating to environment protection in detail and is available on TCPL’s website: TCPL - Business Responsibility Policy Inves
Slide 25: Committed Management Team
Committed Management Team K. K. Kanoria Saket Kanoria Rishav Kanoria S. G. Nanavati Akshay Kanoria Executive Chairman Managing Director Director Executive Director Executive Director Graduate from Kolkata MBA-Finance from George Graduate from University Chartered Accountant & Graduate from Universit
Slide 26: Strong Independent Directors
Strong Independent Directors Sunil Talati Sudhir Merchant Atul Sud Rabindra Jhunjhunwala Deepa Harris Independent Director Independent Director Independent Director Independent Director Independent Director Senior Partner of An Industrialist having An IIM Ahmedabad Partner at Khaitan & Co, a Have ov
Slide 27: Key Growth Levers
Key Growth Levers Scale Pan-India Presence Improving consolidation in a largely Close-to-demand strategy to drive unorganized industry growth Sustainable Packaging Partnership with Customers Solutions Leverage existing relationship to Emerging as a major growth gain higher wallet share opportunity I
Slide 28: COPPL Acquisition – Enters high potential rigid boxes segment
COPPL Acquisition – Enters high potential rigid boxes segment About Creative Offset Printer Private Since both companies have production facilities in close Acquisition Details Limited (COPPL) proximity, TCPL aims to capitalize from key synergies, like cost rationalization & optimization Incorporate
Slide 29: Update on COPPL Acquisition
Update on COPPL Acquisition Indian Smartphone Shipment Indian Smart phone market (Million) • One of the fastest growing markets for 173 smartphones in the World with high value add • Over the years, Indian Smartphone shipment has 150 grown tenfold, exceeding markets such as North America, Latin Amer
Slide 30: Industry Overview
WG. lovely 100° v CONTRA
Slide 31: India: Folding Cartons & Flexible Packaging Industry
India: Folding Cartons & Flexible Packaging Industry India is one of the fastest growing consumers of packaging solutions in the world due to growing domestic consumption trends Paperboard industry is expected to grow at a healthy rate led by significant demand from Consumer, Food & Beverage, Liquor
Slide 32: Packaging Industry Value Chain
Packaging Industry Value Chain Paper Pulp Paper Mill Folding Carton Solutions Provider Folding Carton Packaging Solution Provider Key Raw Feedstock Material to producer packaging Brand Owner Flexible Packaging Key Attributes: Customized Design Innovation Flexible Packaging Solutions Provider Plastic
Slide 33: India: Folding Cartons & Flexible Packaging Industry
India: Folding Cartons & Flexible Packaging Industry Folding Carton Industry is largely Flexible Packaging Industry unorganized 2 2 1,000+ 1 500+ 4-5 4-5 200+ Many Many <200 Small unorganized Revenue (Rs. Crore) Note – Number of Companies with Rs. 900+ crore, 500+ crore, 200+crore and <200 crore rev
Slide 34: Financial Highlights
Financial Highlights 33
Slide 35: Robust Financial Trend – Revenue
Robust Financial Trend – Revenue Revenue (Rs. crore) FY07 to FY22 - 15-year CAGR: 17.3% 1076.0 Till 2017, the Company had reported FY07 to FY17 - 10-year CAGR: 20.0% a robust 10-year CAGR of 20% 889.8 903.8 Challenging external environment 815.8 owing to demonetization, GST and Covid-19 pandemic imp
Slide 36: Robust Financial Trend – EBITDA & Cash Profit
Robust Financial Trend – EBITDA & Cash Profit EBITDA (Rs. crore) EBITDA Margin (%) FY12 to FY22 - 10-year CAGR: 14.5% 16.5% 17.0% 15.5% 15.8% 14.8% 14.3% 14.6% 14.2% 14.5% 12.2% 12.8% Tough macro environment along with venture into Flexible packaging category significantly impacted TCPL's profitabil
Slide 37: Robust Financial Trend – Net Debt:Equity & Capital Expenditure
Robust Financial Trend – Net Debt:Equity & Capital Expenditure Net Debt to Equity 1.87 1.93 Investments over the years have 1.79 1.58 1.66 enabled TCPL to emerge as one of 1.53 1.31 1.3 1.26 India's leading packaging 1.08 1.17 manufacturers Comfortable Net-Debt position – cash flows prudently utiliz
Slide 38: Key Financial Ratios
Key Financial Ratios ROCE 22.7% 23.1% 17.4% 16.3% 16.4% Over the past few years, return 13.8% 15.4% 13.3% 13.3% 12.7% ratios have been below internal expectations due to lower utilization 10.9% of newly commissioned capacities FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Optimal utilizatio
Slide 39: Financial Snapshot
Financial Snapshot Particulars FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Net Worth (Rs. crore) 67 78 88 114 145 178 216 241 269 301 344 Gross Block 251* 280* 328* 392* 478* 585* 426 516 595 632 726 Cash & cash equivalents (Rs. crore) 1 3 3 6 6 11 15 6 16 6 6 Capital Employed (Rs. crore)
Slide 40: Consistent Returns to Shareholders
Consistent Returns to Shareholders Dividend Per Share (Rs.) Dividend Payout Ratio 26.2% 23.9% 20.0% 20.0% 20.4% 20.1% 19.9% 19.5% 19.7% 20.3% 10.00 7.35 7.35 6.00 6.25 10.0% 5.25 3.70 4.00 2.65 2.50 2.00 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 “One of the first companies to announce a
Slide 41: Q3 & 9M FY2023 Results Overview
Q3 & 9M FY2023 Results Overview 40
Slide 42: Q3 FY23 - Key Financial Highlights Consolidated
Q3 FY23 - Key Financial Highlights Consolidated Total Revenues (Rs. Cr.) EBITDA (Rs. Cr.) Cash Profit (Rs. Cr.) 378.1 60.5 50.0 276.5 41.8 34.7 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Shift % (Y-o-Y) 36.7% Shift % (Y-o-Y) 44.8% Shift % (Y-o-Y) 43.9% Margins (%) Margins (%) 15.1% 16.0% 12.6%
Slide 43: Q3 FY23 - Key Financial Highlights Standalone
Q3 FY23 - Key Financial Highlights Standalone Total Revenues (Rs. Cr.) EBITDA (Rs. Cr.) Cash Profit (Rs. Cr.) 366.4 60.3 52.1 274.1 41.6 34.8 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Shift % (Y-o-Y) Shift % (Y-o-Y) Shift % (Y-o-Y) 33.7% 45.1% 49.9% Margins (%) Margins (%) 15.2% 16.5% 12.7% 14
Slide 44: Consolidated P&L Statement
Consolidated P&L Statement Particulars (Rs. crore) Q3 FY23 Q3 FY22 Y-o-Y Change (%) 9M FY23 9M FY22 Y-o-Y Change (%) Revenues from Operations 370.1 271.6 36.2% 1058.8 742.2 42.7% Other Operating Income 8.0 4.9 64.8% 23.5 13.4 75.7% Total Revenues 378.1 276.5 36.7% 1082.3 755.6 43.2% Total Expenditur
Slide 45: Standalone P&L Statement
Standalone P&L Statement Particulars (Rs. crore) Q3 FY23 Q3 FY22 Y-o-Y Change (%) 9M FY23 9M FY22 Y-o-Y Change (%) Revenues from Operations 358.4 269.2 33.1% 1027.4 739.8 38.9% Other Operating Income 8.0 4.9 64.6% 23.5 13.4 75.5% Total Revenues 366.4 274.1 33.7% 1050.9 753.2 39.5% Total Expenditure
Slide 46: Balance Sheet Snapshot
Balance Sheet Snapshot Rs. 424.8 Rs. 965.1 Rs. 949.8 Crore Crore Crore Net-worth Capital Employed Fixed Assets (Gross) Rs. 5.9 Rs. 478.6 Crore 110 Days Crore Cash & Investments Net Debt Net Working Capital Days Note: As on 31st December 2023 45
Slide 47: Summary
Summary One of India’s leading producers of sustainable packaging solutions for customers across industries Versatile & technologically advanced packaging solution provider with PAN-India presence Emerging innovative player in the flexible packaging industry Consistently outperformed growth in under
Slide 48: Annexure
Annexure 47
Slide 49: Market Snapshot
Market Snapshot Key Market Statistics As on 31-March-2023 Shareholding Pattern* BSE/NSE Ticker 523301 / TCPLPACK Others, 6.7% CMP (Rs.) 1408.8 Market Cap (Rs. Crore) 1282.0 Individual - Number of outstanding shares (Crore) 0.91 >1%, 31.7% Face Value 10 52-week High / Low (Rs.) 1736.8 / 671.9 Promote
Slide 50: About Us
About Us TCPL Packaging Limited (TCPL) (BSE: 523301, NSE: TCPLPACK), is one of For further information, please contact: India’s leading producers of sustainable packaging solutions for customers across industries. The Company partners with customers to provide paperboard-based packaging solutions in
Slide 51: Thank You
CORN FLAKES , ad) ey 5 IN e | ew PANDA TOTS COLLECT TM ALL G. wy J ) ~ ‘ i HER Ae »