Uflex Limited · NSE:UFLEX
Uflex — Q4 FY2024 Earnings Presentation
40 slides from Uflex's earnings presentation, May 30, 2024
Slide 1: Exchange cover letter on conference call
UFLEX/SEC/2024/ May 30, 2024 The National Stock Exchange of India The BSE Limited Limited Corporate Relationships Exchange Plaza, 5th Floor Department Plot No.C/l, G-Block 1st Floor, New Trading Ring, Bandra-Kurla Complex Rotunda Building, P J Towers, Bandra (E), Dalal Street, Fort, Mumbai – 400051
Slide 2: UFLEX Limited Earnings Presentation
UFLEX LIMITED Earnings Presentation May 30, 2024 Stock Code: BSE – 500148, NSE- UFLEX Noida, India Common Stock Outstanding: 72mn as of March 31, 2024
Slide 3: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 4: Key Highlights
➢ Chairman’s Message ➢ Industry Trends ➢ Performance Snapshot ➢ Performance and Business Highlights Key ➢ Circularity and sustainability: Highlights Progress in FY24 ➢ Capex Update ➢ Manufacturing Facilities ➢ Recycling Facilities ➢ P&L Summary ➢ Debt Profile ➢ Product Innovation 3
Slide 5: Chairman's Message
Chairman’s Message Mr. Ashok Chaturvedi, Chairman and Managing Director, “FY24 has been a year of consolidation and UFlex has made significant inroads in achieving raw material self-sufficiency by commissioning a PET chips plant at Panipat, India and PCR (post-consumer recyclate) plants in Mexico an
Slide 6: Industry Trends
Industry Trends Domestic International ➢ Demand for flexible packaging films remained subdued ➢ North American market seeing an increase in interest in and competitive intensity heightened PCR films as a result of consumer and industry-led sustainability initiatives ➢ Ongoing oversupply and imports
Slide 7: Performance Snapshot
Performance Snapshot Q4FY24 FY24 Q4FY24 FY24 Revenue Capex Rs. 34,967 Mn. Rs. 135,098 Mn. Rs. 6,308 Mn Rs. 16,348 Mn. (+4.5% QoQ, +3.0% YoY) (-8.6% YoY) (+48.5% QoQ, -2.1% YoY) (+27.9% YoY) EBITDA Rs. 4,364 Mn. Rs. 15,135 Mn Net Debt (+18.7% QoQ, +14.0% YoY) (-19.4% YoY) Rs. 55,686 Mn Rs. 55,686 Mn
Slide 8: Q4FY24 - Performance Highlights
Q4FY24 - Performance Highlights Revenue was Rs. 34,967 Mn (+4.5% QoQ and +3.0% YoY) in Q4FY24 led by volume growth across films and flexible packaging businesses. Adjusted EBITDA was Rs. 4,550 Mn (+6.9% QoQ and +6.3% YoY) in Q4FY24. Adjusted EBITDA margin improved by +30 bps QoQ and +40 bps YoY to 1
Slide 9: Business Highlights
Business Highlights New Product Launches: 9 new product launched across Engineering, Chemicals, Holography and Films Capacity Expansion: Commenced operations of the greenfield PET chips manufacturing facility with an installed capacity of 1,68,000 MTPA at Panipat, India. Flex Films Rus LLC, Russia,
Slide 10: Circularity and sustainability: Progress in FY24
Circularity and sustainability: Progress in FY24 6,638 MT PCR PET waste or 478 million PET bottles recycled during the fiscal 2024 6,964 MT MLP waste recycled in FY24 35.41%+ Increase in recycled/reused raw materials/inputs in our production processes in FY23, from the previous year 100+ product va
Slide 11: Capex Update
Capex Update Backward Integration Projects ➢ Commenced operations of the greenfield PET chips manufacturing facility with an installed capacity of 1,68,000 MTPA at Panipat, India Panipat, India. ➢ The unit will manufacture Poly Condensed Polyester Chips to be used as raw material for the BOPET films
Slide 12: Global manufacturing footprints
Global manufacturing footprints 16 Strategically located state-of-art manufacturing facilities across 5 continents and 9 countries Global Capacity of ~780,000 MTPA: deliver anywhere in the world within 15 Days Americas Capacity % Utilization Plant India (MTPA) (Q4FY24) US 30,000 97.5% Capacity % Uti
Slide 13: Recycling plants across geographies
Recycling plants across geographies Global India Mexico Noida Particulars Capacity(MPTA) Particulars Capacity(MPTA) Post Consumer Recycle Post Consumer Recycle 15,000 9,600 (PCR) PET Chips (PCR) PET Chips Recycle MLP Granules 3,600 Recycle MLP Granules 6,000 Egypt Jammu Particulars Capacity(MPTA) Pa
Slide 14: Standalone P&L Summary
Standalone P&L Summary Particulars (Rs. Mn.) Q4 FY24 Q3 FY24 Q4 FY23 QoQ YoY FY24 FY23 YoY Revenue 16,709 16,589 16,866 1% (1%) 66,515 68,170 (2%) EBITDA 2,250 1,714 2,322 31% (3%) 7,701 7,618 1% EBITDA Margin (%) 13.5% 10.3% 13.8% 313 bps (30 bps) 11.6% 11.2% 40 bps Depreciation and 747 747 674 0%
Slide 15: Consolidated P&L Summary
Consolidated P&L Summary Particulars (Rs. Mn.) Q4 FY24 Q3 FY24 Q4 FY23 QoQ YoY FY24 FY23 YoY Revenue 34,967 33,454 33,935 5% 3% 1,35,098 147,845 (9%) EBITDA 4,364 3,675 3,830 19% 14% 15,135 18,785 (19%) EBITDA Margin (%) 12.5% 11.0% 11.3% 149 bps 119 bps 11.2% 12.7% (150 bps) Depreciation and Amorti
Slide 16: Debt Profile
Debt Profile Debt Breakdown (Rs. Mn) Split of Long-Term Debt Particulars Mar-2024 Dec-2023 Sep-2023 Jun-2023 Long Term 49,620 49,101 47,894 47,642 Domestic 41.6% Overseas Working Capital 15,065 14,550 12,701 11,223 58.4% Short Term 2,511 2,164 1,592 1,433 Total Debt 67,196 65,815 62,187 60,298 Net D
Slide 17: Product Innovation: Chemicals
Product Innovation Chemicals FLEXCRYL 6666 FLEXSEAL WBHS 36 FLEXBOND FB DL 500 Polyester Acrylate for UV, EB coating and ink: An aqueous dispersion, environment-friendly heat A water-based acrylic designed primarily for Acting as a crosslinking agent, it facilitates essential seal coating designed t
Slide 18: Product Innovation: Engineering Machines
Product Innovation Engineering- Machines Asepto Speed 25000 Double head Coating-1650 Automatic Edible Oil Packing Under the Asepto banner, UFlex unveiled next- Utilized for applying various coatings to improve The Vertical Form Fill & Seal machine maintains stringent generation Asepto Speed 25000 Ma
Slide 19: Product Innovation: Holography Films
Product Innovation Holography Films Ventured in Holographic security labels for the Pyrotechnics industry UFlex's holography business launched tailored holographic security labels for counterfeits in Pyrotechnics industry. These advanced labels, custom-designed for a prominent industry leader, incor
Slide 20: Financial Summary
➢ Key Standalone Financial Performance Financial ➢ Key Consolidated Financial Performance Summary ➢ Consolidated Financial Overview 19
Slide 21: Key Standalone Financial Performance
Key Standalone Financial Performance Sales (Vol. MT) Revenue (Rs Mn) EBITDA (Rs Mn) and Margin 14.8% 16.5% 11.9% 11.2% 11.6% 66,516 242,024 231,757 68,170 209,693 194,802 7,701 57,206 176,846 46,554 7,660 7,618 41,524 6,797 6,164 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23
Slide 22: Key Consolidated Financial Performance
Key Consolidated Financial Performance Sales (Vol’s MT) Revenue (Rs Mn) EBITDA (Rs Mn) 14.9% 20.5% 17.2% 14.0% 11.2% 135,098 599,616 599,259 587,118 147,845 132,368 466,390 22,800 20,680 380,744 18,270 89,149 15,135 11,089 74,316 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23
Slide 23: Consolidated Financial Overview
Consolidated Financial Overview Key Financials Ratios FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 EBITDA Margin 12% 12% 13% 13% 13% 13% 15% 20% 17% 14% 12% PAT Margin 3% 4% 5% 5% 5% 4% 5% 9% 8% 3% -5% Net Debt to Equity 0.78 0.65 0.52 0.51 0.47 0.44 0.69 0.62 0.60 0.59 0.78 Net Debt to EB
Slide 24: Business at a Glance
➢ About the company Business ➢ Journey at a Glance ➢ Products 23
Slide 25: An Overview
An Overview Rich Legacy of 40+ Years providing packaging solutions to our partners 1985 16 Established Manufacturing Units <15 days 780,000+ Delivery Time MTPA Global Capacity 150+ 10,000+ Presence across Workforce countries 300 mn+ 72,300 7bn+ 42,600 MTPA 64,330 MTPA Tubes 1,090 mn+ MTPA Aseptic Li
Slide 26: Journey so far: Growing as a Global Player in Flexible Packaging
Journey so far: Growing as a Global Player in Flexible Packaging Added Film capacity Doubling of Aseptic Packaging 2022 capacity in Sanand, Gujarat to 7 Bn in Hungary (BOPP) , Nigeria 2021 (BOPET) & Egypt (BOPP – Line 2); Packs per year Added into Holography business Added CPP & BOPET Line in Added
Slide 27: Long lasting customer relationship
Long lasting customer relationship Length of customer relationships Kolak Truda UPM American Dupont Nestle Snacks Foods P&G Pepsi Co Mondelez Bemis Amcor Huhtamaki Raflatac* Pkg Teijin films 8+ 8+ 8+ 5+ 7+ 10+ 8+ 9+ 6+ 9+ 8+ 9+ The total contribution of top customers in overall operational revenue (
Slide 28: Presence across all verticals of packaging value chain
Presence across all verticals of packaging value chain Packaging Film Business Flexible Packaging Business Aseptic Packaging Business Rotogravure Design PP Granules Holograms Converting Packaging Metalized films Cylinders & Poly Granules & Shims Machines Machines Shims PPC PET Packaging Pouches Prin
Slide 29: One stop shop for flexible packaging solutions
One stop shop for flexible packaging solutions Packaging films - BOPP films | BOPET films | CPP films | Metallized films | Alox coated films | Asclepius PCR films | Specialty films | Polyester Chips Flexible packaging - Flexible Packaging Laminates | Pre-fabricated Pouches | FlexiTubes | Pharmaceuti
Slide 30: Product Portfolio
Product Portfolio Packaging Films Flexible Packaging Holography business Aseptic Liquid Packaging Printing Cylinders Packaging Rolls Engineering Chemicals (Ink & Adhesive) 29
Slide 31: Sustainability
Sustainability ➢ Sustainability at UFlex ➢ Sustainability Initiatives Towards Green Packaging ➢ Pioneer in building circularity in multi-layered plastics 30
Slide 32: Sustainability at UFLEX
Sustainability at UFLEX The Ultimate Destination Sustainability Initiatives towards Green Packaging ▪ First company in the world to recycle mix plastic waste ▪ Ensuring 100% Recyclability of Multi-Layer Packaging with RELAM 250 recycling machine that enables recycling of multi-layer packaging and re
Slide 33: Sustainability Initiatives Towards Green Packaging
Sustainability Initiatives Towards Green Packaging Converting Waste Plastic into Fuel with Pyrolysis Plant Asclepius Green Packaging Film to Create a Circular ▪ Commissioned Pyrolysis Plant, at Noida facility in October 2018 Economy ▪ Can convert 6 tonnes of discarded waste material generated every
Slide 34: Pioneer in building circularity in multi-layered plastics
Pioneer in building circularity in multi-layered plastics 20+ years of experience in building circularity in plastics One of the First in the World to Recycle Mixed Plastic Waste Recycled MLP 0.5mn+ tons so far Invested $20mn+ in FY23 at the Poland and Mexico Plants Recycling Machine Initiatives Tak
Slide 35: Management & Shareholders Information
➢ Management Team Management & ➢ Shareholding Pattern Shareholders Information ➢ Auditors Information 34
Slide 36: Management Team
Management Team Professional Management with an average experience of > 25 years in Business, Corporate, Project & Operational excellence 41 35 Jeevaraj Gopal Pillai, Whole Time Director, Director - Sustainability, Ashok Chaturvedi, Chairman & Managing Director President - Flexible Packaging and New
Slide 37: Management Team
Management Team Professional Management with an average experience of > 25 years in Business, Corporate, Project & Operational excellence 30 28 Chandan Chattaraj, President, Human Resources (India and Global) Amit Shah, Joint President and Chief Marketing Officer, Flexible • Three decades of experie
Slide 38: Shareholding Pattern – March 2024
Shareholding Pattern – March 2024 Shareholding Historical Shareholding Pattern ( in %) Categories Mar ’23 June ’23 Sep ’23 Dec’23 Mar'24 Promoter Group 44.58 44.58 44.58 44.58 44.58 Others 24.83% FIIs and FPIs 14.83 14.68 14.08 14.6 15.04 MF and AIF Promoter 0.21% Group 44.58% CBO, Insurance and FI
Slide 39: Auditors Information
Auditors Information Locations Auditors India MSKA & Associates (BDO) & Vijay Sehgal & Co. Dubai Shah & Al-shamali Associates Egypt MSKA & Associates (BDO) Poland Ernst & Young (EY) USA Crowe LLP Mexico GS&A Hungary Leitner Leitner Nigeria PKF Accountants & business advisers Russia MSKA & Associates
Slide 40: UFlex Limited
UFlex Limited Address: A – 107 - 108, Sector - IV,Noida - 201301 (U.P.), India. Phone No : +91 120 4012345 (30 Lines) | Fax No.: +91 120 2556040 Corporate ID :L74899DL1988PLC032166 Website: www.uflexltd.com IR Contact Mr. Surajit Pal Mr. Manoj Pandey Email: investorrelations@uflexltd.com