Cosmo First Limited · NSE:COSMOFIRST
Cosmo First — Q4 FY2024 Earnings Presentation
36 slides from Cosmo First's earnings presentation, May 15, 2024
Slide 1: Exchange filing cover letter - Investor Presentation
CFL/SE/2024-25/FEB/07 May 15, 2024 The Manager (Listing) The Manager (Listing) BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1, G Block, Mumbai-400 001 Bandra – Kurla Complex Scrip Code: 508814 Mumbai-400 051 Security ID: “COSMO
Slide 2: A Perspective - May 2024
A Perspective May 2024 Speciality Films, Speciality Chemicals, Rigid Packaging & Petcare Flexible Packaging I Lamination I Labeling I Synthetic Paper I Speciality Chemicals I Plastech I Sunshield I D2C Petcare (Zigly)
Slide 3: Discussion Summary
Discussion Summary Cosmo First – An Overview March 2024: Quarter - Performance Snapshot Strategic Perspective Our Businesses: Films Business Specialty Chemicals Rigid Packaging (Plastech) D2C Petcare (Zigly) Financial Overview ESG Focus Disclaimer Certain statements in this presentat
Slide 4: Company Overview
Company Overview Strong History & Leading Position Global Leader in some Specialty Segments Unique Proposition Established in 1981, Cosmo Films World’s largest producer of thermal Uniquely positioned with a strong blend of Ltd.is the pioneer of BOPP Films lamination films. specialty/semi-speci
Slide 5: Company Overview – Businesses
Company Overview – Businesses Speciality films focused business with target to sell 80% BOPP based volume of speciality films by FY26 (FY24 Speciality 64%) Verticals: Masterbatch (From FY21) Coating Chemicals (From FY22) Adhesive (From FY24) End-to-end rigid packaging vertical (From Q3’FY24) Zigl
Slide 6: Company Overview - Key Milestones
Company Overview - Key Milestones ► Established in 1981, Cosmo Films Ltd.is ►Speciality Chemicals ►2012: 2nd ►2016: CPP line-1 the pioneer of BOPP Films Industry in ►Petcare “Zigly” India; coating line ►2017: 10th BOPP ► Globally amongst top four in BOPP ►2010: 2nd ►2013: 9th line 2022 Specialty fil
Slide 7: Speciality & Semi Speciality Growth and Margins
Speciality & Semi Speciality Growth and Margins Expanding Speciality & Semi-Speciality films portfolio (high margin category) (FY24 64% volume; 11% CAGR over last 5 years). Target 80%+ volume from Speciality & Semi Speciality segment by 2026. 120% 80 70 100% 60 Films Volume (%) Gross Margin/kg 8
Slide 8: Films Margin/Volume & Capacity Utilization
Films Margin/Volume & Capacity Utilization Quarterly movement in Films margin Films Volume Bifurcation 120% 120% 70 100% 60 100% Films Volume (%) 12% 14% 10% 10% 12% Gross Margin/kg 50 80% 65% 64% 61% 66% 64% 40 80% 60% 30 40% 60% 20 20% 35% 36% 39% 34% 36% 10 88% 86% 90% 90% 88% 40% 0% - Q1'FY24 Q2
Slide 9: Core Profitability – Consolidated :: Q4’FY24 and FY2023-24
Core Profitability – Consolidated :: Q4’FY24 and FY2023-24 Q4' FY 2024 FY 2023-24
Slide 10: Performance Snapshot March 2024 Quarter
Performance Snapshot INR Cr Audited Q4 FY 23-24 Unaudited Q3 FY 23-24 Audited Q4 FY 22-23 March 2024 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Quarter Net Sales EBITDA 604 50 641 67 568 46 625 56 601 61 715 74 EBITDA % 8% 11% 8% 9% 10% 10% PBT 3 18 2 10 25 3
Slide 11: Performance Snapshot – Management Commentary Continues
Performance Snapshot – Management Commentary Continues … The Company is strengthening its specialty films division and plans to launch the high value-added sun control film, Cosmo Sunshield, in FY25. During the quarter, the Specialty Chemical subsidiary’s EBITDA has also improved due to enhanced
Slide 12: Strategic Perspective – Why Cosmo First?
Why Cosmo First ? Company with diversified businesses with target 20% CAGR topline growth in next 3 years coupled with commensurate return growth. Strategic Potential high Growth Engines include Speciality Films, Speciality Chemicals, Rigid packaging and D2C Petcare business. Perspective Stron
Slide 13: Strategic Perspective – Why Cosmo First?
Why Cosmo First ? Speciality Chemicals: Masterbatch plant (1st line with 75% captive consumption & 25% outside sale). Coating Chemicals – scale up in coming years. Strategic Complimentary Adhesive business for Packaging, Lamination and Labels – FY24. Target 25%+ ROCE business with business
Slide 14: Business Overview “FILMS Business”
Business Overview “FILMS Business”
Slide 15: Manufacturing Footprints & Offices
Manufacturing Footprints & Offices” Upcoming capacities: CPP line (25000 TPA – H1’FY25) - Waluj, Aurangabad BOPP line (67000 TPA – H1’FY26) – Waluj, Aurangabad
Slide 16: Films Business-India Industry Dynamics & Capex Strategy
Films Business-India Industry Dynamics & Capex Strategy Data Source: AMI/PCI/Other Independent Research and Industry Sources
Slide 17: Films Business - Speciality Films Product Portfolio
Films Business - Speciality Films Product Portfolio PACKAGING FILMS LAMINATION FILMS LABEL FILMS INDUSTRIAL FILMS o Print & Pouching Films o Thermal Lamination & Wet o Pressure Sensitive Label o Synthetic paper o Tape & Textile Films Lamination stock films o Cable Overwrap o Barrier Films o Special
Slide 18: Speciality Films Focus
Speciality Films Focus Grow Speciality portfolio by volume from Key Speciality Products: 64% in FY24 to 80%+ by 2026 Globally among top four players in BOPP Speciality films Speciality Label Films – Second largest player in the World Each 1% shift in Speciality adds EBITDA Thermal Lamina
Slide 19: Focus on R&D and innovation to fuel next phase of growth
Focus on R&D and innovation to fuel next phase of growth Infrastructure Innovative Product Launches High Scratch Resistant Metalized Film: Specially designed for pressure sensitive label stock applications, the film delivers spectacular print performance across a wide variety of printing processes
Slide 20: Films Business – Customers/Brands we Serve
Films Business – Customers/Brands we Serve Company stands as a trusted partner to a prestigious portfolio of large blue chip companies and renowned brands. . . Disclosure: All these are trademarks of respective Owners
Slide 21: Rigid Packaging “Plastech” Business Overview
Rigid Packaging “Plastech” Domestic Industry size of INR 10,000 Cr and growing @ 10%+ End-to-end rigid packaging solutions. Business Overview Specializes in creating customized packaging solutions for a variety of fast- moving consumer goods products. “Rigid Packaging” State-of-the-art machi
Slide 22: Business Overview “Speciality Chemicals Business”
Business Overview Masterbatches Adhesives India Industry size is 500k mt. Adhesive kick started from Industry growing by 11% pa. “Speciality Masterbatch is a concentrated H2’FY23 Global Industry USD 52 billion Chemicals Business” mixture of pigments and additives used for imparting specifi
Slide 23: Business Overview D2C Petcare
Business Overview The Pet care market in India is booming with: • ~25% Projected Annual Growth • ~32MM pets D2C PETCARE • ~1MM annual adoptions UNDER BRAND Indian Petcare Market “ZIGLY” Pet penetration in developed markets like US & UK is more then 68% and growing. 12000 Rs 12500 Cr 10000 8000 6000
Slide 24: Zigly - Business Model
Key Tractions Zigly - Business Model 44 Cr GMV (FY’24) 4.5 cr Retail outlets Own Service Other Current Monthly GMV E-commerce Marketplace Marketplace 39K + website and Customers served with 6k+ Zigly Pro members App One Stop solution retail Private label outlets offering available on 6200+ Acting as
Slide 25: Plan for Petcare Vertical “Zigly”
Plan for Petcare Vertical “Zigly” India Petcare industry INR 5k crores (25% expected growth rate) Smaller families, rising income levels and limited social lives (especially post Covid-19) No large scale organized players in India offering end to end comprehensive solution Average spending o
Slide 26: Financial Overview & ESG
Cosmo First Financial Overview & ESG
Slide 27: FY23-24 - Performance Snapshot
FY23-24 - Performance Snapshot INR Cr Audited FY 23-24 Audited FY 22-23 Audited FY 21-22 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 2391 2587 2742 3063 2824 3038 EBITDA 213 251 396 434 526 620 EBITDA % 9% 10% 14% 14% 19% 20% PBT 43 72 275 304 430 51
Slide 28: Key Financial Snapshot
Key Financial Snapshot Net debt/EBITDA 2.2 times and net debt to equity at 0.4 times – Mar’24 Rewards (Dividend/Buyback) (% to PAT) 800 727 Net Debt (INR Cr) 80% 69% 63% 700 584 561 60% 600 40% 30% 500 438 434 20% 22% 24% 22% 20% 20% 17% 400 20% 303 300 0% Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 M
Slide 29: Shareholding Pattern – March 2024
Shareholding Pattern – March 2024 1.3 Top Non-Promoter Shareholding – 31st March 2024 Promoter and Promoter Group 1 Tejas Balchandra Trivedi 1.00% Institutional 45.04 2 Shivani Tejas Trivedi 0.97% 50.44 Non Institutional Acadian Emerging Markets Small Capp 3 0.72% Equity Fund LLC Cosmo Films ESOP 20
Slide 30: ESG & Sustainability Initiatives - CareEdge “Good” ESG Rating
ESG & Sustainability Initiatives - CareEdge “Good” ESG Rating Product Practices Manufacturing Practices Offering mono-material for ease of recycling. Recycling of manufacturing waste for further film Production (about Designed heat resistant BOPP films replacing 95%) BOPET; giving push to creation
Slide 31: Board of Directors
Board of Directors Mr. H N Sinor Mr. Ashok Jaipuria Independent Director Chairman & Managing Director Over 4 decades experience in public as well as private sector banks A first generation entrepreneur with over forty years like UBI, Central Bank of India and ICICI Bank. of experience in the corpora
Slide 32: Leadership Team
Leadership Team Mr. Kulbhushan Malik Business Head- Cosmo Films Over 24 years of experience in the areas of Business & Strategy Management, Sales and Financial management. Mr. Pankaj Poddar Group Chief Executive Officer Over 27 years of experience in Mr. Sanjay Chincholikar finance, advisory and var
Slide 33: ESG Snapshot
ESG Snapshot Environmental Social Governance
Slide 34: CSR Milestones
Cosmo First > CSR Milestones OR Mesd Alves. Environment & Plantation 43 4O om 200 4 24 46 1 TI scrocm Publication of Educational Resources Health and Community Covid Engagement 170000 3n04 6.5 Lane erongemans 2 toe 43 wewrmaione Our Businesses : ‘www.cosmofirst.com
Slide 35: Awards and Accolades
Awards and Accolades FY 2023-24 • Grabbed the IFCA Star Awards 2023 in the innovative category for “Super Barrier BOPP Film” and “High Puncture Resistant BOPP Film” FY 2022-23 • Featured as one of the Top 10 Companies from India in Forbes Asia Best under A Billion 2022 list • Ranked as one of India’
Slide 36: Thank You
Thank You For more information, please contact: Cosmo First Ltd. Mr. Neeraj Jain Group Chief Financial Officer Email ID: neeraj.jain@cosmofirst.com; Mr. Sachin Goel Investor Relations Email ID: sachin.goel@cosmofirst.com