Garware Hi-tech Films Limited · NSE:GRWRHITECH
Garware Hi-tech Films — Q1 FY24 Earnings Presentation
40 slides from Garware Hi-tech Films's earnings presentation, Aug 22, 2023
Slide 1: Regulation 30 cover letter to BSE and NSE
August 22, 2023 The Compliance Manager The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Corporate Relationship Dept., Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Mumbai 400001. Bandra (East), Mumbai 400 051
Slide 2: Investor presentation Garware Hi-tech Films Q1 FY24
SAFETY GLAZING 1 rr ,. ~· Block the heat and ', High heat rejection with crystal clarity harmful UV rays ... Apply Safety Glazing Saving on fuel with better cooUng· by Garware Skin cancer protection by UV rejection·· Safety from glass shattering fl Investor presentation Garware Hi-tech Films Ltd. Q1
Slide 3: Contents
2 Contents 01 Company Overview 02 Business Overview 03 Financial Highlights 04 Annexure March 2023
Slide 4: Safe harbor
ISafe harbor 3 Our discussion may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results
Slide 5: Company Overview
4 Company Overview ~ GARWARE. v::!/ HI-TECH FILMS
Slide 6: Unlocking Sustainable Growth
Unlocking Sustainable Growth 5 I ,--------------------------------------------------] ',! --------------------------------- ': , ----------------------------------- --------,: I Value-Added r------- Manufacturing J! Increasing Global I II Fostering Sustainable J I I1 I I I [ Specialty films : i Exce
Slide 7: Transitioned into a Value-Added Product Business
Transitioned into a Value-Added Product Business 6 IGHFL has ventured into value-added products like Solar Control, Paint Protection and Shrink Film, resulting in better recovery of revenue, and improved margins. FY17 & Prior FY18 & Beyond 20% 17% ➢ Before its transformation, GHFL had a diverse 52%
Slide 8: GHFL Product Positioning: SCF and PPF
GHFL Product Positioning : SCF and PPF 7 I Competitive landscape of Window Films and Paint Protection Films Market >90% Export >90% of Solar Control Films are exported SCF Category wise ~80% TOP 3 industry market share Export ~80% of Paint Protection Films are exported The Tier 1 premium category Su
Slide 9: Business Overview
8 Business Overview ~ GARWARE. v::!/ HI-TECH FILMS
Slide 10: GHFL's Strategic Roadmap
I GHFL's Strategic Roadmap 9 Diversified product portfolio Expanding and diversifying the range of value- Pioneer in Polyester Film manufacturing in India -~ f{i)l. R&D Focus Focusing on R&D to introduce new value-added added and patented products, such as PPF, can products, environment friendly PCR
Slide 11: Diversified Portfolio driving GHFL's Success
I Diversified Portfolio driving GHFL's Success 10 Consumer Product Division (CPD) Industrial Product Division (IPD) Value Added Product Value Added Product Commodity • Automotive Solar Control Film • Shrink Film • Thermal Lamination • Paint Protection Film • Electrical & Electronics • Plain Film • S
Slide 12: Solar Control Films
I Solar Control Films 11 GHFL is only company in the world with backward integration for manufacturing Solar control films Unique Product Features of Garware Solar Control U. S. P. Key Application Industries Block 99% of harmful UV rays, preventing skin Extreme UV resistance damage and interior fadi
Slide 13: Solar Control Films – Key Drivers
I Solar Control Films – Key Drivers Key Growth Drives 12 GHFL Competitive Advantages Product Demand & Related Sector Demand ➢ Reintroduction of GHFL ‘safety glazing’ window film in India, Premium leading brand & Monopoly amidst greater than expected offtake for SCF in the market ➢ Premium Tier-1 bra
Slide 14: Paint Protection Films
I Paint Protection Films 13 Scratch-resistant and durable paint protection films are a result of our robust R&D in developing and perfecting speciality polyester film manufacturing. GHFL Competitive Advantages ➢ A single-source, vertically integrated manufacturing process that produces self-healing
Slide 15: Paint Protection Films – Key Drivers
I Paint Protection Films – Key Drivers 14 Capacity Utilization Key Growth Drives ,-- Last 2-year average --, ( I I I ,------- ( I Q1FY24 -------, I I ,----- Current Quarter ---, ( I I Building Consumer Awareness I 50% 46% I I I I ➢ Indian market is in the early stages of “building awareness”. I I I
Slide 16: Targeting B2C Business Model
I Targeting B2C Business Model 15 Garware Application Studios (GAS) ➢ Detailing and Car care Studios dedicated to installing PPF on new or used vehicles by certified and trained applicators ➢ Targeting direct B2C space by setting up world-class (GAS) ➢ Asset light model across major Tier 1 and Tier
Slide 17: Shrink Films
I Shrink Films 16 Key Highlights THE TRANSVERSE SHRINKAGE OF THIS MONO-AXIALLY ORIENTED ~60% Market ‘Pearl Float’ & Specialty SOLID WHITE CO-POLYESTER Recyclable Share ‘Solid White’ film film HIGH SHRINK FILM EXCEEDS 75% One of largest Commercialisation of new High-shrink PET film is a One of the gr
Slide 18: Shrink Films – Key Drivers
I Shrink Films – Key Drivers 17 GHFL Competitive Advantages Key Growth Drives Wide variety due to consistent R&D ➢ Consistent R&D and innovation, the company today manufactures total 12 variants of the high-shrink film. .. ➢ Global shrink film is expected to grow at a CAGR of 5.4% from 2022 to 2031.
Slide 19: A Robust Global Network
I A Robust Global Network 18 GHFL's global network and unique product diversification provide diversified revenue streams and insulation from regional risks, reducing dependence on any particular market or customer. Global Presence India, USA, UK India 3 Sales Offices l ltd[____ ] 90+ Countries ~-+~
Slide 20: GHFL Manufacturing footprints
~-------------------------------------------------------------, I GHFL Manufacturing footprints ' Fungible Capacity 19 Pioneering the Future of Specialty Polyester Films ➢ Crucial for improving sales mix & responding to stable demand ➢ Enables shift between value-added and commodity products Fully V
Slide 21: Vertically Integrated Chips-to-Films Manufacturing
I Vertically Integrated Chips-to-Films Manufacturing 20 GHFL enjoys complete control due to its vertical integration excellence, streamlining films manufacturing GHFL’s core business in value chain - Natural Resources C__) C_) C_ _ _ _) C Basic Petrochemicals Raw Materials Chips-to-Films Customers J
Slide 22: Vertical Integration: A Strategic Advantage
I Vertical Integration: A Strategic Advantage 21 Unparalleled Competitive Advantages due to its Vertical Integration ✓ Self Sufficient Eliminates dependency on other manufacturers ✓ Raw material Ensures required and continuous availability of or outside vendors. availability quality raw materials en
Slide 23: Innovation-driven R&D
I Innovation-driven R&D 22 Dynamic manufacturing facility with a dedicated R&D department “TPM Excellence Category - A” Award from the Japanese Institute of Plant Maintenance (JIPM) ➢ Separate R&D department recognized by the Department of Scientific & Industrial Research (DSIR), Government of India
Slide 24: BRSR-ESG at GHFL: 3P's of Sustainability
I BRSR-ESG at GHFL : 3P’s of Sustainability 23 Sustainable, Responsible, and Committed PLANET PRODUCT PEOPLE 50% Reduction (By FY 2029-30) 3-5% Reduction (By FY 2029-30) ffl Target to reduce 50% of absolute emissions with Solar Control films reducing 3-5% fuel fflfl consumption and carbon emissions
Slide 25: New Initiatives
New Initiatives 24 • Launch of ‘Safety Glazing’ material in domestic market adhering to norms of CMVR and IS:2553 which is expected to increase sales of window films. • Strengthened our sales force in the domestic, Far East, and European regions by adding experienced sales personnel, in line with ou
Slide 26: Product Launch - Safety Glazing Material
Product Launch - Safety Glazing Material (Solar Control Film) 25 I Safety Glazing films can now be used on your car windows to ensure better visibility and enhanced safety after amendments in Central Motor Vehicle Rule allowing the use of window tint Indian domestic market is highly Product Launch H
Slide 27: Financial Highlights
26 Financial Highlights ~ GARWARE. v::!/ HI-TECH FILMS
Slide 28: Message from the CMD
I Message from the CMD 27 "GHFL has embarked on a major transformation journey with speciality films, expanded distribution channels and a customer-centric approach at its core. Building on the initiatives undertaken a few years ago, the company has effectively positioned itself as a leading manufac
Slide 29: Resilient performance in a challenging environment
I Resilient performance in a challenging environment 28 Consolidated Revenue* EBITDA EBITDA Margin PAT EPS Q1 FY24 Rs. 380 cr Rs. 72.7 cr 19.15% Rs. 43.7 cr 18.81 Q1 FY23 Rs. 370 cr Rs. 70.7 cr 19.11% Rs. 44.5 cr 19.17 +2.7% YoY +2.9% YoY +4 bps -1.9% YoY L----------------------------------- *Busine
Slide 30: Quarterly Financial Performance – Q1 FY24
I Quarterly Financial Performance – Q1 FY24 29 :;.:.; --- - ---------, Revenue +8.8% Comments J ---- • Sales for quarter Q1FY24 stood at Rs 380 crores, up by 8.8% QoQ and up by 2.7% YoY. • This increase was driven by a multifold increase in the volume of the PPF business in export and domestic marke
Slide 31: Stable Performance Metrics
I Stable Performance Metrics 30 Revenue from Operations EBITDA PAT (INR crores) 23.6% 12.7%12.8% (INR crores) 21.3% 400 220(INR crores) 11.6% 13.0% 18.8% 18.7% 350 20.0% 9.3% 167 166 11.0% 1,438 16.1% 277 269 300 170 8.6% 1,303 234 126 9.0% 15.0% 250 948 925 989 833 10.6% 173 200 120 7.0% 153 82 86
Slide 32: Debt Profile
I Debt Profile 31 Total Debt breakdown Net Debt (INR Crores) Key Aspects as of June 30, 2023 114 Particulars INR Crores --. ➢ Moved to zero net debt and improved balance 29 19 sheet over the years Long Term 47.52 -237 -91 -117 -296 Short Term 60.82 ➢ Debt prepaid by Rs 25 cr in June and 25 cr in Jul
Slide 33: Annexures
32 Annexures ~ GARWARE. v::!/ HI-TECH FILMS
Slide 34: Leadership: Our Pillars
I Leadership : Our Pillars 33 Driving Growth, Excellence and Innovation at GHFL ▪ Graduated from Dulwich College, a prestigious institute in England and studied Senior Business Management course at the University of Edinburgh ▪ Has held prestigious posts such as President - Maharashtra Chamber of Co
Slide 35: Product Division Summary CPD
I Product Division Summary 34 CPD Consumer Product Division Automotive Solar Paint Protection Safety Architectural Control Film Film Film Film ➢ GHFL manufactures ➢ Leveraging 6+ decades of ➢ Polyester safety films provide ➢ GHFL produces a range of automotive films with expertise in polyester high
Slide 36: Product Division Summary IPD
I Product Division Summary 35 IPD Special Industrial Product Division (IPD) Shrink Film Electrical & Electronics Release Liners ➢ GHFL produces shrink films for ➢ Electrical and Electronics specialty ➢ Release liners are a specialty film wrapping and labeling plastic films are widely used in various
Slide 37: Product Division Summary Commodity IPD
I Product Division Summary 36 Commodity Industrial Product Division (IPD) Packaging & Lidding Thermal Lamination Plain Film Metalized Film Film ➢ They type of specialty films that are ➢ Plain films offer excellent ➢ Packaging & Lidding Films are ➢ GHFL produces custom designed to provide heat insula
Slide 38: Growth Oriented Capex completed
I Growth Oriented Capex completed 37 Key CAPEX .. ____ J INR 270 crores (FY21 – FY23) ~ Completed in 2 tranches J • Tranche 1 INR 135 Crores Upgradation of Manufacturing Facilities • Setup of New PPF Line of 300 LSF p.a. CAPEX (INR crores) • Setup of New Metallizer 3,400 MT p.a 126 Tranche 2 CAPEX R
Slide 39: Profit and Loss Summary
I Profit and Loss Summary 38 Consolidated In Rs. Crores Quarter Ended Year Ended Particulars 30.06.2023 31.03.2023 30.06.2022 31.03.2023 (Unaudited) (Audited) (Unaudited) (Audited) Revenue from Operations 379.7 349.0 369.9 1438.0 Other Income 8.9 17.1 8.5 42.16 Total Income 388.6 366.1 378.4 1480.2
Slide 40: Thank You
39 Thank You Garware Hi-Tech Films Limited. Ernst & Young LLP CIN: L10889MH1957PLC010889 Investor Relation Advisory Ashish Samal Vikash Verma Sumedh Desai ashish.samal@garwarehitech.com Vikash.Verma1@in.ey.com Sumedh.desai@in.ey.com cs@garwarehitech.com ~ GARWARE. v::!/ HI-TECH FILMS
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