Time Technoplast Limited · NSE:TIMETECHNO

Time Technoplast — Investor Presentation (March 2022)

61 slides from Time Technoplast's investor presentation, March 2022

  1. Slide 1: Investor Presentation March 2022

    Investor Presentation March 2022 BSE: 532856 | NSE: TIMETECHNO | ISIN: INE508G01029 | CIN: L27203DD1989PLC003240 ©2022, Time Technoplast Ltd., All Rights Reserved

  2. Slide 2: In Memoriam: Mr. Anil Jain

    IN MEMORIAM A VISIONARY WHO SHAPED THE FUTURE. A KARAMYOGI WHOSE ACTIONS PERFORMED LOUDER THAN HIS WORDS. It is with deep sadness and heavy heart, we inform you about sudden demise of Mr. Anil Jain, Co- Founder & Managing Director of the Company on 6th February, 2022. Mr. Jain & his 3 other Co-Promo

  3. Slide 3: Who We Are

    Who We Are LEADING THROUGH INNOVATION AND TECHNOLOGY Leading Global Industrial packaging company First to launch Type-IV Composite Cylinder for LPG Dominant market position with over 60% market and CNG (CNG cascade and on-board application) share in domestic Industrial packaging. World’s in India. 2

  4. Slide 4: Agenda

    Agenda Business / Corporate 01 02 Industry Overview Overview Company Updates & Financial 03 04 Strategic Overview Outlook © 2022 Time Technoplast Limited, All Rights Reserved. 4

  5. Slide 5: Corporate Overview

    01 Corporate Overview © 2022 Time Technoplast Limited, All Rights Reserved. 5

  6. Slide 6: Time Technoplast at a Glance

    Time Technoplast at a Glance Time Technoplast Limited (Time Tech) Strong presence in Asia & MENA Has 14+ recognized brands and Well established inhouse R&D team is a multinational company and one regions with presence in 10 works with >900 institutional of around 30 people having of the leading manu

  7. Slide 7: Board of Directors

    Board of Directors Mr. Bharat Vageria Mr. Raghupathy Thyagarajan Mr. Naveen Jain Mr. Vishal Jain Managing Director Whole Time Director, Marketing Whole Time Director, Technical Additional Director, Non-Executive  Degree in Commerce and a Fellow  Degree in Science and Masters in  Degree in Enginee

  8. Slide 8: Meet The Team

    Meet The Team Key Management Personnel Mr. Sandip Modi Mr. Rajendra Badve Mr. Haresh Raghavan Pillay SR. VP Accounts & Corp . Planning Chief Technology Officer Head- Marketing Total exp: 26 years (Time: 25 years) Total exp: 31 years (Time: 11 years) Total exp: 37 years (Time: 13 years) Mr. Sanjeev S

  9. Slide 9: Geographical Presence

    Geographical Presence Manufacturing Presence in 11 Countries to meet local demand | 20 Manufacturing locations in India Jammu Head Office Baddi Manufacturing Locations United States Pant Nagar Bahrain INDIA India Bhuj Egypt Taiwan Ahmedabad Ratlam Kolkata Thailand Panoli Jambusar UAE Daman (U.T) Sau

  10. Slide 10: Global Marquee Customers

    Global Marquee Customers © 2022 Time Technoplast Limited, All Rights Reserved. 10

  11. Slide 11: Research and Development

    Research and Development Product Re-engineering Continuous efforts towards Process Re-engineering reduction in material and Making processes more energy Dedicated team of more 1% of the total turnover Dedicated lab with state of efficient and using optimized energy consumption. than 30 people for sp

  12. Slide 12: Innovative and Tech Oriented Products

    Innovative and Tech Oriented Products Industrial Packaging Infrastructure Drums & Containers Jerry Cans Conipack Pails HDPE Pipes DWC Pipes Energy Storage Innovative Polymer Products Focus on Innovative & Tech Devices oriented polymer products and have several firsts to our credit- Auto Components a

  13. Slide 13: Value Added Products Under Development

    Value Added Products Under Development Oxygen Cylinder Composite Air Tanks Hydrogen Cylinder Composite Water Heater for Fuel Cells  Carbon Fibre Reinforced  Air Tank for commercial  Type-IV Carbon wrapped  Made with HDPE inner liner Composite Cylinder Type-III vehicles air brake system cylinders

  14. Slide 14: Business / Industry Overview

    02 Business / Industry Overview © 2022 Time Technoplast Limited, All Rights Reserved. 14

  15. Slide 15: Established Products - Industrial Packaging

    Established Products - Industrial Packaging  TimeTech produces Polymer drums / barrels, Jerry cans and Pails for varied packaging requirements.  The Company uses technologies of polymer processing such as blow moulding, injection moulding and extrusion to produce a wide range of products.  These

  16. Slide 16: Industrial Packaging Industry – Market & Development

    Industrial Packaging Industry – Market & Development Market Drivers Emerging Packaging Scenario  Shift from metal to polymer packaging due to technical and operational  Multinational companies looking east for  The global market for industrial advantages and lower costs. lower cost of production.

  17. Slide 17: Established Products - Infrastructure

    Established Products - Infrastructure High Density Polyethylene (HDPE) Pipes & Double Wall Corrugated (DWC) Pipes  TimeTech manufactures valve-regulated lead-  HDPE pipes are capable of handling semi-solid & gaseous  Double layer Pipe with outer layer having corrugation and acid (VRLA ) Batteries

  18. Slide 18: Established Products - Technical & Lifestyle

    Established Products - Technical & Lifestyle Turf & Matting Disposal Bins Auto Components  TimeTech is one of the leading players in the matting  Disposal Bins a necessity for hygienic life and  Rain flaps consists of unique surface formed by segment. TTL has been delivering value for money made

  19. Slide 19: Value Added Products – Intermediate Bulk Containers

    Value Added Products – Intermediate Bulk Containers - IBC Range:  1,000 Ltr capacity  2.7 Lakh units p.a. in India and Capacity:  8.4 Lakh units p.a. overseas Users:  Petrochemicals, Foods, Solvents, etc.  Space Efficiency, Eliminate Waste, Durability and Features: Eco-friendly. IBC’s Market Si

  20. Slide 20: Value Added Products – Composite Cylinders (LPG)

    Value Added Products – Composite Cylinders (LPG) Range:  2kg – 22 kg capacity (largest in the world) Capacity:  1.4 Mn units p.a.  Household, Industrial, Trawlers, Caravans, BBQ, Users: Street Cooking, etc.  Explosion Proof, Non-Corrosive, Light and Efficient, Features: and Low Maintenance.  Re

  21. Slide 21: Value Added Products – MOX Film

    Value Added Products – MOX Film Range:  35 to 320 GSM thickness Capacity:  12,000 MT p.a.  Agriculture, Infrastructure, Packaging, Commercial Users: Vehicles and many more  Tear/Puncture Resistant, 100% Waterproof, Features: Weathering Resistant, UV Resistant, and Chemical Resistant.  The size

  22. Slide 22: Time to Change

    Time to Change We are at inflection point Shifting from Tech based products to High-Tech products with focus on Composites  Composite is a material of future replacing metals in high performance applications  Tectonic shift  Harnessing new growth opportunities in existing business • Launching new

  23. Slide 23: Value Added Products – Type-IV CNG Composite Cylinders

    Value Added Products – Type-IV CNG Composite Cylinders Composite Reinforced Shell Robust due to PU End Caps End Boss Carbon Fiber Wrapping Non-permeable liner Increases Gas 70% Lighter Increases Maintenance Metal free / Corrosion Higher Explosion Proof Carrying Capacity In Weight Fuel Efficiency Fre

  24. Slide 24: Comparative Advantages – Type-IV CNG Composite Cylinders

    Comparative Advantages – Type-IV CNG Composite Cylinders Manufacturer: Manufacturer: Manufacturer: Manufacturer: • Everest Kanto Cylinder Ltd. • Nobody in India • Luxfer Gas Cylinders, • Time Technoplast Ltd., India • Rama Cylinders Pvt. Ltd. (Popular in China only) USA • Indoruss Synergy Pvt. Ltd.

  25. Slide 25: New CNG Business in consonance with Govt.’s policy

    New CNG Business in consonance with Govt.’s policy to expand use of CNG CNG Composite Cylinder Applications  CNG Gas Distribution  On – Board Applications  Cascades  Roof Mounted Bus  Mobile Refueling Units  Chassis Mounted Truck  Compressed Bio-Gas Plant  CAB Mounted Truck  Gas Generators

  26. Slide 26: Type-IV CNG Composite Cylinders – Cascade Application

    Type-IV CNG Composite Cylinders – Cascade Application Why Move Steel ? Move Gas Instead. 70% Lighter Than Type I Cylinders Type IV CNG Cylinder Cascades 2.2 Times More Gas Lighter – Carries 220% More Gas Per Trip Reduce Per kg CNG transportation cost by almost 50% Type IV CNG Cylinder – Metal Free N

  27. Slide 27: Type-IV CNG Composite Cylinders – Cascade Application

    Type-IV CNG Composite Cylinders – Cascade Application Carries DOUBLE the quantity of gas Cuts operations cost by HALF © 2022 Time Technoplast Limited, All Rights Reserved. 27

  28. Slide 28: Type-IV CNG Composite Cylinders – Mobile Refueling Units

    Type-IV CNG Composite Cylinders – Mobile Refueling Units (MRUs) India’s First Mobile Refueling CNG Unit with Type-IV Composite Cylinders Virtual inauguration on June 8, 2021 by Mr. Dharmendra Pradhan- Union Minister for Petroleum and Natural Gas  MRUs act as Mobile CNG Stations  Can be parked anyw

  29. Slide 29: Type-IV CNG Composite Cylinders – Onboard Applications

    Type-IV CNG Composite Cylinders – Onboard Applications Dump Truck Chassis Mounted Truck CAB Mounted Truck Roof Mounted Bus Boat Car 3 Wheeler 2 Wheeler Approved by PESO and Third party (Bureau Veritas – Europe) in May 2021 for Type-IV cylinder for the first time in India. © 2022 Time Technoplast Lim

  30. Slide 30: Market Potential: CNG Cascades

    Market Potential : CNG Cascades New CNG stations allotted in 9th and 10th round 8,181 Number of Cascades required per station 2 Total number of cascades required 16,362 Estimated cost of one cascade (Rs. per cascade) 70,00,000 Total Value of Business in next 8 years (Rs. Cr.) 11,453 Source: Petroleu

  31. Slide 31: Market Potential: Mobile Refueling Units (MRUs)

    Market Potential : Mobile Refueling Units (MRUs) Total existing and committed new CNG stations in India by 2024 7,300 Conversion to MRUs (~30%) 2,200 Estimated cost of one cascade (Rs. per cascade) 60,00,000 Total Value of Business in next 4 years (Rs. Cr.) 1,320 Source: Ministry of Petroleum and Na

  32. Slide 32: Market Potential: Compressed Bio-Gas (CBG)

    Market Potential : Compressed Bio-Gas (CBG) Total CBG plants by 2023 5,000 Number of Cascades required per plant 2 Total number of cascades 10,000 Estimated cost of one cascade (Rs. per cascade) 60,00,000 Total Value of Business in next 3 years (Rs. Cr.) 6,000 Source: Ministry of Petroleum and Natur

  33. Slide 33: Market Potential: Gas Generators for Telecom Towers

    Market Potential : Gas Generators for Telecom Towers Towers- 20% of existing Telecom Towers use gas generators(~1.8 lakhs towers) 32,000 MRUs required (1 MRU for every 4 towers) 8,000 Estimated cost of one cascade (Rs. per cascade) 60,00,000 Total Value of Business in next 4 years (Rs. Cr.) 4,800 So

  34. Slide 34: Market Potential: Onboard Applications – Intracity Bus

    Market Potential : Onboard Applications – Intracity Bus No. of buses on road by 2024 2,10,000 Buses converted to CNG (~40% conversion) 85,000 No. of cylinders per Bus 8 Total No. of Cylinders required 6,80,000 Estimated Cost of 156 litre cylinder (Rs. per cylinder) 78,000 Total Estimated value of Bu

  35. Slide 35: CNG Cylinder: Overall Market Potential

    CNG Cylinder : Overall Market Potential Huge revenue potential given India’s low penetration of CNG fuel stations and CNG vehicles Estimated Total Estimated Total Estimated Business in Market Per Year Conversion % Business (Type-IV) Business (Rs. Cr.) No. of Years (Rs. Cr.) per year (Rs. Cr.) CNG Ca

  36. Slide 36: Company Updates & Strategic Outlook

    Company Updates 03 & Strategic Outlook © 2022 Time Technoplast Limited, All Rights Reserved. 36

  37. Slide 37: What We Have Achieved

    What We Have Achieved  Achieved scale, low revenue  Achieved revenue of ₹3,009 Cr.  Strategic partners worldwide for  Increasing popularity of IBCs due volatility (9% CAGR – 10 y) (USD 412 mn) and PAT of ₹103 Cr. global chemical cos (across 11 to cost effectiveness and better (USD 14 mn) in FY21

  38. Slide 38: How We Achieved It

    How We Achieved It 1 2 3 4 Professional and Thrust on innovation Growth funded from Company is at Inflection experienced promoters, Focus on innovation leading Internal accruals point. management team along to introduction of new Raised equity capital only Moving from Tech towards with established i

  39. Slide 39: What We Have Missed

    What We Have Missed Economies of scale Working capital days Consolidation of Business ROCEs have remained below our target Working capital days have increased in Consolidation of business and disposal of 20%, implying that we haven‟t last few years due to weak economic of non-core business/ assets o

  40. Slide 40: Key Priorities For Next Few Years

    Key Priorities For Next Few Years Maintain Growth Remove Promoters’ Momentum Of The Past Improve ROCE and Enhance Investor Pledge Of Shares and (tapping huge Enhance Shareholders Interaction Disposal of non-core potential in Hi-tech Value business/ assets business) 1 2 3 4 © 2022 Time Technoplast Li

  41. Slide 41: Maintain Growth Momentum Of The Past

    Maintain Growth Momentum Of The Past Our aim is to become a Rs. 5000+ Cr. company by Fiscal 25  Core Business- Industrial Packaging  Huge growth opportunities for global industrial packaging market Projected to grow from USD 58.8 Bn in 2020 to USD 72.6 Bn by 2025 (4.3% CAGR)  Chemicals, Pharmaceu

  42. Slide 42: Improve ROCE and Enhance Shareholders Value

    Improve ROCE and Enhance Shareholders Value ROCE (%) 19.5% 15.7% 16.0% 13.4% 13.5% 9.1% FY18 FY19 FY20* FY21* FY22E FY25E^ Commitment *Operations were impacted due to Covid-19 ^Business from CNG composites and other Hi-tech products not factored  Target to improve the current ROCE of 13.4% in FY20

  43. Slide 43: Improve share of Value Added Products

    Improve share of Value Added Products ₹2,128 Cr. ₹297 Cr. FY16 ₹2,425 Cr. 88% 12% ₹2,413 Cr. ₹596 Cr. FY21 ₹3,009 Cr. 80% 20% ₹4,078 Cr. ₹1,169 Cr. FY25E^ ₹5,247 Cr. Commitment 78% 22% EBITDA Margin range 11-14% 18-22% Established Products Value Added Products Industrial Packaging, PE pipes, Energy

  44. Slide 44: Reduce Working Capital Intensity

    Reduce Working Capital Intensity Inventory Days Debtor Days Creditor Days Net Working Capital Days 131 99 90 88 94 86 75 75 80 70 71 70 84 67 67 69 67 60 51 48 48 50 45 41 FY18 FY19 FY20* FY21* FY22E FY25E^ Commitment *Operations were impacted due to Covid-19 ^Business from CNG composites and other

  45. Slide 45: Dispose of Non Core Business/ Assets

    Dispose of Non Core Business/ Assets  Focusing on core business and dispose of non-core business/ assets - Management has decided to exit from non-core business of Medical equipments, furniture business and Battery division - Accordingly „Assets held for sale‟ of Rs. 60 Cr., other than Battery divi

  46. Slide 46: Capital Allocation Roadmap: Time To Reward Shareholders

    Capital Allocation Roadmap: Time To Reward Shareholders  Internal cash generation remains strong, strengthened with low Fund Flow (₹ Cr.) FY22-25E leverage  Atmanirbhar (self-sufficient): No need for external sources of Profit after tax 1,235 funds Increase in net debt -  Target net debt to equit

  47. Slide 47: Other Key Priorities

    Other Key Priorities Remove promoters’ pledge of shares Enhance investor interaction  Reduction in shares pledged  Appointed an Investor Relation Agency and a - It has reduced from 17.8% of Paid-Up Capital dedicated in-house Investor relation team to only 4.2%. - To increase visibility through att

  48. Slide 48: Way Forward

    Way Forward Chemical production shifting IBCs growing faster Time is the largest and major player from China to other Asian in most countries it operates in countries Recycling efforts to Polymer and Composite encourage sustainability products to gain share from metals © 2022 Time Technoplast Limite

  49. Slide 49: Financial Overview

    04 Financial Overview © 2022 Time Technoplast Limited, All Rights Reserved. 49

  50. Slide 50: Strong Revenue Growth and Stable EBITDA Margin

    Strong Revenue Growth and Stable EBITDA Margin Revenue (₹ Cr.) EBITDA Margin (%) CAGR 8% 5,247 3,567 3,580 3,630 3,105 3,009 15.3% 15.5% 14.8% 14.5% 14.0% 13.0% FY18 FY19 FY20* FY21* FY22E FY25E^ *Operations were impacted due to Covid-19 ^Business from CNG composites and other Hi-tech products not f

  51. Slide 51: Continued Strong Financial Risk Profile

    Continued Strong Financial Risk Profile Interest Coverage Ratio (Times) Total Outside Liabilities / Total Equity (Times) >8.00 5.61 0.90 0.87 5.43 5.34 0.80 4.63 0.69 0.65 4.00 <0.60 FY18 FY19 FY20* FY21* FY22E FY25E^ FY18 FY19 FY20* FY21* FY22E FY25^ Net Debt to EBITDA (Times) Return on Equity (%)

  52. Slide 52: 9MFY22 Financial Snapshot

    9MFY22 Financial Snapshot Total Income (₹ Mn) EBITDA (₹ Mn) and Margin (%) Particulars India Overseas 27.1% 41.9% YoY Growth YoY Growth Volume Growth (22% YoY) 21% 24% 14.1% 26,124 Revenue Growth (27% YoY) 27% 28% 12.6% 20,553 Revenue Contribution 67% 33% 3,687 EBITDA Margin 14.2% 14.0% 2,597 PAT Ma

  53. Slide 53: Segmental Performance

    Segmental Performance Polymer Products* Composite Products** Revenue (₹ Mn) EBITDA Margins (%) Revenue (₹ Mn) EBITDA Margins (%) 15,000 18.00% 24,000 14.0% 14,000 21,000 12.6% 13,000 14.4% 12,000 17,853 12.8% 18,000 25.5% 11,000 30.7% 10,000 YoY YoY 15,000 14,223 9,000 8,256 8,000 Revenue Revenue 12

  54. Slide 54: Strategic Direction towards Value Added Products

    Strategic Direction towards Value Added Products Established Products* Value Added Products** Revenue (₹ Mn) EBITDA Margins (%) Revenue (₹ Mn) EBITDA Margins (%) 30,000 7,500 17.1% 18.00% 15.6% 27,000 13.3% 6,500 24,000 11.8% 5,732 5,500 21,000 20,392 26.2% 30.6% YoY 4,389 YoY 4,500 18,000 16,164 15

  55. Slide 55: Consolidated Income Statement

    Consolidated Income Statement Particulars (₹ Mn) Q3FY22 Q3FY21 9MFY22 9MFY21 FY21 Total Income 9,427 8,354 26,124 20,553 30,087 Total Expenses 8,062 7,225 22,437 17,956 26,178 EBITDA 1,365 1,129 3,687 2,597 3,909 EBITDA Margin (%) 14.5% 13.5% 14.1% 12.6% 13.0% Finance Cost (Net) 229 240 693 740 977

  56. Slide 56: Consolidated Balance Sheet

    Consolidated Balance Sheet Particulars (₹ Mn) H1FY22 FY21 FY20 Particulars (₹ Mn) H1FY22 FY21 FY20 Equity & Liabilities ASSETS Shareholder's Funds Share Capital 226 226 226 Non-Current Assets Other Equity 19,437 18,803 17,925 Fixed Assets Total Shareholder's Fund 19,663 19,029 18,151 Property, Plant

  57. Slide 57: Historical Consolidated Cash Flow

    Historical Consolidated Cash Flow Particulars (₹ Mn) H1FY22 FY21 FY20 Net cash flow from operating activities 1,108 2,570 3,012 Profit before tax & extraordinary items 1,081 1,422 2,367 Depreciation 776 1,510 1,562 Interest 464 977 1,082 Others 34 (25) 91 Working Capital Changes (1,035) (972) (1,466

  58. Slide 58: Capital Market Information

    Capital Market Information Marquee Investors as on 31st December 2021 (% of Total Equity) Promoter NT Asian Discovery Fund 14.5 51% HDFC Trustee 9.0 19% Public Grandeur Peak 2.3 20% 10% Life Insurance Corporation of India 0.9 FIIs and Foreign Mutual Funds/ Companies Total Shareholders > 66,000 Insur

  59. Slide 59: Safe Harbour

    SAFE HARBOUR Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "

  60. Slide 60: For further information, please contact

    For further information, please contact: Mr. Digvijay Singh Rathore Mr. Siddesh Chawan Manager – Investor Relations Christensen Advisory +91 22 7111 9304 +91 22 4215 0210 digvijay.rathore@timetechnoplast.com schawan@christensenir.com © 2022 Time Technoplast Limited, All Rights Reserved. “Time Techno

  61. Slide 61: Global Chemical Industry

    Global Chemical Industry 2019 Chemical Sales By Country: Top 10 1,488 Chemical Sales (€ billion) For the year 2019, World chemical sales (excluding 543 504 pharmaceuticals) stood at €3,669 Bn registering a 168 119 92 76 74 growth of 4.1% from €3,525 Bn in 2018. 65 49 China EU27 USA Japan South India

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