Epl Limited · NSE:EPL
Epl — Q3 FY2020 Earnings Presentation
34 slides from Epl's earnings presentation, Feb 7, 2020
Slide 1: Essel Propack Q3FY20 investor notes filing cover letter
-- -- •essel EXTRAORDINARY PACKAGING 7 February 2020 1 Corporate. Service Department l The Listing Department 1 1 BSE Limited 1 National Stock Exchange of India Ltd 1 th 1 25 Floor, Phiroze Jeejeebhoy Towers, 1 Exchange Plaza, Plot no. C/1, G Block, 1 l Dalal Street, Mumbai 400 001 l Bandra-Kurla Co
Slide 2: Essel Propack Limited (EPL) Q3FY20 Earnings Presentation
Essel Propack Limited (EPL) Q3FY20 Earnings Presentation
Slide 3: Safe Harbour
Essel Propack Limited Q3FY20 Earnings Presentation Safe Harbour Certain statements in this presentation concerning our future growth prospects are forward-looking statements. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties that could cause actua
Slide 4: EPL 2.0: Continued Commitment to the Mission
EPL 2.0 Continued Commitment to the Mission
Slide 5: Recap: EPL 2.0 - Executive Summary
Essel Propack Limited Q3FY20 Earnings Presentation Recap: EPL 2.0 - Executive Summary 1 With Blackstone as the new controlling shareholder, our mission is to deliver: “Capital Efficient, Consistent Earnings Growth” 2 Revamped the Board with fit-for-purpose professionals, strengthened the management
Slide 6: Q3FY20 Consolidated Financial Highlights
Essel Propack Limited Q3FY20 Earnings Presentation Q3FY20 Consolidated Financial Highlights: Reported Y-o-Y Revenue growth of 2.4%, EBITDA growth of 20.1% and PAT growth of 32.3% (INR million) Revenue from Operations EBITDA and EBITDA Margins EBIT and EBIT Margins 18.9% 22.2% 12.2% 14.1% 6,944 2.4%
Slide 7: EPL 2.0 Mission: Capital Efficient, Consistent Earnings Growth
Essel Propack Limited Q3FY20 Earnings Presentation EPL 2.0 Mission: Capital Efficient, Consistent Earnings Growth (INR million) Q3FY19 Q3FY20 Growth Revenue 3.7% 6,944 7,108 Growth1 Adjusted EBITDA 1,542 17.3% 1,315 Adjusted EPS (INR) 40.9% 1.44 2.04 ROCE2 16.7% 17.8% 117 bps Capital Net Debt 6,149
Slide 8: Continued Momentum: Strong Revenue and Earnings Growth
Essel Propack Limited Q3FY20 Earnings Presentation Continued Momentum: Strong Revenue and Earnings Growth, with Focus on Prudent Capital Allocation (INR million) YoY Growth % Highest EBITDA 1,542 1,476 17.3% in a quarter1 1,247 1,315 1,337 since inception 1,116 1,086 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY
Slide 9: Renewed Focus on Capital Efficiency is Driving Reduction in Net Debt
Essel Propack Limited Q3FY20 Earnings Presentation Renewed Focus on Capital Efficiency is Driving Reduction in Net Debt Prudent Capex 3,040 Spend.. 1,987 2,305 1,405 957 FY16 FY17 FY18 FY19 9MFY20 Capital Expenditure (INR million) ..Leading to 7,868 Reduction in Net 6,696 5,996 6,149 Debt 3,611 Q3FY
Slide 10: Key Business Highlights – Q3FY20
Essel Propack Limited Q3FY20 Earnings Presentation Key Business Highlights – Q3FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 9
Slide 11: Personal Care has Tripled over Last Eight Years
Essel Propack Limited Q3FY20 Earnings Presentation Personal Care has Tripled over Last Eight years and Continues to be the Major Growth Driver for the Company Personal Care Revenue (INR mm) 17% CAGR 10,273 14% Growth 8,254 8,540 7,518 2,980 FY11 FY15 FY19 9MFY19 9MFY20 Sub-categories Face Care Refer
Slide 12: Personal Care in 9MFY20 Contributed to 45% of Tube Revenue
Essel Propack Limited Q3FY20 Earnings Presentation Personal Care in 9MFY20 Contributed to 45% of Tube Revenue Personal Care Contribution to Tube Revenue 390 bps 45% 42% 41% 9MFY18 9MFY19 9MFY20 Mix shift towards Personal Care to continue, driven by increasing penetration of laminated tubes in the
Slide 13: Continued Growth in Personal Care (1/2)
Essel Propack Limited Q3FY20 Earnings Presentation Continued Growth in Personal Care (1/2) (INR million) AMESA EAP 1.9% CAGR 25.7% CAGR 2,942 2,885 3,053 859 1,215 1,357 9MFY18 9MFY19 9MFY20 9MFY18 9MFY19 9MFY20 Highlights Highlights Personal Care contribution increased to 50.8% in 9MFY20 Person
Slide 14: Continued Growth in Personal Care (2/2)
Essel Propack Limited Q3FY20 Earnings Presentation Continued Growth in Personal Care (2/2) (INR million) Americas Europe 18.3% CAGR 26.3% CAGR 688 891 1,097 2,170 2,539 3,038 9MFY18 9MFY19 9MFY20 9MFY18 9MFY19 9MFY20 Highlights Highlights Personal Care contribution increased to 25.7% in 9MFY20 P
Slide 15: EPL Leads Conversion to Laminated Tubes in Personal Care
Essel Propack Limited Q3FY20 Earnings Presentation Case Study EPL Continues to be the Leader in Driving Conversion to Laminated Tubes in the Personal Care Industry Key Customer Challenges EPL Offered a Better Product Impact Beauty & Case Study: Rigid Bottle to Flexible Laminated Tube Cosmetics Highe
Slide 16: Key Business Highlights – Q3FY20
Essel Propack Limited Q3FY20 Earnings Presentation Key Business Highlights – Q3FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 15
Slide 17: EPL's Global Leadership in Oral Care
Essel Propack Limited Q3FY20 Earnings Presentation EPL has Established Global Leadership in Oral Care with the Segment Demonstrating Steady Long-Term Revenue Growth Oral Care Revenue (INR million) 12% CAGR 13,966 11,764 12,748 9,203 10,352 5,823 FY11 FY13 FY15 FY17 FY19 9MFY20 Customers Market Posit
Slide 18: Key Business Highlights – Q3FY20
Essel Propack Limited Q3FY20 Earnings Presentation Key Business Highlights – Q3FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 17
Slide 19: Continued Growth Momentum in Europe
Essel Propack Limited Q3FY20 Earnings Presentation Continued Growth Momentum in Europe across Oral and Personal Care Categories Europe Revenue (INR million) Revenue CAGR 2,000 1,618 17% Total 1,439 1,500 1,188 14% Oral Care 1,000 Personal 500 61% 62% 62% 17% Care 0 Q3FY18 Q3FY19 Q3FY20 Personal Care
Slide 20: Strong EBITDA Growth and Margin Improvement in Europe
Essel Propack Limited Q3FY20 Earnings Presentation Leading to Strong EBITDA Growth and Margin Improvement Europe EBITDA (INR million) 13.5% 300 485 bps y-o-y 15.0% 200 8.7% 10.0% 219 Margin expansion 6.8% driven by fixed cost leverage; 100 125 5.0% improvement to 80 continue 0 0.0% Q3FY18 Q3FY19 Q
Slide 21: Key Business Highlights – Q3FY20
Essel Propack Limited Q3FY20 Earnings Presentation Key Business Highlights – Q3FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 20
Slide 22: Sustainability: an Intrinsic Value at EPL
Essel Propack Limited Q3FY20 Earnings Presentation Sustainability: an Intrinsic Value at EPL Committed to sustainability by offering innovative solutions across product categories Platina • Fully-recyclable (Code 2) laminate Successful APR (Oral Care) Oral Care • Suitable for oral, hair care and foo
Slide 23: Strong Traction of EPL's Sustainable Offerings with Global Customers
Essel Propack Limited Q3FY20 Earnings Presentation Strong Traction and Acceptability of EPL’s Sustainable Offerings by Leading Global Customers Enabled leading Oral Care player ship world’s first recyclable tube Leading Oral Care Players Recognized EPL’s Efforts and Innovation Capabilities • EPL des
Slide 24: Recap: EPL 2.0 - Executive Summary
Essel Propack Limited Q3FY20 Earnings Presentation Recap: EPL 2.0 - Executive Summary 1 With Blackstone as the new controlling shareholder, our mission is to deliver: “Capital Efficient, Consistent Earnings Growth” 2 Revamped the Board with fit-for-purpose professionals, strengthened the management
Slide 25: Appendix
Appendix
Slide 26: Adjusted EBITDA Grew 17.3% Y-o-Y & Adjusted PAT Grew 41.1%
Essel Propack Limited Q3FY20 Earnings Presentation Adjusted EBITDA Grew by 17.3% Y-o-Y & Adjusted PAT Grew by 41.1% Y-o-Y (INR million) Adjustments EBITDA PAT Reported Q3FY20 numbers 1,579 601 • TSA1 related expenses +40 +30 • Impact of change in accounting standard for leases -77 +11 Adjusted Q3FY2
Slide 27: Q3FY20 Regional Performance – 1/2
Essel Propack Limited Q3FY20 Earnings Presentation Q3FY20 Regional Performance – 1/2 Revenue Split % across Regions EBIT Split % across Regions Europe, Europe, 22% 10% AMESA, 34% AMESA, Americas, 37% 21% Americas, 20% EAP, 24% EAP, 32% • Q3FY20 revenue grew by 2.4% y-o-y (3.7% at constant currency)
Slide 28: Q3FY20 Regional Performance – 2/2
Essel Propack Limited Q3FY20 Earnings Presentation Q3FY20 Regional Performance – 2/2 (INR million) Revenue YoY Growth EBITDA1 Margin AMESA1 2,516 -0.9% 661 26.3% EAP 1,740 1.0% 438 25.2% Americas 1,457 -1.4% 308 21.1% Europe 1,618 12.4% 219 13.5% (1) EBITDA excludes INR 40 mm of TSA related expenses
Slide 29: Q3FY20 Performance – AMESA and EAP
Essel Propack Limited Q3FY20 Earnings Presentation Q3FY20 Performance – AMESA and EAP (INR million) AMESA Particulars Q3FY20 Q3FY19 % change Revenue 2,516 2,538 -0.9% EBITDA1 661 561 18.0% EBITDA % 26.3% 22.1% EBIT1 409 365 12.1% EBIT % 16.3% 14.4% EAP Particulars Q3FY20 Q3FY19 % change Revenue 1,74
Slide 30: Q3FY20 Performance – Americas and Europe
Essel Propack Limited Q3FY20 Earnings Presentation Q3FY20 Performance – Americas and Europe (INR million) Americas Particulars Q3FY20 Q3FY19 % change Revenue 1,457 1,477 -1.4% EBITDA 308 238 29.5% EBITDA % 21.1% 16.1% EBIT 215 165 30.3% EBIT % 14.8% 11.2% Europe Particulars Q3FY20 Q3FY19 % change Re
Slide 31: About EPL
About EPL
Slide 32: EPL: Company Overview
Essel Propack Limited Q3FY20 Earnings Presentation EPL: Company Overview Largest laminated Global Leader in Growing Strong tubes Oral Care emergence in relationships with manufacturer Personal Care marquee FMCG customers ~8 bn Tubes #1 Globally 45% contribution 20+ years Best in class Best in class
Slide 33: EPL Caters to Marquee Customers Across Trillion Dollar Categories
Essel Propack Limited Q3FY20 Earnings Presentation EPL Caters to Marquee Customers Across Trillion Dollar Categories Tube revenue split (9MFY20) Personal Care, 45% 4% 9% Others Pharma 32% 55% Beauty & Oral Care Cosmetics 32
Slide 34: About EPL
Essel Propack Limited Q3FY20 Earnings Presentation About EPL EPL is the largest global specialty packaging company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space. Employing over 3,366 people representing over 25 different nationalities, EPL functions in ten countries th
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