Uflex Limited · NSE:UFLEX
Uflex — Q2 FY2025 Earnings Presentation
58 slides from Uflex's earnings presentation, Nov 18, 2024
Slide 1: Exchange cover letter on earnings call
UFLEX/SEC/2024/ November 18, 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 – 40
Slide 2: UFLEX Limited Earnings Presentation
UFLEX LIMITED Earnings Presentation November 18, 2024 Stock Code: BSE – 500148, NSE- UFLEX Noida, India Common Stock Outstanding: 72.2mn as of September 30, 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 ➢ Capex Update ➢ Packaging Films Production volume Highlights ➢ Financial Summary ➢ Sustainability & circularity ➢ Product Innovation ➢ Business at a Glance ➢ Management & Shareholders
Slide 5: Chairman's Message
Chairman’s Message Mr. Ashok Chaturvedi, Chairman and Managing Director, “We are pleased with the robust growth in sales volume, revenue, and normalized EBITDA for the second consecutive quarter of FY25. The planned commissioning of our aseptic packaging facility in Egypt in FY26 is a key milestone
Slide 6: Industry Trends
Industry Trends Domestic International ➢ Rise in flexible packaging films sales volumes and ➢ Demand for PCR films to rise in Europe with their plan to improved realization. implement new EPR schemes for food products other than the quick-commerce and take-away food in CY25. ➢ Flexible packaging pro
Slide 7: Performance Snapshot
Performance Snapshot Q2FY25 H1FY25 Q2FY25 H1FY25 Revenue Capex Rs. 38,532 Mn Rs. 75,357 Mn Overall Rs. 4,128 Mn Overall Rs. 6,930 Mn (+4.6% QoQ, +13.7% YoY) (+13.0% YoY) Project Rs. 6,290 Mn Project Rs. 3,488 Mn Domestic: 45% Domestic: 44% International: 55% International: 56% Net Debt Norm. EBITDA*
Slide 8: Q2FY25 - Performance Highlights
Q2FY25 - Performance Highlights Revenue was Rs. 38,532 Mn (+4.6% QoQ and +13.7% YoY) in Q2FY25 led by volume growth and improved price realization in packaging films. The higher prices of the packaging films impacted margins of the packaging business due to lag effect. Normalized EBITDA was Rs. 4,38
Slide 9: Capex Update
Capex Update ➢ Incurred total project capex of Rs 3,488 Mn during the quarter, with major allocation to the four projects: Capex in Q2 FY25 a) Egypt: Rs. 1,081 million allocated for the virgin PET chips line with a capacity of 2,16,000 MTPA. b) Egypt: Rs. 547 million allocated for the aseptic packag
Slide 10: Packaging Films Production Volume Across Geographies
Packaging Films Production Volume Across Geographies Geographic % contribution to total Capacity, Production and Utilization Production volume change packaging film production vol. Q2 FY25 India Dubai Egypt Nigeria CIS Poland Hungary USA Mexico 10% 7% 24% QoQ YoY 9% Capacity Q2 FY25 Production (Util
Slide 11: Packaging and Chemicals Production Volume
Packaging and Chemicals Production Volume % breakdown of production vol. by Capacity, Production and Utilization Production volume change packaging products & chemicals Liquid packaging Flexible packaging Chemicals (Inks & Adhesives) Q2 FY25 25% 31% 45,218 MTPQ Capacity Q2 FY25 Production (Utilizati
Slide 12: Global Manufacturing Footprints
Global Manufacturing Footprints 16 Strategically located state-of-art manufacturing facilities across 5 continents and 9 countries Overall global capacity of 1 million+ MTPA: ready to deliver anywhere in the world within 15 days Americas India Plant Capacity (MTPA) Capacity Plant US 30,000 (MTPA) Me
Slide 13: Integrated Manufacturing Capacities Across Geographies
Integrated 1 Manufacturing Capacities Across Geographies Extensive suite of products in every region we operate Resins & molding Base packaging films Value add. p. films Value added products 2,40,300 MTPA 6,18,160 MTPA 2,45,600 MTPA Locations (Capacities rMLP Chemicals Aseptic data as of vPET rPET G
Slide 14: Growth Potential: Flexible Packaging and Packaging Films
Growth Potential: Flexible Packaging and Packaging Films GDP per capita Consumption GDP @current Other Other @current price Per Capita of Product Product Population price Types , Types , Country (US$ per virgin polymer (Million) 2024 (Trillion US$) 25, 12% Pouches, 3.1, 14% capita) 2021-22 62, 30% 2
Slide 15: Evolving Business Landscape of Packaging and Packaging Films
Evolving Business Landscape of Packaging and Packaging Films 01 02 03 STEADY FMCG COMMODITY ECONOMIC DEMAND PRICE TREND GROWTH Steady economic Gradual uptick in rural Raw material prices growth amidst global demand as urban lags surge in Q1 FY25, challenges normalized by August 14
Slide 16: Macro Economic Environment
Macro Economic Environment Global outlook resilient although with some moderation India continues to sustain its momentum Real GDP growth (YoY) 7.7 Real GDP growth (YoY) 8.2 3.7 7.2 2.4 7.0 2.1 6.5 1.4 3.3 3.2 1.7 1.8 2.5 2.8 0.5 0.8 5.2 4.8 World Advanced US Euro Area China Economies FY19 FY23 FY24
Slide 17: Evolving Consumption Trends
Evolving Consumption Trends Strong fall in both value & volume growth Volume: Rural remain steady while steep fall in urban Rainfall status: +8% LPA (1st Jun’24 – 30th Sep’24) FMCG growth % FMCG volume growth % in Rural & Urban 9.5% 8.9% 11.0% 6.5%6.8% 6.7%7.0% 5.7% 7.9% 8.1% 4.1% 6.1% 5.8% 6.2% 6.0
Slide 18: Price Trend: BOPP drops sharply, BOPET remains steady
Jan-23 98.5 135.5 Feb-23 99.8 145.0 Mar-23 97.5 129.0 Apr-23 101.0 115.5 May-23 108.5 126.2 Jun-23 101.6 123.8 Jul-23 100.3 121.4 Aug-23 103.3 129.3 Sep-23 98.3 129.1 Oct-23 96.3 112.0 Nov-23 92.8 110.7 Dec-23 92.9 106.0 Jan-24 94.0 109.0 Feb-24 92.2 113.0 Mar-24 94.3 119.3 Apr-24 93.8 122.1 May-24
Slide 19: Financial Summary
➢ Key Standalone Financial Performance Financial ➢ Key Consolidated Financial Performance Summary ➢ Consolidated Financial Overview
Slide 20: Standalone P&L Summary
Standalone P&L Summary Particulars (Rs. Mn.) Q2 FY25 Q1 FY25 Q2 FY24 QoQ YoY H1 FY25 H1 FY24 YoY Revenue 19,690 18,741 16,506 5.1% 19.3% 38,430 33,218 15.7% EBITDA 2,152 2,233 1,681 (3.6%) 28.0% 4,384 3,737 17.3% EBITDA Margin (%) 10.9% 11.9% 10.2% (98 bps) 74 bps 11.4% 11.2% 16 bps Depreciation and
Slide 21: Spotlight on Key Financials over the year (standalone)
Spotlight on Key Financials over the year (standalone) Sales (Vol. MT) Revenue (Rs Mn) EBITDA (Rs Mn) and Margin 14.8% 16.5% 11.9% 11.2% 11.6% 11.4% 258,220 68,170 231,757 66,516 209,693 57,206 194,802 176,846 46,554 7,701 38,430 7,660 7,618 41,524 132,557 6,797 6,164 4,384 FY20 FY21 FY22 FY23 FY24
Slide 22: Consolidated P&L Summary
Consolidated P&L Summary Particulars (Rs. Mn.) Q2 FY25 Q1 FY25 Q2 FY24 QoQ YoY H1 FY25 H1 FY24 YoY Total Revenue 38,532 36,825 33,895 4.6% 13.7% 75,357 66,677 13.0% Expenditure 34,409 32,422 29,836 6.1% 15.3% 66,831 59,581 12.2% Normalized EBITDA 4,383 4,652 4,081 (5.8%) 7.4% 9,035 7,295 23.9% Norma
Slide 23: Spotlight on Key Financials over the year (consolidated)
Spotlight on Key Financials over the year (consolidated) Sales (Vol. MT) Revenue (Rs Mn) Norm. EBITDA (Rs Mn) and Margin Packaging Packaging Films Domestic International 14.9% 20.5% 17.1% 14.0% 11.9% 12.0% 599,259 587,046 599,616 147,845 132,368 135,098 466,390 380,744 89,149 325,316 9,035 58% 75,35
Slide 24: Revenue Split (consolidated)
Revenue Split (consolidated) Q2FY25: Revenue split as % of total revenue Q2FY24: Revenue split as % of total revenue Packaging, Packaging, 26.7% Packaging Packaging 30.9% films, 64.5% films, 59.4% Rs. 38,334 Rs. 33,694 Million Engineering, Million Engineering, 2.4% 1.9% Others VAP, Others VAP, 5.9%
Slide 25: Q2 FY25 EBITDA Bridge
Q2 FY25 EBITDA Bridge Normalized EBITDA Bridge (Q2FY24 vs Q2FY25) EBITDA improvement led by packaging film volume growth, better realizations and strategic product mix. Increase Decrease Total E ITD 2F 24 evenue O ower uel Emp exp Other exp E ITD 2F 2 Exch der Norm E ITD 2F 2 • Revenue increased by
Slide 26: Q2 FY25 EBITDA to Normalized PAT
Q2 FY25 EBITDA to Normalized PAT EBITDA to Normalized PAT (Q2FY25) BASIC EPS Q2FY25 Weighted Av. No. of shares (millions) 72.2 Normalized earnings per share1 Rs 3.88 1. Normalized earnings per share based on adjusted net income excluding exceptional items related to Nigeria, Egypt & Mexico currency
Slide 27: H1 FY25 EBITDA Bridge
H1 FY25 EBITDA Bridge Normalized EBITDA Bridge (H1FY24 vs H1FY25) Increase Decrease Total E ITD 1F 24 evenue O ower uel Emp exp Other exp E ITD 1F 2 Exch der Norm E ITD 1F 2 • Revenue increased by 13.0% YoY, driven by improved pricing and 10.7% volume growth and better packaging film pricing. • Impr
Slide 28: Consolidated Debt Profile
Consolidated Debt Profile Debt breakdown Split of total debt as of Sep 2024 Particulars (Rs. Mn) Sep-2024 Jun-2024 Mar-2024 Dec-2023 Long Term 54,952 52,040 49,620 49,101 Working Capital 14,477 15,040 15,065 14,550 Rs. 69,557 Short Term 128 2,266 2,511 2,164 Working capital Million 20.8% Total
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet As on 30th As on 31st As on 30th As on 31st Particulars (Rs. Mn.) Particulars (Rs. Mn.) Sep 2024 Mar 2024 Sep 2024 Mar 2024 Assets Equity and Liabilities Non-current assets Equity Property, plant and equipment 74,207 76,598 Equity Share Capital 722 722 Capital work-in-prog
Slide 30: Consolidated financial overview (1/2)
Consolidated financial overview (1/2) Key Financials Ratios FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 EBITDA Margin 12.2% 12.1% 13.2% 13.8% 13.2% 12.6% 14.9% 20.5% 17.2% 12.7% 11.2% Normalized EBITDA margin 12.2% 12.4% 14.5% 14.2% 13.1% 12.7% 14.7% 20.0% 17.1% 14.0% 11.9% PAT Margin 3.4
Slide 31: Consolidated financial overview (2/2)
Consolidated financial overview (2/2) Key Financials Ratios FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Net Debt to Equity 0.78 0.65 0.51 0.50 0.44 0.42 0.67 0.61 0.59 0.59 0.78 Net Debt to EBIDTA 3.08 2.68 2.08 2.01 1.95 1.80 2.84 1.84 1.74 2.34 3.68 Net Debt to Normalized 3.07 2.62 1.89
Slide 32: Project Plastic Fix: Paving the way to a circular, greener, and sustainable future
At UFlex, circular economy innovations such as packaging Film: “ASCLEPIUS ”, made of 100% PCR PET (rPET) chips, and injection molding items made from recycled MLP granules, are paving the way for a more sustainable and greener tomorrow. ➢ Vision of circularity Project Plastic Fix: Paving ➢ ‘Project
Slide 33: Circularity
Circular vision of UFlex Extended Producer Responsibility (EPR) for Packaging Mechanism Collect Recycle/ Reuse Biodegrade Problem Solution Sustainable Space High C B Govt. Govt. EPR - Guidelines Circularity UFlex Project Plastic Fix Industry Compliance to EPR A Consumer Responsible Disposal Low High
Slide 34: Extended Producer Responsibility Guidelines in India
Extended Producer Responsibility Guidelines in India Under Plastic Waste Management (Amendment) Rules, 2022, the classification of plastics is defined below: • Category I: Rigid plastic packaging. • Category II: Flexible plastic packaging of a single layer/multilayer (more than one layer with differ
Slide 35: Project Plastic Fix Continues to Turn Waste into Wealth
Sustainability: 'Project Plastic Fix’ Continues to Turn Waste into Wealth 5,345 MT PCR PET bottle trash or 385 million PET bottles waste recycled during the first half of current fiscal 2025 3,773 MT MLP waste recycled during H1 FY25. 35.41%+ Increase in recycled/reused raw materials/inputs in our p
Slide 36: Recycling Plants Across Geographies
Recycling Plants Across Geographies Global India Mexico Noida Particulars Capacity(MTPA) Particulars Capacity(MTPA) PCR PET Chips 15,000 PCR PET Chips 9,600 rMLP Granules 6,000 rMLP Granules 6,000 Egypt Jammu Particulars Capacity(MTPA) Particulars Capacity(MTPA) PCR PET Chips 18,000 rMLP Granules 3,
Slide 37: 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 38: 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 39: Product Innovation Films
Product Innovation Films B-TMA B-TLL Both side heat sealable BOPP film for Ultra Low Coefficient of Friction (COF) & Low Seal Initiation Pharmaceutical (Syringes) application. Temperature (SIT) Transparent Heat Sealable BOPP Film B-TMA packaging films are designed for high-performance B-TLL is an ad
Slide 40: Product Innovation Films
Product Innovation Films B-TMS-M F-MRC-M Metallized BOPP Film with Excellent Metal BOPET film with a modified release coating and metalized Adhesion for Extrusion Lamination layer B-TMS-M is a metallized BOPP film engineered for optimal F-MRC-M is a high-performance metallized BOPET film designed fo
Slide 41: Product Innovation Flexible Packaging
Product Innovation Flexible Packaging 3D POUCH WITH HANDLE INSIDE GUSSET ELEPHANT EXTRA LONG BAS/RICE 20 KG • A category first in Bio Fertilizer Sector: A premium 5 panel • 100% recyclable with reclosable open commercialized for 20 years pouch offering that offers differentiated shelf presence basma
Slide 42: Product Innovation Flexible Packaging
Product Innovation Flexible Packaging ALSHALAN 2KG PUNJABI AMBER INNER ZIPPER ALSHALAN 2KG JUTE AMBER INNER ZIPPER • Zipper In Roll Form– Innovation offered first time for rice / basmati segment • It is superior in terms of convenience, cost savings, and shelf appeal/ re-close ability factor • No dr
Slide 43: Product Innovation Chemicals
Product Innovation Chemicals Flexcote 985HF 200 for ALU Flex Cote application FLEXCOAT FP BARRIER COAT UF009 High performance Solvent-Based (SB) Adhesive Alu-Alu pharmaceutical packaging foil comprises a three-layer structure: FLEXCOAT FP BARRIER COAT UF009 is an environmentally 25-micron Oriented P
Slide 44: Product Innovation Chemicals
Product Innovation Chemicals Flexgreen NW UV-LED Flexo Inks Flexgreen HFS Screen Coating For IML Application Foil Stamping Flexgreen HFS screen foil stamping coating is a free radical-based, The Flexgreen NW UV-LED ink series is a next-generation, free polychromatic curing foil stamp coating designe
Slide 45: Product Innovation Holography
Product Innovation Holography Decorative Products Segment In line with UFlex strategy to diversify, the holography division has identified a promising new segment in decorative products for a unique holographic calendar application. It incorporates holographic foils or designs, creating a multi-dime
Slide 46: Business at a Glance
➢ An overview Business ➢ Journey so far at a Glance ➢ Customer relationship ➢ One stop shop for packaging solutions
Slide 47: An Overview
An Overview Rich legacy of 40 years providing packaging solutions to our partners 1985 16 Established Manufacturing units 5000+ 1,073,690 MTPA1 Customer base global capacity* Presence across 150+ 10,000+ Workforce countries 1. Metric tonnes per annum (MTPA) ; 2. Post-Consumer Recycled polyethylene t
Slide 48: Journey so far: Growing as a Global Player in Flexible Packaging
Journey so far: Growing as a Global Player in Flexible Packaging Added films capacity Hungary (BOPP) , Doubling of Aseptic Packaging Nigeria (BOPET) 2021 2022 capacity in Sanand, Gujarat to 7 Bn & expanded Egypt Packs per year Diversified into (BOPP – Line 2); Holography business Added CPP & BOPET f
Slide 49: Enduring Customer Relationship
Enduring 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+ Our clients *Note: UPM is pioneer customer of 100% PCR Asclepius Films; All
Slide 50: Presence across all Verticals of Packaging Value Chain
Presence across all Verticals of Packaging Value Chain Process flow diagram Main feed stock Key downstream RM RM for films Packaging Flexible packaging business Aseptic films business packaging Ethylene MEG1 business NGL Ink & Flexi-tubes, BOPP8 Ethane, vPET resin Adhesives Lids and pouches BOPET7 P
Slide 51: Presence across all Verticals of Packaging Value Chain
Presence across all Verticals of Packaging Value Chain Interconnected strengths, boundless possibilities Resins Packaging films Intermediaries Flexible packaging vPET Chips film grade Chemicals (inks and adhesives) BOPET films BOPP films vPET Chips Bottle grade Holography CPP films Metalized films r
Slide 52: Management & Shareholders Information
➢ Management Team Management & ➢ Shareholding Pattern Shareholders Information ➢ Auditors Information
Slide 53: 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 54: 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 55: Shareholding Pattern – September 2024
Shareholding Pattern – September 2024 Shareholding Historical Shareholding Pattern ( in %) Categories Sep ’23 Dec’23 Mar'24 Jun'24 Sep'24 Promoter Group 44.58 44.58 44.58 44.58 44.58 Others 24.36% FIIs, FPIs and FC 14.08 14.6 15.04 15.60 15.20 MF and AIF Promoter 0.27% Group 44.58% CBO, Insurance an
Slide 56: Group structure
Group structure CORPORATE STRUCTURE Integrated Flexible Packaging Solution Provider Outside India India Sales & 68% Special Purpose Cultivation, 59.17% Internation Sales & Sales & Business Marketing Holding Vehicle for Freeze, Drying Plastic Films Holding al Holding Marketing- Marketing- activities
Slide 57: Auditors Information
Auditors Information Locations Auditors India Lodha & Co LLP & Vijay Sehgal & Co. Dubai Shah & Al-shamali Associates Egypt BDO, Khaled & Co Poland BDO USA Crowe LLP Mexico Gutierrez Saldivar & Asociados Hungary BDO Nigeria PKF CIS Unicon JSC Process Auditor for UFlex Limited Group Ernst & Young (EY)
Slide 58: 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