Slide 1: Exchange filing cover letter
Date:16th August 2023 BSE Limited (BSE) National Stock Exchange of India Limited (NSE) Department of Corporate services Exchange Plaza, Phirojee Jeejeebhoy Towers Plot no. C/1, G Block, Dalal Street, Mumbai – 400023 Bandra-Kurla Complex, Bandra (E), Mumbai – 400051 Scrip Code: 500136 Symbol: ESTER D
Slide 2: Investor Presentation August 2023
or Presentation 2023 August
Slide 3: Forward-looking statements disclaimer
Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause actual results to diff
Slide 4: About Us, Q1 FY24 Performance, Ester 2.0
About Us Q1 FY24 Performance Ester 2.0 Investment Thesis Business Overview 3
Slide 5: Business overview and sales mix
Sales Mix (Q1FY24) Diversified business portfolio Polyester Comprehensive product suite Films 90% State-of-the-art manufacturing facilities Global footprint Specialty Polymers 10% Experienced management team Strong Financial profile 4
Slide 6: Company key facts
1985 GURGAON, INDIA #2 Year of Incorporation Corporate Headquarters Business Segments* 500 – KHATIMA, About 50 COUNTRIES SITARGANJ, GURGAON CRISIL A (Industry Outlook – Negative) 164 - HYDERABAD Global Footprint People Credit Rating (Long Term) • PF - Polyester Film; SP - Specialty Polymers (EP - En
Slide 7: Manufacturing locations
Sitarganj Haryana Uttarakhand Gurgaon Khatima Telangana* Corporate Headquarter Manufacturing facility *Commercial production at New BOPET Film plant at Telangana commenced on 20th January 2023 6
Slide 8: We serve about 50 countries
ESTER IMETETSS LT, Ha hot ok eS *
Slide 9: 8
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Slide 10: Q1 FY24 performance
Particulars – Continued Operations (Rs.cr) Q1 FY24 Q1 FY23 % Q4FY23 % ▪ Performance of Film SBU impacted due to challenging external environment (demand Revenues 206 327 (37) 256 (19) supply imbalance), recessionary trends in EU / US adversely affected demand and EBITDA (including Non operating inco
Slide 11: Q1 FY24 results including discontinued operations
Particulars – Continued Operations (Rs.cr) Q1 FY24 Q1 FY23 % Q4 FY23 % Revenues 267 327 (18) 293 (9) EBITDA (including Non operating income) 10 62 (84) 9 10 Margins (%) 3.6 19 (1540 bps) 2.9 +70 bps PAT (Continuing operations) (22) 34 - (18) - Margins (%) (8.4) 10.4 - (6.1) Particulars – Discontinue
Slide 12: Chairman's comments on results
Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “We have had a soft start to the year, largely on expected lines given the challenging external environment. Specialty Polymer business performance was adversely impacted by the recessionary worries persisting in the US
Slide 13: Ester 2.0 Specialty Company
ESTER INDUSTRIES LTD. > Ester 2.0 “Specialty” Company 12
Slide 14: Knowledge, Innovation, Customization, Technology
Knowledge Innovation ESTER Customization 2.0 Technology 13
Slide 15: Ester 1.0 vs Ester 2.0 achievements
Achievements Ester 2.0 Ester 1.0 ▪ Specialty Polymer SBU ▪ Commoditized product o Largely patent protected – Revenues high entry barriers portfolio (FY12-FY16) (FY17-FY23) o High sustainable margins ▪ Limited bargaining power 2.4% CAGR 9.7% CAGR o High growth potential ▪ Low and unpredictable ▪ BOPE
Slide 16: Revenues, EBITDA, margins and PAT
Revenues (Rs.cr) EBITDA (Rs.cr) 1,405 1,213 236 243 928 1,028 1,039 992 189 886 896 824 771 707 108 118 74 71 70 66 41 42 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 EBITDA Margins (%) PAT (Rs.cr) 142 139 24.6% 100 19.1% 17.9% 49 11.1
Slide 17: Debt, ROCE and dividend payout
Debt (Rs.cr) ROCE (%) 335 363 348 304 300 290 31% 267 28% 26% 242 157 183 142 14% 8% 7% 7% 7% 9% 3% 3% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Dividend Payout (%) 37.2% 13% 21% 20% 13.4% 10% 0.0% 37% 0.0% 0.0% 0.0% FY13 FY14 FY15
Slide 18: Shareholding pattern
35.57% 35.71% 35.71% 35.80% Jun 22 Dec 22 Mar 23 Jun 23 64.04% 64.04% 64.04% 64.04% 0.39% 0.25% 0.32% 0.16% 17
Slide 19: Investment thesis
Specialty Polymers - Polyester Films - High Largely IP protected share of value added product portfolio products Rewarding shareholders Scaling up capacities with dividend Strong balance sheet 18
Slide 20: Green initiatives, focus on sustainability
Green Initiatives Focus On Sustainability BIO-BASED Fuel Consumption 7 2 3 PVC FREE fe E . 3 2 wist Wrap / Shrink Film) BIO-BASED Raw Material b, ~~ ie SS PACKAGING MATERIA x Reduction/ Recycling J 4 ® iL REPLACEMENT a lized High Barrier film) bal
Slide 21: Specialty Polymer
oe 4 ¢ ESTER INDUSTRIES LTD. Specialty Polymer 20
Slide 22: Largely IP protected business
Customer High entry retention Largely IP barriers – ensured as High margin Marquee Export protected patent largely business clientele oriented business protected patent protected
Slide 23: Business opportunity: stain resistant carpets
Problem Solution Business Opportunity USA, largest High cost towards carpet stain removal Flexible low cost solution producer of Carpets ▪ Stain marks on (nylon) carpets given ▪ Ester has developed a PET based master & Rugs boasts of spillover / spillage of liquid shortens its batch, which imparts p
Slide 24: Innovative PBT supply to global chemical leader
Regularly manufacturing & supplying Innovative Successful extension of the ‘Manufacture and Supply Polybutylene Terephthalate (PBT) polymers to a global Agreement’ entered with a global chemical leader in April chemical leader 2019 Ester Industries is among the only company globally Achieved sales o
Slide 25: Products and applications
Consumer electronics Polyethylene Terephthalate (PET) Textile – Flame Retardant, Deep dyeable master batches, Cationic dyeable master batch Applications Polybutylene Terephthalate (PBT) Carpets – Stain Resistant Master Batches Products Carpets – Deep Dyeable Master Batch Polyethylene Naphthalate (PE
Slide 26: Specialty Polymer Q1 FY24 results and volumes
Figs. in cr Q1 Q1 Q4 Particulars FY24 FY23 % FY23 % Volumes (MT) Sales Q1FY23 Q1FY24 526 1,082 (51) 878 (40) (Vol's MT) Revenue 20 58 (65) 52 (61) 485 EBIT 7 18 (63) 12 (45) Innovative PBT 79 Margins (%) 33.3 31 +230 bps 23.5 +980 bps ▪ Lower offtake amidst recessionary trends in US economy (major m
Slide 27: Packaging Film Business
ESTER INDUSTRIES LTD. Packaging Film Business 26
Slide 28: Global and domestic scenario
Global Scenario: Domestic Scenario: ▪ Demand growth of 6% - 6.5% ▪ Strong double digit growth rate of 11%-13% pa over past 6 years ▪ BOPET film used in flexible packaging applications will continue to be the key end use sector, accounting for ▪ Low per capita consumption of BOPET; new innovative nea
Slide 29: Film business at a glance
108,000 23,200 #35 MTPA MTPA Years of experience Polyester Film capacity Metallized Polyester Film capacity (including Telangana capacity) (including Telangana capacity) About 67,000 Telangana 50 23% MTPA Plant Export market Share of value-added Polyethylene Terephthalate Commercial production (# of
Slide 30: Value added products and domestic/export mix
Value Added (%) *Film business (excl. chips) Domestic Exports 28 22 22 17 (Rs.cr) FY21 FY22 FY23 Q1FY24 29 30 20 23 EBIT 219 150 72 4.3 71 70 80 77 Margins (%) 31.9 17.8 8.1 2.3 FY21 FY22 FY23 Q1FY24 FY21 FY22 FY23 Q1FY24 Pass through business model for Product mix – despite reduction in raw materia
Slide 31: Film applications and products
White Opaque High Clear Flexible Packaging Applications High Barrier Embossable Barrier Packaging Products Heat Saleable Twist Wrap Embossing Shrink film Anti - Static Lidding Metalized High Barrier Matte Label & Graphics 30
Slide 32: Packaging film Q1 FY24 results
Figs. in cr Particulars Q1FY24 Q1FY23 % Q4FY23 % Sales (Vol’s MT) 12,462 14,813 (16) 14,740 (15) Revenue 178 266 (33) 201 (11) EBIT 4 53 (92) 7 (43) Margins (%) 2.4 19.8 (1740 bps) 3.4 (100 bps) ▪ Excess supply in domestic market post bunching of new capacities coupled with demand deceleration in ex
Slide 33: Ester Filmtech Telangana plant update
▪ Ester Filmtech Limited, a wholly-owned-subsidiary of Ester Industries Limited, commenced commercial production on 20th January 23 at new Polyester (BOPET) film manufacturing plant in the State of Telangana. ▪ Generated revenues worth Rs.64 crore during Q1FY24; volumes of 5,760 MT ▪ Low margins and
Slide 34: Ester Filmtech results
Particulars – Continued Operations (Rs.cr) Q1 FY24 Q4 FY23 Net Sales 63.3 49.1 Other Operating Income 0.4 0.1 EBITDA (4.2) (10.0) Other Non-Operating Income 1.2 0.0 Cash Profit (10.5) (15.9) PBT (16.8) (20.7) PAT (16.8) (20.7) OCI 0.0 (0.1) 33
Slide 35: About Us and contact information
About Us: (CIN :- L24111UR1985PLC015063) Incorporated in 1985, Ester Industries Limited (EIL) is an ISO 9001:2008,ISO 22000:2005,TS16949:2002 certified Company engaged in the manufacture of polyester films, specialty polymers and polyester chips with manufacturing facilities located in Khatima & Sit
Slide 36: Thank You
KK ERS 2. 1 nt tines een a ae (NS. ROC AH Rit) la At ei § OE LTT aL | ‘iy 7 a WSs Seep ~ = ESTER Thank You INDUSTRIES LTD.