Uflex Limited · NSE:UFLEX
Uflex — Non-Deal Roadshow (June 2024)
68 slides from Uflex's roadshow presentation, Jun 24, 2024
Slide 1: Exchange filing cover letter
UFLEX/SEC/2024/ June 24, 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 – 400051
Slide 2: Investor Presentation
UFLEX LIMITED INVESTOR PRESENTATION June 2024 Stock Code: BSE - 500148, NSE - UFLEX Noida, India Common Stock Outstanding: 72mn as of Mar 31, 2024
Slide 3: An overview
An overview Rich legacy of 40 years providing packaging solutions to our partners 1985 16 Established Manufacturing units 5000+ 780,000+ MTPA1 Customer base global capacity Presence across 150+ 10,000+ Workforce countries 7bn+ 72,300 MTPA 5.4 bn+ 64,330 MTPA 300 mn+ 1,090 mn+ PCR PET2 bottles Chemic
Slide 4: 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 5: India packaging landscape
India packaging landscape
Slide 6: Packaging market size
Packaging market size Revenue in $ billion, Packaging market, Global, 2016-2027 Revenue in $ billion, Packaging market, India, 2016-2027 CAGR growth 2016 -2021 2022-2027 160 CAGR growth 2016 -2021 2022-2027 Total Packaging 3.8% 3.9% Total Packaging 9.8% 10.2% 150 1400 Metal 3.2% 2.9% Metal 8.6% 8.8%
Slide 7: Packaging films market size
Packaging films market size Global BOPET1 films market size 2017-2027: ‘000 tons Global BOPP2 films market size 2016-2026: ‘000 tons CAGR Growth % 2017-2022 2022-2027 CAGR growth % 2016-2021 2021-2026 Capacity 6.38% 6.21% Capacity 4.6% 5.4% Production 6.54% 5.03% Production 5.0% 4.3% Consumption 6.0
Slide 8: Growth potential: Flexible packaging and film
Growth potential: Flexible packaging and film 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% 2024 Pouches
Slide 9: Investment proposition
Investment proposition Road ahead India’s largest flexible packaging solutions company Aiming to achieve higher revenues, enhance profitability, and The largest flexible packaging company, with Rs. 135 billion in generate surplus cash flow revenue and Rs. 16 billion in EBITDA, has been catering to f
Slide 10: India's largest flexible packaging & solutions company
1 India’s largest flexible packaging & solutions company FY24 consolidated revenues FY24 consolidated EBITDA Rs. Mn Rs. Mn 160,000 18,000 16,103 140,000 135,098 16,000 14,000 120,000 12,000 100,000 10,000 80,000 7,737 63,671 8,000 7050 60,000 50,067 44,035 6,000 39,755 4,767 4,254 40,000 25,649 26,5
Slide 11: Presence across all verticals of packaging value chain
2 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
Slide 12: Presence across all verticals of packaging value chain
2 Presence across all verticals of packaging value chain Holography Resins Offer services of: Anti-counterfeiting, brand Producer of virgin PET chips (films and bottles grade), aesthetics, textile value addition and brand recycled PET chips (films), recycled MLP granules protections Printing cylinde
Slide 13: PET Resins products and usage
2.1a PET Resins products and usage Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Products Usage vPET Chips vPET Chips rPET Resins rPET MLP 100% PCR content Household Film grade Bottle grade Film Grade Granu
Slide 14: PET chips process flow diagram
2.1b PET chips process flow diagram Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) PET resin process flow diagram Crude oil Preforms Purifies PET Bottles Terephthalic Acid (PTA) Petroleum Polymerization PET
Slide 15: Packaging films products and usage
2.2a Packaging films products and usage Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Products Usage BOPET1 films Metallised films Pouches Tubes Printing & lamination Release films Overwraps (CDs, Packaging
Slide 16: Film manufacturing process flow diagram
2.2b Film manufacturing process flow diagram Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Film manufacturing process flow diagram BOPET film raw material (vPET1 chips & rPET2 chips) Hooper Front-end proces
Slide 17: Flexible packaging products and usage
2.3a Flexible packaging products and usage Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Products Usage Electron beam and Food products Personal products Contraceptives Pharmaceutical Flexo printed rolls Fl
Slide 18: Composition of tubes and pouches
2.3b Composition of tubes and pouches Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Tube composition Pouch composition 1. polyethylene terephthalate (PET); 2. Ethylene vinyl alcohol (EVOH); 5. Silicon oxide
Slide 19: Asepto - Aseptic liquid packaging products and usage
2.4a Asepto - Aseptic liquid packaging products and usage Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Products Asepto smart 78 - Automated and Asepto packaging material Brick packs, Trio packs and pillow
Slide 20: Asepto - Aseptic liquid packaging is a six layered product
2.4b Asepto - Aseptic liquid packaging is a six layered product Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Products Composition of 6 layers of Asepto carton How is an Aseptic carton made BASE SLIM ULTRA
Slide 21: Chemical products and usage
2.5a Chemical products and usage Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Products Usage Radiation curable Water-based(WB) Water-based Ink products Laminating and coating in Folding & mono cartons ink
Slide 22: Water base adhesive & coating process flow diagram
2.5b Water base adhesive & coating process flow diagram Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Process flow diagram – Water base adhesive & coating Flexible packaging Adhesive (Acrylic based, PVA bas
Slide 23: PU adhesive process flow diagram
2.5c PU adhesive process flow diagram Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Process flow diagram – PU adhesive PU SF/SB Glycols adhesive Flexible packaging Petroleum Crude Oil +Acids Diisocynate Rou
Slide 24: Inks process flow diagram
2.5d Inks process flow diagram Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Process flow diagram – Inks Flexo Printing Machine Pigments PIGMENT RED 57:1 / Pigment Blue 15 / Pigment Yellow 13/Carbon Black R
Slide 25: Engineering products and application
2.6 Engineering products and application Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Application Packaging machines Converting machines Specialty products Asepto machines CI Flexo & Rotogravure Inspection
Slide 26: Printing Cylinders products and usage
2.7 Printing Cylinders products and usage Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Products Printing cylinders composition Gravure Printing Cylinders Flexo Plates Flexo Elastomer Plates Rotogravure Cyl
Slide 27: Holography products and usage
2.8a Holography products and usage Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Products Usage Holographic films Textile value Automobiles Hologram Pharmaceutical Ecommerce (Wide web films) addition produc
Slide 28: Holography process flow
2.8b Holography process flow Chemicals Packaging Flexible Aseptic liquid Printing Resins (inks and Engineering Holography films packaging packaging cylinders adhesives) Coating Flexible packaging (for Holo. Embossing) Hologram Holography Carton packaging film UV Holography Embossing Pharma pack BOPP
Slide 29: Global manufacturing footprints (Packaging films)
3.0 Global manufacturing footprints (Packaging films) 16 Strategically located state-of-art manufacturing facilities across 5 continents and 9 countries Global Capacity of 780,000+ MTPA: deliver anywhere in the World within 15 Days Americas India Capacity % Utilization Capacity % Utilization Plant P
Slide 30: Integrated manufacturing capacities across geographies
3.11 Integrated manufacturing capacities across geographies Comprehensive suite of products in each manufacturing location Resin Base films Value added films Value added products 2,40,300 MTPA 6,21,160 MTPA 2,45,600 MTPA Locations (Capacities rMLP Chemicals Aseptic data as of vPET rPET Granul BOPET
Slide 31: Localized supply-chain results in cost-efficient operations
3.2 Localized supply-chain results in cost-efficient operations Centralized procurement in major production facilities ➢ UFlex follows year-long volume contract with the RM suppliers while prefers spot-price for supplying finished goods. This results in 01 lowest manufacturing costs, operational fle
Slide 32: Supremacy in packaging solutions landscape
4.0 Supremacy in packaging solutions landscape Aim to create an environment-friendly sustainable brand with dedicated efforts on Recycling, Re-use and Reducing Waste Business challenges Business requirements Industries ➢ Virgin and recycled PET chips ➢ Packaging film manufacturers ➢ Drinks and bever
Slide 33: Enduring customer relationship
5.0 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;
Slide 34: Proven track record in financial performance
6.0 Proven track record in financial performance UFlex total revenues UFlex normalized EBITDA Rs. Mn Rs. Mn 160000 30000 CAGR +16.1% CAGR +9.8% 140000 147,845 135,098 25000 132,368 120000 22,800 Consolidated revenues Consolidated EBITDA 20000 20,680 100000 18,270 80000 89,149 15000 16,103 74,316 600
Slide 35: 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 P
Slide 36: Circular vision of UFlex
7.1 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
Slide 37: Extended producer responsibility guidelines in India
7.2 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 di
Slide 38: Project Plastic Fix: Achieving sustainable milestones in FY24
7.3 Project Plastic Fix: Achieving sustainable milestones in FY24 6,638 MT PET waste or 478 million PET bottles recycled. 6,964 MT MLP waste recycled. 35.4%+ YoY Increase in recycled/reused raw materials/inputs in our production processes 100+ product variants, 7 facilities Operational since 1995 Le
Slide 39: Circularity vision: Adaptation to a material sciences enterprise
7.4 Circularity vision: Adaptation to a material sciences enterprise UFlex’s four-fold approach to sustainable and eco-friendly packaging is a key unique selling proposition ✓ UFlex Group has been a trendsetter when it comes to sustainable innovation and commitment towards the ‘Circular Economy’. ✓
Slide 40: Innovative ideas in sustainable re-use
7.5 Innovative ideas in sustainable re-use Among the first in the world to recycle mixed plastic waste for which it earned recognition at Davos Recycle Forum in 1995, way ahead of peers from the developed economies Highlights of initiatives taken 01 ➢ PCR recycling infrastructure at Noida is utilize
Slide 41: Recyclable PET Life Cycle
7.6 Recyclable PET Life Cycle Crude oil PTA Performs PET bottles Consumers Garbage Garbage truck Pet / Polyester production + PET Film process PTA Monoetylene Glycol PET / Polyester Petroleum (MEG) PET packaging Recycle PET PET Recycling UFlex buy Post – Waste Separation (rPET) resins Production Con
Slide 42: Recycling plants across geographies
7.7 Recycling plants across geographies Global India Mexico Noida Particulars Capacity(MPTA) Particulars Capacity(MPTA) PCR PET Chips 15,000 PCR PET Chips 9,600 rMLP Granules 6,000 rMLP Granules 6,000 Egypt Jammu Particulars Capacity(MPTA) Particulars Capacity(MPTA) PCR PET Chips 18,000 rMLP Granule
Slide 43: Road ahead
8.0 Road ahead Goals Strategy Growth through innovation to create a packaging Continue to be the Enhanced ROCE portfolio with variety of preferred vendor through asset differentiating products for both existing efficiency Enhanced speed-to- and prospective market and proximity to clients customers t
Slide 44: Financials
Financials
Slide 45: Performance Snapshot
Performance Snapshot Q4FY24 FY24 Q4FY24 FY24 Revenue Capex Rs. 34,967 Mn. Rs. 135,098 Mn. Rs. 6,308 Mn Rs. 16,348 Mn. (+4.5% QoQ, +3.0% YoY) (-8.6% YoY) (+48.5% QoQ, -2.1% YoY) (+27.9% YoY) EBITDA Rs. 4,364 Mn. Rs. 15,135 Mn Net Debt (+18.7% QoQ, +14.0% YoY) (-19.4% YoY) Rs. 55,686 Mn Rs. 55,686 Mn
Slide 46: Spotlight on key financial excellence (consolidated)
Spotlight on key financial excellence (consolidated) Sales (Vol. MT) Revenue (Rs Mn) Norm. EBITDA (Rs Mn) and Margin Domestic International 14.9% 20.5% 17.2% 14.0% 11.9% 147,845 132,368 135,098 599,616 599,259 587,118 89,149 58% 466,390 74,316 58% 22,800 60% 20,680 380,744 18,270 16,103 53% 11,089 4
Slide 47: Revenue and cost split (consolidated)
Revenue and cost split (consolidated) Q4FY24: Revenue split as % of total revenue FY24: Revenue split as % of total revenue Packaging, Packaging, 29% 27% Packaging Packaging films, 60% films, 60% Rs. 1,35,098 Rs. 34,967 Million Engineering, 2% Million Engineering, 2% Others VAP, 8% Others VAP, 8% Q4
Slide 48: Consolidated P&L summary
Consolidated P&L summary Particulars (Rs. Mn.) Q4 FY24 Q3 FY24 Q4 FY23 QoQ YoY FY24 FY23 YoY Revenue 34,967 33,454 33,935 5% 3% 1,35,098 147,845 (9%) EBITDA 4,364 3,675 3,830 19% 14% 15,135 18,785 (19%) EBITDA Margin (%) 12.5% 11.0% 11.3% 149 bps 119 bps 11.2% 12.7% (150 bps) Depreciation and Amorti
Slide 49: Consolidated balance sheet
Consolidated balance sheet As on 31st As on 31st As on 31st As on 31st Particulars (Rs. Mn.) Particulars (Rs. Mn.) March 2024 March 2023 March 2024 March 2023 Assets Equity and Liabilities Non-current assets Equity Property, plant and equipment 76,598 72,113 Equity Share Capital 722 722 Capital work
Slide 50: Consolidated financial overview
Consolidated financial overview Key Financials Ratios FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 EBITDA Margin 12% 12% 13% 13% 13% 13% 15% 20% 17% 14% 12% PAT Margin 3% 4% 5% 5% 5% 4% 5% 9% 8% 3% -5% Net Debt to Equity 0.78 0.65 0.52 0.51 0.47 0.44 0.69 0.62 0.60 0.59 0.78 Net Debt to EB
Slide 51: Debt profile
Debt profile Debt breakdown Split of total debt Particulars (Rs. Mn) Mar-2024 Dec-2023 Sep-2023 Jun-2023 Long Term 49,620 49,101 47,894 47,642 Working Capital 15,065 14,550 12,701 11,223 Working capital Rs. 67,196 22% Short Term 2,511 2,164 1,592 1,433 Million Total Debt 67,196 65,815 62
Slide 52: Capex: Investing in tomorrow
Capex: Investing in tomorrow Investing to gain competitive advantage, boost market share and revenue, optimize costs, expand profits and promote long-term value creation FY 2024 capex was Rs. 16,348 million, compared to Capex (Rs. Mn) Rs. 12,777 million in FY 2023 ➢ Egypt: Greenfield PCR PET chips p
Slide 53: EBITDA bridge
EBITDA bridge Normalized EBITDA Bridge (FY23 vs FY24) • Revenue decreased as a result of pricing pressure stemming from supply-demand mismatch in the BOPET and BOPP sectors. • Profit shrinkage was driven by revenue pressure and higher power, and fuel expenses. • Note: The Rs. 968 million related to
Slide 54: FY24 EBITDA to normalized PAT
FY24 EBITDA to normalized PAT EBITDA to Normalized PAT (FY24) BASIC EPS FY24 Weighted Av. No. of shares (millions) 722 Normalized earnings per share1 Rs 2.50 1. Normalized earnings per share based on adjusted net income excluding Exceptional items related to Nigeria & Egypt currency devaluation 1. P
Slide 55: Dividends: Consistent shareholder returns
Dividends: Consistent shareholder returns ▪ Management's commitment to shareholder interests ▪ Delivering tangible and consistent returns to shareholders through dividends Dividend per share (DPS Rs.) Maintain steady Balance Sheet 3.5 3.2 3.0 3.0 2.7 2.5 2.5 Invest for growth 2.0 2.0 2.0 Consistent
Slide 56: Key financial performance (standalone)
Key financial performance (standalone) Sales (Vol. MT) Revenue (Rs Mn) EBITDA (Rs Mn) and Margin 14.8% 16.5% 11.9% 11.2% 11.6% 66,516 242,024 231,757 68,170 209,693 194,802 7,701 57,206 176,846 46,554 7,660 7,618 41,524 6,797 6,164 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY2
Slide 57: Standalone P&L summary
Standalone P&L summary Particulars (Rs. Mn.) Q4 FY24 Q3 FY24 Q4 FY23 QoQ YoY FY24 FY23 YoY Revenue 16,709 16,589 16,866 1% (1%) 66,515 68,170 (2%) EBITDA 2,250 1,714 2,322 31% (3%) 7,701 7,618 1% EBITDA Margin (%) 13.5% 10.3% 13.8% 313 bps (30 bps) 11.6% 11.2% 40 bps Depreciation and Amortization 74
Slide 58: Product Innovation: Chemicals
Product Innovation Chemicals FLEXCRYL 6666 FLEXSEAL WBHS 36 FLEXBOND FB DL 500 Polyester Acrylate for UV, EB coating and ink: An aqueous dispersion, environment-friendly heat A water-based acrylic designed primarily for Acting as a crosslinking agent, it facilitates essential seal coating designed t
Slide 59: Product Innovation: Engineering Machines
Product Innovation Engineering- Machines Asepto Speed 25000 Double head Coating-1650 Automatic Edible Oil Packing Under the Asepto banner, UFlex unveiled next- Utilized for applying various coatings to improve The Vertical Form Fill & Seal machine maintains stringent generation Asepto Speed 25000 Ma
Slide 60: Product Innovation: Holography Films
Product Innovation Holography Films Ventured in Holographic security labels for the Pyrotechnics industry UFlex's holography business launched tailored holographic security labels for counterfeits in Pyrotechnics industry. These advanced labels, custom-designed for a prominent industry leader, incor
Slide 61: Appendix
Appendix
Slide 62: Management & Shareholders Information
➢ Management team Management & ➢ Shareholding pattern Shareholders Information ➢ Group structure ➢ UFlex values
Slide 63: 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 64: 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 65: Shareholding pattern – March 2024
Shareholding pattern – March 2024 Shareholding Historical Shareholding Pattern ( in %) Categories Mar ’23 June ’23 Sep ’23 Dec’23 Mar'24 Promoter Group 44.58 44.58 44.58 44.58 44.58 Others 24.83% FIIs and FPIs 14.83 14.68 14.08 14.6 15.04 MF and AIF Promoter 0.21% Group 44.58% CBO, Insurance and FI
Slide 66: 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 67: Our values
Our values Socio-environmental Sutainability Trust & Respect Upholding that society and environment are Proactively build inclusive and egalitarian cornerstones for sustainability, we support and partnerships with all stakeholders, through the promote inclusive social development and strive virtues
Slide 68: 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 67