Slide 1: Regulation 30 intimation letter to exchanges
February 13, 2019 The Manager - Listing Department, The General Manager - Listing Department, National Stock Exchange of India Limited, BSE Limited Exchange Plaza, NSE Building, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai- 400 001 Mumbai- 400051 SYMBOL:POLYPLEX
Slide 2: Corporate Presentation
Corporate Presentation 2018 Polyplex Corporation Limited Confidential Information intended for the immediate recipient only
Slide 3: Index
Index ● Highlights ● Group Overview Group Structure Sponsor Polyplex Value Chain Global Presence & Portfolio Key Differentiators ● PET Film Industry Overall Thin PET ● Key Factors Specific to Polyplex ● Growth Plans ● Key Financial Indicators Corporate Office in Noida (U.P.) India 2015 Polyplex Corp
Slide 4: Highlights
Highlights 2018 Polyplex Corporation Limited Confidential Information intended for the immediate recipient only
Slide 5: Highlights
Highlights • An India headquartered Company with a global manufacturing footprint Leading • A top-3 Global Thin PET film producer (non – China) with a unique business model combining On-shored, Off-shored and Near-shored facilities Global Player • Strategically located production facilities in India
Slide 6: Highlights
Highlights • Attractive industry with global growth rate – 6-7% CAGR > GDP growth with Asia growing at close to double digit rates Attractive • Continuous development of new applications due to versatility of Polyester films reduces risk of product obsolescence and maturity Industry • Raw material d
Slide 7: Highlights
Highlights Stable, • Key sponsor – Mr. Sanjiv Saraf, holds 50% in Group Holding Company Proven • A management team with long experience in the industry and in the Group Management • A workforce of 2050 people including 250 professionals (Engineers, etc.) Team • New investments have stabilized and st
Slide 8: Highlights
Highlights • Revenues of about INR 3,616 crores (~US$ 560 million) in FY 2017-18 and INR 3,510 Crores (~ US$ 503 million) in YTD Q3 FY 2018-19 • Significant scope for improvement (product portfolio, ramp up of new production lines and continuous improvement) leading to a sustainable operational EBIT
Slide 9: Group Overview
Group Overview 2018 Polyplex Corporation Limited Confidential Information intended for the immediate recipient only
Slide 10: Group Structure
Group Structure 2015 Polyplex Corporation Limited Source : Company Filing Confidential Information intended for the immediate recipient only
Slide 11: Group Structure (contd…)
Group Structure (contd…) ● Polyplex Corporation Limited (PCL) is the Group Holding Company ● PCL’s economic interest in the overseas businesses is 51% ● PCL listed on BSE/ NSE in India and the Thai subsidiary (PTL) on the Stock Exchange of Thailand (SET) ● Shareholding of PCL is given below Others 4
Slide 12: Sponsor
Sponsor ● Mr. Sanjiv Saraf is the founder, Chairman and principal shareholder of PCL ● An alumnus of The Scindia School and a graduate from IIT, Kharagpur (1980), he joined his family business in Orissa ● In 1984, he ventured out on his own to establish Polyplex which is currently amongst the larges
Slide 13: Polyplex Value Chain
Polyplex Value Chain 2015 Polyplex Corporation Limited Confidential Information intended for the immediate recipient only
Slide 14: Global Presence and Portfolio
Global Presence and Portfolio India SEA / Far East Asia Europe North America (To add from Ashok Sharma (Khatima/Bazpur: India) (Rayong: Thailand) (Corlu: Turkey) (Decatur, AL, USA) 2 Thin PET Lines 2 Thin PET Lines 2 Thin PET Lines 1 Thin PET Line 1 Intermediate PET Line 1 Thick PET Line 4 Metallize
Slide 15: Global Presence and Portfolio
Global Presence and Portfolio Note: Base Film, Resin & Metallized Film in Metric Ton; Coating Capacity in Million Sqm. The above graph includes the proposed expansion in Indonesia and others Investments which are under implementation. 2015 Polyplex Corporation Limited Source : Company estimates Conf
Slide 16: Global Presence and Portfolio
Global Presence and Portfolio 2015 Polyplex Corporation Limited Source: Annual Report Confidential Information intended for the immediate recipient only
Slide 17: Global Presence and Portfolio
Global Presence and Portfolio ● Packaging substrates 8 to 350 Micron PET films BOPP CPP Blown PP/PE ● Wide Surface Treatments Options One & Both side coating Several Chemical Treatment Types ● Off-line Coated/Treated Products Siliconized Films Thermal Films (PE & EVA) Transparent Barrier (AlOx, PVDC
Slide 18: Global Presence and Portfolio
Global Presence and Portfolio 2015 Polyplex Corporation Limited Confidential Information intended for the immediate recipient only
Slide 19: Key Differentiators: Strong R&D Capability
Key Differentiators : Strong R&D Capability ● A separate R&D department registered with the Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology (India) ● Corporate R&D responsible to drive the Research and Development / Innovation at Group level ● 18+ dedicate
Slide 20: Key Differentiators: A Clear Competitive Advantage
Key Differentiators : A Clear Competitive Advantage Global Sales Presence Steady Growth Focus on Differentiation 14% = Average CAGR in Sales 17% = Average EBITDA Margin Wide Product Range Value Added Sales Sustainable Solutions Base Films: Thin PET, Thick PET, BOPP, CPP, Blown Film (PP/PE) Forward I
Slide 21: Key Differentiators: Focus on Systems and Processes
Key Differentiators : Focus on Systems and Processes ● Products compliant with: FDA, EC, REACH and Japan Food Sanitation Law ● Quality Assurance system integrated into our ERP systems ● TPM Work Philosophy ● Reporting of environmental and social performance as per the Global Reporting Initiative (GR
Slide 22: PET Film Industry
PET Film Industry 2018 Polyplex Corporation Limited Confidential Information intended for the immediate recipient only
Slide 23: Polyester (PET) Film: A Brief
Polyester (PET) Film : A Brief ●High performance film with a unique combination of qualities like high tensile strength, durability, heat resistance, good gas-barrier properties, dimensional stability, chemical inertness, clarity and recyclability ●Arising from this versatility, PET film has a wide
Slide 24: PET Films: Key Segments
PET Films : Key Segments ● Packaging Continues to grow – expected 7- 8 % for next 5 years (Historical 9%) Emerging economies (India/ China) – 8%-10% Other growing economies (SA/ SEA) – 6-8% Future economies – Africa Segment Market Share – 55-60% ● Industrial & Electrical (Gen Purpose) Industrial and
Slide 25: Thin PET: Outlook
Thin PET : Outlook ● Demand Supply Balance ● Attractive industry Source: Company Estimate Global growth rates > GDP Long term prospects strong because of flexible packaging segment and superior technical properties of PET film Newer applications in PV, replacement of PVC, Aluminum foil, etc continue
Slide 26: Thin PET: Outlook….. continued
Thin PET : Outlook….. continued ● Volatility in Industry Performance expected to reduce: Irrational capacity expansion, specially in China & India unlikely as all stakeholders – Promoters, Lenders and Management under pressure to deliver economic returns Direct and indirect subsidies / government pu
Slide 27: Thin PET: Outlook….. continued
Thin PET : Outlook….. continued ● Additional investments in capacity announced in SE Asia (Indonesia, Thailand), India, Pakistan Europe, Russia and Nigeria. However extent of new capacity (with start up between late 2019 to 2022) is commensurate with the growth in demand and unlikely to alter the ma
Slide 28: Polyplex Growth Plans
Polyplex Growth Plans 2018 Polyplex Corporation Limited Confidential Information intended for the immediate recipient only
Slide 29: Indonesia: A New Greenfield Project
Indonesia : A New Greenfield Project Key Rationale ● Indonesia – A large and growing economy ~38% of ASEAN GDP with next being Thailand at 16% Population of 263.5 MN- 4th Largest Globally / Largest in ASEAN Urban population 54.7%, likely to go up to 62.6% by 2030 GDP growth rate 5.0% in 2016, expect
Slide 30: Indonesia: A New Greenfield Project
Indonesia : A New Greenfield Project Salient Features of the Proposed Line ● Width: 10.6 meters Widest line ever in the world ● Speed: 650 meter/ min Fastest line ever in the world ● Production capacity: 44 KTPA Most productive line ever in the world ● Layer structure: ABC with multi – manifold die
Slide 31: Indonesia: A New Greenfield Project
Indonesia : A New Greenfield Project ● Project Scope PET Film line with a capacity of 44KTPA Width - 10.6 meter Speed - 650 mpm (max) Chips Plant with Direct melt casting - with a capacity of 65.7KTPA Metallizer - with a capacity of 6KTPA ● Project Cost Capital Investment – US$ 80 mil Estimated work
Slide 32: Other Capex
Other Capex ●Holography – India Capacity – 2,640 TPA Capability for seamless as well as coated product Applications – Decorative, Anti-Counterfeiting, Gift Wrap, Carton Lamination, Transfer Paper, etc ●Transfer Metallized Paper - India Capacity – Approx. 80 million square meter/year Applications - L
Slide 33: Key Financial Indicators
Key Financial Indicators 2018 Polyplex Corporation Limited Confidential Information intended for the immediate recipient only
Slide 34: The Group: Key Financial Indicators
The Group : Key Financial Indicators 2015 Polyplex Corporation Limited Confidential Information intended for the immediate recipient only
Slide 35: Thank You
Thank You ● This presentation might contain forward-looking details, which have been estimated based on current expectations and projections about future events, which are not necessarily indicative of the future or likely Performance of the Company ● Such details, as well as those included in any o