Epl Limited · NSE:EPL

Epl — Essel Propack — Q4 FY2020 Earnings Presentation

39 slides from Epl's earnings presentation, May 22, 2020

  1. Slide 1: Cover letter to stock exchanges on investor notes

    22 May 2020 Corporate Service Department The Listing Department BSE Limited National Stock Exchange of India Ltd 25th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Mumbai 400 001 Bandra-Kurla Complex, Bandra (E) Mumbai 400 051 Scrip: Equity 500135. NCDs 95723

  2. Slide 2: Essel Propack Limited (EPL) Q4FY20 Earnings Presentation

    Essel Propack Limited (EPL) Q4FY20 Earnings Presentation

  3. Slide 3: Safe Harbour

    Essel Propack Limited Q4FY20 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

  4. Slide 4: EPL 2.0: Continued Commitment to the Mission

    EPL 2.0 Continued Commitment to the Mission

  5. Slide 5: Recap: EPL 2.0 - Executive Summary

    Essel Propack Limited Q4FY20 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 Strengthened management team, Board, and advisor network • Sudhanshu Vats (ex-Viaco

  6. Slide 6: Sudhanshu Vats Hired as MD and CEO; Strengthening of Management Team Completed

    Essel Propack Limited Q4FY20 Earnings Presentation Sudhanshu Vats Hired as MD and CEO; Strengthening of Management Team Completed Sudhanshu has 28+ years of industry experience across the FMCG and media sectors Professional Experience  Scaled up business from 6 to over 54 television channels in 80+

  7. Slide 7: Q4FY20 Performance Summary

    Essel Propack Limited Q4FY20 Earnings Presentation Q4FY20 Performance Summary EPL 2.0 Mission: Capital Efficient, Consistent Earnings Growth (INR million) Q4FY19 Q4FY20 Growth Pro-forma Adjusted Revenue 7,425 7.0% 6,937 Growth1 Pro-forma Adjusted EBITDA 1,531 21.7% 1,258 Pro-forma Adjusted EPS (INR)

  8. Slide 8: FY20 Performance Summary

    Essel Propack Limited Q4FY20 Earnings Presentation FY20 Performance Summary EPL 2.0 Mission: Capital Efficient, Consistent Earnings Growth (INR million) FY19 FY20 Growth Pro-forma Adjusted Revenue 3.9% 27,069 28,137 Growth1 Pro-forma Adjusted EBITDA 10.8% 5,015 5,558 Pro-forma Adjusted EPS (INR) 22.

  9. Slide 9: FY20 Reported Financials

    Essel Propack Limited Q4FY20 Earnings Presentation FY20 Reported Financials FY20 Consolidated Financial Highlights: Reported Y-o-Y Revenue growth of 2.0%, EBITDA growth of 11.7% and PAT growth of 14.3% (INR million) Revenue from Operations EBITDA and EBITDA Margins EBIT and EBIT Margins 18.5% 20.3%

  10. Slide 10: EPL Worked Proactively with All Stakeholders to Minimize Covid-19 Impact

    Essel Propack Limited Q4FY20 Earnings Presentation EPL Worked Proactively with All Stakeholders to Ensure Business Continuity and Minimize Covid-19 Impact  Proactively worked with regulatory authorities and customers to classify EPL in the “essential All 20 plants services” category Supply Enableme

  11. Slide 11: Hand Sanitizer Offering Launched Globally

    Essel Propack Limited Q4FY20 Earnings Presentation Hand Sanitizer Offering Launched Globally: EPL has Emerged as the Leading Supplier for Key Brands Product innovation in 15 days Market-first product in India and Laminate several geographies and Polymer Supply Expertise Chain Agility Potential to

  12. Slide 12: Pro-forma for Covid-19 Impact, Q4FY20 Revenue Grew 7.0% and EBITDA 21.7%

    Essel Propack Limited Q4FY20 Earnings Presentation Pro-forma for Covid-19 Impact in India and China, Q4FY20 Revenue Grew by 7.0% and EBITDA Grew by 21.7% (INR million) Pro-forma YoY Pro-Forma1 Adjusted Revenue (INR million) Growth % 6,889 7,425 6,937 536 7.0% Reported Q4FY20 Revenue Covid Impact in

  13. Slide 13: Renewed Focus on Capital Efficiency; Final Dividend INR 2.05 Proposed

    Essel Propack Limited Q4FY20 Earnings Presentation Renewed Focus on Capital Efficiency Leading to Reduction in Net Debt; Final Dividend of INR 2.05 per Share Proposed for FY20 Prudent Capex 3,040 Spend.. 1,987 2,305 1,405 1,286 FY16 FY17 FY18 FY19 FY20 Capital Expenditure (INR million) ..Leading to

  14. Slide 14: Continued Focus on Fundamental Levers – Q4FY20

    Essel Propack Limited Q4FY20 Earnings Presentation Continued Focus on Fundamental Levers – Q4FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 13

  15. Slide 15: Personal Care has Grown at a 16% CAGR Over Nine Years

    Essel Propack Limited Q4FY20 Earnings Presentation Personal Care has Grown at a 16% CAGR Over the Last Nine Years and Continues to be the Major Growth Driver for EPL Personal Care Revenue (INR million) 15.9% CAGR 11,206 8,254 2,980 Sub-categories FY11 FY15 FY20 Face Care Hair Care OTC Medication Pre

  16. Slide 16: Personal Care Contribution Increased to 45% in FY20

    Essel Propack Limited Q4FY20 Earnings Presentation Personal Care Contribution Increased to 45% in FY20 Personal Care Contribution to Tube Revenue  375 bps 45% 43% 41% FY18 FY19 FY20 Mix-shift towards Personal Care to continue, driven by increasing penetration of laminated tubes in the end-industry

  17. Slide 17: Continued Growth in Personal Care (1/2)

    Essel Propack Limited Q4FY20 Earnings Presentation Continued Growth in Personal Care (1/2) (INR million) AMESA EAP -1.0% CAGR 21.1% CAGR 3,917 3,821 3,839 1,158 1,611 1,698 FY18 FY19 FY20 FY18 FY19 FY20 Highlights Highlights  Personal Care contribution flat at 49.9% in FY20 (v/s 50.0% in  Personal

  18. Slide 18: Continued Growth in Personal Care (2/2)

    Essel Propack Limited Q4FY20 Earnings Presentation Continued Growth in Personal Care (2/2) (INR million) Americas Europe 19.0% CAGR 29.2% CAGR 896 1,277 1,496 2,950 3,572 4,180 FY18 FY19 FY20 FY18 FY19 FY20 Highlights Highlights  Personal Care contribution increased to 25.4% in FY20  Personal Care

  19. Slide 19: Continued Focus on Fundamental Levers – Q4FY20

    Essel Propack Limited Q4FY20 Earnings Presentation Continued Focus on Fundamental Levers – Q4FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 18

  20. Slide 20: EPL has Established Global Leadership in Oral Care

    Essel Propack Limited Q4FY20 Earnings Presentation EPL has Established Global Leadership in Oral Care with the Segment Demonstrating Steady Long-Term Revenue Growth Oral Care Revenue (INR million) 10.1% CAGR 12,748 13,809 11,764 9,203 5,823 FY11 FY13 FY15 FY17 FY20 Customers Market Positioning 1. Ma

  21. Slide 21: Continued Focus on Fundamental Levers – Q4FY20

    Essel Propack Limited Q4FY20 Earnings Presentation Continued Focus on Fundamental Levers – Q4FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 20

  22. Slide 22: Continued Growth Momentum in Europe across Oral and Personal Care

    Essel Propack Limited Q4FY20 Earnings Presentation Continued Growth Momentum in Europe across Oral and Personal Care Categories Europe Revenue (INR million) Revenue CAGR 8,000 6,771 15% Total 5,852 6,000 5,096 Oral 11% Care 4,000 Personal 2,000 61% 62% 64% 19% Care 0 FY18 FY19 FY20 Personal Care Ora

  23. Slide 23: Leading to Strong EBITDA Growth and Margin Improvement

    Essel Propack Limited Q4FY20 Earnings Presentation Leading to Strong EBITDA Growth and Margin Improvement Europe EBITDA (INR million) 1,000 12.8%  250 bps y-o-y 15.0% 800 10.3% 866 10.0% 600 10.0% Margin expansion 603 driven by fixed 400 511 cost leverage; 5.0% improvement to 200 continue 0 0.0% FY

  24. Slide 24: Continued Focus on Fundamental Levers – Q4FY20

    Essel Propack Limited Q4FY20 Earnings Presentation Continued Focus on Fundamental Levers – Q4FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 23

  25. Slide 25: Sustainability: an Intrinsic Value at EPL

    Essel Propack Limited Q4FY20 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 APR1 (Oral Care) Oral Care • Suitable for oral, hair care and fo

  26. Slide 26: Strong Traction and Acceptability of EPL's Sustainable Offerings

    Essel Propack Limited Q4FY20 Earnings Presentation Strong Traction and Acceptability of EPL’s Sustainable Offerings by Leading Global Customers Enabled leading Oral Care Player Ship EPL’s Sustainable Laminates Being Platina Laminate is Now Ready for World’s First Recyclable Tube Commercialized Globa

  27. Slide 27: Recap: EPL 2.0 - Executive Summary

    Essel Propack Limited Q4FY20 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 Strengthened management team, Board, and advisor network • Sudhanshu Vats (ex-Viaco

  28. Slide 28: Appendix

    Appendix

  29. Slide 29: Q4FY20 Reported Financials

    Essel Propack Limited Q4FY20 Earnings Presentation Q4FY20 Reported Financials Q4FY20 Consolidated Financial Highlights: Reported Y-o-Y Revenue growth of -0.7%, EBITDA growth of 5.5% and PAT growth of -1.5% (INR million) Revenue from Operations EBITDA and EBITDA Margins EBIT and EBIT Margins 19.3% 20

  30. Slide 30: FY20: Adjusted EBITDA Grew 7.7% & Adjusted PAT Grew 15.8%

    Essel Propack Limited Q4FY20 Earnings Presentation FY20: Adjusted EBITDA Grew 7.7% Y-o-Y & Adjusted PAT Grew 15.8% Y-o-Y (INR million) Adjustments EBITDA PAT1 Reported FY20 numbers 5,600 2,166 • TSA2 related expenses +98 +73 • Impact of change in accounting standard for leases -307 +37 • Tax amnesty

  31. Slide 31: Q4FY20: Adjusted EBITDA Grew 9.3% & Adjusted PAT Grew 27.9%

    Essel Propack Limited Q4FY20 Earnings Presentation Q4FY20: Adjusted EBITDA Grew 9.3% Y-o-Y & Adjusted PAT Grew 27.9% Y-o-Y (INR million) Adjustments EBITDA PAT1 Reported Q4FY20 numbers 1,410 486 • TSA2 related expenses +40 +30 • Impact of change in accounting standard for leases -76 +9 Adjusted Q4FY

  32. Slide 32: Q4FY20 Regional Performance – 1/2

    Essel Propack Limited Q4FY20 Earnings Presentation Q4FY20 Regional Performance – 1/2 Revenue Split % across Regions EBIT Split % across Regions Europe, Europe, AMESA, 16% AMESA, 27% 30% 29% Americas, Americas, EAP, 19% 36% 24% EAP, 18% • Q4FY20 revenue impacted by Covid-19 in AMESA and EAP; strong r

  33. Slide 33: Q4FY20 Regional Performance – 2/2

    Essel Propack Limited Q4FY20 Earnings Presentation Q4FY20 Regional Performance – 2/2 (INR million) Revenue1 YoY Growth EBITDA2 Margin AMESA1 2,153 -9.0% 527 24.5% EAP 1,353 -12.1% 259 19.1% Americas 1,713 3.9% 390 22.8% Europe 1,897 15.6% 258 13.6% (1) AMESA and EAP Revenue is not adjusted for INR 5

  34. Slide 34: Q4FY20 Performance – AMESA and EAP

    Essel Propack Limited Q4FY20 Earnings Presentation Q4FY20 Performance – AMESA and EAP (INR million) AMESA Particulars Q4FY20 Q4FY19 % change Revenue1 2,153 2,365 -9.0% EBITDA2 527 502 5.0% EBITDA % 24.5% 21.2% EBIT2 281 293 -4.3% EBIT % 13.0% 12.4% EAP Particulars Q4FY20 Q4FY19 % change Revenue1 1,3

  35. Slide 35: Q4FY20 Performance – Americas and Europe

    Essel Propack Limited Q4FY20 Earnings Presentation Q4FY20 Performance – Americas and Europe (INR million) Americas Particulars Q4FY20 Q4FY19 % change Revenue 1,713 1,649 3.9% EBITDA 390 391 -0.2% EBITDA % 22.8% 23.7% EBIT 297 311 -4.5% EBIT % 17.3% 18.9% Europe Particulars Q4FY20 Q4FY19 % change Rev

  36. Slide 36: About EPL

    About EPL

  37. Slide 37: EPL: Company Overview

    Essel Propack Limited Q4FY20 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

  38. Slide 38: EPL Caters to Marquee Customers Across Trillion Dollar Categories

    Essel Propack Limited Q4FY20 Earnings Presentation EPL Caters to Marquee Customers Across Trillion Dollar Categories Tube revenue split (FY20) Personal Care, 45% 4% 9% Others Pharma 32% 55% Beauty & Oral Care Cosmetics 37

  39. Slide 39: About EPL

    Essel Propack Limited Q4FY20 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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