Slide 1: Cosmo Films filing cover letter: Investor Presentation
EljS COSMO FILMS WSSI Engineered to Enhance CFL/SEC/2022-23/MAY/05 May 10, 2022 The Manager (Listing) The Manager (Listing) Bombay Stock Exchange Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1,G Block, Mumbai-400001 Bandra - Kurla
Slide 2: A Perspective
A Perspective Speciality Films, Polymer & Chemicals Company Flexible Packaging I Lamination I Labeling I Synthetic Paper I Masterbatches I Specialty Chemicals I D2C Petcare May 2022
Slide 3: Discussion Summary
Discussion Summary Why Cosmo Films? Key Focus Areas & Strategy – Specialty Films R&D & Sustainability Patents & trademark Specialty Chemicals D2C Pet Care Financials What Investors may expect? Annexure: Company Overview, India Industry Dynamics, ESG, CSR 1
Slide 4: Why Cosmo Films?
Why Cosmo Films? Diversified company into Speciality Films, Polymer & Chemicals and a digital first, D2C Petcare business Speciality Films: Expanding Speciality portfolio (70% revenue; 18% annual growth in last 3 years). Target 80%+ revenue from Speciality by 2023 end R&D & Sustainability fo
Slide 5: Specialty Films .... Target 80%+ Revenue
Specialty Films …. Target 80%+ Revenue Grow specialty portfolio from 70% to 80%+ by 2023 end Each 1% shift in specialty adds EBITDA between Rs 4 to 5 crores Complimentary growth in Specialized BOPET Line (Shrink labels, Heat reduction films and other high end specialty) – target 20%+ ROCE In
Slide 6: Specialty Films
Specialty Films Key Specialty Products: Globally among top four players in BOPP Specialty films Specialty Label Films – Second largest player in the World Thermal Lamination Films – World’s largest supplier Industrial Application Films – World’s largest supplier Newer growth areas for Sp
Slide 7: Specialty Films & Product Portfolio
Specialty Films & Product Portfolio SALES REVENUE FY 22 24% 16% 55% 14% 10% PACKAGING FILMS LAMINATION FILMS LABEL FILMS INDUSTRIAL FILMS 50% 24% o Print & Pouching o Thermal Lamination & o Pressure Sensitive o Synthetic paper Films Wet Lamination Label stock films o Cable Overwrap 24% o Tape & Text
Slide 8: Specialty Films: Some Products launched during recent quarters
Specialty Films: Some Products launched during recent quarters 100% Opaque Synthetic Paper o A non tearable, co-extruded, white opaque and Enhanced Barrier Metalized BOPP both sides matte coated film for dangler Film application. o Suited for packaging of biscuits, High Tear Resistant Synthetic Pape
Slide 9: Specialty Films: Specialized BOPET Line
Specialty Films: Specialized BOPET Line Worlds’ largest line for Shrink Labels and Heat Control Films Shrink Labels – global market @ 130k MT Opportunity in India to convert non-recyclable PVC film market (30k MT) Project cost INR 400 crores (with value added assets) with 3-4 years payback 7
Slide 10: Research and Development – A Snapshot
Research and Development – A Snapshot Infrastructure Achievements R&D labs with most sophisticated Recognition and certification by equipment and instruments, one in India Department of Scientific & Industrial & another one in USA. Research, Government of India. R&D resources increased to 30+
Slide 11: ESG and Sustainability – Specific Focus Area
ESG and Sustainability – Specific Focus Area Offer mono layered structure for ease of recycling Offer Oxo-Biodegradable Films, Use of Water Based Coatings, Innovated heat resistant BOPP film to facilitate mono material structure Several sustainability initiatives to: all plants are parti
Slide 12: ESG Initiatives
ESG Initiatives Detailed Sustainability report is available on Company’s website 10
Slide 13: ESG Initiatives (Contd..)
ESG Initiatives (Contd..) Detailed Sustainability report is available on Company’s website 11
Slide 14: Specialty Chemicals - Masterbatch
Specialty Chemicals - Masterbatch India Industry size 500k mt Industry growing by 11% pa Masterbatch is a concentrated mixture of pigments and additives used for imparting specific desired properties and coloring in plastic. These are further used in compounding. Cosmo plans to produce all m
Slide 15: Specialty Chemicals – Textile Applications & Adhesive
Specialty Chemicals – Textile Applications & Adhesive Specialty Textile Chemicals: India Industry size USD 1.4 billion Industry growing by 12% pa the Company has commercialized 56 products and has started supplies to 40+ customers Cosmo plans to cater to niche specialty focused either to a
Slide 16: Petcare Vertical – The Industry
Petcare Vertical – The Industry India Petcare Market Rs 10000 Cr 22% Rs 5100 Cr 19% Rs 3250 Cr FY 2014 FY 2020 FY 2025 • India is the fastest-growing pet markets (@22%) in the world and the market is projected to cross • Petcare is one of the fastest growing category world $500 million in 2020. wide
Slide 17: Petcare Vertical- Business Plan
Petcare Vertical- Business Plan India Petcare industry is at INR 7k crores & growing at 22% CAGR due to smaller families, rising income levels and limited social lives (especially post Covid-19). No large scale organized players in India offering end to end comprehensive solution to the customer
Slide 18: Financials
Financials INR Crs Audited Q4 FY 21-22 Unaudited Q3 FY 21-22 Audited Q4 FY 20-21 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 730 821 739 771 606 672 EBIDTA 146 165 132 161 112 126 EBIDTA % 20% 20% 18% 21% 18% 19% PBT 119 135 111 138 90 101 PAT 93 108
Slide 19: Financials – Some recent years
Financials – Some recent years INR Crores Audited FY 19-20 Audited FY 20-21 Audited FY 21-22 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 2,032 2,204 2,083 2,285 2,824 3,038 EBIDTA 262 280 398 430 526 620 EBIDTA % 13% 13% 19% 19% 19% 20% PBT 163 163 3
Slide 20: Financials - ROCE & ROE
Financials - ROCE & ROE ROCE and ROE are on increasing trend …. ROCE % ROE % 39% 29% 22% 30% 14% 16% 9% 9% Mar-19 Mar-20 Mar-21 Mar-22 Mar-19 Mar-20 Mar-21 Mar-22 18
Slide 21: Financials - Total Shareholders' Return
Financials - Total Shareholders’ Return Consolidated net worth and book value per share 1,191 854 741 620 680 655 573 458 488 381 381 295 319 350 196 251 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Global Net Worth (INR Crores) Book Value per Share Consistent dividend payout reco
Slide 22: Financials - Consolidated Net Debt
Financials - Consolidated Net Debt Net Debt is coming down even with Capex. At March 2022, net debt/EBITDA is at 0.5 times and net debt to equity at 0.3 times Net Debt 800 759 727 700 618 584 600 485 500 438 455 400 303 300 200 100 - Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 20
Slide 23: Key Capex & Expansion Plan
Key Capex & Expansion Plan Films Business: Estimated Annual Capacity Estimated Commercial S. No. Capex Project Capex (MT) Production by (INR Crs) 1 Specialized BOPET Line with value add assets 400 30,000 Q2, FY23 2 BOPP Line (world's largest line) 350 67,000 FY 2024-25 3 CPP film Line 140 25,000 FY
Slide 24: What Investors may expect?
What Investors may expect? Flexible Packaging Business: Transformation into primarily specialty films company with consistent 20%+ ROCE Specialty Chemicals: 20% revenue with 25%+ ROCE in about 5 years Petcare: Build and demerge the business vertical in medium term to drive shareholders valuati
Slide 25: Annexure: Company Overview
Annexure: Company Overview 23
Slide 26: Company Overview
Company Overview Strong History & Leading Position Global Leader in Thermal Lam Films Unique Proposition Established in 1981, Cosmo Films With the acquisition of GBC Uniquely positioned with good mix Ltd.is the pioneer of BOPP Films Commercial Print in June of specialty and commodity films. In
Slide 27: Company Overview - Milestones
Company Overview - Milestones Petcare Textiles ►2016: CPP line-1 chemicals ►2012: 2nd coating line ►2017: 10th BOPP 2022 line ►2013: 9th BOPP ►Established in 1981, Cosmo Films Ltd.is the line 2016-17 pioneer of BOPP Films Industry in India; ►2014: 3rd coating line 2023 ►2010: 2nd Specialized ►It
Slide 28: Company Overview - BOPP EDGE
Company Overview - BOPP EDGE MOISTURE BARRIER CHEMICALLY INERT LOW COF AND LOW SIT HEAT SEALABILITY EXCELLENT CLARITY & Better Shelf Life, Suitable For Food & Good Machinability Suitable For Flexible HIGH GLOSS Guard Sensitive Pharma At High Speeds Packaging Better Aesthetics Products LOW MELTING PO
Slide 29: Company Overview - Manufacturing Footprint
Company Overview - Manufacturing Footprint NUMBER OF LINES BOPP Thermal Coating Metalizing CPP Waluj, Aurangabad, India 5 Lines 2 Lines 3 Lines 1 Line 1 Line Karjan, Vadodara, India 3 Lines 1 Lines 2 Line 1 Line Shendra, Aurangabad, India 1 Line 5 Lines 2 Line 1 Line PLANTS Asan, Korea 1 Line TOTAL
Slide 30: Company Overview - Customer Base
Company Overview - Customer Base CANADA GERMANY US KOREA JAPAN CHINA INDIA Sales FY 21-22 46% Export 54% Domestic Manufacturing Locations Sales Offices-Other than manufacturing locations 28
Slide 31: Company Overview - Key Customers
Company Overview - Key Customers Disclosure: All these are trademarks of respective Owners 29
Slide 32: Company Overview - Some of the brands we service
Company Overview - Some of the brands we service Disclosure: All these are trademarks of respective Owners 30
Slide 33: India Industry Dynamics and Capex Strategy
India Industry Dynamics and Capex Strategy Data Source: AMI/PCI/Other Independent Research and Industry Sources 31
Slide 34: Company Overview - Initiatives to improve Quality Culture
Company Overview - Initiatives to improve Quality Culture Implemented Six Sigma System at the organizational level to Initiated small quality improvement projects with lower level improve quality culture. cross functional teams to reduce customer quality complaints. 15 people trained as six si
Slide 35: Some Recent Achievements
Some Recent Achievements FY 2021-22 • Bagged CII National Level Scale award for Supply Chain and Logistics Excellence • IFCA Star Award under the innovations category for the Heat Resistant BOPP Film & CPP Specialized Film • SIES SOP Star Awards for its one side printable and other side barrier coat
Slide 36: Board of Directors
Board of Directors Mr. Ashok Jaipuria Mr. A. K. Jain Mr. H. K. Agrawal Chairman & Managing Director Whole Time Director Independent Director Our founder Chairman & Managing Director Mr. Jain has over four decades of Mr. Agrawal has over four decades of has more than 40 years of experience of experie
Slide 37: Board of Directors (Contd..)
Board of Directors (Contd..) Ms. Alpana Parida Mr. Pratip Chaudhuri Mr. H. N. Sinor Independent Director Non Executive Non Independent Director Independent Director Mr. Pratip Chaudhuri holds a BSc. (Hons) Degree Mr. H. N. Sinor has been a veteran banker, having Ms. Alpana Parida has more than two d
Slide 38: Board of Directors (Contd..)
Board of Directors (Contd..) Mr. Anil Wadhwa Mr. Rakesh Nangia Mr. Arjun Singh Independent Director Independent Director Independent Director Mr. Rakesh Nangia is a well known tax veteran, having Arjun Singh is currently the Managing Director for Mr. Wadhwa is an Ex- Member of the Indian Foreign Asi
Slide 39: Senior Management
Senior Management Mr. Pankaj Poddar Mr. Neeraj Jain Mr. Sanjay Chincholikar Chief Executive Officer Chief Financial Officer Head- Operations (India Films Business) Mr. Pankaj Poddar’s career spans over a period of Mr. Neeraj Jain has over two decades of Mr. Sanjay Chincholikar's career spans over th
Slide 40: Shareholding Pattern
Shareholding Pattern Top Non-Promoter Shareholders*: 1. M/s Cosmo Films ESOP 2015 Trust 1.1% 2. M/s Acadian Emerging Markets 0.9% 3. M/s Aequitas Equity Scheme - I 0.8% 4. M/s Aequitas Investment Consultancy 0.7% 5. Ms. Dolly Khanna 0.6% 6. Mr. Vikas Mehra 0.6% 7. Ms. Shivani Tejas Trivedi 0.6% 8. M
Slide 41: Corporate Social Responsibility
Corporate Social Responsibility Some of the Flagship Programs (Education to 20,000+ Students) Computer Literacy Program Basic English Learning Program Cosmo Gyan Vihar Kendra Covers 4,000 students from Implementation in 8 primary schools Identifies, enrolls and grades class I to XII every year with
Slide 42: Disclosure
Disclosure Certain statements in this presentation are ―forward-looking statements. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results other
Slide 43: Thank you
Thank you www.cosmofilms.com