Cosmo First Limited · NSE:COSMOFIRST
Cosmo First — Q4 FY2023 Earnings Presentation
43 slides from Cosmo First's earnings presentation, May 30, 2023
Slide 1: Cover letter to stock exchanges
CFL/SE/2023-24/May/12 May 30, 2023 The Manager (Listing) The Manager (Listing) BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1, G Block, Mumbai-400 001 Bandra – Kurla Complex Scrip Code: 508814 Mumbai-400 051 Security ID: “COSMO
Slide 2: A Perspective
A Perspective May 2023 Speciality Films, Speciality Chemicals & Petcare Flexible Packaging I Lamination I Labeling I Synthetic Paper I Speciality Chemicals I D2C Petcare (Zigly)
Slide 3: Disclaimer
Disclaimer 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 f
Slide 4: Discussion Summary
Discussion Summary Cosmo First – An Overview March 2023, Year & Quarter - Performance Snapshot Strategic Perspective Our Businesses: Films Business Specialty Chemical D2C Petcare – Zigly Financials Overview ESG Focus
Slide 5: Company Overview
Company Overview Strong History & Leading Position Global Leader in some Specialty Segments Unique Proposition Established in 1981, Cosmo Films World’s largest producer of thermal Uniquely positioned with good mix of Ltd.is the pioneer of BOPP Films lamination films. specialty/semi specialty (
Slide 6: Company Overview - Our Businesses
Company Overview - Our Businesses Speciality films focused business Verticals: Zigly is D2C, Digital First Omni with target to sell 80% BOPP Masterbatch (From FY22) Channel platform for Pets (Petcare based volume of speciality films Coating Chemicals (From FY22) is high growth Industry growing at
Slide 7: Company Overview - Key Milestones
Company Overview - Key Milestones ►Established in 1981, Cosmo Films Ltd.is ►2012: 2nd ►Petcare ►2016: CPP line-1 the pioneer of BOPP Films Industry in coating line ►Speciality Chemicals ►2017: 10th BOPP India; ►2013: 9th line ►Today leading Specialty film player BOPP line 2022 ►2010: 2nd globally an
Slide 8: Company Overview – Why Named “Cosmo First”
Company Overview – Why Named “Cosmo First” Known for launching Pioneer of BOPP films Innovative Speciality Films Industry in India first in India First to have D2C Business Partners & True Omni-Channel People First Presence in India Approach Sustainability First Speciality Chemical Approach in the l
Slide 9: Speciality & Semi Speciality Growth and Margins
Speciality & Semi Speciality Growth and Margins Expanding Speciality & Semi-Speciality films portfolio (high margin category) (FY23 62% volume; 13% CAGR over last 4 years). Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 80 70 100% 60 80% 38% 43% 62% 52% 64% 50 60% 40
Slide 10: March 2023 Year & Quarter Results Update
MARCH 2023 YEAR & QUARTER RESULTS UPDATE
Slide 11: March 2023 Quarter - Performance Snapshot
March 2023 Quarter - Performance Snapshot INR Cr Audited Q4 FY 22-23 Unaudited Q3 FY 22-23 Audited Q4 FY 21-22 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 601 712 625 730 730 821 EBITDA 61 74 75 86 146 165 EBITDA % 10% 10% 12% 12% 20% 20% PBT 25 35 4
Slide 12: March 2023 Quarter - Performance Snapshot
March 2023 Quarter - Performance Snapshot Management Commentary Continues The Company’s Petcare vertical continue to grow rapidly and clocked monthly run rate revenue (GMV) of Rs. 2 crores from its 15 experience centres and increasing online presence through its website and mobile Apps. An acquisi
Slide 13: FY22-23 - Performance Snapshot
FY22-23 - Performance Snapshot INR Crores Audited FY 20-21 Audited FY 21-22 Audited FY 22-23 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 2,083 2,285 2,824 3,038 2,742 3,063 EBIDTA 398 430 526 620 396 434 EBIDTA % 19% 19% 19% 20% 14% 14% PBT 305 329 4
Slide 14: Strategic Perspective
STRATEGIC PERSPECTIVE <} Cosmo First Ahead Abvays www.cosmofirst.co! BRL, zigty BG btn)
Slide 15: Why Cosmo First ?
Why Cosmo First ? A Company with diversified businesses with target 20% CAGR topline growth in next 3 years coupled with commensurate return growth Potential high Growth Engines include Speciality Films, Speciality Chemicals and a digital first, D2C Petcare business Speciality Films: Expandi
Slide 16: Key Capex to Fuel Growth
Key Capex to Fuel Growth Films Business: Estimated Annual Estimated S.No. Capex Project Capex Capacity Commercial (INR Crs) (MT) Production by 1 BOPP Line (World’s Largest Line) 350 67,000 H1’FY 2026 2 CPP Films Line (World’s Largest Line) 140 25,000 H1’FY 2025 3 Value add assets for Specialized BOP
Slide 17: Business Overview “Films Business”
BUSINESS OVERVIEW “FILMS BUSINESS”
Slide 18: Films Business-India Industry Dynamics & Capex Strategy
Films Business-India Industry Dynamics & Capex Strategy Data Source: AMI/PCI/Other Independent Research and Industry Sources
Slide 19: Films Business - Speciality Films Product Portfolio
Films Business - Speciality Films Product Portfolio PACKAGING FILMS LAMINATION FILMS LABEL FILMS INDUSTRIAL FILMS o Print & Pouching Films o Thermal Lamination & Wet o Pressure Sensitive Label o Synthetic paper o Tape & Textile Films Lamination stock films o Cable Overwrap o Barrier Films o Special
Slide 20: Speciality Films Focus
Speciality Films Focus Grow Speciality portfolio by volume from Key Speciality Products: 62% in FY23 to 80%+ by 2025 Globally among top four players in BOPP Speciality films Speciality Label Films – Second largest player in the World Each 1% shift in Speciality adds EBITDA Thermal Lamina
Slide 21: Speciality Films: Specialized BOPET Line (H2, FY23)
Speciality Films: Specialized BOPET Line (H2, FY23) 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 estimated cost INR 450 crores (with value added assets) wi
Slide 22: Focus on R&D and innovation to fuel next phase of growth
Focus on R&D and innovation to fuel next phase of growth Infrastructure Innovative Product Launches Direct Thermal Printable Film: Film specially designed for niche applications like information labelling (airport baggage tags), inventory tracking, frozen food R&D labs with most sophisticated la
Slide 23: Films Business - Manufacturing Footprints
Films Business - Manufacturing Footprints TOTAL INSTALLED CAPACITY BOPP – 1,96,000 TPA ( 9 lines) Thermal – 40,000 TPA ( 8 lines) BOPET – 30,000 TPA ( 1 line) Coating – 20,000 TPA (6 lines) BOPET– 1 line Metalizing – 22,000 TPA (4 lines) CPP – 10,000 TPA (2 lines) CSP – 7,000 TPA ( 1 line)
Slide 24: Films Business - Customer Base
Films Business - Customer Base CANADA GERMANY US KOREA JAPAN INDIA Manufacturing Locations Sales Offices-Other than manufacturing locations Sales FY 22-23 53% 47% Export Domestic
Slide 25: Films Business – Customers/Brands we Serve
Films Business – Customers/Brands we Serve . . Disclosure: All these are trademarks of respective Owners
Slide 26: Business Overview “Speciality Chemicals Business”
BUSINESS OVERVIEW “SPECIALITY CHEMICALS BUSINESS” Specialty Chemicals Masterbatches Adhesives Coating Chemicals (Capacity- 10K MT) (Capacity- 2.5K MT) (Capacity- 5K MT)
Slide 27: Specialty Chemicals
Specialty Chemicals Masterbatches Adhesives India Industry size is 500k mt. Adhesive is planned to kick start from H2’FY23 Industry growing by 11% pa. Global Industry USD 52 billion (5% growth Masterbatch is a concentrated mixture of rate) pigments and additives used for imparting India
Slide 28: Business Overview D2C Petcare Under Brand “Zigly”
BUSINESS OVERVIEW D2C PETCARE UNDER BRAND “ZIGLY” Indian Petcare Market Rs 12500 25% Cr Rs Rs 5100 3000 19% Cr Cr FY 2020 FY 2023 FY 2027 Pet penetration in developed markets like US & UK is more then 68% and growing. The Pet care market in India is booming with • ~25% Projected Annual Growth • ~32M
Slide 29: Petcare Vertical (Zigly) Plan
Petcare Vertical (Zigly) Plan India Petcare industry INR 5k crores (25% expected growth rate) 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 Average spending on pe
Slide 30: Zigly – Key Tractions
Zigly – Key Tractions 13 Cr 2 cr 23K + 4200+ GMV (FY’23) Current Monthly Customers served with 6k+ SKUs available GMV Zigly Pro members App 39% 75K + 1 lac + First Petcare app Repeat customers Customers database Social Media followers
Slide 31: Zigly - Business Model
Zigly - Business Model Retail outlets Own E-commerce Service Other Marketplace website and App Marketplace Private label One Stop solution retail available on Amazon outlets offering 4200+ SKUs Acting as an Products available on website Grooming aggregator for panel Van Veterinary of groomers and Gr
Slide 32: Financial Overview
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Slide 33: Key Financial Snapshot
Key Financial Snapshot – to be updated Net-Worth and Book-Value per share 1,298 ROCE % 1,191 854 29% 680 741 22% 573 620 488 14% 16% 381 313 437 495 260 9% 171 201 217 238 133 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Global Net Worth
Slide 34: Leverage Profile
Leverage Profile Strong financials with continuing Capex. Net debt/EBITDA 1.0 times and net debt to equity at 0.3 times (March 2023) Net Debt (INR Cr) 800 727 600 584 438 434 400 303 200 - Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Slide 35: Shareholding Pattern – Mar 2023
Shareholding Pattern – Mar 2023 1.21 Top Non-Promoter Shareholding – 31st Mar 2023 Shareholding 31st Mar. 2023 Acadian Emerging Markets Small Capp 1 0.88% Equity Fund LLC Promoter and Promoter 48.69 44.4 Group 2 Aequitas Equity Scheme I 0.74% Institutional 3 Pankaj Poddar 0.58% Non Institutional 4 S
Slide 36: ESG and Sustainability Initiatives
ESG and Sustainability Initiatives CareEdge “GOOD” ESG Rating
Slide 37: Sustainable Manufacturing and Product Practices
Sustainable Manufacturing and Product Practices Product Practices Manufacturing Practices Offering mono-material poly-olefin films for Recycling of manufacturing waste for further film ease of recycling. Production (about 95%) Designed heat resistant BOPP films replacing 5% reduction in carb
Slide 38: Corporate Governance
Corporate Governance Well established practices in place I. Well qualified Board of Directors from diversified fields with majority of directors being independent II. 66% independent directors III. Independent Audit Committee with Board of Directors IV. Established risk management practices V. Separ
Slide 39: Board of Directors
Board of Directors Mr. Ashok Jaipuria Mr. Pratip Chaudhuri Chairman & Managing Director Non-Executive & Non Independent Director A first generation entrepreneur with over Extensive experience in the fields of Corporate Finance, forty years of experience in the corporate Treasury, Asset Management an
Slide 40: Leadership Team
Leadership Team Mr. Kulbhushan Malik Business Head- Cosmo Films Over 24 years of experience in the areas of Business & Mr. Pankaj Poddar Strategy Management, Sales and Financial management. Group Chief Executive Officer Over 27 years of experience in Mr. Sanjay Chincholikar finance, advisory and var
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: Awards and Accolades
Awards and Accolades FY 2022-23 • Featured as one of the Top 10 Companies from India in Forbes Asia Best under A Billion 2022 list • Ranked as one of India’s Fastest Growing Companies by BW Business World Magazine • Cosmo First grabbed “Most enterprising Business Award” by prestigious Entrepreneur M
Slide 43: Thank You
Thank You For more information, please contact: Cosmo First Ltd. Mr. Neeraj Jain Group Chief Financial Officer Email ID: neeraj.jain@cosmofirst.com; sachin.goel@cosmofirst.com Adfactors PR Pvt. Ltd. Aashvi Shah / Snighter Albuquerque Tel: +91 98210 43389/ +91 9819123804 Email: aashvi.shah@adfactorsp