Slide 1: Exchange filing cover letter for Q3 results presentation
POLYPLEX February 10, 2021 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- 400 051 SYMBO
Slide 2: Third Quarter FY 20-21 Financial Results & Summary
Third Quarter FY 20-21 Financial Results & Summary Polyplex Corporation Limited (PCL) February 10, 2021
Slide 3: Polyplex At a Glance
Polyplex At a Glance Years 33 High level of expertise, especially in PET Film production, with Of Experience in-house R&D continuously seeking to provide innovative in Plastic Films solution to customers #1 In BOPET Film Production in SEA The preferred provider across regions #6 Global BOPET Thin Fi
Slide 4: Polyplex: At a Glance
India Rating & Research Polyplex: At a Glance 2020 : IND AA- (Stable Outlook) Q3 20-21 Highlights YTD 20-21 Highlights 1,234 Cr +1% +14% 3,612 Cr +10% Sales Revenue# QoQ YoY Sales Revenue# YoY 343 Cr +2% +45% 980 Cr +41% Normalized EBITDA* Normalized EBITDA* (28% EBITDA Margin) 28bps 605bps (27% EBI
Slide 5: Polyplex Journey so far: Ability to identify & capitalise on opportunities
2019 2022 TMP in Bazpur New PET Film line in USA Polyplex Journey so far: Ability to identify & capitalise on opportunities Started manufacturing in Indonesia 2014 Expansion of Holography Started Offline business in Khatima Chemical Coated operations in Turkey 2012 & Bazpur First Silicon 2008 Coating
Slide 6: Success Enablers
Success Enablers Global leadership position with industry leading scale & cost Strong financial & operational track record Continuous and high growth in demand Stable earning across business cycles Stable & proven Management team !5
Slide 7: Global leadership position with industry leading scale & cost
Global leadership position with industry leading scale & cost !6
Slide 8: Global Leadership
Global Leadership Unique model of on-shore, off-shore and near-shore manufacturing Preferred strategic partner in flexible packaging - the largest and fastest growing segment in PET film 500 Global #6 in Thin PET Film* 375 Polyplex By Capacity (KMTPA) Netherlands Korea 250 USA Japan Turkey Mexico Ind
Slide 9: Global Presence & Portfolio
Global Presence & Portfolio Operating company-wise breakup of sales Business segment-wise breakup of sales YTD 20-21 YTD 20-21 2% 3% 2% 3% 9% 4% 26% 6% 18% 8% 13% 62% 24% 20% Thin PET Film Coated Film Polyplex USA Polyplex India OPP Thick PET Film Polyplex Thailand Polyplex Turkey CPP/Blown PP Chips
Slide 10: Industry leading scale & vertical integration
Industry leading scale & vertical integration Resin* Base Films* Value Added Films* PET Film Resin Recycled Resin# PET Thin PET Thick BOPP CPP Blown PP Metallized Holography Coated TMP (MT) (MT) (MT) (MT) (MT) (MT) (MT) (MT) (MT) (Million SQM) (Million SQM) 0 0 7 55,000 35,000 3, 4,080 257 83 India
Slide 11: Industry leading cost structure
Industry leading cost structure Polyplex CUF vs Industry (Thin PET Film) Enhancing Operational Excellence 2,25,100 99% 100% 101% 110% Industry leader with near 100% 90% 91% 95% Capacity Utilization through • Implementing Kaizens to business cycles improve productivity and 1,68,825 83% business proce
Slide 12: Strong financial & operational track record
Strong financial & operational track record !11
Slide 13: Q3 20-21 Performance Snapshot
Q3 20-21 Performance Snapshot QoQ Growth YoY Growth (Q3 20-21 v/s Q2 20-21) (Q3 20-21 v/s Q3 19-20) Sales Volume 3% 18% (All Films) 80,283 MT Sales Revenue# 1% 14% 1,234 INR Crores Normalized EBITDA* 2% 45% 343 INR Crores PAT (Before Minority) 120% 81% 225 INR Crores EPS 41.84 INR/Share 72% 89% Fact
Slide 14: YTD 20-21 Performance Snapshot
YTD 20-21 Performance Snapshot YTD Growth (YTD 20-21 v/s YTD 19-20) Sales Volume 15% (All Films) 228,332 MT Sales Revenue# 10% 3,612 INR Crores Normalized EBITDA* 41% 980 INR Crores PAT (Before Minority) 39% 657 INR Crores EPS^ 122.65 INR/Share 51% # Excludes other operating revenues * Normalised EB
Slide 15: Thin PET Film - Trend
Thin PET Film - Trend Thin PET Film* Sales Volume (MT) Ex-Factory Price - Thin PET Film* (USD/Kg) Value Addition** - Thin PET Film* (USD/Kg) 2.26 2,27,072 2.04 1.97 Q3 1.88 1.85 1.77 58,724 1,98,056 Q2 1.15 1,70,456 1,78,782 1.04 1.02 1.04 1.04 57,068 0.93 Q1 54,512 17-18 18-19 19-20 YTD 20-21 17-18
Slide 16: EBITDA
EBITDA Normalised EBITDA* - Trend Normalised EBITDA* (Q3 20-21 vs Q2 20-21) 1,310 1,306 17 1 2 16 4 26 983 350 367 368 370 343 337 337 343 INR Crores Q3 INR Crores 655 343 944 Q2 801 337 328 588 Q1 299 EBITDA Volume VA Rate VA Other Film & Other Fixed Cost Other EBITDA 17-18 18-19 19-20 YTD 20-21 Q2
Slide 17: Strong Financial Performance
Strong Financial Performance Sales Revenue* (INR Crores) Operating Cash Flow Deployment Trend (INR Crores) 4,816 21 37 261 Q3 1,234 36 4,545 4,465 Q2 74 32 3,551 236 1,223 Q1 209 255 1,155 17-18 18-19 19-20 YTD 20-21 Annualised * Excludes other operating revenues 199 Effective Tax Rate (Tax/PBT) 472
Slide 18: Strong Liquidity
Strong Liquidity Despite major Capex, D/E net cash positive due to generation of 500 472 4 robust free cash flow from operations 370 375 341 3 250 2 137 125 1 0 0 0 0 17-18 18-19 19-20 YTD 20-21 Net Debt/Equity (times) Capex (INR Crores) Cash & Debt Position as on 31st Dec 2020 INR Crores 1,573 1,01
Slide 19: Strong Financial Performance
Strong Financial Performance EPS^ (INR/Share) Dividend Div Per Share (INR/Share) Div Yield %* 23.62% 147 163.53 Q3 41.84 132 10.17% 8.22% Q2 24.37 51 103.19 88.18 31 3.45% 40 Q1 56.26 30 49.85 17 10 20 17 15 17-18 18-19 19-20 YTD 20-21 17-18 18-19 19-20 YTD 20-21 Annualised * Average stock price for
Slide 20: Total Shareholder's Return
Total Shareholder’s Return 1,615 Since 3,400 1,620 Last 1 Last 3 Last 5 1,408 Shareholder’s Return IPO year years years (1988) 1,236 2,550 1,117 1,215 (A) Total Returns* 1,064 980 952 INR Crores 916 850 - Polyplex 29% 21% 31% 22% 781 INR 1,700 717 703 810 - Nifty 500 - TRI 14% 6% 14% 12% - BSE Small
Slide 21: Awards
Awards Thai subsidiary PTL won the Money & Banking Awards 2020 in the ‘Best Public Company’ Category !20
Slide 22: Fourth Quarter 20-21 Guidance
Fourth Quarter 20-21 Guidance 287 337 343 299 242 217 236 248 Normalised EBITDA (INR Crores) Q1 19-20 Q2 19-20 Q3 19-20 Q4 19-20 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 The forward-looking statements reflect Polyplex’s expectations of its next quarter earnings. These are based on certain assumptions as
Slide 23: Continuous and high growth in demand
Continuous and high growth in demand !22
Slide 24: Global Demand Growth
Global Demand Growth 6,000 Retail format & 4,500 E-commerce Increasing Improved Environmental 3,000 5,219 5,555 Quality of Life 4,615 4,906 Awareness 3,938 4,091 4,344 PRIMARY 1,500 GROWTH Increasing DRIVERS Population 2018 2019 2020 2021F 2022F 2023F 2024F Consumerism Growth Global Thin PET Demand
Slide 25: Continuous Growth
Continuous Growth Polyplex growth more that the average market growth rate Capacity is in ‘000 MT 1100 1,065 Capacity CAGR 11% 986 880 863 827 642 652 666 660 618 629 635 440 448 455 440 287 220 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Base Film Resins (incl. Recycled) M
Slide 26: Stable earning across business cycles
Stable earning across business cycles !25
Slide 27: Value Chain
Value Chain NATURAL BASIC RAW PLASTIC & INTERMEDIATE RESOURCES PETROCHEMICALS MATERIALS PRODUCTS Ethylene MEG Packaging & Industrial Customers Film Grade PET Coating Natural Gas Resin Paraxylene PTA Base Films Metallizing Transfer Polypropylene/ PP/PE Resin Holography Metallized Polyethylene Paper O
Slide 28: Product Applications & Industry
Polyplex Example of Product Applications & Industry By Customer’s Industry 60% Food 40% Non-Food Personal Care - Food Label Health & Hygiene 73% Packaging Healthcare Products Retrot Pouch Susceptor Film Easy Peeling Lids Product Labels Wafer Bag Rice bags Liquid Packaging Electrical Optical Label Ot
Slide 29: Strong R&D Capability
Strong R&D Capability A separate R&D department 15 dedicated personnel in Focus on providing innovative registered with the Corporate R&D supplemented by solutions to customers. local technical service and R&D Department of Scientific and Collaborative Research with team having significant experienc
Slide 30: VA Stability
VA Stability PCL VA v/s China VA v/s Crude 75 75 69 69 63 63 Stable VA despite crude price volatility 62 50 $/Barrel 43 44 1.17 $/Kg 1.12 0.98 0.98 1.02 0.99 1.02 1.00 1.02 0.91 0.93 0.93 30 0.72 0.75 0.68 0.70 0.61 0.65 0.56 0.60 0.54 0.50 Q1 18-19 Q2 18-19 Q3 18-19 Q4 18-19 Q1 19-20 Q2 19-20 Q3 19
Slide 31: Grow Sustainable Business Line
Grow Sustainable Business Line Introduce Sustainable Products and Adopt Sustainable Process To response to global concern over plastic use and develop sustainable business, Polyplex aims to continue introducing sustainable plastic products and transform the business process to be more environmentall
Slide 32: Polyplex & Sustainability
Polyplex & Sustainability Ecoblue Limited, Thailand provides sustainable solutions for the packaging and apparel industry • US FDA & GRS approved 3D Pure rPET resin for bottle, film and polyester yarn applications • New state of the art facility being setup to provide complete solution for recycled
Slide 33: Industry Outlook
Industry Outlook OUTLOOK Expected Total Capacity in the Industry • Approx.1.67 Million Tons of Capacity (more than 64% in China) to be further added in Thin PET BOPET Thin Film by 2023 globally Unit:KMT • Changing cost dynamics may result in closure/underutilization of older lines • Constant up-grad
Slide 34: Growth Plans
Growth Plans Capital Cost Benefits related to on-going Other Projects: Projects Location Likely Start Up (In USD million) 1.Expansion of product portfolio Brownfield - BOPP Indonesia 53 H1 FY 21-22 Brownfield - BOPET USA 83 H2 FY 22-23 2.De-bottlenecking of existing film lines Other Projects India 3
Slide 35: Annexures
Annexures Contents • Shareholding Pattern • Group Structure !34
Slide 36: Shareholding Pattern
Shareholding Pattern • 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 the Company (as on 31st Dec’20)
Slide 37: Group Structure
Group Structure 100% 17.19% Public/Institutional Shareholder Polyplex Corporation Limited 49% 33.81% Polyplex (Asia) Pte. Ltd Polyplex (Thailand) Public Co. Ltd. 100% 66.50% 100% 100% 100% PAR LLC Eco Blue Ltd Polyplex America Holdings Inc. Polyplex (Singapore) Pte. Ltd. Polyplex Europa B.V. 100% 33
Slide 38: Disclaimer
Disclaimer • This presentation may contain forward-looking statements which are based on the Company’s current expectations and estimates about the industry, management’s beliefs and various other assumptions. These forward-looking statements are subject to various risks, uncertainties and other fac
Slide 39: Thank You
Thank You Polyplex Corporation Limited B-37, Sector-1, NOIDA Distt. Gautam Budh Nagar Uttar Pradesh-201 301 Board:+91.120.2443716-19 Symbol : POLYPLEX Fax:+91.120.2443723 & 24 Symbol : PTL ISIN : INE633B01018 Polyplex India Polyplex Thailand !38
Slide 40: Glossary
Glossary • EBITDA: Earning before interest, tax, depreciation and amortisation • PCL: Polyplex Corporation Limited • PTL: Polyplex (Thailand) Public Company Limited • PE: Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi • PU: Polyplex USA LLC • PFI: PT Polyplex Films Indonesia • WOS: