Cosmo First Limited · NSE:COSMOFIRST
Cosmo First — Cosmo Films — Investor Presentation (January 2022)
42 slides from Cosmo First's investor presentation, Jan 25, 2022
Slide 1: Investor Presentation filing letter to stock exchanges
Ell= C05MO FILMS iSSI Engineered to Enhance CFL/SEC/SE/PS/2021-22/JAN/10 January 25,2022 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-400 001 Bandr
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 Petcare January 2022
Slide 3: Discussion Summary
Discussion Summary Why Cosmo Films? Key Focus Areas & Strategy – Specialty Films R&D & Sustainability Patents & trademark Specialty Chemicals and FMCG launch 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, Petcare business Speciality Films: Expanding Speciality portfolio (62% of revenue; 18% annual growth in last 3 years and 20% during FY21). Target 80%+ revenue from Speciality by 2023 end R&D
Slide 5: Specialty Films: Target 80%+ Revenue
Specialty Films …. Target 80%+ Revenue Grow specialty portfolio from 62% to 80%+ by 2023 end Each 1% shift in specialty adds EBITDA ~5 crores Complimentary growth in Specialized BOPET Line (Shrink labels, Heat reduction films and other high end specialty) – target 20%+ EBITDA Investing resou
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 21 24% 13% 55% 13% 14% PACKAGING FILMS LAMINATION FILMS LABEL FILMS INDUSTRIAL FILMS 55% 24% o Print & Pouching o Thermal Lamination & o Pressure Sensitive o Synthetic paper 20% Films Wet Lamination Label stock films o Cable Overwrap 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 n
Slide 11: Sustainability – Specific Focus Area
Sustainability – Specific Focus Area Offer mono layered structure for ease of recycling Several sustainability initiatives to: all plants are partially using renewable power as a source of energy reduce power consumption, rain water harvesting and reuse of effluent treated water. continu
Slide 12: Specialty Chemicals - Masterbatch
Specialty Chemicals - Masterbatch India Industry size 460k 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 13: 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 Cosmo plans to cater to niche specialty focused either to address current problem area for the Industry or significantly better product compared t
Slide 14: 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 15: 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 16: Financials
Financials INR Crs Unudited Q3 FY 21-22 Unudited Q2 FY 21-22 Unaudited Q3 FY 20-21 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 739 771 707 759 508 572 EBIDTA 132 161 128 152 101 112 EBIDTA % 18% 21% 18% 20% 20% 20% PBT 111 138 105 128 79 88 PAT 79 10
Slide 17: Financials – Some recent years
Financials – Some recent years INR Crores Audited FY 18-19 Audited FY 19-20 Audited FY 20-21 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 2,050 2,157 2,032 2,204 2,083 2,285 EBIDTA 169 181 262 280 398 430 EBIDTA % 8% 8% 13% 13% 19% 19% PBT 69 72 163 1
Slide 18: Financials - ROCE & ROE
Financials - ROCE & ROE ROCE and ROE are on increasing trend …. ROCE % ROE % 22% 30% 14% 16% 9% 9% 11% 9% Mar-18 Mar-19 Mar-20 Mar-21 Mar-18 Mar-19 Mar-20 Mar-21 16
Slide 19: Financials - Total Shareholders’ Return
Financials - Total Shareholders’ Return Consolidated net worth and book value per share 854 741 680 620 573 488 458 381 350 381 295 319 251 196 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Global Net Worth (INR Crores) Book Value per Share Consistent dividend payout record Dividend (% to
Slide 20: Financials - Consolidated Net Debt
Financials - Consolidated Net Debt Net Debt is coming down. At September 2021, net debt/EBITDA is at 0.9 times and net debt to equity at 0.5 times Global Net Debt 759 727 800 700 618 584 600 485 455 500 438 400 300 200 100 - Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 18
Slide 21: What Investors may expect?
What Investors may expect? Flexible Packaging Business: Transformation into primarily specialty films company with target 20% ROCE Specialty Chemicals: 20% revenue with 25% ROCE in about 4 years Petcare: Build and demerge the business vertical in medium term to drive shareholders valuation G
Slide 22: Annexure: Company Overview
Annexure: Company Overview 20
Slide 23: 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 24: Company Overview - Milestones
Company Overview - Milestones Petcare Textiles chemicals ►2016: CPP line-1 ►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 ►2010: 2nd ►It gradually scaled
Slide 25: 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 26: 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 27: Company Overview - Customer Base
Company Overview - Customer Base CANADA GERMANY US KOREA JAPAN CHINA INDIA Sales FY 20-21 43% Export 57% Domestic Manufacturing Locations Sales Offices-Other than manufacturing locations 25
Slide 28: Company Overview - Key Customers
Company Overview - Key Customers Disclosure: All these are trademarks of respective Owners 26
Slide 29: Company Overview - Some of the brands we service
Company Overview - Some of the brands we service Disclosure: All these are trademarks of respective Owners 27
Slide 30: India Industry Dynamics and Capex Strategy
India Industry Dynamics and Capex Strategy Data Source: AMI/PCI/Other Independent Research and Industry Sources 28
Slide 31: ESG Initiatives
ESG Initiatives For detail report please refer below link: https://www.cosmofilms.com/uploads/investor_relations/Sustainability Report Cosmo Films-17th January.pdf
Slide 32: ESG Initiatives (Contd..)
ESG Initiatives (Contd..) For detail report please refer below link: https://www.cosmofilms.com/uploads/investor_relations/Sustainability Report Cosmo Films-17th January.pdf
Slide 33: 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 34: 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 35: 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 36: 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 37: 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 38: Some Recent Achievements
Some Recent Achievements FY 2020-21 • Bagged CII National 5S Excellence Awards 2020 • Best exporter awards in Aurangabad region under Nagpur Custom Commissionerate • WordStar Packaging Award 2021 in the Beverages category for Serializable Conduction Sealing Film • WorldStar Global Packaging Award 20
Slide 39: 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 40: Shareholding Pattern
Shareholding ShareholdingPattern Pattern Shareholding Pattern (%age) 44% Promoter Shareholding* Non-Promoter Shareholding* 56% Top Non-Promoter Shareholders*: 1. M/s Cosmo Films ESOP 2015 Trust 1.1% 2. Mr. Aequitas Equity Scheme I 1.0% 3. Acadian Emerging Markets 0.8% 4. Aequitas Investment Consulta
Slide 41: 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 42: Thank you
Thank you www.cosmofilms.com