Cosmo First Limited · NSE:COSMOFIRST
Cosmo First — Cosmo Films — Investor Presentation (August 2020)
36 slides from Cosmo First's investor presentation, Aug 20, 2020
Slide 1: Exchange filing cover letter - Investor Presentation
SljS C05MO FILMS W engineered to Enhance CFL/SEC/SE/PS/2020-21/AUG/08 August 20,2020 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 - K
Slide 2: Investors Presentation
Investors Presentation Speciality Films for Sustainable Packaging Flexible Packaging I Lamination I Labeling I Synthetic Paper August 2020
Slide 3: Discussion Summary
Discussion Summary Company Overview India Industry – Key Dynamics and Capex Strategy Key Focus Areas - R&D, Sustainability and Specialty Company Financials Corporate Governance & Management Why Invest in Cosmo Films? Corporate Social Responsibility 1
Slide 4: 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 commodity and speciality films. I
Slide 5: Company Overview - Vision 2020
Company Overview - Vision 2020 “To be the most preferred global brand offering value added oriented films for packaging, labels, lamination and industrial applications.” 3
Slide 6: Company Overview - Milestones
Company Overview - Milestones 2007 2006 2005 2004 2003 2002 2001 1996 1988 1981 1st 2nd BOPP Line 3rd BOPP Line 4th BOPP Line Acquired 5th BOPP 6th BOPP line 2nd 3rd & 4th BOPP Line Extrusion 5th Gujarat Extrusion Line Coating Extrusion Propack Ltd 1st Extrusion Coating line line Coating Coating lin
Slide 7: Company Overview - Milestones
Company Overview - Milestones 2021 (P) 2020 2018 2017 2015 2016 2014 2012 2013 2011 2010 2008 2009 6th & 7th Acquired GBC 4th & 5th 2nd Korea 2nd Coating 9th BOPP 3rd CPP 10th BOPP CPP 6th Extrusion Commercial Coating line Masterbatch Metallizer Plant Line Line Coating Line-1 Line Line-2 Coating Coa
Slide 8: Company Overview - BOPP EDGE
Company Overview - BOPP EDGE MOISTURE BARRIER CHEMICALLY INERT LOW COF AND LOW SIT HEAT SEALABILITY Better Shelf Life, Suitable For Food & Good Machinability Suitable For Flexible Guard Sensitive Pharma At High Speeds Packaging Products LOW MELTING POINT & MOLECULAR WEIGHT EXCELLENT CLARITY & VERSAT
Slide 9: Company Overview - Product Portfolio
Company Overview - Product Portfolio SALES REVENUE 24% 38% 14% PACKAGING FILMS LAMINATION FILMS LABEL FILMS INDUSTRIAL FILMS 24% o Print & Pouching Films o Standard Range o Pressure Sensitive Label o Synthetic paper (Thermal Lamination & stock films o Tape & Textile Films o Barrier Films Wet Laminat
Slide 10: Manufacturing Footprint
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 INSTALLED CAPACITY
Slide 11: Company Overview - Customer Base
Company Overview - Customer Base CANADA GERMANY US KOREA JAPAN CHINA INDIA Sales FY 19-20 43% Export 57% Domestic Manufacturing Locations Sales Offices-Other than manufacturing locations 9
Slide 12: Key Customers
Key Customers Disclosure: All these are trademarks of respective Owners 10
Slide 13: Some of the brands we service
Some of the brands we service Disclosure: All these are trademarks of respective Owners 11
Slide 14: India Industry Dynamics and Capex Strategy
India Industry Dynamics and Capex Strategy Data Source: AMI/PCI/Other Independent Research and Industry Sources 12
Slide 15: Key Focus Areas
Key Focus Areas Speciality and Product Mix 1 Skewing Product Mix more towards specialty products, with consequently better margins and removing cyclability impact. R&D and Sustainability Focus More & more green practices in manufacturing, more films enabling 2 circular economy. Innovation led produc
Slide 16: Key Specialty Products launched during last few quarters
Key Specialty Products launched during last few quarters High Tear Resistant Synthetic Paper High Barrier Recyclable Film (CSP) o Specifically designed for use in tea o Originally designed for high tear resistant packaging, Noodles packaging or tag applications. Also offers moisture, Shampoo Sachets
Slide 17: Research and Development – A Snapshot
Research and Development – A Snapshot Focus areas Infrastructure Achievements • Identifying technical (product/applications) growth • R&D labs with most sophisticated • Recognition and certification by Department of areas through customer activities, exhibitions, equipments, one in India & one in th
Slide 18: Recent R&D led infrastructure Investment
Recent R&D led infrastructure Investment ▪ Investment of 1M$+ in new R&D centre in India ▪ New pilot line for customized product trials for film manufacturing, coating and lamination. ▪ Product Application Centre to validate print quality in-house ▪ Screen, UV Flexo, Direct Thermal and Thermal Trans
Slide 19: Sustainable Product Practices
Sustainable Product Practices 17 17
Slide 20: Customer Centricity to become Global preferred Player
Customer Centricity to become Global preferred Player Sales Team Customer Centric Culture Strengthening Sales team:- Creating Customer Centric local resources in several Culture:- Robust Service Offer, countries, dedicated resource CRM, Cross Functional for engagement with global Alignment brands, e
Slide 21: CRM- A 360 degree view for Customers
CRM- A 360 degree view for Customers Visibility to stage wise progress of order from order receipt to order dispatch Auto email alerts at every stage of order processing with the final email containing LR/BL documents Automated process of sending invoice, packing lists and shipment plan to cus
Slide 22: Initiatives to improve Quality Culture
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 sigma green belts las
Slide 23: Some Recent Achievements
Some Recent Achievements FY 2019-20 Ranked as 10th in the list of Fortune’s Next 500 midsize companies Brand Excellence Awards for Effective Use of Marketing Communication & for Engineering, Research and Development Sector Recognized as one of the top 500 corporates by Dun & Bradstreet Recei
Slide 24: COVID-19 Impact
COVID-19 Impact The Company continues to closely monitor the impact of the Covid-19 pandemic on all aspects of its business. As the Company is engaged in the business of flexible packaging films which is part of essential commodities, the pandemic had marginal impact on the business operations o
Slide 25: Pet Care Vertical
Pet Care Vertical The Company is doing pilot launch in NCR with investment commitment of about Rs 15 crores over next 18 months to ascertain viability of the Pet Care business to launch it at a larger scale. The overall investment is expected to remain marginal vis-à-vis size of existing busines
Slide 26: Financials
Financials INR Crores Audited FY 17-18 Audited FY 18-19 Audited FY 19-20 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 1,749 1,847 2,050 2,157 2,032 2,204 EBIDTA 181 168 169 181 262 280 EBIDTA % 10% 9% 8% 8% 13% 13% PBT 85 64 69 72 163 163 PAT 85 64 58
Slide 27: Financials Contd ..
Financials Contd .. INR Crs Unaudited Q1 FY 20-21 Audited Q4 FY 19-20 Unaudited Q1 FY 19-20 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 456 481 474 524 508 541 EBIDTA 91 93 74 78 55 61 EBIDTA % 20% 19% 16% 15% 11% 11% PBT 67 66 45 37 33 37 PAT 47 47
Slide 28: Financials - Key Ratios
Financials - Key Ratios Audited FY 17-18 Audited FY 18-19 Audited FY 19-20 Unaudited Q1 FY 20-21 Particulars Standalone Consolidate Standalone Consolidate Standalone Consolidate Standalone Consolidate ROE (%) 14% 11% 9% 9% 16% 16% 18% 18% ROCE (%)* 10% 9% 8% 9% 15% 14% 16% 16% Net Worth (INR Crores)
Slide 29: Corporate Governance - Board of Directors
Corporate Governance - Board of Directors Mr. Ashok Jaipuria Mr. A. K. Jain Mr. H. K. Agrawal Ms. Alpana Parida Chairman & Managing Director Whole Time Director Independent Director Independent Director Our founder Chairman & Managing Mr. Jain has over four decades of Mr. Agrawal has over four decad
Slide 30: Corporate Governance - Board of Directors (Contd..)
Corporate Governance - Board of Directors (Contd..) Mr. H. N. Sinor Mr. Anil Wadhwa Mr. Pratip Chaudhuri Independent Director Independent Director Non Executive Non Independent Director Mr. Wadhwa is an Ex- Member of the Indian Mr. H. N. Sinor has been a veteran banker, Mr. Pratip Chaudhuri holds a
Slide 31: 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 32: Why Invest in Cosmo Films?
Why Invest in Cosmo Films? Strong R&D focus – Uniquely positioned – Strong Financials (June 2020) Sustainability focus company during phase - Ahead in Product Development Curve Mix of Specialty and BOPP Films - ROE 18% of change in flexible packaging - Company will high R&D focus will have edge in w
Slide 33: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (%age) 44% Promoter Shareholding* Non-Promoter Shareholding* 56% Top Non-Promoter Shareholders*: 1. Mr. Anil Kumar Goel 1.3% 2. M/s Cosmo Films ESOP 2015 Trust 2.5% 3. Lucky Holdings Private Limited 1.2% 4. Aequitas Equity Scheme-I 0.9% 5. Principal Small Ca
Slide 34: Corporate Social Responsibility
Corporate Social Responsibility Some of the Flagship Programs (Education to 10,000+ 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 35: 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 36: Thank you
Thank you www.cosmofilms.com