Slide 1: Cover letter to stock exchanges
Date: 6th August, 2020 BSE Limited National Stock Exchange of India Limited Department of Corporate services Exchange Plaza, Phirojee Jeejeebhoy Towers Plot no. C/1, G Block, Dalal Street, Mumbai – 400023 Bandra‐Kurla Complex, Bandra (E), Mumbai – 400051 Scrip Code: 500136 Symbol: ESTER Dear Sir Sub
Slide 2: Q1 FY21 Results Presentation
August 6, 2020 Q1 FY21 RESULTS PRESENTATION
Slide 3: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could 2 cause actual re
Slide 4: Q1FY21 Performance Overview
Q1FY21 Performance Overview
Slide 5: Financial Summary
Financial Summary Revenue (Rs. Cr) Lockdown led manufacturing and 284 supply disruption impacts revenue; 189 (34%) operations have subsequently picked up pace and running close to pre Figs in cr. Q1 FY20 Q1 FY21 COVID levels EBITDA (Rs. Cr) Margins (%) Margin improvement in Film SBU due 54 52 to fav
Slide 6: Debt rationalization
Debt rationalization Focused on improving Debt/EBITDA (x) by paying off debt Term Debt Repayment Interest Bearing Debt (Rs. crore) Interest Bearing Debt / Annualised EBITDA (x) 44.1 43.6 38.3 242.5 34.6 201.3 171.5 24.7 23.8 157.4 142.0 2.13 98.6 0.95 0.79 0.89 0.72 0.47 FY17 FY18 FY19 FY20 FY21E FY
Slide 7: Chairman's Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “Revenue from operations for the quarter were expectedly lower owing to lockdown led disruptions. Nonetheless, despite lower revenue generation, margin expansion in Film due to improved market condit
Slide 8: Specialty Polymers
Specialty Polymers
Slide 9: Specialty Polymer – The Catalyst
Specialty Polymer – The Catalyst 7 19 High entry barriers - Patents Product Patent protected filed portfolio business (Product & process) 8 30,000MTPA 30%+ Production Capacity EBIT margins on achieving of adequate scale of operations
Slide 10: Specialty Polymers Business overview
Specialty Polymers • Adverse effect of Covid – 19 & lockdown on demand in USA impacted Revenue EBIT Margins (%) sales in Q1FY21 73 • Demand for innovative PBT continues to remain firm 38.4 19.6 38.0 • Expect revival in demand for MB – 03 by end of current financial year Figs in cr. as economic activ
Slide 11: Strong product portfolio to drive momentum in FY21
Strong product portfolio to drive momentum in FY21 Partners with a Global Chemical Leader in Manufacturing innovative Polybutylene Terephthalate (PBT) Signed ‘Manufacture and Supply Agreement’ with a global chemical leader in April 2019 effective 1st April 2019 Agreement is renewable by mutual
Slide 12: Patent Status
Patent Status Product approval Product Code Product Description Status of Patent Application from customer ESTER HR-03 Hot Fill PET by normal ISBM Granted in USA and filed in Approved Packaging India, Europe ESPET MB-03 Masterbatch Sulfonated PET Granted in USA and filed in Approved Stain Resistance
Slide 13: Specialty Polymers – Products & Applications
Specialty Polymers – Products & Applications Rigid Packaging – Hot-fill / Beer Kegs Polyethylene Terephthalate (PET) Textile – Flame Retardant, Deep dyeable master batches, Cationic dyeable master batch Applications Polybutylene Terephthalate (PBT) Products Carpets – Stain Resistant Master Batches P
Slide 14: Polyester Films
Polyester Films
Slide 15: Polyester Film – De-Commoditizing
Polyester Film – “De-Commoditizing” ` De-commoditizing the Mfg. Capacity -57,000MTPA Strong sector fundamentals – business by changing Polyester Films & 13,200 MTPA Stable pricing environment; product mix Metalized polyester films 14 ` #56 ~30% ` No. of countries Share of value added Cost rationaliz
Slide 16: Polyester Films Business overview
Polyester Films • Lockdown related manufacturing and supply related disruption Revenue EBIT Margins (%) resulted in lower revenue generation during the quarter 805 • Strong domestic and international demand translating to improved 21.9 34.1 22.7 margins Figs in cr. 226 161 183 50 55 • Commissioning
Slide 17: Potential impact of Covid-19 on the Film business
Potential impact of Covid-19 on the Film business Demand growth from Consumer Staples for flexible packaging is expected to remain strong Increased focus on health & hygiene products to result in further growth in demand Raw material prices are expected to remain benign in the near term Due
Slide 18: Film Business – Expect momentum to continue
Film Business – Expect momentum to continue Industry Dynamics Market size of Domestic BOPET films ~504000 tpa Domestic demand growing at 11%-12% Incremental supply of about 65000 TPA on account of commissioning of 2 new production lines in August & November 2019 already absorbed by the market
Slide 19: Polyester Films – Products & Applications
Polyester Films – Products & Applications White Opaque High Clear Flexible Packaging High Barrier Embossable Barrier Packaging Applications Products Heat Saleable Twist Wrap Embossing Shrink film Anti - Static Lidding Metalized High Barrier Matte Label & Graphics 18
Slide 20: Engineering Plastics
—+—-5 8 =) ——) —~3 5 —»!) INDUSTRIES LTD. Engineering Plastics
Slide 21: Engineering Plastics – Structurally positive; near term challenging
Engineering Plastics – “Structurally positive; near term challenging” #250 13,500MTPA “Estoplast” Product Portfolio Mfg. capacity Products marketed under the brand 20 Improving product / customer “Fastest Growing Enterprise mix, expanding exports & Processing (Engineering Polymers)” controlling cost
Slide 22: Engineering Plastics Business highlights
Engineering Plastics • Shutting down of operations in application industries impacted Revenue EBIT Margins (%) 161 demand and hence business’ profitability 2.8 5.4 • Return to normalcy has been faster than expected as achieved Figs in cr. 42 1 16 9 normal level of operations in the month of July 202
Slide 23: Engineering Plastics – Products & Applications
Engineering Plastics – Products & Applications Switchgear Industry Polybutylene Terephthalate (PBT) MCB, MCCB, RCCB, etc. Case, Cover & other Parts Polyethylene Terephthalate (PET) Lighting Industry Switches, Sockets, LED/CFL Holders, etc. Polyamide 6 (Nylon 6) Appliances Industry Knobs, Rotary Swit
Slide 24: Investor Contacts
Investor Contacts For more information contact: About Us: (CIN :- L24111UR1985PLC015063) Incorporated in 1985, Ester Industries Limited (EIL) is an ISO Pradeep Kumar Rustagi 50001:2018, ISO 9001:2015, ISO 14001:2015, IATF (Chief Financial Officer) 16949:2016, ISO 45001:2018 and Food Safety System Es