Slide 1: Cover letter to stock exchanges
Date: 21st May, 2022 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 Subje
Slide 2: Investor Presentation May 2022
stor Presentation JSTRIES LTD. May, 2022
Slide 3: Forward-looking statements 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 cause actual results to diff
Slide 4: About Us, Ester 2.0, Investment Thesis, Business Overview, Q4 FY22
About Us Ester 2.0 Investment Thesis Business Overview Q4 FY22 Performance 3
Slide 5: Diversified business portfolio and sales mix FY22
Sales Mix (FY22) Diversified business portfolio Polyester Comprehensive product suite Films 67% State-of-the-art manufacturing facilities Specialty Global footprint Polymers 12% Experienced management team Engineering Plastics 21% Strong Financial profile 4
Slide 6: Key facts: incorporation, headquarters, footprint, rating
1985 GURGAON, INDIA #3 Year of Incorporation Corporate Headquarters Business Segments* 43 COUNTRIES 658 CRISIL A (stable outlook) Global Footprint People Credit Rating (Long Term) * PF - Polyester Film; SP - Specialty Polymers; EP - Engineering Plastics 5
Slide 7: Manufacturing facilities and headquarters locations
Sitarganj Haryana Uttarakhand Gurgaon Khatima Telangana* Corporate Headquarter Manufacturing facility *New BOPET Film plant under implementation 6
Slide 8: We serve more than 40 countries
We serve more than 40 Countries 7
Slide 9: Ester 2.0
ESTER INDUSTRIES LTD. Ester 2.0 Company “Specialty
Slide 10: Ester 2.0: knowledge, innovation, customization, technology
Knowledge Innovation ESTER Customization 2.0 Technology 9
Slide 11: Ester 1.0 achievements and Ester 2.0
Ester 1.0 Ester 2.0 Achievements Specialty Polymer SBU o Largely patent protected – Revenues high entry barriers (FY12-FY16) (FY17-FY22) o High sustainable margins Commoditized product 2.4% CAGR 14.7% CAGR o High growth potential portfolio Film SBU Limited bargaining EBITDA o Improved produc
Slide 12: Revenues, EBITDA, margins and PAT FY12-FY22
Revenues (Rs.cr) EBITDA (Rs.cr) 1,405 236 243 886 928 896 771 1,028 1,039 992 189 700 707 824 108 74 71 70 66 35 41 42 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19FY20 FY21 FY22 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19FY20 FY21 FY22 EBITDA Margins (%) PAT (Rs.cr) 142 139 24.6% 100 19.1% 17.9% 31 8 4 7 5 8
Slide 13: Debt, ROCE and dividend payout
Debt (Rs.cr) ROCE (%) 335 363 348 31% 304 300 290 28% 242 267 26% 237 142 157 14% 8% 7% 7% 7% 3% 3% 3% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19FY20 FY21 FY22 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19FY20 FY21 FY22 Dividend Payout (%) 37.2% 20.9% 19.9% 19.8% 13.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% FY12 FY13
Slide 14: WACC vs FY22 ROCE
26% 9% WACC FY22 ROCE *Source: Bloomberg 13
Slide 15: Shareholding pattern
34.23 35.62 40.86 40.86 % % % % Mar 19 59.14 Mar 20 59.14 Mar 21 Mar 22 64.04 64.04 % % 1.73% % 0.34% % 14
Slide 16: Specialty polymers and polyester films highlights
Specialty Polymers - Polyester Films - High Largely IP protected share of value added product portfolio products Rewarding shareholders with Scaling up capacities dividend Strong balance sheet 15
Slide 17: Green initiatives, focus on sustainability
Green Initiatives Focus On Sustainability BIO-BASED Fuel Consumption oo $ PVC FREE fe oa wist Wrap / Shrink Film) BIO-BASED Raw Material me Pvec FREE PAC (Transparent High B Ss PACKAGING MATERIA Reduction/ Recycling y \3 IL REPLACEMENT & lized High Barrier film) ® w=
Slide 18: Specialty Polymer
Se 4 q ESTER INDUSTRIES LTD. Specialty Polymer
Slide 19: Largely IP protected business
Customer High entry retention Largely IP High barriers – ensured as Marquee Export protected margin patent largely clientele oriented business business protected patent protected
Slide 20: Business opportunity: stain resistant carpet master batch
Problem Solution Business Opportunity USA, largest High cost towards carpet stain Flexible low cost solution producer of Carpets removal Ester has developed a PET based & Rugs boasts of an industry with Stain marks on (nylon) carpets given master batch, which imparts permanent spillover / spilla
Slide 21: Innovative PBT polymers supplied to a global chemical leader
Regularly manufacturing & supplying Innovative Signed ‘Manufacture and Supply Agreement’ with a Polybutylene Terephthalate (PBT) polymers to a global global chemical leader in April 2019 effective 1st April chemical leader 2019 for 2 years for 400 MT per annum Ester Industries is among the only comp
Slide 22: Strong product pipeline
MB07 Strong o MB07 is added to make polyester dye-able with deeper and darker color o Achieved customer approval after 3 years of relentless hard work o Started commercial sales with good volumes o Steady state business going forward product o Achieved sales of 830 MT during FY22 pipeline LMC 03
Slide 23: Applications
Consumer electronics Polyethylene Terephthalate (PET) Textile – Flame Retardant, Deep dyeable master batches, Cationic dyeable master batch Applications Products Polybutylene Terephthalate (PBT) Carpets – Stain Resistant Master Batches Carpets – Deep Dyeable Master Batch Polyethylene Naphthalate (PE
Slide 24: Specialty Polymers Q4 FY22 performance
Figs. in crores Q4 Q4 Q3 FY2 Particulars % % FY21 % FY22 FY21 FY22 2 Volumes (MT) Sales Volume(MT) 903 821 10.0 953 (5.2) 3600 2316 55.4 Q4FY21 Q4FY22 Revenue 47 24 95.8 44 6.8 173 59 191.0 EBIT 14 8 75.0 12 16.7 56 14 300.0 255 Innovative PBT Margins 28.9 35.3 (640bps) 27.3 +160bps 32.2 23.2 +900bp
Slide 25: Packaging Film Business
ESTER INDUSTRIES LTD. Packaging Film Business 24
Slide 26: Global and domestic BOPET scenario
Global Scenario: Domestic Scenario: Demand growth of 6% - 6.5% Strong double digit growth rate of 11%-13% pa over past 5 years BOPET film used in flexible packaging applications will continue to be the key end use sector, Low per capita consumption of BOPET; new accounting for nearly 60% of
Slide 27: Film business capacities and key facts
60,000 13,200 #30+ MTPA MTPA Years of experience Polyester Film Mfg. capacity Metallized Polyester Film Mfg. capacity 67,000 48,000 43 22% MTPA MTPA* Export market Share of value-added Polyethylene Terephthalate BOPET Film Capacity expansion (# of countries) products (FY22) (Polyester) chips Mfg. ca
Slide 28: Film EBIT, value added share and domestic/export mix
Value Added (%) *Film business (excl EBIT from chips) Domestic Exports 22 (Rs.cr) FY19 FY20 FY21 FY22 20 17 17 EBIT 118 180 219 150 30 23 29 30 Margins (%) 16.4 24.5 31.9 17.8 70 77 71 70 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 *Disproportionate drop in margins (%) due to higher revenues on account
Slide 29: Applications
White Opaque High Clear Flexible Packaging Applications High Barrier Embossable Barrier Packaging Products Heat Saleable Twist Wrap Embossing Shrink film Anti - Static Lidding Metalized High Matte Label & Graphics Barrier 28
Slide 30: Film business Q4 FY22 performance
Figs. in cr Particulars Q4FY22 Q4FY21 % Q3 FY22 % FY22 FY21 % Sales 14,028 14,408 (2.6) 14,248 (1.5) 58,151 56,336 3.2 (Vol’s MT) Revenue* 256 195 31.2 244 4.9 938 727 29.0 EBIT+ 49 43 11.3 40 22.5 153 219 (30.1) Margins (%) 19.2 22.2 (300bps) 16.2 +300bps 16.3 30.1 (1,380bps) * Revenue includes chi
Slide 31: Capex of Rs.622cr and new BOPET plant
Capex of Rs.622cr 18% 17% to result in.. EBITDA Margin (%) 110 92 EBITDA 212 Revenue Internal Accruals Debt 597 537 410 Capex FY24 FY25 Setting up state of the art 48,000 MTPA BOPET Film plant and 8,333 MTPA Metallized BOPET Film plant in Telangana through Wholly Owned Subsidiary Achieved financ
Slide 32: Engineering Plastics
Engineering Plastics
Slide 33: Engineering Plastics Q4 FY22 performance
Figs. in cr Particulars Q4 FY22 Q4 FY21 % Q3 FY22 % FY22 FY21 % Sales 3,246 4,175 (22.3) 2,911 11.5 11,530 13,419 (14.1) (Vol’s MT) Revenue 85 78 8.9 77 10.4 295 205 43.9 EBIT 12 22 (45.5) 16 (25.0) 68 41 65.9 Margins (%) 14.4 27.9 (1350 bps) 21.3 (690 bps) 23.1 19.8 +330bps Revenue growth of 9% o
Slide 34: Sale of Engineering Plastics business to Radici
Engineering Plastics business not considered as Core business by the management Entered into a definitive agreement to sell its Engineering Plastic Business to Radici Plastics India Private Limited in an all-cash slump sales transaction, amounting to Rs 289.33 crore (subject to adjustments speci
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Slide 36: Consolidated Q4 FY22 financial results
Particulars Q4 FY22 Q4 FY21 % Q3 FY22 % FY22 FY21 % (Rs.cr) Revenues 388 297 30.6 365 6.3 1,406 992 41.7 EBITDA* 65 60 8.3 64 1.6 252 244 3.3 Margins 16.8 20.2 (340 bps) 17.4 (60 bps) 17.9 24.6 (670 bps) (%) PAT 33 34 (2.9) 36 (8.3) 139 142 (2.1) Margins 8.5 11.4 (290 bps) 9.7 (120 bps) 9.9 14.3 (44
Slide 37: Chairman's comments on results
Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said “We have ended the year on a strong note with Q4 delivering a revenue growth in excess of 30%, driven by strong sales momentum across our businesses. Specialty Polymer business returned stellar performance during the ye
Slide 38: About Us and contact information
About Us: (CIN :- L24111UR1985PLC015063) Incorporated in 1985, Ester Industries Limited (EIL) is an ISO 9001:2008,ISO 22000:2005,TS16949:2002 certified Company engaged in the manufacture of polyester films, specialty polymers, engineering plastics and polyester chips with manufacturing facilities lo
Slide 39: Thank You
“nitiyy EES oe ly ye O? SNE oe ent --t | _ ht Alte en ar Wee ene ae r=, "i= - ge Re Re Sey i) is Lagi Thy ng -* AW SSE.) Meufag t he : ESTER Thank You INDUSTRIES LTD.