Slide 1: Cover letter to stock exchanges
__------------POLypLEX November 18,2019 The Manager - Listing Department, The General Manager - Listing Department, . National Stock Exchange of India Limited, BSE Limited Exchange Plaza, NSE Building, Phii"oze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai- 400 001 Mumba
Slide 2: Second Quarter FY 19-20 Financial Results & Summary
Second Quarter FY 19-20 Financial Results & Summary Polyplex Corporation Limited (PCL) November 18, 2019
Slide 3: 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 4: Polyplex: At a Glance
Polyplex: At a Glance Q2 19-20 Highlights H1 19-20 Highlights 1,084 Cr -2% -7% 2,195 Cr -1% Sales Revenue# QoQ YoY Sales Revenue# YoY 228 Cr -5% +3% 469 Cr +14% Normalized EBITDA* QoQ YoY Normalized EBITDA* YoY (21% EBITDA Margin) (21% EBITDA Margin) # Excludes other operating revenues * Normalised
Slide 5: 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 !4
Slide 6: Global leadership position with industry leading scale & cost
Global leadership position with industry leading scale & cost !5
Slide 7: Global Leadership
Global Leadership Unique model of on-shore, off-shore and near-shore manufacturing Global #6 in PET Film* 550 413 Polyplex By Capacity (KMTPA) 275 Netherlands Korea USA Japan 138 Turkey Mexico China India Thailand 0 CIFU Group Hengli Group Uflex Industries Polyester Films SKC Co Limited DuPont-Teijin
Slide 8: Global Presence & Portfolio
Global Presence & Portfolio Operating company-wise breakup of sales Business segment-wise breakup of sales H1 19-20 H1 19-20 2% 3% 6% 4% 27% 7% 17% 9% 61% 14% 24% 26% Polyplex India Polyplex USA Thin PET Film Coated Film OPP Polyplex Thailand Polyplex Europa Thick PET Film CPP/Blown PP Chips Other o
Slide 9: Industry leading scale & vertical integration
Industry leading scale & vertical integration PET Film Resin* Base Films* Coated/Value Added Films* (MT) PET Thin PET Thick BOPP CPP Blown PP Metallized Holography Coated TMP (MT) (MT) (MT) (MT) (MT) (MT) (MT) (Million SQM) (Million SQM) 55,000 35,000 34,613 4,080 286 83 India 77,600 42,000 28,800 1
Slide 10: Industry leading cost structure
Industry leading cost structure Polyplex CUF vs Industry (Thin PET) 2,00,000 1.02 0.7 110% 99% 102% Industry leader with near 100% 95% 1,50,000 90% 91% 95,109 83% Capacity Utilization through 84% 76% 76% business cycles 70% 70% 72% 69% 1,00,000 55% 1,67,379 1,68,870 1,76,742 1,84,300 • Globally one
Slide 11: Strong financial & operational track record
Strong financial & operational track record !10
Slide 12: Q2 19-20 Performance Snapshot
Q2 19-20 Performance Snapshot QoQ Growth YoY Growth (Q2 19-20 v/s Q1 19-20) (Q2 19-20 v/s Q2 18-19) Sales Volume -1% Flat (All Films) 64,535 MT Sales Revenue# -2% -7% 1,084 INR Crores Normalized EBITDA -5% 3% 228 INR Crores PAT 26% 22% 194 INR Crores EPS 33.48 INR/Share 32% 19% H1 19-20 ROCE (Annual
Slide 13: Thin PET Film - Trend
Thin PET Film - Trend Thin PET Film (Plain+Met) Sales Volume* (MT) Ex-Factory Price - Thin PET Film (Plain+Met) USD/Kg Value Addition - Thin PET Film (Plain+Met) ** USD/Kg 2.26 93,105 2.20 2.11 1.97 1.75 1,78,782 1,86,210 1,64,933 1,70,456 Q2 45,819 1.07 1.04 1.05 0.93 0.81 Q1 47,286 16-17 17-18 18-
Slide 14: Normalised EBITDA
Normalised EBITDA Normalised EBITDA* - Trend 21% 1,000 18% 21% 16% 17% 750 16% INR Crores 500 938 11% 798 Q2 228 250 501 595 5% Q1 241 16-17 17-18 18-19 H1 19-20 Annualised Normalised EBITDA Normalised EBITDA as % of Sales Revenue Normalised EBITDA* (Q2 19-20 vs Q1 19-20) 24,085 -1,137 1,187 22,770
Slide 15: Strong Financial Performance
Strong Financial Performance Sales Revenue* (INR Crores) PAT (INR Crores) 2,195 348 4,545 4,390 696 Q2 Q2 584 3,180 3,551 1,084 194 Higher mainly due to FX gains 361 on reinstatement Q1 284 1,111 Q1 of long term loans 154 16-17 H1 19-20 H1 19-20 17-18 18-19 16-17 17-18 18-19 Annualised Annualised Op
Slide 16: Strong Financial Performance
Strong Financial Performance EPS (Rs/Share) Dividend Div Per Share (Rs/Share) Div Yield %* 58.81 10.17% 60 11.00% 8.22% 103.19 117.62 45 8.25% Q2 72.44 33.48 30 51 5.50% 49.85 2.21% 40 Q1 15 2.75% 25.33 7 16-17 17-18 18-19 H1 19-20 16-17 17-18 18-19 * Average stock price for the period has been cons
Slide 17: Strong Liquidity
Strong Liquidity 400 Despite significant Capex, 370 4.00 D/E - Net Cash Positive 315 300 3.00 200 2.00 137 100 72 1.00 0 0 0 0 16-17 17-18 18-19 H1 19-20 Net Debt/Equity (times) Capex (INR Crores) Cash & Debt Position as on 30th Sep 2019 INR Crores 926 596 152 182 Polyplex Corporation Limited & Poly
Slide 18: Third Quarter 19-20 Guidance
Third Quarter 19-20 Guidance 223 221 241 228 188 191 198 Normalised EBITDA (INR Crores) Q1 18-19 Q2 18-19 Q3 18-19 Q4 18-19 Q1 19-20 Q2 19-20 Q3 19-20 Stable profitability despite near term effect of Indonesia Operations ramping up The forward-looking statements reflect Polyplex’s expectations of its
Slide 19: Continuous and high growth in demand
Continuous and high growth in demand !18
Slide 20: Global Demand Growth
Global Demand Growth 4,800 3,600 Increasing Improved Environmental 2,400 4,410 4,707 Quality of Life 3,608 3,863 4,131 Awareness 2,985 3,169 3,369 PRIMARY 1,200 GROWTH Increasing DRIVERS Population 2014 2015 2016 2017 2018 2019 2020 2021 Consumerism Growth Global Thin PET Demand Growth (KMTPA) Urban
Slide 21: Continuous Growth
Continuous Growth Polyplex growth more that the average market growth rate Capacity is in ‘000 MT 950 904 Capacity CAGR 10% 813 813 760 639 649 654 614 624 631 570 440 448 455 380 287 190 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Base Film Metallised Film (incl. Holo & TMP) Re
Slide 22: Stable earning across business cycles
Stable earning across business cycles !21
Slide 23: Value Chain
Value Chain NATURAL BASIC RAW PLASTIC & INTERMEDIATE RESOURCES PETROCHEMICALS MATERIALS PRODUCTS Ethylene MEG Packaging & Industrial Customers Film Grade PET Coating Natural Gas Film Paraxylene PTA Base Films Metallizing Transfer Polypropylene PP Resin Holography Metallized Paper Oil Paper Polyplex’
Slide 24: Product Applications & Sales Mix - H1 19-20
Product Applications & Sales Mix - H1 19-20 Sachet Pack Susceptor Film 71% Stand up Pouch Packaging Can Lamination Easy Peeling Lids Customers Aroma Pack Spounted Pack Ready 2 Eat Pack PV Backsheets Electrical Grade 29% Electronic Grade Industrial Window Films Optical Grade Customers Liner Grade Con
Slide 25: Strong R&D Capability
Strong R&D Capability A separate R&D department 18 + dedicated personnel Focus on providing innovative registered with the having significant experience solutions to customers. Department of Scientific and in chemicals, coatings, resin, Collaborative Research with Industrial Research (DSIR), custome
Slide 26: VA Stability
VA Stability Stable VA despite crude price volatility Polyplex VA v/s China VA (SCI) v/s Crude 2.00 75 75 80 67 69 69 1.71 61 63 62 54 52 60 1.43 46 49 50 46 $/ Barrel 1.14 0.98 0.98 1.02 0.99 0.93 0.93 $/Kg 0.84 0.85 0.90 0.84 0.91 0.82 40 0.86 0.73 0.72 0.56 0.54 0.6 0.61 0.49 0.5 0.51 0.57 0.38 0
Slide 27: Polyplex & Sustainability
Polyplex & Sustainability Minimize product impact through optimized product design: Portfolio • Down-gauging 8-10μ • RPET with up to 90% PCR content Target Product: • BioPET - Bio content 30% • Co-create design using principles of circular economy • Biodegradable film • Mono material (Low SIT heat s
Slide 28: Industry Outlook
Industry Outlook OUTLOOK • Approx.0.8 Million Tons of Capacity to be added in Thin PET in next 2-3 years globally • Changing cost dynamics may result in closure/underutilization of older lines • Constantly upgrading technology (10.6 mtr wide line) to remain a long term threat to industry players • R
Slide 29: Growth Plans
Growth Plans Capital Cost Projects Location Likely Start Up (In USD million) PET Film Plant & Metallizer - Started in Nov’19 GreenField - BOPET Indonesia 80 Resin Plant to start by Q4 FY 19-20 BrownField - BOPET Indonesia 48 H1 FY 21-22 India 10 Upto Q1 FY 20-21 Other Projects Overseas 22 Upto Q4 FY
Slide 30: Annexures
Annexures Contents • Shareholding Pattern • Group Structure !29
Slide 31: 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 30th Sep’19)
Slide 32: Group Structure
Group Structure Polyplex Corporation Limited 100% 17.19% Public/Institutional Shareholder (PCL/Polyplex India) INDIA 49% Polyplex (Asia) Pte. Ltd Polyplex (Thailand) Public Co. Ltd. 33.81% (PAPL/Polyplex Asia) (PTL/Polyplex Thailand) SINGAPORE THAILAND 100% 66.50% 100% 100% 100% PAR LLC EcoBlue Ltd
Slide 33: 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 Fax:+91.120.2443723 & 24 !32