Slide 1: Cover letter to stock exchanges
15th May 2023 The Listing Department, The Manager The Manager, The Calcutta Stock The Department of The Listing Department, Exchange Ltd. Corporate Services, National Stock Exchange of 7, Lyons Range, BSE Limited, P. J. India Limited, Exchange Kolkata – 700001 Towers, Plaza, Dalal Street, Bandra Kur
Slide 2: FY23 Strategy Presentation
FY23 STRATEGY May 2023 PRESENTATION. NSE : LINC BSE : LINC Linc Limited Bloomberg : LINC:IN (formerly Linc Pen and Plastics Limited) 1
Slide 3: Inside this Presentation
Inside this Presentation. Executive Summary Industry Outlook LINC 2.0 Financial Snapshot 2
Slide 4: Who are we?
L NC lincpen.com LINC Who are we?.
Slide 5: A Leading Writing Instrument Company
A Leading Writing Instrument Company . ▪ Among Top 3 brands ▪ New Writing Instrument ▪ Global brand from ▪ Asia’s largest stationery in India for Writing brand launched in FY19 by Mitsubishi Pencil Co. Ltd, giant. • Linc Ltd. is the 3rd Instruments. Linc in MRP ₹10 and above Japan. largest writing s
Slide 6: With State of the Art Manufacturing Facilities
With State of the Art Manufacturing Facilities ▪ Manufacturing Facility at Serakole in West ▪ Manufacturing Facility at Umbergaon, Gujarat Bengal with plans in place to double the capacity ▪ Plant at Serakole was established in 1984 ▪ Plant at Umbergaon was established in 2017 Umbergaon Manufacturin
Slide 7: Trend of Financial Performance
Trend of Financial Performance . 8000 CAGR 24.7% 15.00% CAGR 7.3% CAGR 19.6% 40.0% 60,000 12.6% ₹ Lacs 31.2% 6000 30.0% 9.6% 6,136 10.00% 40,000 48,676 24.7% 15,197 39,699 23.8% 4000 20.0% 6.9% 36,694 35,496 20.3% 22.4% 4.0% 6.1% 9,805 3,826 5.00% 20,000 25,666 7,434 8,441 2000 10.0% 5,753 2,539 2,1
Slide 8: Leadership
Leadership. MR. DEEPAK JALAN MR. ANIL KOCHAR Managing director, Independent, Non-executive director, ▪ Commerce graduate with 37 years of experience ▪ Postgraduate in Commerce and LLB ▪ Responsible for the overall operations with a specialization in ▪ An eminent advisor on income tax matters interna
Slide 9: Industry Outlook
L NC lincpen.com Industry Outlook.
Slide 10: Global Writing Instrument Industry Opportunity
Global Writing Instrument Industry Opportunity. Global Writing Instrument Industry Share of Relevant Market Writing & Marking Instruments Market Size 34.8 ▪ The USA is estimated at US$4.7 Billion in the 2020 2027 year 2022. Billions 17.4 Ball & Gel Pen 36% 41% ▪ China is forecasted to reach a projec
Slide 11: Global Stationery Industry Opportunity
Global Stationery Industry Opportunity. Global Stationery Products Market Growth Drivers 217.9 ▪ Rising inclination towards higher education ▪ Demand from corporate sector ▪ Increase in customized and personalized stationery Billions 192.2 CAGR USD ▪ Increased literacy rate in the developing world 1
Slide 12: Opportunity in Indian Market
Opportunity in Indian Market. Indian Writing Instrument Industry Indian Education Industry Writing Instruments Market 1,863 ▪ 80% of revenue from pen below ₹ 15 per piece 225 ▪ Market for Pen below ₹ 15 growing at ~8% ▪ Market for Pen above ₹ 15 growing at ~ 10% Millions Billions 657 CAGR 12.3% USD
Slide 13: Pens - Global Trade Perspective
Pens - Global Trade Perspective Top Exporters of Ball Point Pens in 2021 477 Top Importers of Ball Point Pens in 2021 741 USD Millions USD Millions 516 201 174 232 230 147 123 96.4 86.7 84.8 73 71.7 71.5 73 66 63 51 45 China Japan France Germany India USA France Germany China UK Slovakia Switzerland
Slide 14: LINC 2.0
L NC LINC 2.0. lincpen.com 13
Slide 15: Evolution to Linc 2.0
Evolution to Linc 2.0. Full Effect of Pentonic Project Full Effect of Gel Pen Project Share of Pentonic Revenue Total Revenue reached ₹ 13,684 lacs increased to 17%, GM and EBITDA was ₹ 918 lacs expanded to ~ 25% due to higher GP of 46% on Pentonic 1999- 2004- 2018- 2019- 2022 2000 2005 2019 2020 On
Slide 16: Increased Touch Points
Increased Touch Points… Break-up of Region wise Touch Points FY’23 2,41,424 2,18,471 1,48,898 1,41,970 1,16,963 65,000 56,553 South India 50,000 East India 21% 5,000 24% 3,000 FY 19 FY 20 FY 21 FY 22 FY23 Total touch points Kiranas, Medical Stores, Pan Stores etc. ▪ India has over 10 Mn non-statione
Slide 17: Resulting in Broader Penetration Across India
…Resulting in Broader Penetration Across India. Revenue Share FY19 Revenue Share FY23 13.0% 16.0% East India 34.0% 14.0% 42.0% North India 20.0% West India 31.0% South India 30.0% Increasing footprint in West and South India and steadily moving towards a more homogenous presence across India 16
Slide 18: Increasing its Global Footprint As Well
Increasing it’s Global Footprint As Well. Europe Including Russia Value Growth North America Pen Exports from India - 2022 7.7% USD Millions over 2021 4.6% South & Central America (SA) 30 66% Middle East (ME) 41 80% Africa 43 38% South East Asia (SEA) 23 49% Total Exports 238 30% Middle East SE Asia
Slide 19: Focus on Higher Margin Products
Focus on Higher Margin Products. ▪ Pentonic brand introduced in FY19 as a minimalistic yet 29.9% contemporary pen, known for its aesthetics as well as writing 25.5% smoothness 20.0% 17.2% ▪ Positioned at ₹ 10 + segment, Pentonic’s GPM is ~ 42% 7.0% ▪ Increase in share of Pentonic in total revenue le
Slide 20: Inroads into Stationery Products
Inroads into Stationery Products. ▪ Targeting over ₹7,500 lacs topline by FY25 ▪ Deli offers a range of over 200 products in India ▪ Company to largely focus on Calculators & Scissors ▪ Deli should contribute at least 10 % of company’s revenue by FY25 ▪ Deli’s GPM is around 20% ▪ Deli has achieved t
Slide 21: Step-up the Existing Capacity
Step-up the Existing Capacity. Linc plans to increase its existing capacity at Gujarat from 10 lacs pen per day to 15 lacs pen per day in FY’25 & to 20 lacs pen per day subsequently FY’24 demand would be met by the existing capacity & stepping-up outsourcing, which has already been tied up Revenue p
Slide 22: ESG
ESG. Environment Social Governance ▪ Pentonic’s individual ▪ Strongly believes in ▪ Consistently endeavored plastic wrapper packaging diversity in the workforce to practice good has been consciously and has ~700 female Corporate Governance substituted with paper employees at Gujarat ▪ Believes such
Slide 23: Financial Snapshot
L NC lincpen.com LINC Financial Snapshot. 22
Slide 24: Annual Highlights (Cont..)
Annual Highlights (Cont..). ₹ Lacs Writing Instruments Other Products Writing Instruments Other Products Revenue Own Brands Licensed Brands Own Brands Licensed Brands Pentonic Linc & Others (Uni-Ball) Pentonic Linc & Others (Deli) FY23 14,109 22,884 6,648 142 1,363 2,497 Sales Contribution (%)
Slide 25: Annual Highlights (Cont..)
Annual Highlights (Cont..). Trade Channel Wise Break-up of Operating Revenue ₹ Lacs Writing Instruments Other Products 10,151 Exports 21% 7,635 Exports 23% 872 E commerce 2% 725 E commerce 2% 2,583 Modern Trade 1,454 5% Modern Trade 4% 1,757 Corporate 2,144 4% Corporate 7% 32,280 General Trade 20,89
Slide 26: Profit & Loss Summary
Profit & Loss Summary. ₹ Lacs Particulars FY19 FY20 FY21 FY22 FY23 Operating Income 36,694 39,699 25,666 35,496 48,676 Growth (%)3 10.6% 8.2% -35.4% 38.3% 37.1% Gross Profit 7,434 9,805 5,753 8,441 15,197 Gross Profit Margin 20.3% 24.7% 22.4% 23.8% 31.2% Operating EBITDA 2,539 3,826 1,017 2,153
Slide 27: Balance Sheet Summary
Balance Sheet Summary. ₹ Lacs Particulars FY19 FY20 FY21 FY22 FY23 Net Worth 12,337 13,697 13,471 14,285 17,722 Short Term Loans 3,813 2,352 812 299 - Long Term Loans 2,392 2,223 - - - Gross Debt 6,205 4,575 812 299 - Cash & Cash equivalent 11 13 14 9 760 Net Debt 6,194 4,562 797 290 (760) C
Slide 28: Ratios
Ratios. ₹ Lacs Particulars Ratios FY19 FY20 FY21 FY 22 FY23 Net Debt/Equity 0.50 0.33 0.06 0.02 (0.04) Solvency Ratios Net Debt/Op EBITDA 2.44 1.19 0.78 0.13 (0.12) EBIT/Interest 2.76 5.26 -0.39 15.81 79.78 Current Ratio 1.68 1.85 1.92 2.14 2.56 Fixed Asset Turnover 5.15 5.15 3.43 4.63 5.64 To
Slide 29: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation. FCF VS DIVIDEND PAYOUT 5000 60.0% 52% 4,723 4000 50.0% 4,338 3,835 ▪ Sharp increase in Free Cash Flow in FY23 40.0% ₹ LACS 3000 3,317 33% 30.0% ▪ Consistent Dividend Pay-out track record (Other than Covid years 2000 20% 12% 20.0% 2,044 744 due to cash conservatio
Slide 30: Shareholding Pattern
Shareholding Pattern. 26.8% Promoters Mitshubishi Pencil Co Ltd 0.3% 59.25% IEPF 0.2% NRI, FII etc. 13.5% Other Public As on 31st March’23 29
Slide 31: Why Linc?
Why Linc?. Education sector Strong Balance Sheet with experiencing strong tail zero debt and free cash in winds in India; hence hand; strong top & bottom demand for company’s line growth products will continue to grow Presence over all categories Strong in-house – Roller Pen, Gel Pen & Ball manufact
Slide 32: Disclaimer
Disclaimer. The information contained in this presentation is provided by Linc Limited (the “Company”). Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change without
Slide 33: Thank You
Thank You. For further details please contact Director Finance & CFO Investor Relations Advisor N.K.Dujari Email: investors@linclimited.com Phone No.: +91 9830042353 Sanjeev Sancheti Landline: +91 33 68262100 Email: ss@uirtus.in Phone No.: +91 9836244222 32