Uflex Limited · NSE:UFLEX
Uflex — Q1 FY2025 Earnings Presentation
50 slides from Uflex's earnings presentation, Aug 14, 2024
Slide 1: UFLEX Limited Earnings Presentation
UFLEX LIMITED Earnings Presentation August 14, 2024 Stock Code: BSE – 500148, NSE- UFLEX Noida, India Common Stock Outstanding: 72mn as of June 30, 2024
Slide 2: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 3: Key Highlights
➢ Chairman’s Message ➢ Industry Trends ➢ Performance Snapshot ➢ Performance and Business Highlights ➢ Capex Update Key ➢ Packaging Films Production volume ➢ Financial Summary Highlights ➢ Sustainability & circularity ➢ Product Innovation ➢ Business at a Glance ➢ Management & Shareholders 3
Slide 4: Chairman's Message
Chairman’s Message Mr. Ashok Chaturvedi, Chairman and Managing Director, “We had a strong quarter, especially in the packaging films and solutions segment where we have seen both year-on-year and quarter-on- quarter growth in volumes coupled with growth in margins. The PET chips plant in Panipat, In
Slide 5: Industry Trends
Industry Trends Domestic International ➢ Flexible packaging films gained substantial momentum ➢ Demand for PCR films continues to rise in the North in Q1 FY25 with improved business mix and profitability. American markets, driven by sustainability initiatives. ➢ Few additions and optimisation of the
Slide 6: Performance Snapshot
Performance Snapshot Q1FY25 Q1FY24 Q1FY25 Q1FY24 Revenue Capex Rs. 36,825 Mn Rs. 32,782 Mn Rs. 2,802 Mn Rs. 1,478 Mn (+5.3% QoQ, +12.3% YoY) (-3.4% QoQ, -19.0% YoY) EBITDA Rs. 4,403 Mn Rs. 3,037 Mn Net Debt (+0.9% QoQ, +45.0% YoY) (-20.7% QoQ, -58.1% YoY) +12.0% Margin +9.3% Margin Rs. 56,675 Mn Rs.
Slide 7: Q1FY25 - Performance Highlights
Q1FY25 - Performance Highlights Revenue was Rs. 36,825 Mn (+5.3% QoQ and +12.3% YoY) in Q1FY25 led by volume growth across packaging films and flexible packaging businesses along with improved market dynamics and better product mix. Normalized EBITDA was Rs. 4,652 Mn (+2.2% QoQ and +44.7% YoY) in Q1
Slide 8: Business Highlights
Business Highlights Capacity Expansion: Incurred total capex of Rs 2,802 Mn during the quarter, with two projects accounting for major portion i. Egypt: Rs. 1,145 million was allocated for developing a virgin PET chips line with a capacity of 2,16,000 MTPA in Egypt. This project, with a total invest
Slide 9: Capex Update
Capex Update Investing in future Capex in Q1 FY25 Incurred total Capex of Rs 2,802 Mn during the quarter, with two projects accounting for major portion ➢ a) Egypt: Rs. 1,145 million was allocated for developing a virgin PET chips line with a capacity of 2,16,000 MTPA. b) Rs. 1,194 million was alloc
Slide 10: Global Manufacturing Footprints
Global Manufacturing Footprints 16 Strategically located state-of-art manufacturing facilities across 5 continents and 9 countries Global Capacity of 1 million+ MTPA: ready to deliver anywhere in the world within 15 days Americas India Plant Capacity (MTPA) Capacity Plant US 30,000 (MTPA) Mexico 60,
Slide 11: Integrated Manufacturing Capacities Across Geographies
Integrated 1 Manufacturing Capacities Across Geographies Extensive suite of products in every region we operate Resins & molding Base packaging films Value add. p. films Value added products 2,40,300 MTPA 6,18,160 MTPA 2,45,600 MTPA Locations (Capacities rMLP Chemicals Aseptic data as of vPET rPET G
Slide 12: Packaging Films Production Volume Across Geographies
Packaging Films Production Volume Across Geographies Geographic % contribution to total Capacity, Production and Utilization Production volume change packaging film production vol. Q1 FY25 India Dubai Egypt Nigeria Russia Poland Hungary USA Mexico 11% 22% 7% Capacity Q1 FY25 Production (Utilization
Slide 13: Packaging and Chemicals Production Volume
Packaging and Chemicals Production Volume % breakdown of production vol. by Capacity, Production and Utilization Production volume change packaging products & chemicals Liquid packaging Flexible packaging Chemicals (Inks & Adhesives) Q1 FY25 22% 47,239 38% MTPQ Capacity Q1 FY25 Production (Utilizati
Slide 14: Financial Summary
➢ Key Standalone Financial Performance Financial ➢ Key Consolidated Financial Performance Summary ➢ Consolidated Financial Overview 14
Slide 15: Standalone P&L Summary
Standalone P&L Summary Particulars (Rs. Mn.) Q1 FY25 Q4 FY24 Q1 FY24 QoQ YoY Revenue 18,741 16,709 16,712 12.2% 12.1% EBITDA 2,233 2,250 2,056 (0.8%) 8.6% EBITDA Margin (%) 11.9% 13.5% 12.3% (160 bps) (40 bps) Depreciation and Amortization 795 747 730 6.4% 8.9% Finance Cost 803 666 596 20.6% 34.8% P
Slide 16: Consolidated P&L Summary
Consolidated P&L Summary Particulars (Rs. Mn.) Q1 FY25 Q4 FY24 Q1 FY24 QoQ YoY Total Revenue 36,825 34,967 32,782 5.3% 12.3% EBITDA 4,403 4,364 3,037 0.9% 45.0% EBITDA Margin (%) 12.0% 12.5% 9.3% (50 bps) 270 bps Depreciation and Amortization 1,734 1,651 1,605 5.0% 8.0% Finance costs 1,618 1,283 1,3
Slide 17: Spotlight on Key Financials over the year (standalone)
Spotlight on Key Financials over the year (standalone) Sales (Vol. MT) Revenue (Rs Mn) EBITDA (Rs Mn) and Margin 14.8% 16.5% 11.9% 11.2% 11.6% 11.9% 258,220 68,170 18,741 231,757 66,516 65,650 209,693 57,206 194,802 176,846 2,233 46,554 7,701 7,660 7,618 41,524 6,797 6,164 FY20 FY21 FY22 FY23 FY24 Q
Slide 18: Spotlight on Key Financials over the year (consolidated)
Spotlight on Key Financials over the year (consolidated) Sales (Vol. MT) Revenue (Rs Mn) Norm. EBITDA (Rs Mn) and Margin Packaging Business Packaging Films Business Domestic International 14.9% 20.5% 17.1% 14.0% 11.9% 12.6% 599,259 587,046 599,616 147,845 132,368 135,098 466,390 380,744 89,149 58% 7
Slide 19: Revenue Split (consolidated)
Revenue Split (consolidated) Q1FY25: Revenue split as % of total revenue FY24: Revenue split as % of total revenue Packaging, 28% Packaging, 29% Packaging Packaging films, 62% Rs. 36,538 films, 60% Rs. 1,33,636 Million Engineering, 3% Million Engineering, 2% Others VAP, 6% Others VAP, 8% Q1FY25: Geo
Slide 20: Q1 FY25 EBITDA Bridge
Q1 FY25 EBITDA Bridge Normalized EBITDA Bridge (Q1FY24 vs Q1FY25) Robust EBITDA growth: strong volume growth, improved realization and a better product mix • Revenue increased by 12.3% YoY and 5.3% QoQ, driven by improved pricing and robust volume growth in the packaging film business. • Strong oper
Slide 21: Q1 FY25 EBITDA to normalized PAT
Q1 FY25 EBITDA to normalized PAT EBITDA to Normalized PAT (Q1FY25) BASIC EPS Q1FY25 Weighted Av. No. of shares (millions) 72.2 Normalized earnings per share1 Rs 11.4 1. Normalized earnings per share based on adjusted net income excluding Exceptional items related to Nigeria, Egypt & Mexico currency
Slide 22: Debt Profile
Debt Profile Debt breakdown Split of total debt as of June 2024 Particulars (Rs. Mn) Jun-2024 Mar-2024 Dec-2023 Sep-2023 Long Term 52,040 49,620 49,101 47,894 Working Capital 15,040 15,065 14,550 12,701 Rs. 69,346 Working capital Short Term 2,266 2,511 2,164 1,592 Million 22% Total Debt 69,
Slide 23: Consolidated Financial Overview
Consolidated Financial Overview Key Financials Ratios FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 EBITDA Margin 12% 12% 13% 13% 13% 13% 15% 20% 17% 14% 12% PAT Margin 3% 4% 5% 5% 5% 4% 5% 9% 8% 3% -5% Net Debt to Equity 0.78 0.65 0.52 0.51 0.47 0.44 0.69 0.62 0.60 0.59 0.78 Net Debt to EB
Slide 24: Project Plastic Fix: Paving the way to a circular, greener, and sustainable future
At UFlex, circular economy innovations such as packaging Film: “ASCLEPIUS ”, made of 100% PCR PET (rPET) chips, and injection molding items made from recycled MLP granules, are paving the way for a more sustainable and greener tomorrow. ➢ Vision of circularity Project Plastic Fix: Paving ➢ ‘Project
Slide 25: Circularity
Circular vision of UFlex Extended Producer Responsibility (EPR) for Packaging Mechanism Collect Recycle/ Reuse Biodegrade Problem Solution Sustainable Space High C B Govt. Govt. EPR - Guidelines Circularity UFlex Project Plastic Fix Industry Compliance to EPR A Consumer Responsible Disposal Low High
Slide 26: Extended producer responsibility guidelines in India
Extended producer responsibility guidelines in India Under Plastic Waste Management (Amendment) Rules, 2022, the classification of plastics is defined below: • Category I: Rigid plastic packaging. • Category II: Flexible plastic packaging of a single layer/multilayer (more than one layer with differ
Slide 27: Sustainability: 'Project Plastic Fix' Continues to Turn Waste into Wealth
Sustainability: 'Project Plastic Fix’ Continues to Turn Waste into Wealth 2,569 MT PCR PET bottle trash or 185 million PET bottles recycled during the first quarter of current fiscal 2025 2,027 MT MLP waste recycled during Q1 FY25. 35.41%+ Increase in recycled/reused raw materials/inputs in our prod
Slide 28: Recycling Plants Across Geographies
Recycling Plants Across Geographies Global India Mexico Noida Particulars Capacity(MTPA) Particulars Capacity(MTPA) Post Consumer Recycle Post Consumer Recycle 15,000 9,600 (PCR) PET Chips (PCR) PET Chips Recycle MLP Granules 6,000 Recycle MLP Granules 6,000 Egypt Jammu Particulars Capacity(MTPA) Pa
Slide 29: Sustainability at UFLEX
Sustainability at UFLEX The Ultimate Destination Sustainability Initiatives towards Green Packaging ▪ First company in the world to recycle mix plastic waste ▪ Ensuring 100% Recyclability of Multi-Layer Packaging with RELAM 250 recycling machine that enables recycling of multi-layer packaging and re
Slide 30: Sustainability Initiatives Towards Green Packaging
Sustainability Initiatives Towards Green Packaging Converting Waste Plastic into Fuel with Pyrolysis Plant Asclepius Green Packaging Film to Create a Circular ▪ Commissioned Pyrolysis Plant, at Noida facility in October 2018 Economy ▪ Can convert 6 tonnes of discarded waste material generated every
Slide 31: Product Innovation: Chemicals - Radcure Products
Product Innovation Chemicals 1. Radcure Products Flexcure “Metal Spray” Gloss Coating for Flexcure “PVC Mirror Gloss” Coating for PVC Metal-decor applications flexible & rigid substrate applications Flexcure “Metal Spray Coating”, a new generation dual cure UV / Flexcure “Mirror Gloss Coating” is a
Slide 32: Product Innovation: Chemicals - Water Base Products
Product Innovation Chemicals 2. Water Base Products FLEXBOND PB 40 FLEXCOAT FP BARRIER COAT UF009 Flexbond PB 40 is water based general performance synthetic This water-based, eco-friendly primer free coating offers a high adhesive designed for handle & bottom pasting applications on oxygen barrier
Slide 33: Product Innovation: Chemicals - PU Products
Product Innovation Chemicals 3. PU Products Development of Polyurethane Acrylate FLEXBON R110A/FLEXBON R110C (FLEXCRYL 3333) Adhesive for flexible packaging offering superior wetting properties. These adhesives are highly effective on combinations The polyurethane acrylate resin is mainly used for p
Slide 34: Product Innovation: Flexible Packaging
Product Innovation Flexible Packaging UFlex converting division unveils innovative packaging solutions Pouches boost brand visibility on shelves and online by capturing immediate attention. They advance packaging design, providing innovative solutions to meet consumer needs while supporting a more s
Slide 35: Product Innovation: Holography
Product Innovation Holography Advanced holographic blister packaging solutions: A New Era of Counterfeit Deterrence UFlex Holography business unit has made notable penetration in the pharmaceutical packaging market with its advanced holographic blister packaging solutions. In the Q1 of 2024-25, the
Slide 36: Product Innovation: Acrylic Coated BOPP Films (1/2)
Product Innovation Films 1. Acrylic Coated BOPP Films (1/2) a) “B-TAL” ultra-low SIT (65°C) one side Acrylic coated transparent BOPP film. b) “B-TAA” ultra-low SIT (65°C) both side Acrylic coated transparent BOPP film. c) “B-TAO” ultra-low SIT (85°C) one side Acrylic coated transparent BOPP film. On
Slide 37: Product Innovation: Acrylic Coated BOPP Films (2/2)
Product Innovation Films 1. Acrylic Coated BOPP Films (2/2) 1. Food Packaging i. Flexible Pouches ii. Wraps and Films 2. Beverage Packaging 3. Cosmetic Packaging 4. Medicine Packaging 5. Adhesive Tapes 37
Slide 38: Product Innovation: Films
Product Innovation Films 2. “B-UNB-M” Outstanding Barrier Metallized 3. The “C-CPR-CH” Co-Extruded Transparent film BOPP Film (Non heat sealable version) with both sides treated and sealable The “B-UNB-M” is an outstanding barrier metallized BOPP film, having Co-Extruded Transparent CPP Film with do
Slide 39: Business at a Glance
➢ An overview Business ➢ Journey so far at a Glance ➢ Customer relationship ➢ One stop shop for packaging solutions 39
Slide 40: An Overview
An Overview Rich legacy of 40 years providing packaging solutions to our partners 1985 16 Established Manufacturing units 5000+ 1,073,690 MTPA1 Customer base global capacity* Presence across 150+ 10,000+ Workforce countries 1. Metric tonnes per annum (MTPA) ; 2. Post-Consumer Recycled polyethylene t
Slide 41: Journey so far: Growing as a Global Player in Flexible Packaging
Journey so far: Growing as a Global Player in Flexible Packaging Added films capacity Hungary (BOPP) , Doubling of Aseptic Packaging Nigeria (BOPET) 2021 2022 capacity in Sanand, Gujarat to 7 Bn & expanded Egypt Packs per year Diversified into (BOPP – Line 2); Holography business Added CPP & BOPET f
Slide 42: Enduring Customer Relationship
Enduring Customer Relationship Length of customer relationships Kolak Truda UPM American Dupont Nestle Snacks Foods P&G Pepsi Co Mondelez Bemis Amcor Huhtamaki Raflatac* Pkg Teijin films 8+ 8+ 8+ 5+ 7+ 10+ 8+ 9+ 6+ 9+ 8+ 9+ Our clients *Note: UPM is pioneer customer of 100% PCR Asclepius Films; All
Slide 43: Presence across all Verticals of Packaging Value Chain
Presence across all Verticals of Packaging Value Chain Process flow diagram Main feed stock Key downstream RM RM for films Packaging Flexible packaging business Aseptic films business packaging Ethylene MEG1 business NGL Ink & Flexi-tubes, BOPP8 Ethane, vPET resin Adhesives Lids and pouches BOPET7 P
Slide 44: One Stop Shop for Flexible Packaging Solutions
One Stop Shop for Flexible Packaging Solutions Holography Resins Offer services of: Anti-counterfeiting, brand Producer of virgin PET chips (films and bottles grade), aesthetics, textile value addition and brand recycled PET chips (film & bottle), recycled MLP protections granules and molding Printi
Slide 45: Management & Shareholders Information
➢ Management Team Management & ➢ Shareholding Pattern Shareholders Information ➢ Auditors Information 45
Slide 46: Management Team
Management Team Professional Management with an average experience of > 25 years in Business, Corporate, Project & Operational excellence 41 35 Jeevaraj Gopal Pillai, Whole Time Director, Director - Sustainability, Ashok Chaturvedi, Chairman & Managing Director President - Flexible Packaging and New
Slide 47: Management Team
Management Team Professional Management with an average experience of > 25 years in Business, Corporate, Project & Operational excellence 30 28 Chandan Chattaraj, President, Human Resources (India and Global) Amit Shah, Joint President and Chief Marketing Officer, Flexible • Three decades of experie
Slide 48: Shareholding Pattern – June 2024
Shareholding Pattern – June 2024 Shareholding Historical Shareholding Pattern ( in %) Categories June ’23 Sep ’23 Dec’23 Mar'24 Jun'24 Promoter Group 44.58 44.58 44.58 44.58 44.58 Others 24.42% FIIs, FPIs and FC 14.68 14.08 14.6 15.04 15.60 MF and AIF Promoter 0.23% Group 44.58% CBO, Insurance and F
Slide 49: Auditors Information
Auditors Information Locations Auditors India Lodha & Co LLP & Vijay Sehgal & Co. Dubai Shah & Al-shamali Associates Egypt BDO, Khaled & Co Poland BDO USA Crowe LLP Mexico Gutierrez Saldivar & Asociados Hungary BDO Nigeria PKF Russia Unicon JSC Process Auditor for UFlex Limited Group Ernst & Young (
Slide 50: UFlex Limited
UFlex Limited Address: A – 107 - 108, Sector - IV,Noida - 201301 (U.P.), India. Phone No : +91 120 4012345 (30 Lines) | Fax No.: +91 120 2556040 Corporate ID :L74899DL1988PLC032166 Website: www.uflexltd.com IR Contact Mr. Surajit Pal Mr. Manoj Pandey Email: investorrelations@uflexltd.com