Slide 1: Exchange filing cover letter: Investor Presentation
CFL/SEC/SE/PS/2021-22/MAY/06 May 20, 2021 The Manager (Listing) The Manager (Listing) Bombay Stock Exchange Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1, G Block, Mumbai-400 001 Bandra – Kurla Complex Scrip Code: 508814 Mumbai-40
Slide 2: A Perspective
A Perspective Speciality Films, Polymer & Chemicals Company Flexible Packaging I Lamination I Labeling I Synthetic Paper I Masterbatches I Specialty Chemicals I Petcare May 2021
Slide 3: Discussion Summary
Discussion Summary Why Cosmo Films? Key Focus Areas & Strategy – Specialty Films R&D & Sustainability Patents & trademark Specialty Chemicals Pet Care Financials What Investors may expect? Annexure: Company Overview, India Industry Dynamics, Corporate Governance, CSR 1
Slide 4: Why Cosmo Films?
Why Cosmo Films? Diversified company into Speciality Films, Polymer & Chemicals and a digital first, Petcare business Speciality Films: Expanding Speciality portfolio (62% of revenue; 18% annual growth in last 3 years). Target 80%+ revenue by 2023 end R&D & Sustainability focus (30+ highly q
Slide 5: Specialty Films: Target 80%+ Revenue
Specialty Films …. Target 80%+ Revenue Grow specialty portfolio from 62% to 80% by 2023 end Each 1% shift in specialty adds EBITDA ~5 crores Complimentary growth in Specialized BOPET Line (Shrink labels, Heat reduction films and other high end specialty) – target 20%+ EBITDA Investing resour
Slide 6: Specialty Films
Specialty Films Key Specialty Products: Globally among top four players in BOPP Specialty films Specialty Label Films – Second largest player in the World Thermal Lamination Films – World’s largest supplier Industrial Application Films – World’s largest supplier Newer growth areas for Sp
Slide 7: Specialty Films & Product Portfolio
Specialty Films & Product Portfolio SALES REVENUE FY 21 24% 13% 55% 13% 14% PACKAGING FILMS LAMINATION FILMS LABEL FILMS INDUSTRIAL FILMS 55% 24% o Print & Pouching o Thermal Lamination & o Pressure Sensitive o Synthetic paper 20% Films Wet Lamination Label stock films o Cable Overwrap o Barrier Fil
Slide 8: Specialty Films: Some Products launched during recent quarters
Specialty Films: Some Products launched during recent quarters High Tear Resistant Synthetic Paper (CSP) Recyclable Laminates for Soap o Originally designed for high tear resistant Wrap & Shampoo Pouches tag applications. Also offers moisture, o Mainly use to overwrap Soap. oil and chemical resistan
Slide 9: Specialty Films: Specialized BOPET Line
Specialty Films: Specialized BOPET Line Worlds’ largest line for Shrink Labels and Heat Control Films Shrink Labels – global market @ 130k MT Opportunity in India to convert non-recyclable PVC film market (30k MT) Project cost INR 400 crores (with value added assets) with 3-4 years payback 7
Slide 10: Research and Development – A Snapshot
Research and Development – A Snapshot Infrastructure Achievements R&D labs with most sophisticated Recognition and certification by equipment and instruments, one in India Department of Scientific & Industrial & another one in USA. Research, Government of India. R&D resources increased to 24 d
Slide 11: Sustainability Practices
Sustainability Practices Offer mono layered structure for ease of recycling Several sustainability initiatives to: reduce power consumption, rain water harvesting and reuse of effluent treated water. continuous efforts to reduce water generation, increase re-usage and GHG emissions. recy
Slide 12: Specialty Chemicals - Masterbatch
Specialty Chemicals - Masterbatch India Industry size 460k mt Industry growing by 11% pa Cosmo plans to produce all masterbatches for captive use and niche specialty focused for outside sale Target to reach 10% of Company's consolidated revenue in three years from masterbatches with 20%+ ROC
Slide 13: Specialty Chemicals – Textile Applications & Adhesive
Specialty Chemicals – Textile Applications & Adhesive Specialty Textile Chemicals: India Industry size USD 1.4 billion Industry growing by 12% pa Cosmo plans to cater to niche specialty focused either to address current problem area for the Industry or significantly better product compared t
Slide 14: Petcare Vertical – The Industry
Petcare Vertical – The Industry India Petcare Market Rs 10000 Cr 22% Rs 5100 Cr 19% Rs 3250 Cr FY 2014 FY 2020 FY 2025 • India is the fastest-growing pet markets (@22%) in the world and the market is projected to cross • Petcare is one of the fastest growing category world $500 million in 2020. wide
Slide 15: Petcare Vertical - Business Plan
Petcare Vertical- Business Plan India Petcare industry is at INR 5k crores & growing at 22% CAGR due to smaller families, rising income levels and limited social lives (especially post Covid-19). No large scale organized players in India offering end to end comprehensive solution to the customer
Slide 16: Financials
Financials INR Crs Audited Q4 FY 20-21 Unaudited Q3 FY 20-21 Audited Q4 FY 19-20 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 606 672 508 572 474 524 EBIDTA 112 126 101 112 74 78 EBIDTA % 18% 19% 20% 20% 16% 15% PBT 90 101 79 88 45 37 PAT 65 74 54 63
Slide 17: Financials – Some recent years
Financials – Some recent years INR Crores Audited FY 18-19 Audited FY 19-20 Audited FY 20-21 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 2,050 2,157 2,032 2,204 2,083 2,285 EBIDTA 169 181 262 280 398 430 EBIDTA % 8% 8% 13% 13% 19% 19% PBT 69 72 163 1
Slide 18: Financials - ROCE & ROE
Financials - ROCE & ROE ROCE and ROE are on increasing trend …. ROCE % ROE % 22% 30% 14% 16% 9% 9% 11% 9% Mar-18 Mar-19 Mar-20 Mar-21 Mar-18 Mar-19 Mar-20 Mar-21 16
Slide 19: Financials - Total Shareholders' Return
Financials - Total Shareholders’ Return Consolidated net worth and book value per share 854 741 680 620 573 488 458 381 381 350 295 319 251 196 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Global Net Worth (INR Crores) Book Value per Share Consistent dividend payout record Dividend (% to
Slide 20: Financials - Consolidated Net Debt
Financials - Consolidated Net Debt Net Debt is coming down. At March 2021 running at 1.0 times Net debt / EBITDA and 0.5 times net debt to equity Global Net Debt 800 759 720 727 712 700 618 569 584 600 550 485 500 445 438 400 300 200 100 - Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-
Slide 21: What Investors may expect?
What Investors may expect? Flexible Packaging Business: Transformation into primarily specialty films company with target 20% ROCE Specialty Chemicals: 20% revenue with 25% ROCE in about 4 years Petcare: Build and demerge the business vertical in medium term to drive shareholders valuation 19
Slide 22: Annexure: Company Overview
Annexure: Company Overview 20
Slide 23: Company Overview
Company Overview Strong History & Leading Position Global Leader in Thermal Lam Films Unique Proposition Established in 1981, Cosmo Films With the acquisition of GBC Uniquely positioned with good mix Ltd.is the pioneer of BOPP Films Commercial Print in June of specialty and commodity films. In
Slide 24: Company Overview - Milestones
Company Overview - Milestones ►2016: CPP line-1 ►2012: 2nd coating line ►2017: 10th BOPP line ►2013: 9th BOPP ►Established in 1981, Cosmo Films Ltd.is the line 2016-17 pioneer of BOPP Films Industry in India; ►2014: 3rd coating line ►2010: 2nd ►It gradually scaled up the operations 2021 accompanied
Slide 25: Company Overview - BOPP EDGE
Company Overview - BOPP EDGE MOISTURE BARRIER CHEMICALLY INERT LOW COF AND LOW SIT HEAT SEALABILITY EXCELLENT CLARITY & Better Shelf Life, Suitable For Food & Good Machinability Suitable For Flexible HIGH GLOSS Guard Sensitive Pharma At High Speeds Packaging Better Aesthetics Products LOW MELTING PO
Slide 26: Company Overview - Manufacturing Footprint
Company Overview - Manufacturing Footprint NUMBER OF LINES BOPP Thermal Coating Metalizing CPP Waluj, Aurangabad, India 5 Lines 2 Lines 3 Lines 1 Line 1 Line Karjan, Vadodara, India 3 Lines 1 Lines 2 Line 1 Line Shendra, Aurangabad, India 1 Line 5 Lines 2 Line 1 Line PLANTS Asan, Korea 1 Line TOTAL
Slide 27: Company Overview - Customer Base
Company Overview - Customer Base CANADA GERMANY US KOREA JAPAN CHINA INDIA Sales FY 20-21 43% Export 57% Domestic Manufacturing Locations Sales Offices-Other than manufacturing locations 25
Slide 28: Company Overview - Key Customers
Company Overview - Key Customers Disclosure: All these are trademarks of respective Owners 26
Slide 29: Company Overview - Some of the brands we service
Company Overview - Some of the brands we service Disclosure: All these are trademarks of respective Owners 27
Slide 30: India Industry Dynamics and Capex Strategy
India Industry Dynamics and Capex Strategy Data Source: AMI/PCI/Other Independent Research and Industry Sources 28
Slide 31: Company Overview - Initiatives to improve Quality Culture
Company Overview - Initiatives to improve Quality Culture Implemented Six Sigma System at the organizational level to Initiated small quality improvement projects with lower level improve quality culture. cross functional teams to reduce customer quality complaints. 15 people trained as six si
Slide 32: Some Recent Achievements
Some Recent Achievements FY 2020-21 • Bagged CII National 5S Excellence Awards 2020 • Best exporter awards in Aurangabad region under Nagpur Custom Commissionerate • WordStar Packaging Award 2021 in the Beverages category for Serializable Conduction Sealing Film • WorldStar Global Packaging Award 20
Slide 33: Board of Directors
Board of Directors Mr. Ashok Jaipuria Mr. A. K. Jain Mr. H. K. Agrawal Ms. Alpana Parida Chairman & Managing Director Whole Time Director Independent Director Independent Director Our founder Chairman & Managing Mr. Jain has over four decades of Mr. Agrawal has over four decades of Ms. Alpana Parida
Slide 34: Board of Directors (Contd..)
Board of Directors (Contd..) Mr. Pratip Chaudhuri Mr. Rakesh Nangia Mr. Anil Wadhwa Mr. H. N. Sinor Non Executive Non Independent Independent Director Independent Director Independent Director Director Mr. Wadhwa is an Ex- Member of the Mr. Pratip Chaudhuri holds a BSc. Mr. H. N. Sinor has been a ve
Slide 35: Senior Management
Senior Management Mr. Pankaj Poddar Mr. Neeraj Jain Mr. Sanjay Chincholikar Chief Executive Officer Chief Financial Officer Head- Operations (India Films Business) Mr. Pankaj Poddar’s career spans over a period of Mr. Neeraj Jain has over two decades of Mr. Sanjay Chincholikar's career spans over th
Slide 36: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (%age) 44% Promoter Shareholding* Non-Promoter Shareholding* 56% Top Non-Promoter Shareholders*: 1. Mr. Aequitas Equity Scheme I 1.0% 2. M/s Cosmo Films ESOP 2015 Trust 1.8% 3. Acadian Emerging Markets 0.8% 4. Mr. Vikas Mehra 0.6% 5. Ms Shivani Tejas Trivedi
Slide 37: Corporate Social Responsibility
Corporate Social Responsibility Some of the Flagship Programs (Education to 10,000+ Students) Computer Literacy Program Basic English Learning Program Cosmo Gyan Vihar Kendra Covers 4,000 students from Implementation in 8 primary schools Identifies, enrolls and grades class I to XII every year with
Slide 38: Disclosure
Disclosure Certain statements in this presentation are ―forward-looking statements. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results other
Slide 39: Thank you
Thank you www.cosmofilms.com