Epl Limited · NSE:EPL
Epl — Investor Day (September 2023)
42 slides from Epl's investor day presentation, Sep 29, 2023
Slide 1: Investor Presentation filing letter to exchanges
September 29, 2023 BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, C/1, Block G, Dalal Street, Mumbai - 400001 Bandra-Kurla Complex, Bandra (E), Mumbai - 400051 Scrip Code: 500135 Trading Symbol: EPL Sub. : Investor Presentation – EPL Limited (“Company”)
Slide 2: Leading the Pack: Resilient. Sustainable. Confident
LEADING THE PACK Resilient. Sustainabl Confident
Slide 3: Forward Looking and Cautionary Statement
Forward Looking and Cautionary Statement Certain statements in this release concerning our future prospects may be forward-looking statements, within the meaning of applicable securities laws and regulations. These statements by their nature involve a number of risks, assumptions and uncertainties t
Slide 4: Agenda
Investors Day 2023 Agenda 01 Company Overview 02 Financial Performance 03 Strategy into Action 04 Going Ahead 3
Slide 5: Company Overview
Investors Day 2023 Agenda 01 Company Overview 02 Financial Performance 03 Strategy into Action 04 Going Ahead 4
Slide 6: Our Vision
Our Vision To be the most sustainable packaging company in the world 5
Slide 7: World's #1 Specialty Packaging Company
World’s #1 Speciality Packaging Company 22bn EPL Share ~10% Beauty, Beauty, Cosmetics & Cosmetics & Pharma Pharma EPL ~20% Global Market EPL Share ~35% 17bn Oral Care 42bn Tubes Oral Care EPL Share ~8% 3bn Food, Home & Food, Home & Industrial Industrial 6 6
Slide 8: Industry Leading Innovation
2023: Brazil Greenfield 2023 Rich Heritage Industry Leading Innovation 2019: Acquired 2022: Launch by Blackstone of Neo Seam – and rebranded 360-degree as EPL 2022: Launch printing 40 Years, 21 Plants, Entry into of Metallic reducing the South America 2020 and impact of side 11 Countries and USA tra
Slide 9: Global Footprint
Oral Global Beauty & Cosmetics Pharma Footprint Home Industrial 11 5 Countries with Categories Served* 21 operational presence 3500+ State of the Art Employees Manufacturing Facilities Globally Germany 8bn+ USA Poland 25 Tubes Supplied Nationalities UK* Annually Represented Europe AMESA 21% of Annua
Slide 10: End to End Integrated Global Capabilities
Our Biggest Moat End to End Integrated Laminate Printing Tubing Caps • State of the art Blown Film • Flexo, Digital, Letterpress, Dry offset, • Plastic and Lami tubing lines– • In-House Injection Moulding and Lamination Lines Screen, Foil Printing upto 500 tubes/minute • In-house Graphics & plate ma
Slide 11: Trusted Partner for the world's most trusted brands
Trusted Partner for the world’s most trusted brands 20+ Years of Average 10 Relationship
Slide 12: Driving Governance & Performance
Independent Board Driving Governance & Performance Davinder Singh Brar Shashank Sinha Sharmila A Karve Anand Kripalu Board Chairman Independent Director Independent Director Managing Director & CEO Former Director RBI, Former CEO - Strides Pharma Former Head Audit & Risk – Former CEO - Mondelez Indi
Slide 13: Rich Mix of Vintage & Global Expertise
Strong Management Rich Mix of Vintage & Global Expertise Anand Kripalu Ram Ramasamy Deepak Goyal Sonal Jain Kamlesh Jain MD & CEO Chief Operating Officer Chief Financial Officer CHRO Chief Information Officer 2 years | 40 years 39 years | 42 years 2 months| 22 years 5 months| 19 years 10 years | 25
Slide 14: Financial Performance
Investors Day 2023 Agenda 01 Company Overview 02 Financial Performance 03 Strategy into Action 04 Going Ahead 13
Slide 15: Consistent Growth With Solid Recovery
Consistent Growth With Solid Recovery Revenue (Rs.Bn) EBITDA (Rs.Bn) & Margin PAT (Rs.Bn) Q1FY24 Q1FY24 Q1FY24 Growth +9.2% Growth +29.6% Growth +82.3% Margin 17.9% 7.6% 15.3% 11.0% 9.9% 4.4% 9.4% 36.9 -6.0% 2.4 -10.3% 12.0% 11.7% 6.2 6.0 7.7% 2.3 34.3 5.8 2.0% 30.9 5.6 2.1 27.6 2.1 27.1 5.0 1.9 FY
Slide 16: Strong Performance Across Regions
Strong Performance Across Regions* AMESA (Rev Mix: 35% I EBITDA Mix: 41%) Americas (Rev Mix: 22% I EBITDA Mix: 17%) CAGR 9.3% Q1FY24 CAGR 10.4% Q1FY24 Revenue Growth: 5.0% 8.8 Revenue Growth: 9.5% 12.3 13.7 EBITDA Margin: 21.8% 7.4 EBITDA Margin: 11.6%** 9.6 9.4 9.9 5.9 6.2 6.5 FY19 FY20 FY21 FY22 F
Slide 17: Margin Performance vs Peers
Margin Performance vs Peers We have Consistently Delivered Higher margins, Built back Strongly EPL Limited -4.7% Company 1 -2.6% Company 2 -1.4% +2.5% +1.6% +0.9% 20.1% 15.8% 15.2% 17.3% 17.2% 17.9% 14.3% 14.8% 14.7% 14.7% 15.4% 14.1% 13.2% 14.2% 13.8% Q4'20 Q4'21 Q4'22 Q4'23 Q1'24 Q4'20 Q4'21 Q4'22
Slide 18: Track Record of Delivering Superior Shareholder Value
We have a Track Record of Delivering Superior Shareholder Value Market Capitalization (Rs. Bn) 17.9% 10-Year CAGR EBITDA Margin 26.9% 88 Impacted by Corona, Commodity Inflation 16.2% 68 R.O.C.E 57 47 39 37 41 17 20 31 ₹26.7Bn Capital Employed* 6 *Capital Employed includes costs in Brazil '13 '14 '15
Slide 19: Strategy into Action
Investors Day 2023 Agenda 01 Company Overview 02 Financial Performance 03 Strategy into Action 04 Going Ahead 18
Slide 20: Strategy Built on 4C's & Enablers
Last Year Recap Strategy Built on 4C’s & 4 Enablers Purpose: To be the most sustainable packaging company in the world Where we will win (4Cs) How we will win (4 Enablers) Product Sustainability Process & People Sustainability Double Digit Profitable Growth 19 19
Slide 21: 4C's: Category
Progress Update 4C’s: Category ‘Personal Care & Beyond’ Innovations helped in Growing faster than Oral driving this growth ‘Personal Care & Beyond’ Revenue Mix 47% 49% 43% FY19 FY23 Q1FY24 Revenue Growth vs PY FY23 Q1FY24 Personal Care & Beyond 11.6% 11.8% Oral Care 9.4% 7.0% High Quality Printing S
Slide 22: 4C's: Customers
Progress Update 4C’s: Customers Successful journey so far 100+ new customers added over the last 2 years - addition of 10% 21
Slide 23: 4C's: Countries
Progress Update 4C’s: Countries Brazil Commercial Production XXX 62 Total started in Q1FY24 Total Plant Employee Capacity Strength Commercial production within one year of decision to go ahead City of Seropedica, Brazil 62 Total 6136 m2 Employee Total Plant Strength Size Continue to explore export o
Slide 24: 4C's: Costs
Progress Update 4C’s: Costs Continued Margin Expansion Enabled By… 29.6% 23.4% 17.9% Active Price 16.3% 16.6% 17.2% 15.1% Management 13.2% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 -3.1% -13.3% Cost Optimization EBITDA margin EBITDA growth 23
Slide 25: Our Enablers
Progress Update Our Enablers Neo Seam Value Added Enhanced Social Media Participation in key Printing Capabilities presence packaging events 100% Plants on SAP: Shop Floor Innovation sharing Global Sourcing Germany completion Digitization in Q1FY24 24
Slide 26: Strong Progress on Sustainability Agenda
Progress Update Strong Progress on Sustainability Agenda Successful journey so far Product Sustainability Process Sustainability People Sustainability Robust growth in recyclable tubes mix Plastic Waste Management 16% 4,105 MT of plastic recycled 10% Skill Development 242 apprentices on the job trai
Slide 27: Last Year's Performance in a Page
In a Page Last Year’s Performance What Went Well Momentum on Ecovadis Gold Successful validation of Margin Build-back Brazil Greenfield Recyclable Tubes Neo-seam technology Inflation impact on Europe Economic softness New customer acquisition Americas Margins Impacting Growth What Could26have been B
Slide 28: Going Ahead
Investors Day 2023 Agenda 01 Company Overview 02 Financial Performance 03 Strategy into Action 04 Going Ahead 27
Slide 29: Our Focus Remains on 3 Key Outcomes
Going Ahead Our Focus Remains on 3 Key Outcomes Sustained Double Digit Sustainability Led Continued Margin Continued ExpansionMargin Revenue Growth Competitive Advantage Expansion • Aggressive ‘Personal • Sustainable Portfolio • Strategic Price Management Care & Beyond’ Play • Backend Capability • W
Slide 30: Near Term Revenue Growth Impacted by Commodity Price Softening
Near Team Revenue Growth Impacted by Commodity Price Softening 134 124 118 SEA - INR/KG 112 116 105 92 90 103 89 102 97 97 80 78 73 INR LLDPE INR HDPE 29 # Source : ICIS 29
Slide 31: Personal Care & Beyond is a Large Opportunity
Double Digit Revenue Growth: Personal Care & Beyond Personal Care & Beyond is a Large Opportunity Personal Care & Beyond: 25Bn Tubes Category Opportunity Across Markets Total B&C* Total Region Market (mn EPL Wallet % Opportunity tubes) (mn tubes) EPL Volume AMESA 2170 35% 1411 Opportunity 2.5Bn Tube
Slide 32: Enhanced 'Right To Win' Through Innovations
Double Digit Revenue Growth: Personal Care & Beyond Enhanced ‘Right To Win’ Through Innovations Neo Seam: Zero Side Seam High Quality Printing Solutions Applicator Innovations – a solution for all categories 31 31
Slide 33: Focused Capability Building to Capture the Opportunity
Double Digit Revenue Growth: Personal Care & Beyond Focused Capability Building to Capture the Opportunity Operational Capability Enhanced Hunting Organization • Smaller MOQs, Shorter leadtime • Increase hunting organization by 20% • Backend readiness across plants for • Skilling upgrade through foc
Slide 34: We feel excited about Brazil opportunity
Double Digit Revenue Growth We feel excited about Brazil opportunity Volumes building fast Bright prospects beyond anchor customer Volume as % of long term commitment to anchor • EPL only strategic global tube supplier in Brazil customer • Large consumer market with presence of 100% global customers
Slide 35: Solid Portfolio of Sustainable Solutions
Sustainability Led Competitive Advantage Solid Portfolio of Sustainable Solutions Platina Platina Pro Vision Platina Pro ME ETAIN / Platina PCR Barrier webs recyclable in Code High Barrier transparent webs High BARRIER metallic webs for HDPE tubes with mechanically 2 HDPE bottle stream. for better a
Slide 36: Customers have made Global Commitments to Sustainability
Sustainability Led Competitive Advantage Our Customers have made Global Commitments to Sustainability 100% of plastic packaging Make 100% of plastic packaging 100% recyclable or to become recyclable by reusable, recyclable or reusable packaging by 20251 compostable by 20252 20303 Source: 1. https://
Slide 37: Fully Prepared to Partner with Customers on this Journey
Sustainability Led Competitive Advantage We are fully Prepared to Partner with our Customers on this Journey Capability Building Recyclable volumes scaling up fast 3X in two years • Majority of all capacity capexes in 60% last 3 years recyclable packaging compliant 2X in one year 20% • $20Mn investm
Slide 38: Strong P&L Productivity Initiatives in Place
Continued Margin Expansion Strong P&L Productivity Initiatives in Place Strategic Price Management War On Waste Continued Insourcing Manufacturing Realignment Maximize ‘One EPL’ Benefit Automation37Investments 37 37
Slide 39: We Feel Very Excited About What Lies Ahead
In Summary We Feel Very Excited About What Lies Ahead… Sustained Double Digit Sustainability led Continued Margin Expansion Revenue Growth Competitive Advantage to deliver Margin Continued 20%+ EBITDA Expansion In Short term • Strong Product portfolio with backend • Strategic Price Management • Reve
Slide 40: Aspiration in Numbers
Aspiration in Numbers Revenue (Rs.Cr) EBITDA (Rs.Cr) ~1.5X 5400 - 5800 ~2X 1050 - 1250 ~1.4X 4200 - 4600 ~1.4X 750 - 950 3,694 615 599 3,092 FY21 FY23 FY25 Target FY27 FY21 FY23 FY25 Target FY27 Aspiration Aspiration We are Poised to Deliver Exciting Revenue and EBITDA Growth 39 39
Slide 41: Specialty Packaging Trusted Partner Global Leader
#1 Specialty Packaging player in the world Trusted Partner to world’s most trusted brands Global Leader in Sustainable Offerings Solid Management team Consistent Growth with solid margin recovery Exciting Growth Outlook 40 40
Slide 42: Thank You
Thank You Corporate Office EPL LIMITED @Epl_limited Top Floor, Times Tower, Kamala City, Senapati Bapat Marg, Lower Parel, epl-limited Mumbai – 400 013, Maharashtra, India. Telephone: 022 24819000 epl_limited Website: https://www.eplglobal.com CIN:L7495MH1982PLC028947 41