Slide 1: Covering letter to stock exchanges
30th October, 2024 The Listing Department, The Manager The Manager, The Calcutta Stock Exchange Ltd. Department of Corporate Listing Department, 7, Lyons Range, Services, National Stock Exchange of India Ltd. Kolkata – 700001 BSE Limited Exchange Plaza, P. J. Towers, Dalal Street, Bandra Kurla Compl
Slide 2: Introducing India's First Guilt-Free Pens
pentonic INTRODUCING INDIA'S FIRST GUILT-FREE PENS Every plastic pen carries the guilt of being a polluter. So we decided to fight back. Pentonic is now making pens that consist of 75% recycled plastic. Talk about having a clean sheet. PeNCONICc & 75%
Slide 3: Strategy Presentation H1 FY25
STRATEGY PRESENTATION Linc Limited (formerly Linc Pen and Plastics Limited) H1 FY25 NSE : LINC BSE : LINC Bloomberg : LINC:IN 2
Slide 4: Safe Harbour Statement
Safe Harbour Statement This presentation may contain certain “forward-looking statements” within the meaning of applicable securities laws and regulations, which may include those describing the Company’s strategies, strategic direction, objectives, future projects and/or prospects, estimates etc. I
Slide 5: Inside This Presentation
Inside This Presentation 1 2 3 4 Industry Company Why Linc Financial Outlook Overview Snapshot
Slide 6: Industry Outlook
t Industry Outlook
Slide 7: Global Stationery Industry Opportunity
Global Stationery Industry Opportunity Global Stationery and Supplies Share of Relevant Market Writing & Marking Instruments Market Size Market 1 2020 2027 ▪ China is forecasted to reach a projected market 178.6 145.2 Ball & Gel Pen 36% 41% size of US$8.7 Billion by the year 2030 at CAGR US$ Billion
Slide 8: Indian Writing Instrument Industry Opportunity
Indian Writing Instrument Industry Opportunity Indian Writing and Creative Instruments Market Writing Instruments Market Growth Drivers 245 in ₹ Billion ▪ Over 250 million school going students and over 38 million 20 students enrolled in higher education1 ▪ Rising literacy rates: Through Govt. initi
Slide 9: Indian Writing Instrument Industry Opportunity
Indian Writing Instrument Industry Opportunity Share of Branded Play in the Indian Writing Indian Pen Market subsegments Instruments Market 4% by Value in % 16% 15% Super Premium 26% 22% 35% H1 FY24 Premium 80% Mass Market 85% 74% 78% 65% Pen Subsegments Price Criteria Mass Market < Rs. 15 Premium R
Slide 10: Pens - Global Trade Perspective
Pens - Global Trade Perspective 2,663 Top 10 Exporters of Pens in CY 2023 Top 10 Importers of Pens in CY 2023 954 USD Millions USD Millions 416 401 832 748 304 253 238 411 397 397 181 158 152 140 240 167 155 152 China Japan Germany USA Mexico USA France Germany Mexico France India Italy Netherlands
Slide 11: Our Journey
Our Journey Pentonic GRT launched Umergaon Pentonic was launched. @ Rs 40 (a Production It was a Game Changer retractable gel pen) commenced in that featured new factory Minimalistic design & 508 Price at Rs 10 490 Linc Glycer, Ocean Gel Mitsubishi FY 24 The company’s FY 19 was launched acquired 13%
Slide 12: Our Portfolio of Products
Our Portfolio Our Portfolio of of Products. Products ▪ Among Top 3 brands in ▪ New Writing ▪ Global brand from ▪ Asia’s largest India for Writing Instrument brand Mitsubishi Pencil Co. Ltd, stationery giant. Instruments. launched in FY19 by Linc Japan. in MRP ₹10 and above segment. ▪ Presence in the
Slide 13: Recent & Upcoming Launches
Recent & Upcoming Launches Geltonic Pentonic CLR Pentonic EVO Linc Mechanical Pencil Linc Q ₹ 20 Gel Pen ₹ 20 Ball Pen ₹ 30 Gel Pen ₹ 20 Pencil ₹ 10 Pen H1’FY25 H2’FY25 Pentonic Geometry Box ₹ 295 per Unit Pentonic Mechanical Pencil ₹ 20 Pencil Linc Geometry Box & Crayons & Kolor World Play Dough Li
Slide 14: Trend of Financial Performance
Trendofof Trend Financial Financial Performance Performance. FY20-FY24 FY20-FY24 FY20-FY24 CAGR 6.4% CAGR 12.9% CAGR 10.2% 31.3% 31.2% 31.5% 12.6% 11.4% 11.1% 9.6% 24.7% 23.8% ₹ LACS 22.4% 6.1% 4.0% 9,805 5,753 8,441 15,197 15,909 8,424 3,826 1,017 2,153 6,136 5,642 3,054 39,699 25,666 35,496 48,676
Slide 15: Leadership
Leadership MR. DEEPAK JALAN MR. SANJAY JHUNJHUNWALLA Managing director, Independent, Non-executive director, ▪ Commerce graduate with 38 years of experience ▪ Commerce graduate with over 35 years of experience across diverse areas ▪ Responsible for the overall operations with a specialization in ▪ S
Slide 16: Why Linc?
Why Linc? Focus on Geographic Inroads into Strong Consistently Premiumization, Expansion; Stationery Balance Sheet endeavors to practice good Focus on consistently Focusing on Products; with negative Corporate making a more augmenting increasing its widening net Governance homogenous the contributio
Slide 17: Focus on Premiumization
Focus on Premiumization ▪ Pentonic brand introduced in FY19 as a minimalistic yet contemporary Growth in average realization of Pens pen, known for its aesthetics as well as writing smoothness in INR ▪ Increase in share of Pentonic in total revenue led to higher GPM at 5.83 5.88 5.53 5.62 5.57 5.62
Slide 18: Increasing its Global Footprint as Well
Increasing its Global Footprint as Well Linc’s Geographic Reach –H1 FY25 ▪ Global Ball & Gel Pen demand expected to grow at a CAGR of Europe Including Russia 12.5% over the next 7-8 years North America 11% 11% ▪ Demand to grow faster in the developing world ▪ Increasing literacy in the developing wo
Slide 19: Recent Participation in Domestic Expos
Recent Participation in Domestic Expos Gift World Expo, Delhi 2024 18
Slide 20: Recent Participation in Global Expos
Recent Participation in Global Expos Ambiente, Frankfurt, Germany, 2024 19
Slide 21: Recent Participation in Global Expos
Recent Participation in Global Expos Scofex, South Africa, 2023 20
Slide 22: Recent Participation in Global Expos
Recent Participation in Global Expos Escolar, Brazil, 2023 21
Slide 23: Recent Participation in Global Expos
Recent Participation in Global Expos Paperworld, Middle East , Dubai 2022 22
Slide 24: Inroads into Stationery Products
Inroads into Stationery Products ▪ Targeting ₹ 1 Billion of revenue from Deli by FY27 ▪ Deli offers a range of over 200 products in India ▪ Company to largely focus on Calculators, Scissors & Desk Organizers ▪ Deli’s GPM is around 20%
Slide 25: Focus on Shareholder Value Creation
Focus on Focus on Shareholder Shareholder Value Value Creation. Creation Net Cash from Operating Activities Vs Dividend Payout Net Debt and Net Debt/Operating EBITDA2 2.44 4,723 52% 6,194 4,338 3,835 4,562 3,801 ₹ LACS 3,317 ₹ LACS 33% 1.19 2,718 20% 22% 12% 0.78 2,044 744 797 744 0% 223 290 268 267
Slide 26: Strategic JV with Mitsubishi Pencil Co.
Strategic JV with Mitsubishi Pencil Co. The JV builds on our 3 decade-long exclusive relationship with Mitsubishi, merging their advanced technology with our market expertise ₹20 Cr. investment, with Mitsubishi holding a 51% share UniBall’s projected revenue expected to more than double over a span
Slide 27: Expansion Plan
Expansion Plan New Infra adjacent to the existing location (near Kolkata) to rationalize logistics and economic synergies Infra Cost of ~₹3,500 lacs Estimated to be completed by Q3 FY26 FY’25 demand would be met by the existing capacity & stepping-up outsourcing, which has already been tied up Inves
Slide 28: Wider Penetration across India
Wider Penetration across India Wider Penetration across India ▪ India has over 10 Million non-stationery outlets ▪ Broken tradition by expanding to neighbourhood grocery stores (Kirana, Medical stores, Pan stores, etc.) ▪ We have already crossed the milestone of 1 lakh non-stationery outlets ▪ Focus
Slide 29: ESG
ESG E S G ▪ Consistently ▪ Strongly believes in ▪ Pentonic’s individual endeavored to practice diversity in the plastic wrapper good Corporate workforce and has packaging has been Governance ~1,600 female employees consciously substituted ▪ Believes such ▪ Employs a small specially- with paper box p
Slide 30: ESG: why does a pen company want you to stop buying pens?
ESG why does a pen company want you to stop buying pens? Yes, it's a weapon. But discarded carelessly, a plastic pen becomes a weapon of mass destruction. For starters, it is difficult to recycle and emits toxic The next time you throw a plastic pen away, think chemicals. Plastic pollution also play
Slide 31: Financial Snapshot
t Financial Snapshot
Slide 32: Operational Highlights
Operational Highlights ₹ 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 H1 FY25 9,538 9,590 4,333 508 1,582 1,277 Sales Contribution (%) 35.6% 35.7% 1
Slide 33: Operational Highlights: Trade Channel Wise Break-up
Operational Highlights Trade Channel Wise Break-up of Operating Revenue ₹ Lacs 4,714 17.57% Exports Exports 3,808 15.64% 1,039 3.87% E commerce E commerce 793 3.25% 1,695 Modern Trade Modern Trade 6.32% 1,442 5.92% 2,427 Corporate 9.05% 1,074 Corporate 4.41% 16,953 General Trade 17,239 General Trade
Slide 34: Profit & Loss Summary
Profit & Loss Summary ₹ Lacs Particulars FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 Operating Income 36,694 39,699 25,666 35,496 48,676 50,785 26,739 Gross Profit 7,434 9,805 5,753 8,441 15,197 15,909 8,424 Gross Profit (%) 20.3% 24.7% 22.4% 23.8% 31.2% 31.3% 31.5% Operating EBITDA 2,539 3,826 1,017 2,15
Slide 35: Balance Sheet Summary
Balance Sheet Summary ₹ Lacs Particulars FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 Net Worth 12,337 13,697 13,471 14,285 17,722 20,585 21,514 Gross Debt 6,205 4,575 812 299 - 692 680 Cash & Cash equivalent 11 13 14 9 760 1,456 1,156 Net Debt 6,194 4,562 797 290 (760) (765) (475) Capital Employed1 19,388
Slide 36: Ratios
Ratios Particulars Ratios FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 Solvency Ratios Net Debt/Equity 0.50 0.33 0.06 0.02 (0.04) (0.04) (0.02) Net Debt/Op EBITDA 2.44 1.19 0.78 0.13 (0.12) (0.14) (0.08) EBIT/Interest 2.76 5.26 (0.39) 15.81 79.78 18.91 17.29 Operational Ratios Current Ratio 1.68 1.85 1.92
Slide 37: Shareholding Pattern
Shareholding Pattern As on 30th Sep’24 Promoters 25.3% Mitshubishi Pencil Co Ltd IEPF 1.6% NRI, FII, AIF etc. 0.2% 59.4% 13.4% Other Public 36
Slide 38: Thank You
Thank You For further details please contact Director Finance & CFO Investor Relations Advisor N.K.Dujari Sanjeev Sancheti Email: investors@linclimited.com Email: ir@uirtus.in Landline: +91 33 68262100 Website: www.uirtus.in 37