Slide 1: Exchange filing letter for results presentation
POLYPLEX May 26, 2021 The Manager - Listing Department, The General Manager - Listing Department, National Stock Exchange of India Limited, BSE Limited Exchange Plaza, NSE Building, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai- 400 001 Mumbai- 400 051 SYMBOL : P
Slide 2: Fourth Quarter & FY 20-21 Financial Results & Summary
Fourth Quarter & FY 20-21 Financial Results & Summary Polyplex Corporation Limited (PCL) May 26, 2021
Slide 3: Polyplex At a Glance
Polyplex At a Glance Years 33 High level of expertise, especially in PET Film production, with Of Experience in-house R&D continuously seeking to provide innovative in Plastic Films solution to customers #1 In BOPET Film Production in SEA The preferred provider across regions #6 Global BOPET Thin Fi
Slide 4: Polyplex: At a Glance
Polyplex: At a Glance India Rating & Research IND AA- (Stable Outlook) Q4 20-21 Highlights FY 20-21 Highlights 1,291 Cr ($ 177 million) +5% +9% 4,903 Cr ($ 660 million) +10% Sales Revenue# QoQ YoY Sales Revenue# YoY 290 Cr ($ 40 million) -15% +17% 1,270 Cr ($ 171 million) +35% Normalized EBITDA* Nor
Slide 5: Polyplex Journey so far: Ability to identify & capitalise on opportunities
2019 2022 TMP in Bazpur New PET Film line in USA Polyplex Journey so far: Ability to identify & capitalise on opportunities Started manufacturing in Indonesia 2014 Expansion of Holography Started Offline business in Khatima Chemical Coated operations in Turkey 2012 & Bazpur First Silicon 2008 Coating
Slide 6: Success Enablers
Success Enablers Global leadership position with industry leading scale & cost Strong financial & operational track record Continuous and high growth in demand Stable earning across business cycles Stable & proven Management team !5
Slide 7: Global leadership position with industry leading scale & cost
Global leadership position with industry leading scale & cost !6
Slide 8: Global Leadership
Global Leadership Unique model of on-shore, off-shore and near-shore manufacturing Preferred strategic partner in flexible packaging - the largest and fastest growing segment in PET film 500 Global #6 in Thin PET Film* 375 Polyplex By Capacity Poland (KMTPA) Netherlands Italy Korea 250 Japan USA Turk
Slide 9: Global Presence & Portfolio
Global Presence & Portfolio Operating company-wise breakup of sales Business segment-wise breakup of sales FY 20-21 FY 20-21 3% 3% 3% 2% 9% 4% 26% 6% 18% 8% 60% 14% 24% 20% Thin PET Film Coated Film Polyplex USA Polyplex India OPP Thick PET Film Polyplex Thailand Polyplex Turkey (PE+PP) CPP/Blown PP
Slide 10: Industry leading scale & vertical integration
Industry leading scale & vertical integration Resin Base Films Value Added Films PET Film Resin Recycled Resin# PET Thin PET Thick BOPP CPP Blown PP Metallized Holography Coated TMP (MT) (MT) (MT) (MT) (MT) (MT) (MT) (MT) (MT) (Million SQM) (Million SQM) 00 7 55,000 35,000 3, 4,080 257 83 India 77,6
Slide 11: Industry leading cost structure
Industry leading cost structure Polyplex CUF vs Industry (Thin PET Film) Enhancing Operational Excellence Industry leader with near 100% 99% 100% 99% 2,30,000 91% 95% 100% Capacity Utilization through • Implementing Kaizens to 90% improve productivity and 82% 83% business cycles business processes 7
Slide 12: Strong financial & operational track record
Strong financial & operational track record !11
Slide 13: Q4 20-21 Performance Snapshot
Q4 20-21 Performance Snapshot QoQ Growth YoY Growth (Q4 20-21 v/s Q3 20-21) (Q4 20-21 v/s Q4 19-20) Sales Volume -5% 2% (All Films) 76,401 MT Sales Revenue# 5% 9% 1,291 INR Crores ($ 177 million) Normalized EBITDA* -15% 17% 290 INR Crores ($ 40 million) PAT (Before Minority) -9% 854% 205 INR Crores
Slide 14: FY 20-21 Performance Snapshot
FY 20-21 Performance Snapshot YoY Growth (FY 20-21 v/s FY 19-20) Sales Volume 12% (All Films) 304,733 MT Sales Revenue# 10% 4,903 INR Crores ($ 660 million) Normalized EBITDA* 35% 1,270 INR Crores ($ 171 million) PAT (Before Minority) 75% 862 INR Crores ($ 116 million) EPS^ 162.57 INR/Share 84% Note
Slide 15: Thin PET Film - Trend
Thin PET Film - Trend Thin PET Film* Sales Volume (MT) Ex-Factory Price - Thin PET Film* (USD/Kg) Value Addition** - Thin PET Film* (USD/Kg) 2.26 2.04 1.97 1.88 1.85 1.84 1.75 2,26,950 1.11 1.08 1,98,056 1.03 1.01 1.00 1,78,782 0.91 0.96 1,70,456 17-18 18-19 19-20 20-21 17-18 18-19 19-20 Q1 20-21 Q2
Slide 16: EBITDA
EBITDA Normalised EBITDA* - Trend Normalised EBITDA* (Q4 20-21 vs Q3 20-21) 200 2.7 47.0 44.3 6.7 0.6 1.9 0.8 39.8 39.8 150 37.6 37.0 37.0 39.0 USD million USD million 100 171 133 115 50 91 EBITDA Volume VA Rate VA Other Film & Other Fixed Cost Other EBITDA 17-18 18-19 19-20 20-21 Q3 20-21 variance
Slide 17: Strong Financial Performance
Strong Financial Performance Sales Revenue* (USD million) Effective Tax Rate (Tax/PBT) 16.50% 11.41% 9.01% 650 630 660 9.89% 7.66% 551 7.06% 6.37% 5.67% 17-18 18-19 19-20 20-21 17-18 18-19 19-20 20-21 Current tax adjusted for tax on inter company dividend & buyback Current tax (unadjusted) * Excludes
Slide 18: Strong Liquidity
Strong Liquidity Cash & Debt Position (USD million) Free Cash Flow Deployment Trend (USD million) 154 12 4 108 83 9 73 15 33 52 30 170 25 67 71 12 53 102 94 21 68 72 -6 -15 -0 -7 22 Polyplex Corporation Limited Polyplex (Thailand) Public Co. Ltd. Polyplex Corporation Limited 17-18 18-19 19-20 20-21
Slide 19: Strong Financial Performance
Strong Financial Performance EPS^ (INR/Share) Dividend 24.7% Div Per Share (INR/Share) Div Yield %* 164 132 10.2% 162.57 8.2% 103.19 51 88.18 40 31 3.5% 30 49.85 17 32 10 20 17 17-18 18-19 19-20 20-21 17-18 18-19 19-20 20-21 * Average stock price for the period has been considered for calculating Di
Slide 20: Total Shareholder’s Return
Total Shareholder’s Return Since 3,400 1,100 Last 1 Last 3 Last 5 Shareholder’s Return IPO year years years 990 (1988) 952 2,800 950 (A) Total Returns* 850 INR Crores - Polyplex 229% 55% 50% 25% 781 INR 2,200 800 - Nifty 500 - TRI 75% 14% 16% 13% 3,029 3,053 2,771 - BSE Small Cap - TRI 121% 12% 17%
Slide 21: Awards
Awards Thai subsidiary PTL won the Money & Banking Awards 2020 in the ‘Best Public Company’ Category !20
Slide 22: First Quarter 21-22 Guidance
First Quarter 21-22 Guidance 45 45 46 39 40 35 31 33 34 Normalised EBITDA (USD million) Q1 19-20 Q2 19-20 Q3 19-20 Q4 19-20 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 The forward-looking statements reflect Polyplex’s expectations of its next quarter earnings. These are based on certain assumptions
Slide 23: Continuous and high growth in demand
Continuous and high growth in demand !22
Slide 24: Global Demand Growth
Global Demand Growth 6,000 Retail format & 4,500 E-commerce Increasing Improving Environmental 3,000 5,420 Quality of Life 4,583 4,844 5,123 Awareness 3,906 4,072 4,339 PRIMARY 1,500 GROWTH Increasing DRIVERS Population 2018 2019 2020 2021F 2022F 2023F 2024F Consumerism Growth Global Thin PET Demand
Slide 25: Continuous Growth
Continuous Growth Polyplex growth more that the average market growth rate Capacity is in ‘000 MT 1100 1,047 Capacity CAGR 10% 969 880 861 826 642 653 666 660 618 629 635 440 448 455 440 287 220 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Base Film Resins (incl. Recycled) M
Slide 26: Stable earning across business cycles
Stable earning across business cycles !25
Slide 27: Value Chain
Value Chain NATURAL BASIC RAW PLASTIC & INTERMEDIATE RESOURCES PETROCHEMICALS MATERIALS PRODUCTS Ethylene MEG Packaging & Industrial Customers Film Grade PET Coating Natural Gas Resin Paraxylene PTA Base Films Metallizing Transfer/Direct Polypropylene/ PP/PE Resin Holography Metallized Polyethylene
Slide 28: 72% Packaging
Product Applications By Customer Segment - Packaging Food Personal Care - Health & Hygiene Retort Pouch Susceptor Film Easy Peeling Lids Healthcare Products Liquid Packaging 72% Packaging Wafer Bag Rice Bags Coffee Pouch Air Freshener Carton Packaging Soup Powder Meat Wrap Candy Wrap Mosquito Mat Wet
Slide 29: 28% Industrial
Product Applications By Customer Segment - Industrial Electrical & Electronic Building & Construction Countless Others Solar Panel Wire and Cable Motor Insulation Shingle Liner FRP Protection Film Floor Heating Film Back sheets Overwrap 28% Industrial Flexible Circuits MTS Keypads ESD Bags Flexible
Slide 30: Strong R&D Capability
Strong R&D Capability A separate R&D department 15 dedicated personnel in Focus on providing innovative registered with the Corporate R&D supplemented by solutions to customers. local technical service and R&D Department of Scientific and Collaborative Research with team having significant experienc
Slide 31: VA Stability
VA Stability PCL VA v/s China VA v/s Crude 75 75 Stable VA despite crude price volatility 69 69 63 62 63 61 $/Barrel 50 $/Kg 43 1.17 44 1.09 1.00 1.01 1.03 1.00 0.95 0.97 0.97 0.99 0.97 0.98 0.92 0.93 30 0.72 0.75 0.68 0.70 0.61 0.65 0.56 0.60 0.54 0.50 Q1 18-19 Q2 18-19 Q3 18-19 Q4 18-19 Q1 19-20 Q
Slide 32: Grow Sustainable Business Line
Grow Sustainable Business Line Introduce Sustainable Products and Adopt Sustainable Process To response to global concern over plastic use and develop sustainable business, Polyplex aims to continue introducing sustainable plastic products and transform the business process to be more environmentall
Slide 33: Polyplex & Sustainability
Polyplex & Sustainability Ecoblue Limited, Thailand provides sustainable solutions for the packaging and apparel industry • US FDA & GRS approved 3D Pure rPET resin for bottle, film and polyester yarn applications • New state of the art facility being setup to provide complete solution for recycled
Slide 34: Industry Outlook
Industry Outlook OUTLOOK Expected Total Capacity in the Industry • Approx.1.8 Million Tons of Capacity (more than 56% in China) to be further added in Thin PET BOPET Thin Film by 2024 globally Unit:KMT • Changing cost dynamics may result in closure/underutilization of older lines A G R * • Constant
Slide 35: Growth Plans
Growth Plans Capital Cost Benefits related to on-going Other Projects: Projects Location Likely Start Up (In USD million) 1.Expansion of product portfolio Brownfield - BOPP Indonesia 52 H1 FY 21-22 Brownfield - BOPET USA 83 H2 FY 22-23 2.De-bottlenecking of existing film lines Other Projects India 3
Slide 36: Annexures
Annexures Contents • Shareholding Pattern • Group Structure !35
Slide 37: Shareholding Pattern
Shareholding Pattern • Polyplex Corporation Limited (PCL) is the Group Holding Company • PCL’s economic interest in the overseas businesses is 51% • PCL listed on BSE/NSE in India and the Thai subsidiary (PTL) on the Stock Exchange of Thailand (SET) • Shareholding of the Company (as on 31st Mar’21)
Slide 38: Group Structure
Group Structure 100% 17.19% Public/Institutional Shareholder Polyplex Corporation Limited 49% 33.81% Polyplex (Asia) Pte. Ltd Polyplex (Thailand) Public Co. Ltd. 100% 66.50% 100% 100% 100% PAR LLC Eco Blue Ltd Polyplex America Holdings Inc. Polyplex (Singapore) Pte. Ltd. Polyplex Europa B.V. 100% 33
Slide 39: Disclaimer
Disclaimer • This presentation may contain forward-looking statements which are based on the Company’s current expectations and estimates about the industry, management’s beliefs and various other assumptions. These forward-looking statements are subject to various risks, uncertainties and other fac
Slide 40: Thank You
Thank You Polyplex Corporation Limited B-37, Sector-1, NOIDA Distt. Gautam Budh Nagar Uttar Pradesh-201 301 Board:+91.120.2443716-19 Symbol : POLYPLEX Fax:+91.120.2443723 & 24 Symbol : PTL ISIN : INE633B01018 Polyplex India Polyplex Thailand !39
Slide 41: Glossary
Glossary • EBITDA: Earning before interest, tax, depreciation and amortisation • PCL: Polyplex Corporation Limited • PTL: Polyplex (Thailand) Public Company Limited • PE: Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi • PU: Polyplex USA LLC • PFI: PT Polyplex Films Indonesia • WOS: