Slide 1: Exchange filing cover letter
November 8, 2023 BSE Limited National Stock Exchange of India Limited. 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: EPL Limited Q2FY24 Earnings Presentation
EPL LIMITED Q2FY24 Earnings1 Presentation
Slide 3: Safe Harbour
Safe Harbour Certain statements in this presentation concerning our future growth prospects are forward-looking statements. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in such f
Slide 4: Key topics
Key topics • Q2FY24 Highlights and Financial Performance Quarterly financial performance in the following slides is based on company performance excluding Brazil operations to make it comparable. Brazil greenfield investment is for future business growth. Financial performance including Brazil is sh
Slide 5: Q2FY24 Highlights – EBITDA margin improvement continues
Q2FY24 Highlights – EBITDA margin improvement continues in Q2FY24 1 Revenue growth at 4.0% (including Brazil 5.6%). Underlying business performance partially offset by soft commodity impact in pricing. 2 Strong EBITDA margin in Q2FY24 at 19.0%1; increase of 267 bps YoY and 103 bps sequentially. EBIT
Slide 6: Q2FY24 Consolidated Financial Highlights
Q2FY24 Consolidated Financial Highlights (INR million) Revenue from Operations EBITDA and EBITDA Margins EBIT and EBIT Margins 9,857 16.3% 19.0% 9.3% 11.0% 9,481 4.0% 1,868 1,082 1,544 884 21.0% 22.4% Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 PAT1 and EPS (INR) Net Debt and Net Debt/ LTM EBITDA ROCE
Slide 7: EPL – Capital Efficient, Sustainable Revenue Growth
EPL – Capital Efficient, Sustainable Revenue Growth (INR million) Q2FY23 Q2FY24 Growth 9,481 9,857 Revenue 4.0% Growth1 1920 Adjusted EBITDA 1617 18.8% Adjusted EPS (INR) 1.72 2.41 40.1% As of Mar 23 As of Sep 23 ROCE2 15.0% 16.5% Capital Efficiency Net Debt 3,638 3,763 FY23 YTDFY24 Capex 2,308 1,01
Slide 8: Continuous Margin recovery in last 5 quarters
Continuous Margin recovery in last 5 quarters 2,000 1,868 20.0% 1,800 1,670 1,628 1,544 1,570 19.0% 1,600 1,400 1,256 19.0% 18.0% 1,200 16.6% 17.9% 17.0% 1,000 17.2% 16.0% 800 16.3% 600 15.0% 400 15.1% 14.0% 200 - 13.0% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 Fy 24 EBITDA EBITDA margin EBITDA Gro
Slide 9: Key topics • Performance Improvement Plan
Key topics • Q2FY24 Highlights and Financial Performance • Performance Improvement Plan • Progress on Sustainability • Looking Ahead • Appendix EPL Limited 8 8 Q2FY24 Earnings Presentation
Slide 10: Our Focus Remains on 3 Key Outcomes
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 • War On Waste
Slide 11: Polymer prices steadily declined from peak; aluminium foil flat
Polymer prices steadily declined from the peak in Q1FY23 to Q2FY24; aluminium foil prices remained at Q2FY23 level Polymer INR/kg Aluminium Foil INR/kg 160 290 140 240 120 190 100 140 80 90 60 40 40 LME SHFE Linear (LME) Linear (SHFE) LLDPE HDPE Linear (LLDPE) Linear (HDPE) Source – LME and SHFE Ind
Slide 12: 'Personal Care & beyond' category contribution stood at 48% in H1FY24
‘Personal Care & beyond’* category contribution stood at 48% in H1FY24 ‘Personal Care & beyond’* contribution to Tube Revenue 47% 48% 46% 46% 45% 43% 41% FY18 FY19 FY20 FY21 FY22 FY23 YTDFY24 ‘Personal Care & beyond’* revenue growth higher than Oral Care * ‘Personal Care and beyond’ includes Beauty
Slide 13: 'Personal Care & beyond' category has grown at a 15% CAGR
‘Personal Care & beyond’ * category has grown at a 15% CAGR over the last 13 years and continues to be the major growth driver for EPL in FY23 ‘Personal Care & beyond’* Revenue (INR million) Growth 8.3% 15,947 Y-o-Y 12,852 14,291 8,579 11,206 8,254 2,980 Sub-categories FY11 FY15 FY20 FY21 FY22 FY23
Slide 14: Enhanced 'Right To Win' Through Innovations
Enhanced ‘Right To Win’ Through Innovations Neo Seam: Zero Side Seam High Quality Printing Solutions Applicator Innovations – a solution for all categories 13 13
Slide 15: Focused Capability Building to Capture the Opportunity
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 focused trainings increased demand 14 14
Slide 16: We feel excited about Brazil opportunity
We feel excited about Brazil opportunity Commercial production within one year of decision to go ahead Volumes building fast Bright prospects beyond anchor customer Volume as % of long term commitment to anchor customer • EPL only strategic global tube supplier in Brazil 100% • Large consumer market
Slide 17: Strong P&L Productivity Initiatives in Place
Strong P&L Productivity Initiatives in Place Strategic Price Management War On Waste Continued Insourcing Manufacturing Realignment Maximize ‘One EPL’ Benefit Automation16Investments 16 16
Slide 18: Major equipment & warehouse ready
Major equipment's & warehouse ready (Oral and Hair care Qualifications done) 17
Slide 19: Key topics • Progress on Sustainability
Key topics • Q2FY24 Highlights and Financial Performance • Performance Improvement Plan • Progress on Sustainability • Looking Ahead • Appendix EPL Limited 1818 Q2FY24 Earnings Presentation
Slide 20: Target EcoVadis Platinum
Recyclable volumes scaling up fast; Significant focus on back end capability Recyclable volumes as mix of total Capability Building tube volumes 3X in two • Majority of all capacity capexes in last years 60% 3 years recyclable packaging compliant 2X in one year > 20% • $20Mn investments in last 3 ye
Slide 21: Helps meet customers' sustainability commitments and gain wallet share
This will help us meet our customers’ sustainability commitments and gain wallet share 100% of plastic packaging Make 100% of plastic packaging 100% recyclable or reusable to become recyclable by reusable, recyclable or packaging by 20303 20251 compostable by 20252 Source: 1. https://www.colgatepalm
Slide 22: Process Sustainability
Process Sustainability Ellen McArthur Foundation in its Global Commitment Positive progress on all the Progress Report 2023 ranks EPL Aligned and Green company’s ESG commitments for its commitments EPL Limited 2121 Q2FY24 Earnings Presentation
Slide 23: People Sustainability: Corporate Social Responsibility
People Sustainability: Corporate Social Responsibility Our CSR vision is in alignment with the overall EPL ambition of becoming the most sustainable packaging company in the world. All CSR works are undertaken as part of People Sustainability, and all actions are a step further towards “Greening Liv
Slide 24: Awards
Awards “Sustainability Champion” award by HP A testament to EPL's leadership in integrating sustainability into core business practices and it significantly contributes towards A sustainable Supply Chain. “Green Company of the Year” award at PrintWeek Awards 2023. A testament to our exemplary all-ro
Slide 25: Key topics • Looking Ahead
Key topics • Q2FY24 Highlights and Financial Performance • Performance Improvement Plan • Progress on Sustainability • Looking Ahead • Appendix EPL Limited 2424 Q2FY24 Earnings Presentation
Slide 26: Looking Ahead
Looking Ahead 1 Continue growth momentum in India and China; some demand softening in western geographies 2 Accelerate Beauty and Cosmetics category through innovation and back-end capability 3 Ramp up Brazil volume and expand customer base in Brazil Continued focus on (i) margin improvement through
Slide 27: Key topics • Appendix
Key topics • Q2FY24 Highlights and Financial Performance • Performance Improvement Plan • Progress on Sustainability • Looking Ahead • Appendix EPL Limited 2626 Q2FY24 Earnings Presentation
Slide 28: Q2FY24: Adjusted EBITDA and PAT
EPL Limited Q2FY24 Earnings Presentation Q2FY24: Adjusted EBITDA and PAT (INR million) Adjustments EBITDA PAT1 Reported Q2FY24 numbers 1,868 725 • TSA2 related expenses +40 +30 • ESOP related cost +12 +12 • One time acquisition/ merger/ FX/ patent related costs 0 0 Adjusted Q2FY24 numbers 1,920 767
Slide 29: Q2FY24 Performance – AMESA and EAP
Q2FY24 Performance – AMESA and EAP (INR million) AMESA Particulars Q2FY24 Q2FY23 % change Revenue 3,791 3,594 5.5% EBITDA 803 659 21.8% EBITDA % 21.2% 18.3% EBIT 496 404 22.8% EBIT % 13.1% 11.2% EAP Particulars Q2FY24 Q2FY23 % change Revenue 2,454 2,167 13.2% EBITDA 564 499 13.0% EBITDA % 23.0% 23.0
Slide 30: Q2FY24 Performance – Americas and Europe
Q2FY24 Performance – Americas and Europe (INR million) Americas Particulars Q2FY24 Q2FY23 % change Revenue 2,360 2,226 6.0% EBITDA 371 267 39.0% EBITDA % 15.7% 12.0% EBIT 199 122 63.1% EBIT % 8.4% 5.5% Europe Particulars Q2FY24 Q2FY23 % change Revenue 2,163 2,050 5.5% EBITDA 215 208 3.3% EBITDA % 9.
Slide 31: Q2FY24 Consolidated Financial Highlights including Brazil
Q2FY24 Consolidated Financial Highlights including Brazil (INR million) Revenue from Operations EBITDA and EBITDA Margins EBIT and EBIT Margins 10,016 9,481 16.1% 18.1% 9.1% 9.6% 5.6% 1,810 866 974 1,530 18.3% 12.5% Q2FY23 Q1FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 PAT1 and EPS (INR) Net Debt and Net Debt/
Slide 32: About EPL
About EPL (Formerly known as Essel Propack Limited) EPL Limited 3131 Q2FY24 Earnings Presentation
Slide 33: Largest Global Footprint
Oral Global Beauty & Cosmetics Pharma Footprint Home Industrial 11 Global Countries with Leader in Oral Care 21 operational presence 48% Revenue from Non Oral 3500+ State of the Art Employees Manufacturing Facilities Globally Germany Largest USA Poland Marquee Tubes Manufacturer UK* Customers Global
Slide 34: EPL Caters to Global Customers Across Trillion Dollar Categories
EPL Caters to Global Customers Across Trillion Dollar Categories Tube revenue split (Q2FY24) ‘Personal Care & Others, 4% beyond’*, 48% Pharma, 9% Oral Care, Beauty & Cosmetics, 52% 35% 33 EPL Limited 3333 Q2FY24 Earnings Presentation * ‘Personal Care and beyond’ includes Beauty & Cosmetics, Pharma e
Slide 35: About EPL
EPL Limited Q2FY24 Earnings Presentation About EPL EPL is the largest global specialty packaging company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space. Employing over 3,577 people representing over 25 different nationalities, EPL functions in eleven countries through 2
Slide 36: Thank you
Thank you /esselofficial /company/essel-propack-limited /essel_propack EPL LIMITED (Formerly known as Essel Propack Limited) Top Floor, Times Tower, Kamala City Senapati Bapat Marg, Lower Parel Mumbai - 400 013, India EPL Limited 35 Q2FY24 Earnings Presentation