Slide 1: Exchange filing cover letter
CFL/SE/2022-23/NOV/05 November 15, 2022 The Manager (Listing) The Manager (Listing) BSE 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-400 051 Security ID: “
Slide 2: A Perspective – November 2022
A Perspective November 2022 Speciality Films, Speciality Chemicals & Petcare Flexible Packaging I Lamination I Labeling I Synthetic Paper I Speciality Chemicals I D2C Petcare
Slide 3: Disclaimer
Disclaimer 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 f
Slide 4: Discussion Summary
Discussion Summary ❑ Cosmo First – An Overview ❑ September 2022 Quarter Performance Snapshot ❑ Strategic Perspective ❑ Our Businesses: ✓ Films Business ✓ Speciality Chemical ✓ D2C Petcare – Zigly ❑ Financials Overview ❑ ESG Focus
Slide 5: Cosmo First - An Overview
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Slide 6: Company Overview
Company Overview Strong History & Leading Position Global Leader in some Specialty Segments Unique Proposition ❑ Established in 1981, Cosmo Films ❑ World’s largest producer of thermal ❑ Uniquely positioned with good mix of Ltd.is the pioneer of BOPP Films lamination films. speciality/Semi Speciality
Slide 7: Company Overview - Our Businesses
Company Overview - Our Businesses Speciality films focused business Three Verticals: Zigly is D2C, Digital First Omni with target to sell 80% volume of ❑Masterbatch (From FY22) Channel platform for Pets (Petcare value add speciality films by FY24 ❑Textile Chemicals (From FY22) is high growth Industr
Slide 8: Company Overview - Key Milestones
Company Overview - Key Milestones ►2012: 2nd ►Petcare ►Established in 1981, Cosmo Films Ltd.is the ►2016: CPP line-1 coating line pioneer of BOPP Films Industry in India; ►2017: 10th BOPP ►Speciality Chemicals ►2013: 9th line 2022 ►It gradually scaled up the operations BOPP line ►2010: 2nd accompani
Slide 9: Company Overview – Why Named Cosmo First
Company Overview – Why Named “Cosmo First” Known for launching Pioneer of BOPP films Innovative Speciality Films Industry in India first in India First to have D2C Business Partners & True Omni-Channel People First Presence in India Approach Sustainability First Speciality Chemical Approach in the l
Slide 10: September 2022Q Results Update
SEPTEMBER 2022Q RESULTS UPDATE
Slide 11: September 2022 Quarter - Performance Snapshot
September 2022 Quarter - Performance Snapshot INR Cr Unaudited Q2 FY 22-23 Unaudited Q1 FY 22-23 Unaudited Q2 FY 21-22 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 725 778 791 843 707 759 EBITDA 117 124 143 150 128 152 EBITDA % 16% 16% 18% 18% 18% 20%
Slide 12: Speciality & Semi Speciality Growth and Margins
Speciality & Semi Speciality Growth and Margins ❑ Expanding Speciality & Semi-Speciality films portfolio (high margin category) (FY22 64% volume; 19% CAGR over last 3 years). ❑ Target 80%+ volume from Speciality & Semi Speciality segment by 2024. 120% 80 70 100% 60 80% 38% 43% 52% 64% 50 69% 64% 60%
Slide 13: Strategic Perspective
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Slide 14: Why Cosmo First?
Why Cosmo First ? ❑ A Company with diversified businesses with target 20% CAGR topline growth in next 3 years coupled with commensurate return growth ❑ Potential high Growth Engines include Speciality Films, Speciality Chemicals and a digital first, D2C Petcare business ❑ Speciality Films: ✓ Expandi
Slide 15: Key Capex to Fuel Growth
Key Capex to Fuel Growth Films Business: Estimated Annual Estimated S.No. Capex Project Capex Capacity Commercial (INR Crs) (MT) Production by 1 BOPP Line (World’s Largest Line) 350 67,000 H1’FY 2026 2 CPP Films Line (World’s Largest Line) 140 25,000 H1’FY 2025 3 Value add assets for Specialized BOP
Slide 16: What Investors may Expect?
What Investors may Expect ? ❑ Flexible Packaging Business: Transformation into primarily Speciality films company with high double digits ROCE ❑ Speciality Chemicals: 10% -15% revenue with 25%+ ROCE in about 5 years. ❑ Petcare: Build and demerge the business vertical in medium term to drive sharehol
Slide 17: Business Overview: Films Business
BUSINESS OVERVIEW “FILMS BUSINESS”
Slide 18: Films Business-India Industry Dynamics & Capex Strategy
Films Business-India Industry Dynamics & Capex Strategy Data Source: AMI/PCI/Other Independent Research and Industry Sources
Slide 19: Films Business - Speciality Films Product Portfolio
Films Business - Speciality Films Product Portfolio PACKAGING FILMS LAMINATION FILMS LABEL FILMS INDUSTRIAL FILMS o Print & Pouching Films o Thermal Lamination & Wet o Pressure Sensitive Label o Synthetic paper o Tape & Textile Films Lamination stock films o Cable Overwrap o Barrier Films o Special
Slide 20: Speciality Films
Speciality Films ❑ Grow Speciality portfolio by volume from 64% in FY22 to 80%+ by 2024 ❑ Each 1% shift in Speciality adds EBITDA between Rs 4 to 5 crores ❑ Complimentary growth in Specialized BOPET Line (Shrink labels, Heat reduction films and other high end Speciality) – target 20%+ ROCE in medium
Slide 21: Speciality Films Focus
Speciality Films Focus ❑ Key Speciality Products: ✓ Globally among top four players in BOPP Speciality films ✓ Speciality Label Films – Second largest player in the World ✓ Thermal Lamination Films – World’s largest supplier ✓ Industrial Application Films – World’s largest supplier ❑ Newer growth ar
Slide 22: Speciality Films: Specialized BOPET Line
Speciality Films: Specialized BOPET Line (H2, FY23) ❑ 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 estimated cost INR 450 crores (with value added assets) wi
Slide 23: Speciality Films: Some Products launched during recent quarters
Speciality Films: Some Products launched during recent quarters 100% Opaque Synthetic Paper Direct Thermal Printable Film o A non tearable, co-extruded, white o A film specially designed for opaque and both sides matte coated film niche applications like for dangler application. information labellin
Slide 24: Films Business - Manufacturing Footprints
Films Business - Manufacturing Footprints TOTAL INSTALLED CAPACITY BOPP – 1,96,000 TPA ( 9 lines) Thermal – 40,000 TPA ( 8 lines) BOPET – 30,000 TPA ( 1 line) BOPET– 1 line Coating – 20,000 TPA (6 lines) Metalizing – 22,000 TPA (4 lines) CPP – 10,000 TPA (2 lines) CSP – 7,000 TPA ( 1 line)
Slide 25: Films Business - Customer Base
Films Business - Customer Base CANADA GERMANY US KOREA JAPAN CHINA INDIA Manufacturing Locations Sales Offices-Other than manufacturing locations
Slide 26: Films Business – Customers/Brands we Serve
. Films Business – Customers/Brands we Serve . Disclosure: All these are trademarks of respective Owners
Slide 27: 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 30+
Slide 28: Initiatives to improve Quality Culture
Initiatives to improve Quality Culture ▪ Implemented Six Sigma System to improve quality culture. ▪ Got A grade rating from two of major customers during plant quality audit. ▪ 15 people trained as six sigma green belts last year, completed 10 projects covering quality, cost reduction and process ▪
Slide 29: Business Overview: Speciality Chemicals Business
BUSINESS OVERVIEW “SPECIALITY CHEMICALS BUSINESS”
Slide 30: Speciality Chemicals - Verticals
Speciality Chemicals - Verticals Specialty Chemicals Textile Masterbatches Adhesives Chemicals & (Capacity- 10K MT) (Capacity- 2.5K MT) Coatings (Capacity- 5K MT)
Slide 31: Speciality Chemicals - Masterbatch
Speciality Chemicals - Masterbatch ❑ India Industry size 500k mt ❑ Industry growing by 11% pa ❑ Masterbatch is a concentrated mixture of pigments and additives used for imparting specific desired properties and coloring in plastic. ❑ Plans to produce all masterbatches (captive use) and niche Special
Slide 32: Speciality Chemicals – Textile Chemicals
Speciality Chemicals – Textile Chemicals ❑ India Industry size USD 1.4 billion ❑ Industry growing by 12% pa ❑ Commercialized 56 products and has started supplies to 40+ customers ❑ Plans to cater to niche Speciality focused ✓ either to address current problem area for the Industry or ✓ significantly
Slide 33: Speciality Chemicals – Adhesives
Speciality Chemicals – Adhesives ❑ Adhesive is planned to kick start from H2’FY23: ✓ Global Industry USD 52 billion (5% growth rate) ✓ India Industry USD 3.5 billion (8%-10% growth rate) ✓ Cosmo plans to launch products in niche areas ❑ Target 7%-8% of Company's consolidated revenue in 3-5 years wit
Slide 34: Business Overview – D2C Petcare under Brand Zigly
BUSINESS OVERVIEW – D2C PETCARE UNDER BRAND “ZIGLY”
Slide 35: Petcare Vertical – The Industry
Petcare Vertical – The Industry Indian Petcare Market Rs 15000 Cr 25% Rs 5100 19% Cr Rs 3250 Cr FY 2014 FY 2020 FY 2025 • Petcare is one of the fastest growing category world wide. The Pet care market in India is booming • Pet penetration in developed markets like US & UK is more then 68% and growin
Slide 36: Petcare Vertical – Business Plan
Petcare Vertical – Business Plan ❑ India Petcare industry INR 7k crores (25% growth rate) ❑ 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 tab the opportunity, plan
Slide 37: Zigly: Key Highlights
Zigly: Key Highlights Business Customers Brand ✓ Targetting GMV of Rs. ✓ 10k+ ✓ Launch of 6 Experience 15 Crores in FY’23 Customers served Centres/Stores in North India ✓ 32% Repeat customer ✓ 2000+ MoM Customers per month ✓Launched first PetCare (33% growth every App in industry to enable ✓6.5k+ cu
Slide 38: Zigly- Portfolio
_ Zigly- Portfolio ¢ Cosme Elias Products Value Added (Complementary) — Services (Ancillary) products products, dog treats Community Pet Vet Care & mixers Re =I & sae get medicine Jrents & 1 Q cs #]) Online Vet Pet Training Consulting Dietary Supplements OF cosmoris www.cosmofirst.com Our Businesses
Slide 39: Financial Overview
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Slide 40: Recent Financials
Recent Financials INR Crores Audited FY 19-20 Audited FY 20-21 Audited FY 21-22 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 2,032 2,204 2,083 2,285 2,824 3,038 EBIDTA 262 280 398 430 526 620 EBIDTA % 13% 13% 19% 19% 19% 20% PBT 163 163 305 329 430 51
Slide 41: Key Financial Snapshot
Key Financial Snapshot ROCE % Networth and book value per share 1,191 854 29% 680 741 655 22% 573 620 488 458 381 14% 381 295 319 350 9% 251 196 Mar-19 Mar-20 Mar-21 Mar-22 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Global Net Worth (INR Crores) Book Value per Share * * Without
Slide 42: Leverage Profile
Leverage Profile Net Debt is coming down even with Capex Net debt/EBITDA 0.5 times and net debt to equity at 0.3 times (March 2022) Net Debt (INR Crores) 759 727 800 618 584 600 485 438 455 400 303 200 - Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22
Slide 43: Shareholding Pattern - September 2022
Shareholding Pattern - September 2022 0 1.3 Top Non-Promoter Shareholding – 30th Sept 2022 Shareholding 30th Sept. 2022 Acadian Emerging Markets Small Capp 1 0.89% Equity Fund LLC Promoter and Promoter 47.68 44.24 Group 2 Aequitas Equity Scheme I 0.71% Institutional 3 Vikas Mehra 0.68% Non Instituti
Slide 44: ESG and Sustainability Initiatives
ESG and Sustainability Initiatives CareEdge “GOOD” ESG Rating
Slide 45: Sustainable Manufacturing Practices
Sustainable Manufacturing Practices Recycling of manufacturing 5% reduction in carbon INR 10 cr initial investment to All plants use some waste for further film emission scope 1 reduce environment impact amount of solar power Production (about 95%) 2% reduction in carbon as a source of energy emissi
Slide 46: Sustainable Product Practices
Sustainable Product Practices Offer mono-material poly-olefin UV stabilized Synthetic Paper can be films for ease of recycling. used to replace PVC in outdoor 1 8 promotional applications for duration Designed heat resistant BOPP films requirements up to one year. replacing BOPET; giving last push t
Slide 47: Corporate Governance
Corporate Governance Well established practices in place I. Well qualified Board of Directors from diversified fields with majority of directors being independent II. 66% independent directors III. Independent Audit Committee with Board of Directors IV. Established risk management practices V. Separ
Slide 48: Board of Directors
Board of Directors Mr. Ashok Jaipuria Mr. Pratip Chaudhuri Chairman & Managing Director Non-Executive & Non Independent Director A first generation entrepreneur with over Extensive experience in the fields of Corporate Finance, forty years of experience in the corporate Treasury, Asset Management an
Slide 49: Leadership Team
Leadership Team Mr. Kulbhushan Malik Business Head- Cosmo Films Over 24 years of experience in the areas of Business & Mr. Pankaj Poddar Strategy Management, Sales and Financial management. Group Chief Executive Officer Over 27 years of experience in Mr. Sanjay Chincholikar finance, advisory and var
Slide 50: Corporate Social Responsibility
Corporate Social Responsibility Some of the Flagship Programs (Education to 20,000+ 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 51: Awards and Accolades
Awards and Accolades FY 2022-23 • Featured as one of the Top 10 Companies from India in Forbes Asia Best under A Billion 2022 list • Ranked as one of India’s Fastest Growing Companies by BW Business World Magazine • Cosmo First grabbed “Most enterprising Business Award” by prestigious Entrepreneur M
Slide 52: Thank You
Thank You For more information, please contact: Cosmo First Ltd. Mr. Neeraj Jain Group Chief Financial Officer Email ID: neeraj.jain@cosmofirst.com; sachin.goel@cosmofirst.com Adfactors PR Pvt. Ltd. Aashvi Shah / Snighter Albuquerque Tel: +91 98210 43389/ +91 9819123804 Email: aashvi.shah@adfactorsp