Slide 1: Regulation 30 filing cover letter: Q1 FY23 results presentation
POLYPLEX August 18., 2022 The Manager Listing Department, The General Manager National Stock Exchange of India Limited, - Listing Department, BSE Limited Exchange Plaza, NSE Building, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai- 400 001 Mumbai- 400 051 SYMBOL:
Slide 2: First Quarter FY 22-23 Financial Results & Business Profile
Polyplex Corporation Limited August 18, 2022 First Quarter FY 22-23 Financial Results & Business Profile India - Bazpur India - Khatima USA Thailand Indonesia Ecoblue, Thailand Turkey 1
Slide 3: Contents
Contents Company Overview Quarter & Year under review Success Enablers Stability in Earnings Industry Outlook Growth Capex Guidance Annexures 2
Slide 4: Company Overview
Company Overview POLYPLEX.
Slide 5: Polyplex at a Glance
Polyplex at a Glance ◼ Integrated and diversified manufacturer of plastic film substrates including BOPET (thin & thick), BOPP, CPP and Blown PP / PE ◼ Wide offering of specialty, innovative and differentiated products across a variety of packaging, electrical & electronic and other industrial appli
Slide 6: Polyplex Journey so far: Ability to identify & capitalize on opportunities
Polyplex Journey so far: Ability to identify & capitalize on opportunities Trend-Setter With Many ‘Firsts’ in the Industry First in the industry to invest First in the industry First Indian manufacturer in post-consumer and post- to operate 10.6-meter line @ to set up overseas operations industrial
Slide 7: Pioneer in Sustainable Products and Processes in the Industry
Pioneer in Sustainable Products and Processes in the Industry Strong Commitment Towards Sustainability Focused Innovative Solutions ◼ Spearheading post-consumer and post-industrial waste (PIW) recycling in the industry towards achieving the goal of circular economy ◼ Has taken various initiatives to
Slide 8: Quarter & Year under review
Quarter & Year under review POLYPLEX.
Slide 9: Financial Performance – Snapshot
Financial Performance – Snapshot India Rating & Research IND AA- (Positive Outlook) Superior Value Creation Over the Years… (Q1 FY 22-23) (FY 21-22) $263mm $52mm $887mm $186mm Revenue# Normalized Normalized EBITDA* Revenue# EBITDA* 20% 21% Normalized 29% Normalized 27% EBITDA* ROCE1 EBITDA* ROCE1 Ma
Slide 10: Q1 FY 22-23 Performance Snapshot
Q1 FY 22-23 Performance Snapshot QoQ Growth YoY Growth (Q1 FY 22-23 v/s Q4 FY 21-22) (Q1 FY 22-23 v/s Q1 FY 21-22) Sales Volume 3% 12% (All Films) 86,519 MT Sales Revenue 8% 41% 2,028 INR Crores ($ 263 million) Normalized EBITDA -1% 23% 405 INR Crores ($ 52 million) PAT (Before Minority) 2% 67% 311
Slide 11: EBITDA Evolution
EBITDA Evolution Normalized EBITDA Bridge (Q1 22-23 vs Q4 21-22) 0.1 USD million 2.3 3.4 3.0 4.0 54.8 1.7 53.0 53.0 52.5 52.0 52.0 50.8 50.8 Normalised EBITDA - Volume VA variance Rate VA variance Other Film & Chips Other Variable Cost Fixed Cost Other Oprtnl Income Normalised EBITDA - Q4 21-22 (Thi
Slide 12: Shareholders' Return
Shareholders’ Return Improving Shareholders’ Return 4,000 1,400 3,500 1,147 1,086 1,200 952 990 3,000 850 1,000 INR Crores 2,500 800 INR 2,000 3,410 3,600 600 1,500 3,046 3,109 2,719 400 1,000 500 200 - - FY19 FY20 FY21 FY22 Q1FY23 Shareholders' Fund (after adjusting for minority) - INR Crores Book
Slide 13: Success Enablers
Success Enablers POLYPLEX.
Slide 14: Success Enablers
Success Enablers 1 Global and Integrated Manufacturing Set-up 2 Diversified and Differentiated Product Portfolio Polyplex is the ONLY Multifarious and Demanding Customer Base Served Player to Combine Key 3 by an International Sales & Distribution Network Attributes… Continued Focus on Operational Ef
Slide 15: A Self-Contained Manufacturing & Sales Capability in Each Region
1 A Self-Contained Manufacturing & Sales Capability in Each Region Manufacturing Proximity and an Entrenched Sales & Distribution Network in Major Demand Centers Ensure a Reliable Supply Chain for Customers 7 Manufacturing Facilities In 5 Countries with Multiple Warehouses & Liaison Offices Worldwid
Slide 16: Integrated Manufacturing Capacities Across Geographies
1 Integrated Manufacturing Capacities Across Geographies Ability to Provide a Comprehensive Suite of Products in Each Manufacturing Location Resin Base Films Value Added Films Mechanically PET Film Recycled BOPET BOPET Blown PP / Resin1 Resin2 Thin Thick BOPP CPP PE Metallized Holography Coated3 TMP
Slide 17: Integrated Manufacturing Has Broadened Product Portfolio
1 Integrated Manufacturing Has Broadened Product Portfolio Base Film Lines with Upstream PET Resin Plants and Downstream Capabilities ◼ The only global player with resin plants at all manufacturing locations ◼ Forward integration provides ability to undertake one or more downstream processes on the
Slide 18: Integrated Manufacturing Across Geographies
1 Integrated Manufacturing Across Geographies Ensures Supply Chain Efficiency, Cost Optimization & Lower Time to Access and Market New Products and Applications Backward integration into captive PET resin Forward integration to downstream capabilities production at all film manufacturing locations i
Slide 19: Polyplex – A Respected Plastic Film Manufacturer
2 Polyplex – A Respected Plastic Film Manufacturer In addition to Sarafil range of standard and specialty base films, Polyplex has diversified into several value-added downstream products under Saracote, Saralam and Saraprint brands over the last 10-15 years Sarafil Base Films are suitable for a ran
Slide 20: Focus on Highly Differentiated Specialty Film Sales
2 Focus on Highly Differentiated Specialty Film Sales Differentiated Product, Application or Customer (D-PAC): Drives Polyplex’s Right to Win in a Competitive Industry Unique value proposition of differentiated products, applications and customers has led to a healthy growth in specialty portfolio ✓
Slide 21: Increasing Contribution of D-PAC Sales
2 Increasing Contribution of D-PAC Sales Continued Increase in D-PAC Volumes… …Resulting in Growth of Incremental1 D-PAC EBITDA KMT (films) Incremental EBITDA for D-PAC ($ / kg) EBITDA ($ million) 0.72 0.70 0.75 0.81 0.98 323 306 274 253 $186 $171 229 $133 233 $115 207 $110 192 $116 $86 $72 94 62 $7
Slide 22: Product and Application Penetration (1/6)
2 Product and Application Penetration (1/6) Flexible Packaging - Food¹ Sugar & Confectionary Frozen Food Cheese & Dairy Snacks & Cookies Tea & Coffee Cereals Food Staples Soups Liquids Specialty Food Others ¹ Sarafil Thin BOPET (Primarily). BOPP Specific 21
Slide 23: Product and Application Penetration (2/6)
2 Product and Application Penetration (2/6) Flexible Packaging – Non Food¹ Medical & Pharmaceutical Kitchen & Home Care Cigarettes & Tobacco Personal Care & Hygiene Pet Food Garden & Outdoor Electronics Packaging Miscellaneous Personal Care & Hygiene Shrink Films Textile Bags Tapes ¹ Sarafil Thin BO
Slide 24: Product and Application Penetration (3/6)
2 Product and Application Penetration (3/6) CPP & Blown PP/ PE Food Food Overwrap Flower Overwrap CPP Sealant Film Medical Retort Anti-fog Construction Underlayment Metallized PE, Sealant, Safety Air Bags Container Liner Labels & Specialty Blown PP Blown PE Retort PP Mulch Metal Protection Stretch W
Slide 25: Product and Application Penetration (4/6)
2 Product and Application Penetration (4/6) Labels, Carton, Holography¹ and Paper Labels Carton Packaging Direct and Transfer Metallized Paper Brand Protection - Holography 1Sarafil Thin BOPET, BOPP 24
Slide 26: Product and Application Penetration (5/6)
2 Product and Application Penetration (5/6) Industrial1,2 Thin Films¹ Flexible Ducting Hot Stamping Foil Tapes Release Liners¹,² EV Battery MLCC Construction, FRP 1,2 Window Films 1,2 Electronics 1,2 Others Thick Films² Media & Screen PV Solar Electricals Face Shield Electronic Liner Decoration Prot
Slide 27: Product and Application Penetration (6/6)
2 Product and Application Penetration (6/6) Downstream Construction Release Liners Saracote Saraprint Saralam 26
Slide 28: Constantly Innovating to Ensure Sustained Differentiation
2 Constantly Innovating to Ensure Sustained Differentiation Dedicated R&D Ecosystem in India Demonstrated ability to partner with customers for joint product development and co-innovation due to strong technical capabilities, thereby deepening customer relationships A separate R&D department registe
Slide 29: Global and Well-Diversified Customer Base
3 Global and Well-Diversified Customer Base Deep-Rooted Relationships with Key Customers Spanning Over 15+ Years ◼ Tier I supplier to leading global and regional converters who cater to global CPGs / OEMs ◼ Strong manufacturing and distribution capabilities helps capitalize on the increasing prefere
Slide 30: Continued Focus on Operational Efficiencies and Costs
4 Continued Focus on Operational Efficiencies and Costs ◼ Business process continuous improvement and excellence programs — Undertaking several initiatives to improve business processes and optimize costs through continuous improvement in the areas of productivity, wastage, freight, packing, energy
Slide 31: Superior Utilization Relative to Industry
4 Superior Utilization Relative to Industry Polyplex has consistently improved capacity utilization through debottlenecking and outperformed the industry (Thin BOPET Film utilization) 250 99% 100% 99% 99% 101% 200 100% 150 80% 100 80% 82% 82% 80% 60% 50 184 203 229 232 59 - 40% FY19 FY20 FY21 FY22 Q
Slide 32: Sustained and Profitable Growth (1/3)
5 Sustained and Profitable Growth (1/3) Improving Steady Robust Strong Profit Cash Flow Balance Growth Margins Generation Sheet Sales Volume Across All Films (KMT) EBITDA ($mm) and EBITDA Margin (%) & $/kg 8% 12% 6% 7% 18% 21% 26% 21% 20% 0.45 0.49 0.56 0.57 0.61 306 323 253 274 186 171 115 133 87 5
Slide 33: Sustained and Profitable Growth (2/3)
5 Sustained and Profitable Growth (2/3) Improving Steady Robust Strong Profit Cash Flow Balance Growth Margins Generation Sheet Revenue (USD million) Effective Tax Rate 16.5% 15.3% 12.9% 11.4% 887 7.7% 15.3% 650 630 660 12.1% 9.0% 263 5.7% 7.0% FY19 FY20 FY21 FY22 Q1FY23 FY19 FY20 FY21 FY22 Q1FY23 A
Slide 34: Sustained and Profitable Growth (3/3)
5 Sustained and Profitable Growth (3/3) Improving Steady Robust Strong Profit Cash Flow Balance Growth Margins Generation Sheet EPS (INR/Share) Dividend Per Share (INR/Share) 132 68 162.57 181.19 31 103.19 88.18 59.58 32 36 20 17 FY19 FY20 FY21 FY22 Q1FY23 FY19 FY20 FY21 FY22 Annualised Normal Divid
Slide 35: Polyplex's Commitment to Sustainable Development & Growth
6 Polyplex’s Commitment to Sustainable Development & Growth Commitment Towards Sustainable Environment A ◼ Strive to work on sustainable products and processes ◼ Continue to make multiple and substantial investments in recycling operations to provide solutions for post industrial as well as post-con
Slide 36: Continued Focus and Thrust on Sustainability
6 Continued Focus and Thrust on Sustainability 5 1 ◼ Industry Collaboration — Working in close collaboration ◼ Increase in Post-consumer / with industry associations, Post-industrial Recycling CPGs/OEM, Converters and Capacity research organizations to develop viable solutions 4 3 2 ◼ Ecoblue Initia
Slide 37: Recent Initiatives Undertaken by Polyplex
6 Recent Initiatives Undertaken by Polyplex Sustainable Products That Have Already Been Delivered Polyplex has successfully executed several sustainability initiatives till date Post-Consumer Foil Replacement Recycled PET Film - Mono PET structures (High Barrier 30% - 100% PCR Metallized films) PVC
Slide 38: Ecoblue - A Recycling Initiative of Polyplex
6 Ecoblue - A Recycling Initiative of Polyplex Ecoblue is helping brands meet their sustainability goals About Ecoblue Key Products ◼ Starting operations in 2013, Ecoblue provides sustainable solutions for film-based process waste as well rPET resin as post-consumer plastic waste for varied applicat
Slide 39: Promoting Sustainability Through Ecoblue
6 Promoting Sustainability Through Ecoblue Engaged in Adopting Innovative Recycling Solutions Ecoblue is a specialist in recycling a wide spectrum of materials Recycled Polyolefin for Virgin Recycling Unrecyclable Materials rPET for Virgin Replacement Replacement Ecoblue Strap2Strap Solution Bottles
Slide 40: Meaningful Social Impact
6 Meaningful Social Impact Conscientious Approach to Contribute to the Community ◼ Ensured safety and security of staff members during COVID-19 — A robust health monitoring mechanism has been put in place including handling of emergency situations — Proactive communication and prevention has been th
Slide 41: Focus on SCORE
6 Focus on SCORE Core Values Binding the Employees ◼ We leverage synergies across hierarchies, functions and Seamlessness locations Professional, highly Stable management qualified and team with almost ◼ We value our people and are committed to their experienced zero attrition over leadership team t
Slide 42: Creating Impact Through Strong Governance
6 Creating Impact Through Strong Governance Continuously Strives to Follow Best Practices ✓ Committed to promoting fundamental values of honesty, integrity, and ethical conduct among all stakeholders ✓ Strong compliance orientation — Adheres to all applicable laws, regulations and guidelines across
Slide 43: Recipient of Prestigious Awards and Accolades Globally
6 Recipient of Prestigious Awards and Accolades Globally Polyplex has been a recipient of some of the most prestigious awards in the industry, demonstrating its commitment towards becoming a global leader in the industry Best Public Company Prime Minister’s Best Public Company Asia’s Most of 2020 –
Slide 44: Stability in Earnings
Stability in Earnings 43
Slide 45: Key Attributes of the Business Model Creates a Natural Hedge Against Industry Volatility
Key Attributes of the Business Model Creates a Natural Hedge Against Industry Volatility Global S&D Network => diversified and fragmented customer base; optimized market mix to improve margins Diversified portfolio Global – local manufacturing with increasing share => cater to local market of D-PAC
Slide 46: Polyplex Has Consistently Generated Superior and Stable Gross Margins
Polyplex Has Consistently Generated Superior and Stable Gross Margins Relative to the Industry VA Stability Polyplex’s strength as a diversified and specialty - focused business enables it to achieve steadier gross margins 1.40 114 120 101 1.20 1.09 1.11 1.10 1.09 100 1.25 1.05 1.05 1.00 1.01 1.03 0
Slide 47: Industry Outlook
Industry Outlook 46
Slide 48: Thin BOPET Demand
Thin BOPET Demand Thin BOPET Film Demand Expected to Stay Resilient and Accounts for 80% of Global BOPET Film Demand Thin BOPET Films Expected to Be the Fastest Growing Segment in the Global BOPET Films Market Global Thin BOPET Film Demand (KMT) 8,000 6,397 8.0% 5,696 6,035 6,000 4,808 5,084 5,380 4
Slide 49: Thin BOPET Industry Outlook
Thin BOPET Industry Outlook Upcoming Capacity Additions Expected Capacity in the Industry KTPA ◼ Majority of the new capacity is being installed in low-cost developing countries - China and India, together accounting for ~85% of the total upcoming capacity 7,255 7,274 7,274 7,274 7,274 ◼ Based on th
Slide 50: Growth Capex
Growth Capex POLYPLEX.
Slide 51: Investment Under Implementation
Investment Under Implementation Key Investment Rationale ◼ New investment rationale: — High level of confidence owing to established sales and distribution network Base Film Capacity Expansion (i.e., Second BOPET Film and Debottlenecking Resin — Market growth of 10-12 KT p.a. plant) in USA — Availab
Slide 52: Guidance
Guidance POLYPLEX.
Slide 53: Second Quarter 22-23 Guidance
Second Quarter 22-23 Guidance Normalised EBITDA (USD million) 50 54 52 45 46 44 39 40 37 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 Q1 22-23 Q2 22-23 The forward-looking statements reflect Polyplex’s expectations of its next quarter earnings. These are based on certain a
Slide 54: Annexures
Annexures POLYPLEX.
Slide 55: Shareholder Pattern
Shareholder 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 30th June’22)
Slide 56: Group Structure
Group Structure | | 33.81% Polyplex (Thailand) Public Co. Ltd. 100% 100% | (eal 100% | — Lee! Polyplex America Holdings Inc. Polyplex (Singapore) Pte. Ltd. Polyplex Europa B.V. = [tt 100% Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi Investment and Trading & Distribution poEUeees P
Slide 57: 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 58: Glossary
Glossary • EBITDA: Reported Earning before interest, tax, depreciation and amortisation • Normalized EBITDA: EBITDA excluding impact of unrealized FX gains/(losses) on long term loans • Revenue: Reported sales excluding other operating revenues • Net debt: Long-term debt + short term debt + current
Slide 59: 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 Fax:+91.120.2443723 & 24 BSE (scrip code) : 524051 Symbol : PTL NSE (symbol) : POLYPLEX ISIN : INE633B01018 Polyplex India Polyplex Thailand 58