Ester Industries Limited · NSE:ESTER
Ester Industries — H1 FY2017 Earnings Presentation
28 slides from Ester Industries's earnings presentation, November 2016
Slide 1: Q2 & H1 FY17 Results Presentation
Q2 & H1 FY17 Results Presentation November - 2016
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause actual resu
Slide 3: Index
Index Q2 & H1 FY17 Performance 04 Business – wise Performance 08 Strategic Shift – The New Ester 18 Business Overview 21 3
Slide 4: Q2 & H1 FY17 Performance
ESTER ——_ INDUSTRIES LTD. Q2 &H1 FY1Z Performance
Slide 5: Key Highlights
Key Highlights Specialty Polymer business – Soft performance on account of o Lower off-take resulting from longer than anticipated transition/ approval time taken by customers o Natural delay owing to inherent nature of innovative products - need to adjust for reducing of earlier inventories o Cus
Slide 6: Financial - Q2 & H1 FY17 Performance
Financial - Q2 & H1 FY17 Performance Q2 Q2 Y-o-Y Y-o-Y Particular (Rs cr) HY1FY17 HY1FY16 FY17 FY16 (%) (%) No chip sales, lower off-take for Specialty Polymer and Engineering Plastics business coupled with Total Income 163.3 202.2 (19.2) 329.5 413.2 (20.3) lower share of value added products in the
Slide 7: Business Wise - Revenue Contribution
Business Wise - Revenue Contribution Q2 FY17 Q2 FY16 3% 20% 10% 21% 69% 77% H1FY17 H1FY16 8% 9% 20% 19% 72% 72% 7 PF – Polyester Films; EP – Engineering Plastics; SP – Specialty Polymers
Slide 8: Business Performance (Rs. cr)
Business Performance…….. (Rs. cr) Specialty Polymers Polyester Films & Chips Engineering Plastics 79 297 38 66 237 26 20 42 140 127 33 7 4 4 5 41 -2 19 19 4 4 10 3 2 Q2 FY17 Q2 FY16 H1 FY17 H1 FY16 Q2 FY17 Q2 FY16 H1 FY17 H1 FY16 Q2 FY17 Q2 FY16 H1 FY17 H1 FY16 8 PF – Polyester Films; EP – Engineeri
Slide 9: Chairman's Comments
Chairman’s Comments Commenting on the results, Mr. Arvind Singhania, Chairman, Ester Industries said ”Ester Industries continues its journey towards transforming itself into a technology driven Company, with focus on innovation. We continue to invest in R&D and strengthening our capabilities to achi
Slide 10: Specialty Polymers
Specialty Polymers
Slide 11: Specialty Polymers
Specialty Polymers Stain resistant Master Batch – Received Particulars Q2 Q2 H1 H1 % % positive response from the customers; working (Rs cr) FY17 FY16 FY17 FY16 towards ramping up sales Revenues 4.3 20.3 (79) 26.4 37.5 (29.6) Product portfolio - 18 products of which patents EBIT (1.6) 4.2 - 5.3
Slide 12: Awards
Awards • Felicitated at the 6th National Awards for Technology Innovation 2015-16 in Petrochemicals under the category of “Innovation in Polymeric Materials” • Joint Winner in the category of Innovation in Polymeric Materials for “Modified Polyester for Hotfill Application by Injection Stretch Blow
Slide 13: Specialty Polymers – Products & Applications
Specialty Polymers – Products & Applications Polyethylene Terephthalate (PET) Products Polybutylene Terephthalate (PBT) Polyethylene Naphthalate (PEN) Master Batches Rigid Packaging – Hot-fill / Beer Kegs Textile – Flame Retardant Applications Carpets – Stain Resistant Master Batches Heat Sealable E
Slide 14: Specialty Polymers – Case Study
Specialty Polymers – Case Study Problem – High cost towards carpet stain removal Stain marks on (nylon) carpets given spillover / spillage of Business Opportunity • liquid shortens its shelf life • Impairs aesthetic appeal • Present technology – ‘Sulphonated Nylon’ (Costly & inflexible) and ‘Topical
Slide 15: Polyester Films
Polyester Films
Slide 16: Polyester Films
Polyester Films Manufactures and markets polyester films under the brand Particulars Q2 Q2 H1 H1 % % “UmaPET” (Rs cr) FY17 FY16 FY17 FY16 Manufacturing capacity - 57,000 MTPA for polyester films Revenues 126.5 140.4 (9.9) 237 296.8 (20.1) & 13,200 MTPA for metalized polyester films EBIT 9.8 18.6
Slide 17: Polyester Films – Products & Applications
Polyester Films – Products & Applications White Opaque High Clear Products High Barrier Embossable Heat Saleable Twist Wrap Shrink film Anti - Static Metalized High Barrier Matte Flexible Packaging Applications Barrier Packaging Embossing Lidding Label & Graphics 17
Slide 18: Engineering Plastics
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Slide 19: Engineering Plastics – Products & Applications
Engineering Plastics – Products & Applications A well regarded manufacturer of Engineering plastics Particulars Q2 Q2 H1 H1 % % (Rs cr) FY17 FY16 FY17 FY16 Diverse Product Portfolio – 350+ grades products marketed under the brand “ESTOPLAST” Revenues 32.6 41.5 (21.6) 66 78.9 (16.3) Manufacturi
Slide 20: Strategic shift – The new Ester
Strategic shift – The new Ester
Slide 21: New Ester
Knowledge New Innovation ESTER Customization Technology
Slide 22: Business Transformation – Commodity to Technology
Business Transformation – “Commodity” to “Technology” New Product Value Addition Technology Innovation Customisation Development Past Present Future One amongst many in the Transforming from a Aiming to be a Technology Polyester Film and “commodity” to “technology” driven enterprise Engineerin
Slide 23: Business Overview
EST INDUSTRIES LTD. . a — ~ = - 4 — <— “ . -_= ~~ ~~ an . as _ 5
Slide 24: Quick Facts
Quick Facts Founded Corporate Headquarters Businesses & Annual Capacities 1985 GURGAON, Polyester Chips – 70 KT INDIA Specialty Polymers – 30 KT Polyester Film – 57 KT Global Presence People Metallized Film – 13.2 KT EXPORTS TO 50+ 560+ Engineering Plastics – 16.5 KT COUNTRIES 24
Slide 25: Our Presence
Our Presence Haryana Uttarakhand Gurgaon Corporate Headquarter Khatima Manufacturing facility 25
Slide 26: Financial Summary
Financial Summary Particulars FY14 FY15 FY16 Segment-wise Share (%) Revenue by Segment (Rs.cr) 928.5 896.3 770.8 4% Specialty Polymers 38.5 19.7 66.8 16% Polyester Films 746.10 703.3 548.9 FY14 Engineering Plastics 143.9 173.3 155.2 Revenue by Geography 80% Domestic (%) 75 78 71 Exports (%) 25 22 29
Slide 27: Global Presence
Global Presence USA Ukraine Iran Thailand Canada Italy Turkey Nepal Brazil Germany Israel Srilanka Peru Spain South Africa Bangladesh Argentina United Kingdom Tunisia China Colombia Austria Kenya Malaysia Chile Poland Morocco Vietnam Ecuador Bulgaria Nigeria Taiwan Uruguay Oman Egypt Korea Venezuela
Slide 28: Investor Contacts
Investor Contacts About Us: (CIN :- L24111UR1985PLC015063) Incorporated in 1985, Ester Industries Limited (EIL) is an ISO 9001:2008,ISO 22000:2005,TS16949:2002 certified Company engaged in the manufacture of polyester films, specialty polymers, engineering plastics and polyester chips with manufactu