Slide 1: Stock exchange cover letter for Q1 results presentation
________ POLYPLEX August 16, 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 05
Slide 2: First Quarter FY 21-22 Financial Results & Summary
First Quarter FY 21-22 Financial Results & Summary Polyplex Corporation Limited (PCL) August 16, 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 #7 Global BOPET Thin Fi
Slide 4: Polyplex: At a Glance
Polyplex: At a Glance India Rating & Research IND AA- (Stable Outlook) Q1 21-22 Highlights FY 20-21 Highlights 1,436 Cr ($ 195 million) +11% +24% 4,903 Cr ($ 660 million) +10% Sales Revenue# QoQ YoY Sales Revenue# YoY 328 Cr ($ 44 million) +13% +10% 1,270 Cr ($ 171 million) +35% Normalized EBITDA* N
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 #7 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 Q1 FY 21-22 Q1 FY 21-22 3% 3% 3% 2% 10% 3% 26% 6% 18% 10% 59% 14% 24% 19% Thin PET Film Coated Film Polyplex USA Polyplex India OPP Thick PET Film Polyplex Thailand Polyplex Turkey (PE+PP) CPP/
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% 99% 2,30,000 95% 100% Capacity Utilization through • Implementing Kaizens to business cycles improve productivity and 81% 82% 82% 79% business process
Slide 12: Strong financial & operational track record
Strong financial & operational track record !11
Slide 13: Q1 21-22 Performance Snapshot
Q1 21-22 Performance Snapshot QoQ Growth YoY Growth (Q1 21-22 v/s Q4 20-21) (Q1 21-22 v/s Q1 20-21) Sales Volume 1% 9% (All Films) 76,955 MT Sales Revenue# 11% 24% 1,436 INR Crores ($ 195 million) Normalized EBITDA* 13% 10% 328 INR Crores ($ 44 million) PAT (Before Minority) -9% -44% 186 INR Crores
Slide 14: 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 2.10 1.97 1.85 1.05 1.11 1.03 1.01 2,26,950 0.91 1,98,056 1,70,456 1,78,782 Q1 57,403 17-18 18-19 19-20 20-21 21-22 17-18 18-19 19-20 20-21 Q1 21-22
Slide 15: EBITDA
EBITDA Normalised EBITDA* - Trend Normalised EBITDA* (Q1 21-22 vs Q4 20-21) 200 10.2 0.7 0.7 150 5.0 0.4 49.9 50.6 49.9 USD million USD million 0.4 44.9 44.5 44.5 100 39.3 40.0 171 133 115 50 91 Q1 44 EBITDA Volume VA Rate VA Other Film & Other Fixed Cost Other EBITDA 17-18 18-19 19-20 20-21 21-22 Q
Slide 16: Strong Financial Performance
Strong Financial Performance Sales Revenue* (USD million) Cash & Debt Position (USD million) 650 630 660 551 173 Q1 195 98 100 17-18 18-19 19-20 20-21 21-22 Annualised 75 78 * Excludes other operating revenues Effective Tax Rate (Tax/PBT) 16.50% 22 Polyplex Corporation Limited Polyplex (Thailand) Pub
Slide 17: Strong Liquidity
Strong Liquidity Free Cash Flow Deployment Trend (USD million) 154 12 4 108 73 83 9 15 33 30 52 25 67 71 12 53 12 2 3 21 13 -6 -0 -7 -6 -15 17-18 18-19 19-20 20-21 Q1 21-22 Capex Dividend Paid BuyBack of shares (incl. Tax) Net Repayment/ (Borrowings) incl. Interest Surplus / (Deficit) !16
Slide 18: Strong Financial Performance
Strong Financial Performance EPS^ (INR/Share) Dividend Div Per Share (INR/Share) Div Yield %* 24.7% 164 162.57 10.2% 132 8.2% 103.19 88.18 51 3.5% 3.0% 40 31 33 49.85 Q1 30 33 17 35.52 10 20 17 32 17-18 18-19 19-20 20-21 21-22 17-18 18-19 19-20 20-21 Q1 21-22 Annualised * Average stock price for the
Slide 19: Total Shareholder's Return
Total Shareholder’s Return Since 3,400 1,048 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 142% 60% 53% 25% 781 INR 2,200 800 - Nifty 500 - TRI 52% 14% 15% 13% 3,053 3,223 3,029 2,771 - BSE Small Cap - TRI 9
Slide 20: Awards
Awards Recently Polyplex (Thailand) Public Co. Ltd has been awarded the esteemed title of “Green Innovation Award” at the prestigious Asia Corporate Excellence & Sustainability Awards 2021 GREEN INNOVATION AWARD This award is bestowed upon organisations, which showcases exemplary innovation in susta
Slide 21: Second Quarter 21-22 Guidance
Second Quarter 21-22 Guidance 43 45 46 44 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 Q2 21-22 The forward-looking statements reflect Polyplex’s expectations of its next quarter earnings. These are based on certai
Slide 22: Continuous and high growth in demand
Continuous and high growth in demand !21
Slide 23: Global Demand Growth
Global Demand Growth 6,000 Retail format & 4,500 E-commerce Increasing Improving Environmental 3,000 5,424 Quality of Life 4,578 4,841 5,123 Awareness 3,943 4,102 4,332 PRIMARY 1,500 GROWTH Increasing DRIVERS Population 2018 2019 2020 2021F 2022F 2023F 2024F Consumerism Growth Global Thin PET Demand
Slide 24: Continuous Growth
Continuous Growth Polyplex growth more that the average market growth rate Capacity is in ‘000 MT 1100 1,051 Capacity CAGR 10% 973 880 865 830 642 653 666 660 618 629 635 440 448 455 440 287 220 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Base Film Resins (incl. Recycled) M
Slide 25: Stable earning across business cycles
Stable earning across business cycles !24
Slide 26: 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 27: 71% Packaging
Product Applications By Customer Segment - Packaging Food Personal Care - Health & Hygiene Retort Pouch Susceptor Film Easy Peeling Lids Healthcare Products Liquid Packaging 71% Packaging Wafer Bag Rice Bags Coffee Pouch Air Freshener Carton Packaging Soup Powder Meat Wrap Candy Wrap Mosquito Mat Wet
Slide 28: 29% 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 29% Industrial Flexible Circuits MTS Keypads ESD Bags Flexible
Slide 29: Strong R&D Capability
Strong R&D Capability A separate R&D department 13 dedicated personnel in Focus on providing innovative registered with the Corporate R&D supplemented by solutions to customers. Department of Scientific and local technical service and R&D Collaborative Research with Industrial Research (DSIR), team
Slide 30: VA Stability
VA Stability PCL VA v/s China VA v/s Crude 75 75 Stable VA despite crude price volatility 69 69 69 63 62 63 61 $/Barrel 50 $/Kg 43 1.17 44 1.09 1.11 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 0.71 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-
Slide 31: 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 32: 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 33: Industry Outlook
Industry Outlook OUTLOOK Expected Total Capacity in the Industry • Approx.1.79 Million Tons of Capacity (more than 61% in China) to be further added in Thin PET by BOPET Thin Film 2024 globally Unit:KMT • Changing cost dynamics may result in closure/underutilization of older lines A G R * • Constant
Slide 34: 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 Sep-2021 Brownfield - BOPET USA 83 H2 2022-23 2.De-bottlenecking of existing film lines Other Projects India 3 Q3
Slide 35: Annexures
Annexures Contents • Shareholding Pattern • Group Structure !34
Slide 36: 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 30th June’21)
Slide 37: 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 38: 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 39: 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 Included in SET 100 Polyplex India Polyplex Thailand !38
Slide 40: 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: