Kuantum Papers Limited · NSE:KUANTUM
Kuantum Papers — Investor Presentation (August 2021)
34 slides from Kuantum Papers's investor presentation, August 2021
Slide 1: Investor Presentation — August 2021
* Kuantum Papers ltd Paper Maters INVESTOR PRESENTATION — AUGUST 2021
Slide 2: Executive Summary
7 a F Executive Summary rennet rap m Poper ier * Kuantum Papers Ltd., is one of the largest Agro based paper 7 manufacturers in India and is committed to manufacturing FY21 FINANCIALS Wy wood free, high quality maplitho, creamwove, copier and (INR Mn) Kuantum Papers ltd specialty paper. Revenues * T
Slide 3: Company Overview
ww Kuantum Papers ™ Paper Makers COMPANY OVERVIEW
Slide 4: About Kuantum Papers
About Kuantum Papers Incorporated in 1980, Kuantum Papers started its commercial operations in an economically backward village of Hoshiarpur, Punjab. They started their commercial operations with 30 TPD and are currently operating at 450 TPD, after completion of their backward integration project i
Slide 5: Board of Directors
Board of Directors Sib Jagesh Khaitan - Chairman Sh. Jagesh Khaitan is the Chairman of Kuantum Papers Ltd. He was earlier the Vice Chairman and MD of Amrit Banaspati Co. Ltd. and remained President of Indian Vanaspati Producers b Association IVPA. His entrepreneurial spirit and passion has been one
Slide 6: Key Management Team
Ww Kuantum Papers Paper Makers Sanjay Khosla - Vice President (Marketing) y Key Management Team A qualified Chartered Accountant (CA) & Company Secretary (CS) by profession, he has 30 + years of work experience in Corporate Finance and Accounts in the manufacturing sector. He has been associated wit
Slide 7: Geographical Presence & Sales Model
Mi F Geographical Presence & Sales Model Risen repels > Paper ters Jammu & Kashmir 2% Punjab 8% Delhi Haryana 31% Bihar 16% 3% Assam Uttar Pradesh A% 10% Rajasthan, Order based Manufacturing * The production is entirely order based and manufacturing is undertaken after the company receives advance o
Slide 8: FSC certification since 2011
Secured FSC® certification since 2011, License Code FSC-C109585.
Slide 9: Marquee Clientele
Ww F Marquee Clientele kant Papers m Paper Moker: Camiin at METRO | mA Sen A TPC Timited a MAGIC BR stsspescattin @AJANTA oS z macmillan OXFORD ears “446 TAXMANN =sSonas FA education UNIVERSITY PRESS @ Pearson arihant iy hn Cisessiy teams EEF Prewveress GP conrovs @ we Bharati Bhawan Aakash GSS mppr
Slide 10: Key Strengths
F Key Strengths © Pan India presence with an extensive network of 90+ dealers Long standing relationship with dealers, many associated with the company for over 3 decades Largest product Portfolio in the Paper Industry covering Maplitho, Creamwove, Copier and Specialty Paper Successful in creating a
Slide 11: Business Overview
W Kuantum Papers te Paper Makers BUSINESS OVERVIEW aa
Slide 12: Current Manufacturing Facilities
F Current Manufacturing Facilities Pulping Facilities Paper Machines Chemical Recovery Plant Segment * Total Capacity: 380 TPD + Agro based pulp: 200 TPD Capacity * Wood pulp: 180 TPD * Total capacity: 450 TPD * Machine 1- 30 TPD * Machine 2 - 35 TPD * Machine 3 - 115 TPD * Machine 4 - 270 TPD * Tot
Slide 13: Manufacturing Process
F Manufacturing Process Kuantum Papers q------ -----<¢---,- Chemical * E ' Recovery Plant Steam . - -----(}--<---- fit ~~ alate wer Caustic Soda ——_—_» wil” Effluent Treatment Wood Pulp Mill oo Raw Material @s Cutting Pulp Cooking & Washing Pulp Screening & Aggregation Bleaching Paper Manufacturing
Slide 14: Raw Material Sourcing
F Raw Material Sourcing Ww Kuantum Papers Paper okers Kuantum has an integrated Pulping facility with separate Agro Pulping and Wood Pulping streets having a total capacity of 380 MT of pulp per day for paper manufacturing. Kuantum uses the following agro residues in its Agro Pulping Street (200 TPD
Slide 15: Technical Collaboration with Tanovis AG
. . . : a ¥ Technical Collaboration with Tanovis AG sas Paper okers The company has a COLLABORATION with Tanovis AG (formerly Granit Recherché Development SA) FOR THE LIGNIN PRECIPITATION PLANT ¢ Tanovis AG, is a Swiss company with global operations. It is in the business of providing process techno
Slide 16: Technical Collaboration with Specialty Minerals, USA
Technical Collaboration with Specialty Minerals, USA satis The company has a COLLABORATION with Specialty Minerals Inc. * We have a first-of—its-kind backward integrated PCC (Precipitated se MINERALS Calcium Carbonate) Plant in an Agro based operations in the world, set up in collaboration with Spec
Slide 17: Social Farm Forestry Program
Ww F Social Farm Forestry Program franca Papas Paper okers Social farm forestry programs are green sustainable initiatives undertaken by paper companies in order to contribute to the small and marginal farmers of barren, non fertile land, apart from providing a catalyst to deforestation. These initi
Slide 18: Writing and Printing Products
F Writing and Printing Products Agro and Wood based paper plants manufacturing paper using wheat straw, wood chips, sarkanda, bagasse and veneer waste. Different types of paper: Creamwove, Maplitho, Copier, Ledger, Cartridge, Stiffner, Colour, Parchment and Bond. | K:one | K-oNe | K-oNe | K-one | KE
Slide 19: Specialty Papers
F Specialty Papers Category Brand GSM Range Krayo 49-130 Colour Kosmo Color 60-130 Kreda Ledger 58-90 Ledger Kodexa Ledger 58-90 Executive Bond Kuantum Bond 70-100 Color Copier Kaleela 72 Cartridge Kosmo cartridge 60-130 Stiffner Kosmo Stiffner 68-180 Kosmo Parchment Ns 105 Parchment Kosmo Parchment
Slide 20: Backward Integration & Modernisation Project
7, Kuantum Papers % Paper Makers BACKWARD INTEGRATION & MODERNISATION PROJECT (Completed in March’21) 20
Slide 21: Backward Integration Project: Pulping Facilities
F Backward Integration Project completed in Mar’21 rmasgtiscee Paper okers A transformative effort undertaken for up-gradation, replacement and addition of machinery across these 3 areas which are: 1. Pulping Facilities 2. Chemical Recovery Plant 3. Co-Gen Power Plant Pul Capacity Expansion Programm
Slide 22: Backward Integration Project: Chemical Recovery Plant
F Backward Integration Project completed in Mar’21 rane apr > Paper ters : + & i aay Che al Recovery Plant A chemical recovery plant of 500 TPD supplied by Andritz has been installed to process caustic from Black Liquor The Chemical Recovery Plant has three major components: + Recovery Boiler + Evap
Slide 23: Backward Integration Project: Co-Gen Power Plant
F Backward Integration Project completed in Mar’21 rmasgtiscee m Poper okers' Co — Gen Power Plant The need of the hour is to be self-sufficient in power requirement in order to sustain N operations on a long term basis. Kuantum has a captive Co-generation Power Plant in which we have added: * A hig
Slide 24: Project Benefits
Project Benefits Optimizing the integration of Chemical Recovery Plant, Co-Gen Power and own Hard Wood Pulp Mill leading to significant improvement in EBITDA Margins Increased wood pulp production capacity will eliminate dependency on imported hardwood Additional benefits of Caustic Recovery & Co -G
Slide 25: Future Growth Strategy
* F Future Growth Strategy kuantur Papers Strengthening of Plant through Project Upgradation across Wood Pulping, CRP & Co-Generation Power plant Focusing on cost optimization and quality enhancement Creating a portfolio of higher proportion of value added specialty products from additional pulping
Slide 26: Foray into New Specialty Products
F Foray into New Specialty Products Product Description Industries Used Greaseproof paper is made under hygienic conditions from pure wood pulp which gives excellent grease resistance and oil hold out properties Food Packaging Industries Cupstock Base is a single layer and multi- layer virgin grade
Slide 27: Industry Overview
We) Kuantum Papers Paper Maker: INDUSTRY OVERVIEW 27
Slide 28: Paper Industry
* y Paper Industry rmasgtiscee > Paper Mokers In terms of paper production, India contributes about 4.2% to the global market. Domestic paper Trend in W&P Paper Demand demand grew by 7.5% in the last decade, while global average growth was 0.5%. million tonnes * Currently, the Indian paper industry
Slide 29: Financial Overview
“ Kuantum Papers Paper Makers FINANCIAL OVERVIEW
Slide 30: Income Statement
F Income Statement Particulars (INR Mn) FY19 FY20 FY21 Q1-FY22 Operational Income 7,935 7,447 4,039 1,475 Total Expenses 6,379 6,262 3,746 1,320 EBITDA 1,556 1,185 293 155 EBITDA Margins (%) 19.61% 15.91% 7.25% 10.51% Other Income 88 88 100 15 Depreciation 251 317 348 121 Finance Cost 284 304 277 17
Slide 31: Balance Sheet
F Balance sheet Assets (INR M FY20 FY21 FY20 FY21 Non-current assets Property, plant and equipment 10,201 14,263 Equity share capital 87 87 Capital work-in-progress 3,096 205 Other: equity 8,230 8,085 Total equity 8,317 8,172 Investment property 79 78 Liabilities Other intangible assets 55 17 Non-cu
Slide 32: Financial Highlights
Financial Highlights Operational Revenue (INR Mn) 7,935 7,447 6,427 7,143 4,039 1,475 FY17 FY18 Fy19 FY20 FY21 Q1-FY22 Net Debt to Equity 032 034 0.37 nun ET FY17 FY18 FY19 FY20 FY21 EBITDA (INR Mn) & EBITDA Margin (%) 1,556 1,475 ii Il FY17-FY18.««-FY19.«sFY20.—=s-FY21-«QU-FY22 Net Worth (INR Mn) 8
Slide 33: Capital Market Data
¥ Capital Market Data rane apr 100% EFORCE 80% 60% 40% 20% 0% -20% Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 ————Kuantum o==Sensex Price Data (30* June, 2021) INR Shareholding Pattern as on 30" June, 2021 Face Value 1.0 Market Price 76.4 re 52 Week H/L 88.9
Slide 34: Disclaimer
. . 4) F Disclaimer satis Paper okers No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all eve