Jindal Poly Films Limited · NSE:JINDALPOLY
Jindal Poly Films — Q2 FY2016 Earnings Presentation
49 slides from Jindal Poly Films's earnings presentation, November 2015
Slide 1: Q2FY16 Investor Presentation November 2015
Q2FY16 Investor Presentation November 2015 1
Slide 2: H1 FY16 Performance Highlights
H1 FY16 Performance Highlights • Revenue at Rs 3,692 Crores led by Operating Income Rs Crores – Jindal Films Rs 2,359 Crs (63% of sales) +63% – JPFL stand alone –Rs 1,325 crs ( 36% of sales) 596 – Global Nonwovens Ltd – Rs 8 crs 366 • Operating income at Rs 596 Crores a growth of 63% – Margin improv
Slide 3: B. C. Jindal Group
B. C. Jindal Group Vision To be an acknowledged leader in maximizing stakeholder value, profitability and growth by being a financially strong, customer – friendly and an innovative organization Values Openness and Transparency Integrity & Honesty Dedication and Commitment Creativity & Teamwork Purs
Slide 4: Overview
Overview Flagship Company of B.C. Jindal Group Largest single location Flexible packaging Sales Presence manufacturing Facility Across at Nasik, Maharashtra 40+ Countries R& D Centers in US & Belgium 3 plants in Europe 2 plants in US 1 plant in India One of the Largest 300+ patents Manufacturers of
Slide 5: Business Evolution
Business Evolution Reorganization 2014 – 2015 • Merged Manufacturing business of Jindal Photo • 14,000 TPA coater pant being commissioned • Received BRC Packaging and Packaging Materials – Standard Certified at Nasik Facility Acquired – Exxon Mobil BOPP films Business • Another 8.7 meter, thin PET f
Slide 6: Operating Management Structure
Operating Management Structure • Ownership and Executive India Business – Clearly defined roles & responsibility • Managed by a „Management Committee‟ (MC) comprising of high quality well experienced professionals • Stringent internal control and monitoring systems in place • Independent management
Slide 7: Management Team – JPFL India
Management Team – JPFL India Sanjay Mittal Whole time Director With over 2 decades in Jindal Poly Films, he is a well qualified professional with more than 30 years of experience in Accounts, Taxation and Management Mohan B Vipra Senior Vice President Engineer with 29 years experience, he heads the
Slide 8: Team – Jindal Films Europe
Team – Jindal Films Europe Mirek Tokaj Sales and Marketing Director With over 20 years with the company he has held various positions in Sales and Marketing including Product Manager and has been leading the Sales and Marketing Organization in Europe, He holds a Master‟s degree in Mechanical Enginee
Slide 9: Team – Jindal Films US
Team – Jindal Films US Scott Van Winter Executive Vice President With an MBA in Administration and Finance, he has held various leadership positions in Sales, Marketing in the Flexible packaging industry Sitakant Chaudhury Chief Financial Officer He has held the position of a CFO for international p
Slide 10: Corporate Structure
Corporate Structure Subsidiaries & Associates Jindal Poly Films Ltd BOPET 127,000 TPA, BOPP 210,000 TPA 60.45% 51% 40% Global Nonwovens Ltd. JF Netherland B.V Rexor Holding SAS 18,000 TPA JF Dutch B.V. All operating subsidiaries BOPP Italy: 35,500 TPA Netherlands: 61,700 TPA Belgium: 56,700 TPA US:
Slide 11: Business Structure
Business Structure FY 15 Revenues Jindal Poly Films Leader in BoPP and BOPET films in India JPFL - India 36% Jindal Films 63% Jindal Films Acquired BOPP films business Others 1% Leader in BOPP films in US and Europe, specialising in metalized and coated films 11
Slide 12: Business Details
Business Details 12
Slide 13: Jindal Poly Films - A brand recognised for Quality and Reliability
Jindal Poly Films - A brand recognised for Quality and Reliability • Leading producer of high performance Polyester and Product Use BOPP films (Plain, metalized and coated) for use in flexible packaging industry Packaging • Worlds largest single location manufacturing facility for plastic films in N
Slide 14: An undisputed Leader in Global Flexible Packaging
An undisputed Leader in Global Flexible Packaging Exxon Mobil – Acquisition Details Jindal Poly Films Limited – Post Consolidation • Jindal Poly Films India acquired the global BOPP films business of Exxon Mobil (now called “Jindal ~5% global Market share in BOPP films Films”) in 2013 for USD 216
Slide 15: Balanced Proposition to Business De-Risking
Balanced Proposition to Business De-Risking Jindal Films Jindal Poly Films Ltd (Europe & US) Premium FMCG Standard Products Products Latest Orientation Leading R&D & Process Technology Know – how Highly Competitive Cost Downstream Customer Global Solutions for Structure Relations and Sales Network P
Slide 16: Meticulous turnaround of the acquired entity
Meticulous turnaround of the acquired entity... Quality of Revenue 4x EBIDTA within a year of Took targeted price increases across product categories and also significantly acquisition reduced the sales of loss making products USD 60 Mn USD 52 Mn SG&A Cost Reduction Renegotiated all service and proc
Slide 17: Jindal India Powertech Ltd
Jindal India Powertech Ltd • 51% owned by Jindal Photo Ltd and 49% by Jindal Poly Films Plant Details Investment & Finance Ltd • Operates Thermal power plants under Jindal India Thermal Location: Angul, Orissa Power Ltd 2 X 600 MW • Total Project Cost ~ Rs 7,500 Crores Fully operational Pithead dome
Slide 18: Rexor SA
Rexor SA • Present in luxury packaging and a leader in tear tapes and film wrap in Europe Tear – Tape Food Sealing • Manufacturing Facility – Paladru, France – Coating capacity of 5,200 TPA – Metalizing capacity of 3,500 TPA • Innovative and tailor made solutions supported by a strong R&D department
Slide 19: Global Nonwovens Ltd
Global Nonwovens Ltd Polypropylene based nonwoven packaging solutions NonWovens with REICOFIL Germany Technology SS Rolls – Weight 10 – 17 GSM 60% Our Range SMS Rolls – Weight 12 – 55 GSM 40% Applications Hygiene and medical applications Nasik – plant commissioned on 1st July 2015, Capacity Capacity
Slide 20: Jindal Photo
Jindal Photo Jindal Photo (Manufacturing Facility) Jindal Poly Films Ltd Merger Effective from 1st April 2014 A leading photographic importer, Global Leader in Polyethylene producer / manufacturer and packaging films seller in India Business of Manufacture, production, sale and distribution of photo
Slide 21: Product Details
Product Details 21
Slide 22: BOPET Films
BOPET Films Domestic Market share of ~ 28% Product Biaxially –oriented polyethylene terephthalate Characteristic Improves shelf life of product and increases product appeal Product Thin : 8 – 50 Micro Range Thick: 50 – 350 Micro Thin: FMCG packaging, lamination to other plastic films Applications Th
Slide 23: BOPP Films
BOPP Films Domestic Market share of ~ 34% , Global Market Share ~ 5% Product Biaxially –oriented polypropylene Characteristic Higher moisture retention properties, easy to recycle Product 8 to 75 Micron Range 3 layer and 5 layer OPP film Textile, Tape, FMCG packaging, Labels Applications Lamination
Slide 24: Speciality Films
Speciality Films Metalized Films Coated Films Product Vacuum deposits of Aluminum on Provides advanced barrier, print Characteristic BOPET and BOPP Films to provide better receptivity barrier Main use in packaging of processed and semi processed food items with moisture, oxygen Pressure sensitive la
Slide 25: Product Value Chain
Product Value Chain Polypropylene Resin Rolls / Stacks to Customization & Film Producer End Markets and Coatings Customers Converting • Core resins • Orienters • Plain clear films • Printing & • Flexible food • Specialty resins • Coaters laminating packaging for snacks, • Coated films and coatings c
Slide 26: Key Customers
Key Customers elle BRITISH AMERICAN ToBacco
Slide 27: Packaging Films Market
Packaging Films Market 27
Slide 28: Global BOPP Demand and Supply
Global BOPP Demand and Supply • Low utilization rates in emerging markets will drive increased exports to developed markets • Global Utilisations reaching peak levels (‘000 T) Demand Capacity Utilization 12,000 80% 70% 10,000 60% 8,000 50% 6,000 40% 30% 4,000 20% 2,000 10% 0 0% 2006 2007 2008 2009 2
Slide 29: BOPP Regional Supply & Demand
BOPP Regional Supply & Demand USA Europe, Middle East & Africa (‘000 T) Demand Capacity Utilization Demand Capacity Utilization 6000 100% 1600 100% 90% 90% 1400 5000 80% 80% 1200 70% 70% 4000 1000 60% 60% 800 50% 3000 50% 600 40% 40% 30% 2000 30% 400 20% 20% 200 10% 1000 10% 0 0% 0 0% 2006 2007 2008
Slide 30: Global End Use Market for BOPP Films
Global End Use Market for BOPP Films • End use applications can be broadly divided into food (60% of the market by volume) and non-food markets – Labelling accounts for around 7% of OPP demand • OPP film forecast to grow at 6.6% per year to 2016 – Food packaging films to advance at 7.4% per year – n
Slide 31: Business Drivers
Business Drivers 31
Slide 32: Growth Drivers
Growth Drivers Market Leadership 01 Economies of Scale 02 Product Offerings 03 Sustained Growth Rate 04 Global Reach 05 State of Art Facilities 06 Technology Leadership 07 32
Slide 33: 1. Market Leadership
1. Market Leadership... Dominated by Food Packaging World Consumption Global BOPP Market ROW USA 16% 13% Other ~5% share of Global China 40% BOPP films market Food 24% Europe, packaging Middle East 60% & Africa 48% Indian BOPET Industry Indian BOPP Industry Indian Market JPFL 28% With only 1/3rd con
Slide 34: 2. Driving Economies of Scale
2. ...driving Economies of Scale World largest single location BOPP ~5% Global Market Share in BOPP facility at Nasik provides operational Films efficiencies Indian Market Share in BOPET ~28% Highly cost competitive structure Films ~34% Indian Market Share in BOPP Large global requirement of PP
Slide 35: 3. Product Offerings
3. Product Offerings... ...Covering the value chain in Flexible Packaging Coated Films JPFL Metalized films White Opaque Films Jindal Films Standard BOPET & BOPP films 35
Slide 36: 4. Sustained Growth Rate – An Opportunity
4. Sustained Growth Rate – An Opportunity Increased government India Opportunity A low cost spending in the Preference for the Increasing penetration manufacturer - rural economy use of smaller of packaged food and Increasing Export pack sizes along personal products in to high cost with growing the
Slide 37: 5. Global Reach
5. Global Reach Presence in over 40 countries with sales channels to reach customers in over 150 countries Revenue Breakup JPFL Standalone ROW 28% India 72% Revenue Breakup Jindal Films Presence Asia 3% Manufacturing Facilities Innovation Centre US 36% Europe 61% 37
Slide 38: 6. State of the art Manufacturing Facilities
6. State of the art Manufacturing Facilities State of the art Machinery Global Presence India – Nasik, Maharashtra; Europe – Belgium, Italy, Netherlands; US – Georgia, Oklahoma Largest Single – location manufacturing capacity BOPP Production Line Single – location capacity – Largest in the world at
Slide 39: Aerial view of our facilities US & Europe
Ariel view of our facilities US & Europe Georgia – US Oklahoma – US Netherlands – Europe Belgium – Europe Italy – Europe 39
Slide 40: 7. Technological Leadership
7. Technological Leadership Technology Focus on Value creation Product, Process and Understand source of value Application technology creation by product platform Collaborative development projects with customers Innovation Pipeline Concept Development, 300+ Patents Technology Development and Commer
Slide 41: Financial & Operating performance
Financial & Operating performance 41
Slide 42: Consolidated Financials: Quarterly & Half Yearly
Consolidated Financials: Quarterly & Half Yearly Quarterly Half Yearly Particulars (Rs. in Crores) Q2FY16 Q2FY15 YoY % H1FY16 H1FY15 YoY % 1,803 1,894 -5% Revenue 3,694 3,879 -5% 1,561 1,723 Operating Cost 3,097 3,513 243 171 42% Operating Income 597 366 63% 13% 9% Operating Income Margin 16% 9% 6 -
Slide 43: Standalone Financials: Quarterly & Half Yearly
Standalone Financials: Quarterly & Half Yearly Quarterly Half Yearly Particulars (Rs. in Crores) Q2FY16 Q2FY15 YoY % H1FY16 H1FY15 YoY % 612 675 -9% Revenue 1,333 1,342 -1% 530 583 Operating Cost 1,096 1,177 82 92 -11% Operating Income 237 165 43% 13% 14% Operating Income Margin 18% 12% 7 6 Other In
Slide 44: Managing Debt at Comfortable Levels
Managing Debt at Comfortable Levels • Global Non Woven project under TUFS with interest and capital subsidy • FY16 Financing Developments – – Refinancing of the acquisition loan of USD 91.84 Mn with a new loan from a consortium of Indian, European Banks and American Banks – The same has resulted in
Slide 45: P&L Statement
P&L Statement Standalone Consolidated Particulars (Rs. in Crores) FY15 FY14 FY15 FY14 2,504 2,631 Revenue 7,287 5,143 2,222 2,345 Operating Cost 6,641 4,727 283 286 Operating Income 646 416 11% 11% Operating Income Margin 9% 8% 39 29 Other Income 13 27 55 94 Depreciation 227 188 26 53 Finance Cost 8
Slide 46: Balance Sheet
Balance Sheet Standalone Consolidated Particulars (Rs. in Crores) Sep ‘15 Mar ‘15 Sep ‘15 Mar ‘15 Shareholders Funds 1,632 1,458 Net Worth 2,113 1,690 - - Minority Interest 568 468 482 436 Total Non-current Liabilities 2001 1954 297 256 Long-term borrowings 1,298 1,229 185 180 Other Long- term Liabi
Slide 47: Jindal Films - P&L Statement
Jindal Films - P&L Statement USD Million H1 FY16 FY15 Financials as per IFRS Revenue 370 791 Operating Cost 318 732 Operating Income 52 60 Operating Income Margin 14% 8% Depreciation 15 32 Finance Cost 2 33 PBT 36 -4 Tax Expenses 11 -6 PAT from ordinary activities 25 2 Bargain purchase 0 0 Net Profi
Slide 48: Jindal Films - Balance Sheet
Jindal Films - Balance Sheet USD Million Sep ‘15 Mar ‘15 Mar ‘14 Financials as per IFRS Shareholders Funds 157 129 152 Total Non-current Liabilities 173 175 243 Debt & finance 93 98 141 Other Long- term Liabilities 80 78 102 Total Current Liabilities 145 159 175 Debt & financing 14 55 26 Accounts pa
Slide 49: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Jindal Poly Films Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securit