Slide 1: Cover letter to stock exchanges for AGM presentation
________________~POLYPLE)( August 31, 2020 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 Mumba
Slide 2: Polyplex Corporation Limited 2020 Annual General Meeting of Shareholders
Polyplex Corporation Limited (PCL) 2020 Annual General Meeting of Shareholders August 31st 2020
Slide 3: Polyplex: At a Glance
Polyplex: At a Glance Q1 20-21 Highlights FY 19-20 Highlights 1,155 Cr -3% +4% 4,465 Cr -2% Sales Revenue# QoQ YoY Sales Revenue# YoY 299 Cr +21% +23% 944 Cr +18% Normalized EBITDA* Normalized EBITDA* (26% EBITDA Margin) 478bps 410bps (21% EBITDA Margin) 352bps QoQ YoY YoY # Excludes other operating
Slide 4: 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 !3
Slide 5: Global leadership position with industry leading scale & cost
Global leadership position with industry leading scale & cost !4
Slide 6: 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 polyester film Global #5 in PET Film* 550 413 Polyplex By Capacity Netherlands (KMTPA) Korea 275 USA Japan Turkey Mexico In
Slide 7: Global Presence & Portfolio
Global Presence & Portfolio Operating company-wise breakup of sales Business segment-wise breakup of sales Q1 FY 20-21 Q1 FY 20-21 2% 3% 1% 9% 4% 5% 21% 5% 6% 18% 13% 26% 66% 21% Thin PET Film Coated Film Polyplex India Polyplex USA OPP Thick PET Film Polyplex Thailand Polyplex Turkey CPP/Blown PP C
Slide 8: 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) 55,000 35,000 33,600 4,080 257 83 India 77
Slide 9: Industry leading cost structure
Industry leading cost structure Polyplex CUF vs Industry (Thin PET) 2,25,100 100% Industry leader with near 100% 99% 100% 91% 95% 98% Capacity Utilization through 90% 1,68,825 82% 82% 75% business cycles 76% 70% 72% 69% • Globally one of the lowest cost 1,12,550 2,03,481 50% manufacturers, driven by
Slide 10: Strong financial & operational track record
Strong financial & operational track record !9
Slide 11: FY'19-20 Performance Snapshot
FY’19-20 Performance Snapshot YoY Growth (FY19-20 v/s FY18-19) Sales Volume 8% (All Films) 2,72,662 MT Sales Revenue# -2% 4,465 INR Crores Normalized EBITDA 18% 944 INR Crores PAT (Before Minority) -15% 494 INR Crores EPS 88.18 INR/Share -15% ROCE: 18% ROE : 16% (Excluding Cash & Bank Balance) Excep
Slide 12: Q1'20-21 Performance Snapshot
Q1’20-21 Performance Snapshot QoQ Growth YoY Growth (Q1 20-21 v/s Q4 19-20) (Q1 20-21 v/s Q1 19-20) Sales Volume -6% 8% (All Films) 70,196 MT Sales Revenue# -3% 4% 1,155 INR Crores Normalized EBITDA 21% 23% 299 INR Crores PAT (Before Minority) 1438% 114% 330 INR Crores EPS 56.26 INR/Share 684% 122%
Slide 13: 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 1.97 1.88 1,98,056 1.04 1.15 1,70,456 1,78,782 0.93 1.02 Better VA margins due to decline in Q1 RM cost partially offset by 54,512 corresponding fall
Slide 14: Normalised EBITDA
Normalised EBITDA Normalised EBITDA* - Trend Normalised EBITDA* (FY 19-20 vs FY 18-19) 13 50 26% 1,200 26% 139 22 801 -8 -73 944 21% INR Crores 900 18% 20% 17% INR Crores 600 13% EBITDA Volume VA Rate VA Other Film & Other Fixed Cost Other EBITDA 944 FY 18-19 variance variance (Thin PET & OPP) (Thin
Slide 15: Strong Financial Performance
Strong Financial Performance Sales Revenue* (INR Crores) Operating Cash Flow Deployment Trend (INR Crores) 21 37 4,545 4,465 3,551 74 236 Q1 1,155 209 17-18 18-19 19-20 20-21 * Excludes other operating revenues Annualised 199 PBT Normalized# (INR Crores) 472 79 370 106 37 137 62 902 -77 -75 742 563
Slide 16: Strong Liquidity
Strong Liquidity Despite major Capex, D/E net cash 500 positive due to generation of 472 4 robust free cash flow from operations 370 375 3 250 2 137 125 1 62 0 0 0 0 17-18 18-19 19-20 Q1 20-21 Net Debt/Equity (times) Capex (INR Crores) Cash & Debt Position as on 30th June 2020 INR Crores 1,404 1,017
Slide 17: Strong Financial Performance
Strong Financial Performance EPS (INR/Share) Dividend Div Per Share (INR/Share) Div Yield %* 10.17% 60 11.00% 8.22% 7.49% 45 8.25% 103.19 31 88.18 30 5.50% 30 51 3.45% 49.85 56.26 40 15 32 2.75% 20 17 10 17-18 18-19 19-20 Q1 20-21 17-18 18-19 19-20 Q1 20-21 * Average stock price for the period has b
Slide 18: Total Shareholders' Return
Total Shareholders’ Return 1,550 3,300 1,600 1,408 Last 1 Last 3 Last 5 Since IPO Shareholders’ Return 1,236 year years years (1988) 2,475 1,117 1,200 1,029 980 952 (A) Total Returns* INR Crores 916 850 781 - Polyplex INR 1,650 717 703 800 73% 28% 30% 23% 3,029 3,231 2,548 2,771 - Nifty 500 - TRI 4%
Slide 19: Second Quarter 20-21 Guidance
Second Quarter 20-21 Guidance 290 299 242 236 248 217 Normalised EBITDA (INR Crores) Q1 19-20 Q2 19-20 Q3 19-20 Q4 19-20 Q1 20-21 Q2 20-21 The forward-looking statements reflect Polyplex’s expectations of its next quarter earnings. These are based on certain assumptions as on date and are subject to
Slide 20: Continuous and high growth in demand
Continuous and high growth in demand !19
Slide 21: Global Demand Growth
Global Demand Growth 4,800 Retail format & 3,600 E-commerce Increasing Improved Environmental 2,400 4,340 4,558 4,791 Quality of Life 3,608 3,882 4,133 Awareness 2,985 3,169 3,369 PRIMARY 1,200 GROWTH Increasing DRIVERS Population 2014 2015 2016 2017 2018 2019 2020 2021 2022 Consumerism Growth Globa
Slide 22: Continuous Growth
Continuous Growth Polyplex growth more that the average market growth rate Capacity is in ‘000 MT 992 1000 Capacity CAGR 11% 863 827 800 652 666 618 629 635 642 600 440 448 455 400 287 200 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Base Film Resins (incl. Recycled) Metallised F
Slide 23: Stable earning across business cycles
Stable earning across business cycles !22
Slide 24: 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 Polypropylene/ PP/PE Resin Holography Metallized Polyethylene Paper O
Slide 25: Product Applications & Sales Mix - Q1 FY 20-21
Product Applications & Sales Mix - Q1 FY 20-21 Sachet Pack Susceptor Film 74% Stand up Pouch Packaging Can Lamination Easy Peeling Lids Customers Aroma Pack Sprouted Pack Ready 2 Eat Pack PV Backsheets Electrical Grade 26% Electronic Grade Industrial Window Films Optical Grade Customers Liner Grade
Slide 26: Strong R&D Capability
Strong R&D Capability A separate R&D department 15 dedicated personnel in Focus on providing innovative registered with the Corporate R&D supplemented by solutions to customers. local technical service and R&D Department of Scientific and Collaborative Research with team having significant experienc
Slide 27: VA Stability
VA Stability PCL VA v/s China VA v/s Crude Stable VA despite crude price volatility 2.00 75 75 80 67 69 69 1.71 61 63 62 63 54 52 60 1.43 49 50 50 $/ Barrel 46 46 1.10 1.02 0.99 1.02 $/Kg 1.14 0.93 0.98 0.93 0.98 0.93 0.85 0.90 0.91 0.82 0.84 0.84 40 0.86 0.73 0.72 30 0.57 0.72 0.75 0.68 0.65 20 0.5
Slide 28: Polyplex & Sustainability
Polyplex & Sustainability Minimize product impact through optimized product design: Target Product: Portfolio • Down-gauging 8-10μ • RPET with up to 90% PCR content • Co-create design using principles of circular economy • BioPET - Bio content 30% • Mono material (Low SIT heat sealable PET) structur
Slide 29: Polyplex & Sustainability
Polyplex & Sustainability EcoBlue Limited, Thailand provides sustainable solutions for film based post consumer and industrial process waste • Recycling of difficult to recycle materials like films, coated films, laminates & fibre waste with oils • US FDA approved 3D Pure rPET resin for bottle, film a
Slide 30: Industry Outlook
Industry Outlook OUTLOOK • Approx.0.87 Million Tons of Capacity (more than 56% in China) to be further added in Thin PET from 2020 to 2023 globally • Changing cost dynamics may result in closure/underutilization of older lines • Constant up-gradation in technology (10.6 mtr wide line) to remain a lo
Slide 31: Growth Plans
Growth Plans Capital Cost Expansion in BOPP segment will enable the Company to Projects Location (In USD Likely Start Up actively participate in new developments in sustainability. million) Other benefits related to on-going Projects: BrownField - BOPP Indonesia 53 H1 FY 21-22 1.Expansion of product
Slide 32: Fallout of Covid for PET Film Industry
Fallout of Covid 19 for PET Film Industry • Flexible packaging demand (74% of our sales) for consumer staple has been at elevated level since March 2020 and is expected to remain at normal to slightly elevated level in the medium term. The demand for discretionary items may see some minor decline in
Slide 33: Polyplex Response - Covid
Polyplex Response - Covid 19 Towards Society: Towards Employees: 1. Supporting the less privileged in participation with various NGO’s 1. Ensuring health and safety of the employees as the top priority 2. Contribution of necessary medical equipments and protective 2. Stringent social distancing meas
Slide 34: 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 35: 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 !34