Slide 1: Regulation 30 filing cover letter to exchanges
------ ~POLYPLE)( February 13, 2020 The Manager - Listing Department, The General Manager - Li~ting 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- 4000
Slide 2: Third Quarter FY 19-20 Financial Results & Summary
Third Quarter FY 19-20 Financial Results & Summary Polyplex Corporation Limited (PCL) February 13, 2020
Slide 3: 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 4: Polyplex: At a Glance
Polyplex: At a Glance Q3 19-20 Highlights YTD 19-20 Highlights 1,084 Cr Flat -7% 3,279 Cr -3% Sales Revenue# QoQ YoY Sales Revenue# YoY 236 Cr +9% +25% 695 Cr +15% Normalized EBITDA* QoQ YoY Normalized EBITDA* YoY (22% EBITDA Margin) (21% EBITDA Margin) # Excludes other operating revenues * Normalis
Slide 5: 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 !4
Slide 6: Global leadership position with industry leading scale & cost
Global leadership position with industry leading scale & cost !5
Slide 7: Global Leadership
Global Leadership Unique model of on-shore, off-shore and near-shore manufacturing Global #6 in PET Film* 550 413 Polyplex By Capacity (KMTPA) 275 Netherlands Korea USA Japan 138 Turkey Mexico China India Thailand 0 CIFU Group Hengli Group Uflex Industries Polyester Films SKC Co Limited DuPont-Teijin
Slide 8: Global Presence & Portfolio
Global Presence & Portfolio Operating company-wise breakup of sales Business segment-wise breakup of sales YTD 19-20 YTD 19-20 3% 1% 3% 6% 2% 4% 27% 17% 7% 9% 59% 24% 13% 25% Polyplex India Polyplex USA Thin PET Film Coated Film Polyplex Thailand Polyplex Europa OPP Thick PET Film Other operations (
Slide 9: Industry leading scale & vertical integration
Industry leading scale & vertical integration PET Film Resin* Base Films* Coated/Value Added Films* (MT) PET Thin PET Thick BOPP CPP Blown PP Metallized Holography Coated TMP (MT) (MT) (MT) (MT) (MT) (MT) (MT) (Million SQM) (Million SQM) 55,000 35,000 34,613 4,080 286 83 India 77,600 42,000 28,800 1
Slide 10: Industry leading cost structure
Industry leading cost structure Polyplex CUF vs Industry (Thin PET) 2,00,000 110% 49,369 101% Industry leader with near 100% 99% 1,50,000 90% 91% 95% 83% Capacity Utilization through 84% 81% business cycles 76% 70% 70% 72% 69% 1,00,000 55% 1,76,742 1,84,300 1,56,535 1,67,379 1,68,870 1,48,106 • Glob
Slide 11: Strong financial & operational track record
Strong financial & operational track record !10
Slide 12: Q3'19-20 Performance Snapshot
Q3’19-20 Performance Snapshot QoQ Growth YoY Growth (Q3 19-20 v/s Q2 19-20) (Q3 19-20 v/s Q3 18-19) Sales Volume 4% 9% (All Films) 67,134 MT Sales Revenue# Flat -7% 1,084 INR Crores Normalized EBITDA 9% 25% 236 INR Crores PAT -36% -6% 124 INR Crores EPS 22.19 INR/Share -34% -8% YTD 19-20 ROCE (Annua
Slide 13: Thin PET Film - Trend
Thin PET Film - Trend Thin PET Film (Plain+Met) Sales Volume* (MT) Ex-Factory Price - Thin PET Film (Plain+Met) USD/Kg Value Addition - Thin PET Film (Plain+Met) ** USD/Kg 2.26 47,541 2.20 2.11 1.97 2.01 Q3 1.75 49,519 Additional volume mainly due to 1,90,165 1,70,456 1,78,782 Q2 Indonesia 1.07 1.05
Slide 14: Normalised EBITDA
Normalised EBITDA Normalised EBITDA* - Trend 21% 1,000 18% 21% 16% 17% 750 16% INR Crores Q3 236 500 927 11% 801 Q2 217 250 495 588 5% Q1 242 16-17 17-18 18-19 YTD 19-20 Annualised Normalised EBITDA Normalised EBITDA as % of Sales Revenue Normalised EBITDA* (Q3 19-20 vs Q2 19-20) 7 9 26 1 236 INR Cr
Slide 15: Strong Financial Performance
Strong Financial Performance Sales Revenue* (INR Crores) PAT (INR Crores) 1,093 157 Q3 Q3 1,084 124 Variations mainly 4,545 4,372 584 630 due to FX gains/ 3,551 Q2 Q2 3,180 (losses) 1,084 361 194 on reinstatement 284 of long term loans Q1 Q1 1,111 154 16-17 YTD 19-20 YTD 19-20 17-18 18-19 16-17 17-1
Slide 16: Strong Financial Performance: EPS, Dividend, ROCE, ROE
Strong Financial Performance EPS (Rs/Share) Dividend Div Per Share (Rs/Share) Div Yield %* 27 10.17% 60 11.00% Q3 8.22% 22.19 45 8.25% 103.19 108 Q2 30 5.50% 72.44 33.48 51 2.21% 40 49.85 15 2.75% Q1 25.33 7 16-17 17-18 18-19 YTD 19-20 16-17 17-18 18-19 * Average stock price for the period has been
Slide 17: Strong Liquidity
Strong Liquidity 400 Despite significant Capex, 370 389 4 D/E - Net Cash Positive 300 3 200 2 137 100 72 1 0 0 0 0 16-17 17-18 18-19 YTD 19-20 Net Debt/Equity (times) Capex (INR Crores) Cash & Debt Position as on 31st Dec 2019 INR Crores 1,154 916 794 645 149 238 Polyplex Corporation Limited & Polyp
Slide 18: Fourth Quarter 19-20 Guidance
Fourth Quarter 19-20 Guidance 225 220 242 236 198 217 193 190 Normalised EBITDA (INR Crores) Q1 18-19 Q2 18-19 Q3 18-19 Q4 18-19 Q1 19-20 Q2 19-20 Q3 19-20 Q4 19-20 The forward-looking statements reflect Polyplex’s expectations of its next quarter earnings. These are based on certain assumptions as
Slide 19: Continuous and high growth in demand
Continuous and high growth in demand !18
Slide 20: Global Demand Growth
Global Demand Growth 4,800 3,600 Increasing Improved Environmental 2,400 4,281 4,499 4,730 Quality of Life 3,608 3,882 4,076 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 Global Thin PET Demand Growth (K
Slide 21: Continuous Growth
Continuous Growth Polyplex growth more that the average market growth rate Capacity is in ‘000 MT 950 904 Capacity CAGR 10% 813 813 760 639 649 654 614 624 631 570 440 448 455 380 287 190 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Base Film Metallised Film (incl. Holo & TMP) Re
Slide 22: Stable earning across business cycles
Stable earning across business cycles !21
Slide 23: Value Chain
Value Chain NATURAL BASIC RAW PLASTIC & INTERMEDIATE RESOURCES PETROCHEMICALS MATERIALS PRODUCTS Ethylene MEG Packaging & Industrial Customers Film Grade PET Coating Natural Gas Film Paraxylene PTA Base Films Metallizing Transfer Polypropylene PP Resin Holography Metallized Paper Oil Paper Polyplex’
Slide 24: Product Applications & Sales Mix - YTD 19-20
Product Applications & Sales Mix - YTD 19-20 Sachet Pack Susceptor Film 72% Stand up Pouch Packaging Can Lamination Easy Peeling Lids Customers Aroma Pack Spounted Pack Ready 2 Eat Pack PV Backsheets Electrical Grade 28% Electronic Grade Industrial Window Films Optical Grade Customers Liner Grade Co
Slide 25: Strong R&D Capability
Strong R&D Capability A separate R&D department 18 + dedicated personnel Focus on providing innovative registered with the having significant experience solutions to customers. Department of Scientific and in chemicals, coatings, resin, Collaborative Research with Industrial Research (DSIR), custome
Slide 26: VA Stability
VA Stability Stable VA despite crude price volatility PCL VA v/s China VA v/s Crude 2.00 75 75 80 67 69 69 1.71 61 63 62 63 54 52 60 1.43 49 50 $/ Barrel 46 46 1.02 0.99 1.03 $/Kg 1.14 0.93 0.98 0.93 0.98 0.85 0.90 0.91 0.82 0.84 0.84 40 0.86 0.73 0.72 0.68 0.72 0.56 0.6 0.61 0.49 0.54 0.5 0.57 0.38
Slide 27: Polyplex & Sustainability
Polyplex & Sustainability Minimize product impact through optimized product design: Portfolio • Down-gauging 8-10μ • RPET with up to 90% PCR content Target Product: • BioPET - Bio content 30% • Co-create design using principles of circular economy • Biodegradable film • Mono material (Low SIT heat s
Slide 28: Industry Outlook
Industry Outlook OUTLOOK • Approx.0.9 Million Tons of Capacity to be added in Thin PET from 2020 to 2022 globally • Changing cost dynamics may result in closure/underutilization of older lines • Constantly upgrading technology (10.6 mtr wide line) to remain a long term threat to industry players for
Slide 29: Growth Plans
Growth Plans Capital Cost Projects Location Likely Start Up (In USD million) PET Film Plant & Metallizer - Started in Nov’19 GreenField - BOPET Indonesia 81 Resin Plant to start by Q4 FY 19-20 BrownField - BOPP Indonesia 48 H1 FY 21-22 India 10 Upto Q1 FY 20-21 Other Projects Overseas 23 Upto Q1 FY
Slide 30: Annexures
Annexures Contents • Shareholding Pattern • Group Structure !29
Slide 31: 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 31st Dec’19)
Slide 32: Group Structure
Group Structure Polyplex Corporation Limited 100% 17.19% Public/Institutional Shareholder (PCL/Polyplex India) INDIA 49% Polyplex (Asia) Pte. Ltd Polyplex (Thailand) Public Co. Ltd. 33.81% (PAPL/Polyplex Asia) (PTL/Polyplex Thailand) SINGAPORE THAILAND 100% 66.50% 100% 100% 100% PAR LLC EcoBlue Ltd
Slide 33: 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 !32