Corporate Presentation www.esselpropack.com M180618 - - PowerPoint PPT Presentation

www.esselpropack.com M180618 www.esselpropack.com

Corporate Presentation

www.esselpropack.com

Safe Harbour

Certain statements in this presentation concerning our future growth prospects are forward-looking statements. The Company cautions that, by their nature, forward- looking statements involve risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in packaging industry including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, industry segment concentration, our ability to manage our operations, reduced demand for packaging products in our key focus areas, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Essel Propack has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.

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Table of Content

Company Overview Corporate Structure & Business Organisation Strategy Evolution Financials

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Company Overview

> Leading global specialty packaging company - FY18 Turnover of USD 375 Million, manufacturing circa 8 billion laminated tubes catering to renowned FMCG/Pharma brands across categories of Beauty & Cosmetics, Pharma & Health, Food, Oral Care & Home Care. > One of the only two global players in the tube space, and the world’s largest manufacturer of laminated tubes. > Market leader in Oral care tubes with global volume share of 36% > Growing in the Non- oral care tubes and driving market transition from the current extruded plastic & aluminum tube formats to the new generation laminated tubes > R&D and Technology driving innovations in products and processes

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All figures converted at March 18 closing USD/ INR rate @ 65.1750

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Company Overview

> Employs over 3172 people from 25 different nationalities at 19 state-of- the-art facilities in eleven countries across all continents > Marquee customer base of global, regional and local niche brands. > Backward integrated manufacturer – from blown film to tubes > Listed on the NSE and the BSE in India for 35 years since inception - Market Capitalization USD 580 Million at March 31, 2018

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All figures converted at March 18 closing USD/ INR rate @ 65.1750

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Categories Serviced

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Beauty & Cosmetics

Beauty Creams Face Creams Body Lotion Face Scrub Skin Creams Lip Balms Dilapilatories Hair Conditioners Shampoos Hair Colorants

Pharma & Health

Ophthalmic OTC Gel/ Ointments Prescription Drugs

Food

Cheese Jam Mayonnaise Wasabi Condensed Milk

Home

Adhesives Paints Crayons Shoe Polish

Oral Care

Toothpaste Therapeutic/ Cosmetic Dental Products Dental Fixtures

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Fully Integrated Manufacturing Process

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Polymers Multilayer Films Extrusion Lamination Laminates Slitting Decoration Tubing Shouldering Capping Final Tube

Laminated Tubes

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Shouldering Decoration Capping Final Tube Polymers Mono/ Multi Layer Sleeves Cutting

Plastic Tubes

Fully Integrated Manufacturing Process

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Product Range

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Revenue Contribution FY18

Laminated Tubes – 91% Plastic Tubes – 9% Caps & Closure and Tube Laminates - mostly for Captive Consumption

Caps & Closures Plastic Tubes Tube Laminates Laminated Tubes

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Innovation Thrust

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> A state of art C&I rolls out continuous product innovations in Barrier layers, Laminate structure, Look & Feel, Decoration, Security features, Dispensers with Focus on Product safety, Brand value enhancement, Resource reduction, Sustainability, Recyclability. > Partnering with Strategic suppliers of Raw material for improved functionality and efficacy > Partnering with equipment suppliers to develop new technology platforms, enhanced productivity, advanced product features etc > Over 142 patent applications globally (granted already 38) ‘Etain’ Efficient Recycling & consequent reduced carbon foot print ‘Velvetie’ Soft Touch & Feel tube ‘Prizm’ Holographic printed tube ‘EGNITE’ High Metallic sheen ‘Green Maple Leaf–C2’ 100% recyclable tube ‘Clarion’ very high clear UV protected tube

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Global Market Opportunities expand

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• High value Cosmetic/ Pharma and others

categories opened up with our new generation laminated tubes which offer superior value proposition v/s plastic and aluminium tubes and bottles

• Market opportunity therefore triples in

volume and quadruples in value terms

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Global Footprint

11 Countries

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19 Factories 3172 Employees

Germany UK Mexico USA Poland India (6) Colombia Philippines Indonesia Russia China (5) Egypt Russia

1993 1982 1997 1999 2000 2000 2000 2000 2003 2004 2004 2007

Laminated Tubes Plastic Tubes Greenfield Acquisition

Growth thru a mix of pioneering greenfield and synergistic acquisitions Operates thru WOS in all Countries except Egypt (75%) & Indonesia 30% - Associate

Laminates Caps

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Our Customers

Global Regional

Pharma FMCG

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Shareholding Pattern

As on 31st March 2018

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57% 15% 5% 23%

Promoters FII DII Non Institution

Large institutional shareholder base comprising ~20%

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Table of Content

Company Overview Corporate Structure & Business Organisation Strategy Evolution Financials

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Mission & Core Values

> To be the Global Supplier of Choice by providing value added, innovative & sustainable packaging solutions to a range of market sectors with customer service second to none > To be a workplace where Passion, Empowerment and Creativity is nurtured by shared values, internal systems & processes > To exhibit responsible behavior & create value for all our stakeholders

Mission Core Values

Innovation

Commitment to Excellence Leadership & Achievement Customer Care Integrity Safety

Mutual Trust, Respect & Team work

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Germany UK Mexico USA Poland India Colombia Philippines Russia China Egypt Russia Laminated Tubes Plastic Tubes

Americas (USA, Columbia, Mexico) Europe (UK, Germany, Poland, Russia) Africa, Middle East & South Asia ‘AMESA’ (India, Egypt) East Asia Pacific ‘EAP’ (China, Philippines)

Business Segments

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Region wise Revenue & EBIT Break-up

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FY 18

46% 30% 20% 4%

EBIT Break up %

AMESA EAP AMERICAS EUROPE 37% 23% 19% 21%

Revenue (Net of Excise) Break up %

AMESA EAP AMERICAS EUROPE

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Organization Structure

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> Five member Board of which 3 are Independent Directors > Professional Management team > Advanced IT systems > Strong Processes

Board of Directors Chairman & Managing Director Global Functional Heads COO Regional Vice Presidents Regional/ Unit Teams Global Functional Heads

CFO HR CIO C & I (Proj) Europe Americas EAP AMESA

Supply Chain Technology Quality

Legal C & I

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Table of Content

Company Overview Corporate Structure & Business Organisation Strategy Evolution Financials

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Strategy over years

›

Pioneer laminated tubes for toothpaste in India, to become Market leader

›

“Go and Grow with Customers” , to become a Global leader for toothpaste tubes with multi- country operations

›

And now,

›

Pioneer new generation laminated tubes in place of extruded plastic/ aluminum tubes and bottles for non oral care categories, leveraging R&D

›

Deploy Technology to drive up Productivity, Quality and Customer experience so as to create sustained competitive advantage

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Actively Promote Sustainability in the Tube space

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Table of Content

Company Overview Corporate Structure & Business Organisation Strategy Evolution Financials

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Performance Overview - Global

Revenue & EBIDTA Revenue and PAT (Index 2012)

• Revenue 6Y CAGR 10.0% - ASP deflation in FY16 due to RM price pass thru globally, depresses top

line beginning FY16, no impact for profit

• Significant 6Y PAT CAGR 21.2%
• Strong EBIDTA FY18 - 19.5% (Margin expansion - 1.8 pp between FY18 and FY12)

Revenue figures are net of excise duty For Continuing Business

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All figures converted at March 18 closing USD/ INR rate @ 65.1750 March 2016, March 2017 and March 2018 on IND AS basis earlier years on IGAAP basis

210 246 289 318 319 353 372 37 43 51 58 62 65 73 8 11 15 20 25 29 26 20 40 60 80 150 300 450 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Revenue EBIDTA PAT

USD Mn

100 117 138 152 152 168 177 100 134 186 246 303 351 316 200 400 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Revenue (Mar-12 Index 100) PAT (Mar-12 Index 100)

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Region-wise Performance Overview

Revenue Share by Geography EBIT Share by Geography

> Europe continue to expand > Latin America expansion and new contracts drive Americas business > EAP and AMESA sustained contributors to Revenue and EBIT

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Revenue figures are net of excise duty For Continuing Business All figures converted at March 18 closing USD/ INR rate @ 65.1750 March 2016, March 2017 and March 2018 on IND AS basis earlier years on IGAAP basis

37% 36% 35% 37% 38% 38% 37% 26% 25% 25% 25% 25% 23% 23% 26% 25% 23% 22% 21% 20% 20% 12% 14% 16% 17% 16% 18% 21% 0% 30% 60% 90% 120% Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 AMESA EAP Americas Europe 57% 55% 52% 47% 44% 45% 46% 50% 46% 37% 27% 29% 28% 30% 10% 15% 15% 19% 20% 19% 20%

• 18%
• 16%
• 4%

7% 7% 9% 4%

• 40%

10% 60% 110% 160% Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 AMESA EAP Americas Europe

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Region-wise Revenue & EBIT Trend

AMESA EAP Americas Europe

USD Mn USD Mn USD Mn USD Mn

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Revenue figures are net of excise duty For Continuing Business All figures converted at March 18 closing USD/ INR rate @ 65.1750 March 2016, March 2017 and March 2018 on IND AS basis earlier years on IGAAP basis

81 94 106 121 128 137 140 12 15 18 19 20 20 22 15 30 60 120 180 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Revenue EBIT 57 65 76 82 84 85 88 11 12 12 11 13 12 14

• 2

2 6 10 14 18 30 60 90 120 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Revenue EBIT 57 65 70 73 72 74 75 2 4 5 7 9 8 9

• 2

2 6 10 30 60 90 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Revenue EBIT 27 37 48 55 53 67 78 (1) 3 3 4 2

• 2

2 6 30 60 90 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Revenue EBIT

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Profitability Ratios

At average USD/INR exchange rate for the year Profit from operating activities as per cash flow statement

> Strong improvement in Return on Equity (ROE) and Capital Employed (ROCE), creating value for stakeholders > EPS 6Y CAGR 22.3%. ROE, ROCE, EPS

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March 2016, March 2017 and March 2018 on IND AS basis earlier years on IGAAP basis

3.3 5.2 6.9 9.0 11.6 12.1 10.9 10% 12% 14% 16% 18% 18% 17% 6% 9% 13% 19% 20% 19% 15% 1 2 3 4 5 6 7 8 9 10 11 12 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 EPS ROCE ROE (INR)

EPS (INR)

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Operating Cash Flow Trend

> Stable and improving cash

flows

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All figures converted at March 18 closing USD/ INR rate @ 65.1750 March 2016, March 2017 and March 2018 on IND AS basis earlier years on IGAAP basis

6 7 12 15 25 21 31 30 26 29 48 55 57 53 10 20 30 40 50 60 70 80 90 100 110 120 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Free Cash Flow Operating Cashflow

USD Mn

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Debt

> Debt Equity Ratio and Interest Cover healthy & improving. > AA rated for long term debt. > A1+ RATED (Top rating) for short term debt. > Active in Commercial Paper & Listed privately placed NCD’s. > Effective interest cost reduced by 4.4 pp to 5.8 % in this period

28 USD Mn

Net Debt, Interest Cover, Debt/Equity

All figures converted at March 18 closing USD/ INR rate @ 65.1750 March 2016, March 2017 and March 2018 on IND AS basis earlier years on IGAAP basis

130 133 135 130 99 107 85 1.9 2.4 3.0 3.5 5.1 5.6 5.7 1.8 1.7 1.5 1.3 0.8 0.8 0.6 1 2 3 4 5 6 7 25 50 75 100 125 150 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Net Debt Interest Cover Debt/ Equity

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EPS, DPS and Payout ratio

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March 2016, March 17 and March 2018 on IND AS basis earlier years on IGAAP basis

19.3% 17.0% 21.3% 21.4% 24.5% 23.8% 26.4% 3.3 5.2 6.9 9.0 10.5 12.1 10.9 0.7 0.8 1.3 1.6 2.2 2.4 2.4

• 2.0

4.0 6.0 8.0 10.0 12.0 14.0 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Payout Ratio EPS (Rs) DPS (Rs)

Payout Ratio DPS / EPS - (Rs)

> Payout Target 20-25% of the global profits subject to local regulations

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Market Cap, Price and P/E

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All figures as at 31st March of respective financial year All figures converted at March 18 closing USD/ INR rate @ 65.1750 March 2016, March 17 and March 2018 on IND AS basis earlier years on IGAAP basis

67 74 139 301 388 573 580 28 31 58 125 161 238 240 8.5 6.0 8.4 13.9 15.4 19.6 22.0

5 10 15 20 25 100 200 300 400 500 600 700 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Market Cap (USD Mn) Market Price (Rs) P/E (TTM)

Market Cap / Market Price P/E (TTM)

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Looking Ahead

> Increase the share of Non Oral Care Revenue to 50% > Revenue Growth @ 15% CAGR and PAT Growth @ 20% next 5 years > Improvement in Asset Turnover through Value growth resulting in improved EBIDTA margin, RoCE and RoE @ 20%. (MISSION 20:20:20)

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Thank You