“Pioneers of laminated tubes in India”€¦ · “Pioneers of laminated tubes in India ... Certain statements in this presentation concerning our future growth prospects are

www.esselpropack.comM170617 www.esselpropack.com

“Pioneers of laminated tubes in India”

Corporate Presentation

www.esselpropack.com

Safe Harbour

Certain statements in this presentation concerning our future growth prospects areforward-looking statements. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties that could cause actual results todiffer materially from those in such forward-looking statements. The risks anduncertainties relating to these statements include, but are not limited to, risks anduncertainties regarding fluctuations in earnings, our ability to manage growth, intensecompetition in packaging industry including those factors which may affect our costadvantage, 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 demandfor packaging products in our key focus areas, our ability to successfully complete andintegrate potential acquisitions, liability for damages on our service contracts, thesuccess 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 ourintellectual property and general economic conditions affecting our industry. Thecompany does not undertake to update any forward-looking statements that may bemade from time to time by or on behalf of the company.

2


Table of Content

Company Overview

Financials

Strategy

Looking Ahead

3


Company Overview

> Leading global specialty packaging company FY17 turnover of USD 368

Million, manufacturing over 6 billion laminated plastic tubes catering to

FMCG and Pharma space

> Market leader in Oral Care Tubes with 36% global market share.

> Employs over 3046 people from 25 different nationalities at 19 state-of-

the-art facilities in eleven countries across all continents with a marquee

customer base. 27 Employees are drawing remuneration more than USD

100,000

> Listed on the NSE and the BSE in India since 35 years current Market

Capitalization of USD 576 Million

4


Product Range

5

Revenue Contribution

Laminated Tubes – 90% Plastic Tubes – 10%

Caps & Closure and Tube Laminates - Captive

Consumption

Caps & ClosuresPlastic Tubes Tube LaminatesLaminated Tubes


Manufacturing Process Laminated Tubes

6

Polymers

Multilayer Films

ExtrusionLamination

Laminates

Slitting

Decoration

Tubing

Shouldering

Capping

Final Tube


Manufacturing Process Plastic Tubes

7

Shouldering

Decoration

Capping

Final Tube

Polymers

Mono/ Multi Layer Sleeves

Cutting


Categories Serviced

8

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


Innovation Thrust

9

Green Maple Leaf–C2

100% recyclable tube

‘Clarion’

very high clear UV protected tube

‘Aeir’

Light weight tube

‘Velvetie’

Soft Touch & Feel tube

> A state of art C&I rolls out continuous innovations in Tube structure, Look & Feel, Decoration, Security features, Dispensers

> Products on Resource reduction, Sustainability, Recyclability platforms

> Capability for advanced features

> Over 140 patent applications globally ( Granted already 28)

‘Prizm’

Holographic printed tube


Our CustomersGlobal

RegionalPharma FMCG

10


Global Footprint

11 countries

11

19 Factories 3046 Employees

Germany

UK

Mexico

USA

Poland

India (8)Colombia

Philippines

Indonesia

Russia

China (5)

Egypt

Russia

1993

1982

1997

1999

2000

2000

2000

2000

2003

2004

2004

2007

Laminated Tubes

Plastic Tubes

Growth thru a mix of pioneering greenfield and synergistic acquisitions


Germany

UK

Mexico

USA

Poland

IndiaColombia

Philippines

Indonesia

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

12


Region wise Revenue & EBIT Break-up

13

40%

22%

20%

18%

Revenue Break up %

AMESA

EAP

AMERICAS

EUROPE

45%

27%

19%

9%

EBIT Break up %

AMESA

EAP

AMERICAS

EUROPE


Core Strengths

14

> Scale

> Global Presence

> Strong creativity and innovation base

> Acknowledged technology leader

> Fully integrated manufacturer

> Marquee customer base


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

15


Organization Structure

16

> Five member Board of which 3 are IndependentDirectors

> 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

Finance HR

IT C & I

EuropeAmericasEAPAMESA

Supply Chain Technology

Quality

Legal


Share holding Pattern

As on 31st March 2017

17

57.07

14.35

4.90

23.68

Share Holding Pattern* (%)

Promoters FII DII Non Institutions


Table of Content

18

Company Overview

Financials

Strategy

Looking Ahead


Performance Overview - Global

Revenue & EBIDTA Revenue and PAT (Index 2012)

> Revenue (net of excise) 5Y CAGR 11.00% thru global customer engagement and innovations

> Significant 5Y PAT CAGR 28.52% thru asset productivity and reduction in interest cost.

> Strong EBIDTA

For Continuing Business

19

All figures converted at March 17 closing USD/ INR

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

211247

291319 320

355

37

44

51

58

6365

811

16

21

25 29

0

20

40

60

80

0

150

300

450

Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

Revenue EBIDTA PAT

US

D M

n

100117

138152 152

168100

134

186

246

303

351

0

200

400


Revenue (Mar-12 Index 100)

PAT (Mar-12 Index 100)

Ind

ex


Regionwise 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

20


38% 37% 37% 38% 40% 40%

25% 24% 25% 24% 24% 23%

25% 24% 23% 22% 21% 20%

12% 14% 15% 16% 15% 18%

0%

30%

60%

90%

120%


AMESA EAP Americas Europe

57% 55% 52% 47% 44% 45%

50%46%

37%

27% 29% 28%

10% 15%

15%

19% 20% 19%

-18% -16%-4%

7% 7% 9%

-40%

10%

60%

110%

160%


AMESA EAP Americas Europe




Region-wise Revenue & EBIT TrendAMESA EAP

Americas Europe

US

D M

n

US

D M

nU

SD

Mn

US

D M

n

21


87 101 114 130 140 151

12 15

18 19 20 20

0

15

30

0

60

120

180


Revenue EBIT

57 66 70 74 73 74

2

4 5

7

9 8

-2

2

6

10

0

30

60

90


Revenue EBIT

27 37 48 55 54 67

(4)(4)

(1)

3 3 4

-10

-6

-2

2

6

0

20

40

60

80


Revenue EBIT

57 65 77 82 84 85

11

13 12

11

13 12

0

5

10

15

0

30

60

90


Revenue EBIT




Operating Cash Flow Trend

> Increasing Cash Flows

22



30 26 30 48 56 57

37

44

51

58

6365

0

30

60

90

0

20

40

60


Operating Cashflow EBIDTA

US

D M

nU

SD

Mn


EPS, DPS and Payout ratio

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

23

19.3%

17.0%

21.3% 21.4%

24.5% 23.8%

0.7 0.8 1.3

1.6

2.2 2.4

3.3

5.2

6.9

9.0

10.5

12.1

0

1

2

3

4

5

6

7

8

9

10

11

12

13

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


Payout Ratio DPS (Rs) EPS (Rs)



Market Cap, Price and P/E

24

68 75140 302 390 576

27.9 30.857.8

124.7

161.1

237.7 8.5

6.0

8.4

13.9

15.4

19.6

0

5

10

15

20

25

0

100

200

300

400

500

600

700


Market Cap (USD Mn) Market Price (Rs) P/E (TTM)

US

D M

nU

SD

Mn

US

D M

nU

SD

Mn

US

D M

nU

SD

Mn

US

D M

nU

SD

Mn




Profitability Ratios

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

statement

> Strong improvement in Return on

Equity (ROE) and Capital Employed

(ROCE), creating value for

stakeholders

> EPS 5Y CAGR 30.0%.

ROE, ROCE, EPS

25

3.3 5.2 6.9 9.0 11.6 12.1

10%

12%

14%

16%

18%

18%

6%

9%

13%

19%20%

19%

1

2

3

4

5

6

7

8

9

10

11

12

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%


EPS ROCE ROE




Debt

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

statement

> Debt Equity Ratio and Interest

Cover improved significantly

26

US

D M

n

Net Debt, Interest Cover, Debt/Equity

20 21 2120

15

17

2.0

2.3

3.0

3.5

5.0 5.4

1.9 1.7

1.5 1.2

0.7 0.8

0

1

2

3

4

5

6

0

5

10

15

20

25


Net Debt Interest Cover Debt/ Equity




Working Capital

> Inventory Reduction – a key focus

27



5051

5351 52 52

38

32 32

29

26

31

0

10

20

30

40

50

60


Debtor Days Inventory Days

No

. o

f D

ays


Table of Content

28

Company Overview

Financials

Strategy

Looking Ahead


Global Market Opportunities tripled

29

> High value Cosmetic/ Pharma

categories opened up with our new

generation laminated tubes which

offer superior value proposition v/s

plastic and aluminium tubes


Strategy

> Grow in Americas and Europe by replacing plastic tubes with specialized

laminated tubes in the Cosmetic and Beauty care category

> Grow in India and China by replacing aluminum tubes with laminated tubes

in the Pharma and Healthcare category

> Continue to lead market growth in emerging economies leveraging the

FMCG sector expansion

> Deploy cutting edge Innovation across markets to deliver superior Value

add products

> Drive asset productivity through technology

> Sustain/ improve the Debt Equity Ratio

30


Table of Content

31

Company Overview

Financials

Strategy

Looking Ahead


Looking Ahead

> Increase the share of Non Oral Care Revenue to 50% in next 2 years

> Revenue Growth @ 15% CAGR and PAT Growth @ 20% next 5 years

> Mission 20:20:20

> Improvement in Asset Turnover through Value growth resulting in

improved EBIDTA margin, RoCE and RoE @ 20%.

32


Thank You

Documents

“Pioneers of laminated tubes in India”€¦ · “Pioneers of laminated tubes in India ... Certain statements in this presentation concerning our future growth prospects are