Pioneers of laminated tubes in India. Corporate Presentation

Transcription

1 Pioneers of laminated tubes in India Corporate Presentation M17617

2 Safe Harbour Certain statements in this presentation concerning our future growth prospects are forward-looking statements. The Company cautions that, by their nature, forwardlooking 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 madefromtimetotimebyoronbehalfofthecompany. 2

3 Table of Content Company Overview Financials Strategy Looking Ahead 3

4 Company Overview > Leading globalspecialty packaging company FY17 turnover of USD 368 Million, manufacturing over 6 billion laminated plastic tubes catering to FMCG and Pharma space > Market leader inoral Care Tubes with 36%global market share. > Employs over 346 people from 25 different nationalities at 19 state-ofthe-art facilities ineleven countries across all continents with a marquee customer base. 27 Employees are drawing remuneration more thanusd 1, > Listed on the NSE and the BSE in India since 35 years current Market Capitalization of USD 576 Million 4

5 Product Range Laminated Tubes Plastic Tubes Tube Laminates Revenue Contribution Caps & Closures Laminated Tubes 9% Plastic Tubes 1% Caps & Closure and Tube Laminates -Captive Consumption 5

6 Manufacturing Process Laminated Tubes Multilayer Films Laminates Polymers Extrusion Lamination Slitting Tubing Capping Decoration Shouldering Final Tube 6

7 Manufacturing Process Plastic Tubes Mono/ Multi Layer Sleeves Polymers Cutting Decoration Final Tube Shouldering Capping 7

8 Categories Serviced Beauty & Cosmetics Beauty Creams Face Creams Body Lotion Face Scrub Skin Creams Lip Balms Dilapilatories 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 Hair Conditioners Shampoos Hair Colorants 8

9 Innovation Thrust Green Maple Leaf C2 1% recyclable tube Clarion very high clear UV protected tube Aeir Light weight tube Velvetie Soft Touch & Feel tube Prizm Holographic printed 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 14 patent applications globally ( Granted already 28) 9

10 Our Customers Global Pharma Regional FMCG 1

11 Global Footprint 11 countries 19 Factories 346 Employees UK 27 Poland Russia USA Germany 1997 Russia Mexico 1999 China (5) Laminated Tubes Plastic Tubes 2 Colombia 2 Egypt 1993 India (8) 1982 Indonesia 2 Philippines 2 Growth thru a mix of pioneering greenfield and synergistic acquisitions 11

12 Business Segments Americas (USA, Columbia, Mexico) Europe (UK, Germany, Poland, Russia) Africa, Middle East & South Asia AMESA (India, Egypt) East Asia Pacific EAP (China, Philippines) UK Poland Russia USA Germany Russia Mexico China Laminated Tubes Plastic Tubes Colombia Egypt India Philippines Indonesia 12

13 Region wise Revenue & EBIT Break-up Revenue Break up % 18% 4% 2% 22% AMESA EAP AMERICAS EUROPE EBIT Break up % 19% 27% 9% 45% AMESA EAP AMERICAS EUROPE 13

14 Core Strengths > Scale > Global Presence > Strong creativity and innovation base > Acknowledged technology leader > Fully integrated manufacturer > Marquee customer base 14

15 Mission & Core Values Mission Core Values > TobetheGlobalSupplierofChoiceby providing value added, innovative & Innovation 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 Commitment to Excellence Mutual Trust, Respect & Team work Customer Care Leadership & Achievement Integrity Safety 15

16 Organization Structure Board of Directors Chairman & Managing Director Finance HR Global Functional Heads COO Legal IT C & I Regional Vice Presidents Global Functional Heads Supply Chain Technology AMESA EAP Americas Europe Regional/ Unit Teams Quality > Five member Board of which 3 are Independent Directors > Professional Management team > Advanced IT systems > Strong Processes 16

17 Share holding Pattern As on 31 st March Share Holding Pattern* (%) Promoters FII DII Non Institutions 17

18 Table of Content Company Overview Financials Strategy Looking Ahead 18

19 Performance Overview -Global Revenue & EBIDTA Revenue and PAT (Index 212) USD Mn Revenue EBIDTA PAT Index 4 2 Revenue (Mar-12 Index 1) PAT (Mar-12 Index 1) Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 > Revenue(net of excise) 5Y CAGR 11.% thru global customer engagement and innovations > Significant 5Y PAT CAGR 28.52% thru asset productivity and reduction in interest cost. > Strong EBIDTA All figures converted at March 17 closing USD/ INR March 216 and March 217 on IND AS basis earlier years on IGAAP basis For Continuing Business 19

20 RegionwisePerformance Overview Revenue Share by Geography EBIT Share by Geography 12% AMESA EAP Americas Europe 16% AMESA EAP Americas Europe 9% 6% 12% 14% 15% 16% 15% 18% 25% 24% 23% 22% 21% 2% 11% 6% 1% 5% 15% 46% 15% 37% 7% 7% 9% 19% 2% 19% 27% 29% 28% 25% 24% 25% 24% 24% 23% 57% 55% 52% 47% 44% 45% 3% 1% 38% 37% 37% 38% 4% 4% -18% -16% -4% % Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 > Europe continue to expand -4% Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 > Latin America expansion and new contracts drive Americas business > EAP and AMESA sustained contributors to Revenue and EBIT All figures converted at March 17 closing USD/ INR March 216 and March 217 on IND AS basis earlier years on IGAAP basis For Continuing Business 2

21 Region-wise Revenue & EBIT Trend AMESA EAP USD Mn USD Mn Revenue EBIT Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Americas Revenue EBIT USD Mn USD Mn Revenue EBIT Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Europe Revenue EBIT (1) (4) (4) Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 All figures converted at March 17 closing USD/ INR March 216 and March 217 on IND AS basis earlier years on IGAAP basis Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17-1 For Continuing Business 21

22 Operating Cash Flow Trend Operating Cashflow EBIDTA 6 9 > Increasing Cash Flows USD Mn Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 All figures converted at March 17 closing USD/ INR March 216 and March 217 on IND AS basis earlier years on IGAAP basis 22

23 EPS, DPS and Payout ratio 3.% 25.% 2.% 15.% 1.% 5.% Payout Ratio DPS (Rs) EPS (Rs) % 23.8% 21.3% 21.4% % % > Payout Target 2-25% of the global profits subject to local regulations.% Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 March 216 and March 217 on IND AS basis earlier years on IGAAP basis 23

24 Market Cap, Price and P/E Market Cap (USD Mn) Market Price (Rs) P/E (TTM) USD Mn Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 5 March 216 and March 217 on IND AS basis earlier years on IGAAP basis March 216 and March 217 on IND AS basis earlier years on IGAAP basis 24

25 Profitability Ratios ROE, ROCE, EPS EPS ROCE ROE > Strong improvement in Return on 22% 2% 18% 16% 14% 12% 1% 1% 12% 14% 13% 19% 16% 2% 18% 19% 18% Equity (ROE) and Capital Employed (ROCE), creating value for stakeholders > EPS 5Y CAGR 3.%. 8% 9% 5 6% 4% 6% 4 3 2% % Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar At average USD/INR exchange rate for the year Profit from operating activities as per cash flow statement All figures converted at March 17 closing USD/ INR March 216 and March 217 on IND AS basis earlier years on IGAAP basis 25

26 Debt Net Debt, Interest Cover, Debt/Equity Net Debt Interest Cover Debt/ Equity > Debt Equity Ratio and Interest Cover improved significantly USD Mn Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 1 At average USD/INR exchange rate for the year Profit from operating activities as per cash flow statement All figures converted at March 17 closing USD/ INR March 216 and March 217 on IND AS basis earlier years on IGAAP basis 26

27 Working Capital Debtor Days Inventory Days > Inventory Reduction a key focus 4 38 No. of Days Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 All figures converted at March 17 closing USD/ INR March 216 and March 217 on IND AS basis earlier years on IGAAP basis 27

28 Table of Content Company Overview Financials Strategy Looking Ahead 28

29 Global Market Opportunities tripled > High value Cosmetic/ Pharma categories opened up with our new generation laminated tubes which offer superior value proposition v/s plastic and aluminium tubes 29

30 Strategy > Grow in Americasand Europeby 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 3

31 Table of Content Company Overview Financials Strategy Looking Ahead 31

32 Looking Ahead > Increase the share of Non Oral Care Revenue to 5% in next 2 years > Revenue 15% CAGR and PAT 2% next 5 years > Mission 2:2:2 > Improvement in Asset Turnover through Value growth resulting in improved EBIDTA margin, RoCEand RoE@ 2%. 32

33 Thank You