Cosmo First Limited — Investor Presentation 2020

Nov 11, 2020

CFL/SEC/SE/PS/2020-21/NOV/06 November 11,2020

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S B b ck E ch L i i d t t o m a o a n g e m e y x	S N i l ck E h f I nd i L d t t t a o na o xc a n g e o a
P h i J j b h T ro ze e e e e o y ow e rs ,	E h P l xc a n g e a za ,
D la l S tr t a e e ,	C / ,G P l l B l k t o n o o c ,
M b i- 4 0 0 0 0 1 m a u	C B d K rl l a n ra a o m p e u x -
S C ri d : 5 0 8 8 1 4 c p o e	M b i- 4 0 0 0 5 1 m a u
	S ri I D " C O S M O F I L M S " t e c u y :

Sub: Investor Presentation

Dear Sir,

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please find attached Investor Presentation on Operational and Financial Performance of the Company for the Quarter ended on September 30, 2020.

The Investor Presentation is also being hosted on the website of the Company viz http://www.cosmofilms.com/ "5

You are requested to take the same on your records.

Thanking You

Yours faithfully For Cosmo Films Limited

Jyoti^dt Com(5^y Secretary & Compliance Officer

End: As Above

Investors Presentation

Speciality Films for Sustainable Packaging

Flexible Packaging I Lamination I Labeling I Synthetic Paper

Nov 2020

Company Overview

India Industry – Key Dynamics and Capex Strategy

Key Focus Areas - R&D, Sustainability and Specialty Company

Financials

1

Corporate Governance & Management

Why Invest in Cosmo Films?

Corporate Social Responsibility

Company Overview

Strong History & Leading Position

• Established in 1981, Cosmo Films Ltd.is the pioneer of BOPP Films Industry in India.
• Promoted by Mr. Ashok Jaipuria, the company is also the largest BOPP film exporter from India.

Global Leader in Thermal Lam Films Unique Proposition

With the acquisition of GBC Commercial Print in June 2009, Cosmo is now the world's largest producer of thermal lamination films.

Production Facilities

Units in India, Korea, & USA with annual installed capacity as follows: BOPP Films: 196K MT Thermal Films: 40K MT Coated Specialty Films:20K MT Metalized Films:22K MT CPP Films: 10K MT Masterbatch: 10k MT

Corporate Governance & Professional Management

Strong Independent board High on Corporate Governance Professional Management

Strong Export Footprints

Leading BOPP Films exporter from India with export to more than 100 countries .

Strong R&D Focus

Collective R&D experience of over 100 years.

Recently received one patent for Release BOPP Film and applied for a new patent for High Barrier CPP Film. This in addition to 6 patents in India and 3 in US.

• Uniquely positioned with good mix of specialty and commodity films.
• Widest product portfolio under one roof.
• Multiple lines allowing dedicated runs for speciality films.

Strong Financials

Continuous growth and profitability track record.

Certification, Awards & Recognition

ISO 9001:2000 ISO 14001:2004 British Retail Consortium (BRC) American Institute of Baking (AIB) CII Excellence Award for 5S Winner of several product innovation awards viz. PFFCA, Asia Star etc.

"To be the most preferred global brand offering value added oriented films for packaging, labels, lamination and industrial applications."

Company Overview - Milestones

Company Overview - Milestones

Line

Coating line

Coating line

rd Metallizer

Line

Line-2

Coating Line

Line-1

Line-1

4 th Metallizer Line

Upgradation of

3

Line

US Plant

Coating line

Commercial

th BOPP Line

Metallizer Line

Plant

Line

8

Company Overview - BOPP EDGE

Company Overview - Product Portfolio

Disclosure: All these are trademarks of respective Owners

Manufacturing Footprint

	NUMBER OF LINES
TS N A L P		BOPP	Thermal	Coating	Metalizing	CPP
	Waluj, Aurangabad, India	5 Lines	2 Lines	3 Lines	1 Line	1 Line
	Karjan, Vadodara, India	3 Lines		1 Lines	2 Line	1 Line
	Shendra, Aurangabad, India	1 Line	5 Lines	2 Line	1 Line
	Asan, Korea		1 Line
	TOTAL INSTALLED CAPACITY	1,96,000 TPA	40,000 TPA	20,000 TPA	22,000 TPA	10,000 TPA

Waluj, India Shendra, India Karjan, India Asan, Korea

Company Overview - Customer Base

Key Customers

Disclosure: All these are trademarks of respective Owners

Some of the brands we service

Disclosure: All these are trademarks of respective Owners

11

India Industry Dynamics and Capex Strategy

Data Source: AMI/PCI/Other Independent Research and

Industry Sources

Key Focus Areas

Speciality and Product Mix

1

Skewing Product Mix more towards specialty products, with consequently better margins and removing cyclability impact.

R&D and Sustainability Focus

More & more green practices in manufacturing, more films enabling circular economy. Innovation led products.

Customer Centric

3

4

2

Creating Customer Centric Culture:- Robust Service Offer, New Offices Overseas, CRM, Establishing tripartite partnership between us, Converter and Brand Owners.

Capex Strategy and Capacity Expansion

Further Capacity expansion is planned mainly in Value Add segment and sustainability for next 2 years.

Diversification

Playing in strength areas, diversifying into special chemical manufacturing and B2C for specific products Pets Care vertical

Key Specialty Products launched during last few quarters

Research and Development – A Snapshot

Focus areas

• Identifying technical (product/applications) growth areas through customer activities, exhibitions, publications and technical interactions
• Support water based printing and complete replacement of solvent based coatings with water based coatings
• Increase the occupancy of value adds in the products baskets
• Reduce carbon footprints through down gauging in our products and reducing consumption of raw materials & fuel

• R&D labs with most sophisticated equipments, one in India & one in the US
• Some of the equipments
• Barrier Testing (OTR & MVTR)
• Differential Scanning Calorimeter (DSC)
• Thermo Gravimetric Analysis (TGA )
• Mass Spectrometer (MS)
• Optical Microscope
• Dynamic Mechanical Analyzer
• Perkin Elmer FTIR
• UV spot coating and screen printing
• Scanning Electron Microscope (SEM)
• ANSI Barcode scanner
• UV flexoproof 100

Achievements

• Recognition and certification by Department of Scientific & Industrial Research, Government of India
• Recently received one patent for Release BOPP Film
• Multiple patents with 6 in India and 3 in the US
• Multiple product development Awards such as Indiastar, IFCA STAR and PFFCA STAR awards
• First thermal lamination film to take extrusion coating without the primer

The R&D team has PHD's & Post Docs from renowned universities in the USA and Europe. Global experience in Packaging, Polymer Engineering, Biopolymers and Nanomaterials.

Recent R&D led infrastructure Investment

• Investment of 1M\$+ in new R&D centre in India
• New pilot line for customized product trials for film manufacturing, coating and lamination.
• Product Application Centre to validate print quality in-house
• Screen, UV Flexo, Direct Thermal and Thermal Transfer printers
• Recently installed a new highly automated 2.2 meter coating line; capable of both sides coating in a single pass

Sustainable Product Practices

Customer Centricity to become Global preferred Player

Sales Team

Strengthening Sales team: local resources in several countries, dedicated resource for engagement with global brands, etc.

Expansion

Expanding Customer base in Potential Segments and Geo-Markets

Engagement Improving End User Engagement

Customer Centric Culture

Creating Customer Centric Culture:- Robust Service Offer, CRM, Cross Functional Alignment

Brand Visibility

Creating brand visibility globally:- Digital marketing, Print Media advertising, Trade shows participation etc.

Solution Approach

Solution approach to Selling:- Establishing tripartite partnership between us, Converter and Brand Owners to find solutions for unmet needs

CRM- A 360 degree view for Customers

• Visibility to stage wise progress of order from order receipt to order dispatch
• Auto email alerts at every stage of order processing with the final email containing LR/BL documents
• Automated process of sending invoice, packing lists and shipment plan to customers along with an option for downloading the documents online
• Complete visibility to receivables and statement of account in simple clicks
• Easy to log complaint and track status
• Option of uploading supporting photographs for faster complaint resolution
• Customer Portal Available on cloud, can be accessible from anywhere on any device

Initiatives to improve Quality Culture

• Implemented Six Sigma System at the organizational level to improve quality culture.
• 15 people trained as six sigma green belts last year, completed 10 projects covering quality, cost reduction and process improvements.
• Second batch of six sigma underway, new projects initiated.
• Implementation of 5S at shop floor is underway to make Cosmo shop floors world class.
• Taken initiatives like double door system on each door, automating door closures etc.
• Green rating awarded by EcoVadis Sustainability Ratings

• Initiated lean manufacturing from our Karjan unit which shall be horizontally deployed at all three locations.

• Initiated small quality improvement projects with lower level cross functional teams to reduce customer quality complaints.

• Started shop floor technical training for sales & marketing team for better understanding of product applications and manufacturing processes.
• Got A grade rating from two of major customers during plant quality audit.
• Customer complaint weekly QA meeting has been started and has been adding value to the quality management system.
• Initiated sharing product success stories for publishing on social media.
• Developed online COA (Certificate of analysis) generation application in SAP for all three units to provide system generated COAs to customers.

Cameras are installed on BOPP, Coating and Extrusion Coating Lines to detect inline defects and then rectify them

Some Recent Achievements

FY 2019-20

• Ranked as 10th in the list of Fortune's Next 500 midsize companies
• Brand Excellence Awards for Effective Use of Marketing Communication & for Engineering, Research and Development Sector
• Recognized as one of the top 500 corporates by Dun & Bradstreet
• Received the Best Employer Award at the 14th Aurangabad Employer Branding Awards
• Received the Aurangabad Manufacturing Leadership Award by the World Quality Congress
• Business Transformation Awards for exemplary innovation and transformation

FY 2018-19

• Mr. Poddar received the "Young Business Leader Award" at the Dare to Dream Awards, presented by Zee Business in association with SAP
• Mr. Poddar bagged the "People's CEO Award" at NIPM National HR Excellence Award
• Received the"SAP ACE Award" by SAP INDUS
• Received the "SAP Hana Visionary Award" by SAP

COVID-19 Impact

• The Company continues to closely monitor the impact of the Covid-19 pandemic on all aspects of its business.
• As the Company is engaged in the business of flexible packaging films which is part of essential commodities, and therefore, the pandemic had marginal impact on the business operations of the Company.
• The management has exercised due care in concluding significant accounting judgments and estimates, inter-alia, recoverability of receivables, impairment assessment of financial and non-financial assets, realisability of Inventory and accordingly noted no significant impact on its financial results.
• Further, management believes that the Company will be able to discharge the liabilities as and when falling due.
• The Company will continue to monitor current and future conditions and impact thereof on Company's operations.

Pets Care Vertical

• The Company is going ahead with the pilot launch in NCR investing about 15-18 crores over next 18 months to ascertain the sanctity and viability of the Pets Care business to launch it at a larger scale.
• The overall investment is expected to remain marginal vis-à-vis size of existing business.
• Pets care business has been growing in India at 22% CAGR. With smaller families, rising income levels and limited social lives (especially post Covid), Pet adoption will increase many folds.
• The business scenario is highly fragmented and there is no organized players in India offering end to end comprehensive solution to the customers.
• Cosmo expects to fill up this void. Pets care is a low capex business while Brand Building will require some investments in the initial years.
• The Company believes the business will deliver high returns, high valuation and add significant value to shareholders
• The activities are on track for petcare including but not limited to IT infrastructure, brand strategy and resource building for providing best of customer's experience. We are expecting pilot launch in NCR by Q1 FY22.

INR Crores

	Audited	18 FY 17 -	Audited	18 19 FY -	Audited 19 20 FY -
Particulars	Standalone	Consolidated	Standalone	Consolidated	Standalone	Consolidated
Sales Net	1 749 ,	1 847 ,	2 050 ,	2 157 ,	2 032 ,	2 204 ,
EBIDTA	181	168	169	181	262	280
% EBIDTA	10%	9%	8%	8%	13%	13%
PBT	85	64	69	72	163	163
PAT	85	64	58	61	114	113
EPS	44	34	30	32	60	59
Book Value	332	323	363	355	389	387

• FY19-20 EBITDA is higher by 55% primarily due to higher specialty sales by 11%, better BOPP films margins (balanced demand and supply scenario), operational efficiency and better performance by subsidiaries.
• The Company shall continue to invest in R&D and grow its specialty film portfolio thereby improving margins.

25

						INR Crs
Particulars	Unaudited	Q2 FY 20-21	Unaudited	Q1 FY 20-21	Unaudited Q2 FY 19-20
	Standalone	Consolidated	Standalone	Consolidated	Standalone	Consolidated
Sales Net	514	560	456	481	514	556
EBIDTA	94	99	91	93	59	65
EBIDTA %	18%	18%	20%	19%	12%	12%
PBT	70	73	67	66	34	38
PAT	49	53	47	47	25	29
EPS*	85	82	72	69	45	51
Book Value	421	420	417	416	381	380

*EPS is calculated on the basis of trailing 12 months results

Key Highlights – Q2, FY20-21 Results

The Company's volume got normalized during Q2, FY21 which was impacted in Q1, FY21 temporarily due to Covid-19 pandemic impact.

The Company posted highest ever EBITDA of Rs.99 crores during Q2 FY21 on the back of higher speciality sales and improved operating margins from last year.

The Company has initiated commercial production from Masterbatch plant during Q2, FY21 which will pick volume during H2, FY21. The Company is set to grow specialty further as we are enabling some large production lines to manufacture specialty products from Q4, FY21. The specialized BOPET project and Petcare are progressing well in line with the plan.

Covid-19 pandemic had marginal impact during the quarter. The Company expects that Covid-19 impact may remain only marginal in the following quarters too barring unforeseen conditions.

Financials - Key Ratios

Particulars	Audited FY 17 18 -		Audited FY 18 19 -		Audited FY 19 20 -		Unaudited H1 FY 20 21 -
	Standalone	Consolidated	Standalone	Consolidated	Standalone	Consolidated	Standalone	Consolidated
ROE (%)	14%	11%	9%	9%	16%	16%	20%	20%
ROCE (%)*	10%	9%	8%	9%	15%	14%	19%	18%
(INR Crores) Net Worth	637	620	695	680	745	741	849	849
Crores) Net Debt (INR	617	681	588	643	537	584	506	485
Net Debt/Equity Ratio (times)	1 0	1 1	0 8	0 9	0 7	0 8	0 6	0 6
(times) Asset Turnover Ratio	2 2	2 4	2 0	2 1	2 3	2 1	2 1	2 2
(INR) Dividend share per	6 0		6 0		15 0		-
Net Debt/EBITDA (times)	3 4	4 1	5 3	5 3	2 1	2 2	5 1	1 4

* Excluding Treasury

Above ratios are on trailing 12 months basis

Corporate Governance - Board of Directors

Mr. Ashok Jaipuria Chairman & Managing Director

Our founder Chairman & Managing Director has more than 40 years of experience of the Corporate World. He is a Member of the Executive Committee of the FICCI, president of the Golf Foundation, a member of the

Board of Governors of IIT- Patna and among the Board of Directors of DPS, Gurgaon.

Mr. A. K. Jain Whole Time Director

Mr. Jain has over four decades of experience in Finance and Accounts and General Management functions in industrial enterprises in India. Mr. Jain is a Commerce Graduate from Meerut University and an AICWA from ICWAI and a Certified Information System Auditor from Information System Audit and Control Association, USA.

Mr. H. K. Agrawal Independent Director

Mr. Agrawal has over four decades of experience in the fields of Strategic Management, Organization Structure, Finance and Training. He is an independent Management Consultant. Mr. H.K. Agrawal is a Mechanical Engineer from University of Jodhpur and MBA from Indian Institute of Management, Ahmedabad.

Ms. Alpana Parida Independent Director

Ms. Alpana Parida has more than two decades of extensive experience in retail and marketing communication in the US and in India. Ms. Alpana Parida graduated from IIM-Ahmedabad in and has a degree in Economics from St. Stephens, Delhi University. Currently she is the President of DY Works, India's oldest and largest Branding Firm headquartered in Mumbai.

Corporate Governance - Board of Directors (Contd..)

Mr. Pratip Chaudhuri Non Executive Non Independent Director

Mr. Pratip Chaudhuri holds a BSc. (Hons) Degree from St. Stephen's College, Delhi University and MBA from University Business School, Chandigarh. He is a Certified Associate of Indian Institute of Bankers (CAIIB).

He retired as Chairman of State Bank of India, which is India's largest Bank. He is currently serving on the Board of several leading Companies.

Mr. H. N. Sinor Independent Director

Mr. H. N. Sinor has been a veteran banker, having spent over four decades in public as well as private sector banks like Union Bank of India, Central Bank of India and ICICI Bank. He was MD and CEO of

ICICI Bank and after ICICI's merger with ICICI Bank, became Joint MD until his superannuation. He is also associated with various charitable and other trusts engaged in social activities.

Independent Director

Mr. Wadhwa is an Ex- Member of the Indian Foreign Services. He holds a Masters Degree in History with specialization in Chinese History and Medieval Indian History and Architecture. He has served as Indian Ambassador to Poland, Lithuania, Sultanate of Oman, Thailand, Italy and San Marino. He has also served as a Permanent Representative of India to the Rome based UN Agencies—FAO,IFAD and WFP. He was Secretary (East) in the Ministry of External Affairs in New Delhi from 2014-2016 looking after South-East Asia, Australasia and Pacific, Gulf and West Asian regions. He was also the leader of the Senior officials to all meetings of ASEAN, ASEM, ACD, Arab League, Mekong- Ganga Cooperation, ARF and East Asia Summit.

Senior Management

Mr. Pankaj Poddar Chief Executive Officer

Mr. Pankaj Poddar's career spans over a period of more than two decades in finance, advisory, assurance and various leadership as well as management roles. Before joining Cosmo, Pankaj has worked with automotive & FMCG industries. His last stint was with Avon Beauty products as ―Director Finance. Pankaj has also worked as the India CFO for Delphi Automotive Systems, Regional Head Assurance Services for Reckitt Benckiser and Manager Advisory & Assurance Services in Ernst & Young. Pankaj is a B.Com (H) from SRCC, qualified Chartered Accountant and holds a diploma in management. Awarded Indian CEO of the Year – 2016 by Brand Summit India.

Mr. Neeraj Jain Chief Financial Officer

Mr. Neeraj Jain has over two decades of experience in finance, business planning, business strategy, taxation and risk management. Neeraj is with the Cosmo Films from March 2013 and has worked with Havells, Aditya Birla Management Corporation, and Bajaj Allianz on different leadership roles before joining Cosmo Films. He is a Bachelor of Commerce from Delhi University, a qualified Chartered Accountant and a Certified Information Systems Auditor (CISA) from ISACA, USA.

Mr. Sanjay Chincholikar Head- Operations (India Films Business)

Mr. Sanjay Chincholikar's career spans over three decades in the field of manufacturing, engineering, projects, quality control , application and business development , sales and marketing and various leadership as well as management roles. In his current role, he heads Operations of India Films Business and is responsible for Manufacturing, Engineering, Research & Development, Quality Assurance and Technical Services Function. Sanjay is a Mechanical Engineer as well as a B.COM graduate. He is a post graduate in Sales and Marketing and holds a Diploma in management, business & factory management. He is also a certified Energy Manager by Bureau of Energy Efficiency, Government of India.

Why Invest in Cosmo Films?

Strong R&D focus – - Ahead in Product Development Curve - Company will high R&D focus will have edge in changing scenario in flexible packaging

Uniquely positioned – Mix of Specialty and BOPP Films with % share moving towards Specialty

Strong Financials (Sept 2020) - ROE 20% - ROCE 18% - Net Debt/EBITDA 1.4 times

Sustainability focus company during phase of change in flexible packaging

Technology driven company – First in Industry for taking technology initiatives i.e. CRM, Cloud Architecture, IT Security, MDM etc

Innovation – strong new Specialty Product basket to drive profitability

Well Risk Mitigation Strategies Mix of Domestic & Exports. Exports Revenue diversified in more than 80 countries

Highest Corporate Governance Standards

Shareholding Pattern Pattern

Shareholding Pattern (%age)

Promoter Shareholding*

Non-Promoter Shareholding*

Top Non-Promoter Shareholders*:
1. Mr. Aequitas Equity Scheme I	1.0%
2. M/s Cosmo Films ESOP 2015 Trust	2.3%
3. Mr. Vikas Mehra	0.5%
4. Aequitas Investment Consultancy	0.5%
5. Government of the Province of Alberta	0.6%
6. Manishaben Jintendrabhai Lakhani	0.4%
7. Acadian Emerging Market	0.4%
8. I Wealth Fund I	0.4%
9. LSV Global Concentrated Value Fund	0.4%
10. Stiching Shell Pensioenfonds	0.3%

* As at September 30, 2020

Corporate Social Responsibility

Some of the Flagship Programs (Education to 10,000+ Students)

Covers 4,000 students from class I to XII every year

Implementation in 8 primary schools with 1,500 students

Computer Literacy Program Basic English Learning Program Cosmo Gyan Vihar Kendra

Identifies, enrolls and grades 2,500+ students from Class I to VII every year to strengthen their reading & writing skills

• National Award for Excellence in CSR & Sustainability -2015 in the category "Education Improvement"
• Asia Pacific Enterprise Leadership Award -2013 in the category Commitment to Philanthropy
• Africa CSR Leadership Award-2012 in the category improvement of Education
• "Transforming young lives through technology": An evaluation of the impact of the Computer Literacy Program in rural areas of Vadodra district - A paper Presented in Global Evaluation Conclave, New Delhi in 2010

Disclosure

Certain statements in this presentation are ―forward-looking statements‖. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results other financial condition may differ materially from those included in these statements due to a variety of factors. Any forward-looking statements made by or on behalf of Cosmo Films speak only as to the date they are made, and Cosmo Films does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward- looking statements were made.

www.cosmofilms.com