EPL LIMITED — Interim / Quarterly Report 2021

Nov 10, 2021

10 November 2021

Corporate Service Department	The Listing Department
BSE Limited	National Stock Exchange of India Ltd
25 th Floor, Phiroze Jeejeebhoy Towers,	Exchange Plaza, Plot no. C/1, G Block,
Dalal Street, Mumbai 400 001	Bandra-Kurla Complex, Bandra (E)
	Mumbai 400 051
Serip: Equity 500135.	Trading Symbol: EPL
NCDs 960308, 960310 & 960311.

Ref.: EPL Limited

Sub.: Investors notes/updates with respect to the Unaudited Financial Results for the quarter and half year ended 30 September 2021.

Dear Sirs,

Please find attached copy of the Investors notes/updates as mentioned in the subject line.

We request you to kindly take note of the aforesaid and acknowledge receipt.

Thanking You

Yours faithfully ~imited

Suresh Savaliya SVP - Legal & Company Secretary

Encl.: As above

Filed Online

EPL LIMITED

Q2FY22 Earnings Presentation (Formerly known as Essel Propack Limited)

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 is EPL (Formerly known as Essel Propack Limited) 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.

EPL 2.0

Market Leading Revenue Growth and Capital Efficient, Consistent Earnings Growth

3

EPL - Executive summary Q2FY22

• 1 Double digit revenue growth of 12.8% y-o-y contributed by AMESA, EAP and Americas.
• 2 Delivered sequential margin expansion by 20 bps, despite pressure on RM prices and supply chain challenges.
• 3 Continued supply chain disruption, with raw material and freight costs hardening.
• 4 EPL partners with Oral MNC in Asia for supply of tubes using 100% recyclable Platina laminate.

(INR million)

Q2FY22 Consolidated Financial Highlights

• Delivered 12.8% revenue growth y-o-y. Comparable revenue growth at 10.0%
• EBITDA margin and growth lower vs PY due to steep increase in raw material prices and freight cost increase.

⁵ (1) Excluding exceptional items (2) Return on Capital Employed, defined as EBIT / Average Capital Employed, on a trailing twelve month basis and adjusted for INR 160 mn in Sep 21 (INR 160 mn for Sep 20) of Transition Services Agreement (TSA) related expense and INR 166 mn for Sep 21 (INR 29 mn for Sep 20) of ESOP related expenses.

(1) Refer page 25 for details on Adjusted EBITDA and Adjusted EPS

⁶ (2) Excluding exceptional items (2) Return on Capital Employed, defined as EBIT / Average Capital Employed, on a trailing twelve month basis and adjusted for INR 160 mn in Sep 21 (INR 160 mn for Sep 20) of Transition Services Agreement (TSA) related expense and INR 166 mn for Sep 21 (INR 29 mn for Sep 20) of ESOP related expenses.

Raw Material prices remain high and volatile

Increase in RM Prices

	Q2FY22 vs Q2FY21
LLDPE	34%
HDPE	25%
LME	55%
SHFE	52%

• Overall continued increase in key RM prices:
• Price increase driven by shipping challenges
• Shipping constraints caused a few polymer plants across the globe to shut down, creating supply-demand mismatch
• India-specific issues due to regulatory changes in polymer imports resulted in further price increases

Comprehensive mitigation plan to combat input inflationary pressures

Judicious Price Increases 1

• Contractual pass-through in long term contracts has a 3-month lag
• Price corrections being negotiated across geographies to offset the raw material price increase

Cost Productivity Initiatives: Project Phoenix 2

• "Modern Times": Improving manufacturing efficiency through automation
• Increased in-house manufacturing of caps and closures
• Scrap and wastage reduction
• Rationalization of energy consumption

Mix Improvement 3

Focus on higher-profit segments and value-added offerings

Delivered sequential margin expansion by 20 bps, despite RM and freight inflation

Continued Focus on Capital Efficiency

(1) Excluding exceptional items (2) Return on Capital Employed, defined as EBIT / Average Capital Employed, on a trailing twelve-month basis and adjusted for INR 160 mn in Sep 21 (INR 160 mn for Sep 20) of Transition Services Agreement (TSA) related expense and INR 166 mn for Sep 21 (INR 29 mn for Sep 20) of ESOP related expenses.

Delivered strong progress across all our identified levers

• Accelerated growth in Personal Care
• Continued leadership in Oral Care
• Improved Performance in Europe
• Industry leadership in eco-friendly solutions

Personal Care has grown at a 15.7% CAGR Over the Last Ten Years and Continues to be the Growth Driver for EPL

(1) Growth pro-forma for shutdown of Russia manufacturing operations

Personal Care Contribution stood at 46% in H1FY22

Personal care contribution held in H1FY22.

Delivered strong progress across all our identified levers

• Accelerated growth in Personal Care
• Continued leadership in Oral Care
• Improved Performance in Europe
• Industry leadership in eco-friendly solutions

EPL has Established Global Leadership in Oral Care with the Segment Demonstrating Steady Long-Term Revenue Growth at a CAGR of 10.0%

• 1. Wallet share gain with marquee global consumer companies. Global major added in Europe.
• 1. Market share gain from regional players in China.
• 1. Travel and sample tubes recovery leading to Oral care growth in Americas.
• 1. Converted and commercialized two brands with sustainable Platina Tubes for biggest partner in India.

Delivered strong progress across all our identified levers

• Accelerated growth in Personal Care
• Continued leadership in Oral Care
• Improved Performance in Europe
• Industry leadership in eco-friendly solutions

Europe: strong growth in Oral Care; offset by temporary challenges in Personal Care

• Strong Oral Care growth driven by recent key customer wins in Europe. EPL now serves all major Oral Care players in the region.
• Europe Personal Care category revenue temporarily impacted by Covid; no wallet share loss.
• Sequentially revenue grew by 5.5%.
• Raw material inflation, labor absenteeism and lower revenue impacted margins.
• Business development pipeline is strong.

Delivered strong progress across all our identified levers

• Accelerated growth in Personal Care
• Continued leadership in Oral Care
• Improved Performance in Europe
• Industry leadership in eco-friendly solutions

Sustainability: An Intrinsic Value at EPL

Platina laminated tubes fully recyclable in HDPE bottle stream

• Recognized and certified by APR / RecyClass / Cyclos
• Widest thickness range of tubes offering: 220u 350u
• Designed to incorporate > 50% Green "Sustainably Sourced PE"
• Designed to incorporate > 30% PCR resins

Sustainability : "Leading the Pack"

Platina Pro – Next-gen sustainable laminated tubes

• Fully recyclable tubes in HDPE bottle stream approved by APR and RecyClass
• Enhanced haptics
• Enhanced chemical resistance
• Enhanced flavor barrier

Etain tubes with Post Consumer Recycled (PCR) resin content

• Eco-friendly tube from EPL with up to 30% PCR content in the tube wins the prestigious ETMA "Tube of the Year" Award 2020
• Successfully launched laminated tubes with up to 50% PCR content

Building a portfolio through industry-leading pipeline

• Platina vision
• Platina me
• Platina shine
• Platina pcrmax
• Platina biomax

Platina Success Story with CP

Platina Success Story with CP

	Key Customer Challenges	EPL Offered A Better Product	Impact
Committed Partner of Colgate Palmolive to drive their sustainability agenda	To meet CP's sustainability  commitment of driving 100% conversion to recyclable packaging format  Requirement of meeting the functional properties using thinner webs	EPL's Platina solution allows CP to pack its wide flavoured products in an optimal and safe packaging Ensuring necessary barrier properties are maintained throughout the entire life cycle of the product	Improved confidence and higher conversions to recyclable formats by other brands

"EPL, market leader in the tube packaging sector, is committed to bringing world-class tube packaging innovation to address growing requirements of customers on sustainability. EPL has innovated the firstof-its-kind Recyclable Platina Tubes for Colgate-Palmolive, keeping in mind superior functionality and no-compromise on key product attributes and efficacies."

Corporate Social Responsibility

Our Vision: Greening Lives

Focus area:

EPL's CSR Strategy is focused on Sustainability and Sustainable Development with core values of Prosperity, Balance & Harmony, Vitality, Regeneration & Renewal, and Invigoration

Governance:

CSR Board Committee reviews all the activities. In addition to this all the CSR activities are governed by a 5 member CSR Governing Council comprising senior leaders of EPL

1. Green communities:

EPL has initiated waste management program to encourage and facilitate cleaner and greener environment. Pilot project initiated in Vasind

2. Skill Development Program:

EPL has initiated a skill development program to train apprentice with diverse skillset thereby improving their employability

Looking Ahead

• 1 Committed to deliver double-digit revenue growth for second consecutive year.
• 2 Input inflation - notably, key raw materials and freight costs - continue to harden and remain a concern. Prioritizing services to customers over cost.
• 3 A comprehensive mitigation plan underway including further price increases, product mix improvement and cost optimization initiatives.
• 4 Sustainability is core and central to our strategy. It is the biggest source of competitive advantage.
• We are committed to delivering market-leading revenue growth and capital-efficient, consistent earnings growth. ⁵

Appendix

Q2FY22: Adjusted EBITDA declined 3.6% & Adjusted PAT declined 12.3% Y-o-Y (INR million)

Adjustments	EBITDA	PAT1
Reported Q2FY22 numbers	1,594	507
• TSA2 related expenses	+40	+30
• ESOP related cost	+39	+39
• One off asset revaluation / write down by Associate company	-	+59
• One time acquisition/ merger related costs	+4	+4
Adjusted Q2FY22 numbers	1,677	639
Reported Q2FY21 numbers	1,670	670
• TSA2 related expenses	+40	+30
• ESOP related cost	+29	+29
Adjusted Q2FY21 numbers	1,739	729
Like for Like Y-o-Y Growth (%)	-3.6%	-12.3%

(1) PAT excluding exceptional items; 2) Transition Services Agreement

Q2FY22 Regional Performance – 1/2

• Revenue grew by 12.8% Y-o-Y, majorly driven by AMESA, EAP and AMERICAS.
• Strong business pipeline across regions to enable continued growth momentum
• Operating margin impacted due to steep increase in raw material prices and freight cost increase

(INR million)

Q2FY22 Regional Performance – 2/2

EAP AMESA Americas Europe Margin 2,136 3,075 1,860 1,882 11.9% 18.3% 21.6% -2.9% 476 679 284 206 22.3% 22.1% 15.3% 10.9% Revenue YoY Growth EBITDA¹

(1) EBITDA is adjusted for ESOP cost for all the regions and also TSA related cost for AMESA

Q2FY22 Performance – AMESA and EAP

(INR million)

AMESA
Particulars	Q2FY22	Q2FY21	% change
Revenue	3,075	2,599	18.3%
EBITDA	679	686	-1.0%
EBITDA %	22.1%	26.4%
EBIT	421	447	-5.8%
EBIT %	13.7%	17.2%
EAP
Particulars	Q2FY22	Q2FY21	% change
Revenue	2,136	1,908	11.9%
EBITDA	476	509	-6.5%
EBITDA %	22.3%	26.7%
EBIT	352	395	-10.9%
EBIT %	16.5%	20.7%

EBITDA and EBIT is adjusted for ESOP cost for all the regions and also TSA related cost for AMESA

Q2FY22 Performance – Americas and Europe

(INR million)

Americas
Particulars	Q2FY22	Q2FY21	% change
Revenue	1,860	1,529	21.6%
EBITDA	284	258	9.9%
EBITDA %	15.3%	16.9%
EBIT	172	157	9.2%
EBIT %	9.2%	10.3%
		Europe
Particulars	Q2FY22	Q2FY21	% change
Revenue	1,882	1,939	-2.9%
EBITDA	206	285	-27.7%
EBITDA %	10.9%	14.7%
EBIT	81	162	-50.0%
EBIT %	4.3%	8.3%

EBITDA and EBIT is adjusted for ESOP cost for all the regions.

(INR million)

H1FY22 Consolidated Financial Highlights

21.4% 19.7% H1FY21 H1FY22 1,275 1,086 4.04 3.44 H1FY21 H1FY22 15,128 16,692 H1FY21 H1FY22 10.3% 3,136 3,043 20.7% 18.2% H1FY21 H1FY22 -3.0% 1,979 1,802 13.1% 10.8% H1FY21 H1FY22 -8.9% PAT¹ and EPS (INR) -14.8% Net Debt and Net Debt/ LTM EBITDA Revenue from Operations EBITDA and EBITDA Margins EBIT and EBIT Margins -2.0% -7.2% Adjusted growth % ROCE² -173 bps 2,332 3,569 0.39x 0.59x H1FY21 H1FY22 Includes INR 1675 mm of cash proceeds paid for Creative acquisition. Adjusted for this, net debt is INR 1894 mm

• Delivered 10.3% revenue growth y-oy with demand outlook looks good post pandemic. Comparable revenue growth at 8.4%
• EBITDA margin and growth lower vs PY due to steep increase in raw material prices and freight cost increase.

³⁰ (1) Excluding exceptional items (2) Return on Capital Employed, defined as EBIT / Average Capital Employed, on a trailing twelve-month basis and adjusted for INR 160 mn in Sep 21 (INR 160 mn for Sep 20) of Transition Services Agreement (TSA) related expense and INR 166 mn for Sep 21 (INR 29 mn for Sep 20) of ESOP related expenses.

(1) Refer page 32 for details on Adjusted EBITDA and Adjusted EPS

³¹ (2) Excluding exceptional items (2) Return on Capital Employed, defined as EBIT / Average Capital Employed, on a trailing twelve month basis and adjusted for INR 160 mn in Sep 21 (INR 160 mn for Sep 20) of Transition Services Agreement (TSA) related expense and INR 166 mn for Sep 21 (INR 29 mn for Sep 20) of ESOP related expenses.

H1FY22: Adjusted EBITDA declined 2.0% & Adjusted PAT declined 7.2% Y-o-Y

(INR million)

Adjustments	EBITDA	PAT1
Reported H1FY22 numbers	3,043	1,086
• China Tax refund	-	-20
• TSA2 related expenses	+80	+60
• ESOP related cost	+50	+50
• One off asset revaluation / write down by Associate company	-	+59
• One time acquisition/ merger related costs	+7	+7
Adjusted H1FY22 numbers	3,180	1,242
Reported H1FY21 numbers	3,136	1,275
• China Tax refund	-	-25
• TSA2 related expenses	+80	+60
• ESOP related cost	+29	+29
Adjusted H1FY21 numbers	3,245	1,339
Like for Like Y-o-Y Growth (%)	-2.0%	-7.2%

(1) PAT excluding exceptional items; 2) Transition Services Agreement

About EPL

(Formerly known as Essel Propack Limited)

EPL: Company Overview

EPL Caters to Marquee Customers Across Trillion Dollar Categories

About EPL

EPL is the largest global specialty packaging company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space. Employing over 3,366 people representing over 25 different nationalities, EPL functions in nine countries through 20 state of the art facilities, and is continuing to grow every year.

EPL is the world's largest laminated tube manufacturer with units operating across countries such as USA, Mexico, Colombia, Poland, Germany, Egypt, China, Philippines and India. These facilities cater to diverse categories that include brands in Oral Care, Beauty & Cosmetics, Pharma & Health, Food, and Home, offering customized solutions through continuously pioneering first-inclass innovationsin materials, technology and processes.

EPL (Formerly known as Essel Propack Limited) CIN : L74950MH1982PLC028947

For further information contact: Amit Jain amit.jain@eplglobal.com

(Formerly known as Essel Propack Limited)

Top Floor, Times Tower, Kamala City Senapati Bapat Marg, Lower Parel Mumbai - 400 013, India