EPL LIMITED — Interim / Quarterly Report 2021

Jul 29, 2021

29 July 2021

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1 1 Mumbai··· 400. 051······································································· I I Scrip: Equity 500135.	I Trading Symbol: EPL l
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Ref.: EPL Limited

Sub.: Investors notes/updates with respect to the Unaudited Financial Results for the quarter ended 30 June 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.

Kindly take the above on record.

Thanking You

Yours faithfully Fgited

Suresh Savaliya ~ SVP - Legal & Company· Secretary

Encl.: As above

Filed online

EPL LIMITED

Q1FY22 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 Q1FY22

• 1 Double digit growth of 12.8% pro-forma for shutdown of Russia manufacturing operations and Hand Sanitizer pipeline in Q1FY21. •
• 2 Delivered sequential margin expansion by 66 bps. •
• 3 Price increases taken across the board ahead of plan. •
• 4 Navigated unprecedented supply disruption with high raw material and transportation cost. •
• Intrinsic performance of the business is strong; exit June is better than full quarter on all key parameters. 5 •

(INR million)

Q1FY22 Consolidated Financial Highlights

• Delivered 7.8% revenue growth. Double digit growth of 12.8% pro-forma for shutdown of Russia manufacturing operations and Hand sanitizer pipeline in Q1FY21. Comparable Organic Revenue growth at 10.4%
• EBITDA and EBITDA margin growing sequentially. 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 Jun 21 (INR 138 mn for Jun 20) of Transition Services Agreement (TSA) related expense , Nil in Jun 21 (INR 11 mn in Jun 20) of tax amnesty expenses and INR 155 mn for Jun 21 (Nil for Jun 20) of ESOP related expenses.

EPL – Capital Efficient, Sustainable Revenue Growth

(1) Refer page 27 for details on Adjusted EBITDA and Adjusted EPS

6 (2) Return on Capital Employed, defined as EBIT / Average Capital Employed, on a trailing twelve month basis and adjusted for INR 160 mn in Jun 21 (INR 138 mn for Jun 20) of Transition Services Agreement (TSA) related expense , Nil in Jun 21 (INR 11 mn in Jun 20) of tax amnesty expenses and INR 155 mn for Jun 21 (Nil for Jun 20) of ESOP related expenses.

Raw Material prices remain high and volatile

Holistic EBITDA margin improvement plan on track

Holistic EBITDA margin improvement plan for sequential margin expansion is already in place for FY22 through a three-pronged approach:

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 Phase II 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 66 bps

8

Continued Focus on Capital Efficiency

(1) Return on Capital Employed, defined as EBIT / Average Capital Employed, on a trailing twelve month basis and adjusted for INR 160 mn in Jun 21 (INR 138 mn for Jun 20) of Transition Services Agreement (TSA) related expense , Nil in Jun 21 (INR 11 mn in Jun 20) of tax amnesty expenses and INR 155 mn for Jun 21 (Nil for Jun 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 Major Growth Driver for EPL in FY22 -------------------------------------

* Growth pro-forma for shutdown of Russia manufacturing operations and Hand sanitizer pipeline in Q1FY21.

Personal Care Contribution stood at 46% in Q1FY22

Personal care share held in Q1FY22 and will continue to grow in FY22

Continued Growth in Personal Care (1/2)

• Personal Care contribution increased to 56.6% in Q1FY22 (v/s 46.0% in Q1FY21), Growth is seen majorly due to the recovery of B&C category from ongoing Covid -19 outbreak.
• Continued focus on customer engagement, increased wallet share & NPD has enabled a better performance in this quarter.

• Personal Care contribution decreased to 38.3% in Q1FY22 (v/s 44.9% in Q1FY20), due to demand for sanitizer tubes tapering off in Pharma category. However, robust growth in B&C category.
• Strong business pipeline in B&C and Pharma categories and increased focus on fast-growing regional players will drive robust growth in FY22.

^* Growth pro-forma for shutdown of Russia manufacturing operations and Hand sanitizer pipeline in Q1FY21.

Continued Growth in Personal Care (2/2)

• Personal Care contribution decreased to 21.5% in Q1FY22 (v/s 29.4% Q1FY21). Growth impacted due to lower offtake in personal care category, month-long strike in Colombia and one key customer moving production from Colombia to Asia.
• New customer wins across categories; cross-selling Personal Care products to existing Oral care customers will lead to a productive growth in Americas region.

• Personal Care contribution decreased to 61.2% in Q1FY22 (v/s 70.0% in Q1FY21), due to demand for sanitizer tubes tapering off and closure of Russia mfg. operation.
• Strong Business Development pipeline.

^* Growth pro-forma for shutdown of Russia manufacturing operations and Hand sanitizer pipeline in Q1FY21.

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. Oral care category grew in India with strong performance of global major.

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

Strong growth in Oral Care in Europe strengthens the portfolio

Efforts/Investments in last few quarters starting to show results

• 1. Strengthening of front-end organization
• 1. Improved pipeline development process
• 1. Investments in capabilities and flexibilities
• 1. High customer engagement driven by best-in-class offerings and service levels

Impact

• 1. Strong oral care growth due to recent key customer wins in Europe. Now serves all major Oral Care players in the region.
• 1. Closure of Manufacturing facility in Russia, tapering off of hand sanitizer and lower offtake in personal care category due to second wave Covid has impacted the revenue in Europe.
• 1. Business development pipeline strong

EPL continues to deliver robust growth driven by new customer wins and wallet share gain

18 18 * Growth pro-forma for shutdown of Russia manufacturing operations and Hand sanitizer pipeline in Q1FY21.

Leading to Strong EBITDA Growth and Margin Improvement

Key elements to profit growth

• 1. Revenue growth contributing to fixed cost leverage
• 1. Shift towards premium products
• 1. Lean initiatives and productivity improvement

Impact

• 1. EBITDA impacted due to personal care category revenue impact.
• 1. Initiatives including operating leverage will drive the improvement in EBITDA margins.
• 1. Operations further optimized with the closure of Russia Manufacturing facility.

Sustained momentum will lead to continuous performance improvement

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 HELA

	Key Customer Challenges	EPL Offered A Better Product	Impact
Partnered to create more sustainable packaging for Hela's brands	Hela's customer requirements on sustainability • Requirement of extremely high oxygen barrier close to that of aluminum barrier laminates	EPL's Platina Pro solution allows Hela to pack challenging material like Ketchups in an optimal, safe and odourless way Ensuring necessary barrier properties are maintained throughout the entire life cycle of the product.	Technical breakthrough will open up new market opportunities

The problem statement was to support Hela's conversion towards fully sustainable/recyclable tubes. EPL was able to leverage the PLATINA PRO 250, which ticked all boxes in terms of stability, bulk protection, etc. Furthermore, EPL's expertise in printing was also a key differentiator as customer artworks are very challenging.

EPL's capability to manufacture cutting-edge sustainable tubes combined with its expertise in printing enabled the firm to successfully convert the opportunity.

Corporate Social Responsibility

Focus area:

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

Governance:

CSR Board Committee will review all the activities. In addition to this all the CSR activities will be governed by a 5 member CSR Governing Council consisting of the senior leaders of EPL.

Our Vision: Greening Lives

Green communities:

Working on Waste management program to encourage and facilitate cleaner and greener environment: Pilot project to be initiated in Vasind location

Constant support to the marginalized communities:

• EPL donated INR 2 mm to Akshaya Patra in Q1
• The funds will be utilized for distribution of "Family Happiness kits" to marginalized communities nearby our manufacturing plants
• The kits consists of non perishable food items (such as grains, pulses), hygiene items (such as toothpaste, sanitary pads, masks etc.), and educational material (Covid19 awareness book, notebook for children)

1

Looking Ahead: FY22

• Committed to deliver double digit revenue growth for second consecutive year. •
• Robust pipeline to fuel future growth
• 2 Quarter-on-Quarter improvement in EBITDA margin through: •
• Judicious price increases
• Cost productivity initiatives
• Mix improvement
• 3 Sustainability will be a key driver and EPL is leading the way for the industry. •
• We are committed to delivering market leading revenue growth and capital efficient, consistent earnings growth. 4 •
• 5 Severe Covid Wave 3 and volatile raw material prices remain a concern. •

Appendix

Q1FY22: Adjusted EBITDA

(INR million)

Adjustments	EBITDA	PAT1
Reported Q1FY22 numbers	1,449	579
• TSA2 related expenses	+40	+30
• One time acquisition related costs	+3	+3
• China Tax refund	-	-20
• ESOP related cost	+11	+11
Adjusted Q1FY22 numbers	1,503	603
Reported Q1FY21 numbers	1,466	605
• China Tax refund	-	-25
• TSA2 related expenses	+40	+30
Adjusted Q1FY21 numbers	1,506	610
Like for Like Y-o-Y Growth (%)	-0.2%	-1.1%

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

Q1 FY22 Regional Performance – 1/2

• The revenue grew by 7.8% Y-o-Y, majorly driven by AMESA 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)

Q1FY22 Regional Performance – 2/2

EAP AMESA Americas Europe Margin 2,060 2,819 1,639 1,784 2.0% 28.5% 8.8% -9.8% 465 613 233 233 22.6% 21.8% 14.2% 13.1% Revenue YoY Growth EBITDA¹

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

Q1FY22 Performance – AMESA and EAP

(INR million)

AMESA
Particulars	Q1FY22	Q1FY21	% change
Revenue	2,819	2,193	28.5%
EBITDA	613	441	39.1%
EBITDA %	21.8%	20.1%
EBIT	351	200	75.7%
EBIT %	12.5%	9.1%
EAP
Particulars	Q1FY22	Q1FY21	% change
Revenue	2,060	2,020	2.0%
EBITDA	465	552	-15.8%
EBITDA %	22.6%	27.3%
EBIT	346	438	-21.0%

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

Q1FY22 Performance – Americas and Europe

(INR million)

Americas
Particulars	Q1FY22	Q1FY21	% change
Revenue	1,639	1507	8.8%
EBITDA	233	256	-9.1%
EBITDA %	14.2%	17.0%
EBIT	124	154	-19.7%
EBIT %	7.5%	10.2%
	Europe
Particulars	Q1FY22	Q1FY21	% change
Revenue	1,784	1977	-9.8%
EBITDA	233	298	-21.8%
EBITDA %	13.1%	15.1%
EBIT	106	179	-40.7%
EBIT %	6.0%	9.1%

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

About EPL

(Formerly known as Essel Propack Limited)

EPL: Company Overview

33 Note: Numbers on this page are as of 31 March, 2021. ROCE on trailing twelve month basis; adjusted for INR 160 mn of Transition Services Agreement (TSA) related expense and INR 144 mn of ESOP related expenses.

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