EPL LIMITED — Interim / Quarterly Report 2022

Feb 9, 2022

9 February 2022

Corporate Service Department	The Listing Department
BSE Limited	National Stock Exchange of India Ltd
$\frac{1}{2}$ 25 th Floor, Phiroze Jeejeebhoy Towers,	Exchange Plaza, Plot no. C/1, G Block,
Dalal Street,	Bandra-Kurla Complex, Bandra (E)
Mumbai 400 001	Mumbai 400 051
Scrip: Equity 500135.	Trading Symbol: EPL
NCDs 960308, 960310 & 960311.
CP 721983

Ref.: EPL Limited (EPL)

Sub.: Investors notes/updates with respect to the Unaudited Financial Results for the third quarter and nine months ended 31 December 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 Fo~ited

LJ Suresh Savaliya 7 I SVP - Legal & Company Secretary

Encl.: As above

Filed online

Leading the pack Su1.f1d,rfrb{y

1 EPL LIMITED Q3FY22 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 - Q3FY22 Highlights – Continued double digit revenue growth, margins to recover going forward

• 1 Double digit revenue growth of 14.9% y-o-y contributed by AMESA, EAP and Americas. •
• 2 Margin impacted by continuing raw material price and freight cost hardening. Barring any unforeseen volatility, we expect margins to recover going forward. •
• 3 Continue to champion sustainability: added another customer in Asia for supply of recyclable tubes. •
• 4 Joined Ellen Macarthur Foundation's New Plastic Economy Global Commitment, become signatory to United Nation's Global Compact (UNGC) and also Rated 'B' Management Level by CDP (Formerly Carbon Disclosure Project) for Climate Change and Water Security. •
• 5 Won the prestigious "Best Governed Company" award at the 21st ICSI National Award for Excellence in the category of Corporate Governance •

EPL to enter Brazil on the back of a commitment from a global customer

• Attractive geography: Large, emerging market (approximately 3.5 billion tubes) with consumption tailwinds. 1 •
• Marquee, global anchor customer: further deepens our long-term relationship; EPL to have dominant wallet share of their Brazil volumes. 2 •
• 3 Strong growth potential: opportunity to grow market share by widening customer base, given favorable competitive dynamics. •

Follows proven model of organic expansion into new markets viz. US, Egypt, China

(INR million)

Q3FY22 Consolidated Financial Highlights

20.9% 16.6% Q3FY21 Q3FY22 709 571 2.25 1.81 Q3FY21 Q3FY22 7,686 8,834 Q3FY21 Q3FY22 14.9% 1,603 1,387 20.9% 15.7% Q3FY21 Q3FY22 -13.5% 1,015 745 13.2% 8.4% Q3FY21 Q3FY22 -26.6% PAT1 and EPS (INR) -19.5% Net Debt and Net Debt/ LTM EBITDA Revenue from Operations EBITDA and EBITDA Margins EBIT and EBIT Margins -12.5% -17.2% Adjusted growth % ROCE2 -436 bps 1,613 4,403 0.26x 0.75x Q3FY21 Q3FY22 Includes INR 1,675 mm of cash proceeds paid for Creative acquisition. Adjusted for this, net debt is INR 2,728 mm - - - - - - D D -

• Delivered 14.9% revenue growth y-o-y. Comparable y-o-y revenue growth is 11.6%
• EBITDA margin has declined vs PY due to steep increase in raw material prices, freight cost increase, lag in price pass-through, and higher employee absenteeism in certain geographies due to Covid.

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 Dec 21 (INR 160 mn for Dec 20) of Transition Services Agreement (TSA) related expense and INR 154 mn for Dec 21 (INR 86 mn for Dec 20) of ESOP related expenses.

EPL – Continued, Sustainable Revenue Growth

(1) Refer page 20 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 Dec 21 (INR 160 mn for Dec 20) of Transition Services Agreement (TSA) related expense and INR 154 mn for Dec 21 (INR 86 mn for Dec 20) of ESOP related expenses.

Raw Material prices remain high and volatile

Steep increase in RM Prices vs PY

	Q3FY22 vs Q3FY21
LLDPE	40%
HDPE	29%
LME	44%
SHFE	35%

Overall continued increase in key RM prices:

• Overall RM prices continued to increase in Q3 with slight softening seen at the end of quarter.
• Successful sourcing strategy to increase stock levels, help secure availability.

Comprehensive plan in place to recover margins

Judicious Price Increases 1

• Second phase of price corrections to be realized in Q4
• Contractual pass-through as per 3-month lag

Mix Improvement 2

Focus on higher-profit segments and value-added offerings

Cost Productivity 3

• Increased in-house manufacturing of caps and closures
• Global program to further reduce scrap and wastage

Procurement 4

Improved sourcing strategy

Organizational Review 5

Program to enhance organizational effectiveness and efficiency

RM and freight price stable over recent months; a comprehensive plan in place to recover margins

Delivered strong progress across all our identified levers

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

Personal Care has grown at a 15.7% CAGR Over the Last Ten Years. Continues to be the Growth Driver for EPL _______ , ___________________________________ _

(1) Growth pro-forma for shutdown of Russia manufacturing operations; compares with consolidated revenue growth of 12.9%

Delivered strong progress across all our identified levers

• Accelerated growth in Personal Care
• Continued leadership in Oral Care
• 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.
• 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
• 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

Association of ~~:stic Recyclers

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

• We are delighted to announce that EPL has bagged the 'WorldStar Global Packaging Awards 2022' in the category of Health and Personal Care.
• Laminated tubes with up to 50% PCR content

Building a portfolio through industry-leading sustainable choices

Platina Success Story with VICCO

Vicco Labs launches rts Cosmetic Products in EPts Sustainable Platina Tube Packaging

Vicco Labs' launches its Cosmetic Products in EPl.'.s Sustainable Platina Tube Packaging

ANI I Updated Nov 16, 2021 14.41 1ST

Vicco Labs introduces cosmetic products in EPL's Platina tube packaging

By NS Packaging Staff Writer 16 Nov 2021

Onc.e used, Platina rubes can be recycled in the Code 2 plastic stream used around the world for recycling products such as milk cans and juice bottles

Partnerships with leading customers such as Colgate, Unilever, P&G, Hela, and GSK already in place

Corporate Social Responsibility

Our Vision: Greening Lives ~ Greening

Focus area:

EPL's CSR Strategy 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 Program:

EPL has initiated plastic 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

3. Community Welfare Program:

EPL has been supporting the communities near our plants by strategic investments to build infrastructure for promoting health & education (including Covid related support in short term)

Looking Ahead: Continued double digit revenue growth with margin recovery

• 1 Committed to deliver double-digit revenue growth. •
• 2 Entry into the Brazil market with a long-term contract with a leading MNC as anchor customer. •
• 3 A comprehensive margin recovery plan is underway including further price increases, product mix improvement and cost optimization initiatives. •
• 4 Sustainability is core and central to our strategy. Significant steps to create sustainable solutions for customers, while enhancing sustainability within our operations. •
• 5 Confident that margin has bottomed out. •

Appendix

Q3FY22: Adjusted EBITDA declined 12.5% & Adjusted PAT declined 17.2% Y-o-Y

		(INR million)
Adjustments	EBITDA	PAT1
Reported Q3FY22numbers	1,387	571
•TSA2related expenses	+40	+30
•ESOP relatedcost	+46	+46
•One time acquisition/ merger/ patent related costs	+16	+13
Adjusted Q3FY22 numbers	1,489	660
Reported Q3FY21numbers	1,603	709
•TSA2related expenses	+40	+30
•ESOP relatedcost	+58	+58
Adjusted Q3FY21 numbers	1,701	797
Like for Like Y-o-Y Growth (%)	-12.5%	-17.2%

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

(INR million)

Q3FY22 Regional Performance

EAP AMESA Americas Europe Margin 2,459 3,225 1,899 1,732 20.4% 35.7% 9.4% -2.0% 549 685 175 118 22.3% 21.2% 9.2% 6.8% Revenue YoY Growth EBITDA1

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

Q3FY22 Performance – AMESA and EAP

(INR million)

AMESA
Particulars	Q3FY22	Q3FY21	% change
Revenue	3,225	2,376	35.7%
EBITDA	685	617	11.0%
EBITDA %	21.2%	26.0%
EBIT	432	386	12.0%
EBIT %	13.4%	16.2%
EAP
Particulars	Q3FY22	Q3FY21	% change
Revenue	2,459	2,043	20.4%
EBITDA	549	511	7.5%
EBITDA %	22.3%	25.0%
EBIT	419	385	8.8%

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

Q3FY22 Performance – Americas and Europe

(INR million)

Americas
Particulars	Q3FY22	Q3FY21	% change
Revenue	1,899	1,736	9.4%
EBITDA	175	308	-43.2%
EBITDA %	9.2%	17.7%
EBIT	56	205	-72.7%
EBIT %	2.9%	11.8%
Europe
Particulars	Q3FY22	Q3FY21	% change
Revenue	1,732	1,768	-2.0%
EBITDA	118	230	-48.5%
EBITDA %	6.8%	13.0%
EBIT	(18)	105	-117.0%

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

About EPL

(Formerly known as Essel Propack Limited)

EPL: Company Overview

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

Thank You

28 Corp Off: Top Floor, Times Tower, Kamala City, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013, India Regd. Off: P.O. Vasind, Taluka Shahpur, Dist. Thane 421604 Maharashtra CIN: L74950MH1982PLC028947