TCPL Packaging Limited — Investor Presentation 2021

Nov 3, 2021

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3[rd] November 2021

The Bombay Stock Exchange Ltd Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001 Security Code:-523301

The National Stock Exchange of India Ltd Exchange Plaza, Plot No. C/1, G Block Bandra Kurla Complex, Bandra East, Mumbai 400 051 Trading Symbol:- TCPLPACK

Dear Sir(s),

Re:- Earnings Presentation

We wish to inform you that Board of Directors of the company in their Meeting held on 3[rd] November 2021, inter-alia considered and approved the Unaudited Financial Results of the Company (Standalone and Consolidated) for the quarter / half year ended 30[th] September 2021.

Attached is Earnings Presentation for Q2 & H1 FY 22. We request you to take the above on your records in the interest of general public at large.

Thanking You

For TCPL Packaging Limited

Digitally signed by NANAVATI NANAVATI SOHAN SOHAN GAMANLAL GAMANLAL Date: 2021.11.03 16:00:33 +05'30'

Compliance Officer

Encl. As above

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03 November 2021

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Certain statements and opinions with respect to the anticipated future performance of TCPL Packaging Limited (TCPL) in the presentation (“forward-looking statements”), which reflect various assumptions the and results or concerning strategies, objectives anticipated may may not to be correct. Such statements involve several prove forward-looking risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forwardlooking statements. These include, among other factors, changes in economic, political, regulatory, business or other market conditions. Such forward-looking statements only speak as at the date the presentation is provided to the recipient and TCPL is not under any obligation to update or revise such statements to reflect new events or forward-looking circumstances. No representation or warranty (whether express or is in of information in this or that implied) given respect any presentation this presentation is suitable for the recipient’s purposes. The delivery of this does not that the information herein is correct as presentation imply at time after the date hereof and TCPL has no whatsoever any obligation to update any of the information or the conclusions contained herein or to correct inaccuracies which become after the date any may apparent hereof.

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TCPL – One of India’s leading producers of sustainable packaging solutions for customers across industries

YEARS

(RS. CRORE) (RS. CRORE)

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17.7%
15 years
Revenue
CAGR
(FY07 to FY21)
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7
Manufacturing
units
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~1,900
Employees
(FY21)
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*Note – Calculation for Cash Profit = PBT + Depreciation

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One of India’s largest Folding Carton manufacturers and convertors of paperboard Innovative player in the Flexible packaging industry Close-to-Demand Pan-India Footprint to fast-track growth Caters to Consumer Goods, Food & Beverage, Tobacco, Liquor, Agro-Chemicals, Pharma, and various other industries Accredited with international certifications of quality and implemented Integrated Management System (IMS) for allround quality assurance

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~
85%
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~
15%
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Revenue Mix (FY21)

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Folding Cartons

Flexible Packaging

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One of India's leading Carton Packaging companies since 1990s driven by adoption of industryleading technology

Offers wide-range of innovative, sustainable & unique packaging solutions Well-positioned to support diverse customer requirements with PAN India presence and network

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MONOCARTONS SPECIALTY & GIFT PACKAGING SHELF READY PACKS
FOOD & BEVERAGES PACKAGING
PHARMA PACKAGING
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Innovative versatile and sustainable solutions to customers across player providing industry verticals

Offers a variety of products including Pouches, Laminates, Shrink Sleeves, and Wrap Around Labels

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POUCHES
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SHRINK SLEEVES
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WRAP AROUND LABELS
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LAMINATES
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TIPPING PAPER

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BUNDLE PAPER, INNER
FRAMES & SOFT PACKS
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Long-term connect with marquee clients spanning over 31 years

Deep-rooted Relationships

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Developing creative solutions by a dedicated team with proven capabilities

Innovative Products

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Equipped with latest state-ofthe-art machines

Several technical collaborations to ensure efficiency & productivity

Advanced Technology

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Operates multiple manufacturing units

Vast market network across India and Oversees Consistent investment in sustainable packaging solutions

Wide-spread

Sustainability

Presence

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Liquor Agrochemical, Pharma & Others FMCG
Tobacco
Food & Beverages
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“Enables leading companies across industries identify the right packaging solutions”

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Pan-India Presence

Scale

Close-to-demand strategy to drive growth

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Improving consolidation in a
largely unorganized industry
Sustainable Packaging
Solutions
Emerging as a major growth
opportunity
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Partnership with Customers

Leverage existing relationship to gain higher wallet share

Investment in New Technologies Leveraging latest technology to expand market opportunity

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Diversification
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Focused approach towards growth through diversification

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Total Revenues (Rs. Cr.) EBITDA (Rs. Cr.)

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37.2
36.1
253.0
245.1
Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22
Shift % (Y-o-Y) 3.2% Shift % (Y-o-Y) -2.8%
Margins (%)
15.5% 14.6%
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Cash Profit (Rs. Cr.)
28.5 28.5
Q2FY21 Q2 FY22
Shift % (Y-o-Y) 0.0%
Margins (%)
11.6% 11.3%
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Note: Standalone figures

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TCPL has entered into an agreement to acquire Creative Offset Printers Private Limited (COPPL)

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• Enters high potential rigid boxes segment – to cater one of the fastest growing smartphone markets in the world

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• Diversifies product offering and strengthens the Company’s position as a leading producer of sustainable packaging solutions for customers across industries

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• Acquisition aligned with TCPL's strategic objective to grow by leveraging its scale and institutional capabilities in a largely unorganized industry

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• The notable rationalization and of various costs as Company anticipates synergies including optimization their manufacturing

• facilities are in close proximity

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• To acquire a majority stake and take control of the Board of Directors

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• Mr. Rohit Khanna to continue in a leadership position under the guidance of the Board

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The completion of the transaction is subject to satisfactory accomplishment of certain conditions precedent

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Update on expansion

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Second manufacturing line in the Flexible Packaging segment progressing well

• The Company expects to start operations this fiscal

• Unit will effectively double the segment’s capacity

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• Installation of state-of-the-art innovative Polyethylene (PE) blown film line at Silvassa is also on track

• One of the first few such facilities in the World

• Given increasing customer preference for sustainable & recyclable solutions, end-products based on this environmentally friendly Machine-Direction Orientation (MDO) technology is anticipated to receive healthy traction

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Commenting on the performance for Q2 & H1 FY22 Mr. Saket Kanoria, Managing Director, TCPL Packaging Limited said

“TCPL has shown strong resilience and achieved another quarter of steady performance amidst a challenging operating environment. While gross margins were impacted owing to raw material we were able to minimize the on EBITDA rising prices, impact margins by managing our operating costs. We continue to see raw material inflation in the ongoing quarter; however, we are working with our customers to undertake adequate price hikes to normalize our margins.

In a key development, we are excited to announce that we have entered into a definitive share purchase agreement to acquire Creative Offset Printers Private Limited (COPPL), a strategic move geared towards further diversifying the Company’s product offerings and strengthening our long-term growth prospects. With this acquisition, TCPL enters the highpotential rigid box segment and will cater to one of the world's fastest-growing smartphone markets.

Our expansion plans in the flexible segment are progressing well and will be concluded by the end of this fiscal. Additional capacities and pick up in demand momentum should enable us deliver strong growth rates in the coming years. Overall, we believe TCPL is well poised to capitalize on the rising demand for sustainable packaging solutions from leading brands and would support our endeavour to create value for all stakeholders.”

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Acquisition Details
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About Creative Offset Printer Private Limited (COPPL)

• TCPL to acquire a majority stake in COPPL

• Incorporated in 2002, COPPL was started by Mr. Rohit Khanna & Ms. Gazal Dhillon

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• Taps high potential rigid boxes segment focused on one of the fastest growing smartphone markets in the world

• Core business is manufacturing of rigid packaging boxes

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• Strategically located at Noida, COPPL’s production facility is well-equipped to target India’s largest mobile manufacturing hub

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• Diversifies product offering & strengthens position as a leading producer of sustainable packaging solutions for customers across industries To acquire 60% equity stake

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• Associated with major mobile firms operating in Noida including Samsung & supplies various types of mobile boxes

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Since both companies have production facilities in close proximity, TCPL aims to capitalize from key synergies, like cost rationalization & optimization

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COPPL’s
Manufacturing
facility
Haridwar
Delhi
Noida
Guwahati
Silvassa
Kolkata
Mumbai
Goa
Bangalore Production
Sales & Business
Support
TCPL has a PAN-India presence
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Indian Smart phone market

• One of the fastest growing markets for smartphones in the World with high value add

• • Over the Indian years, Smartphone shipment

• has grown tenfold, exceeding markets such as North America, Latin America, and Africa

• • India is the world’s 2nd largest mobile manufacturing country, and is vying for the top spot by attracting global giants with production-linked incentives (PLI) o This bodes well for the box rigid

• manufacturing business, which caters to the mobile industry for not only the Indian market but for exports as well

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Indian Smartphone Shipment (Million)

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173
150
2011 to 2020
CARG: ~26%
14.5
2011 2020 2021 F
Source: Statista 2021
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High potential rigid packaging segment: To tap one of the fastest growing smartphone markets in the world

18 Particulars (Rs. crore) Q2 FY22 Q2 FY21 Y-o-Y Change (%) H1 FY22 H1 FY21 Y-o-Y Change (%) Revenues from Operations 247.7 239.8 3.3% 470.6 405.6 16.0% Other Operating Income 5.3 5.3 -0.2% 8.5 9.0 -5.2% Total Revenues 253.0 245.1 3.2% 479.1 414.6 15.6% Total Expenditure • Raw Material expenses 151.4 138.9 9.0% 287.5 233.4 23.2% • Employee benefits expense 25.1 21.6 16.5% 49.1 44.0 11.4% • Other expenses 40.4 47.4 -14.8% 76.1 76.5 -0.5% EBITDA 36.1 37.2 -2.8% 66.5 60.7 9.6% EBITDA Margin (%) 14.6% 15.5% (60) bps 14.1% 15.0% (90) bps Other Income 0.4 0.7 -44.4% 0.5 1.0 -45.9% Finance Costs 8.0 9.4 -14.5% 15.7 19.3 -18.6% Depreciation and Amortization 13.6 12.8 6.3% 26.9 25.6 5.2% PBT 14.9 15.7 -5.1% 24.4 16.8 45.4% Tax expense 4.3 5.2 -18.5% 7.7 5.6 38.4% PAT 10.7 10.5 1.6% 16.7 11.2 48.9% PAT Margin (%) 4.3% 4.4% 230 bps 3.5% 2.8% (40) bps Cash Profit 28.5 28.5 0.0% 51.3 42.4 21.1% EPS Diluted (Rs.) 11.73 11.54 1.6% 18.34 12.31 49.0%

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Total Revenues

Total Revenues stood at Rs. 253.0 crore as against Rs. 245.1 crore

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Reported steady revenue performance during the quarter despite a challenging environment due to the ongoing pandemic

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The Company is witnessing a month-on-month improvement in revenues and anticipates the trend to continue in the upcoming quarters

EBITDA

EBITDA came in at Rs. 36.1 crore, with EBITDA Margins at 14.6%

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Gross margins during the quarter were impacted owing to rising raw material prices. However, the impact on EBITDA margins was limited due to cost management

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Given the current inflationary environment, the Company is undertaking price hikes to normalize margins going forward

Cash Profit After Tax

Cash PAT came in stable at Rs. 28.5 crore

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Depreciation came in at Rs. 13.6 crore and finance cost stood at Rs. 8.0 crore during the quarter

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Rs. 310.8 Rs. 694.9 Rs. 648.7
Crore Crore Crore
Net-worth Capital Employed Fixed Assets (Gross)
Rs. 367.8
Rs. 16.2
93 Days
Crore
Crore
Cash & Investments Net Debt Net Working Capital Days
Note: As on 30th September 2021 20
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Q2 & H1 FY2022 Earnings Conference Call

Time

Pre-registration

• 2:30 p.m. IST on Monday, November 08, 2021 To enable participants to connect to the conference call without having to wait for an operator, please register at the below mentioned link:

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Primary dial-in number

• + 91 22 6280 1141 / 7115 8042

• Hong Kong: 800 964 448

International Toll-Free • Number • UK: 0 808 101 1573

• Singapore: 800 101 2045

• USA: 1 866 746 2133

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TCPL Packaging Limited (TCPL) (BSE: 523301, NSE: TCPLPACK), is one of India’s leading producers of sustainable packaging solutions for customers across industries. The Company partners with customers to provide paperboard-based packaging solutions including folding cartons, printed blanks and outers, litho-lamination, plastic cartons, blister packs, and shelf-ready packaging. TCPL has also ventured into the flexible packaging industry, with capability to produce printed cork-tipping paper, laminates, sleeves, and wrap-around labels.

Headquartered in Mumbai, India, TCPL has a PAN India presence with 7 state-of-the-art manufacturing facilities and marketing offices in key metro cities. Over the years, the Company has diversified and broadened its to service a effectively operations wide of while range packaging products, consistently adding new customers and increasing its share of business in established customers and markets.

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For further information, please contact:

Vivek Dave TCPL Packaging Limited Tel: +91 70454 57686 Email: vivek.dave@tcpl.in

Anoop Poojari / Jenny Rose CDR India

Tel: +91 98330 90434 / 86899 72124 Email: anoop@cdr-india.com / jenny@cdr-india.com

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