Time Technoplast Limited — Interim / Quarterly Report 2020

Nov 10, 2020

==> picture [264 x 81] intentionally omitted <==

Earning Presentation

H1 / Q2FY21 November 2020

==> picture [138 x 110] intentionally omitted <==

==> picture [68 x 72] intentionally omitted <==

==> picture [69 x 44] intentionally omitted <==

==> picture [127 x 84] intentionally omitted <==

==> picture [96 x 94] intentionally omitted <==

==> picture [125 x 137] intentionally omitted <==

==> picture [50 x 69] intentionally omitted <==

==> picture [73 x 60] intentionally omitted <==

==> picture [70 x 33] intentionally omitted <==

==> picture [32 x 37] intentionally omitted <==

B S E : 5 3 2 8 5 6 | N S E : T I M E T E C H N O | I S I N : I N E 5 0 8 G 0 1 0 2 9 | C I N : L 2 7 2 0 3 D D 1 9 8 9 P L C 0 0 3 2 4 0

©2020, Time Technoplast Ltd., All Rights Reserved

Mana ement Commentar g y

==> picture [129 x 151] intentionally omitted <==

Mr. Anil Jain

MD and CEO

“With the opening of the economy, second Quarter of the financial year witnessed a gradual improvement in the performance of the company, however plant operations continues to face supply chain issues and labour availability challenges. Despite such challenges and lower capacity utilisation, the company was able to protect its operating margin from a steep decline due to various cost reduction measures taken. The quarter also witnessed two major achievements for the company including commencement of production at its third green field manufacturing facility at Iowa in USA and grant of approval from regulatory authorities for manufacturing of Type-IV Composite Cylinder for CNG Cascades for which the company has started receiving order inquiries from various gas distribution companies. We remain cautiously optimistic about the future outlook with tailwinds in the chemical industry due to likely migration of chemical companies out of China to other low cost production areas and Government’s expansion plan for supply and distribution network of CNG.”

2

Table of content

Financial Hi hli hts g g

Ke Develo ments y p

Com an Overview p y

A endix pp

4

8

9

11

==> picture [12 x 471] intentionally omitted <==

Safe Harbour

Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", seek to", "future", "objective", "goal", "likely", "project", "should", "potential", "will pursue", and similar expressions of such expressions may constitute "forward-looking statements", These forward looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forwardlooking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date

3

thereof.

Q2FY21 Financial Hi hli hts g g

==> picture [890 x 209] intentionally omitted <==

----- Start of picture text -----

Total Income (₹ Mn) EBITDA (₹ Mn) and Margin (%) PAT (₹ Mn) Cash Profit (₹ Mn)
13.9%
8,710
12.4% 386 798
11.4%
1,214
7,444 632
245
926
542
4,755 259
-117
Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21
----- End of picture text -----

Note: The Quarter ended September 30, 2020 results are not comparable to the corresponding period of the previous year due to the Covid-19 impact

==> picture [311 x 182] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Particulars|India|Overseas|
|Volume Growth (-13%)|-12%|-13%|
|Revenue Growth (-15%)|-14%|-15%|
|Revenue Contribution|69%|31%|
|EBITDA Margin|12.5%|12.2%|
|PAT Margin|3.6%|2.7%|
|Cash Profit Margin|8.6%|7.8%|

----- End of picture text -----

==> picture [9 x 168] intentionally omitted <==

==> picture [307 x 182] intentionally omitted <==

 Value added products de-grew by 10.3% in Q2FY21 as compared to Q2FY20, while established products de-grew by 15.7%. The share of value added products stood at 21.8% of total sales in Q2FY21 as against 20.8% in Q2FY20. The company’s focus remains to increase the share of value added products in its revenue and improve margins.

Appendix

Company Overview

Key Developments

Financial Highlights

4

Q2FY21 Se mental Performance g

==> picture [623 x 370] intentionally omitted <==

----- Start of picture text -----

Polymer Products [ ] Composite Products []
Revenue (₹ Mn) EBITDA Margins (%) Revenue (₹ Mn) EBITDA Margins (%)
13.8%
14.2%
12.3%
12.7%
6,103
5,100
2,602
2,337
Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21
----- End of picture text -----*

Revenue Share

==> picture [307 x 181] intentionally omitted <==

==> picture [307 x 181] intentionally omitted <==

Polymer Products:* HM-HDPE plastic Drums/Jerry Cans and Pails, Polyethylene (PE) pipes, Turf & Mattings, Disposable Bins and MOX Films Composite Products: Intermediate Bulk Containers (IBC), Composite Cylinders, Energy storage devices, Auto Products and Steel Drums.

Note: The Quarter ended September 30, 2020 results are not comparable to the corresponding period of the previous year due to the Covid-19 impact

Appendix

Company Overview

Key Developments

Financial Highlights

5

H1FY21 Financial Hi hli hts g g

==> picture [890 x 208] intentionally omitted <==

----- Start of picture text -----

Total Income (₹ Mn) EBITDA (₹ Mn) and Margin (%) PAT (₹ Mn) Cash Profit (₹ Mn)
14.3% 823 1,638
17,395
12.0%
2,481
12,199
891
1,468
128
H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21
----- End of picture text -----

Note: The Half Year ended September 30, 2020 results are not comparable to the corresponding period of the previous year due to the Covid-19 impact

==> picture [311 x 182] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Particulars|India|Overseas|
|Volume Growth (-28%)|-32%|-19%|
|Revenue Growth (-30%)|-34%|-21%|
|Revenue Contribution|65%|35%|
|EBITDA Margin|12.0%|12.0%|
|PAT Margin|0.6%|1.9%|
|Cash Profit Margin|7.1%|7.5%|

----- End of picture text -----

==> picture [9 x 168] intentionally omitted <==

==> picture [307 x 181] intentionally omitted <==

• Total Debt in H1FY21 reduced to ₹8,164 Mn as against ₹8,320 Mn in FY20

• Net cash from Operating Activities in H1FY21 is ₹556 Mn

 Value added products de-grew by 26.0% in H1FY21 as compared to H1FY20, while established products de-grew by 30.9%. The share of value added products is 21.6% of total sales in H1FY21 as against 20.5% in H1FY20. The company’s focus remains to increase the share of value added products in its revenue and improve margins.

Appendix

Company Overview

Key Developments

Financial Highlights

6

H1FY21 Se mental Performance g

==> picture [939 x 369] intentionally omitted <==

----- Start of picture text -----

Polymer Products [ ] Composite Products [] Revenue Share
Revenue (₹ Mn) EBITDA Margins (%) Revenue (₹ Mn) EBITDA Margins (%)
14.2%
14.4%
12.0%
12,262
12.2%
5,125
8,434
3,756
H1 FY20 H1 FY21 H1 FY20 H1 FY21
----- End of picture text -----*

Polymer Products:* HM-HDPE plastic Drums/Jerry Cans and Pails, Polyethylene (PE) pipes, Turf & Mattings, Disposable Bins and MOX Films Composite Products: Intermediate Bulk Containers (IBC), Composite Cylinders, Energy storage devices, Auto Products and Steel Drums.

Note: The Half Year ended September 30, 2020 results are not comparable to the corresponding period of the previous year due to the Covid-19 impact

Appendix

Company Overview

Key Developments

Financial Highlights

7

H1FY21 O erational Hi hli hts p g g

==> picture [686 x 79] intentionally omitted <==

----- Start of picture text -----

|||
|---|---|
|Total capex in H1FY21|₹ 360 Mn.|
|Established Products for capacity expansion, re-engineering and automation|₹ 211 Mn.|
|Value Added Products|₹ 149 Mn.|

----- End of picture text -----

• Capacity utilization: Overall 55% (India: 50%; Overseas: 60%)

Industrial Packaging

• Commenced production in August, 2020 at Iowa, USA (green field), for manufacturing of packaging products i.e. IBC and large sized drums.

• Company is receiving overwhelming response from green field units at Chicago & Houston, USA

• Brownfield expansion in India and overseas locations continue for future growth and leveraging of existing infrastructures

Pipes

• Healthy Order Book continues in our PE Pipe business of ~₹3,000 Mn

• Supply of newly launched new generation multilayer PE pipes for power /communication cable duct with silicon in-lining continues to get overwhelming business. The pipes/ducts have substantial business potential specially in Smart Cities.

Composite Cylinder

• The Company is getting overwhelming response from customers for Composite Cylinder for use in filling of LPG.

• The Company has received in August 2020 coveted approval from Petroleum And Explosives Safety Organization (PESO) and Bureau Veritas for the first time for Indian Cylinder under International Standard ISO:11119-3:2013 as applicable for manufacturing of Fully Wrapped Carbon Fibre Reinforced Type-IV Composite Cylinder for CNG Cascades. This highly technical product has huge business potential and has been developed by Company’s R&D Team in last 3 years. Company has received order inquires and is in talks with various gas distribution companies.

MOX

• Company innovating new applications of the MOX films and is launching new products in the market like Truck covers, Pond Liners, Mulching Film & Poly house Films.

• Continued focus on export markets of Thailand, Malaysia, Germany, UK & USA

Appendix

Company Overview

Key Developments

Financial Highlights

8

Time Techno last p

Business Mix

• Time Technoplast Limited (Time Tech) is a multinational company and one of the leading manufacturer of technology based polymer and composite products

• Strong presence in Asia & MENA regions with presence in 10 different countries outside India

• Has 14+ recognized brands and works with > 900 institutional customers globally

• Well established inhouse R&D team of around 30 people having experience of more than 15 years for upgrading existing and developing futuristic products by using latest processing technology

Established Products Value-Added Products Industrial Packaging Infrastructure Technical & Lifestyle Intermediate Composite MOX Film Polymer Drums, Polyethylene (PE) Pipes, Turf & Matting, Bulk Cylinders (Techpaulin) Disposable Bins, Container Jerry Cans, Energy storage devices Auto Products (IBC) Pails

Marquee Clients

==> picture [37 x 46] intentionally omitted <==

==> picture [40 x 46] intentionally omitted <==

==> picture [42 x 42] intentionally omitted <==

==> picture [45 x 37] intentionally omitted <==

Chemicals

Petrochemicals

Others

Auto

BASF, Huntsman, Bayer, Shell, Indian Oil, Gulf, Ashok Leyland, Tata Cargill, GE, L&T, Nestle, Aditya Birla Chemicals, ExxonMobil, Total, etc. Motors, Eicher Motors, Wipro, LEAP India, Etc. Volvo, Etc. Du Pont, Dow, Eco Lab,

Solvay, Etc.

Company Overview

Appendix

Financial Highlights

Key Developments

9

Product Portfolio

==> picture [946 x 461] intentionally omitted <==

----- Start of picture text -----

Revenue Share – FY20
Drums & Containers Jerry Cans Conipack Pails HDPE Pipes DWC Pipes Energy Storage
Devices
Established
Products
81%
Rain Flaps Fuel Tanks Mats
19%
Value-Added
Products
Composite Cylinders Composite IBCs MOX Films
CNG Type IV Composite Cylinder
DEF (Urea) Tanks CNG Cascade Composite Air Tanks Tech Pack : Smart can
for Vehicles ( On Board Application)
Financial Highlights Key Developments Company Overview Appendix 10
Brand
Product
Brand
Established Products
Product
Brand
Products
Value Added Product
New
Development
----- End of picture text -----

Consolidated Income Statement

==> picture [890 x 396] intentionally omitted <==

----- Start of picture text -----

|||||||
|---|---|---|---|---|---|
|Particulars (₹ Mn)|Q2FY21|Q1FY21|Q2FY20|H1FY21|H1FY20|
|Total Income|7,444|4,755|8,710|12,199|17,395|
|Total Expenses|6,518|4,213|7,496|10,731|14,914|
|EBITDA|926|542|1,214|1,468|2,481|
|EBITDA Margin (%)|12.4%|11.4%|13.9%|12.0%|14.3%|
|Finance Cost (Net)|247|253|280|500|555|
|Depreciation|374|375|398|749|792|
|PBT|304|(86)|536|218|1,134|
|Tax|46|30|136|76|288|
|PAT before Minority Interest|258|(116)|400|142|846|
|Minority Interest|13|1|14|14|23|
|PAT after Minority Interest|245|(117)|386|128|823|
|PAT Margins (%)|3.3%|2.5%|4.4%|1.1%|4.7%|
|EPS (₹)|1.08|(0.52)|1.70|0.56|3.64|

----- End of picture text -----

Note: The Quarter and Half Year ended September 30, 2020 results are not comparable to the corresponding period of the previous year due to the Covid-19 impact

Appendix

Company Overview

Financial Highlights

Key Developments

11

Historical Consolidated Income Statement

	Particulars (₹ Mn) FY20 FY19 FY18
	Total Income 35,803 35,670 31,049
	Total Expenses 30,792 30,403 26,297
	EBITDA 5,011 5,267 4,752
	EBITDA Margin (%) 14.0% 14.8% 15.3%
	Finance Cost(Net) 1,082 986 875
	Depreciation 1,562 1,461 1,372
	PBT 2,367 2,820 2,505
	Tax 617 735 652
	PAT before Minority Interest 1,750 2,085 1,853
	Minority Interest 59 58 49
	PAT after Minority Interest 1,691 2,027 1,804
	PAT Margins (%) 4.7% 5.7% 5.8%
	Basic & Diluted EPS [₹] 7.48 8.96 7.98
	Financial Highlights Key Developments Company Overview Appendix 1

12

Historical Consolidated Balance sheet

Particulars (₹ Mn) H1FY21 FY20 FY19 Equity & Liabilities Shareholder's Funds Share Capital 226 226 226 Other Equity 17,832 17,925 16,466 Total Shareholder's Fund 18,058 18,151 16,692 Minority Interest 536 521 463 Non-Current Liabilities Long-Term Borrowings 2,743 3,315 3,183 Lease Liabilities* 552 581 Deferred Tax Liabilities (Net) 811 792 730 Total Non Current Liabilities 4,106 4,688 3,913 Current Liabilities Short-Term Borrowings 4,463 4,309 4,231 Trade Payables 4,017 4,435 4,749 Other Financial Liabilities 1,036 776 991 Other Current Liabilities 462 350 452 Short-Term Provisions 107 106 92 Current Tax Liabilities 61 307 415 Total Current Liabilities 10,146 10,283 10,930 TOTAL - EQUITY AND LIABILITIES 32,846 33,643 31,998**	Particulars (₹ Mn) H1FY21 FY20 FY19
	ASSETS
	Non-Current Assets
	Fixed Assets
	Property, Plant & Equipment 12,559 12,857 12,785
	Intangible Assets 3 4 6
	Capital Work-in-Progress 768 805 983
	Right-to-Use Assets* 580 633
	Others Financial Assets/Long Term Loans & Advances 300 294 274
	Total Non Current Assets 14,210 14,593 14,048
	Inventories 7,387 7,577 7,373
	Trade Receivables 8,098 8,207 7,842
	Cash and Cash Equivalents & Bank Balance 835 825 666
	Other Advances 1414 1,463 788
	Other Current Assets 902 978 1,281
	Total Current Assets 18,636 19,050 17,950
	TOTAL - ASSETS 32,846 33,643 31,998

* Assets and liablities created in compliance of IND AS – 116 effective from 1[st ] April, 2019 for long term properties (offices and factories) taken on rental basis.

Appendix

Company Overview

Financial Highlights

Key Developments

13

Ca ital Market Information p

==> picture [896 x 273] intentionally omitted <==

----- Start of picture text -----

Public
Marquee Investors as on 30 [th] September 2020 (% of Total Equity)
16%
NT Asian Discovery Fund 15.0
10%
HDFC Trustee 9.0
Mutual
Promoter 51%
Funds
Kapitalforeningen Investin Pro - Dalton 3.8
23%
Grandeur Peak 2.4
FIIs and Foreign
Total Shareholders > 38,000 Companies
----- End of picture text -----

Key Developments Company Overview Appendix

Financial Highlights

14

==> picture [292 x 90] intentionally omitted <==

For further information, please contact: Mr. Digvijay Singh Rathore Mr. Siddesh Chawan Manager – Investor Relations Christensen IR +91 22 7111 9648 +91 22 4215 0210 digvijay.rathore@timetechnoplast.com schawan@christensenir.com

© 2020 Time Technoplast Limited, All Rights Reserved.

“Time Technoplast” and The Time Technoplast Logo are trademarks of Time Technoplast Limited. In addition to Company data, data from market research agencies, Stock Exchanges and industry publications has been used for this presentation. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.

15