Time Technoplast Limited — Investor Presentation 2019

Nov 14, 2019

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Earnings Presentation – H1 / Q2-FY20

Executive Summary

• Time Technoplast Ltd. (TimeTech) is a Multinational conglomerate and one of the leading manufacturers of diversified range of polymer based products.

Overview

• Since its inception in 1992, the company has set itself apart from its competition by focusing on research and development, futuristic product design and superior customerservice.

• The company has a strong presence in Asia & MENA regions with state-of-the-art manufacturing facilities in 11 countries.

• Company got listed on NSE & BSE in 2007, having a market capitalization of approximately INR 13,490 Mn as on 30th September, 2019.

• • Established Products- • Industrial Packaging – HM-HDPE plastic Drums/Jerry Cans and Pails

• Business • Infrastructure – Polyethylene (PE) pipes, Energy storage devices

• Mix

• Technical & Lifestyle – Turf & Matting , Disposable Bins, Auto Products

• • Value Added Products : Intermediate Bulk Container (IBC), Composite Cylinders, MOX Film (Techpaulin) • Chemicals – BASF, Huntsman, Bayer, Aditya Birla Chemicals, Du Pont, Dow, Eco Lab, Solvay,Etc.

• Marquee • Petrochemicals – Shell, Indian Oil, Gulf, ExxonMobil, Total, etc. Clients • Auto : Ashok Leyland, Tata Motors, Eicher Motors, Volvo, Etc. • Others – Cargill, GE, L&T, Nestle, Wipro, LEAP India,Etc.

• FY19 • TotalIncome – INR 35,670 Mn

• Financial • EBITDA - INR 5,267 Mn

• Highlights • PAT - INR 2,027Mn

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Time Techno at a Glance

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Largest producer of large size plasticdrums worldwide

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Market leader in 8 out of 11 countries

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3
3rd largest
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IntermediateBulk Container (IBC) manufacturer worldwide

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2 1
2nd largest
Largest
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2nd largest
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Composite Cylinder Range ofcomposite manufacturer cylinderworldwide worldwide

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FY19
Total Income
FY19 FY19
INR 35,670 Mn
EBITDA PAT
YoY – 15%
INR 5,267 Mn INR 2,027 Mn
YoY – 11% YoY – 12%
10 YearCAGR
16%
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900 +
14 +
Institutional 3,600 +
Recognized
customers Employees
Brands
globally
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. Our Motto is “Bringing Polymers to Life”, through Innovation & Technology

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Product Portfolio

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Drums & Containers Jerry Cans ConipackPails Mats
DWC Pipes HDPE Pipes DisposalBins EnergyStorage
Devices
Fuel Tanks Rain Flaps MaterialHandling DuroGel
CompositeCylinders CompositeIBCs MOX Films
EstablishedProducts EstablishedBrands
Value Added Products
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Q2-FY20 Key Financial Highlights (Consolidated)

Particulars (INR Mn)	Q2-FY20	Q2-FY19	Y-o-Y Growth
Total Income	8,710	8,277	5.2%
EBITDA	1,214	1,077	12.7%
EBITDA Margins	13.94%	13.02%	92 Bps
PAT	386	316	22.1%
PATMargins	4.43%	3.82%	61 Bps
Cash Profit	798	726	9.9%
Volume Growth			11%

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H1-FY20 Key Financial Highlights (Consolidated)

Particulars (INR Mn)	H1-FY20	H1-FY19	Y-o-Y Growth
Total Income	17,395	16,096	8.1%
EBITDA	2,481	2,287	8.5%
EBITDA Margins	14.26%	14.21%	5 Bps
PAT	823	749	9.9%
PAT Margins	4.73%	4.65%	8 Bps
Cash Profit	1,638	1,559	5.1%
Volume Growth			12%

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H1-FY20 Financial Highlights

• Revenue growth achieved: 8% (India – 8%; Overseas– 7%)

• Volume growth achieved: 12% (India – 13%; Overseas– 12%)

• India & Overseas Revenue: H1-FY20 - 69% : 31% (H1-FY19 - 69% : 31%)

• India & Overseas EBITDA margins H1-FY20: India 14.36%; Overseas 14.04%

• Net Margin (PAT): India 4.42%; Overseas 5.44%. Margins are higher in Overseas due to lower tax rate.

• Effective Tax Rate: 25.35% (India 28.71%; Overseas 17.95%)

• Total Debt as of H1-FY20 is at INR 8,453 Mn as against INR 8,399 Mn in FY19

• Net cash from Operating Activities in H1-FY20 is INR 694 Mn

• The value added products grew by 12% in H1-FY20 as compared to the H1-FY19. The share of value added products is 21% of the total sales in H1-FY20 as against 20% in Q1-FY19. The company’s focus remains to increase the share of value added products in its revenue.

• Pursuant to the Taxation Law ( Amendment) Ordinance, 2019 issued by Ministry of Law and Justice which is effective from 1st April 2019, domestic companies have the option to pay corporate income tax rate at 22% plus applicable surcharge and cess (new tax rate) subject to certain condition. The company has made an assessment of the impact of the Ordinance and decided to continue with the existing tax structure until utilization of accumulated minimum alternative tax (MAT) credit

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H1-FY20 Operational Highlights

• Capacity utilization: Overall 81% (India – 84%; Overseas – 74%)

• Total capex in H1-FY20:

Established Products for capacity expansion, re-engineering andautomation:

Value Added Products:

INR 640 Mn INR 416 Mn INR 224 Mn

Pipes

• Healthy Order Book continues in our PE Pipe business of ~INR 3,250 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 SmartCities.

Industrial Packaging

• Completed Greenfield project for manufacturing of IBC Bottle in Chicago & Houston, USA and commenced Commercial Sale for which we are receiving overwhelming response.

• Project of Greenfield manufacturing facility at Malur near Bengaluru, India for manufacturing of packaging product is completed and production started in Q1 of FY20.

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

MOX

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

• Focusing on new export markets i.e. Thailand, Malaysia, Germany, UK & USA

Turf & Matting

• Launched new range of next Generation Matting products i.e. Duro Gel & Duro Comfort.

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Polymer and Composite Products

Polymer Products* Revenue (INR Mn) & EBITDA Margins(%)

Composite Products Revenue (INR Mn) & EBITDA Margins(%)**

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14.21%
14.12%
H1-FY19 H1-FY20
11,349 12,262
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5,500 14.39%
5,000
14.44%
4,500
4,000
3,500
3,000
2,500
2,000
1,500
H1-FY19 H1-FY20
8,9924,740 5,125
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Revenue Share –H1-FY19

Revenue Share – H1-FY20

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Composite
Products,
29.46%
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Polymer
Products,
70.54%
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Composite
Products,
29.48%
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Polymer
Products,
70.52%
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*Polymer Products – HM-HDPE plastic Drums/Jerry Cans and Pails, Polyethylene (PE) pipes, Turf & Mattings, Disposable Bins and MOXFilms

**Composite Products: Intermediate Bulk Containers (IBC), Composite Cylinders, Energy storage devices, Auto Products and Steel Drums.

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Consolidated Quarterly Income Statement

Particulars (INR Mn)	Q2-FY20	Q2-FY19	Y-o-Y
Total Income	8,710	8,277	5.2%
Total Expenses	7,496	7,200
EBITDA	1,214	1,077	12.7%
EBITDA Margin (%)	13.94%	13.02%	92 Bps
Finance Cost (Net)	280	239
Depreciation	398	397
PBT	536	441	21.5%
Tax	136	112
PAT before Minority Interest	400	329
Minority Interest	14	13
PAT after Minority Interest	386	316	22.1%
PAT Margins (%)	4.43%	3.82%	61 Bps
EPS (INR)	1.70	1.40

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Consolidated Half Yearly Income Statement

Particulars (INR Mn)	H1-FY20	H1-FY19	Y-o-Y
Total Income	17,395	16,096	8.1%
Total Expenses	14,914	13,809
EBITDA	2,481	2,287	8.5%
EBITDA Margin (%)	14.26%	14.21%	5 Bps
Finance Cost (Net)	555	466
Depreciation	792	790
PBT	1,134	1,031	10.0%
Tax	288	262
PAT before Minority Interest	846	769
Minority Interest	23	20
PAT after Minority Interest	823	749	9.9%
PAT Margins (%)	4.73%	4.65%	8 Bps
EPS (INR)	3.64	3.31

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Historical Consolidated Income Statement

Particulars (INR Mn)	FY17	FY18	FY19
Total Income	27,568	31,049	35,670
Total Expenses	23,504	26,297	30,403
EBITDA	4,064	4,752	5,267
EBITDA Margin (%)	14.74%	15.30%	14.77%
Finance Cost(Net)	901	875	986
Depreciation	1,155	1,372	1,461
PBT	2,008	2,505	2,820
Tax	494	652	735
PAT before Minority Interest	1,514	1,853	2,085
Minority Interest	43	49	58
PATafter Minority Interest	1,471	1,804	2,027
PAT Margins (%)	5.33%	5.81%	5.68%
Basic & Diluted EPS [INR]	6.90	7.98	8.96

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Consolidated Balance Sheet

Particulars (INR Mn)	FY18	FY19	H1-FY20
Equity & Liabilities
Shareholder's Funds
Share Capital	226	226	226
Other Equity	14,605	16,466	17,046
Total Shareholder's Fund	14,831	**16,692 **	17,272
Minority Interest	405	463	485
Non-Current Liabilities
Long-Term Borrowings	3,302	3,183	3,376
Lease Liabilities*			383
Deferred Tax Liabilities(Net)	581	730	781
Total Non Current Liabilities	3,883	3,913	4,540
CurrentLiabilities
Short-Term Borrowings	3,549	4,231	4,101
Trade Payables	4,370	4,749	3,991
Other Financial Liabilities	925	991	1,022
Other Current Liabilities	419	452	539
Short-Term Provisions	83	92	102
Current TaxLiabilities	454	415	272
Total CurrentLiabilities	9,800	10,930	10,027
TOTAL - EQUITY AND LIABILITIES	28,919	31,998	32,324

Particulars (INR Mn)	FY18	FY19	H1-FY20
ASSETS
Non-Current Assets
Fixed Assets
Property,Plant & Equipment	11,991	12,785	12,562
Intangible Assets	6	6	4
Capital Work-in-Progress	941	983	1015
Right-of-Use Assets*			426
Others Financial Assets / Long Term Loans &Advances	220	274	287
Total Non Current Assets	13,158	14,048	14,294
Inventories	6,409	7,373	7,276
Trade Receivables	6,703	7,842	7,743
Cash and Cash Equivalents & BankBalance	740	666	774
Other Advances	771	788	963
Other Current Assets	1,138	1,281	1,274
Total CurrentAssets	15,761	17,950	18,030
TOTAL - ASSETS	28,919	31,998	32,324

*The Company has adopted Ind As 116 "Leases" effective 1st April 2019, using modified retrospective method of transition.

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Consolidated Financials Highlights

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Total Income (INR Mn)
FY17 FY18 FY19
27,568 31,049 35,670
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6,000 EBITDA (INR Mn)
5,000
4,000
3,000
2,000
1,000
-
FY17 FY18 FY19 FY17 FY18 FY19
Total Debt To Equity (X) 10.00 EPS (INR)
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
-
FY17 FY18 FY19 FY17 FY18 FY19
27,568 31,049 35,670 4,064 4,752 5,267
0.54 0.52 0.50
6.90 7.98 8.96
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PAT (INR Mn)
FY17 FY18 FY19
1,471 1,804 2,027
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ROCE %
FY17 FY18 FY19
14.68% 15.71% 15.97%
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Capital Market Information

Price Data As Per BSE (30thSeptember, 2019)
Face Value (INR)	1.0
Market Price (INR)	59.7
52 Week H/L (INR)	134.9/55.0
Market Cap (INR Mn)	13490.0
Equity Shares Outstanding (Mn)	226.1
1 Year Avg. trading volume ('000)	212.2

Shareholding Pattern as on 30[th] September,2019

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Public 10%
Mutual
Funds 11%
FII & Foreign
Co. 28%
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Promoter
51%
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Marquee Investors as on 30th September, 2019	(% of Total Equity)
NT ASIAN DISCOVERYFUND	14.9
HDFC TRUSTEE	9.0
KAPITAL FORENINGEN INVESTIN PRO, (DALTON )	3.8
GRANDEUR PEAK	3.6
RELIANCE CAPITAL TRUSTEE CO. LTD. – A/C RELIANCE TAX SAVER (ELSS) FUND	1.5

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Disclaimer

Time TechnoplastLtd.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Time Technoplast Ltd. ( “ Company ” or “ TimeTech ” ), which are expressed in good faith and in their opinion reasonable, including those relating to the Company ’ s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results ’ to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemptionfrom registrationtherefrom.

This presentationis confidentialand may not be copiedor disseminated,in whole or in part, and in any manner.

Valorem AdvisorsDisclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonablenessof the contentsof this Presentation.This Presentationmay not be all inclusiveand may not containall of the informationthat you may considermaterial.Any liabilityin respect of the contentsof, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company underreview.

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For furtherdetailspleasecontactour InvestorRelationsRepresentatives: VALOREMADVISORS AnujSonpal Tel: +91-22-4903-9500 Email: time@valoremadvisors.com

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THANK YOU