Time Technoplast Limited — Investor Presentation 2020

Jun 29, 2020

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Earnings Presentation

FY20/ Q4-FY20 June 2020

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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

Time Techno at a Glance

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Revenues by Product Category (FY20)
FY20 Financial Highlights
REVENUES EBITDA PAT
₹35,803Mn ₹5,011 Mn ₹1,691Mn
0.4 [% ] (4.9) [% ] (16.6) [% ]
3%
Worldwide Ranking
Packaging
4% Batteries Plastic Drums,
Jerry cans,
Pails
5%
Largest 2 [nd] Largest 3 [rd] Largest
60%
Large size Plastic Drums Composite Cylinder Intermediate Bulk Container
9%
manufacturer manufacturer (IBC) manufacturer
Geographic Revenue Breakup (FY20)
Includes all Products Packaging Products Consistent dividend paying company
71% 29%
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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

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 Chemicals Petrochemicals Auto Others 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.

• 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

Marquee Clients

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

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Product Portfolio

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Revenue Share – FY20
Drums & Containers Jerry Cans Conipack Pails HDPE Pipes DWC Pipes Energy Storage
Devices
Established
Products
Rain Flaps Fuel Tanks Mats 81%
19%
Value-Added
Composite Composite MOX Products
Cylinders IBCs
Films
Brand
Product
Brand
Established Products
Product
Brand
Product
Value-Added Products
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Q4-FY20 Key Financial Highlights (Consolidated)

Particulars (INR Mn)	Q4-FY20	Q4-FY19	Y-o-Y Growth
Total Income	9,171	10,844	(15.4) %
EBITDA	1,191	1,720	(30.8) %
EBITDA Margins(%)	12.99%	15.86%	(287) Bps
PAT	383	737	(48.0) %
PAT Margins(%)	4.18%	6.79%	(261) Bps
Cash Profit	773	1,142	(32.3) %
Volume Growth			(11) %

Note:

There is a shortfall in revenues and margin in Q4-FY20 due to lockdown on account of Covid-19 in India and Overseas

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FY20 Key Financial Highlights (Consolidated)

Particulars (INR Mn)	FY20	FY19	Y-o-Y Growth
Total Income	35,803	35,670	0.4 %
EBITDA	5,011	5,267	(4.9) %
EBITDA Margins(%)	14.00%	14.77%	(77) Bps
PAT	1,691	2,027	(16.6) %
PAT Margins(%)	4.72%	5.68%	(96) Bps
Cash Profit	3,312	3,546	(6.6) %
Volume Growth			4 %

Notes:

• 1) There is a shortfall in revenues and margin in Q4-FY20 due to lockdown on account of Covid-19 in India and Overseas

2) The Board of Directors have recommended dividend of 95% i.e. Rs 0.95 (P.Y. Rs 0.90) per equity share of Rs 1/- each of the Company for the year ended 31[st] March, 2020, subject to approval of Shareholders

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FY20 Hi hli hts g g

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Revenue Share- FY20
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0.4 [% ] (4.9) [% ]
35,670 35,803 5,267 5,011
YoY Growth
YoY Growth
FY19 FY20 FY19 FY20
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Value
Added
Products
19%
Established
Products
81%
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• Revenue growth achieved: 0.4 % (India: (0.2)%; Overseas: 2%)

• Volume growth achieved: 4% (India: 4%; Overseas: 5%)

• In FY20 India contributed 71% and Overseas contributed 29% towards total revenue

• The value added products grew by 3% in FY20 as compared to the FY19. The share of value added products is 19.10% of the total sales in FY20 as against

18.6% in FY19. The company’s focus remains to increase the share of value added products in its revenue and improve margins.

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FY20 O erational Hi hli hts p g g

• Capacity utilization: Overall 80% (India – 82%; Overseas – 75%)

• Total capex in FY20:

INR 1,454 Mn

Established Products for capacity expansion, re-engineering and automation: INR 944 Mn

Value Added Products:

INR 510 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 Smart Cities.

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.

• Greenfield expansion at Iowa, USA is under progress and to be completed by Q2-FY21

• 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

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Pol mer and Com osite Products y p

Polymer Products[* ]

Composite Products[]**

Revenue Share

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0.34 [% ] 0.46 [% ]
25,388 10,367
25,303 10,415
YoY Growth YoY Growth
EBITDA EBITDA
14.65% EBITDA 15.05% EBITDA
13.88% 14.27%
FY19 FY20 FY19 FY20
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Revenue Share- FY19
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Composite
Products,
29.06%
Polymer
Products,
70.94%
Revenue Share- FY20
Composite
Products,
29.09%
Polymer
Products,
70.91%
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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

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Consolidated Financials Hi hli hts g g

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Total Income (₹ Mn) EBITDA (₹ Mn) PAT (₹ Mn)
35,670 35,803 5,267
5,011 2,027
4,752
1,804
1,691
31,049
FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20
Total Debt To Equity (X) EPS (₹) ROCE %
0.52 8.96 15.7% 16.0%
7.98
7.46 13.4%
0.50
0.46
FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20
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Historical Consolidated Income Statement

Particulars (INR 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 (%)	14.00%	14.77%	15.30%
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 (%)	4.72%	5.68%	5.81%
Basic & Diluted EPS [INR]	7.46	8.96	7.98

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Consolidated Balance Sheet

Particulars (INR Mn) FY20 FY19	Particulars (INR Mn) FY20 FY19
Equity & Liabilities	ASSETS
Shareholder's Funds
Share Capital 226 226	Non-Current Assets
Other Equity 17,925 16,466	Fixed Assets
Total Shareholder's Fund 18,151 16,692	Property, Plant & Equipment 12,857 12,785
Minority Interest 521 463	Intangible Assets 4 6
Non-Current Liabilities	Capital Work-in-Progress 805 983
Long-Term Borrowings 3,315 3,183	Right-to-Use Assets* 633
Lease Liabilities* 581	Others Financial Assets/LongTerm Loans & Advances 294 274
Deferred Tax Liabilities (Net) 792 730
Total Non Current Liabilities 4,688 3,913	Total Non Current Assets 14,593 14,048
Current Liabilities
Short-Term Borrowings 4,309 4,231	Inventories 7,577 7,373
Trade Payables 4,435 4,749	Trade Receivables 8,207 7,842
Other Financial Liabilities 776 991	Cash and Cash Equivalents & Bank Balance 825 666
Other Current Liabilities 350 452	Other Advances 1,677 788
Short-Term Provisions 106 92	Other Current Assets 764 1,281
Current Tax Liabilities 307 415	Total Current Assets 19,050 17,950
Total Current Liabilities 10,283 10,930
TOTAL - EQUITY AND LIABILITIES 33,643 31,998	TOTAL - ASSETS 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.

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Ca ital Market Information p

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Marquee Investors as on 31 [st] March, 2020 (% of Total Equity)
Public
NT Asian Discovery Fund 15.1
13% Mutual Funds
HDFC Trustee 9.0
11%
Promoter 51%
Kapitalforeningen Investin Pro - Dalton 3.8
25%
Grandeur Peak 3.6
FIIs. & Foreign
Companies
Reliance Capital Trustee Co. Ltd.
1.1
A/c Reliance Tax Saver (ELSS) Fund
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Total Shareholders > 30,000

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For further information, please contact: Mr. Hemant Soni Mr. Anuj Sonpal Head- Legal & Company Secretary Valorem Advisors +91 22 7111 9294 +91 22 4903 9500 hemant.soni@timetechnoplast.com time@valoremadvisors.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.

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