COSMO FIRST LIMITED

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CFL/SE/2023-24/May/12 The Manager (Listing) BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400 001 Scrip Code: 508814 May 30, 2023 The Manager (Listing) National

62%

y label films Unique Proposition  Uniquely positioned with good mix of specialty/semi specialty (62% volume FY’23) and commodity films.  Globally among top four players in BOPP World’s largest s

2.5Lakh

een energy at plants, waste reduction, water treatment etc  Social: Education to 20k+ students, 2.5Lakh lives touched in the fight against COVID-19  Governance: Strong Independent board with 66% of

66%

.5Lakh lives touched in the fight against COVID-19  Governance: Strong Independent board with 66% of Independent Directors Company Overview - Our Businesses Speciality films focused business wit

80%

irectors Company Overview - Our Businesses Speciality films focused business with target to sell 80% BOPP based volume of speciality films by FY25 (FY23 62%) Verticals: Masterbatch (From FY22) Co

25%

is D2C, Digital First Omni Channel platform for Pets (Petcare is high growth Industry growing at 25% CAGR) Company Overview - Key Milestones ►Established in 1981, Cosmo Films Ltd.is the pioneer of

13%

 Expanding Speciality & Semi-Speciality films portfolio (high margin category) (FY23 62% volume; 13% CAGR over last 4 years).  Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 1

120%

% CAGR over last 4 years).  Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 100% 80% 60% 40% 20% 0% 38% 62% FY19 Commodity Volume 43% 57% FY20 52% 48% FY21 Spe

100%

over last 4 years).  Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 100% 80% 60% 40% 20% 0% 38% 62% FY19 Commodity Volume 43% 57% FY20 52% 48% FY21 Specialit

60%

4 years).  Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 100% 80% 60% 40% 20% 0% 38% 62% FY19 Commodity Volume 43% 57% FY20 52% 48% FY21 Speciality & Semi-S

40%

rs).  Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 100% 80% 60% 40% 20% 0% 38% 62% FY19 Commodity Volume 43% 57% FY20 52% 48% FY21 Speciality & Semi-Specia

20%

 Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 100% 80% 60% 40% 20% 0% 38% 62% FY19 Commodity Volume 43% 57% FY20 52% 48% FY21 Speciality & Semi-Speciality

“ Target 80%+ volume from Speciality & Semi Speciality segment by 2025.”

“ A Company with diversified businesses with target 20% CAGR topline growth in next 3 years coupled with commensurate return growth  Potential high Growth Engines include Speciality Films, Speciality Chemicals and a digital first, D2C Petcare business  Speciality Films:  Expanding Speciality portfolio (62% Volume; 13% annual growth in last 4 years).”

“Expansion expected in next one year  Coating Chemicals – scale up in coming years  Complimentary Adhesive business for Packaging, Lamination and Labels – FY24  Target 25%+ ROCE business  Petcare:  Untapped Industry growing @ 25%+  D2C Digital first Omni-channel presence in Products & Services  Monthly GMV Rs 2 crore with 15 experience centers & online presence – Target 100+ experience centers in next a couple of years.”

“ Plan to demerge Petcare vertical into separate company in medium term.”

“Capex Project 1 2 3 BOPP Line (World’s Largest Line) CPP Films Line (World’s Largest Line) Value add assets for Specialized BOPET line Total Estimated Capex (INR Crs) 350 140 100 590* Annual Capacity (MT) 67,000 25,000 Estimated Commercial Production by H1’FY 2026 H1’FY 2025 FY 2024 *Out of above capex about Rs 100 crores already done in March 2023 balance sheet”

“ Sustainable solutions  Future Pipeline:  Direct Thermal Printable Film (first BOPP film producer to launch)  Sustainable PVC free solutions for graphic applications  Heat reduction films and Shrink Label film  Heat Control Film:  Global Market size US$ 10 billion and expected to grow at 5% CAGR  Increasing demand for films in the building and construction industry is expected to grow of the market.”

“ Target to reach 7%-8% of Company's consolidated revenue in 3-5 years from masterbatches with 25% ROCE BUSINESS OVERVIEW D2C PETCARE UNDER BRAND “ZIGLY” Rs 12500 Cr Indian Petcare Market 25% Rs 5100 Cr 19% Rs 3000 Cr Pet penetration in developed markets like US & UK is more then 68% and growing.”

Verticals

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Notes

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Films Business

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Other Businesses

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Verticals

Masterbatch (From FY22) Coating Chemicals (From FY22) Adhesive (From FY24) Zigly is D2C, Digital First Omni Channel platform for Pets (Petcare is high growth Industry growing at 25% CAGR) Company Overview - Key Milestones ►Established in 1981, Cosmo Films Ltd.is the pioneer of BOPP Films Industry in India; ►Today leading Specialty film player globally and leading BOPP player in India ►3rd and 4th extrusion coating line; ►1st coating line; ►Gas based electricity generation unit 2006 ►2016: CPP line-1 ►2017: 10th BOPP line ►Petcare ►Speciality Chemicals 2022 2016-17 ►2012: 2nd coating line ►2013: 9th BOPP line ►2014: 3rd coating line 2012-14 ►2010: 2nd metallizer line ►2011: Korea plant 2010-11 2023 ►Re-branded to Cosmo First Limited ►Specialized BOPET Line 2021 2018-20 ►2018: CPP line-2 ►2020: 6th coating line Masterbatch Line-1 2015 ►4th and 5th coating line; 3rd metallizer line; Upgradation of US plant ►1996: 3rd BOPP line ►2001: 4th BOPP line 1996-01 1981-88 ►1981: 1st BOPP line ►

Notes

1) Specialty sales has been stagnant in FY23 from FY22 mainly due to supply chain issues and geo-political crisis in some export markets 2) Margins denote per/kg contribution for respective films categories. MARCH 2023 YEAR & QUARTER RESULTS UPDATE March 2023 Quarter - Performance Snapshot Audited Q4 FY 22-23 Unaudited Q3 FY 22-23 INR Cr Audited Q4 FY 21-22 Particulars Standalone 601 61 10% 25 21 80 Consolidated 712 74 10% 35 32 91 Consolidated 730 Net Sales 86 EBITDA 12% EBITDA % 49 PBT 46 PAT EPS* 119 * EPS is calculated on the TTM basis after adjusting for Bonus issue in June’22 and buyback . Management Commentary  During Q4, commodity films margins both BOPP and BOPET suffered a further decline severely impairing the profitability of the industry. Cosmo with over two third of its revenue coming from speciality films could withstand the margin pressure and outperformed the industry once again. Consolidated 821 165 20% 135 108 148 Standalone 625 75 12% 40 36 106 Standalone 730 146 2

Films Business

S.No. Capex Project 1 2 3 BOPP Line (World’s Largest Line) CPP Films Line (World’s Largest Line) Value add assets for Specialized BOPET line Total Estimated Capex (INR Crs) 350 140 100 590* Annual Capacity (MT) 67,000 25,000 Estimated Commercial Production by H1’FY 2026 H1’FY 2025 FY 2024 *Out of above capex about Rs 100 crores already done in March 2023 balance sheet

Other Businesses

 Specialized Chemicals (scaling up in coming years) – Estimated INR 50 Cr Capex in next 3 years.  D2C Pet Care businesses (15 nos. of experience centers at March 2023 – plan to significantly increase to 100+ in a couple of years beside online business) BUSINESS OVERVIEW “FILMS BUSINESS” Films Business-India Industry Dynamics & Capex Strategy Data Source: AMI/PCI/Other Independent Research and Industry Sources Films Business - Speciality Films Product Portfolio PACKAGING FILMS LAMINATION FILMS LABEL FILMS INDUSTRIAL FILMS o Print & Pouching Films o Tape & Textile Films o Barrier Films o Overwrap Films o Heat resistant Film o Thermal Lamination & Wet o Pressure Sensitive Label Lamination o Special Application Lamination Films o Premium Lamination Films stock films o Direct Thermal Printable films o In-mould films o Wrap Around label films o Synthetic paper o Cable Overwrap o Other Specialized Film Films highlighted above in red color are Specialty Films, while with blue color include b