TCPLPACKNSE1 July 2021

TCPL Packaging Limited has informed the Exchange about Investor Presentation

TCPL Packaging Limited

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01.07.2021

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:- Investors Presentation

Enclosed is copy of presentation for Investors. The same is also placed on the website of the Company.

Kindly take the same on your records in the interest of general public at large.

Thanking You

For TCPL Packaging Limited

Compliance Officer

Encl. As above

July 2021

Such

several

involve

forward-looking statements

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

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

YEARS

906

(RS. CRORE)

17.7%

~1,900

Of proving an array of packaging solutions

Revenue (FY21)

Cash Profit* (FY21)

15 years Revenue CAGR (FY07 to FY21)

Manufacturing units

Employees (FY21)

*Note – Calculation for Cash Profit = PBT + Depreciation

To be the most admired Indian packaging Company with an objective to:

Maintain and acquire customers and contribute to their success

To drive long term

profitable growth

Get it right the first

time every time

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 all- round quality assurance

Revenue Mix (FY21)

~85%

~15%

Folding Cartons

Flexible Packaging

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

Offers wide-range of innovative, sustainable & unique packaging solutions

Well-positioned to support diverse customer requirements with PAN India presence and network

MONOCARTONS

SPECIALTY & GIFT PACKAGING

SHELF READY PACKS

FOOD & BEVERAGES PACKAGING

PHARMA PACKAGING

Innovative player providing versatile and sustainable solutions to customers across industry verticals

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

POUCHES

SHRINK SLEEVES

WRAP AROUND LABELS

LAMINATES

TIPPING PAPER

BUNDLE PAPER, INNER FRAMES & SOFT PACKS

Branched into sheetfed offset printing

Added Third Gravure Packaging line

First machine begins production at Silvassa

Started Haridwar Factory

Started Guwahati Factory

Crossed $100m Turnover

Incorporated TCPL Innofilms Private Limited

1990

1997

2001

2003

2005

2008

2010

2012

2015

2016

2018

2019

2021

First Indian Packaging company to receive ISO 9002 certification

Crossed Rs 100 crore (Rs 1 Bn) turnover

Ventured into Flexible Packaging

First Indian packaging company to receive ISO 9001-2008 & ISO 22000 certification

Started Goa Factory

Started 2nd plant in Haridwar

Inaugurated Greenfield unit in Goa

Developing creative solutions by a dedicated team with proven capabilities

Equipped with latest state-of- the-art machines

Several technical collaborations to ensure efficiency & productivity

Operates multiple manufacturing units

Vast market network across India and Oversees

Consistent investment in sustainable packaging solutions

Long-term connect with marquee clients spanning over 31 years

Deep-rooted Relationships

Innovative Products

Advanced Technology

Wide-spread Presence

Sustainability

Long term relationships with several customers

spanning over 31 years

100+ customers ranging across large domestic

& global corporates

Delivers innovative & sustainable packaging

solutions to customers across various industry

verticals such as FMCG, Food & Beverages,

Pharmaceuticals, Liquor & Tobacco

Partners with customers to develop reliable

high-quality products

100+

50+

Folding Cartons Customers

Flexible Packaging Customers

“Deep partnerships with a diverse customer base, built upon a portfolio of sustainable & quality products”

Liquor

Agrochemical, Pharma & Others

FMCG

Tobacco

“Enables leading companies across industries identify the right packaging solutions”

Food & Beverages

Customization

Delivers Specialized Packaging Solution

Expert Interventions

Well equipped with advanced software

Exclusive technical collaborations

“Committed to developing best-in-class, high-quality, and cutting-edge packaging solutions”

SPECIALITY INKS

SPECIALISED LENS EFFECT

SECURITY FEATURES – PRINTING, EMBELLISHMENT & CODING

Hidden Text/ Images

Anti-copy feature

Micro Text

SPECIALTY COATINGS

SUSTAINABLE ALTERNATIVE TO PLASTIC

Random alphanumeric coding

QR code

Auto paste barcodes /scratch & read tags

Hologram pasting

Micro - embossing

Appealing Print Finish

Valentina

- matt/gloss Lux embossing, combination, double pass stamping. Glued with hot melt on PE coated board

foil

Lens

Afxigra – Carton 3D hologram lens registered to +/- 0.1mm accuracy

Biodegradable Packaging

Hidden Images, Texture UV, Cast & Cure Holography

–

Antiquity 100% biodegradable pack, printing on transfer metallized board, with soft touch and gloss UV finish

Uno Minda - modified the prevent packaging widespread counterfeiting of their products

Gift Box Printing

Anti-counterfeit Solution

Karmiq gift box – Gift boxes innovated and formed by the TCPL team for Future Consumer Limited

Fair & Handsome Relaunch - Both the carton and flow-wrap laminate were printed with tactile varnish.

Close-to-demand strategy has enabled TCPL to emerge as one of India’s leading sustainable packaging solution providers

Headquartered in Mumbai,

TCPL operates 7 manufacturing

units across 4 locations & has

marketing offices in key metro

cities

Note: Silvasa and Haridwar have 3 & 2 manufacturing units, respectively

*Haridwar

Delhi

*Silvassa

Mumbai

Goa

Bangalore

Guwahati

Kolkata

Production Production

Sales & Business Support

Revenue Break-Up

Exports 22%

Domestic 78%

Export Revenue stood at Rs. 198.9 crore for FY21

“As a ‘Star Export House’, TCPL offers exemplary value to its clients along with world-class quality and service”

Focus on achieving operational excellence by

adopting latest technology and practices

Established best-in-class equipment across facilities

State-of-the-art

laboratories at all plants to ensure

GRAVURE PROCESS

OFFSET PROCESS

high quality

Ink management systems installed as per international

standards

Leveraging latest digital

technology to improve

process control and minimize errors

QUALITY CONTROL PROCESS

FLEXIBLE PACKAGING

Growing global trend towards eco-friendly packaging solutions fueled

considerable growth over the last decade

o Ever increasing end-consumer awareness and demand for eco-

friendly & recyclable offerings

Paperboard is a naturally Renewable, Recyclable and Compostable

material

o TCPL utilizes a mix of virgin (renewable) & recycled paperboard as

raw material

TCPL is continuously working with potential and existing clients to

transition from plastic to paper-based packaging

o Most of the Company’s packaging solutions are 100% Renewable,

Recyclable and Compostable

Considering the plastic waste disposal crisis, there is increasing

pressure on brand owners to use recyclable packaging solutions

To meet this growing demand, TCPL Innofilms Private Limited, a

wholly owned subsidiary of TCPL, is setting up a Poly-ethylene (PE)

blown film line from Reifenhauser (Germany) to produce film to be

used in packaging applications

o Facility is expected to be commissioned in FY2022

Currently, most flexible packaging consists of multiple polymer

usage, which renders it non recyclable

o TCPL aims to use a single polymer and still fulfill all required

parameters, helping the switch to recyclable packaging

Environment friendly product anticipated to garner robust traction

given recent consumer preference for sustainable and recyclable

offerings

Environment

TCPL has framed a policy on Business Responsibility aimed to fulfil its Social, Environmental and Economical responsibilities. It covers procedures relating to environment protection in detail and is available on TCPL’s website: TCPL - Business Responsibility Policy

Invested in roof top solar at two of its facilities at Silvassa – plans to take up similar projects at all units in the future

Majority of the Company’s products are renewable, recyclable, and compostable in nature – limiting the overall carbon footprint

❑ In addition, TCPL is in the process of establishing its own PE film line, which will aid its flexible packaging

division manufacture fully recyclable solutions

Social

Established “TCPL Foundation” to facilitate implementation of CSR activities. A detailed note on the Company’s CSR policy is available on its website: TCPL - CSR Policy

Kanoria Seva Kendra, a charitable trust managed by Chairman K K Kanoria runs Schools & colleges in Rajasthan and also supports Kanoria Centre for Arts & Kanoria Hospital, Research Centre and Centre for Medical Education in Gujarat

Governance

TCPL has laid strong emphasis on ethical corporate citizenship and establishment of good corporate culture. The Company has always believed in adhering to the best governance practices to ensure protection of interests of all stakeholders of TCPL in tandem with healthy growth of the business

❑ The Business Responsibility Policy covers the key principals in detail and is

available on the Company’s website: TCPL - Business Responsibility Policy

K. K. Kanoria Executive Chairman

Saket Kanoria Managing Director

Rishav Kanoria Director

S. G. Nanavati Executive Director

Akshay Kanoria Executive Director

MBA-Finance from George Washington University, USA, supervises and controls the day-to-day activities of the Company

Graduate from University of Pennsylvania, USA and Post-Graduate from Cornell University, NY, USA

Chartered Accountant & Company Secretary, looks after Finance, Legal and General Administration matters

Graduate from Kolkata University with Hons. in Economics and Political Science.

Supervises the day to-day activities of the Company mainly related to policy decisions and financial matters

Graduate from University of Pennsylvania, USA

Supervises the day-to-day activities of the Company & Plants

Assists the MD on various policies / initiatives & strategy of TCPL

Sunil Talati Independent Director

Sudhir Merchant Independent Director

Atul Sud Independent Director

Rabindra Jhunjhunwala Independent Director

Deepa Harris Independent Director

Senior Partner of M/s.Talati & Talati LLP, CA, specialised in Taxation, Auditing & other professional services

Past President of I.C.A.I.

An Industrialist having more than 40 years of experience

Chairman of Encore Natural Polymers Pvt. Ltd.

An IIM Ahmedabad alumnus

Partner at Khaitan & Co, a leading law firm.

He is a senior financial services specialist and businessman entrepreneur

Have over 3 decades of experience in escalating brands to leadership positions at Taj Group

CEO of BrandsWeLove LLP, a firm specialized in branding & marketing consultancy

Scale Improving consolidation in a largely unorganized industry

Pan-India Presence Close-to-demand strategy to drive growth

Sustainable Packaging Solutions Emerging as a major growth opportunity

Partnership with Customers Leverage existing relationship to gain higher wallet share

Investment in New Technologies Leveraging latest technology to expand market opportunity

Diversification Focused approach towards growth through diversification

India is one of the fastest growing consumers of packaging solutions in the world due to growing domestic consumption trends

Paperboard industry is expected to grow at a healthy rate led by significant demand from Consumer, Food & Beverage, Liquor, Agro-Chemicals, Pharma, Retail, among other industries

Reduction in single-use plastic to provide notable impetus to the paperboard-based industry

Shift towards flexible packaging owing to its multi -fold energy & environmental benefits

Some of the key trends include use of biodegradable packaging, invention of smart packaging & next-generation technology

“Multiple tailwinds in the Folding Cartons & Flexible Packaging Industry expected to drive robust growth”

Folding Carton Industry is largely unorganized

2-3

4-5

Many

Flexible Packaging Industry

4-5

Many

Small unorganized

1000+

500+

200+

<200

Revenue (Rs. Crore)

Note – Number of Companies with Rs. 1000+ crore, 500+ crore, 200+crore and <200 crore revenue

FY07 to FY21 - 15-year CAGR: 17.7%

Revenue (Rs. Cr.)

FY07 to FY17 - 10-year CAGR: 19.8%

891.9 906.4

817.1

700.7

613.5

592.6

497.8

394.9

373.3

283.4

240.2

188.5

159.4

100.9

119.7

Till 2017, the Company had reported a robust 10-year CAGR of 19.8%

Challenging external environment owing to demonetization, GST and Covid- 19 pandemic impacted the Company’s topline growth in the previous few years

Normalizing macro-economic environment combined with optimal utilization of capacities commissioned in the past few years should enable the Company to register healthy revenue growth going forward

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

EBITDA (Rs. Cr.)

EBITDA Margin (%)

FY12 to FY21 - 10-year CAGR: 14.8%

14.8%

15.1%

15.7%

16.7%

17.3%

16.3%

12.9%

13.3%

14.7%

15.4%

3 1 4

7 5 5

2 1 6

0 2 8

5 0 0 1

2 7 9

7 7 8

7 5 0 1

1 8 2 1

3 6 3 1

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Cash Profit (Rs. Cr.)

Cash Profit Margin (%)

FY12 to FY21 - 10-year CAGR: 15.1%

10.5%

11.1%

11.2%

13.2%

13.8%

12.6%

9.2%

9.7%

10.4%

11.2%

4 9 2

7 0 4

5 3 4

7 4 6

4 0 8

3 5 7

3 2 6

4 7 7

7 0 9

1 9 9

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Tough macro environment along with venture into Flexible packaging category significantly impacted TCPL's profitability in FY18 and FY19

Historically, the Company’s EBIDTA and Cash Profit margins have remained in a steady range

On the back of healthy contribution from the Flexible packaging division and normalizing demand scenario, TCPL anticipates achieving higher profitability going ahead

Note – Calculation for Cash Profit = PBT + Depreciation

Net Debt to Equity

1.87

1.93

1.79

1.53

1.58

1.66

1.31

1.3

1.26

1.08

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Capital Expenditure (Rs. Cr.)

Capex (As a % of Revenue)

19.4%

18.5%

13.4%

11.7%

11.8%

8.5%

9.7%

2 6 3

9 4 5

4 6 4

6 6 6

7 9 7

4 3 1 1

4.0%

2 8 2

0 6 9

4 5 7

5.3%

4 8 4

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Investments over the years have enabled TCPL to emerge as one of India's leading packaging manufacturers

Comfortable Net-Debt position – cash flows prudently utilized towards capacity expansion and reduction in Debt

Major investments in FY21 & FY22 towards doubling flexible packaging capacity, new MDO line, and upgradation of Folding Carton line

After achieving optimal utilization levels, incremental capex to support higher returns in the future

13.8%

17.4%

16.3%

ROCE

22.7%

23.1%

16.4%

13.3%

12.7%

10.9%

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

RONW

31.9%

29.6%

20.6%

12.1%

18.6%

15.1%

FY12

FY13

FY14

FY15

FY16

FY17

12.7%

14.3%

11.8%

10.3%

FY18

FY19

FY20

FY21

Over the past few years, return ratios have been below internal expectations due to lower utilization of newly commissioned capacities

Optimal utilization of capacities to facilitate better returns going forward

In addition, capex intensity as a % of sales is expected to reduce from FY23 onwards leading to higher return ratios

Endeavour to achieve 20%+ ROCE and 25%+ RONW over the longer-term

Note – Calculation for ROCE = EBIT / Avg. CE and RONW = PAT / Avg. Net Worth

Particulars

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Net Worth (Rs. Cr)

114

145

178

216

241

269

301

Gross Block

251*

280*

328*

392*

478*

585*

426

516

595

632

Cash and cash equivalents (Rs. Cr)

Capital Employed (Rs. Cr)

Book Value (Rs.)

Net Debt (Rs. Cr)

Net Working Capital Days

195

125

233

150

248

101

157

297

131

174

100

384

166

229

487

519

578

659

581

205

237

265

296

331

296

283

314

340

325

113

114

115

*Note: FY12 to FY17 gross block value is before IndAS adoption

Dividend Per Share (Rs.)

Dividend Payout Ratio

26.2%

23.9%

20.0%

20.4%

19.5%

19.7%

20.1%

19.9%

20.0%

7.35

6.00

6.25

7.35

10.0%

5.25

3.70

4.00

2.00

2.65

2.50

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

“One of the first companies to announce a dividend policy – Committed to healthy dividend payouts ”

*Note – Calculation for Dividend Payout Ratio = Dividend/PAT

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

Versatile & technologically advanced packaging solution provider with PAN-India presence

Emerging innovative player in the flexible packaging industry

Consistently outperformed growth in underlying industries led by diversification of product portfolio

Paperboard based packaging emerging as a major sustainable solution with focus on: Renewable, Recyclable and Compostable

Key Market Statistics

As on 30-June-2021

Shareholding Pattern*

BSE/NSE Ticker

CMP (Rs)

Market Cap (Rs Crore)

Number of outstanding shares (Crore)

Face Value

523301 / TCPLPACK

546.3

497.1

0.91

10.0

52-week High / Low (Rs)

546.3 / 255.9

Key Institutional Shareholders

DSP Core Fund

V E C*

*Note: Holding across funds

Holding as on 31-March-21

5.35%

3.07%

Foreign Institutions (FPI, FII) & NRI, 0.86%

AIF, 8.13%

Individual - >1%, 26.76%

Domestic Institutions (MF), 0.01%

Others, 8.50%

Promoter & Promoter Group, 55.74%

*Holding as on 31-March-21

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 to provide paperboard-based packaging with customers 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 effectively diversified and broadened its operations to service a wide range of packaging products, while consistently adding new customers and increasing its share of business in established customers and markets.

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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TCPL Packaging Limited has informed the Exchange about Investor Presentation

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