COSMO FIRST LIMITED

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CFL/SE/2023-24/FEB/06 The Manager (Listing) BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400 001 Scrip Code: 508814 February 13, 2024 The Manager (Listing) Nati

64%

ier of Industrial Application Films. Unique Proposition  Uniquely positioned with good mix of (64% volume specialty specialty/semi 9MFY’24) and commodity films.  Globally among top four players i

2.5Lakh

green 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 70% of In

70%

, 2.5Lakh lives touched in the fight against COVID-19  Governance: Strong Independent board with 70% of Independent Directors Company Overview – Businesses Speciality films focused business with tar

80%

ent Directors Company Overview – Businesses Speciality films focused business with target to sell 80% BOPP based volume of speciality films by FY25 (9MFY24 Speciality 64%) End-to-end rigid packaging s

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) (9M’FY24 64% volume; 13% CAGR over last 5 years).  Target 80%+ volume from Speciality & Semi Speciality segment by 2025.

120%

CAGR over last 5 years).  Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 100% 80% 60% 40% 20% 0% 38% 62% FY19 43% 57% FY20 52% 48% FY21 64% 36% FY22 62%

100%

over last 5 years).  Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 100% 80% 60% 40% 20% 0% 38% 62% FY19 43% 57% FY20 52% 48% FY21 64% 36% FY22 62% 64%

60%

5 years).  Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 100% 80% 60% 40% 20% 0% 38% 62% FY19 43% 57% FY20 52% 48% FY21 64% 36% FY22 62% 64% 38% FY23

40%

rs).  Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 100% 80% 60% 40% 20% 0% 38% 62% FY19 43% 57% FY20 52% 48% FY21 64% 36% FY22 62% 64% 38% FY23 36%

20%

 Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 100% 80% 60% 40% 20% 0% 38% 62% FY19 43% 57% FY20 52% 48% FY21 64% 36% FY22 62% 64% 38% FY23 36% 9M'F

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

“We expect the trend to continue this year and shall normalize by next financial year.”

“ The Speciality Chemical subsidiary is progressing as per plan and is at the cusp of delivering double digit EBITDA and high teens ROCE from FY25.”

“ While short term challenge remains due to adverse packaging film margin, the Company continues to build speciality films vertical and plans to launch high value-added sun control film (Cosmo Sunshield) in FY25.”

“ 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, digital first, D2C Petcare business and rigid plastics.”

“ Strong financials (net debt/EBITDA at 1.7 times, net debt/equity at 0.4 times)  AA- Credit Rating with stable outlook by CRISIL (Reaffirmed in January’2024)  Speciality Films:  Expanding Speciality portfolio (64% Volume 9M’FY24; 13% CAGR in last 5 years).”

“Target 80%+ Volume from Speciality by 2025 end  Targeting High Growth (70% capacity increase) – Specialized BOPET Line (Q3, FY23), CPP Line by FY’25, BOPP Line by H1’FY26  R&D & Sustainability focus (30+ highly qualified polymer/chemical scientists; Further expanding)  Four current patents and another seven are in pipeline Strategic Perspective Why Cosmo First ?”

“ Monthly GMV Rs 4 crore with 23 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 BOPP Line (World’s Largest Line) CPP Films Line (World’s Largest Line) Total Estimated Capex (INR Crs) Annual Capacity (MT) Estimated Commercial Production by 350 140 490* 67,000 H1’FY 2026 25,000 H1’FY 2025 * Out of above mentioned capex, about Rs.”

Verticals

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Notes

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Films Business

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Other Businesses

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Upcoming capacities

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The Pet care market in India is booming with

1

Verticals

Masterbatch (From FY21) Coating Chemicals (From FY22) Adhesive (From FY24) Automotive, architectural, safety & decorative window films (Upcoming in FY’25) 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 ►1996: 3rd BOPP line ►2001: 4th BOPP line 2006 ►2012: 2nd coating line ►2013: 9th BOPP line ►2014: 3rd coating line 2012-14 ►2010: 2nd metallizer line ►2011: Korea plant 2010-11 2009 2007-08 ►2016: CPP line-1 ►2017: 10th BOPP line ►Petcare ►Speciality Chemicals 2022 2021 2018-20 ►2018: CPP line-2 ►2020: 6th coating line 2016-17 2015 ►4th and 5th coating line; 3rd metallizer line; Upgradation of US plant 2023 2024 ►Re-branded to Cos

Notes

1) Speciality margins per/kg have witnessed a marginal decline in 9M’FY24 owing to change in sales mix and uneven orders from a specialty export customer for a high margin speciality film. We expect the trend to continue this year and shall normalize by next financial year. 2) Margins denote per/kg contribution for respective films categories. Performance Snapshot December 2023 Quarter Performance Snapshot Unaudited Q3 FY 23-24 Unaudited Q2 FY 23-24 Unaudited Q3 FY 22-23 INR Cr Particulars 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. Consolidated 664 72 10.9% 29 22 43 Consolidated 625 56 9% 10 11 30 Standalone 568 46 8% 2 3 22 Standalone 617 71 11.5% 30 23 34 Standalone 625 75 12% 40 36 106 Management Commentary  During Q3’FY24, the domestic margin for both BOPP and BOPET shrank further due to desperate and below cost selling resorted by the industry. The Company co

Films Business

S.No. Capex Project 1 2 BOPP Line (World’s Largest Line) CPP Films Line (World’s Largest Line) Total Estimated Capex (INR Crs) Annual Capacity (MT) Estimated Commercial Production by 350 140 490* 67,000 H1’FY 2026 25,000 H1’FY 2025 * Out of above mentioned capex, about Rs. 90 cr has been incurred upto Dec’23.

Other Businesses

 Specialized Chemicals (scaling up in coming years) – Estimated INR 50 Cr Capex in next 3 years.  D2C Pet Care businesses (23 nos. of experience centers as at Dec 2023 – plan to significantly increase to 100+ in a couple of years beside online business) Business Overview “FILMS Business” Manufacturing Footprints & Offices”

Upcoming capacities

CPP line (25000 TPA – H1’FY25) - Waluj, Aurangabad BOPP line (67000 TPA – H1’FY26) – Waluj, Aurangabad 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 both specialty & non-specialty Disclosure: All these are trademarks of respective Owners Speciality Films Focus  Grow Speciality portfolio by volume from 64% in 9M, FY24 to 80%+ by 2025 

The Pet care market in India is booming with

• ~25% Projected Annual Growth • ~32MM pets • ~1MM annual adoptions Indian Petcare Market 12000 10000 8000 6000 4000 2000 0 Rs 12500 Cr Rs 3000 Cr Rs 5100 Cr FY 2020 FY 2023 FY 2027 Key Tractions Zigly - Business Model 13 Cr GMV (FY’23) 4 cr Current Monthly GMV 38K + Customers served with 6k+ Zigly Pro members 5900+ SKUs available 39% - Q3’FY24 Repeat customers Retail outlets One Stop solution retail outlets offering Products Veterinary Grooming Medicines First Petcare app Under one roof Own E-commerce website and App 5900+ SKUs available on website Including Private label Service Marketplace Other Marketplace Acting as an aggregator for panel of groomers and trainers on commission basis through own website Private label available on Amazon Grooming Van Grooming Van in Delhi NCR 242K + Customers database 116K + Social Media followers Pets familia community Social community with 116K + followers Plan for Petcare Vertical “Zigly”  India Petcare industry INR 5k crores (25% expected growt