AGI

NEAPS/BSE ONLINE 27th January, 2023 The Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers 1st Floor, New Trading Ring Rotunda, Dalal Street, Mumbai - 400 001 (BSE Scrip Code: 500187) The Secretary, National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G-Block Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051 (NSE Symbol: AGI) Dear Sir/Madam, Sub: Investors’ Presentation-Q3 FY 2022-2023 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith a copy of Investors' Presentation on the un-audited financial results of the Company for the third quarter and nine months ended 31st December, 2022. Investors' Presentation will also be available on the website of the Company i.e. www.agigreenpac.com. You are requested to take the enclosed document on your record. Thanking you, For AGI Greenpac Limited (Formerly known as HSIL Limited) (Pulkit Bhasin) Company Secretary Name: Pulkit Bhasin Address: 301-302, 3rd Floor, Park Centra, Sector-30, Gurugram-122001 Membership No.: 27686 Encl: As above AGI Greenpac Ltd (formerly known as HSIL Ltd.) Corporate Office: 301-302, 3rd Floor, Park Centra, Sector-30, NH 8, Gurugram, Haryana-122 001, India. T. +91 124 477 9200 Registered Office: 2, Red Cross Place, Kolkata-700001, West Bengal, India. T. +91 33-22487407/5668 hsilinvestors@hsilgroup.com | www.agigreenpac.com | CIN: L51433WB1960PLC024539 AGI glaspac Office: Glass Factory Road, Off Motinagar, Borabanda, Hyderabad-500018, India. T: + (91) 40-2383 1771(5lines), M: agi@agi-glaspac.com AGI Plastek Office: AGI glaspac Premises, Glass Factory Road, Off Motinagar, Borabanda, Hyderabad-500018, India. T: +91 40-2383 1771(5lines), M: sales@gpoly.in AGI CloZures Office: Sy.No.208 to 218, Sitarampur, Isnapur, Patancheru, Telangana- 502307, India. T: +91-8455-225511, M: info@agiclozures.com Accelerating Ambitions. Packaging Excellence. Earnings Presentation Q3 FY2023 Q3 FY2023 Performance Highlights Strong Performance during the quarter driven by improved Total Income product mix and volume 43.0% 570 ₹ crore Y-o-Y Q3 FY22 : ₹399 crore • Glass container business continues to report strong growth owing to improved, better product mix and volumes were driven by increased demand from non-alcoholic beverage, packed food and beer segment EBITDA • Glass containers capacity utilization during the quarter is around 95% 38.9% as compared to 92% in the same quarter last year 113 ₹ crore Y-o-Y • The company continues to maintain EBITDA margins despite a sharp Q3 FY22 : ₹81 crore increase in input prices and rising inflation Margins : 19.7% • Commenced the commercial production of our specialty glass facility set up at Bhongir in the state of Telangana with an installed capacity of 154 Tons Per Day w.e.f. 1st January, 2023 Profit After Tax • Catering to export markets such as the EU, Canada, and South Africa 80.8% 53 with niche products ₹ crore Y-o-Y • Partnered with one of the Big 4’s for formulating and strengthening Q3 FY22 : ₹29 crore Margins : 9.3% our ESG Strategy 2 2 Notes: 1. All margins are calculated on Total Income 2. All figures are from continuing operations 9M FY2023 Performance Highlights Total Income Commenting on the performance, Mr. Sandip Somany, Chairman 57.8% and Managing Director of AGI Greenpac said: 1,608 ₹ crore Y-o-Y 9M FY22 : ₹1,020 crore “AGI Greenpac growth was broad-based on our agile business model, improved product mix. EBITDA A rise in demand for packed food, non- alcoholic beverage, and beer segment 36.6% 292 ₹ crore continued to propel growth for our packaging Y-o-Y products in this quarter as well.” 9M FY22 : ₹214 crore Margins : 18.2% “We are confident of the market and continuing domestic consumption augurs well for our high-end and value-added products produced from our 154 tonnes manufacturing facility in Telangana.” Profit After Tax 93.9% 153 ₹ crore Y-o-Y 9M FY22 : ₹79 crore Margins : 9.5% 3 3 Notes: 1. All margins are calculated on Total Income 2. All figures are from continuing operations Financial Performance Trend : Q3 FY2023 AGI Greenpac delivers strong Y-o-Y growth of ~43% in Total Income and ~ 81% in Profit After Tax (₹ in crore) Total Income EBITDA 43.0% 38.9% 570.4 514.7 112.7 398.8 81.1 87.2 20.3% 19.7% 17.0% Q3 FY22 Q2 FY23 Q3FY23 Q3 FY22 Q2 FY23 Q3FY23 EBIT Profit After Tax 53.7% 80.8% 53.2 82.4 53.6 57.6 33.9 29.4 13.4% 14.4% 9.3% 11.2% 7.4% 6.6% Q3 FY22 Q2 FY23 Q3FY23 Q3 FY22 Q2 FY23 Q3FY23 Notes: 1. All margins are calculated on Total Income 2. All figures are from continuing operations 4 Financial Performance Trend: 9M FY2023 AGI Greenpac delivers strong Y-o-Y growth of over ~58% in Total Income and ~94% in Profit After Tax (₹ in crore) Total Income EBITDA 57.8% 36.5% 1608.4 292.0 1019.5 213.8 21.0% 18.2% 9M FY22 9M FY23 9M FY22 9M FY23 EBIT Profit After Tax 43.5% 93.9% 152.9 203.4 141.7 78.9 13.9% 12.6% 9.5% 7.7% 9M FY22 9M FY23 9M FY22 9M FY23 Notes: 1. All margins are calculated on Total Income 2. All figures are from continuing operations 5 Business at a Glance One of the leading Packaging Products Companies in India Others 40+ 1,754 14% Years Tonnes Per Day Packaging Product Expanded capacity from 154 Operates 3 plants located in Revenue Glass tonnes to 1,754 tonnes per Telangana including the specialty glass Mix Containers 86% day over forty years manufacturing plant Pharmaceuticals 9% ~85% 1,222 Food and Beverages FY22 Capacity Utilization FY22 Revenue ₹crore Glass 16% Containers Revenue Improving capacity utilization as Strong financial performance with Alcoholic Mix Beverages compared to last year due to high operating profit margins, backed 75% macro-economic environment by state of the art manufacturing revival capabilities Note: Figures as of FY22 7 Manufacturing Facilities Location Products Capacity AGI Glaspac Glass Containers and 950 tonnes per day Bottles Bhongir, Hyderabad Speciality Glass* 154 tonnes per day Uttarakhand Glass Containers and Sanathnagar, Hyderabad 650 tonnes per day Bottles AGI Plastek Selaqui, Uttarakhand PET Bottles & Products 2,659 tonnes per annum Sangareddy, Telangana PET Bottles & Products 2,313 tonnes per annum Dharwad, Karnataka PET Bottles & Products 5,284 tonnes per annum AGI Clozures Security Caps & Cosures Hyderabad 780 mn pieces per annum (Small) Karnataka Sangareddy, Telangana Security Caps & Closures 132 mn pieces per annum (Large) *Commenced commercial production w.e.f. 1st January, 2023 Our Customers 500+ Diversified marquee institutional clients across industries 9 Emerging Trends 1 2 Economic Growth Recovery Market Formalisation • Major macro-economic indicators are on a fast recovery track driving demand for packaged food and beverage products • Movement from informal to formal sector driven by advances in glass technology to manufacture lightweight glass containers • Glass is one of the most preferred materials for the packaging of premium food, beverages, pharmaceuticals, and personal care • Consolidation in the Glass industry will lead to higher growth products opportunities • Shift towards sustainable packaging resulting in growing demand for glass packaging 3 4 Focus on Improved Product Mix Emerging Consumer Behavior and Services • Key factors driving the glass containers market growth are rising per capita income, greater propensity of the younger generation to • AGI Greenpac is one of the leading players in Glass packaging consume alcoholic & nonalcoholic beverages, and enhanced sector in India awareness towards sustainability of glass water bottles among consumers • Investment in R&D, design centres to drive innovation and premium product development • Consumer preference shifting towards quality, safety and premiumization of products • Customer centric products and serviceability are core business principles 11 Industry Growth Drivers AGI Greenpac growth dynamics are fully aligned with the fundamental underlying growth profile of its customers Food and Soft Drink AGI Greenpac Growth Drivers Alcoholic Beverages Pharmaceuticals Cosmetic & Perfume India container Glass market is expected to grow at 6-7% CAGR over 2021-2026 Growing consumption of spirits and beer resulting in increased demand for glass Market Size and Growth: Market Size and Growth : Market Size and Growth : Market Size and Growth : bottles • Liquor segment isgrowing • India’s pharmaceutical market • FMCG market is expected to • The India Cosmetics Market is at a CAGR of 8-9% was valued at US$ 42 billion grow at 14-15% between expected to grow at a CAGR • Beer market is expected to in 2021, and is projected to 2020-25. of 16.39% through FY2026 to grow at 9-10% between reach US$ 120-130 billion by reach USD 28985.33 Million. FY2022-27 2030, Growth Drivers: • The fragrance market in India Higher usage of glass • Evolving consumer is expected to expand at a packaging in Food & Growth Drivers: Growth Drivers: preferences, rising income CAGR of ~15.93%, from its • Growing preference for • Growing infrastructure and & growing rural opportunity 2019 value of INR 66.58 Bn. Beverage industry spirits support from government to • Rural slowdown has • Increasing disposable make India a global leader bottomed out, demand is Growth Drivers: income resulting in higher in drug manufacturing expected to stabilize • Changes in shopping Growth of Cosmetic and spending on alcoholic • Increasing private preferences Perfume Glass Packaging beverages investment Government • Greaterinclination of the • Expanding beer market initiatives youth towards skincare and market owing to including craft beers other grooming products premiumisation of the segments 12 Sustainability a Core Pillar of Growth Strategy AGI Greenpac is committed in adopting and investing in environment friendly technology and initiatives Aim to build a long-term sustainable business for all stakeholders Environment FriendlyCertifiedManufacturing Process Green Building Design DMF – Quality Assurance for supply to US pharmaceutical market. ISO As a corporate Policy, IGBC certified Green building concept will be considered for all 14001:2015 – Environment Management System. OHSAS 18001: 2007 upcoming project. Aiming for platinum rated “Green Building” for 154 TPD project. Occupational Health and Safety Management System. FSSC 22000 – Food Only organization in the Indian Container Glass Industry to have installed ESP Safety System. ISO 9001:2008 and 2015 – Quality Management System. (ElectrostaticPrecipitator) in furnace,toreduce carbonemission, in all theplants. ISO 15378:2011 and 2017 – Quality Management System to provide primary packaging material formedicinal products. Light Saving Building Design Designed all facilities, especially shop floors to ensure no artificial lighting is Waste Treatment required during daytime & LED lighting is extensively used replacing conventional Effluent and Sewage treatment plants installed, and waste generated while HPSV/ fluorescentlamps processing is almost100% recycled byregrinding and reprocessing New Cullet Sorting Machine commissioned at Bhongir, Cullet Quality have Renewable Energy improved with a possibility to increase the usage of cullet in the furnace from Increasing share of renewable power in overall energy consumption, with the help 35% to45%. ofon-siterooftopsolar power plantsinstallation of17 MW atBhongir. StartedUsing Bio-D Masterbatch (Biodegradable product)in select SKU’s At Sanathnagar,Hyderabad Plant, we have 2 MW solar power. Environment-friendly Product At our Caps and Closure plant in Isnapur, we have an on-site rooftop solar power Greendrop Glassware - Promoting ‘glass packaging’ which is environment- plant installation of1 MW. friendly productas an alternative tosingle-use plastic Continuous efforts are being made to either reduce packaging material or sourcematerial thatis 100%recyclable/ biodegradable Helps in attracting and Cost saving owingto usage High morale among engaging with ESG of natural light and energy Increased efficiency and Sustainable businesses stakeholders – clients and conscious institutional saving equipments productivity employees clients 13 Board of Directors and Leadership Team Experienced senior management team with dedicated executives to Board of Directors professionally manage business operations • Mr. Nand Gopal Khaitan (Independent Director) Attorney-at-Law and a Notary Public appointed by the Government ofIndia • Mr. Vijay Kumar Bhandari (IndependentDirector) Fellow Chartered Accountant with over 39 years of experience in the Banking Industry • Mr.Anil Wadhwa (IndependentDirector) Mr. Sandip Somany Mr. Sandeep Sikka Ex-Member of the Indian Foreign Services. Served as Indian Chairman And Managing Director Group CFO Ambassador to Poland, Lithuania, Sultanate of Oman, Thailand, Italyand San Marino over the course of39 years • Ms Himalyani Gupta (IndependentDirector) Advocate with over 31 years of experience Standing Counsel for the Union ofIndia in theHon’ble Supreme Court ofIndia • Mr. Rakesh Sarin (Independent Director) 44 years of experience in the field of distributed energy, policy advocacy and development oflarge renewable energy platform • Ms. Sumita Somany (Non-Executive Non-Independent Director) Over a decade ofexperience in theretail industry Mr. Rajesh Khosla Mr. Om Prakash Pandey • Mr. Girdhari Lal Sultania (Non-Executive Non-Independent CEO Chief Financial Officer Director) Fellow Chartered Accountant, Fellow Company Secretary and consultantby profession 14 Disclaimer and Forward Looking Statements • This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by AGI Greenpac Limited (also referredto as the ‘Company’). Byattending themeeting wherethis presentation is beingmadeor by reading thepresentation materials, you agree tobeboundbythe following limitations: • The information in this presentation has been prepared for use in presentations by the Company for information purposes only and does not constitute, or should be regarded as, or formpartofanyoffer,invitation,inducementoradvertisementtosellorissue,oranysolicitationorinitiationofanyoffertopurchaseorsubscribefor,anysecuritiesoftheCompanyin any jurisdiction, including the United States and India, nor shall it, or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment to purchase or subscribe for any securities of the Company in any jurisdiction, including the United States and India. This presentation does not constitute a recommendationbytheCompanyoranyotherpartytosellorbuyanysecuritiesoftheCompany. • This presentation and its contents are not and should not be construed as a prospectus or an offer document, including as defined under the Companies Act, 2013, to the extent notifiedandinforceoranofferdocumentundertheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009asamended. • This presentation and its contents are strictly confidential to the recipient and should not be further distributed, re-transmitted, published or reproduced, in whole or in part, or disclosedbyrecipientsdirectlyorindirectlytoanyotherpersonorpress,foranypurposes.Inparticular,thispresentationisnotforpublicationordistributionorreleaseinanycountry where suchdistribution may lead toa breachofany law or regulatory requirement. No person is authorised togiveanyinformation or to makeanyrepresentation notcontained inor inconsistent with this presentation or/and if given or made, such information or representation must not be relied upon as having been authorised by us. Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein. Any failure to comply with this restriction may constitute a violation of applicablesecuritieslaws. • 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 opinionscontainedinthispresentation.NeithertheCompanynoranyofitsaffiliates,advisorsorrepresentativesshallhaveanyresponsibilityorliabilitywhatsoever(fornegligenceor otherwise)foranylosshowsoeverarisingfromanyuseofthispresentationoritscontentsorotherwisearisinginconnectionwiththispresentation.Theinformationsetouthereinmay besubjecttoupdating,completion,revision,verificationandamendmentandsuchinformationmaychangematerially.Thispresentationisbasedontheeconomic,regulatory,market andotherconditionsasineffectonthedatehereof.Itshouldbeunderstoodthatsubsequentdevelopmentsmayaffecttheinformationcontainedinthispresentation,whichneitherthe Companynoritsaffiliates,advisorsorrepresentativesareunderanobligationtoupdate,reviseoraffirm. • This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. 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. Unless otherwise indicated, the information contained herein is preliminary and indicative and is based on management information, current plans and estimates. Industry and market-related information is obtained or derived from industry publications and other sources and has not been independently verified by us. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. The Company disclaimsanyobligationtoupdatetheseforward-lookingstatementstoreflectfutureeventsordevelopments. • THISPRESENTATIONISNOTANOFFERFORSALEOFSECURITIESININDIA,THEUNITEDSTATESORELSEWHERE. 15 Corporate Office 301-302, III Floor, Park Centra, Sector 30, N.H-8, Gurgaon, Haryana –122001 Phone +91 124 4779200 Website https://agigreenpac.com/ Investor Relations Advisor Ashok Negi / Rajiv Pandya ChurchgatePartners Email: AGI@churchgatepartners.com Phone +91 22 6169 5988 Website https://www.churchgatepartners.com/