Presentation2 jk paper is number one company

Jk paper

1. JK Paper Today
Investor Presentation



Golden Jubilee Bell Ringing Ceremony
Bombay Stock Exchange
25 Aug 2015
1
Strictly Confidential

2. J K PAPER …….Creating Lasting Impressions




2
JK Paper – Institutional Investors and Shareholding
Slide No.2
As on 30
th
June 2015 Promoters,
54.05%
Institutions,
11.19%
Other Bodies
Corporate,
5.74%
Individuals,
24.14%
Others including
NRIs, 4.89%
Major Institutional Investors Shareholding Pattern

3. J K PAPER …….Creating Lasting Impressions



JK’S BRANDS ARE INDUSTRY BENCHMARKS IN RESPECTIVE PRODUCT CATEGORIES
Plants with state of the art technology and minimal environmental impact
Panoramic view of the Unit JKPM (Orissa) -295,000 tpa)
Panoramic view of the CPM (Surat, Gujarat) – 160,000 tpa
Copier Paper (Market Leader – Current Mkt. Share is 26%)
Coated Paper ( Amongst top Two
– Current Mkt. Share is 9%)
Packaging Board
( Amongst top Two
Current Mkt. Share is 16%)
3 Slide No.3

4. J K PAPER …….Creating Lasting Impressions




Strategic Geographical Presence
•Strategic location
–JKPM located close to raw
material sources
–CPM located close to large end
customers & port

•Strong distribution reach
–4 regional offices
–11 warehouses
–180 distributors
–over 4,000 dealers
UNIT : CPM

Pulp (tpa)
61,000

Paper (tpa) 55,000

Pkg. Boards (tpa) 90,000
Total Production Capacity
Saleable Product : 455,000 tons per annum (tpa)
Pulp : 276,000 tpa (BD)
UNIT : JKPM

Pulp (tpa) 215,000

Paper (tpa) 291,000
Combined strength of ~ 4800 employees
at both the locations
4 Slide No.4
Product Mix
Uncoated paper 2,91,000 MT
Coated Paper 55,000 MT
Packaging Board 90,000 MT
Saleable Pulp 19,000 MT
Total 4,55,000 MT

5. J K PAPER …….Creating Lasting Impressions



Product CAGR % CAGR % CAGR%
Category last 3 yrs last 5 yrs 5 Years
1 2 3 4 5 6 7 8
1Coated 40 13.2 -2.4 0.7 5.0 8.0 1.0 8.1
2Uncoated 66 14.2 1.0 3.8 25.9 5.6 4.8 5.7
3Packaging Board 44 13.7 1.6 3.3 22.2 9.4 4.6 9.1
4Tissue 34 7.7 4.3 0.1 0.6 12.0 0.2 15.5
5Industrial incl. Kraft150 35.7 3.6 3.9 26.4 8.0 5.5 9.0
6Newsprint 55 8.0 -3.7 2.6 17.6 4.2 3.1 5.0
7Others 12 7.5 1.5 0.3 2.4 7.5 0.5 9.5
8Total 400 100.0 1.2 14.7100.0 7.1 19.7 7.7
Mn
Tons
India 2014-15
Sl.
No
%
Share
Mn
Tons
%
Share
Mn
Tons
Global - 2014 India 2018-19 224
218
159156
75
66
47
3029
128
57
0
50
100
150
200
250
World Per Capita Consumption (Paper + Board) in Kgs -2014
GLOBAL Vs. INDIAN PAPER & BOARD INDUSTRY
Source: FAO/RISI/nternal estimates
Source : PPI
Packaging & Tissue segments are high growth markets globally
Slide No.5

6. J K PAPER …….Creating Lasting Impressions




INDIAN PAPER MARKET BY PRODUCT CATEGORY
JK’s participation increased from 13% to 22% in total paper market Sl NoCategory
14-1518-19
1 2 3 4 5 6 7
1.0Writing & Printing Paper 45.457.6 31% 6.0% 6% 6.1%
1.1Creamwove/Maplitho (Low Bright) 18.221.5 12% 4.3% 4.2%
1.2Maplitho (High Bright) 13.718.1 9% 7.1% 4% 7.2%
1.3Copier 6.2 8.0 4% 6.7% 25% 6.6%
1.4Total Uncoated 38.047.6 26% 5.6% 5% 5.7%
1.5Coated Paper 7.3 10.0 5% 8.0% 8% 8.1%
2.0Total Packaging Paper & Board 71.4101.0 49% 8.6% 1% 9.1%
2.1Recycled Duplex Board (Grey/White back)26.936.9 18% 7.8% 0% 9.0%
2.2Virgin Boards (FBB/SBS) 5.7 9.3 4% 19.0% 16% 13.0%
2.3Total Packaging Board 32.646.2 22% 9.4% 3% 9.1%
2.4Packaging Papers (Kraft) 38.854.7 26% 8.0% 9.0%
3.0Newsprint, Speciality, Tissue 30.239.4 20% 5.4% 6.8%
4.0Grand Total 147.0197.9 100% 7.1% 2.5% 7.7%
Market Size
(in Lac T)
Share of
Total
(14-15)
CAGR
(5 Years)
10-11 Base
year
Industry
CAGR
(14-15 to
18-19)
JK's
Market
Share
2014-15
Source: FAO/Internal estimates
Slide No.6

7. J K PAPER …….Creating Lasting Impressions




Fibreline (215,000 TPA)
Paper Machine (165,000 TPA)
NEW PROJECT AT UNIT JKPM……(I)

Slide No.7

8. J K PAPER …….Creating Lasting Impressions




Power Plant
A4 Cutting Line Robotic Palletizer
8
NEW PROJECT AT UNIT JKPM……(II)

Slide No.8

9. J K PAPER …….Creating Lasting Impressions



Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012-13 2013-14 2014-15 2015-16
Copier 28,35429,31728,88630,28926,72433,72339,28340,82242,58244,54750,13151,50053,406
Maplitho 651 657 728 685 605 1,7915,4357,7777,77711,11214,74914,80011,865
Total Uncoated29,00529,97429,61430,97427,32935,51444,71848,59950,35955,65964,88066,30065,271
28,354
53,406
651
11,865
-6,000
4,000
14,000
24,000
34,000
44,000
54,000
CopierMaplitho
VOLUME RAMP UP AT JKPM (MT PER QUARTER)


•Exploring new
distribution
avenues

•Getting better
customer
connect

•Re-establishing
premium
positioning of JK
Maplitho grades.





Way Forward
Post Expansion
Copier Market in India grew by 6% in FY 2014-15 and JK’s Copier Volume up by 31%
Slide No.9

10. J K PAPER …….Creating Lasting Impressions




Performance Highlights
Slide No.10 573.88
623.85
645.43
671.81
682.73
500
550
600
650
700
Q-1 Q-2 Q-3 Q-4 Q-1
2014-15 2015-16
TURNOVER (Rs. Crore)
Turnover
UP BY
* Over corresponding quarter last year
19% 40.08
47.80
75.22
91.24
100.10
20
40
60
80
100
120
Q-1 Q-2 Q-3 Q-4 Q-1
2014-15 2015-16
EBITDA (Rs. Crore) -32.10
-28.63
1.10
8.60
24.14
-40
-30
-20
-10
0
10
20
30
Q-1 Q-2 Q-3 Q-4 Q-1
2014-15 2015-16
PBT (Rs. Crore)
*
EBITDA
UP BY
150%
*

11. J K PAPER …….Creating Lasting Impressions




Quarter wise EBITDA during Stabilization Period
Slide No.11 Avg Qtrly
2013-14
Q-1-2014-
15
Q-2-2014-
15
Q-3-2014-
15
Q-4-2014-
15
Q-1-2015-
16
EBIDTA 30.94 40.08 47.80 75.22 91.24 100.10
EBIDTA % to NS7.2% 8.2% 9.0% 13.8% 15.9% 17.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
110.00
EBITDA Margin
EBIDTA
-
Rs.Cr
EBIDTA % to Net Sales

12. J K PAPER …….Creating Lasting Impressions




Driving Cost Efficiencies - Electricity Consumption
Slide No.12 200720082009201020112012201320142015
JKPL1,378 1,398 1,250 1,191 1,180 1,1531,120 1,176 1,161
TNPL1,457 1,421 1,519 1,597 1,573 1,522 1,451 1,376 1,457
WCPM1,155 1,166 1,131 1,193 1,366 1,272 1,258 1,258
APPM1,320 1,487 1,606 1,632 1,587 1,409 1,386 1,349
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
Electricity Consumption -Per MT of Paper & Board

13. J K PAPER …….Creating Lasting Impressions





13
Farm Forestry and Raw Material Security Initiatives
Started in 1991-92
16,934 Ha area
planted in 2014-15
Overall 132,934 Ha
till date
Clonal Development Centre
Rooting of CPM Clones of Subabul More than 2 years old promising clones in JKPM
JKPL’s Efforts to Reduce Cost of Raw Material
Maximizing plantation coverage within 200 Km
radius
R&D to develop short rotation clones (2-3 years)
for improvement of plantation yield and increase
return to farmers
Focus on training & development to farmers and
staffs
Monitoring of plantations for survival & growth
rates
Arrangement of loans to Farmer’s or Co-operative 0
5000
10000
15000
20000
FY09-10FY10-11FY11-12FY12-13FY13-14FY14-15
JK Paper –Plantation Coverage under Farm Forestry -Hectare
Within 200 km (Ha)Beyond 200 km (Ha)
4247
6722
8504
11803
14877
16934 Maximum
Coverage
within 200 km
Slide No.13

14. J K PAPER …….Creating Lasting Impressions




ENVIRONMENT INITIATIVES
•Pursuing enriching the green cover through Social Farm Forestry






14
JK PAPER – CSR ACTIVITIES
EDUCATION INITIATIVES
• Schools - three schools providing education to over 3200 students
• Adult Literacy Programme – enabled 11,000 illiterate to become literate
• Organizing Healthcare Camps – 7500 patients covered in 2014-15
• Health & Hygiene awareness for Adolescent girls
HEALTH CARE INITIATIVES
• About 72 Women Self-Help Groups (SHGs) covering 840 tribal women.
• Training on Phenyl making, Mushroom/Maize cultivation, making de-seeded
Tamarind Cakes/ Hill Brooms, etc.
• Encouraging entrepreneurs to take up activities like Broiler farming










LIVELIHOOD INTERVENTIONS
Slide No.14

15. J K PAPER …….Creating Lasting Impressions




JK has been a consistent performer with 12% y-o-y growth in Net Sales
Financial Highlights – In Rs. Cr.
15 Slide No.15 Sl.
No.
Financial Year >>>2001-02 2005-06 2010-11 2011-12 2012-13 2013-14 2014-15CAGR %
(2002-15)
Q1
(2015-16)
1Quantity In %
1.1Production 164,972 184,982 218,330 283,033 292,582 328,321 413,835 111,576
1.2Capacity Utilisation 110% 103% 121% 98% 101% 85% 91% 98%
1.3Sales Volume 172,894 197,313 267,081 277,599 290,421 321,094 398,387 7%108,435
2Operating Results
2.1Turnover (Gross Sales) 626 845 1,433 1,557 1,721 2,025 2,515 11% 683
2.2Net Sales 480 664 1,231 1,328 1,453 1,721 2,139
12%
579
2.3Operating Profit (EBITDA) 118 135 259 153 133 124 254 6% 100
2.4Cash Profit (PBDT) 68 101 207 102 83 2 50 49
2.5Profit / (Loss) Before Tax (PBT) 31 54 136 29 25 (123) (51) 24
2.6Profit / (Loss) After Tax (PAT) 17 36 106 49 38 (77) (13) 17
3Key Ratios
3.1EBITDA as % to Net Sales 24.6% 20.3% 21.0% 11.5% 9.1% 7.2% 11.9% 17.3%
3.2Equity (Net Worth) - Rs. Cr. 57 350 584 848 872 795 775 792
3.3Return on Equity (ROE) 16.4% 13.3% 20.2% 6.9% 4.4% -ve -ve 8.5%
In MT
In Rs. Cr.

16. J K PAPER …….Creating Lasting Impressions




JK Paper - Balance Sheet – In Rs. Cr.
16 Year End 2006
June
2011
March
2012
March
2013
March
2014
March
2015
March
Total Assets 1030 1,251 2,063 2,738 3,058 2,897
Gross Block 1005 1,452 1,479 1,516 3,041 2,996
Net block 678 841 803 768 2,465 2,294
CWIP 109 94 584 1,541 17 27
Investments 14 83 73 15 96 28
Net Current Assets (excl. cash) 222 203 455 381 472 530
Cash / Bank balance 7 31 148 34 8 17
             
Capital Employed 1030 1,251 2,063 2,738 3,058 2,897
Equity Capital 78 78 137 137 137 137
Reserves 272 506 711 735 658 638
Net Worth 350 584 848 872 795 775
Borrowings 611 538 1,094 1,746 2,189 2,089
Deferred Tax Liability 68 128 122 120 74 33
Ratios - Times
Total Debt / Equity 1.74 0.92 1.29 2.00 2.75 2.70
Long-term Debt / Equity 1.65 0.69 1.14 1.86 2.48 2.38
Debt to EBITDA Ratio 4.53 2.08 7.16 13.17 17.69 8.21
*
*5.2 times based on Q1 (FY 2015-16) annualised EBITDA
Slide No.16

17. J K PAPER …….Creating Lasting Impressions




This presentation (the “Presentation”), which has been prepared by JK Paper Ltd. (the “Company”), has been prepared
solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment
whatsoever.

This Presentation has been prepared by the Company based on information and data which the Company considers
reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be
placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This
Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any
liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and
business prospects that are individually and collectively forward looking statements. Such forward looking statements
are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions
that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian
economy and of the economies of various international markets, the performance of the paper industry in India and
world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of
growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash
flows, the Company’s market preferences and its exposure to market risks, as well as other risks. Company is not
responsible for any third party statements and projections used in this Presentation .


For further information, please speak to Mr. V. Kumaraswamy, Chief Finance Officer, JK Paper Limited at 91-11-23724337.
Email: [email protected]
Disclaimer
17 Slide No.17

18. J K PAPER …….Creating Lasting Impressions




THANK YOU
Slide
No.1
8
Slide No.18