#1JK Paper Today Investor Presentation Truly, some of life's best moments come on paper... Golden Jubilee Bell Ringing Ceremony Bombay Stock Exchange 25 Aug 2015 Strictly Confidential 1#2- JK Paper – Institutional Investors and Shareholding Major Institutional Investors Shareholding Pattern As on 30th June 2015 Entrepreneurial Development FMO •Proparco Others including NRIS, 4.89% Individuals, 24.14% GROUPE ACENCE FRANÇASE DE DÉVELOPPEMENT Bank KFW DEG International IFC Finance Corporation WORLD BANK GROUP Other Bodies Corporate, 5.74% LIC जीवन बीमा निगम भारतीय LIFE INSURANCE CORPORATION OF INDIA Institutions, 11.19% Promoters, 54.05% Slide No.2 订Ⓡ JK PAPER ....... Creating Lasting Impressions K PAPER#3JK'S BRANDS ARE INDUSTRY BENCHMARKS IN RESPECTIVE PRODUCT CATEGORIES Plants with state of the art technology and minimal environmental impact Copier Paper (Market Leader - Current Mkt. Share is 26%) Panoramic view of the Unit JKPM (Orissa) -295,000 tpa) excel BOND LEDGER JK COPIER PLUS JK Cedar JKMAX JK Sparkle JK Sparkle JKCMAX JK EASY COPIER JK COPIER 0 Coated Paper ( Amongst top Two - Current Mkt. Share is 9%) Premium Stationery PHOTOVISTA JK PHOTOVISTA JK PHOTO Preg Jкeеxcеl Jкexcel JKE ЈКЕХСel JK PAPER LTD. Comme Packaging Board (Amongst top Two Current Mkt. Share is 16%) 订Ⓡ It's KFC Fi NESTEA KINGFISHER Cintapre Pear Panoramic view of the CPM (Surat, Gujarat) - 160,000 tpa JK PAPER.......Creating Lasting Impressions Slide No.3 K PAPER#4Strategic 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 UNIT: CPM Pulp (tpa) Total Production Capacity Saleable Product: 455,000 tons per annum (tpa) Pulp : 276,000 tpa (BD) - 11 warehouses 61,000 UNIT: JKPM - 180 distributors Paper (tpa) 55,000 Pulp (tpa) 215,000 Pko. Boards (tna) 90.000 Paper (tpa) 291,000 over 4,000 dealers ~ Combined strength of 4800 employees at both the locations 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 订Ⓡ JK PAPER .......Creating Lasting Impressions Slide No.4 K PAPER#5GLOBAL Vs. INDIAN PAPER & BOARD INDUSTRY World Per Capita Consumption (Paper + Board) in Kgs -2014 250 224 218 200 150 100 50 O 159 156 North America Source: PPI Japan Singapore 75 66 EU China Thailand Latin America Vietnam Indonesia 47 30 29 12 8 India Africa 57 World Average Global 2014 India 2014-15 India 2018-19 Product CAGR % CAGR % CAGR % SI. Mn % Mn % No Category Tons Share last 3 yrs Tons Share last 5 yrs Mn Tons 5 Years 1 2 3 4 5 6 7 8 1 Coated 40 13.2 -2.4 0.7 5.0 8.0 1.0 8.1 2 Uncoated 66 14.2 1.0 3.8 25.9 5.6 4.8 5.7 3 Packaging Board 44 13.7 1.6 3.3 22.2 9.4 4.6 9.1 4 Tissue 34 7.7 4.3 0.1 0.6 12.0 0.2 15.5 5 Industrial incl. Kraft 150 35.7 3.6 3.9 26.4 8.0 5.5 9.0 6 Newsprint 55 8.0 -3.7 2.6 17.6 4.2 3.1 5.0 7 Others 12 7.5 1.5 0.3 2.4 7.5 0.5 9.5 8 Total 400 100.0 1.2 14.7 100.0 7.1 19.7 7.7 Source: FAO/RISI/nternal estimates Packaging & Tissue segments are high growth markets globally 订Ⓡ JK PAPER ....... Creating Lasting Impressions Slide No.5 K PAPER#6INDIAN PAPER MARKET BY PRODUCT CATEGORY Market Size (in Lac T) SI No Category Share of Total (14-15) CAGR (5 Years) JK's Industry Market CAGR 10-11 Base Share (14-15 to year 2014-15 18-19) 14-15 18-19 1 2 3 4 5 6 7 1.0 Writing & Printing Paper 45.4 57.6 31% 6.0% 6% 6.1% 1.1 Creamwove/Maplitho (Low Bright) 18.2 21.5 12% 4.3% 4.2% 1.2 Maplitho (High Bright) 13.7 18.1 9% 7.1% 4% 7.2% 1.3 Copier 6.2 8.0 4% 6.7% 25% 6.6% 1.4 Total Uncoated 38.0 47.6 26% 5.6% 5% 5.7% 1.5 Coated Paper 7.3 10.0 5% 8.0% 8% 8.1% 2.0 Total Packaging Paper & Board 71.4 101.0 49% 8.6% 1% 9.1% 2.1 Recycled Duplex Board (Grey/White back) 26.9 36.9 18% 7.8% 0% 9.0% 2.2 Virgin Boards (FBB/SBS) 5.7 9.3 4% 19.0% 16% 13.0% 2.3 Total Packaging Board 32.6 46.2 22% 9.4% 3% 9.1% 2.4 Packaging Papers (Kraft) 38.8 54.7 26% 8.0% 9.0% 3.0 Newsprint, Speciality, Tissue 30.2 39.4 20% 5.4% 6.8% 4.0 Grand Total 147.0 197.9 100% 7.1% 2.5% 7.7% Source: FAO/Internal estimates 订Ⓡ JK's participation increased from 13% to 22% in total paper market J K PAPER ....... Creating Lasting Impressions Slide No.6 K PAPER#7订Ⓡ NEW PROJECT AT UNIT JKPM......(I) Fibreline (215,000 TPA) Paper Machine (165,000 TPA) JK PAPER ....... Creating Lasting Impressions eds PM 6 VOITH Slide No.7 PAPER#8NEW PROJECT AT UNIT JKPM......(II) Power Plant A4 Cutting Line Robotic Palletizer Slide No.8 订Ⓡ JK PAPER ....... Creating Lasting Impressions K PAPER#954,000 44,000 34,000 28,354 24,000 14,000 4,000 651 VOLUME RAMP UP AT JKPM (MT PER QUARTER) Copier Maplitho Post Expansion 53,406 11,865 -6,000 Q1 Q2 Q3 Q4 Q1 2012-13 Copier Maplitho Q2 Q3 Q4 Q1 2015-16 28,354 29,317 28,886 30,289 26,724 33,723 39,283 40,822 42,582 44,547 50,131 51,500 53,406 651 657 728 685 605 1,791 5,435 7,777 7,777 11,112 14,749 14,800 11,865 Total Uncoated 29,005 29,974 29,614 30,974 27,329 35,514 44,718 48,599 50,359 55,659 64,880 66,300 65,271 Q2 Q3 Q4 Q1 2013-14 2014-15 订Ⓡ Way Forward Exploring new distribution avenues • Getting better customer connect • Re-establishing premium positioning of JK Maplitho grades. Copier Market in India grew by 6% in FY 2014-15 and JK's Copier Volume up by 31% JK PAPER.......Creating Lasting Impressions Slide No.9 K PAPER#10Turnover UP BY 19%* * Over corresponding quarter last year 120 100 80 60 60 40 40 20 20 订Ⓡ 700 Performance Highlights TURNOVER (Rs. Crore) 645.43 650 623.85 573.88 600 550 682.73 671.81 500 Q-1 Q-2 Q-3 Q-4 Q-1 2014-15 2015-16 EBITDA (Rs. Crore) PBT (Rs. Crore) EBITDA UP BY 150%* 100.10 91.24 322 30 20 75.22 47.80 10 24.14 8.60 1.10 0 -10 40.08 -20 -30 -28.63 -32.10 -40 Q-1 Q-2 Q-3 Q-4 Q-1 Q-1 Q-2 Q-3 Q-4 Q-1 2014-15 2015-16 2014-15 2015-16 JK PAPER .......Creating Lasting Impressions Slide No.10 K PAPER#11订Ⓡ EBIDTA -Rs.Cr Quarter wise EBITDA during Stabilization Period EBIDTA % to Net Sales 110.00 100.00 90.00 80.00 20.0% 18.0% 16.0% 14.0% 70.00 60.00 50.00 12.0% 10.0% 8.0% 40.00 6.0% 30.00 4.0% 20.00 10.00 2.0% 0.00 0.0% Avg Qtrly Q-1-2014- Q-2-2014- Q-3-2014- Q-4-2014- Q-1-2015- 2013-14 15 15 15 15 16 EBIDTA 30.94 40.08 47.80 75.22 91.24 100.10 -EBIDTA % to NS 7.2% 8.2% 9.0% 13.8% 15.9% 17.3% JK PAPER .......Creating Lasting Impressions Slide No.11 K PAPER EBITDA Margin#12订Ⓡ 1,700 1,600 1,500 1,400 1,300 1,200 1,100 Driving Cost Efficiencies - Electricity Consumption Electricity Consumption - Per MT of Paper & Board 1,000 2007 2008 2009 2010 2011 2012 2013 -JKPL 1,378 1,398 1,250 1,191 1,180 1,153 2014 2015 1,120 1,176 1,161 TNPL 1,457 1,421 1,519 1,597 1,573 1,522 1,451 1,376 1,457 -WCPM 1,155 1,166 1,131 1,193 1,366 1,272 1,258 1,258 -APPM 1,320 1,487 1,606 1,632 1,587 1,409 1,386 1,349 JK PAPER ....... Creating Lasting Impressions Slide No.12 K PAPER#13■ 订Ⓡ 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 JK Paper – Plantation Coverage under Farm Forestry - Hectare 20000 Maximum Coverage within 200 km 15000 16934 14877 11803 8504 10000 6722 4247 5000 CLONAL MULTIPLICATION HUT More than 2 years old promising clones in JKPM Rooting of CPM Clones of Subabul 0 FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 Within 200 km (Ha) I Beyond 200 km (Ha) ☐ 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 E. Urophylla E.Camal x E. uro Cta 8 -gs274 E. Camal x E. deg ■ JK PAPER .......Creating Lasting Impressions Slide No.13 K PAPER#14JK PAPER CSR ACTIVITIES ENVIRONMENT INITIATIVES Pursuing enriching the green cover through Social Farm Forestry EDUCATION INITIATIVES . . Schools - three schools providing education to over 3200 students Adult Literacy Programme – enabled 11,000 illiterate to become literate HEALTH CARE INITIATIVES • Organizing Healthcare Camps - 7500 patients covered in 2014-15 • Health & Hygiene awareness for Adolescent girls • LIVELIHOOD INTERVENTIONS 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 - Slide No.14 订Ⓡ JK PAPER .......Creating Lasting Impressions K PAPER#15Financial Highlights - In Rs. Cr. SI. No. 1 Quantity Financial Year >>> 2001-02 2005-06 2010-11 2011-12 2012-13 2013-14 2014-15 CAGR % Q1 (2002-15) (2015-16) In MT In % 1.1 Production 164,972 184,982 218.330 283.033 292,582 328,321 413,835 111,576 1.2 Capacity Utilisation 110% 103% 121% 98% 101% 85% 91% 98% 1.3 Sales Volume 172,894 197,313 267,081 277.599 290,421 321,094 398,387 7% 108,435 2 Operating Results In Rs. Cr. 2.1 Turnover (Gross Sales) 626 845 1.433 1,557 1,721 2.025 2.515 11% 683 2.2 Net Sales 480 664 1,231 1,328 1.453 1,721 2,139 12% 579 2.3 Operating Profit (EBITDA) 118 135 259 153 133 124 254 6% 100 2.4 Cash Profit (PBDT) 68 101 207 102 83 2 50 49 2.5 Profit/(Loss) Before Tax (PBT) 31 54 136 29 25 (123) (51) 24 2.6 Profit/(Loss) After Tax (PAT) 17 36 106 49 38 (77) (13) 17 3 Key Ratios 3.1 EBITDA as % to Net Sales 24.6% 20.3% 21.0% 11.5% 9.1% 7.2% 11.9% 17.3% 3.2 Equity (Net Worth) - Rs. Cr. 57 350 584 848 872 795 775 792 3.3 Return on Equity (ROE) 16.4% 13.3% 20.2% 6.9% 4.4% -ve -ve 8.5% 订Ⓡ JK has been a consistent performer with 12% y-o-y growth in Net Sales J K PAPER ....... Creating Lasting Impressions Slide No.15 JK PAPER#16Year End Total Assets Gross Block JK Paper - Balance Sheet - In Rs. Cr. 2006 June 1030 2011 2012 March March 2013 2014 2015 March March March 1,251 2,063 2,738 3,058 2,897 1005 1,452 1,479 1,516 3,041 2,996 Net block 678 841 803 768 2,465 2,294 CW IP 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 Reserves 78 78 137 137 137 137 272 506 711 735 658 638 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 订Ⓡ *5.2 times based on Q1 (FY 2015-16) annualised EBITDA JK PAPER.......Creating Lasting Impressions Slide No.16 JK PAPER#17Disclaimer 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. 订Ⓡ For further information, please speak to Mr. V. Kumaraswamy, Chief Finance Officer, JK Paper Limited at 91-11-23724337. Email: [email protected] JK PAPER ....... Creating Lasting Impressions Slide No.17 K PAPER#18订Ⓡ THANK YOU JK PAPER ....... Creating Lasting Impressions Slide No.18 K PAPER