EPL : Annual Report 2021-22

EPL Limited

Annual Report 2021-22

Leading the pack

Contents

002 From the MD & CEO's desk

004 EPL at a Glance

006 Sustainability - Commitment at EPL

008 - Product Sustainability

012 - Process Sustainability

016 - People Sustainability

022 IT Initiatives

024 Greening Lives, Sustaining Communities

028 Awards & Recognition

030 Key Performance Indicators

032 The Leadership Team

033 The Management Team

1. Board Report

1. MDA

049 Corporate Governance

082 Five-Year Summary

PAGE

006

PAGE

016

PAGE

002

084 Auditors Reports - Standalone

092 Financial Statements - Standalone

148 Auditors Reports - Consolidated

154 Financial Statements - Consolidated

PAGE	PAGE
008	012

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022	024

WE believe that businesses with purpose have a long term positive impact on

people, the planet and profit. In this regard, at EPL, we are consistently driven by our purpose of 'Leading the Pack sustainably'.

This reflects our ambition to be the most sustainable packaging company. This tagline is an upfront statement of our leadership in sustainability.

Contents

From the MD & CEO's desk

EPL at a Glance

Sustainability - Commitment at EPL

• Product Sustainability
• Process Sustainability
• People Sustainability IT Initiatives

Greening Lives, Sustaining

Communities

Awards & Recognition

Key Performance Indicators

The Leadership Team

The Management Team

Board Report

MDA

Corporate Governance

Five-Year Summary

Auditors Reports - Standalone

Financial Statements - Standalone

Auditors Reports - Consolidated

Financial Statements - Consolidated

FROM THE MD & CEO's DESK

We are further committed to putting sustainability at the heart of

everything we do

Anand Kripalu

Managing Director & Global CEO

Dear

Valued Stakeholders

It is my privilege to present EPL's Annual Report for FY22.

FY22 was an extremely challenging year with Covid-19 impacting human lives and livelihoods, along with severe business disruptions across the globe. The year also saw unprecedented volatility and inflation in input costs - be it polymers, aluminium, packaging, or freight. The start of the Ukraine - Russia war towards the end of the financial year also impacted the business to some extent. But, every calamity comes with an opportunity, and we have witnessed this through unimaginable collaborations among all our regional and functional teams. I would like to express my gratitude to our shop- floor employees - front liners at EPL

• who kept the wheels of the business turning continuously during this challenging period and ensured that not a single day was lost in any of our plants.

In this context, I am pleased to inform you that EPL posted double- digit growth and demonstrated the ability to be resilient in the most trying times. EPL focused on what is within management control - price increase to customers, accelerated cost savings, and improvement in our procurement and production planning process. As a part of our continuous cost reduction efforts, EPL has also begun a War on Waste (WoW) programme with an endeavour to minimise losses at every stage of the value chain.

I am confident that the company is now set for even stronger growth in the coming years. With EPL's re-calibrated strategy in FY22, our ambition is to be the most sustainable packaging company in the world. We are committed to putting sustainability at the heart of everything we do - whether it is in our service to customers, or indeed in how we run our business. We have a 4x4 mantra for achieving our performance ambition that will focus on 4Cs - Category, Customer, Country, and Cost and 4 enablers -

Innovation, Bold Sales & Marketing,

Digital Transformation, and a One

EPL Ethos.

EPL will continue to play a proactive role in driving the development

of sustainable solutions -thereby making our customers more sustainable. We have stepped up our efforts to innovate and 'lead the pack' with Platina -with an expanded set of 100% recyclable offerings. This has ensured a ramp up of Platina volumes across several of our large as well

as small customers such as Colgate, P&G, Unilever, GSK, Hela, Vicco, etc. We expect this to further ramp up exponentially in FY23.

Significantly, we won the "World Star Global Packaging Award" for sustainable offerings in the Health and Personal care category. We have also been awarded 4 SIES SOP awards in India in the field of innovation.

Being one of the world's leading packaging solution providers, we know that the future of business depends on being environmentally sustainable. Organisations like us can play a crucial role by lowering emissions, reducing our carbon footprint, conserving energy, and collaborating with customers and suppliers to make a major difference. Towards this end, EPL has put in place actions for combating climate change, driving inclusive growth, enabling social equality, and providing support to communities within which we operate.

EPL has become a signatory to the New Plastic Global Commitment towards building a circular economy, an initiative led by

the Ellen MacArthur Foundation in collaboration with the UN environment programme. We are also a founding member of the India Plastics Pact. We have also aligned our activities voluntarily to the Ten Principles of the United Nation's Global Compact (UNGC) on Environment, Labour, Human Rights and Anti-Corruption. We have been awarded a 'Silver Medal' in the ECOVADIS 2022 Sustainability assessment. We have also been awarded a 'B' rating by the #CDP, highlighting our focused actions toward tackling climate change and ensuring water security. We have been rated 'A' by CDP for our supplier engagement.

We are proud to have received the prestigious "Best Governed Company" award in the 21st edition of the "ICSI National Award for Excellence in Corporate Governance", reflecting the strength of the board and management.

These initiatives and achievements further strengthen our resolve and commitment to building a sustainable future.We recently published the second edition of our Sustainability Report to highlight our achievements and initiatives on sustainability. This is available on our website.

On behalf of the Board and the employees of EPL,

I would like to thank you, our valued stakeholders, for being a part of our journey to lead the pack sustainably!

002	EPL LIMITED	ANNUAL REPORT 2021-22	003

Contents

From the MD & CEO's desk

EPL at a Glance

EPL at a	"Leading the Pack Sustainably" reflects on our ambition as the
glance	global leader in the area of Sustainable Packaging

Planet

Sustainability - Commitment at EPL

• Product Sustainability
• Process Sustainability
• People Sustainability IT Initiatives

Greening Lives, Sustaining

Communities

EPL Limited, headquartered in Mumbai, India, is one of the world's leading speciality

packaging companies.

Driven by our differentiating attributes of innovation, customer service, and value- leadership, we have been on an illustrious growth path since our inception in 1982

and have become the preferred packaging partner to the world's largest FMCG brands.

Our global manufacturing footprint comprises over 20 state-of-art facilities in nine countries - China, Colombia, Egypt, Germany, India, Mexico, the Philippines, Poland, and the United States.

Our diverse, strong and committed workforce of over 3,200 people (drawn from 21 different nationalities), has helped us

in achieving the milestone of manufacturing and supplying over eight billion tubes annually.

	28%
300+	Reduction in total emission	30%
compared to FY21
25%
Million tubes made out of	By 2030, we commit to reduce
Reduction in energy consumption

Awards & Recognition

Key Performance Indicators

The Leadership Team

The Management Team

Board Report

MDA

Corporate Governance

Five-Year Summary

Auditors Reports - Standalone

Financial Statements - Standalone

Auditors Reports - Consolidated

Financial Statements - Consolidated

We cater to a variety of industries such as Beauty & Cosmetics, Pharma & Health, Food & Nutrition, Oral Care

and Home Care.

Position			People
1
st			3,200+
Largest global manufacturer of Lamitubes		Team size
~ 8	20+				%
Billion tube	Factories
Nationalities		89
supply	globally
				of development
23,949	75+			intervention
		completed for high-
				potential talent
Capital Employed	Patents granted			3
(H million)				%
		• Indians: 37.28%
Received the		• Other Asians: 20.11%
World Goldstar		• Others: 42.61%		increase in employee
			engagement score
packaging awards
2022 in the health
and personal care
segment

recyclable laminates

compared to FY21

our carbon footprint

Performance

				Sales by region	16.8%
H million	FY22	FY21	Growth
Revenue	34,328	30,916	11.0%
EBITDA	5,783	6,155	(6.0)%		EBITDA Margin
Net Profit	2,144	2,391	(10.3)%
EPS (H)	6.79	7.58	(10.4)%		15.0
ROCE (%)	15.0	19.7	(477)bps
	%
Net Debt	4,645	3,127	48.5%	• AMESA: 34%
• EAP: 24%
Capex	2,755	1,760	56.5%	• America: 21%	Return on Capital
				• Europe: 21%	Employed

Mission

Capital Efficient, Consistent

Earnings Growth

004	EPL LIMITED	ANNUAL REPORT 2021-22	005

Contents

From the MD & CEO's desk

EPL at a Glance

Sustainability - Commitment at EPL

• Product Sustainability
• Process Sustainability
• People Sustainability IT Initiatives

Greening Lives, Sustaining

Communities

Awards & Recognition

Key Performance Indicators

The Leadership Team

The Management Team

Board Report

MDA

Corporate Governance

Five-Year Summary

Auditors Reports - Standalone

Financial Statements - Standalone

Auditors Reports - Consolidated

Financial Statements - Consolidated

Sustainability-

Commitment at EPL

CLIMATE change is a significant threat, and we can do a lot to mitigate it, whether it's by

lowering emissions, reducing our carbon footprint, conserving energy, or collaborating with others to make a major difference. This is more than a goal; it is our pledge to make the world a better place. At EPL, we believe that we can make a significant contribution to environmental protection and resource optimisation for future generations. We have integrated sustainability into our company's strategy, procedures, and core operations, and are developing

a comprehensive sustainability roadmap that will define and lay out our objectives and action plans for transforming our operations in a more sustainable and profitable manner.

We plan to work with and encourage our value chain partners - suppliers and customers - to make ethical business decisions. ESG is a holistic priority area for us at EPL, encompassing Product, Process and People Sustainability.

EPL has joined the United Nations Global Compact (UNGC) in January 2022 to take responsible actions for achieving a better world. We are committed to integrating the UNGC's Ten Principles on Human Rights, Labour, Environment, and Anti Corruption as a part of our business strategy and company culture and support the UN's 17 Sustainable Development Goals (SDGs).

EPL has become a signatory to the Global Commitment towards building a circular economy, an initiative led by the Ellen MacArthur Foundation in collaboration with the UN environment programme.

This commitment is a significant step towards accelerating our sustainability journey.

006	EPL LIMITED	ANNUAL REPORT 2021-22	007