Taghleef Industries Holdco Ltd.

Overview Key strengths Key risks Fourth-largest biaxially oriented polypropylene (BOPP) producer globally, with about 4% market share, S&P Global Ratings-adjusted EBITDA of $158.4 million in 2022, and a diversified geographic footprint across six continents. Highly fragmented, commoditized, and competitive BOPP film industry. Resilient operating performance thanks to high share of food packaging end markets and a pass-through model Narrow product focus with exposure to a single packaging substrate. Long dated maturity profile with debt maturing in 2026, albeit with exposure to floating interest rates. Relatively low profitability in terms of adjusted EBITDA margins, which we expect will return to 12%-13% in 2023 from 11.4% in 2022. A high proportion of the company's contracts have raw material pass-through clauses (52% of

...Despite materially higher energy costs in 2022, Taghleef's performance was in line with our expectations. A high proportion of the company's contracts have raw material pass-through clauses (52% of total sales volumes), allowing it to efficiently pass on polypropylene (PP) resin cost fluctuations to customers. Taghleef has also been able to regularly pass on higher energy costs, albeit...

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