Waterbase Limited · BSE:WATERBASE
Waterbase — The Waterbase — Investor Presentation (June 2016)
46 slides from Waterbase's investor presentation, June 2016
Slide 1: The Waterbase Limited Investor Presentation June 2016
The Waterbase Limited Investor Presentation June - 2016
Slide 2: Contents and Safe Harbour Statement
Contents 2 Safe Harbour Statement: Certain statements in this presentation concerning our future plans, growth prospects, etc. are forward looking statements, 3 Company Overview which involve a number of risks and uncertainties that could cause actual results to differ materially from those indicate
Slide 3: Company Overview
Company Overview 3
Slide 4: Company Overview
Company Overview 4 Pioneer in Aquaculture business – over 20 years of experience – Incorporated in 1987 Rich Legacy: Part of the diversified Karam Chand Thapar Group (KCT Group) which has interests in coal, real estate, infrastructure, manufacturing and aquaculture Revenue Debt-Equity Wide Pre
Slide 5: Locations
Locations 5 Registered office and factory Ananthapuram Village, T.P. Gudur Mandal, Delhi Nellore – 524 344, Andhra Pradesh. Corporate Office Kolkata No. 37, Thapar House, Montieth Road, Egmore, Chennai – 600 008 Nellore Group Corporate Office Chennai Delhi Kolkata Corporate Office Factory
Slide 6: Key Strengths
Key Strengths 6 Strong Brands Rich Legacy Technical Expertise • Several popular brands which are • Over two decades of expertise in • TWL enjoys unparalleled favoured by shrimp farmers the business- strong connect with technical expertise in the industry suppliers and farmers as the Pioneer • Enjoy
Slide 7: Product Portfolio
Product Portfolio 7 Shrimp Feed Processed Shrimp
Slide 8: R&D Strengths
R&D Strengths 8 Over 20 years of in-house Proven Research & competence in Development research and Works closely (R&D) Large unparalleled with reputed activities repository of technical institutes in the data: area of Aqua Feed nutrition, expertise in the Nutrition diseases, soil industry Research a
Slide 9: R&D Initiatives
R&D Initiatives 9 Promoting gut health & a stable gut BAY WHITE Enriched microflora: Natural antibacterial action Details Feature 1 Feature 2 USP Natural Enhances antibacterial hepatopancreas action function Benefits Stabilization of Enhanced Boosting energy reserves (nutritional status the gut ener
Slide 10: Shareholding Pattern as on 31st March, 2016
Shareholding Pattern as on 31st March, 2016 10 Indian Public 31.6% Promoters 52.5% Others 0.7% NRI 4.0% Corporate Institutions Bodies 11.0% 0.2% Note: •Karam Chand Thapar & Bros. (Coal Sales) Ltd had acquired 19,10,500 shares of the company on 30th & 31st March, 2016 which is not reflected in the ab
Slide 11: Growth Strategy
Growth Strategy 11
Slide 12: Business Strategy
Business Strategy 12 Strateg y $ $$ Increase Scale Diversify Market Presence Diversify Revenue Streams
Slide 13: Business Strategy: Increase Scale
Business Strategy 13 Installed capacity at 35,000 MTPA. Post merger of PFL, combined capacity of 1,10,000 MTPA will be higher by 300% Increase volumes and market share by leveraging on strength of highly skilled technical manpower, brand salience, wider product portfolio, improved distribution n
Slide 14: Business Strategy: Diversify Market Presence
Business Strategy 14 Widening distribution infrastructure to enhance pan-India presence by consolidating our position in potential markets like West Bengal, Gujarat and foraying into Odisha. Will strengthen farmer network in Tamil Nadu & AP Strengthening distribution network by adding new deal
Slide 15: Business Strategy: Diversify Revenue Streams
Business Strategy 15 Entering more verticals within the value chain – set to emerge as an integrated player from farm to fork Have commenced setting up of Hatcheries to supply good quality seeds for shrimp farming - location and design finalized; expected completion in Q4 FY17 Restarted direct
Slide 16: Value Chain – Shrimp Industry
Value Chain – Shrimp Industry 16 Industry stages Strategy In the process of setting up Production of seeds hatcheries. First (P.L) for sale to hatchery expected to Current Status Hatchery farmers be completed by end FY17 Primary business for the Company Strategy The Company has Shrimps are grown G
Slide 17: Scheme of Amalgamation - Transaction Highlights
Scheme of Amalgamation - Transaction Highlights 17
Slide 18: Transaction Details
Transaction Details 18 Swap Ratio: 4:17; TWL to issue 4 fully paid up equity share for every 17 Shareholders – Significant Value Creation equity shares held by shareholders in PFL Pre-Amalgamation Post-Amalgamation Appointed Date of Scheme: 1st August 2015 Non - Completion Date (exp): Q2 FY17
Slide 19: Background - Pinnae Feeds Limited
Background - Pinnae Feeds Limited 19 • Pinnae Feeds Ltd., wholly owned subsidiary of Karam Chand Financials : Thapar & Bros (Coal Sales) Limited; the flagship company of • Revenues of Rs. 36.5 crore in FY15 from supply of feed to the KCT Group (promoters of TWL) TWL • Incorporated in: July, 2012 • G
Slide 20: Rationale for Amalgamation
Rationale for Amalgamation 20 TWL’s production capacity will increase from 35,000 MTPA to 1,10,000 MTPA Operational Consolidation Efficiencies of expertise TWL + PINNAE FEEDS = Shareholder WINNING Exploit Value COMBINATION Business Creation Synergies Optimal utilization of resources
Slide 21: Industry Overview
Industry Overview 21
Slide 22: Demand for seafood is rising globally
Demand for seafood is rising globally 22 Total seafood production in million tonnes Seafood production is expected to increase from 200 130mn tonnes in 2000 to ~170mn tonnes in 2030 150 Within this, the share of wild catch is expected to go down and incremental volumes are expected 100 largely f
Slide 23: Global & Regional Trends
Global & Regional Trends 23 World Shrimp Aquaculture by Species: 6.0 Million M T 75% % Indicate the share of P. vannamei 5.0 73% 70% 71% 65% 4.0 67% 3.0 59% 2.0 45% 16% 12% 1.0 0.0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 P. v
Slide 24: Robust Industry Growth
Robust Industry Growth 24 In FY15, Marine product exports from India were Export Performance Since 2002-03 (US $ Million) at an all-time high of USD $5.5 billion. CAGR – 10.2% o MPEDA’s stated target for the year 2015-16 US $ Million is US $ 6.6 billion Marine product exports crossed all previou
Slide 25: Driven by strong growth in Shrimp Exports
Driven by strong growth in Shrimp Exports 25 Volume Contribution During 2014 -15 shrimp aquaculture has shown Frozen Non-frozen Others tremendous growth (30.64%) and achieved highest 12% 10% production Frozen Cepholopo ds Frozen shrimp continued to be the major export item in 15% the export bask
Slide 26: Shrimp Exports
Shrimp Exports 26 EU 2014 2015 73,487MT 81,952MT 24% 23% Japan 2014 2015 USA 28,719MT 30,434MT 10% 9% 2014 2015 95,972 MT 112,702 MT 32% 32% South East Asia 2014 2015 52,533 MT 69,068MT 17% 19% Source: MPEDA
Slide 27: Factors behind Success of Shrimp Farming in India
Factors behind Success of Shrimp Farming in India 27 India has abundant coastline and its climatic conditions are favorable for shrimp Favorable Topography farming Availability Of Abundant farm labour at reasonable cost, availability of other inputs such as land and power and sustained high levels o
Slide 28: Key Challenges
Key Challenges 28 Inherent Risks • Diseases, weather patterns, fluctuating prices add to the unpredictability of the industry Fragmented Industry • Due to its nature it is difficult to regulate and ensure industry–wide implementation of standards. The unorganized structure also leads to challenges i
Slide 29: Growth Drivers
Growth Drivers 29 Aquaculture production is more Rise of the cost effective protein Increasing compared to consumption global demand agriculture/animal in the Indian of shrimps husbandry production diet Increasing Massive shift Rise in per preference for in Freshwater Income Growth capita income cos
Slide 30: Financial Overview
Financial Overview 30
Slide 31: Financial Performance
Financial Performance 31 INR Cr. Growth Growth Particulars Q4 FY16 Q4 FY15 (%) FY16 FY15 (%) Income from Operations 64.3 48.4 33% 318.6 277.6 15% EBITDA -1.3 4.5 NA 2.92 30.9 -91% EBITDA Margin (%) NA 9.3% - 0.9% 11.1% - PAT -1.3 3.9 NA 0.7 19.5 -96% PAT Margin (%) NA 4.7% - 0.2% 6.7% - UPDATES TO T
Slide 32: Financial Performance
Financial Performance 32 Revenues 5 year CAGR : 32.57% EBITDA Margins 350 318.6* 40 15.0% 277.6 11.5% 300 10.2% 10.2% 23.4 250 228.2 30 7.4% 10.0% 200 32.0 (in Cr) 157.0 20 5.0% 150 103.5 23.3 0.9% 10.5 11.6 100 10 0.0% 50 2.9 0 0 -5.0% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 PBT Margins P
Slide 33: Key Financials
Key Financials 33 Book value per share (Rs.) Earnings Per Share 30 6 25.7 25.9 5.1 25 23.4 22.5 5 4.4 21.1 20 4 (in Cr) (in Cr) 15 3 2.2 2.3 10 2 5 1 0.2 0 0 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Return on net worth (%) Return on Capital Employed (%) 25 40 19.7 29.6 20 30 15.7 23.8 15 10
Slide 34: Key Financials
Key Financials 34 Net Worth Debt Equity Ratio 120 1 99.2 99.9 0.5 100 86.7 1 80 0 60.3 0.3 (in Cr) 54.2 0 60 40 0 0.1 0.1 0.1 20 0 0 0 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
Slide 35: Business Updates
Business Updates 35
Slide 36: Business Update
Business Update 36 Revenue Mix Feed Business • Launch of high performance Shrimp feed - Baywhite Enriched Processing • Obtained BAP certification for the Feed Others Plant 5.27% 0.28% • Baring Andhra robust growth in other states • Expanded footprint in West Bengal & Gujarat Processing Business • Re
Slide 37: Q4 & FY16 – Business Review
Q4 & FY16 – Business Review 37 • Resumed direct shrimp exports • Plan to set up Hatcheries is under with shipments directed towards execution – recent floods have Europe and U.S delayed progress Exports Hatcheries • Location and design finalized – • Despatched over 200 MT construction activity to •
Slide 38: Extra-ordinary Events - 2015
Extra--ordinary Events- Extra Events- 2015 38 • Management considered and accepted the One Time Settlement (OTS) proposal made by Canara Bank towards settlement of all the outstanding dues – Payments have been made on Nov 18 and Nov 19 to Canara Bank – Canara bank has issued a no dues certificate an
Slide 39: Enhancing Brand Awareness
Enhancing Brand Awareness 39 Shop Signage In-store branding
Slide 40: Marketing & Distribution Initiatives
Marketing & Distribution Initiatives Farmer Meets
Slide 41: Industry Trends & Outlook
Industry Trends & Outlook 41
Slide 42: Global Demand & Production Trends in 2015
Global Demand & Production Trends in 2015 42 Despite a softer price trend, shrimp imports in the traditional developed markets remained disappointing in 2015 Global Demand The US which is the largest shrimp importer globally, elicited mixed signals due to unstable wholesale prices. There were
Slide 43: Indian Market Trends in FY16
Indian Market Trends in FY 16 43 Shrimp production adversely impacted in FY16 due to a combination of falling prices, diseases and inclement weather Lower farm-gate prices resulted in reduced stocking densities. Localized outbreak of diseases, white spot, EHP , white faeces, white gut impacted Shrim
Slide 44: Outlook
Outlook 44 • The Global prices for shrimp have been largely stable over the last year. • With diseases still rampant in Vietnam and China demand for Shrimp from other countries, including India, would be higher. • Due to lower production in H2 of FY 16 there has been an increase in the farm gate pri
Slide 45: Glossary
Glossary 45 SPF Specific pathogen free FCR Feed conversion ratio MPEDA Marine Products Exports Development Authority CAA Coastal aquaculture authority MTPA Metric tonne per annum a group of mature individuals used in Broodstock aquaculture for breeding purposes P. Monodon Black Tiger P. Vannamei Whi
Slide 46: Thank You
Thank You For more information about us, please visit www.waterbaseindia.com OR contact: G. Venkatram (C S & CO) Mayank Vaswani / Suraj Digawalekar The Waterbase India Limited CDR India Phone: +91 44 30127009 Extn: 202 Phone : +91 22 6645 1230 / 1235 Email: gvenkatram@waterbaseindia.com Email: mayan