Slide 1: Q3 FY16 Investor Presentation
GLOB U S S P IRI T S L IMI T E D Q3 FY16 Investor Presentation F E B R U A R Y 2 016
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Globus Spirits’ future business developments and economic performance. W
Slide 3: Agenda
AGENDA Q3 & 9M FY16 Performance Key Highlights 4 Financial Performance 5 Annexure Company Overview. 12 Shareholding Pattern 18 Financials 19 3
Slide 4: Q3 FY16 – Key Performance Highlights – Healthy Growth & Profitability
Q3 FY16 – KEY PERFORMANCE HIGHLIGHTS – HEALTHY GROWTH & PROFITABILITY • Robust traction in IMIL & Bulk Alcohol as well as better realisation in DDGS led to strong performance; Supported by higher production and capacity utilization of 94% (Vs. 77% in Q3 FY15) – Standalone revenue from operations up
Slide 5: Q3 FY16 – Update on Expansion
Q3 FY16 – UPDATE ON EXPANSION • East India expansion advancing well – on schedule to commission facilities in Bihar and West Bengal in Q1 FY17 – Key driver for significant top-line and bottom-line growth in FY17 • IMIL ban in Bihar not expected to impact greenfield operations of the Company as bulk
Slide 6: Q3 FY16 YoY – Strong Growth & Profitability
Q3 FY16 YoY – STRONG GROWTH & PROFITABILITY Q3 FY16 Q3 FY15 • Revenue from operations (Net) up 26% YoY to Rs. 1,967 mn in Q3 FY16 driven by robust growth in IMIL, Bulk Alcohol and By-products segment – IMIL volumes improved by 11% YoY led by strong growth Rs. 1,967 mn 26 % Rs. 1,556 mn in all IMIL m
Slide 7: 9M FY16 YoY – Robust Performance
9M FY16 YoY – ROBUST PERFORMANCE 9M FY16 9M FY15 • Revenue from operations (Net) up 19% YoY to Rs. 5,162 mn in 9M FY16 driven by growth in IMIL and By- products segment – IMIL volumes improved by 28% due to growth in all IMIL Rs. 5,162 mn 19 % Rs. 4,330 mn markets; Others segment driven by value add
Slide 8: Robust IMIL Performance Driving Consumer Business
ROBUST IMIL PERFORMANCE DRIVING CONSUMER BUSINESS Breakup of Revenue from Operations IMFL, 0% Bulk Alcohol, 28% • Share of consumer business increased from 45% in Q3 FY15 to 47% in Q3 FY16 driven by strong performance of the IMIL business Q3 Franchisee IMFL • IMIL revenues increased by 30% YoY to Rs
Slide 9: IMIL Driven by Strong Traction in Rajasthan & Delhi
IMIL DRIVEN BY STRONG TRACTION IN RAJASTHAN & DELHI • Aggregate IMIL revenues up 30% YoY, driven by improved Rajasthan IMIL offtake in Rajasthan & Delhi, and supported entry into Bihar 8,000 1.77 2.50 6,000 1.50 2.00 • Launched in Jan 2015, Bihar sold 0.5 mn cases in Q3 FY16 4,000 1.50 1.00 accounti
Slide 10: Manufacturing: Backbone to Consumer; Driven by Value Added DDGS
MANUFACTURING: BACKBONE TO CONSUMER; DRIVEN BY VALUE ADDED DDGS Production & Capacity Utilization 94% 22.0 77% 100% • Capacity utilization improved substantially to 94% in 11.0 50% 17 21 Q3 FY16 from 77% in Q3 FY15 resulting in production 0.0 0% of 13 mn BL in Q3 FY16 Q3 FY15 Q3 FY16 • Bulk revenues
Slide 11: Q3 FY16 QoQ – Strong Performance
Q3 FY16 QoQ – STRONG PERFORMANCE Q3 FY16 Q2 FY16 • Revenue from operations (Net) up 22% QoQ to Rs. 1,967 mn in Q3 FY16 driven by balanced growth across all the segments Rs. 1,967 mn 22 % Rs. 1,618 mn – Higher IMIL offtake combined with strong growth in Bulk Alcohol, Franchise IMFL and DDGS resulted
Slide 12: Agenda
AGENDA Q3 & 9M FY16 Performance Key Highlights 4 Financial Performance 5 Annexure Company Overview. 12 Shareholding Pattern 18 Financials 19 12
Slide 13: Globus 360º Alcobev Player - Foray into East
GLOBUS 360º ALCOBEV PLAYER - FORAY INTO EAST • No. 1 private player in Rajasthan IMIL with 25% market share – 5.6 mn cases in sold in FY15, up 20% YoY • No. 2 private player in Haryana with 10% market share – 2.3 mn cases in sold in FY15 • Enters Bihar in Jan-15; Distillery to be set up in Bihar and
Slide 14: Leveraging a Strong 360º Business Model
LEVERAGING A STRONG 360º BUSINESS MODEL ~ 90 mn BL (expected to go upto ~150 mn BL with East India commissioning in FY17) of ENA capacity Focus on value added products such as DDGS 360 o Focused on building a Bottling tie-ups with prominent profitable and niche portfolio of IMFL players IMFL
Slide 15: Globus Plans
GLOBUS PLANS PRESENT FUTURE • Established 360⁰ model in North • Large market share in IMIL by India (Haryana & Rajasthan) offering quality products to the • Amongst the largest grain based consumer distilleries in India • Establish sustainable premium • Strong IMIL brands that have brands in IMFL ac
Slide 16: Expansion into East
EXPANSION INTO EAST Existing facilities at Haryana & Rajasthan Severe Alcohol Deficit in East India (mn ltrs) Greenfield facilities in West Bengal/ Bihar (Under Construction) 86 98 78 • Strong fit with 360⁰ Model 55 31 20 • Large alcohol deficit, growing alcohol consumption Bihar West Bengal Consump
Slide 17: IMIL Brands Showcase
IMIL BRANDS SHOWCASE Nimboo Ghoomar 1st IMIL brand in India positioned Tribute to Rajasthani folk as awesome mix of natural lemon dance ; blend popular in the flavor with strong yet smooth harsh winter months of the blend profile desert region Heer Ranjha Narangi Tribute to the most popular Popular
Slide 18: Unique Competitive Strengths
UNIQUE COMPETITIVE STRENGTHS 360° Business Model Efficient Operations • Only company present across full alcobev value chain • State-of-the-art plants across three locations using latest distillation technology, zero • Helps capture IMFL growth via franchisee discharge and highest grain- recovery in
Slide 19: Shareholding Pattern
SHAREHOLDING PATTERN Individuals & Others 22% Corporatee Bodies Promoter 4% Group 57% FII 17% As on December 31, 2015 Outstanding shares – 28.8 mn Major Non-Promoter Shareholders % shareholding Name % Share Templeton Strategic Emerging Markets Fund IV, LDC 17.49% 19
Slide 20: Q3 FY16: Profit & Loss Statement
Q3 FY16: PROFIT & LOSS STATEMENT Standalone Particulars (In Rs MN) Q3 FY16 Q3 FY15 YoY (%) Q2 FY16 QoQ (%) 9MFY16 9MFY15 YoY (%) Gross Sales 2668.13 2304.56 16% 2159.82 24% 7167.00 6538.23 10% Less- Excise duty & Discounts 713.87 752.23 -5% 548.18 30% 2023.94 2213.51 -9% Net Sales 1,954.26 1,552.33
Slide 21: Q3 FY16: Key Ratios
Q3 FY16: KEY RATIOS Standalone Key Ratios as a % of Total Revenue Q3 FY16 Q3 FY15 Q2 FY16 9MFY16 9MFY15 EBITDA 10% 6% 8% 9% 8% PAT 2% 0% 1% 2% 1% Total Expenditure 91% 94% 92% 91% 92% Raw material 58% 62% 58% 58% 92% Employee Cost 2% 2% 3% 2% 2% Other Expenditure 31% 30% 32% 30% 28% Intt 2% 3% 3% 2%
Slide 22: Q3 FY16: Balance Sheet
Q3 FY16: BALANCE SHEET Particulars (In Rs MN) 31st December 2015 31st March 2015 Liabilities Shareholders’ Fund 3,599.0 3,550.7 Non-Current Liabilities 1,604.7 979.9 Long term borrowings 1,137.6 499.6 Deferred tax liabilites (Net) 453.0 468.0 Other long term liabilities/ provisions 14.0 12.2 Current
Slide 23: About Us
ABOUT US Established in 1992, Globus Sprits Limited (BSE code: 533104, NSE Id: GLOBUSSPR, ISIN Id:INE615I01010) is engaged in manufacturing, marketing and sale of Indian Made Indian Liquor(IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol and contract bottling for established IMFL brands. The C