Apex Frozen Foods Ltd. · NSE:APEX
Apex Frozen Foods — FY2018 Earnings Presentation
28 slides from Apex Frozen Foods's earnings presentation, August 2018
Slide 1: Investor Presentation - Apex Frozen Foods Limited
Investor Presentation Apex Frozen Foods Limited CIN: L15490AP2012PLC080067 Financial Year 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Apex Frozen Foods Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not f
Slide 3: Table of Contents
Table of Contents 1 Key Business Highlights 2 Industry Trends 3 Our Core Strengths 4 Past Performance Investor Presentation FY18 Apex Frozen Foods Limited 3
Slide 4: Key Highlights – FY18
01 Key Highlights – FY18 Investor Presentation FY18 Apex Frozen Foods Limited 4
Slide 5: Management Commentary on FY18 performance
Management Commentary on FY18 performance Our performance in FY18 The Company began a new phase in its journey this year, when it got listed as a Public Company on the NSE and the BSE in Sep-17. On the Business front too, the past fiscal year has been a remarkable one, as we witnessed improvement in
Slide 6: Completion Status of the New Plant – Funded by IPO Proceeds
Completion Status of the New Plant – Funded by IPO Proceeds Capacity expansion, to cater the growing demand – MTPA capacity, % utilisation (sales/capacity*100) Owned Leased Shrimp processing plant with total installed capacity of 20,000 MTPA: 15,000 MTPA is for Ready-To-Cook (RTC) products 5,0
Slide 7: Other Key Updates - FY18
Other Key Updates - FY18 • Commissioned one new Hatchery in FY18, taking the total to three Hatcheries, having a combined breeding capacity of over 1bn SPF (specific pathogen free) seeds Hatchery • Plan to commission one more Hatchery in FY19, enhancing the capacity to ~1.4bn SPF seeds Operations •
Slide 8: Operational Performance – FY18 (1)
Operational Performance – FY18 (1) Higher demand, supported by enhanced capacity… …led to strong growth in total sales (MTPA) in FY18 Capacity (MTPA) Utilisation Sales (MTPA) 93% 81% 14,146 15,240 12,240 9,897 FY17 FY18 FY17 FY18 Increased leased capacity by 3,000 MTPA Growth was supported by higher
Slide 9: Operational Performance – FY18 (2)
Operational Performance – FY18 (2) Average realisation* (Rs/kg) in FY18 remained flat y-o-y Well diversified geographical mix (Revenue Mix) 10.6% 17.6% 7.6% 729 6.2% 720 FY17 FY18 717 718 76.2% 81.8% FY17 H1FY18 9MFY18 FY18 Shrimp prices remained firm in H1FY18 Our revenue contribution from European
Slide 10: Profit & Loss Highlights – Q4 & FY18
Profit & Loss Highlights – Q4 & FY18 Standalone (Rs mn) Q4 FY18 Q4FY17 Y-o-Y % FY18 FY17 Y-o-Y % Net revenue 2,031 1,640 23.8 9,986 6,987 42.9 Other income 29 45 -34.6 199 106 88.1 Total Income 2,060 1,685 22.3 10,185 7,093 43.6 Raw material 1,394 1,224 13.9 7,031 5,317 32.2 Employee expenses 106 46
Slide 11: Balance Sheet Highlights – FY18
Balance Sheet Highlights – FY18 Standalone (Rs mn) Mar'18 Mar'17 Standalone (Rs mn) Mar'18 Mar'17 Shareholder’s Funds 3,023 1,094 Non-current assets 1,373 857 Share capital 313 240 Net block 1,111 829 Reserves & surplus 2,710 854 Non-current liabilities 66 273 Capital work-in-progress 209 8 Long ter
Slide 12: Industry Trends
02 Industry Trends Investor Presentation FY18 Apex Frozen Foods Limited 12
Slide 13: Global Seafood Industry – Overview
Global Seafood Industry – Overview Increased seafood intake globally, reflected in higher per capita consumption of seafood (kg) Rising income level Variety in product offering 20 15 Richer protein content 1995 2015 Favourable State policies like FTAs Source: FAO, CRISIL Research Seafood ind
Slide 14: Global Demand-Supply Scenario, Favourable for India
Global Demand-Supply Scenario, Favourable for India Demand: Top 5 importing countries, forming ~50% Supply: Asia forms ~92% of total aquaculture production 69.6% 15.0% 2015 67.7% 14.7% 2015 20-22% 2020P 2020P 18.0% 9.9% 7.8% 11.0% 6.8%6.7% 9-11% 8-10% 9.0% 5.2% 7.0% 4.8% 5-7% 5-7% 5.0% 3.0%3.0% USA
Slide 15: India’s Growth in Aquaculture Exports and Farming
India’s Growth in Aquaculture Exports and Farming India’s exports on a rise – FY17 (lakh tonnes) Frozen shrimp exports by India 3.7 3.7 3.9 11.34 Total Seafood 3.2 3.1 (20% yoy) 1.7 1.8 4.34 189 229 301 358 374 434 456 (16% yoy) Frozen Shrimp 3.29 L. Vannamei (28% yoy) '000 tonnes $ bn Source: MPEDA
Slide 16: Our Core Strengths
03 Our Core Strengths Investor Presentation FY18 Apex Frozen Foods Limited 16
Slide 17: Integrated Operations Ensure Quality Control & Timely Delivery
Integrated Operations Ensure Quality Control & Timely Delivery Hatchery Farming Processing Packaging Logistics • Capacity of • As per customer • 1,500 MT of cold • Three operational • 1,800 acres land 15,240 MTPA of requirement in storage capacity units; combined • Forms 18-20% of processed shrimp R
Slide 18: Strategically Located – Close to Farms as well as Ports
Strategically Located – Close to Farms as well as Ports Andhra Pradesh accounts for ~70% of the total shrimp farming in India Processing Plant Hatchery and Farm Locations Our facilities are in proximity to one another, enabling smooth transition to the next stage: Farms are within 10-200 kms; Kakina
Slide 19: Long Standing Relationships with Reputed Clients
Long Standing Relationships with Reputed Clients Our key distributors… …The end customers (Retail/Food Service Companies) Pacific Seafood Walmart WinCo FOODS OCEAN WORLD VENTURES Sysco US. Kroger FOODS Mazzetta Company Chicken of the Sea SAFEWAY ALDI frozen foods Investor Presentation FY18 Apex Froz
Slide 20: Quality Control Certifications act as Entry Barrier
Quality Control Certifications act as Entry Barrier EU Approved Government of India Ministry of Commerce Directorate General of Foreign Trade Four Star Export House Approved Investor Presentation FY18 Apex Frozen Foods Limited 20
Slide 21: Founded by Promoters with Extensive Experience …
Founded by Promoters with Extensive Experience … Industry knowledge, relationships and experience of the founders has enabled sustained growth Karuturi Satyanarayana Murthy, Chairman and Managing Director Founding Promoter of the company and has an experience of over 25 years in aquaculture indust
Slide 22: Annual Financial Highlights
06 Annual Financial Highlights Investor Presentation FY18 Apex Frozen Foods Limited 22
Slide 23: Robust Growth in Revenue and Profits…
Robust Growth in Revenue and Profits… Total income (Rs mn) EBITDA (Rs mn) & Margin (%) PAT (Rs mn) & Margin (%) FY14 5,146 FY14 329 6.4% FY14 134 2.6% FY15 6,044 FY15 382 6.3% FY15 186 3.1% FY16 6,083 FY16 455 7.5% FY16 197 3.2% FY17 7,093 FY17 549 7.7% FY17 251 3.5% FY18 10,185 FY18 1,299 12.8% FY1
Slide 24: …Led by Strong Financial Discipline, Leading to…
…Led by Strong Financial Discipline, Leading to… Net debt-to-equity (x) Working capital (Days) Diluted Book value (Rs/share) FY14 2.0 FY14 48 FY14 12.1 FY15 1.5 FY15 54 FY15 17.9 FY16 1.0 FY16 51 FY16 24.1 FY17 0.9 FY17 60 FY17 35.0 FY18 0.1 FY18 52 FY18 96.7 Improved D/E led by… …largely stable wor
Slide 25: …Enhanced Profitability for Stakeholders
…Enhanced Profitability for Stakeholders Return on Net Worth (%) Return on Capital Employed (%) FY14 43.1% FY14 18.6% FY15 39.6% FY15 19.3% FY16 30.0% FY16 18.0% FY17 27.2% FY17 17.8% FY18 38.4% FY18 28.5% Consistently generating high Return Ratios Note: The data beyond FY17 is as per Restated Finan
Slide 26: Profit & Loss Highlights
Profit & Loss Highlights Profilt & Loss (Rs mn) FY14 FY15 FY16 FY17 FY18 Net revenue 5,143 5,994 6,035 6,987 9,986 Other income 3 50 47 106 199 Total income 5,146 6,044 6,083 7,093 10,185 Raw material 3,885 4,752 4,510 5,317 7,031 Employee expenses 226 258 233 249 389 Other expenses 705 652 884 977
Slide 27: Balance Sheet Highlights
Balance Sheet Highlights Standalone (Rs mn) FY15 FY16 FY17 FY18 Standalone (Rs mn) FY15 FY16 FY17 FY18 Shareholder’s Funds 560 753 1,094 3,023 Non-current assets 523 632 857 1,373 Share capital 240 240 240 313 Net block 523 552 829 1,111 Reserves & surplus 320 513 854 2,710 Non-current liabilities 1
Slide 28: For further information, contact
For further information, contact: Mr. Subhramanya Chowdary Ms. Pooja Sharma Executive Director pooja.sharma@stellar-ir.com ir@apexfrozenfoods.com Investor Presentation FY18 Apex Frozen Foods Limited 28