Waterbase Limited · BSE:WATERBASE
Waterbase — The Waterbase — Investor Presentation (December 2016)
46 slides from Waterbase's investor presentation, December 2016
Slide 1: The Waterbase Limited Corporate Presentation - December, 2016
The Waterbase Limited Corporate Presentation - December, 2016
Slide 2: Contents
Contents 3 Company Overview 12 Growth Strategy 2 20 Scheme of Amalgamation - Transaction Highlights 24 Industry Overview 34 Safe Harbour Statement: Financial Overview Certain statements in this presentation concerning our future plans and strategies growth prospects, etc. are forward looking stateme
Slide 3: Company Overview
Company Overview
Slide 4: Company Overview
Company Overview Feed Capacity post Shrimp Exports in FY17 4 Amalgamation of PFL (YTD) Yrs. In Employees the Industry Revenue Estimated size of CAGR Domestic Shrimp feed Industry FY12>16 Debt – Equity Revenues As of in Sep 2016 FY16 #Dealers Mkt. share Pan India Presence (Domestic)
Slide 5: Locations
Locations 5 Registered office and factory Delhi • Ananthapuram Village, T.P. Gudur Mandal, Nellore – 524 344, Andhra Pradesh. Kolkata Corporate Office • No. 37, Thapar House, Montieth Road, Egmore, • Chennai – 600 008 Nellore Group Corporate Office • Delhi • Kolkata Chennai Corporate Office Factory
Slide 6: Key Strengths
Key Strengths Strong Brands Quality Control • Several popular brands which are favoured by • Robust manufacturing processes and step by shrimp farmers step quality control system • Enjoy high recall and are seen to be synonymous • Processing facilities are FDA and BAP approved, with quality and valu
Slide 7: Product Portfolio
Product Portfolio Shrimp Feed 7 Processed Shrimp
Slide 8: R&D Strengths
R&D Strengths Over 20 years of in-house 8 Proven Research & competence in Development research and Works closely (R&D) activities unparalleled with reputed Large technical institutes in the repository of expertise in the area of Aqua data: nutrition, industry Feed Nutrition diseases, soil Research a
Slide 9: R&D Initiatives
R&D Initiatives Promoting gut health & a stable gut microflora: Natural BAY WHITE Enriched antibacterial action 9 USP Feature 1 Feature 2 Improved Natural hepatopancreas function Enhanced antibacterial and stabilized gut hepatopancreas action microflora through natural function bacteriostatic action
Slide 10: Awards & Accolades
Awards & Accolades • Bagged “2016 India Shrimp Feed Industry New Product Innovation Leadership Award” by Frost & Sullivan a leading global strategy consulting company 10 • Frost & Sullivan’s, 2016 New Product Innovation Leadership Awards identified companies that demonstrated measured excellence in
Slide 11: Shareholding Pattern
Shareholding Pattern Indian Public 28.8% Promoters 11 60.9% Others 3.5% NRI 2.7% Corporate Institutions Bodies 2.5% 1.6% Data as on 30th September 2016
Slide 12: Growth Strategy
Growth Strategy
Slide 13: Growth Strategy
Growth Strategy Diversify market presence 13 • Installed capacity at 35,000 MTPA. • Widening distribution infrastructure • Entering more verticals within the Post merger of PFL, combined to enhance pan-India presence – value chain – set to emerge as an capacity of 1,10,000 MTPA will be have entered
Slide 14: Vertical & Horizontal Integration
Vertical & Horizontal Integration Segment Hatchery Farming Processing Finished Product (Shrimp) 14 KEY INPUTS Shrimp Feed Exports Water (Power) Domestic Market Labour New Growth Areas Farm Care Products 500 125,000 Ha Over 400 Processing Current Size (No. of hatcheries under 3,73,866 MT1 Plants for
Slide 15: New Initiatives – Farm Care Products
New Initiatives – Farm Care Products 15 Probiotics Vitamins & Minerals Healthcare Disinfectants
Slide 16: New Initiatives – Farm Care Products
New Initiatives – Farm Care Products Category Name Function 16 Farm Probiotic for 1 Probiotics VC-9 Vibrio control Promotes growth 2 Probiotics NutriPond of good bacteria 3 Probiotics NutriFeast Builds Immunity 4 Healthcare NutriGut Protects Gut Absorbs 5 Ammonia Binder NutriSorb Ammonia
Slide 17: New Initiatives – Domestic Market Foray
New Initiatives – Domestic Market Foray • Foraying into the domestic market with the brand ‘Prize Catch’ • Introducing Raw Shrimps and Pasteurised Crab meat in the first phase • Adding soft shell crabs along with Squid rings in the second phase 17 • Aiming for differentiated offering with a focus on
Slide 18: Enhancing Brand Awareness
Enhancing Brand Awareness Shop Signage Instore 18
Slide 19: Marketing & Distribution Initiatives
Marketing & Distribution Initiatives Dealer Meets Farmer Meets 19
Slide 20: Scheme of Amalgamation - Transaction Highlights
Scheme of Amalgamation - Transaction Highlights
Slide 21: Transaction Details
Transaction Details • 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 Pre- • Completion Date (exp): Q4 FY17 Amal
Slide 22: Background - Pinnae Feeds Limited
Background - Pinnae Feeds Limited • Pinnae Feeds Ltd., wholly owned subsidiary of Karam Financials : Chand Thapar & Bros (Coal Sales) Limited (which is the • Revenues of INR 120 crore in FY16 from supply of holding company of TWL); the flagship company of the feed to TWL KCT Group • Gross Block - Rs
Slide 23: Rationale for Amalgamation
Rationale for Amalgamation TWL’s production capacity will increase from 35,000 MTPA to 1,10,000 MTPA 23
Slide 24: Industry Overview
Industry Overview
Slide 25: Demand for seafood is rising globally
Demand for seafood is rising globally Total seafood production • Seafood production is expected to increase in million tonnes from 130mn tonnes in 2,000 to ~170mn tonnes 200 in 2030 150 • Within this, the share of wild catch is expected to remain stable and incremental volumes are 25 100 expected la
Slide 26: Shrimp Aquaculture Production by World Region
Shrimp Aquaculture Production by World Region 26 Sources: FAO (2016) for 1995-2011; FAO (2016) and GOAL (2014) for 2012-2014; GOAL (2016) for 2014-2018.
Slide 27: Global & Regional Trends
Global & Regional Trends World Shrimp Aquaculture by Species: 6.0 Million M T 75% % Indicate the share of P. vannamei 5.0 73% 70% 71% 65% 27 4.0 67% 3.0 59% 2.0 45% 16% 12% 1.0 0.0 2016 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 P. v
Slide 28: Robust Track Record of Industry Growth
Robust Track Record of Industry Growth • In FY16, Marine product exports from India Export Performance Since 2002-03 (US $ Million) were at USD $4.7 billion. Last 6 yr CAGR – 14% o MPEDA’s stated target for the year 2016-17 is US $5.6 billion US $ Million 28 • USA remains the largest market for Indi
Slide 29: Driven by strong growth in Shrimp Exports
Driven by strong growth in Shrimp Exports Volume Contribution • Shrimp exports continue to report tremendous Frozen Non- growth with a CAGR of ~18% in volume terms and Others frozen 12% 9% 27% in value terms in the last 3 years Frozen • Frozen shrimp continued to be the largest item in Cephol 29 opo
Slide 30: Shrimp Exports
Shrimp Exports EU 2015 2016 30 81,952MT 81,849MT 23% 22% Japan 2015 2016 USA 30,434MT 34,204MT 9% 9% 2015 2016 112,702 MT 134,144 MT 32% 36% South East Asia 2015 2016 69,068MT 65,188MT 19% 17% Source: MPEDA
Slide 31: Factors behind Success of Shrimp Farming in India
Factors behind Success of Shrimp Farming in India 31 31 Supply Active Favorable Availability Changing of Disruptions In Attractive Regulatory Topography Of Resources Species Thailand & Prices Setup Vietnam India has Abundant farm The industry is The Erstwhile key Global prices abundant labour at gov
Slide 32: Key Challenges
Key Challenges Diseases, weather patterns, fluctuating prices add to Risks the unpredictability of the industry 32 Due to its nature it is difficult to regulate and ensure industry–wide implementation of standards. The Fragmented unorganised structure also leads to Industry challenges in financing,
Slide 33: Growth Drivers
Growth Drivers Aquaculture is more cost effective Rise of protein compared to Rise in per consumption Income agriculture/animal capita in the 33 Growth husbandry income Indian diet Increasing Increasing global Rapid switchover Massive shift preference demand to Vannamei in Freshwater for for in less
Slide 34: Financial Overview
Financial Overview
Slide 35: Financial Performance
Financial Performance Revenues 5 year CAGR : 32.57% EBITDA Margins 318.6* 40 15.0% 11.4% 11.7% 277.6 10.1% 10.1% 9.2% 228.2 215.3 30 7.4% 10.0% 187.7 24.4 22.1 35 157.0 32.0 20.0 (in Cr) 20 5.0% 103.5 23.3 1.1% 10.5 11.6 10 0.0% 3.5# 0 -5.0% FY12 FY13 FY14 FY15 FY16 H1FY16 H1FY17 FY12 FY13 FY14 FY15
Slide 36: Key Financials
Key Financials Book value per share (Rs.) Earnings Per Share 25.7 25.9 5.1 23.4 22.5 4.7 * 21.1 4.4 36 (in Cr) (in Cr) 2.2 2.3 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Return on net worth (%) Return on Capital Employed (%) 21.6 * 29.6 19.7 23.8 15.7 20.9 10.4 10.0 12.3 12.3 FY12 FY13 FY14 F
Slide 37: Key Financials
Key Financials Net Worth Debt Equity Ratio 99.2 99.9 0.5 86.7 37 60.3 0.3 54.2 (in Cr) 0.1 0.1 0.1 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
Slide 38: Q2 & H1 FY17 Performance & Updates
Q2 & H1 FY17 Performance & Updates
Slide 39: H1 FY17 - Financial Performance
H1 FY17 - Financial Performance Revenue growth on account of better realisations and volume growth. Positive 39 response in newer markets like Gujarat INR Cr. and West Bengal contributed to volume growth. Revenue growth would Q2 Q2 Growth H1 H1 Growth have been even better but for wide Particulars F
Slide 40: Business Update
Business Update Feed Business • Healthy volume growth in H1 FY17 despite widespread impact of disease • Strong performance from new markets • Raw Material prices continued upward trends – high competitive intensity has inhibited ability to pass on RM price inflation to customers 40 • Launched Baywhi
Slide 41: Industry Trends & Outlook
Industry Trends & Outlook
Slide 42: Global Demand & Production Trends in 2016
Global Demand & Production Trends in 2016 • Despite a softer price trend, shrimp imports in the traditional developed markets remained disappointing in 2015-16 and the early part of 2016-17 Global Demand • The US which is the largest shrimp importer globally, elicited mixed signals due to unstable w
Slide 43: Domestic Market Trends
Domestic Market Trends • Sharp contraction in Indian shrimp production despite bumper first crop owing to wide spread White spot, EHP and White feces diseases • Heightened competitive intensity – discounts and extensive credits offered by new players, challenging to hike feed prices despite surge in
Slide 44: Outlook
Outlook The remainder of the year will see a slow down in farming efforts on account of weather, demonetisation and disease situation. 44 Raw Material prices on a slide on account of poor demand. Farmgate prices being lucrative, farmers will look forward to stocking early. We can expect the feed dem
Slide 45: Glossary
Glossary SPF Specific pathogen free FCR Feed conversion ratio 45 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 46 For more information about us, please visit www.waterbaseindia.com OR contact: G. Venkatram (CS & CO) Mayank Vaswani / Suraj Digawalekar The Waterbase Limited Citigate Dewe Rogerson (CDR India) Phone: +91 44 30127009 Extn: 202 Phone : +91 22 6645 1230 / 1235 Email: gvenkatram@waterbasei
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