Emmbi Industries Limited · NSE:EMMBI
Emmbi Industries — FY2019 Earnings Presentation
49 slides from Emmbi Industries's earnings presentation, May 24, 2019
Slide 1: Cover letter to stock exchanges: Investor Presentation
M INDUSTRIES LIM!TED Date: 24h Muy, 2019 To, To, Dept. of Corporate Services, The Listing Department, BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra (East), Mumbai 40005 I BSE Scrip Code: 5
Slide 2: Emmbi Industries Limited Investor Presentation FY 2018-19
Emmbi Industries Limited Investor Presentation FY 2018-19
Slide 3: Disclaimer
Disclaimer This is not an investment recommendation, and this presentation contains forward-looking statements, identified by words such as ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ and so on. All statements that address expectations or projections abo
Slide 4: Contents
Contents 1. Q4FY 2019 – Highlights 2. Financial Performance 3. Product Verticals and Growth Drivers 4. Future Outlook – The Focus on Water Appendix: A - Innovation – Emmbi’s DNA B - Product Profile of Emmbi C - Polymer Processing Industry: Global Perspective
Slide 5: 1. Q4FY 2019 – Highlights
1. Q4FY 2019 – Highlights
Slide 6: At a Glance
At a Glance FY19 Projections Achievements in FY19 Targeted Revenue Growth: 12-15% Revenue Growth: +13% Financial Growth in EBITDA Margin: 30-45bps p.a. Growth in EBITDA Margin: 35bps p.a. Performance PAT Growth: 15-18% PAT Growth: 17% Average Ponds per day: 7 Average Ponds per day: 8 Operational Sha
Slide 7: Innovation of Q1 Rodent Free Technology
Innovation of Q1 Rodent Free Technology
Slide 8: Innovation of Q2 Banking Tie Ups
MoUs with Bank of Maharashtra, Axis Innovation of Q2 Bank, ICICI Bank and Satara District Central Cooperative Bank for providing Banking Tie Ups finance to farmers to buy Emmbi Avana Products
Slide 9: Innovation of Q3 Fish Friendly Pond Liner
Innovation of Q3 Fish Friendly Pond Liner Uses specialized Habitech technology to create the perfect aquatic environment
Slide 10: Innovation of Q4 Fire Retardant Technology
Innovation of Q4 Fire Retardant Technology Promotes human safety by preventing the spread of fires
Slide 11: 2. Financial Performance
2. Financial Performance
Slide 12: Financial Performance
Financial Performance 40+ 15+ 200+ 57+ Products Patents Clients Countries (₹ Millions) 2014 2015 2016 2017 2018 2019 Growth 2014 2015 2016 2017 2018 2019 Revenues 1,680 1,929 2,177 2,410 2,790 3148 Revenue Growth % 13.94 14.81 12.83 10.72 15.77 12.85 EBIDTA 154 202 270 297 353 411 EBIDTA % 9.69% 10.
Slide 13: 3. Product Verticals and Growth Drivers
3. Product Verticals and Growth Drivers
Slide 14: Business Verticals
Business Verticals Emmbi caters to a $73 Billion Global Market Estimated Global Market: Estimated Global Market: Estimated Global Market: Estimated Global Market: 30 US $ Billion 36.5 US $ Billion 2.5 US $ Billion 4 US $ Billion The Specialty Packaging The Advanced Composites The Water Conservation
Slide 15: Growth Drivers
Growth Drivers Increased share of Strengthen B2B Base Expand B2C Vertical Shift in Buying Pattern Value Added Products Focus on margin Develop advanced Cater to greener, Consolidate across expansion through products in B2C cleaner and efficient industry verticals better acceptance of segment to driv
Slide 16: Emmbi Revenues by division
Emmbi Revenues by division 45.02% 44.10% 44.60% 43.00% 41.00% 40.00% 33.43% 32.69% 32.97% 30.00% 28.00% 27.00% 27.00% 24.00% 24.00% 20.26% 18.11% 19.23% 5.00% 6.00% 5.00% 3.44% 2.95% 3.20% 2017 2018 2019 2020 2021 2022 Past Review Projections
Slide 17: Revenues Split
Revenues Split AFRICA 4.70% MIDDLE EAST 7.00% EUROPE 30.00% B2C THE UK 15.60% 8.00% Export Domestic 47% 53% OCEANIA B2B 10.30% 84.40% AMERICAS 40.00% Market Wise Split Export Geographies Division Business Split As on 31st March 2019 % of Export Sale B2B vs B2C
Slide 18: 4. Future Outlook – The Focus on Water
4. Future Outlook – The Focus on Water
Slide 19: The Rural Market: A Huge Opportunity
The Rural Market: A Huge Opportunity 68.8% of India is dependent on agriculture *Source: 2011 Census, Govt of India # Source: KPMG’s Indian Economic Survey, 2014-15 Only 14% has certainty of income through micro irrigation
Slide 20: The Challenge: A Severely Changing Rainfall Pattern
The Challenge: A Severely Changing Rainfall Pattern Water, a primary concern ~54% India lives faces high to very high water stress* Sudden downpours and flash floods are becoming more common. Most of the water flows away and is unable to recharge the water table. Conserving water by capturing this w
Slide 21: The problems caused by sudden downpours
Change in rainfall Reduction in sub- Less disbursable Increased water pattern surface absorption water for use scarcity The problems caused by sudden downpours
Slide 22: Our Solution: Capturing surplus rainwater
Our Solution: Capturing surplus rainwater
Slide 23: Saving Water
Saving Water Emmbi has created three major methods to solve the nation’s water crisis. These are: • Jalasanchay Pond Liner • AquaSave Canal Liner • Perco Plus Percolation Tanks
Slide 24: Jalasanchay: A comprehensive water conservation solution
AWARENESS FINANCING TIE-UPS POND ENGINEERING CROP ADVISORY NEW SOURCES OF INITIATIVES DESIGN INCOME Jalasanchay A comprehensive water conservation solution for Indian farmers
Slide 25: Jalasanchay: Results so far
Jalasanchay: Results so far What we’ve achieved We believe we can create 5000+ Ponds One Pond Every Hour 10,000 Hectares of Land Irrigated With existing capacity 3 states 4 more states in next 3 Years 36 months 8 ponds per day! Impact Film Link Actual image of Emmbi pond Sinner, https://www.youtube.
Slide 26: AquaSave Canal Liner
AquaSave Canal Liner prevents percolation losses in clay canals. This increases the area under irrigation and improves water efficiency till the last mile, for large irrigation projects!
Slide 27: Perco Plus percolation tank lining
Perco Plus is used to line bunds in percolation tanks preventing horizontal movement of water. Thus, water moves down vertically and recharges the underground water table. We have created 70 such tanks this year! These have increased the availability of groundwater in nearby villages by ~6 months in
Slide 28: Appendix A, B & C
Appendix A, B & C
Slide 29: A. Innovation – Emmbi’s DNA
A. Innovation – Emmbi’s DNA
Slide 30: Our in-house R&D Center
Our in-house R&D Center • Govt. of India, Department of Science & Technology Certified • Filed 15 Patents in past 6 years • 35 member Dedicated R & D Team • Approx. 2.5 % of Revenue is allocated as budget • Helps maintain the target of “20 % Revenue from product developed in past 20 months”
Slide 31: Continued Successes: Rodent Repellant Bulk Packaging
Continued Successes Rodent Repellant Bulk Packaging The Challenge: Rodents bite bags and cause massive food wastage. In addition, they spread diseases to humans. Emmbi Solution: We used a unique polymer blend and flavors to create a substrate which creates a taste which is not liked by rodents. This
Slide 32: Continued Successes: Fish Friendly Pond Liner
Continued Successes Fish Friendly Pond Liner The Challenge: Farmers wanted to use ponds to breed fish. However, IS Standards requires pond fabric to use a certain amount of carbon black. This makes ponds fabric black in color. In order to make ponds viable for growing fish, we had to make the color
Slide 33: Continued Successes: Fire Retardant Polymer Technology
Continued Successes Fire Retardant Polymer Technology The Challenge: Polymers are prone to spread fire. They become very susceptible in case they are stored in enclosed spaces such as aircrafts of ships. It is important to stop the spread of the fire while using the polymer substrates. Emmbi Solutio
Slide 34: B. Product Profile of Emmbi
B. Product Profile of Emmbi
Slide 35: Helped irrigate 10,000 Hectares using 5000 ponds
Helped irrigate 10,000 Hectares of crops using 5000 ponds in 3 states of India in past 36 months Pic: Pond for 8 million ltr Water Storage Created by Emmbi At Pahur, Dist Jalgaon, State of Maharashtra, India
Slide 36: Product Snapshot: Water Conservation
Product Snapshot Water Conservation 19.23% Pond Liner Check Dam Canal Liner Collapsible Pipe
Slide 37: Product Snapshot: Water Conservation
Product Snapshot Water Conservation 19.23% Cycle Tank 1000 Liter Flexi Tank 500 Liter Standing Tank Open Flexi Tank
Slide 38: Advanced Composite Range
Helped to protect priceless lives and assets worth Billions with our Advanced Composite Range
Slide 39: Product Snapshot: Advance Composites
Product Snapshot UN Certified FIBC Application of UN Certified FIBC Advance Composites 44.60% Water – Slug Separator Application of Anti Carcinogenic Nuclear Power plant Packaging Waste Disposal
Slide 40: Product Snapshot: Advance Composites
Product Snapshot Electrically Conductive Polymer Anti-Corrosive VCI Films Advance Composites 44.60% Application for Fall Arrest Anti Corrosive Fabric
Slide 41: Helped put 4 Million Tonnes of food and cargo in service
Helped put 4 Million Tones of food & Other Cargo in your service every single year, safely
Slide 42: Product Snapshot: Specialty Packaging
Product Snapshot Construction FIBC Application of Construction FIBC Bulk Packaging with Specialty Packaging 32.97 % lowest carbon foot print only 0.7 gm polymer can hold up to 1 kg of Material Packaging Barrier Films
Slide 43: Product Snapshot: Specialty Packaging
Product Snapshot “Form Stable” Conductive Liquid & Solid Container Liner Specialty Packaging Perfect partner to new age 32.97 % Supply Chain system , and Hyper Local Models of Distribution, Typically used by Multinationals & e-commerce Urban Waste Disposal companies
Slide 44: Protect your food from contamination from hazardous chemicals
Help protect your food from contamination from hazardous chemicals and pesticides, naturally Actual Picture from KVK Baramati, Dist Pune, State of Maharashtra, India
Slide 45: Product Snapshot: Agro Polymer
Product Snapshot Mulch Film Crop Cover Agro Polymer 3.20 % Silage Incubator Shade Net
Slide 46: C. Polymer Processing Industry: Global Perspective
C. Polymer Processing Industry : Global Perspective
Slide 47: India still has head-room for growth
Compared to the global averages, India still has head-room for growth INDIA LAGS THE WORLD IN POLYMER CONSUMPTION India’s consumption of polymers is still a third of the global average. URBANIZATION TO DRIVE CONSUMPTION As the country urbanizes and grows economically, we see a significant uptick in
Slide 48: Emmbi driving the shift through unique applications
In India, Emmbi Industries is driving this shift through unique application Conventional applications Modern applications Jute Bags PP Bags Woven Polymer Canal Liners Concrete Canal Liners Woven Polymer Flexi Tank Concrete / Metal Water Tanks Woven PP Water Sludge Separator Metal Sludge Separator Ta
Slide 49: Thank you!
Thank you! Emmbi Investor Services: info@emmbi.com