Apex Frozen Foods Ltd. · NSE:APEX
Apex Frozen Foods — Q2 FY20 Earnings Presentation
33 slides from Apex Frozen Foods's earnings presentation, November 2019
Slide 1: Cover letter to stock exchanges
3 -160, Panasapadu, Kakinada 533 005 fa APEX Andhra Pradesh . India off +91 884 2383902 - 4 (3 lines) fax +9] 884 2383905- 4 kkd@apexfrozenfoods.com CIN: L15490AP2012PLCO80067 Date: 19t November, 2019 To To The General Manager, The General Manager, Department of Corporate Services, Listing Departmen
Slide 2: Apex Frozen Foods Investor Presentation
Apex Frozen Foods Investor Presentation November 2019
Slide 3: Safe Harbour
2 Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Apex Frozen Foods Ltd (the “Company”) solely for 2 information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall
Slide 4: Executive Summary
3 Executive Summary 3 Integrated Model Growth Visibility Consistent investment Doubling of capacity; End-to-end across the value chain - Expanding Product Line; Execution Hatchery, Farming, Foray into new markets Processing Fiscal Discipline Leading Processor Advantage India International Producer-E
Slide 5: Key Business & Financial Updates
Key Business & Financial Updates
Slide 6: Commenced Production at the New Shrimp Processing Plant
5 Commenced Production at the New Shrimp Processing Plant 5 Located at Ragampeta, AP Installed capacity of processing 20,000 MTPA of Shrimp Capex incurred of ~Rs 108 cr Currently producing for non USA and non EU markets as approvals are awaited
Slide 7: Operational Highlights
6 Operational Highlights 3,941 7,598 6 Sales Trend (MT) 3,745 7,368 7,354 3,688 Q2FY18 Q2FY19 Q2FY20 H1FY18 H1FY19 H1FY20 Others Europe 1.4% Europe Others 7.3% 8.6% 1.2% Region-wise (%) USA USA 90.2% Q2FY20 91.3% H1FY20
Slide 8: Income Statement
7 Income Statement Standalone (Rs mn) Q2 FY20 Q2 FY19 y-o-y % H1 FY20 H1 FY19 y-o-y % 7 Net revenue 2,694 2,555 5% 4,912 5,327 -1% Other income 52 87 -40% 94 134 -30% Total Income 2,746 2,642 4% 5,006 5,082 -2% Raw material 1,820 1,761 3% 3,465 3,263 6% Employee expenses 129 121 7% 231 238 -3% Other
Slide 9: Balance Sheet
8 Balance Sheet Liabilities (Rs mn) Mar-19 Sep-19 Assets (Rs mn) Mar-19 Sep-19 8 Shareholder’s Funds 3,551 3,798 Non-current assets 2,456 2,689 Share capital 313 313 Net block 1,147 1,486 Reserves & surplus 3,238 3,485 Capital work-in-progress 1,163 1,085 Non-current liabilities 94 242 Other non-cur
Slide 10: Management Commentary
9 We are pleased to announce the commencement of commercial production at our new processing facility and look forward to ramping up operations in the coming quarters. Further, construction of Phase II at the recently commenced hatchery in Ongole has also started. Coming to the Company’s performance
Slide 11: Company At a Glance
Company At a Glance We 22 ee eee | ee ee * 71 = 7 ‘se -
Slide 12: One of the Leading Exporters of Processed Shrimp in India
11 One of the Leading Exporters of Processed Shrimp in India … 11 Commenced operations in 1995, Apex Frozen Foods is one of the leading Producers and Exporters of processed Shrimp in India Well integrated company with presence across the value chain - Hatchery, Farming, Processing and Exporting of S
Slide 13: Having Well Integrated Operations to Ensure Quality Control
12 … Having Well Integrated Operations to Ensure Quality Control Hatcheries Farms Processing Storage and Logistics 12
Slide 14: Hatchery | Stepping-stone for Ensuring Quality Produce
13 Hatchery | Stepping-stone for Ensuring Quality Produce Processing 13 Hatchery Farming & Exports Production of Specific Pathogen Free (SPF) shrimp seed | Typical cycle of 40 – 50 days Location: North of Vizag Location: South of Vizag Location: Srikakulam Location: Ongole Commenced: Year 2016 Comme
Slide 15: Farming | Critical Cushion for Consistent Supply
14 Farming | Critical Cushion for Consistent Supply Processing 14 Hatchery Farming & Exports Cultivation of shrimp, which are reared in ponds in a bio-secured environment | Typical cycle of 90 - 120 days Farming operations spread across ~45 locations in Andhra Pradesh ~50 acres ~1,800 acres 2013 201
Slide 16: Processing | Doubling Capacity and Expanding Product Line
15 Processing | Doubling Capacity and Expanding Product Line 15 Hatchery Farming Processing Washing, Weighing, Beheading, Grading, Peeling, De-veining, Cooking and Freezing Owned Leased Kakinada Plant; Capacity: 9,240 MTPA Cold Storage: 1,000 MT 29240 6000 6000 3000 3000 1500 7821 9240 9240 9240 924
Slide 17: Strategically Located – Close to Farms as well as Ports
16 Strategically Located – Close to Farms as well as Ports … Andhra Pradesh accounts for ~60-65% of the total shrimp farming in India 16 20 - 200 kms from most farms 20 kms from Kakinada port 150 kms from Vishakapatnam port Processing Plants Hatcheries Our facilities are in proximity to one another,
Slide 18: Quality Control Certifications Provide a Competitive Edge
17 … And Quality Control Certifications, provide a Competitive Edge 17 USA European Union EU Approved Government of India Ministry of Commerce Directorate General of Foreign Trade India Four Star Export House
Slide 19: Moving up the Value Chain, Expanding the Product Line
18 Moving up the Value Chain → Expanding the Product Line … 18 Ready to Eat Cooked Peeled & De-veined Tail-on Cooked in Shell Specialty Product Shrimp Rings Butterfly Shrimp Dusted and Breaded Peeled Product Skewered Shrimp Par-fried Shrimp Peeled, Deveined, Tail-on Seasoned Shrimp Peeled Un-deveine
Slide 20: To Garner Wallet Share from Existing Customers
19 … To Garner Wallet Share from Existing Customers 19 Long-standing relationship directly with customers, has been one of the significant growth factors Manufacturer Manufacturer Distributors Distributors End Customers Chicken of the Sea Frozen Foods Kroger Mazzetta Inc Sysco 1 Tier Partner Ocean W
Slide 21: ~40 Years of Experience in Fishing Industry
20 ~ 40 Years of Experience in Fishing Industry 20 Relationship based ethos has helped our Company grow along with our partners (farmers & customers) Karuturi Satyanarayana Murthy Karuturi Subrahmanya Chowdary Chairman and Managing Director Executive Director ▪ Founding Promoter with ~35 years of ex
Slide 22: Aquaculture Sector – An Update
Aquaculture Sector – An Update
Slide 23: Aquaculture to Satiate the Growing Global Seafood Demand
22 Aquaculture to Satiate the Growing Global Seafood Demand Global Per Capita Seafood Consumption (kg) G lo bal S eafo o d Pro du cti o n ( m n to nnes ) 22 Capture Aquaculture 21 15 110 80 35 18 88 90 90 80 2030P 1995 2015-17 1995 2005 2015 2020P Source: FAO Source: FAO ✓ Rising income level across
Slide 24: India's Seafood Exports Driven by Surging Shrimp Exports
23 India’s Seafood Exports Driven by Surging Shrimp Exports … India Exports in 000’s MTPA Frozen Shrimp Other Seafood Total Seafood 23 Shrimp CAGR of 17% vs Total Seafood CAGR of 9% 1,377 1,393 1,135 1,051 984 946 928 862 813 678 603 566 614 358 374 434 229 301 126 131 151 189 FY09 FY10 FY11 FY12 FY
Slide 25: Aided by Inherent Strengths and Regulatory Foresight
24 … Aided by Inherent Strengths and Regulatory Foresight 24 Resource Rich Geography Regulatory Support Quality Produce Vast coastline of ~7,500 kms Commercial production of L Vannamei Sustainable farming techniques have permitted since 2009 resulted in consistent quality Abundant inland water resou
Slide 26: Key Factors to Consider for the Sector
25 Key Factors to Consider for the Sector 25 Demand Slowdown Disease Related Volatile Pricing Being an export-oriented sector, Highly susceptible to outbreak of Global imbalances in demand- any slowdown in consumption in diseases, which can have a supply can impact pricing. key markets like the USA,
Slide 27: Annual Performance
Annual Performance We 22 ee eee | ee ee * 71 = 7 ‘se -
Slide 28: Financial Highlights
27 Financial Highlights 01 EBITDA (Rs mn) & EBITDA Margin 02 27Total Income (Rs mn) 8% 8% 13% 12% 10,185 6% 8,962 140 0 1,299 14% 1,111 7,093 120 0 12% 6,044 6,083 100 0 10% 549 800 8% 600 382 455 6% 400 4% 200 2% 0 0% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 PAT (Rs mn) & PAT Margin 04 ROE
Slide 29: Operational Highlights
28 Operational Highlights Processing Capacity (MTPA) 01 Total Volumes Sold (MTPA) 02 28 Owned Leased 14,146 13,051 6,000 6,000 9,533 9,897 1,500 3,000 3,000 7,930 9,240 9,240 9,240 9,240 9,240 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Working Capital (Days) 04 Net Debt to Equity (x) 03 70 60
Slide 30: Income Statement
29 Income Statement Profit & Loss (Rs mn) FY15 FY16 FY17 FY18 FY19 29 Net revenue 5,994 6,035 6,987 9,986 8,747 Other income 50 47 106 199 215 Total income 6,044 6,083 7,093 10,185 8,962 Raw material 4,752 4,510 5,317 7,031 5,810 Employee expenses 258 233 249 389 482 Other expenses 652 884 977 1,466
Slide 31: Balance Sheet
30 Balance Sheet Assets (Rs mn) FY17 FY18 FY19 30 Liabilities (Rs mn) FY17 FY18 FY19 Shareholder’s Funds 1,094 3,023 3,551 Non-current assets 857 1,408 2,456 Share capital 240 313 313 Net block 829 1,111 1,147 Reserves & surplus 854 2,710 3,238 Capital work-in-progress 8 209 1,163 Non-current liabil
Slide 32: Share Capital Information
31 Share Capital Information 450 400 350 31 300 250 200 150 100 50 0 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Share Price data as on 19th November 2019 Shareholding Pattern (as on Sep-19) Mutual Funds, NSE / BSE code APEX / 540692 9.50% CMP (R
Slide 33: Apex Frozen Foods contact details
Apex Frozen Foods 3-160, Panasapadu, Kakinada, East Godavari 533 005, Andhra Pradesh, India Mr Subhramanya Chowdary Executive Director ir@apexfrozenfoods.com Pooja Sharma / Sheetal Keswani Investor Relations pooja.sharma@stellar-ir.com sheetal@stellar-ir.com