Apex Frozen Foods Ltd. · NSE:APEX
Apex Frozen Foods — H1FY18 Earnings Presentation
36 slides from Apex Frozen Foods's earnings presentation, Nov 15, 2017
Slide 1: Cover letter to stock exchanges
A 3 -160, Panasapadu, Kakinada 533 005 mz Andhra Pradesh . India off +91 884 2383902 - 4 (3 lines) RPA fax +9 7 FROZEN FOODS LTD. rN es ens on CIN: U15490AP2012PLC080067 Date:15.11.2017 To To The General Manager, The Manager, Department of Corporate Services, Listing Department, Bombay Stock Exchang
Slide 2: Investor Presentation Apex Frozen Foods Limited H1FY18
Investor Presentation Apex Frozen Foods Limited H1FY18
Slide 3: 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 4: Table of Contents
Table of Contents 1 Key Highlights – Q2 & H1FY18 2 Company Overview 3 Our Core Strengths 4 Growth Strategy 5 Financial Performance Investor Presentation H1FY18 Apex Frozen Foods Limited 3
Slide 5: Key Highlights – Q2 & H1FY18
01 Key Highlights – Q2 & H1FY18 Investor Presentation H1FY18 Apex Frozen Foods Limited 4
Slide 6: Initial Public Offering (IPO) - Update
Initial Public Offering (IPO) - Update Total issue size of Rs 1,523mn – in Rs mn Utilisation of IPO proceeds till Sep’17 – in Rs mn Offer for Sale 254 286 901 283 Fresh Issue 95 1269 Planned Incurred New Plant Gen Corp Purp Shareholding pattern Share price movement since listing – Rs/share Shares 50
Slide 7: Key Operational Metrics – H1FY18
Key Operational Metrics – H1FY18 Higher capacity with better utilisation led to… …Increased sales while realisation remained stable Capacity (MTPA) Sales (MTPA) Realisation (Rs/kg) 706 701 12,240 15,240 9,898 7,598 FY17 H1FY18 FY17 H1FY18 Investor Presentation H1FY18 Apex Frozen Foods Limited 6
Slide 8: Profitability Highlights – H1FY18 & FY17
Profitability Highlights – H1FY18 & FY17 Standalone UFR* (Rs mn) Q2 FY18 H1FY18 FY17 Net sales 2,851 5,327 6,991 Other income 71 126 106 Total Income 2,922 5,453 7,097 Raw material 2,244 4,189 5,359 Change in inventories -232 -408 -42 Employee expenses 91 170 250 Other expenses 439 822 972 EBITDA 37
Slide 9: Balance Sheet Highlights – H1FY18 & FY17
Balance Sheet Highlights – H1FY18 & FY17 Standalone (Rs mn)* Sep'17 Mar'17 Standalone (Rs mn)* Sep'17 Mar'17 Shareholder’s Funds 2,517 1,016 Non-current assets 1,029 857 Share capital 313 240 Property, plant & equipment 964 829 Reserves & Surplus 2,204 776 Capital work-in-progress 34 8 Non-current l
Slide 10: Management Commentary on H1FY18
Management Commentary on H1FY18 Our Executive Director on H1FY18 performance: “The Company began a new phase in its journey in Q2FY18 by getting listed on the NSE and the BSE. While the overall global economic conditions remain challenging, I am happy to announce that Apex Frozen Foods Limited is st
Slide 11: Company Overview
02 Company Overview Investor Presentation H1FY18 Apex Frozen Foods Limited 10
Slide 12: Leading Exporter of Processed Seafood in India
Leading Exporter of Processed Seafood in India Leading Producer-Exporter of processed, read-to-cook, Shrimp in India Presence Across the Value Chain – from ‘Hatchery to Port’ 15,240 MTPA of processing capacity; 1,800 acres of farm land; breeding capacity of over 1bn feeds; cold storage of 1,500 MT o
Slide 13: Major Events and Milestones in Our Journey
Major Events and Milestones in Our Journey 1995 2006 2013-14 Sep’17 Commenced business • Started exports to EU • Started in-house shrimp Listed on operations as a • Expanded pre- farming partnership firm named processing at Kakinada • Initiated hatchery operations “Apex Exports” for Value Added • En
Slide 14: 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 20 years in aquaculture indust
Slide 15: Supplemented by a Strong First Line of Management
… Supplemented by a Strong First Line of Management Deep knowledge and operational experience makes the first line of management strong Ch Vijaya Kumar, G. V. Raghava Raju, H. Rajashekhar, DR. T. Rambabu Chief Financial Officer Purchase Manager Operations Manager Farms In-charge • Aged 41 years, is
Slide 16: Our Key Product – Shrimp
Our Key Product – Shrimp • We sell variants of processed White-leg shrimp (L. Vannamei) and Black Tiger shrimp (P. Monodon) in frozen form Product • Types of finished goods include - Head on; Headless & Shell on; Easy peel; Peeled, Deveined & Tail on; Peeled, Un-deveined & Tail off; Butterfly; Skewe
Slide 17: Typical Work Flow for Shrimp Processing
Typical Work Flow for Shrimp Processing Sourcing Processing Sales HATCHERY Production of SPF seed COLD STORAGE The finished product (frozen shrimp) is then sorted and stored in refrigerated warehouses awaiting shipment PRE PROCESSING PROCESSING Pre-processing Processing involves involves chilled var
Slide 18: Our Core Strengths
03 Our Core Strengths Investor Presentation H1FY18 Apex Frozen Foods Limited 17
Slide 19: Integrated Operations Enable Economies of Scale
Integrated Operations Enable Economies of Scale Packaging Farming • Breeding capacity • Cold storage unit of over 1bn SPF • Total capacity of • Packaging of finished – 1,500 MT • 1,800 acres of 15,240 MTPA product, as per feeds farming land • Transportation • Owned - 9,240 MT customer via owned reef
Slide 20: Investor Presentation H1FY18 Apex Frozen Foods Limited
Investor Presentation H1FY18 Apex Frozen Foods Limited 19
Slide 21: 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 Our facilities are in proximity to one another, enabling smooth transition of products to the next stage 10 - 200 kms from the farms ~20 kms from Kakinada port ~150 kms
Slide 22: Long Standing Relationships with Reputed Brands
Long Standing Relationships with Reputed Brands Our key distributors… …The end customers (Retail/Food Service Companies) Long-standing relationship directly with customers, has been one of the significant growth factors Investor Presentation H1FY18 Apex Frozen Foods Limited 21
Slide 23: Quality Control Certifications act as Entry Barrier
Quality Control Certifications act as Entry Barrier Investor Presentation H1FY18 Apex Frozen Foods Limited 22
Slide 24: Growth Strategy
04 Growth Strategy Investor Presentation H1FY18 Apex Frozen Foods Limited 23
Slide 25: Planned Expansion, to Cater the Growing Demand
Planned Expansion, to Cater the Growing Demand • Setting up a new processing plant in Ragampeta, East Godavari, with a total capacity of 20,000 MTPA; including 5,000 MTPA for VAP (cooked, breaded and par fried shrimp) along with 5,000 MT of cold storage facility • The plant is expected to be commiss
Slide 26: Backward Integration; Better Product Mix, to Boost Margins
Backward Integration; Better Product Mix, to Boost Margins Farming Initiatives Increasing in-house cultivation acreage from current 1,800 acres and better Value Added Products (VAP) farm yields, to lower the overall raw material cost Focusing on innovative products to cater the evolving customers’ t
Slide 27: About the Industry
05 About the Industry Investor Presentation H1FY18 Apex Frozen Foods Limited 26
Slide 28: 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 29: Aquaculture Industry – Demand Supply Outlook
Aquaculture Industry – Demand Supply Outlook Asia forms ~92% of total aquaculture production Top 5 importing countries, forming ~50% 69.6% 15.0% 67.7% 14.7% 2015 2015 20-22% 2020P 2020P 18.0% 9.9% 7.8% 6.8%6.7% 11.0% 9-11% 8-10% 9.0% 5.2% 4.8% 7.0% 5-7% 5-7% 3.0%3.0% 5.0% China India Indonesia Vietn
Slide 30: Financial Performance
06 Financial Performance Investor Presentation H1FY18 Apex Frozen Foods Limited 29
Slide 31: Robust Growth in Revenue and Profits…
Robust Growth in Revenue and Profits… Total Income (Rs mn) EBITDA (Rs mn) & Margin (%) PAT (Rs mn) & Margin (%) FY13 2,553 FY13 8.7% 222 FY13 3.7% 94 FY14 5,143 FY14 6.3% 325 FY14 2.6% 134 FY15 6,040 FY15 6.3% 378 FY15 3.1% 186 FY16 6,082 FY16 7.5% 454 FY16 3.2% 197 FY17 7,095 FY17 7.8% 557 FY17 3.5
Slide 32: …Led by Strong Financial Discipline, Leading to…
…Led by Strong Financial Discipline, Leading to… Net Debt to Equity (x) Working Capital (Days) Book value (Rs/share) FY13 2.36 FY13 75 FY13 16 FY14 1.95 FY14 48 FY14 19 FY15 1.53 FY15 54 FY15 23 FY16 0.99 FY16 51 FY16 31 FY17 1.04 FY17 60 FY17 40 Improved D/E led by… …largely stable working capital…
Slide 33: …Enhanced Profitability for Stakeholders
…Enhanced Profitability for Stakeholders Return on Net Worth (%) Return on Capital Employed (%) FY13 38.6% FY13 13.7% FY14 43.1% FY14 15.7% FY15 39.6% FY15 16.2% FY16 30.0% FY16 15.4% FY17 29.0% FY17 14.7% Consistently generating high Return Ratios Note: The above data is as per Restated Financials
Slide 34: Profit & Loss Highlights
Profit & Loss Highlights Profilt & Loss (Rs mn) FY13 FY14 FY15 FY16 FY17 Total Income 2,553 5,143 6,040 6,082 7,095 Raw Material 1,895 4,013 4,890 4,675 5,492 Manufacturing cost 151 225 270 406 513 Employee Expenses 104 226 258 233 249 SG&A Expenses 180 353 244 314 284 EBITDA 222 325 378 454 557 EBI
Slide 35: Balance Sheet Highlights
Balance Sheet Highlights Standalone (Rs mn) FY15 FY16 FY17 Standalone (Rs mn) FY15 FY16 FY17 Shareholder’s Funds 560 753 968 Non-current assets 523 632 857 Share capital 240 240 240 Gross block 599 756 1,023 Reserves & Surplus 320 513 728 Less: acc. Depreciation 76 124 187 Non-current liabilities 10
Slide 36: For further information, contact
For further information, contact: Mr. Subhramanya Choudary Ms. Pooja Sharma Executive Director pooja.sharma@stellar-ir.com ir@apexfrozenfoods.com Investor Presentation H1FY18 Apex Frozen Foods Limited 35