Waterbase Limited · BSE:WATERBASE
Waterbase — The Waterbase — Investor Presentation (September 2015)
34 slides from Waterbase's investor presentation, September 2015
Slide 1: Investor Presentation September 2015
Investor Presentation September 2015
Slide 2: Contents
Contents Company Overview 3 Business Strategy 11 Scheme of Amalgamation - Transaction Highlights 17 Industry Overview 23 Financial Overview 28 Safe Harbour Statement: Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number
Slide 3: About The Waterbase Limited
About The Waterbase Limited Pioneers of the Aquaculture Industry in India
Slide 4: Company Overview
Company Overview • First Company to enter the aquaculture business in India in a formal manner – incorporated in 1987 – operations Robust Growth Momentum… commenced in 1993 – over two decades in the industry • Promoted by the Karam Chand Thapar Group which has FY 2012 FY 2013 FY 2014 FY 2015 varied
Slide 5: Key Strengths
Key Strengths Strong Brands Rich Legacy Technical Expertise • Several popular brands which are • Over two decades of expertise in • TWL enjoys unparalleled technical favoured by shrimp farmers the business- strong connect with expertise in the industry as the suppliers and farmers Pioneer • Enjoy hi
Slide 6: Product Portfolio
Product Portfolio Shrimp Feed Processed Shrimp 6
Slide 7: Locations
Locations Registered office and factory • Ananthapuram Village, T.P. Gudur Mandal, Nellore – 524 344, Andhra Pradesh. Delhi Corporate Office • No. 37, Thapar House, Montieth Road, Egmore, Kolkata Chennai – 600 008 Group Corporate Office Nellore • Delhi Chennai • Kolkata Corporate Office Factory 7
Slide 8: R&D Initiatives
R&D Initiatives • TWL’s world class R&D program and high technology • The Company continuously interacts with has enabled it to introduce innovative shrimp feeds international experts on Shrimp feed nutrition, water quality management and development of – An example of R&D outcomes is the specialize
Slide 9: R&D Initiatives - contd…
R&D Initiatives - contd… Promoting gut health & a stable gut microflora : Boosting energy reserves (nutritional status Natural antibacterial action hepatopancreas) BAY WHITE Enriched Improved hepatopancreas function and stabilized gut microflora through natural USP bacteriostatic action Starters Gro
Slide 10: Shareholding Pattern
Shareholding Pattern Indian Public 31.62% Promoters 52.47% Others 0.68% NRI 3.99% Corporate Bodies Banks 11.04% 0.00% FII Mutual Funds 0.19% 0.02% Data as on 10th July 2015 10
Slide 11: Business Strategy
Business Strategy
Slide 12: Business Strategy
Business Strategy Increase Scale Enhance Geographic Reach Diversify Revenue Streams 12
Slide 13: Business Strategy: Increase Scale
Business Strategy • Installed capacity at 35,000 MTPA. Post merger of PFL, expected capacity will be 1,10,000 MTPA to be higher by 300% Increase Scale • Increase volumes and market share by leveraging on strength of highly skilled technical manpower & brands, wider product portfolio, Enhance Geograp
Slide 14: Business Strategy: Enhance Geographic Reach
Business Strategy • Widening distribution infrastructure to enhance Increase Scale pan-India presence • Deepening distribution network with adding new depots, better Enhance Geographic Reach stocking of wider product portfolio at distributor level and enhanced after-sales service. Dealership network
Slide 15: Business Strategy: Diversify Revenue Streams
Business Strategy • Entering more verticals within the value chain – set to emerge as an integrated player from farm to fork Increase Scale • Formalizing plans to set up hatcheries to supply good quality seeds for shrimp farming Enhance Geographic Reach • Plan to forward integrate from current set u
Slide 16: Value Chain – Shrimp Industry
Value Chain – Shrimp Industry Current Status • Primary business for the Company Strategy Feed • Amalgamating Pinnae Feeds to consolidate operations which will result in tripling of Manufacturing capacity and allow TWL to pursue growth plans Hatchery Grow Out Ponds Processing Exporter (Farming) After
Slide 17: Scheme of Amalgamation - Transaction Highlights
Scheme of Amalgamation - Transaction Highlights
Slide 18: Transaction Details
Transaction Details TWL to issue 4 fully paid up equity share of Rs.10 each for every 17 fully paid-up SWAP-RATIO (4:17) equity shares of Rs.10 each, held by the shareholders in PFL APPOINTED DATE OF 1st August 2015 SCHEME TIMELINE Expect completion by Q1FY17 • Basis of Valuation: Net Assets Valuati
Slide 19: Transaction Details.. Contd.
Transaction Details.. Contd. Equity Capital pre- Shareholders - significant value creation amalgamation TWL PFL Pre-Amalgamation Post-Amalgamation 3.86 crore 1.2 crore shares shares 47.5% 44.3% Swap Ratio 4 : 17 52.5% 55.7% Number of shares of TWL to ~3.9 Crore Total No. of Shares ~4.1 Crore be issu
Slide 20: CEO Comment
CEO Comment Commenting on the scheme, Mr. Ramakanth V. Akula, CEO said, “This amalgamation will set the platform for the next wave of growth for the Company. In addition to the expansion in capacity for feed manufacturing, we anticipate multiple synergies from the combined operations including bette
Slide 21: Background - Pinnae Feeds Limited
Background - Pinnae Feeds Limited • Pinnae Feeds Ltd. is a wholly owned subsidiary of Karam Chand Thapar & Bros (Coal Sales) Limited; the flagship company of the KCT Group (promoters of TWL) • Incorporated in July, 2012 with the objective to meet capacity expansion plans for the Feed manufacturing b
Slide 22: Rationale for Amalgamation
Rationale for Amalgamation TWL’s production capacity will increase from 35,000 MTPA to 1,10,000 MTPA Operational Consolidation of Efficiencies expertise TWL + PINNAE FEEDS = Shareholder WINNING Exploit Value COMBINATION Business Creation Synergies Optimal utilization of resources 22
Slide 23: Industry Overview
Industry Overview
Slide 24: Robust Industry Growth
Robust Industry Growth Export Performance Since 2002-03 (US $ Million) • In FY15, Marine product exports from India were at an all-time high of USD $5.5 billion. US $ Million – MPEDA envisages target of US $ 6.6 billion for the year 2015-16 • Marine product exports crossed all previous records in qu
Slide 25: Driven by strong growth in Shrimp Exports
Driven by strong growth in Shrimp Exports Volume Contribution Value Contribution Frozen Non- Frozen Non- Frozen frozen Cepholop Others frozen Others 10% ods 7% 6% 12% 9% Marine Shrimps Others Frozen Exports Exports Frozen Cepholop Fish ods 11% Quantity in MT 10,51,243 3,57,505 6,93,738 15% Volume (%
Slide 26: Factors behind Success of Shrimp Farming in India
Factors behind Success of Shrimp Farming in India Favorable Topography India has abundant coastline and its climatic conditions are favorable for shrimp farming Abundant farm labour at reasonable cost, availability of other inputs such as land and power Availability Of Resources and sustained high l
Slide 27: Growth Drivers
Growth Drivers Aquaculture production is more cost effective Rise of the Increasing compared to protein global demand agriculture/animal consumption in of shrimps husbandry production the Indian diet Increasing Massive shift in Rise in per preference for Freshwater Fish Income Growth capita income c
Slide 28: Financial Overview
Financial Overview
Slide 29: Financial Performance
Financial Performance Revenues 5 year CAGR : 56.1% 277.6 105 101.2 300 228.2 100 250 200 95 157.0 90 (in Cr) 150 85.8 103.5 100 85 46.8 50 80 0 75 FY11 FY12 FY13 FY14 FY15 Q1 FY15 Q1 FY16 35 15.0% 14 12.5% 12.8% 15.0% 11.5% 30 9.3% 10.2% 10.2% 12 25 7.4% 32.0 10.0% 10 12.9 10.0% 10.7 20 23.3 8 5.0%
Slide 30: Financial Performance
Financial Performance 35 15.0% 14 11.8% 12.4% 15.0% 10.9% 30 9.0% 12 25 6.6% 10.0% 10 12.6 10.0% 4.8% 30.2 10.1 20 8 (in Cr) 20.4 5.0% 5.0% 15 0.3% 6 10 6.9 7.6 4 0.0% 0.0% 5 0.1 2 0 -5.0% 0 -5.0% FY11 FY12 FY13 FY14 FY15 Q1 FY15 Q1 FY16 25 15.0% 8 8.2 15.0% 7.0% 8 20 10.0% 8.7% 10.0% 5.9% 8 5.4% 15
Slide 31: Key Financials
Key Financials Book Value Per Share Earnings Per Share 30 25.7 6 5.1 25 23.4 22.5 5 4.4 21.1 19.2 20 4 (in Rs.) (in Rs.) 15 3 2.2 2.3 10 2 5 1 0.3 0 0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Return on Net Worth (%) Return on Capital Employed (%) 25 40 19.7 29.6 20 30 15.7 23.8 15 10.4 10.0
Slide 32: Key Financials
Key Financials Net Worth Debt Equity Ratio 120 1 99.2 0.5 0.5 100 86.7 1 80 0 60.3 (in Cr) 54.2 0.3 60 47.6 0 40 0 0.1 0.1 20 0 0 0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 32
Slide 33: Glossary
Glossary SPF Specific pathogen free FCR Feed conversion ratio 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 White
Slide 34: Thank You
Thank You For more information about us, please visit www.waterbaseindia.com OR contact: G. Venkatram (C S & CO) Mayank Vaswani / Devrishi Singh The Waterbase India Limited CDR India Phone: +91 44 30127009 Extn: 202 Phone : +91 22 6645 1230 / 1238 Email: gvenkatram@waterbaseindia.com Email: mayank@c
The Waterbase — Investor Presentation (September 2015) on 6ix