Waterbase Limited · BSE:WATERBASE
Waterbase — The Waterbase — Investor Presentation (February 2017)
44 slides from Waterbase's investor presentation, February 2017
Slide 1: The Waterbase Limited Corporate Presentation - February 2017
The Waterbase Limited Corporate Presentation - February, 2017
Slide 2: Contents and Safe Harbour Statement
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: TWL – At a Glance
TWL – At a Glance 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 Dec 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: Awards & Accolades
Awards & Accolades • Bagged “2016 India Shrimp Feed Industry New Product Innovation Leadership Award” by Frost & Sullivan a leading global strategy consulting company 9 • Frost & Sullivan’s, 2016 New Product Innovation Leadership Awards identified companies that demonstrated measured excellence in n
Slide 10: Shareholding Pattern
Shareholding Pattern Indian Public 28.8% Promoters 10 60.9% Others 3.5% NRI 2.7% Corporate Institutions Bodies 2.5% 1.6% Data as on 31st December 2016
Slide 11: Growth Strategy
Growth Strategy
Slide 12: Growth Strategy
Growth Strategy Diversify market presence 12 • 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 13: Vertical & Horizontal Integration
Vertical & Horizontal Integration Segment Hatchery Farming Processing Finished Product (Shrimp) 13 KEY INPUTS Shrimp Feed Exports Water (Power) Domestic Market Labour New Growth Areas Farm Care Products 500 125,000 Ha Current Size of 400+ Processing Plants (No. of hatcheries under 3,73,866 MT1 Indus
Slide 14: New Initiatives – Farm Care Products
New Initiatives – Farm Care Products 14 Probiotics Vitamins & Minerals Healthcare Disinfectants
Slide 15: New Initiatives – Farm Care Products
New Initiatives – Farm Care Products Category Name Function 15 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 16: New Initiatives – Domestic Market Foray
New Initiatives – Domestic Market Foray • Phase I – Soft launch in Chennai in Dec 2016 with the brand ‘Prize Catch’ • Launched Raw Shrimps and Pasteurised Crab meat • Phase II – Plan to scale up launch in other Southern markets 16 • Plan to add other products to widen product range • Aiming for diff
Slide 17: Enhancing Brand Awareness
Enhancing Brand Awareness Shop Signage Instore 17
Slide 18: Marketing & Distribution Initiatives
Marketing & Distribution Initiatives Dealer Meets Farmer Meets 18
Slide 19: Scheme of Amalgamation - Transaction Highlights
Scheme of Amalgamation - Transaction Highlights
Slide 20: Transaction Details
Transaction Details Current Status Shareholders – Significant Value Creation Following the regulations notified by the Ministry of Corporate Affairs, all pending proceedings with the High Courts have been transferred to the benches of the Pre-Amalgamation Post-Amalgamation National Company Law Tribu
Slide 21: 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 22: Rationale for Amalgamation
Rationale for Amalgamation TWL’s production capacity will increase from 35,000 MTPA to 1,10,000 MTPA 22
Slide 23: Industry Overview
Industry Overview
Slide 24: 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 24 100 expected la
Slide 25: Shrimp Aquaculture Production by World Region
Shrimp Aquaculture Production by World Region 25 Sources: FAO (2016) for 1995-2011; FAO (2016) and GOAL (2014) for 2012-2014; GOAL (2016) for 2014-2018.
Slide 26: 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% 26 4.0 67% 3.0 59% 2.0 45% 16% 12% 1.0 0.0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 P. v
Slide 27: 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 27 • USA remains the largest market for Indi
Slide 28: 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 28 opo
Slide 29: Shrimp Exports
Shrimp Exports EU 2015 2016 29 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 30: Factors behind Success of Shrimp Farming in India
Factors behind Success of Shrimp Farming in India 30 30 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 31: Key Challenges
Key Challenges Diseases, weather patterns, fluctuating prices add to Risks the unpredictability of the industry 31 Inconsistent supply and rising cost of major ingredients of Raw shrimp feed such as soya Material and fish meal Inflation Access to quality broodstock and seeds which are key inputs to
Slide 32: Growth Drivers
Growth Drivers Aquaculture is more cost effective Rise of protein compared to Rise in per consumption Income agriculture/animal capita in the 32 Growth husbandry income Indian diet Increasing Increasing global Rapid switchover Massive shift preference demand to Vannamei in Freshwater for for in less
Slide 33: Financial Overview
Financial Overview
Slide 34: Financial Performance
Financial Performance Revenues 5 year CAGR : 32.57% EBITDA Margins 318.6* 40 15.0% 277.6 11.4% 10.8% 269.4 10.1% 10.1% 228.2 244.0 8.4% 30 7.4% 26.6 10.0% 24.4 22.8 34 32.0 (in Cr) 157.0 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 9MFY16 9MFY17 FY12 FY13 FY14 FY15
Slide 35: 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 35 (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 36: Key Financials
Key Financials Net Worth Debt Equity Ratio 99.2 99.9 0.5 86.7 36 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 37: Q3 & 9M FY17 Performance & Updates
Q3 & 9M FY17 Performance & Updates
Slide 38: 9M FY17 - Financial Performance
9M FY17 - Financial Performance Since July, 2016 revenues were impacted by wide spread outbreak of disease in key markets like AP & Tamil Nadu resulting in premature 38 Revenue growth for 9MFY17 on dip in demand for shrimp account of strong first half with feed healthy volume growth. Positive respon
Slide 39: Business Update
Business Update Feed Business • Healthy volume growth in start of the season – demand could not be sustained in latter part of season due to widespread impact of disease • Encouraging performance from new markets – expansion of dealer network continues • Launched Baywhite Enriched in 2015 , helped i
Slide 40: Industry Trends & Outlook
Industry Trends & Outlook
Slide 41: Domestic Market Trends
Domestic Market Trends • Contraction in Indian shrimp production despite bumper first crop owing to wide spread White spot, EHP and White feces diseases – conservative approach for successive crops this season • Heightened competitive intensity – discounts and extensive credits offered by new player
Slide 42: Outlook
Outlook Q3 and Q4 are seasonally weak quarters and the already subdued activity has been further impacted by demonetisation and disease situation. Lower than normal availability of shrimp has kept farm gate prices elevated. 42 Raw Material price inflation has started to moderate due to improved avai
Slide 43: Glossary
Glossary SPF Specific pathogen free FCR Feed conversion ratio 43 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 44: Thank You
Thank You 44 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: investor@waterbaseind
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