Waterbase Limited · BSE:WATERBASE
Waterbase — The Waterbase — Investor Presentation (February 2018)
46 slides from Waterbase's investor presentation, Feb 19, 2018
Slide 1: R SURESHKUMAR Date: 2018.02.19
Digitally signed by R R SURESHKUMAR SURESHKUMAR Date: 2018.02.19 11:08:38 +05'30'
Slide 2: Corporate Presentation
Corporate Presentation February 2018
Slide 3: Contents and Safe Harbour Statement
Contents Safe Harbour Statement: Company Overview 3 Certain statements in this presentation concerning our future plans and strategies growth prospects, etc. are forward looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from Gr
Slide 4: Company Overview
7 A v lay THE WATERBASE LIMITED Company Overview
Slide 5: TWL – Niche Player in the high growth Aquaculture Industry
TWL – Niche Installed Manufacturing Yrs. In the capacity of Shrimp Feed Industry Player in the high growth Revenue Revenues Aquaculture CAGR FY12-17 In FY17 Industry in India Estimated size of Domestic Shrimp feed Industry Debt – Equity As of Sep 30, 2017 No. of #Dealers Employees Pan India Presence
Slide 6: Key Strengths
Key Strengths Strong Brands Quality Control Rich Legacy • Several popular brands which are • Robust manufacturing processes and • Over two decades of expertise in favoured by shrimp farmers step by step quality control system the business- strong connect with • Enjoys high recall and is seen to be •
Slide 7: Product Portfolio
Product Portfolio Shrimp Feed Processed Shrimp 6
Slide 8: R&D Strengths – Best local R&D Setup in the Industry
R&D Strengths – Best local R&D Setup in the Industry Large repository Track record of Proven Farmer training Works closely Continuous Over 20 years of data: introducing competence in and testing of with reputed interaction with of in-house nutrition, innovative shrimp research and R&D initiatives in
Slide 9: Awards & Accolades
Bagged “2016 India Shrimp Feed Industry New Product Innovation Awards & Leadership Award” by Frost & Sullivan a leading global strategy Accolades consulting company Frost & Sullivan’s, 2016 New Product Innovation Leadership Awards identified companies that demonstrated measured excellence in new, in
Slide 10: Locations
Locations Delhi Tamil Nadu Andhra Pradesh Kolkata Corporate Office Nellore Chennai West Bengal Gujarat Odisha Factory Existing New 9 Group Offices
Slide 11: Shareholding Pattern
Shareholding Pattern Promoters Indian Public 63.67% 25.83% Corporate Others Bodies 1.9% 5.0% NRI Institutions 1.9% 1.7% Data as on 31st December 2017 10
Slide 12: Growth Strategy
>~ (eo) 1) —_ 5 = —_ Y tS —_ > {e) += O 7 A WW. THE WATERBASE LIMITED
Slide 13: Growth Strategy
Growth Strategy Vertical & Horizontal Increase market share Integration to enhance and enhance presence business stability: outside of current strongholds by • Launched farm care Elevate presence products under the • Increasing the brand name ‘Baylife’ Available in current farmer base • Launched pac
Slide 14: Driving Premiumisation in the Feed Business
Driving Premiumisation in the Feed Business Enhancing R&D inputs & Farming Branding & After Sales Feed techniques for Packaging service performance disease management 13
Slide 15: Vertical & Horizontal Integration
Vertical & Horizontal Integration Segment Hatchery Farming Processing Finished Product (Shrimp) KEY INPUTS Shrimp Feed 1. Volume of Shrimp Exports from India in FY2016-17. New Growth Areas Source – www.mpeda.in Farm Care Products 2. First Hatchery will be commissioned in Q1 of FY 2018-19 Shrimp farm
Slide 16: Diversifying Revenue Streams
Diversifying Revenue Streams Feed Farm Care Diversifying Revenue Streams Hatchery Exports 15
Slide 17: New Initiatives – Farm Care Products
New Initiatives – Farm Care Products Category Name Function 5 1 1 Probiotics VC-9 Farm Probiotic for Vibrio control 2 Probiotics NutriPond Promotes growth of good bacteria 3 Probiotics NutriFeast Builds Immunity 4 2 4 Healthcare NutriGut Protects Gut 3 5 Ammonia Binder NutriSorb Absorbs Ammonia Laun
Slide 18: New Initiatives – Processed Seafood in the Domestic Market
New Initiatives – Processed Seafood in the Domestic Market Phase - I Launched line of frozen seafood under the brand ‘Prize Catch’ Aiming for – Initially launched Raw Shrimps and Pasteurised differentiated offering Crab meat with a focus on quality – Soft - launch in Chennai in Dec 2016 and freshn
Slide 19: Industry Overview 1 – Sustained Growth Momentum
Industry Overview 1 – Sustained Growth Momentum 18
Slide 20: Global Demand for Seafood to remain strong; Aquaculture to drive future supply
Global Demand for Seafood to remain strong; Aquaculture to drive future supply SEAFOOD CONSUMPTION (000 tons) Data (2006) Projection (2030) Capture 64,533 58,159 Aquaculture 47,164 93,612 Global Total 111,697 151,771 Source: www.fao.org 7 13 26 38 40 40 42 43 44 93 87 74 62 60 60 58 57 56 1980 1990
Slide 21: Global Demand for Seafood to remain strong; Aquaculture to drive future supply
Global Demand for Seafood to remain strong; Aquaculture to drive future supply SEAFOOD CONSUMPTION Seafood production is forecasted to rise (000 tons) 36% over a period of 2006 to 2030 Data (2006) Projection (2030) from 111 mn tonnes to ~152 mn tonnes Capture 64,533 58,159 Within this, wild catc
Slide 22: World aquaculture production: major species groups in 2006
World aquaculture production: major species groups in 2006 Quantity 54% Of the total Seafood Production, Crustaceans (Crab, Lobster, Shrimp) 27% represent 9% by quantity but 23% by value 9% 6% 3% 1% Freshwater Molluscs Crustaceans Diadromous Marine fishes aquatic Within Crustaceans, Shrimp remai
Slide 23: Shrimp Aquaculture Production
Shrimp Aquaculture Production 22
Slide 24: Asia is the primary supplier of global shrimp; India the dominant force in Asia
Asia is the primary supplier of global shrimp; India the dominant force in Asia Asian region dominates global shrimp supply India the dominant force in Asian region Asia LATAM 0.7 0.7 0.8 0.5 0.5 0.6 0.6 0.6 0.5 0.4 0.5 2.1 2.2 2.2 2.3 2.4 2.5 2.4 2.4 2.5 2.7 2.7 2015F 2016F 2006 2007 2008 2009 2010
Slide 25: Global & Regional Trends
Global & Regional Trends World Shrimp Aquaculture by Species: Million M T 1995 2014 2015 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2016 2017 2018 P. vannamei P. monodon M. rosenbergii Other Aquaculture volumes have grown 4.5x over the last 20 years t
Slide 26: Growth Drivers
Growth Drivers Very high return, short crop period leading to rapid expansion Adoption of new technologies Rapid switchover to Vannamei farming across the globe Increasing global demand for shrimps Rise of protein consumption for balanced diet Limited natural resources & growing population Aquacultu
Slide 27: Industry Overview 2 – India Shining
Industry Overview 2 – India Shining 26
Slide 28: Robust Track Record of Aqua Industry Growth
Robust Track Record of Aqua Industry Growth Export Performance Since 2002-03 (US $ Million) In FY17, Indian seafood exports touched an all-time high of 1.13 million tonnes valued at $5.78 billion. US $ Million Marine exports constituted 2.1% of the total Indian export earnings from goods (USD 27
Slide 29: Driven by strong growth in Shrimp Exports
Driven by strong growth in Shrimp Exports Marine Export – Frozen shrimp continues to be Shrimp exports continue to report tremendous growth highest contributor with a CAGR of ~18% in volume terms and 27% in value terms in the last 3 years Frozen shrimp maintained its position as the top item of
Slide 30: Shrimp Exports – Main Markets
Shrimp Exports – Main Markets EU (-5.8%) 2016 2017 Japan (-8.5%) USA (+24%) 81,849MT 77,178MT 2016 2017 2016 2017 22% 18% 34,204MT 31,284MT 134,144 MT 165,827 MT 9% 7% 36% 38% S.E. Asia (+62%) 2016 2017 65,188MT 105,763MT 17% 24% 29
Slide 31: India's share in US shrimp imports rising
India’s share in US shrimp imports rising Share of US Shrimp Imports (%) 12 8 15 4 6 5 33 6 10 India’s share in US shrimp 10 2011 2016 26 imports has risen from 12 10% to 26% 10 (2011-16) 10 13 20 30
Slide 32: Factors behind Success of Shrimp Farming in India
Factors behind Success of Shrimp Farming in India India has an abundant coastline and its The introduction of the L. Vannamei climatic conditions are favorable for species shifted the dynamics of shrimp shrimp farming farming through a significant improvement in economic viability of farms Attractiv
Slide 33: Growth Drivers
Growth Drivers Government’s push on developing Increasing reliability of aquaculture in suppliers with India sophistication and value addition of products Growth in demand in Large coastline end user markets like US offers huge Economics of and S. E. Asia untapped potential shrimp farming for shrimp
Slide 34: Key Challenges
Key Challenges Diseases, weather patterns, fluctuating global prices of External shrimp make the industry inherently unpredictable Signficant capacities have come up in recent years and suppliers may Expected resort to aggressive marketing in Increase in order to offload capacities and / or increase
Slide 35: Financial Overview
7 A .) lar THE WATERBASE LIMITED Financial Overview
Slide 36: Financial Performance
Financial Performance Revenue EBITDA Margins (%) PBT Margins (%) PAT Margins (%) 500 350 50 50 50 CAGR: 10.8 450 20% 45 45 45 300 7.0 400 40 11.4 40 40 (in Cr) 250 35 10.1 5.9 350 9.5 35 8.9 35 300 30 200 30 30 323.4 32 30.8 30.2 301.7 7.4 5.5 250 25 25 279.5 4.8 25 3.8 3.8 150 20 200 20 23.3 20 229
Slide 37: Key Financials
Key Financials Book value per Earnings Per Return on net Return on Net Worth Debt Equity share (Rs.) Share worth (%) Capital Ratio 124.5 Employed (%) 113.2 30.1 0.5 0.5 0.5 5.1 27.3 99.2 25.7 19.7 30.3 4.4 23.4 86.7 22.5 15.7 24.3 60.3 3.0 17.5 2.3 10 9.3 12.7 0.1 0.1 0.6 1.9 4.2 FY17 FY13 FY13 FY14
Slide 38: Q3 FY18 Performance & Updates
Q3 FY18 Performance & Updates 37
Slide 39: Q3 FY18 - Financial Performance (Standalone)
Q3 FY18 - Financial Performance (Standalone) Q3 Q3 Growth Particulars FY18 FY17 (%) Continued strong demand from existing Income from Operations 60 53 13.2 customers and increased product acceptability across new markets helped deliver revenue growth of 13% EBITDA 7 2 250 Strong volume growth in fee
Slide 40: Q3 FY18 v/s Q3 FY17 – Revenue Break-up
Q3 FY18 v/s Q3 FY17 – Revenue Break – up INR Cr. Q3 Q3 Growth Particulars FY18 FY17 (%) Feed 58 41 41% Exports 1 12 -92% Others 1 0 - Total Revenues 60 53 13% 39
Slide 41: NCLT approves Scheme of Amalgamation
NCLT approves Scheme of Amalgamation National Company law tribunal (NCLT), Hyderabad, sanctions the scheme of amalgamation of Pinnae Feeds Limited with the Company Date of Order – November 14, 2017 Swap ratio: 4:17; TWL to issue 4 fully paid up equity share for every 17 equity shares held by s
Slide 42: Business Update
Business Update Feed Business Other Business Lines • Healthy volume growth in the first nine months – shrimp production has extended into • TWL currently offers frozen newer areas leading to strong growth in volumes shrimps and Pasteurized Crab Meat under the ‘Prize Catch’ • Continued strong tractio
Slide 43: Industry Trends & Outlook
Industry Trends & Outlook 42
Slide 44: Domestic Market Trends
Domestic Market Trends Healthy rebound in shrimp farming production in 2017 following a weak Farming season 2016 – India is poised to emerge as the largest shrimp producer globally in Farming season 2018 There is great level of anticipation for the upcoming season – ponds are ready, hatcheries a
Slide 45: Outlook
Outlook Strong demand for frozen shrimp and frozen squid helped boost marine products industry’s exports to 2,51,735 tonnes of seafood, valued at ₹9,066.06 crore ($1.42 billion), during April-June 2017 compared to 2,01,223 tonnes and $1.17 billion, respectively, a year earlier. The US, largest impor
Slide 46: Thank You
7 A .) lar THE WATERBASE LIMITED Thank You
The Waterbase — Investor Presentation (February 2018) on 6ix