Slide 1: Corporate Presentation
Corporate Presentation August 2017
Slide 2: 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 3: Company Overview
7 A v lay THE WATERBASE LIMITED Company Overview
Slide 4: TWL – Niche Player in the high growth Aquaculture Industry
Feed Capacity post Yrs. In the Amalgamation of PFL Industry TWL – Niche Player in the Revenue Revenues high growth CAGR FY12>17 In FY17 Aquaculture Industry in Estimated size of Domestic Mkt. share Shrimp feed Industry (Domestic) India Debt – Equity Shrimp Exports in As of Mar 31, 2017 FY17 No. of #
Slide 5: 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 • Enjoy high recall and are seen to be •
Slide 6: Product Portfolio
Product Portfolio Shrimp Feed Processed Shrimp 6
Slide 7: 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 8: 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 9: Locations
Locations Delhi Tamil Nadu Andhra Pradesh Kolkata Corporate Office Nellore Chennai West Bengal Gujarat Odisha Factory Existing New 9 Group Offices
Slide 10: Shareholding Pattern
Shareholding Pattern Promoters Indian Public 61.01% 27.4% Corporate Others Bodies 3.5% 3.7% NRI Institutions 2.6% 1.7% Data as on 30th June 2017 10
Slide 11: Growth Strategy
>~ (eo) 1) —_ 5 = —_ Y tS —_ > {e) += O 7 A WW. THE WATERBASE LIMITED
Slide 12: Growth Strategy
Growth Strategy Vertical & Horizontal Integration to enhance Increase market share business stability: and enhance presence • Restarted exports of outside of current frozen shrimp - strongholds by despatched 407 tonnes Elevate presence • Adding new dealers in FY17 Following in current & distributors
Slide 13: 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 14: 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. Exports Source – www.mpeda.in Water (Power) 2. First Hatchery is under construction and expected to be Domestic Market Labour co
Slide 15: Diversifying Revenue Streams
Diversifying Revenue Streams - Retail Farm Care Diversifying Revenue Streams - Hatchery Exports 15
Slide 16: 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 16
Slide 17: New Initiatives – Domestic Market Foray
New Initiatives – Domestic Market Foray Phase - I Soft launch in Chennai in Dec 2016 with the brand ‘Prize Catch’ Aiming for – Launched Raw Shrimps and Pasteurised Crab meat differentiated offering with a focus on quality and freshness – Initially Phase - II will focus on institutional (HORECA) sa
Slide 18: Industry Overview 1 – Sustained Growth Momentum
Industry Overview 1 – Sustained Growth Momentum 18
Slide 19: Global Demand for Seafood to remain strong; Aquaculture to drive future supply
Global Demand for Seafood to remain strong; Aquaculture to drive future supply 7 13 26 Supply of wild catch (from the sea) is 38 40 40 42 43 44 expected to remain stagnant - All incremental supply will come from aqua culture (Farmed Shrimp) 93 87 74 62 60 60 58 57 56 Aquaculture’s share in total
Slide 20: 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 2009 2006 2007 2008 2010 2011 2012 2
Slide 21: Global & Regional Trends
Global & Regional Trends World Shrimp Aquaculture by Species: % Indicate the share of P. vannamei Million M T 1999 2008 2017 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 2014 2015 2016 P. vannamei P. monodon M. rosenbergii Other Aquaculture volumes have grow
Slide 22: 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 23: Industry Overview 2 – India Shining
Industry Overview 2 – India Shining 23
Slide 24: Indian Shrimp Industry - Overview
Indian Shrimp Industry - Overview 6.3% of total global Marine exports of USD 5.78 aquaculture production bn (all time high) during FY17 $ Fisheries Industry ~ USD 15 bn 20,255 Mn Tonnes processing capacity 2% of India’s total export 506 processing plants earnings over the last four years 24
Slide 25: Robust Track Record of Industry Growth
Robust Track Record of 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 274.6 b
Slide 26: 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 27: 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% 27
Slide 28: 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 28
Slide 29: Factors behind Success of Shrimp Farming in India
Factors behind Success of Shrimp Farming in India India has abundant coastline and its The introduction of the L. Vannamei climatic conditions are favorable for species altered the dynamics of shrimp shrimp farming farming through a significant shift in economic viability of farms Attractive Favorab
Slide 30: Growth Drivers
Growth Drivers Government’s push on developing Increasing reliability of aquaculture in suppliers and 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 31: Key Challenges
Key Challenges Diseases, weather patterns, fluctuating global prices of External shrimp add to the unpredictability of the industry 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 Competi
Slide 32: Financial Overview
7 A .) lar THE WATERBASE LIMITED Financial Overview
Slide 33: Financial Performance
Financial Performance Revenue EBITDA Margins (%) PBT Margins (%) PAT Margins (%) 500 350 50 11.4 50 50 CAGR: 10.8 26.24% 10.4 7.0 450 45 10.1 45 45 300 400 40 40 8.9 40 6.0 (in Cr) 250 35 5.4 350 7.5 35 35 300 30 6.6 331.9 200 30 30 32 7.4 5.8 30.2 299.8 3.8 250 25 25 25 277.6 24.9 150 20 200 20 3.8
Slide 34: Key Financials
Key Financials Book value per Earnings Per Return on net Return on Net Worth Debt Equity 111.2 share (Rs.) Share worth (%) Capital Ratio Employed (%) 99.2 98.9 28.8 5.1 0.5 19.7 29.6 86.7 25.62 25.7 4.4 23.4 22.5 15.7 23.8 21.1 60.3 20.4 3.3 54.2 0.3 11.3 10.4 10 2.3 2.2 12.3 12.3 0.2 0.1 0.1 0.1 2.
Slide 35: Q1 FY18 Performance & Updates
Q1 FY18 Performance & Updates 35
Slide 36: Q1 FY18 - Financial Performance
Q1 FY18 - Financial Performance Q1 Q1 Growth Positive start to the season with healthy volume Particulars FY17 offtake – However, variables in new markets led FY18 FY17 (%) to stable volume performance compared to high base of last year. Income from Operations 131.8 135.4 (2.7) % 331.8 Softening of
Slide 37: Business Update
Business Update Feed Business Other Business Lines • Healthy volume growth in start of the season – continued strong traction in existing • TWL has forayed into sale of markets processed seafood in the domestic market in Dec 2016 • Faced variables in some new markets due to which could not repeat la
Slide 38: Industry Trends & Outlook
Industry Trends & Outlook 38
Slide 39: Domestic Market Trends
Domestic Market Trends Healthy rebound in shrimp farming production following disease and uncertainty towards end of Farming season 2016 Positive growth in area under cultivation – the Industry is likely to be growing in double digits Raw Material prices are at all time lows – strong tailwinds
Slide 40: Outlook
Outlook India’s seafood exports touched an all-time high of $5.78 billion in FY17. Major factors contributing to the strong growth in FY17 include increased production of Vannamei shrimp, diversification of aquaculture species, sustained measures to ensure quality and increase in infrastructure faci
Slide 41: Thank You
7 A .) lar THE WATERBASE LIMITED Thank You