Waterbase Limited · BSE:WATERBASE
Waterbase — The Waterbase — Investor Presentation (May 2018)
48 slides from Waterbase's investor presentation, May 2018
Slide 1: Corporate Presentation May 2018
Corporate Presentation May 2018
Slide 2: Safe Harbour Statement
Safe Harbour Statement: 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 those indicated in such forwar
Slide 3: Contents
Contents 2 4 6 1 3 5 Growth Industry Industry Trends Strategy Overview: India / Outlook Shining Company Industry Overview: Overview Sustained Growth Financial Overview Momentum 3
Slide 4: Company Overview
Company Overview °| The yA Waterbase ‘SF | Limited
Slide 5: TWL – Niche Player in the high growth Aquaculture Industry
TWL – Niche Player in the Installed Manufacturing Yrs. In the capacity of Shrimp Feed Industry high growth Aquaculture Industry in Revenue CAGR FY13-18 Revenues In FY18 India Estimated size of Domestic Debt – Equity Shrimp feed Industry As of Mar 31, 2018 No. of #Dealers Employees Pan India Presence
Slide 6: Key Strengths
Key Strengths • Several popular brands which are favoured by shrimp • Robust manufacturing processes and step by step quality farmers control system • Enjoys high recall and is seen to be synonymous with • Global best practices implemented quality and value Strong Quality Brands Control • Working wi
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 of data: Track record nutrition, of introducing diseases, soil innovative and marine shrimp feeds conditions 25 years of in-house Proven competence in research Research & Development and unparalleled technical (R&D) activities exp
Slide 8: Strategic Alliance with CIBA
Strategic Alliance with CIBA ➢ Indian Council of Agricultural Research (ICAR), New Delhi under the Ministry of Agriculture, Government of India established the Central Institute of Brackish water Aquaculture (CIBA) ➢ CIBA, serves as the nodal agency for the development of brackish water aquaculture
Slide 9: Awards & Accolades
Most valuable business Award – Awards & Bagged ‘Asia’s Most Valuable Business Brand Award 2018’ in the Shrimp Feed category. Asia’s Most Accolades Valuable Business Brands is a concept developed by ibrands 360 in collaboration with WCRCINT (World Consulting and Research Corporation International). T
Slide 10: 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 11: Locations
Locations Delhi Tamil Nadu Andhra Pradesh Kolkata Corporate Office Nellore Chennai West Bengal Gujarat Odisha Factory Existing New Group Offices 11
Slide 12: Shareholding Pattern
Shareholding Pattern Promoters Indian Public As on 31st March 2018 63.72% 27.4% 3.4% 1.7% 0.9% 2.9% 27.4% Corporate 63.7% Others Bodies 3.4% 2.9% NRI Institutions 1.7% 0.9% 12
Slide 13: Growth Strategy
Growth Strategy °| The yA Waterbase ‘SF | Limited
Slide 14: Growth Strategy
Growth Strategy Vertical & Horizontal Integration to In-house enhance business stability capacity has increased post Increase merger from 35,000 MTPA market share and to 110,000 MTPA • Launched farm care enhance presence outside of current strongholds by products under the brand Elevate name ‘Baylif
Slide 15: Driving Premiumisation in the Feed Business
Driving Premiumisation in the Feed Business Branding & After Sales Packaging service Enhancing Farming R&D inputs & Feed techniques for disease performance management 15
Slide 16: Vertical & Horizontal Integration
Vertical & Horizontal Integration Finished Product Hatchery Farming Processing (Shrimp) Segment KEY INPUTS • Shrimp Feed • Farm Care Products New Growth Areas Shrimp farming-Current 500 150,000 Ha 500 Processing Plants for Frozen shrimp exports in status (No. of hatcheries in India) Under Farming sh
Slide 17: Diversifying Revenue Streams
Diversifying Revenue Streams Farm Feed Care Diversifying Revenue Streams Hatchery Exports 17
Slide 18: Feed and Farm care range of products
Feed and Farm care range of products Shrimp Feed Farm care range 18
Slide 19: New Initiatives – Farm Care Products
New Initiatives – Farm Care Products NutriSorb VC-9 Absorbs Ammonia Farm Probiotic for Vibrio control NutriPond NutriGut Promotes growth of Protects Gut good bacteria NutriFeast Builds Immunity Launched in FY17; received positive response from the customers Will expand extensively to all touch point
Slide 20: New Initiatives – Processed Seafood in the Domestic Market
New Initiatives – Processed Seafood in the Domestic Market Phase - II ➢ Plan to scale up Phase - I launch to other major Aiming for cities in differentiated offering ➢ Launched line of frozen seafood under ➢ Plan to add other with a focus on products to widen the brand ‘Prize product range quality a
Slide 21: Industry Overview 1 – Sustained Growth Momentum
Industry Overview 1 – Sustained Growth Momentum
Slide 22: Global seafood market
Global seafood market Particulars Value 2017 Trade Value 153.5 (exports USD billion) Trade Volume 60.7 (live weight) Percapita sea-food consumption 47.6 44.5 34.7 33.9 30.3 6.6 Japan China Indonesia Vietnam Phillipinnes India 22
Slide 23: Global Seafood Industry: Overview
Global Seafood Industry: Overview Total Utilization 2017 Segment wise size in Food 153 the year 2017 (In Aquatic Feed is the fastest growing sub-segment US$ bn) Feed 16 within the Feed Space Others 5 0.7 9.1 5.0 4.1 0.6 2016 6.6% 6.2% 5.8% 5.6% 4.7% Food 151 Feed 14 Others 5 Aquatic Poultry Swine Ru
Slide 24: 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 25: 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 26: Capture v/s Aquaculture
Capture v/s Aquaculture 2010 2026P 40.0% 60.0% 53.0% 47.0% ➢ During 2006 and 2016, while the global aquaculture production grew at 5.2% CAGR, capture fisheries rose at a 0.2% CAGR ➢ Share of aquaculture in overall seafood industry increased by approximately 1,200 bps from 34% in 2006 to 46% in 2016
Slide 27: 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 2008 2006 2007 2009 2010 2011 2012 2
Slide 28: Global & Regional Trends
Global & Regional Trends World Shrimp Aquaculture by Species: Million M T 2005 2017 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2018 P. vannamei P. monodon M. rosenbergii Other ➢ Aquaculture volumes have grown 4.5x over the last 20 years t
Slide 29: Growth Drivers
Growth Drivers Rapid Rise of switchover to protein Vannamei Aquaculture consumption farming Very high is more cost for balanced across the return, short effective diet globe crop period compared to Increasing global leading to agriculture/ Limited rapid animal natural demand for Adoption of shrimps
Slide 30: Industry Overview 2 – India Shining
Industry Overview 2 – India Shining
Slide 31: 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 32: Driven by strong growth in Shrimp Exports
Driven by strong growth in Shrimp Exports Marine Export – Frozen shrimp ➢ Shrimp exports continue to report tremendous growth continues to be 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 33: 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% 33
Slide 34: 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 34
Slide 35: India – leading exporter of Shrimp to USA
India – leading exporter of Shrimp to USA Volume 32% 25% 25% 23% 20% 19% 18% 19% 18% 18% 17% 18% 16% 15% 16% 15% 14% 13% 14% 12% 11% 11% 12% 11% 12% 13% 10% 11% 8% 8% India Indonesia Thailand Ecuador Vietnam 2012 2013 2014 2015 2016 2017 Value 33% 27% 26% 24% 21% 20% 20% 19% 19% 18% 17% 17% 15% 14%
Slide 36: 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 37: Growth Drivers
Growth Drivers Government’s push on developing Increasing reliability aquaculture in India of suppliers with sophistication and value addition of Growth in demand products in end user markets Large coastline like US and S. E. offers huge Asia Economics of untapped potential shrimp farming for shrimp
Slide 38: Key Challenges
Key Challenges External Expected Increase Diseases, weather patterns, fluctuating in Competition global prices of shrimp Quality of Inputs make the industry Significant capacities inherently unpredictable Access to quality brood have come up stock and seeds which in recent years and are key inputs t
Slide 39: Financial Overview
Financial Overview | The yA Waterbase ‘SF | Limited
Slide 40: Financial Performance
Financial Performance Revenue EBITDA Margins (%) PBT Margins (%) PAT Margins (%) 16.9% 14.1 CAGR: 17% 48.6 8.7% 58.3 (in Cr) 344.3 10.8 7.0 323.4 11.4 301.7 10.1 8.9 5.9 279.5 9.5 30.2 29.9 229.6 32 30.8 7.4 5.5 3.8 3.6 157.6 23.3 4.8 20.4 17.9 19.5 11.6 0.9 13.6 9.6 3.2 11.6 7.6 0.7 2.6 6 2.2 FY13
Slide 41: Key Financials
Key Financials Book value per Earnings Per Return on net Return on Net Worth Debt Equity 149.6 share (Rs.) Share worth (%) Capital Ratio Employed (%) 36.1 7.6 124.5 0.5 0.5 0.5 113.2 30.1 19.7 20.0 30.3 30.7 27.3 99.2 25.7 23.4 86.7 5.1 15.7 24.3 22.5 4.4 60.3 17.5 3.0 10 9.3 0.2 12.7 2.3 0.1 0.1 4.
Slide 42: FY18 Performance Updates
FY18 Performance Updates ya A The Waterbase Limited
Slide 43: FY18 - Financial Performance
FY18 - Financial Performance Growth Particulars FY18 FY17 (%) Total Income 344 323 6.5% EBITDA 58 31 87.1% EBITDA Margin (%) 16.9 9.5 +740 bps Strong demand from existing customers and increased product acceptability across new PAT 30 12 150% markets helped deliver revenue growth of 7% PAT Margin (%
Slide 44: FY18 v/s FY17 – Revenue Break-up
FY18 v/s FY17 – Revenue Break – up INR Cr. Growth Particulars FY18 FY17 (%) Feed 325.8 295.9 10.1% Processing 13.5 25.6 (47.4) Farm Care 3.2 0.1 Others 0.3 0.3 (13.5) Revenue from Operations 342.7 321.9 6.5% Other Income 1.5 1.6 (2.5%) Total Income 344.3 323.5 6.4% 44
Slide 45: Business Update
Business Update Feed Business Other Business Lines • Healthy volume growth during the fiscal – shrimp production has extended into newer • TWL currently offers frozen areas leading to strong growth in volumes shrimps and Pasteurized Crab Meat under the ‘Prize Catch’ • Continued strong traction in ex
Slide 46: Industry Trends & Outlook
Industry Trends & Outlook IW =< —_——- = Waterbase Limited
Slide 47: Domestic Market Trends & Outlook
Domestic Market Trends & Outlook ➢ India is well poised to become the largest shrimp producer in 2018 ➢ Huge growth potential, shrimp farming now spreading to new areas ➢ Input prices for shrimp feed which remained soft for large part of 2017 have started firming up since the beginning of 2018, the
Slide 48: Thank You
Thank You Iw. The Waterbase Limited Powered by International gua Nutrition _———-e me Technology _A-um