Waterbase Limited · BSE:WATERBASE
Waterbase — Investor Presentation (September 2016)
44 slides from Waterbase's investor presentation, September 2016
Slide 1: Waterbase Limited Investor Presentation September 2016
Waterbase Limited Investor Presentation September - 2016
Slide 2: Contents and Safe Harbour Statement
Contents 2 Safe Harbour Statement: Certain statements in this presentation concerning our future plans, growth prospects, etc. are forward looking statements, 3 Company Overview which involve a number of risks and uncertainties that could cause actual results to differ materially from those indicate
Slide 3: Company Overview
Company Overview 3
Slide 4: Company Overview
Company Overview 4 Pioneer in Aquaculture business – over 20 years of experience – Incorporated in 1987 ; Commenced Operations in 1993 Rich Legacy: Part of the diversified Karam Chand Thapar Group (KCT Group) which has interests in coal, real estate, infrastructure, manufacturing and aquaculture
Slide 5: Locations
Locations 5 Registered office and factory Ananthapuram Village, T.P. Gudur Mandal, Delhi Nellore – 524 344, Andhra Pradesh. Corporate Office Kolkata No. 37, Thapar House, Montieth Road, Egmore, Chennai – 600 008 Nellore Group Corporate Office Chennai Delhi Kolkata Corporate Office Factory
Slide 6: Key Strengths
Key Strengths 6 Strong Brands Rich Legacy Technical Expertise • Several popular brands which are • Over two decades of expertise in • TWL enjoys unparalleled favoured by shrimp farmers the business- strong connect with technical expertise in the industry suppliers and farmers as the Pioneer • Enjoy
Slide 7: Product Portfolio
Product Portfolio 7 Shrimp Feed Processed Shrimp
Slide 8: R&D Strengths
R&D Strengths 8 Over 20 years of in-house Proven Research & competence in Development research and Works closely (R&D) Large unparalleled with reputed activities repository of technical institutes in the data: area of Aqua Feed nutrition, expertise in the Nutrition diseases, soil industry Research a
Slide 9: R&D Initiatives
R&D Initiatives 9 Promoting gut health & a stable gut BAY WHITE Enriched microflora: Natural antibacterial action USP Feature 1 Feature 2 Improved hepatopancreas function Natural Enhanced and stabilized gut antibacterial hepatopancreas microflora through action function natural bacteriostatic action
Slide 10: Shareholding Pattern
Shareholding Pattern 10 Indian Public 28.9% Promoters 57.4% Others 1.3% NRI 2.7% Corporate Institutions Bodies 8.1% 1.6% Data as on 30th June 2016 Note: On June 7th 2016, Promoters purchased additional 13,59,448 shares taking its overall ownership level to 60.9%. The Company had received intimation
Slide 11: Growth Strategy
Growth Strategy uy] ua o % w k g $
Slide 12: Business Strategy
Business Strategy 12 Strategy $ $$ Increase Scale Diversify Market Presence Diversify Revenue Streams
Slide 13: Business Strategy: Increase Scale
Business Strategy 13 Installed capacity at 35,000 MTPA. Post merger of PFL, combined capacity of 1,10,000 MTPA will be higher by 300% Increase volumes and market share by leveraging on strength of highly skilled technical manpower, brands salience, wider product portfolio, improved distribution
Slide 14: Business Strategy: Diversify Market Presence
Business Strategy 14 Widening distribution infrastructure to enhance pan-India presence – entering high potential markets like West Bengal, Gujarat and Odisha Will also scale up presence and reach in current strongholds of Tamil Nadu, AP & Telangana Deepening distribution network by adding new
Slide 15: Business Strategy: Diversify Revenue Streams
Business Strategy 15 Entering more verticals within the value chain – set to emerge as an integrated player from farm to fork Have commenced setting up of hatcheries to supply good quality seeds for shrimp farming - location and design finalised; expected completion in Q4 FY16 Restarted direct
Slide 16: Value Chain – Shrimp Industry
Value Chain – Shrimp Industry 16 Industry stages Strategy In the process of setting up Production of seeds hatcheries. First (P.L) for sale to hatchery expected to Current Status Hatchery farmers be completed by end FY17 Primary business for the Company Strategy The Company has Shrimps are grown G
Slide 17: Scheme of Amalgamation - Transaction Highlights
Scheme of Amalgamation - Transaction Highlights 17
Slide 18: Transaction Details
Transaction Details 18 Swap Ratio: 4:17; TWL to issue 4 fully paid up equity share for every 17 Shareholders – Significant Value Creation equity shares held by shareholders in PFL Pre-Amalgamation Post-Amalgamation Appointed Date of Scheme: 1st August 2015 Non - Non Promo Completion Date (exp)
Slide 19: Background - Pinnae Feeds Limited
Background - Pinnae Feeds Limited 19 • Pinnae Feeds Ltd., wholly owned subsidiary of Karam Chand Financials : Thapar & Bros (Coal Sales) Limited; the flagship company of • Revenues of Rs. 36.5 crore in FY15 from supply of feed to the KCT Group (promoters of TWL) TWL • Incorporated in: July, 2012 • G
Slide 20: Rationale for Amalgamation
Rationale for Amalgamation 20 TWL’s production capacity will increase from 35,000 MTPA to 1,10,000 MTPA Operational Consolidation Efficiencies of expertise TWL + PINNAE FEEDS = Shareholder WINNING Exploit Value COMBINATION Business Creation Synergies Optimal utilization of resources
Slide 21: Industry Overview
Industry Overview 21
Slide 22: Demand for seafood is rising globally
Demand for seafood is rising globally 22 Total seafood production in million tonnes Seafood production is expected to increase from 200 130mn tonnes in 2000 to ~170mn tonnes in 2030 150 Within this, the share of wild catch is expected to remain stable and incremental volumes are 100 expected lar
Slide 23: Global & Regional Trends
Global & Regional Trends 23 World Shrimp Aquaculture by Species: 6.0 Million M T 75% % Indicate the share of P. vannamei 5.0 73% 70% 71% 65% 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 24: Robust Track Record of Industry Growth
Robust Track Record of Industry Growth 24 In FY16, Marine product exports from India were Export Performance Since 2002-03 (US $ Million) at USD $4.7 billion. Last 6 yr CAGR – 14% o MPEDA’s stated target for the year 2016-17 US $ Million is US $5.6 billion USA remains the largest market for Indi
Slide 25: Driven by strong growth in Shrimp Exports
Driven by strong growth in Shrimp Exports 25 Volume Contribution Shrimp exports continue to report tremendous growth Frozen Others Non-frozen with a CAGR of ~18% in volume terms and 27% in value 12% 9% terms in the last 3 years Frozen Cepholopo ds Frozen shrimp continued to be the largest item i
Slide 26: Shrimp Exports
Shrimp Exports 26 EU 2015 2016 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 27: Factors behind Success of Shrimp Farming in India
Factors behind Success of Shrimp Farming in India 27 India has abundant coastline and its climatic conditions are favorable for shrimp Favorable Topography farming Availability Of Abundant farm labour at reasonable cost, availability of other inputs such as land and power and sustained high levels o
Slide 28: Key Challenges
Key Challenges 28 Risks • Diseases, weather patterns, fluctuating prices add to the unpredictability of the industry Fragmented Industry • Due to its nature it is difficult to regulate and ensure industry–wide implementation of standards. The unorganised structure also leads to challenges in financi
Slide 29: Growth Drivers
Growth Drivers 29 Aquaculture production is more Rise of the cost effective protein Increasing compared to consumption global demand agriculture/animal in the Indian of shrimps husbandry production diet Increasing Massive shift Rise in per preference for in Freshwater Income Growth capita income cos
Slide 30: Financial Overview
Financial Overview 30
Slide 31: Financial Performance
Financial Performance 31 Revenues 5 year CAGR : 32.57% EBITDA Margins 318.6* 40 15.0% 277.6 11.5% 11% 10.2% 10.2% 228.2 30 7.4% 23.4 10.0% 32.0 (in Cr) 157.0 135.0 20 14.5 5.0% 103.5 23.3 0.9% 10.5 11.6 10 0.0% 2.9# 0 -5.0% FY12 FY13 FY14 FY15 FY16 Q1 FY17 FY12 FY13 FY14 FY15 FY16 Q1 FY17 PBT Margin
Slide 32: Key Financials
Key Financials 32 Book value per share (Rs.) Earnings Per Share 25.7 25.9 5.1 23.4 22.5 4.7 * 21.1 4.4 (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 * 19.7 29.6 15.7 23.8 20.9 10.4 10.0 12.3 12.3 FY12 FY13 FY14 F
Slide 33: Key Financials
Key Financials 33 Net Worth Debt Equity Ratio 99.2 99.9 0.5 86.7 60.3 0.3 (in Cr) 54.2 0.1 0.1 0.1 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
Slide 34: Q1 FY17 Performance & Updates
Q1 FY17 Performance & Updates 34
Slide 35: Financial Performance
Financial Performance 35 INR Cr. Growth Growth Particulars Q1 FY17 Q1 FY16 (%) FY16 FY15 (%) Income from Operations 135.0 93.0 45.1% 318.6 279.5 14% EBITDA 14.5 12.6 15.0% 23.8 30.9 -23% EBITDA Margin (%) 10.7% 13.5% (283 bps) 7.5% 11.1% - PAT^ 9.0 8.0 11.1% 21.6 19.5 10.8% PAT Margin (%) 6.7% 8.6%
Slide 36: Business Update
Business Update 36 Feed Business Revenue Mix – FY16 • Robust volume growth in Q1FY17 • Growth was from core markets as well as Processing from new centres Others 5.27% • Positive traction from expansion into West 0.28% Bengal & Gujarat • Exported Feed to Nigeria • Launch of Baywhite Enriched • Obtai
Slide 37: Q1 FY17 – Business Review
Q1 FY17 – Business Review 37 • Resumed direct shrimp exports • Plan to set up Hatcheries is under with shipments directed towards execution – recent floods have Europe and U.S in FY16 delayed progress • Despatched over 200 MT • Location and design finalised – Exports Hatcheries • Received encouragin
Slide 38: Enhancing Brand Awareness
Enhancing Brand Awareness 38 Shop Signage Instore
Slide 39: Marketing & Distribution Initiatives
Marketing & Distribution Initiatives 39 Dealer Meets Farmer Meets
Slide 40: Industry Trends & Outlook
Industry Trends & Outlook 40
Slide 41: Global Demand & Production Trends in 2016
Global Demand & Production Trends in 2016 41 Despite a softer price trend, shrimp imports in the traditional developed markets remained disappointing in 2015-16 Global Demand The US which is the largest shrimp importer globally, elicited mixed signals due to unstable wholesale prices and a sever
Slide 42: Outlook
Outlook 42 The Global prices for shrimp have been largely stable over the last year. With diseases still rampant in Vietnam and China demand for Shrimp from other countries, including India, would be higher. Farm gate prices have held up so far in the 2016 farming season indicating that production m
Slide 43: Glossary
Glossary 43 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 Whi
Slide 44: Thank You
Thank You For more information about us, please visit www.waterbaseindia.com OR contact: G. Venkatram (C S & CO) Mayank Vaswani / Suraj Digawalekar The Waterbase India Limited CDR India Phone: +91 44 30127009 Extn: 202 Phone : +91 22 6645 1230 / 1235 Email: gvenkatram@waterbaseindia.com Email: mayan