Manorama Industries Ltd. · NSE:MANORAMA
Manorama Industries — H1 FY23 Earnings Presentation
51 slides from Manorama Industries's earnings presentation, Nov 12, 2022
Slide 1: Manorama Industries Limited – Investor Presentation Cover Letter
& Manorama Industries Limited 2449 to 2610, Paraswani Road, Birkoni Industrial Area, Mahasamund-493445, C.G. INDIA November 12, 2022 To, To, The Manager, The Manager, BSE Limited {“BSE”} National Steck Exchange of India Limited (“NSE”) P. J Towers, Dalal Street, Fort, Mumbai - 400 001 Exchange Plaza
Slide 2: Manorama Industries Limited Investor Presentation — November 2022
09 Manorama Industries Limited Investor Presentation — November 2022
Slide 3: Safe Harbor
> Safe Harbor : This presentation and the accompanying slides (the “Presentation”), which have been prepared by Manorama Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Q2 & H1 FY23 Performance Highlights
Q2 & H1 FY23 Performance Highlights
Slide 5: Management Commentary — Q2 & H1 FY23
> Management Commentary — Q2 & H1 FY23 ; Commenting on the results and performance, Mr. Gautam Kumar Pal, Managing Director said: “The world began to overcome the pandemic’s obstacles gradually and steadily. As the economy recovered, we at Manorama, remained consistent with our performance and have
Slide 6: Q2 FY23 — Financial Highlights
Q2 FY23 — Financial Highlights & Revenue (Rs. In Mn) EBITDA (Rs. In Mn) Profit after Tax (Rs. In Mn) _— 13%) 807.1 ee 62.7 m8 711.4 38.5 92.8 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 EBITDA Margins (%) PAT Margins (%) 15.0% 8.8% 13.1% Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23
Slide 7: H1 FY23 — Financial Highlights
H1 FY23 — Financial Highlights & Revenue (Rs. In Mn) EBITDA (Rs. In Mn) Profit after Tax (Rs. In Mn) se 475 1162 @# 126.1 1,327.4 185.4 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 EBITDA Margins (%) PAT Margins (%) 16.1% 8.8% 8.2% 14.0% H1 FY22 H1 FY23 H1 FY22 H1 FY23
Slide 8: Q2 & H1 FY23 — Profit & Loss Account
Q2 & H1 FY23 — Profit & Loss Account , \ Revenue from Operations (Net of Excise) | 807.1 711.4 13% 729.7 11% 1,536.8 | 1,327.4 16% Update on financials Raw Material 470.1 353.0 416.8 886.9 703.5 ° In QLFY23, we had undertaken a temporary maintenance Employee Cost 33.6 27.6 29.4 63.0 54.3 shutdown of
Slide 9: September 2022 — Balance Sheet Statement
> September 2022 — Balance Sheet Statement Total Equity 2,811.3 2,682.6 Non - Current Assets 1,340.0 1,162.6 Share Capital 119.2 119.2 Property Plant & Equipment's 920.0 553.2 Reserves & Surplus 2,692.1 2,563.4 CWIP 292.2 415.8 Non Controlling Interest 0.0 0.0 Right-of-Use Assets 0.0 0.0 Goodwil 0.0
Slide 10: September 2022 — Cash Flow Statement
> September 2022 — Cash Flow Statement framers Net Profit Before Tax eee 179.6 335.1 Adjustments for: Non-Cash Items / Other Investment or Financial Items 72.7 121.3 Operating profit before working capital changes 252.3 456.5 Changes in working capital -287.6 -676.2 Cash generated from Operations -3
Slide 11: Business Update - New Expansion Plan & Fund Raise
Business Update - New Expansion Plan & Fund Raise
Slide 12: Expansion Plan
> Expansion Plan , a * For new investments in setting up new capacity of Fractionation and Refinery process by 25,000 MT per annum each along with supporting infrastructure with the total estimated capex of Rs. 65 Cr. * Board has also approved the acquisition of land around its factory at Birkoni fo
Slide 13: Details of Expansion Plan
> Details of Expansion Plan Solvent Extraction Plant Putting up a 300 TPD Solvent Extraction Plant. Currently the Company is doing Solvent extraction under job work process through a third-party vendor which entails additional transportation costs and processing costs. The said expansion will save o
Slide 14: Update on Capex
Update on Capex 6 Solvent Extraction Plant New Warehouse & As of 30th September 2022, the company has incurred Rs. 703.8 million towards this Capex Solvent Extraction Plant: The Company has successfully set up a 300 TPD Solvent Extraction Plant which will save on additional costs and lead to yield i
Slide 15: Capacity that Drives Growth
> Capacity that Drives Growth & & Seed Milling (Expeller) 60,000 60,000 1,20,000 i] Solvent Extraction ; 90.000 90.000 i Plant ’ ’ | laa Refinery 15,000 25,000 40,000 00 AB Interesterification 15,000 . 15,000 5 og RT Deodorisation 15,000 10,000 25,000 O Fractionation 15,000 25,000 40,000 Is." Blendi
Slide 16: Company Overview
Company Overview
Slide 17: About Us
About Us , Enjoys undisputed leadership as a key supplier to the Since its incorporation 16 years ago in 2005, started World’s Leading Fortune Companies in Food, with extracting butter and fats from Sal seeds and Chocolate, Confectionery and Cosmetic Industries Mango kernel and gradually forayed int
Slide 18: Key Milestones
> Key Milestones Enjoys undisputed leadership as a key supplier to the World’s Leading Fortune Companies in Food, Chocolate, Confectionery and Cosmetic Industries The unique business model of Manorama Industries Limited is the truest, finest example of serving under “AATMANIRBHAR BHARAT”. Directly/I
Slide 19: Experienced Board of Directors
> Experienced Board of Directors Gautam Kumar Pal — Managing Director Experience : 21 Years Background: He holds Doctorate in Mgmt. from National Inst. of Mgmt. , (Mah.}, studied Production and MBA in Production and Marketing from Amity University UP and also is B. Tech in Chemical. Plant is headed
Slide 20: Experienced Management Team
> Experienced Management Team 4 Ashish Saraf - President Dr. Krishnadath Bhaggan - VP - R&Din Apel Sten - VP — Projects (New & Existing) product development Degree in Chemical Engineering from Aalborg td A B.Com, having over 32 years of experience in “ Experience in R&D and Innovation for 21 yrs.+ H
Slide 21: Our Vision and Mission
> Our Vision and Mission , Acquire and maintain leadership position in chosen * Customer delight is our highest priority areas of business by innovating products and adopting unique co-development approach for different * Upliftment of livelihood of tribal people applications, and various segments u
Slide 22: Global Certifications
Global Certifications sume ()FSSC 22000 qeom 3 a 7 g e AN: CERT COSMOS SHEFEXIL “ ° ah NATU RAL Uutsl SSal GOVERNMENT OF INOIA < APEDA ——e i Shellac And Forest Products ae Export Promotion Council APEDA Agricultural & Processed Food Products Export Development Authority Ministry of Commerce & Indust
Slide 23: Our Commitment to UN Global Compact
Our Commitment to UN Global Compact Dy Committed to UN Sustainable Development Goals ty aA a CSL st Te) aUNM AE Soe ND SA\ . . Over the years, developed an extensive supply chain network of Ur Millions of women tribal and forest-dwellers beseseees and have positively impacted the livelihoods ey it]
Slide 24: ESG Initiatives
ESG Initiatives , o Planted more than 5,000 saplings last o Employees at Manorama are o To believe in good corporate year and 1,000 more to be planted considered the foundations of success, governance is to create long term this year. from creating a secure, attractive office value. environment to i
Slide 25: Recent Awards & Accolades (1/4)
> Recent Awards & Accolades (1/4) GLOBOIL INDIA 2022 Awards Ceremony & Conference Awarded four ‘Highest Unique Processors and Highest Unique Excellence in Exports of Vegetable Butters from India’ Solvent Awarded ‘Eminent Excellence in ESG & Sustainable Creation of Extractors’ Association of India at
Slide 26: Recent Awards & Accolades (2/4)
Recent Awards & Accolades (2/4) Manorama Industries Limited has meritoriously conferred five awards at the AGM organized by The Solvent Extractors’ Association of India on September 215*, 2022 25
Slide 27: Recent Awards & Accolades (3/4)
Recent Awards & Accolades (3/4) 7 Awarded Awarded Awarded ‘Highest Exporter of Kokum ‘Highest Exporter of Mango ‘Highest Exporter of Sal Oil Oil (Fats) 2020-21’ Kernel Oil (Fats) 2020-21’ (fats) 2020-21’ Consecutively from many years MIL has y \ meritoriously conferred 4 (four) awards at Awarded ‘Hi
Slide 28: Awards & Accolades (4/4)
Awards & Accolades (4/4) (3) National & International Awards Received by Manorama from Government of India, Ministry of Commerce and Various other National & International Organizations jt amg And Forest Produc Exp x ort Prtom omotion Counc 27
Slide 29: Our Business Model
Our Business Model
Slide 30: Weaving a Revolution - Wealth Out of Waste
> Weaving a Revolution - Wealth Out of Waste Waste to Wealth From Forests to Premium Brands From the Poorest to the Richest a As. => — Forest/ Plant grown seeds are major raw Collecting raw materials primarily exotic seeds Procuring Raw Materials from the marginalized materials from the forest triba
Slide 31: Collecting Nature's Gift to Make Natural Products
Collecting Nature’s Gift to Make Natural Products ; ~The Cocoa Butter Equivalent (CBE) and Fractionated Fats and Butter supplied i» 2 by Manorama Industries is made from the extracts of tree-borne seeds such -@ as Sal, Mango, Kokum, Mahua, Dhupa, Shea and Illipe. The Company sustainably sources tree
Slide 32: Enhancing Capacities for an Expanding Business
> Enhancing Capacities for an Expanding Business , it hoe eens Goins lees Garcia Gin ce Q To meet the huge surge in specialty tailor-made fats and CBE demand, the company has set up an a CL integrated state of the art manufacturing plant at Birkoni, near Raipur, Chhattisgarh. This includes all proce
Slide 33: Key Product Components — Tree Borne Seeds
> Key Product Components — Tree Borne Seeds Sal seeds Mango kernel Shea nuts > (Shorea robusta) (Mangifera indica) (Vitellaria paradoxa) * India has the largest Sal forests in the world, Sal seeds Mango is a seasonal fruit that is amply available across Shea nuts are found mainly in the West Africa
Slide 34: De-Oiled Cake for Cattle Industry
> De-Oiled Cake for Cattle Industry , Largest supplier of Cattle feed from the India is the world’s largest consumer of exotic natural tree borne seeds de-oiled cattle-feed & largest Milk Producer cakes to Indian cattle feed industry H1 FY23 Revenue contribution from cattle feed business Rs. 183.6.
Slide 35: Our Key Product Portfolio
> Our Key Product Portfolio Cocoa Butter Equivalent (CBE) Sal butter Sal stearin * CBEs are vegetable fats that are made up of * The butter content of the Sal * Itis the solid fraction of Sal the same fatty acids and triglycerides as seed is 13-14%, and it is Butter derived by solvent Coco Butter ab
Slide 36: Supply Chain Network
> Supply Chain Network , Manorama Supply Network in West - Africa Sal seed Collection Process in India Scattered Sal in forest bed Shea Forest Shea Tree Shea Fruit Picking of Shea nuts Seeds picking by tribal women At Manorama Manorama buying Shea nuts Deshelling of Boiling & Cleaning Pre-cleaning o
Slide 37: Procurement of Shea Nuts (Africa)
Procurement of Shea Nuts (Africa) C Developing a comprehensive and efficient system for procuring Shea nuts and other agricultural goods from Ghana's West African neighbors such as Burkina Faso, Ivory Coast, Mali, and others This system gives a competitive edge in meeting rising raw material require
Slide 38: World's Leading Brands are Our Customers
> World’s Leading Brands are Our Customers ( The Company derives major revenue from the chocolate and confectionery industry, with a significant portion of the balance revenues coming from the cosmetics industry VOREAL UNIGRA Mondelez International MITSUI&CO. WALTER RAU HANDMADE L 8 S fr COSMETICS u
Slide 39: Geographical Footprint
> Geographical Footprint ; | Domestic | International The Company enjoys a global The Company is Recognized by Gol as a ‘Star Export House’ | leadership position in the manufacturing and exporting of its products Note: Maps not to scale. All data, information, and maps are provided "as is" without w
Slide 40: Client Testimonials (1/2)
Client Testimonials (1/2) ; Meet the Women of Manorama — Article Published on |e Booy Shop V/ebsite MEET THE WOMEN OF MANORAMA Our bestselling Mango Body Butter is enriched with the goodness of Mango Seed Oil from India. Our Community Trade Mango Seed Oil is sustainably sourced from Manorama Industr
Slide 41: Client Testimonials (2/2)
Client Testimonials (2/2) Article Published on Lush Website Women empowerment Our organic and Fair For Life certified mango butter is sourced fromm Manorama Industries in Chhattisgarh, India. Manorama Industries work with local women’s cooperatives who hand-collect the mangoes from the forest floor,
Slide 42: Industry Overview
> Industry Overview * In May 2017, FSSAI allowed the use of 5% CBEs in Global Industry Landscape chocolates from January ist, 2018. With the positive change in the standards of chocolates, the CBE demand is [;FUJIOIL = estimated to grow substantially. BUNGE * India is one of the most important CBE m
Slide 43: Innovation & Research
Innovation & Research
Slide 44: Product Portfolio - MILCOA Range & Spread Fats
> Product Portfolio - MILCOA® Range & Spread Fats (6 We invest in innovation at Manorama to create value and manage our resources responsibly. We continue to prioritise R&D in order to develop unique specialty goods, and we have extensively invested in cutting-edge technology and processing faciliti
Slide 45: Excellence Through Innovation & Research
Excellence Through Innovation & Research Milcoa® Innovation & Research Center, a high standard research laboratory equipped with cutting-edge technologies Research & Development Centre Led by: . Dr. Krishnadath Bhaggan ° rN GE fi of | ‘al D \ . Collaborates closely with Develop creative innovative B
Slide 46: Historical Financial Highlights
Historical Financial Highlights
Slide 47: Financial Highlights
> Financial Highlights Revenue from Operations (Net of Excise) 2,791.2 2,026.3 1,882.4 1,024.0 Raw Material 1,546.2 1,199.0 867.3 495.4 Employee Cost 96.4 74.7 69.1 35.0 Other Expenses 759.2 406.0 507.6 210.7 EBITDA 389.4 346.6 438.5 282.8 EBITDA Margin 14.0% 17.1% 23.3% 27.62% Depreciation 78.9 79.
Slide 48: Balance Sheet Statement
> Balance Sheet Statement Total Equity 2,682.6 1,447.3 1,272.6 1,039.2 Non - Current Assets 1,162.6 737.4 628.8 357.9 Share Capital 119.2 111.3 111.3 111.3 Property Plant & Equipments 553.2 566.0 513.78 63.3 Reserves & Surplus 2,563.4 1,336.0 1,161.3 928.0 CWIP 415.8 0.0 0.0 155.1 Non Controlling In
Slide 49: Cash Flow Statement
> Cash Flow Statement ; [remetmtmenmmons Net Profit Before Tax rm res 335.1 223.6 323.7 265.6 Adjustments for: Non-Cash Items / Other Investment or Financial Items 121.3 164.2 145.9 23.2 Operating profit before working capital changes 456.5 387.8 469.6 288.8 Changes in working capital -676.2 32.9 -1
Slide 50: Growth Drivers - Market Strategy
> Growth Drivers - Market Strategy Optimum capacity utilisation at Birkoni and new capex Growing opportunities in Chocolate Industry The Birkoni Plant is currently operating at ~85% utilisation and is expected to A major driver for the sector is projected to be the growing habit of chocolate achieve
Slide 51: Thank You
Contact Information C Company : Investor Relations Advisor : Manorama Industries Limited Strategic Growth Advisors Pvt. Ltd. CIN: L15142MH2005PLC243687 CIN: U74140MH2010PTC204285 Mr. Ashok Jain — Chief Financial Officer Mr. Abhishek Shah E: investors@manoramagroup.co.in E: abhishek.shah@sgapl.net T: