Awl Agri Business Ltd · NSE:AWL
Awl Agri Business — Adani Wilmar — Investor Presentation (August 2024)
69 slides from Awl Agri Business's investor presentation, Aug 21, 2024
Slide 1: Intimation for interaction with Analysts / Investors
adani wilmar Ref No: AWL/SECT/2024-25/51 August 21, 2024 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 543458 Scrip Code: AWL Dear Sir, Madam, Sub: Intimation fo
Slide 2: Investor Presentation August 2024
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Slide 3: Disclaimer
Disclaimer The information contained in this presentation is provided by Adani Wilmar Limited (together with its subsidiaries, the “Company” or “AWL”) to you solely for your reference and for information purposes only. By accessing this presentation, you are agreeing to be bound by the trailing rest
Slide 4: Adani Wilmar Limited as of Today [1/2]
Adani Wilmar Limited as of Today [1/2] Market Leader with Diversified Product Portfolio with Presence across Price Points Scaled & Iconic Brand Over 2 decades of trust Edible Oil Food & FMCG \ Industry Essentials Edible #1 Oil player j ----------------------------------------------------------------
Slide 5: Adani Wilmar Limited as of Today [2/2]
• Adani Wilmar Limited as of Today [2/2] End to End Integration Leading to Superior Efficiencies and Quality Control Extensive World-Class Strong Parentage with Sourcing Network Manufacturing Plants Complementary Strengths D D An intricate network of suppliers across continents Long standing relatio
Slide 6: AWL has been a compounding growth story since inception in 1999
AWL has been a compounding growth story since inception in 1999 Revenue EBITDA INR Crores INR Crores 22% 24% CAGR CAGR 64% 37% 39% 34% 17% 13% 15% 30% 30% 10% 6% 6% 52,502 29,657 1,623 1,310 - - - 3,393 12,043 17,887 417 1,825 141 404 FY 01 FY 04 - FY 08 r FY 12 r FY 16 FY 20 r LTM June 24 15 FY 01
Slide 7: AWL: Addressing large opportunity in packaged staple foods
AWL: Addressing large opportunity in packaged staple foods Our Business segments Edible Oil & Foods business Chemicals & other Industrial Essentials Edible Oil Food & FMCG Industry Essentials Major Products Products Products Soap Noodles Glycerine Stearic Acid Distilled Fatty Acid Sunflower Soyabean
Slide 8: Addressing opportunity through a household brand name
Addressing opportunity through a household brand name ( fo rtune rice Soft roti ka vaada CD _) C edible oils and foods ‘Fortune’ brand size is INR 20,000+ Crores rtune· refined sunflower oil Our other brands KING'S' EDIBLE OILS altfe· • Gold Refined Sunflower Oil ···--------------~ fi rtune· edible
Slide 9: Our strengths enabled dominant leadership in Edible Oils
Our strengths enabled dominant leadership in Edible Oils Leading in most of the markets Leadership across oils Dominant Leader 19.0% adani wilmar 48% #1 #2 #1 Mustard Oil Soyabean Palm Oil 13.5% 6.5% 6.9% 6.0% #3Sunflower #1 Ricebran Oil --- Oil No.1 >50% MS a Market share ~1.5x of the next competit
Slide 10: Edible Oils segment generating strong cash flows
Edible Oils segment generating strong cash flows Sales Revenue Trend Sales Volume Trend Standalone EBITDA* INR Crores In Million MT INR Crores 45,378 46,104 3.7 1,614 1,631 39,593 3.0 3.3 3.4 1,168 1,393 30,819 2.6 2.8 992 1,139 -- 21,540 23,477 r r FY19 FY20 FY21 FY22 FY23 LTM FY19 FY20 FY21 FY22 F
Slide 11: Large TAM in staple foods; few large players have capabilities to benefit from formalization
Large TAM in staple foods; few large players have capabilities to benefit from formalization Edible oil & Staples together form 60-70% of the Indian kitchen / grocery spends TAM Category Branded % (in Lakh Cr.) Edible Oils 2.0 75% ·----------- i I Wheat 1.5 12% Rice 2.1 11% Large scope to improve br
Slide 12: Replicating edible oil playbook in other food products
Replicating edible oil playbook in other food products…. at a faster rate with all capabilities in place Food and FMCG Increasing Share of Food and FMCG Improving EBITDA Margins of Multi-fold Revenue growth Business in Volume Mix Food and FMCG INR Crores % of Total Sales Volume % 5,430 16% 17% 4,053
Slide 13: Advanced capabilities driving profitability in packaged staple foods
Advanced capabilities driving profitability in packaged staple foods Integrated Business Model a Sourcing from origins Bypassing intermediaries Customers customers Retail Consumers Using intelligence from Wilmar’s a Commodity Risk Management global presence Capabilities High asset utilization m Sour
Slide 14: Platform strength is visible in numerous success stories
Platform strength is visible in numerous success stories Adani Wilmar has built a Strong Platform → Launchpad for Further Expansion Launch of Alife Soap in Kohinoor acquired HoReCa team set up Branded Wheat Flour in Chennai (GT): 2020 in May 2022 in Q1 FY23 Exports MS%* 17.1% Crossed INR 100+ Cr. Cr
Slide 15: Extensive PAN India Distribution Network
Extensive PAN India Distribution Network Targeting Customers across Segments 2.1 Mn through Multiple Channels Overall Retail Reach Target Segments 100% • Urban Coverage 30,600+ Households HoReCa Institutional Exports Rural Towns Branded Branded Non-branded Branded, 2,500+ Private Label, Salesforce o
Slide 16: Strategically Located Manufacturing Facilities Spread across the Country
Strategically Located Manufacturing Facilities Spread across the Country resulting in Higher Efficiencies | Stringent Quality Controls in place , , • · · · · - - - - - - - - - - - - - - - - - - - --- ','\ • • / Own Units Third Party Units Total 70 units spread across . 23 Units 47 Units multiple sta
Slide 17: Backed by a Professional Management Team with Strong Execution Capabilities
Backed by a Professional Management Team with Strong Execution Capabilities Distinguished Board Kuok Khoon Hong Dorab Mistry Madhu Rao Angshu Mallick Non-Executive Chairman & Independent Director Independent Director MD & CEO Vice Chairman 40+ years of experience +40 years of experience s S H,\ -.JC
Slide 18: In conclusion
In conclusion fi rtune· edible oils and foods
Slide 19: What will keep driving AWL's strong growth?
What will keep driving AWL’s strong growth? Large High Growth Strong Strong Category Potential Assets + Capabilities Integrated business model Center of the plate Highly unorganized ‘Fortune’ Brand from Sourcing to Sales Branded Staples 23 Own Risk Management Large TAM growing faster Manufacturing P
Slide 20: Multiple levers available to sustain fast growth and enhance margins
Multiple levers available to sustain fast growth and enhance margins Edible Oil \ Food & FMCG \ Industry Essentials \ D Continue to gain market share in a highly fragmented market (2000+ D Leverage edible oil distribution to increase penetration D In-house capacity expansion brands), primarily in un
Slide 21: Aspiration to become India's largest Food FMCG player
Aspiration to become India’s largest Food FMCG player s best wh ith edible oils and foods fi rtune· edible oils and foods 20
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Slide 23: Annexure
Annexure fi rtune· edible oils and foods
Slide 24: Demerger
Demerger fi rtune· edible oils and foods
Slide 25: Proposed Scheme of Demerger
Proposed Scheme of Demerger Adani Enterprises as an incubator continues to incubate new businesses and create sustainable and long-term value for its stakeholders. Over the years, we have a track record of successfully incubating businesses across various sectors which are currently leading players
Slide 26: Robust Risk Management
Robust Risk Management Full proof risk management framework in place to mitigate commodity risk Board approved policy Market Intelligence Periodic Review & Monitoring Real-time intelligence on global supply & Robust policy in place to govern commodity Daily Monitoring & Reporting of Exposure & deman
Slide 27: Sourcing & Risk Management
Sourcing & Risk Management fi rtune· edible oils and foods
Slide 28: An Intricate Network of Reliable Suppliers Across Continents
An Intricate Network of Reliable Suppliers Across Continents, Procuring at Origin Locations Soyabean Oil Key Advantages Palm Oil Russia Sunflower Oil Ukraine 1 2 Favourable Bargaining commercial Power due to terms huge scale Malaysia Indonesia * Top 4 Suppliers Globally supply to Adani Wilmar Brazil
Slide 29: Manufacturing
Manufacturing fi rtune· edible oils and foods
Slide 30: Manufacturing
Manufacturing fi rtune· edible oils and foods
Slide 31: Integrated Business Model leading to Cost Efficiencies
Integrated Business Model leading to Cost Efficiencies Mundra Plant Vidisha Plant Upcoming Plant I I I End-to-End Integrated Plant Integrated Plant for Soya Integrated Plant in Gohana, Haryana I I I\, ,... ,,I D The Mundra plant is the largest single location D Covers entire value chain of soya-crus
Slide 32: World Class Manufacturing Facilities
World Class Manufacturing Facilities fi rtune· edible oils and foods
Slide 33: Logistics
Logistics fi rtune· edible oils and foods
Slide 34: Proximity to markets: A depot at every 250 KM
Proximity to markets: A depot at every 250 KM ~2.42 Million Sq. Ft. 96 Depots (Depot Storage Space) fi rtune· edible oils and foods
Slide 35: Tech-Enabled Lean Supply Chain Network and Integrated Logistics
Tech-Enabled Lean Supply Chain Network and Integrated Logistics A • Highly digitized with centralized control Designed for structurally low-cost Efficient Logistics to lower cost & capture demand 01 Digitization of Sales Function 02 operations Customer Online reverse auction Engagement via for truck
Slide 36: Extensive use of data & analytics for supply chain efficiency
Extensive use of data & analytics for supply chain efficiency I --------------------- ~ 00 - ~ " = rno" -••<MTI '\ Manufacturing & Logistics Planner ·---.... ~ 1 ......... ~ ----,, I ', _ __ \\ \, \, ...__, SnOP \, \, \ \ -- \ Warehouse AWL’s SCM Management Warehousing Sourcing Clicksense Landscape
Slide 37: Sales & Distribution
Sales & Distribution fi rtune· edible oils and foods
Slide 38: Enhancing distribution is another key lever of growth
Enhancing distribution is another key lever of growth Manufacturing Manufacturing Manufacturing Enhancing network designed for Focusforon network designed network designed for logistics efficiency logistics efficiency Network logistics expansion efficiency sales productivity Range selling D Sales fu
Slide 39: Increasing digitization of Sales function to capture demand
Increasing digitization of Sales function to capture demand Manufacturing Manufacturing Manufacturing networkEveryday designed forgreat networkRural Activation designed for & networkRURAL Sales designed for Force logistics efficiency execution logistics efficiency Coverage Expansion logistics effici
Slide 40: Subsidiary
Subsidiary fi rtune· edible oils and foods
Slide 41: Bangladesh Business (100% Subsidiary of AWL): Brief Snapshot
Bangladesh Business (100% Subsidiary of AWL) : Brief Snapshot FY24 Sales Revenue FY24 Sales Volume FY24 Branded Sales % Share of Foods – FY24 INR 2,084 Crores 0.12 MMT 77% ~20% Product Basket Brands Soyabean Oil Mustard Oil Rice Bran Oil Sunflower Oil Palm Oil Rice Wheat Flour Refined Flour Deoiled
Slide 42: Marketing Activities
Marketing Activities fi rtune· edible oils and foods
Slide 43: Celebrity-led advertising on mass media
Celebrity-led advertising on mass media Soyabean Oil Campaign Soyabean Oil Campaign Sunflower Oil Campaign Fortune Atta Campaign King’s Mustard Oil Campaign
Slide 44: TV Campaigns
» TV Campaigns Kohinoor Traditional Basmati Rice | Knushboo Kuchh Khaas | Kohinoor TVC ye = 4 - 4 ‘ Y ay % =e) SR 83 ‘ ). a ) y rs Y ay \ y \ ; , A
Slide 45: Fortune Flour Festival at one of the largest retailer (2/2)
Fortune Flour Festival at one of the largest retailer (2/2) Event showcased the entire range of Fortune’s offering in flours (Atta, suji, rawa, maida & besan) The campaign led to 2x increase in market share of all flours in Q3’24 in the retail chain* *Source: As per data of the relevant retail chain
Slide 46: Impactful BTL activities in urban towns
Impactful BTL activities in urban towns Metro campaign in Delhi: Daily Reach: ~4.2 Mn Commuters during campaign* *Source: As per estimates of media agencies
Slide 47: BTL - Consumer engagements incorporating cultural nuances
BTL - Consumer engagements incorporating cultural nuances Pickle Campaign promoting use of Fortune Kacchi Ghani Celebrating the pickle culture with multiple engagements Customized Packaging Social media engagement Live achaar (pickle) making workshops On-ground activation KGMO Pickle campaign “Achaa
Slide 48: Integrated Communication of Edible Oil & Foods
Integrated Communication of Edible Oil & Foods ATL strategy following integrated approach of marketing Edible Oil & Foods together Fortune Sunflower + Rice + Atta Fortune Soyabean Oil + Maida BTL Activities promoting Edible Oil & Foods together Delhi Metro Fortune Soyabean Oil + Besan Ethnic design
Slide 49: Bundling: Leveraging the unique advantage of AWL
Bundling: Leveraging the unique advantage of AWL Leveraging the brand equity of “Fortune” by offering bundling offers through Consumer & Trade Promotions Soya and Maida Soya and Maida Sunflower and Sugar Sunflower and Soya Nuggets Driving sales with bundling of edible oils and foods
Slide 50: Financials KPIs
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Slide 51: Profit – Quarterly Performance Trends
Profit – Quarterly Performance Trends Standalone figures in INR Crores Gross Profits (Normalized)* EBITDA (Normalized)* 1,756 623 609 1,683 1,631 1,491 530 507 1,395 1,388 1,356 1,353 1,344 1,293 1,190 1,182 425 414 1,121 1,113 396 379 352 340 333 258 156 122 Sept 21 Sept 22 Sept 23 Mar 21 Mar 22 Ma
Slide 52: Key Financial Metrics (1/4)
Key Financial Metrics (1/4) Sales Volume in Million MT 2.7 2.4 3.0 3.3 3.8 4.1 4.3 4.5 4.8 5.5 6.0 1.7 1% 3% 6% 6% 6% 7% 9% 11% 13% 16% 17% 20% 13% 17% 27% 29% 32% 30% 26% 23% 19% 23% 22% 20% 86% 79% 68% 66% 62% 63% 65% 66% 68% 61% 61% 60% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY2
Slide 53: Key Financial Metrics (2/4)
Key Financial Metrics (2/4) Consolidated figures Revenue Gross Profit INR Crores CAGR INR Crores CAGR 12% 58,185 10% 54,155 6,344 52,502 6,002 5,383 4,601 37,090 4,323 4,287 3,583 3,732 28,797 29,657 26,472 2,784 2,982 23,309 2,408 17,320 17,266 17,887 1,814 14,169 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Slide 54: Key Financial Metrics (3/4)
Key Financial Metrics (3/4) Consolidated figures Gross Profit per Metric Tonne* Q1FY25 Update INR • Highest-ever quarterly PAT of INR 313 crores for Q1’25, a growth of ~500% • Highest-ever quarterly EBITDA of INR 619 crores, up by 375% YoY, in Q1’25 on the back of stability in edible 11,446 11,400 o
Slide 55: Key Financial Metrics (4/4)
Key Financial Metrics (4/4) Consolidated figures ROCE Debt to Equity % 6.0x 14% 0.9x 5.4x 5.1x 13% 13% 0.8x 12% 11% 10% 4.2x 11% 3.9x 3.7x 3.6x 8% 0.5x 3.2x 0.5x 2.8x 2.6x 2.6x 6% 0.4x 0.4x 5% 0.3x 0.2x 2% 0x 0x 0x FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY14 FY15 FY16 FY17 FY18 FY19
Slide 56: Detailed Financials
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Slide 57: Profit & Loss Statement
Profit & Loss Statement Consolidated figures Amt in INR Cr Particulars FY22 FY23 FY24 Income Revenue from Operations 54,214 58,185 51,262 Other Income 172 964 294 Total Income 54,386 59,148 51,555 Expenses Cost of Materials Consumed 48,214 48,910 43,291 Purchase of Traded Goods 2,335 2,736 1,960 Cha
Slide 58: Balance Sheet (1/2)
Balance Sheet (1/2) Consolidated figures Amt in INR Cr Particulars FY22 FY23 FY24 Assets Non-Current Assets Property Plant & Equipment 4,288 4,327 4,426 Capital Work in Progress 376 324 870 Right of Use Assets 246 282 313 Goodwill on Consolidation 57 50 49 Intangible Assets Under Development - - 9 O
Slide 59: Balance Sheet (2/2)
Balance Sheet (2/2) Consolidated figures Amt in INR Cr Particulars FY22 FY23 FY24 Equity and Liabilities Equity Equity Share Capital 130 130 130 Other Equity 7,476 8,036 8,186 Total Equity 7,606 8,166 8,316 Liabilities Non-Current Liabilities Financial Liabilities Borrowings 45 - - Lease Liabilities
Slide 60: Cash Flow Statement (1/2)
Cash Flow Statement (1/2) Consolidated figures Amt in INR Cr Particulars FY22 FY23 FY24 Cash Flow from Operating Activities Net Profit Before Tax 1,059 789 262 Adjustment for: Depreciation and Amortization Expenses 309 356 364 Interest on Income Taxes Refund -1 -0 -2 Loss / (Profit) on Sale of Prope
Slide 61: Cash Flow Statement (2/2)
Cash Flow Statement (2/2) Consolidated figures Amt in INR Cr Particulars FY22 FY23 FY24 Cash Flow from Investing Activities Payment for Property, Plant, Equipment and Intangible Assets -536 -679 -932 Upfront Payment for ROU Assets - - - Proceeds on Termination of ROU Assets (Net of Liability) - - -
Slide 62: ESG
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Slide 63: Fortune SuPoshan: A Mission Against Malnutrition & Anemia
Fortune SuPoshan: A Mission Against Malnutrition & Anemia Fortune SuPoshan touches life of three Target Groups 0-5 yrs age children Adolescent Girls Women in Reproductive Age Fortune SuPoshan touches four core areas Women Sustainable Health Education Empowerment Livelihood Good Health and Zero Hunge
Slide 64: Fortune SuPoshan: A Mission Against Malnutrition & Anemia
Fortune SuPoshan: A Mission Against Malnutrition & Anemia Our commitment towards a “Healthy growing nation”
Slide 65: ESG - Environment KPIs
ESG - Environment KPIs Energy and Water Conservation Rail Green Points Solar Plants Capacity (in KWp) Multiple initiatives have been taken for process 16,819 optimization, resulting in savings in utilities 8,819 * Savings FY ‘24 Year Rail Green Points Steam 4.82% FY ’23 22,229 4,546 Power 0.27% FY ‘
Slide 66: ESG - Logistic KPIs
ESG - Logistic KPIs Manufacturing Manufacturing Direct designed network Dispatch forto Customers Volume network Dispatch designed for in Multi-Modal * logistics efficiency logistics efficiency 50% 55% 23% 25% 39% 18% FY22 FY23 FY24 FY22 FY23 FY24 Manufacturing Dispatch network by Green designed for
Slide 67: Indian Railways recognizes AWL for carbon emission reduction
Indian Railways recognizes AWL for carbon emission reduction Mode Emission Factor (KgCO2 per ton-km) Rail 0.009 Road 0.040
Slide 68: Inclusion of AWL in FTSE4Good Index Series
Inclusion of AWL in FTSE4Good Index Series CERTIFICATE • OF MEMBERSHIP Ths ,s to certify that AdaniWilmar 1s a constituent company in the FTSE4Good Index Serles FTSE4Good June 2024 The FfSE 4Good lnclex Senes IS d8S1'1"'d to idem """" - lha:demons:r le strong cnwoomcntal ooaal and govomanc pr'1Cllcc
Slide 69: Thank You
adan wilmar Fora healthy growing nation