Emmbi Industries Limited · NSE:EMMBI
Emmbi Industries — Q1 FY2019 Earnings Presentation
46 slides from Emmbi Industries's earnings presentation, May 2019
Slide 1: Emmbi Industries Limited Investor Presentation Q1, FY 2018–19
Emmbi Industries Limited Investor Presentation Q1, FY 2018–19
Slide 2: Disclaimer
Disclaimer This is not an investment recommendation, and this presentation contains forward-looking statements, identified by words such as ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ and so on. All statements that address expectations or projections abo
Slide 3: Contents
Contents 1. Q1FY 2019 – Highlights 2. Financial Performance 3. Business Verticals and Growth Drivers
Slide 4: 1. Q1FY 2019 – Highlights
1. Q1FY 2019 – Highlights
Slide 5: Key Operating Highlights
Key Operating Highlights Revenue EBIDTA PAT and EPS +14% +119 bps +14% (Q-O-Q) (Q-O-Q) (Q-O-Q) • Renewal of recognition of In House R&D Unit till March, 2021, by DSIR, Ministry of Science & Technology, GOI • Favorable currency mix positively impacting exports revenue • Enhanced thrust on the Retail
Slide 6: Retail Operations
Retail Operations • Investment in Retail Brands Continued investment in building strong retail brands like Emmbi Jalasanchay (Water Conservation Vertical) and Emmbi Krishirakshak (Agro Polymer Vertical) • Rural Brand Development Focus on brand development in rural markets through a strategic busines
Slide 7: FY ’19 - Q1 New Initiative
FY ’19 - Q1 New Initiative • Avana, a specialized division for Emmbi’s retail initiative • Avana is a Sanskrit word that means protection • The division will be focused on protecting farmer income from uncertainty • Building a modern workplace that’s focused on innovation to focus on attracting Gen
Slide 8: 2. Financial Performance
2. Financial Performance
Slide 9: Sustained growth across all financial parameters
Sustained growth across all financial parameters Q1 (₹ Millions) 2014 2015 2016 2017 2018 2019 Revenues 1,680 1,929 2,177 2,410 2,790 716 200+ 56 Clients Countries EBIDTA 154 202 270 297 353 95 PAT 43 60 106 124 153 41 EPS 2.45 3.37 5.99 7.03 8.63 2.29 Q1 BV 32.89 35.86 41.24 47.74 55.53 57.79 Incre
Slide 10: 3. Business Verticals and Growth Drivers
3. Business Verticals and Growth Drivers
Slide 11: Business Verticals
Business Verticals Estimated Global Market: Estimated Global Market: Estimated Global Market: Estimated Global Market: 30 US $ Billion 36.5 US $ Billion 2.5 US $ Billion 4 US $ Billion Currently accounting for the The Advanced Composites The Water Conservation Products manufactured by the bulk of ou
Slide 12: Revenue Breakdown
Revenue Breakdown 45.02% 44.10% 42.95% 42.00% 39.00% 38.50% 39.00% 33.43% 32.69% 30.00% 30.00% 25.00% 28.00% 23.00% 23.00% 20.26% 18.11% 15.75% 8.00% 8.00% 5.00% 2.80% 3.44% 2.95% 2016 2017 2018 2019 2020 2021 Past Review Projections
Slide 13: Growth Drivers
Growth Drivers Increased share of Strengthen B2B Base Expand B2C Vertical Shift in Buying Pattern Value Added Products Focus on margin Develop advanced Cater to greener, Consolidate across expansion through products in B2C cleaner and efficient industry verticals better acceptance of segment to driv
Slide 14: Business by geography and vertical
Business by geography and vertical MIDDLE EAST B2C 5.50% 9.60% EUROPE 26.75% THE UK 6.50% AFRICA Export Domestic 7.25% 42.50% 57.50% OCEANIA 13.00% B2B 90.40% AMERICAS 41.00% BUSINESS SPLIT AS OF 31st March, 2018 EXPORT : GEOGRAPHIC SPREAD BUSINESS SPLIT : B2B vs B2C
Slide 15: Thank you
Thank you Emmbi Investor Services: info@emmbi.com
Slide 16: Appendix to Investor Presentation Q1, FY 2018–19
Emmbi Industries Limited Appendix to Investor Presentation Q1, FY 2018–19
Slide 17: Contents
Contents Appendix: A- Future Outlook - The Focus on Rural India B- Innovation – Emmbi’s DNA C - Product Profile of Emmbi D - Polymer Processing Industry : Global Perspective
Slide 18: A. Future Outlook – The Focus on Rural India
A. Future Outlook – The Focus on Rural India
Slide 19: India is still primarily rural!
India is still primarily rural! Tier 2-3 Tier 4-6 2% 23% Metro Rural 6% 69% 68.8% of India lives in villages* *Source: 2011 Census, Govt of India # Source: KPMG’s Indian Economic Survey, 2014-15 18.0% of our GDP is agriculture#
Slide 20: But fraught with challenges
But fraught with challenges Water, a primary concern ~54% India lives faces high to very high water stress* * Source: Water Resources Institute
Slide 21: Importance of Pond in the new age micro irrigation
Importance of Pond in the new age micro irrigation • Pond a Stagnant source of water is first building block of micro irrigation • Depletion in underground water table causing conventional wells & borewells unviable • Govt. mandating certain crops must be micro- irrigated (Sugarcane, Fruits) • Poten
Slide 22: One Pond Every Hour
Clearly, We have a role to play… What we’ve achieved We believe we can create 2,000+ Ponds One Pond Every Hour 4,000+ Hectares With existing capacity 2 states 4 more states in next 3 Years 18 months 1 Pond Every 6 Hours (Avg.) Impact Film Link Actual image of Emmbi pond Sinner, https://www.youtube.c
Slide 23: Ecosystem
Ecosystem • Complete End-to-End Solution: Pond Design, Excavation Partners, Technical Validation, Product Supply, Emmbi Certified Installation Operators, Post Sale Warranty & Service Team Post Sale Warranty & Service Excavation Emmbi certified Partners Installation Operators Technical Validation Pon
Slide 24: B. Innovation – Emmbi’s DNA
B. Innovation – Emmbi’s DNA
Slide 25: Our in-house R&D Center
Our in-house R&D Center • Govt. of India, Department of Science & Technology Certified • Filed 14 Patents in past 6 years • 35 member Dedicated R & D Team • Approx. 2.5 % of Revenue is allocated as budget • Helps maintain the target of “20 % Revenue from product developed in past 20 months”
Slide 26: Early successes: Poultry Curtain
Early successes Poultry Curtain (Agro Polymer) • Application: Poultry Industry. Poultry Curtain is a low- cost light polarizer to improve the growth of chicks. • What they use Conventionally?: Electric Bulbs or Yello Fabric • What’s unique: We have designed the product which can filter a light of th
Slide 27: Early successes: Coffee Bag
Early successes Coffee Bag (Advanced Composites) • Aroma Lock: A specialized technology using aluminum film, that helps preserve freshness of food • Application: transportation of Coffee, Tea and similar commodities that need to keep retain their natural aroma and flavors • A super convenient sealing
Slide 28: Early successes: Wool Pack
Early successes Wool Pack (Advanced Composites) • Application: Contamination-free packaging of raw wool • Why it’s better: traditionally, wool was packed in nylon packaging which is very expensive. We developed a special blend of polymer that offers all the conventional wookpack benefits at half the
Slide 29: Early successes
Early successes Animal Discharge Route Anti-Evaporation Cover Pond Lining Accessories These Patented products further enhance the performance of the pond liner by offering safety and saving of water by evaporation loss Patent Pending - TEMP/E-1/33242/2017-MUM Patent Pending - TEMP/E-1/33245/2017- MU
Slide 30: Contamination-free manufacturing
Contamination-free manufacturing
Slide 31: C. Product Profile of Emmbi
C. Product Profile of Emmbi
Slide 32: Helped irrigate 3,300 Hectares of crops using 1650 ponds
Helped irrigate 3,300 Hectares of crops using 1650 ponds in 2 states of India in past 18 months Pic: Pond for 8 million ltr Water Storage Created by Emmbi At Pahur, Dist Jalgaon, State of Maharashtra, India
Slide 33: Product Snapshot
Product Snapshot Pond Liner Check Dam Water Conservation 17.50 % Canal Liner Collapsible Pipe
Slide 34: Product Snapshot
Product Snapshot Cycle Tank 1000 Liter Flexi Tank Water Conservation 17.50 % 500 Liter Standing Tank Open Flexi Tank
Slide 35: Helped to protect priceless lives and assets worth Billions
Helped to protect priceless lives and assets worth Billions with our Advanced Composite Range
Slide 36: Product Snapshot
Product Snapshot UN Certified FIBC Application of UN Certified FIBC Advance Composites 46.12 % Water – Slug Separator Application of Anti Carcinogenic Nuclear Power plant Packaging Waste Disposal
Slide 37: Product Snapshot
Product Snapshot Electrically Conductive Polymer Anti-Corrosive VCI Films Advance Composites 46.12 % Application for Fall Arrest Anti Corrosive Fabric
Slide 38: Helped put Million Tones of food & Other Cargo in your service
Helped put 4 Million Tones of food & Other Cargo in your service every single year, safely
Slide 39: Product Snapshot
Product Snapshot Construction FIBC Application of Construction FIBC Bulk Packaging with Specialty Packaging lowest carbon foot print 33.28 % only 0.7 gm polymer can hold up to 1 kg of Material Packaging Barrier Films
Slide 40: Product Snapshot
Product Snapshot “Form Stable” Conductive Liquid & Solid Container Liner Specialty Perfect partner to new age Packaging Supply Chain system , and 33.28 % Hyper Local Models of Distribution, Typically used by Multinationals & e-commerce Urban Waste Disposal companies
Slide 41: Help protect your food from contamination from hazardous chemicals and pesticides
Help protect your food from contamination from hazardous chemicals and pesticides, naturally Actual Picture from KVK Baramati, Dist Pune, State of Maharashtra, India
Slide 42: Product Snapshot
Product Snapshot Mulch Film Crop Cover Agro Polymer 3.10 % Silage Incubator Shade Net
Slide 43: D. Polymer Processing Industry : Global Perspective
D. Polymer Processing Industry : Global Perspective
Slide 44: Compared to the global averages, India still has head-room for growth
Compared to the global averages, India still has head-room for growth INDIA LAGS THE WORLD IN POLYMER CONSUMPTION 109 India’s consumption of polymers is still a third of the global average. Per Capita Consumption of Polymers (Kgs.) URBANIZATION TO DRIVE CONSUMPTION As the country urbanizes and grows
Slide 45: In India, Emmbi Industries is driving this shift through unique applications
In India, Emmbi Industries is driving this shift through unique applications Conventional applications Modern applications Jute Bags PP Bags Woven Polymer Canal Liners Concrete Canal Liners Woven Polymer Flexi Tank Concrete / Metal Water Tanks Woven PP Water Sludge Separator Metal Sludge Separator T
Slide 46: Thank you
Thank you Emmbi Investor Services: info@emmbi.com