Awl Agri Business Ltd · NSE:AWL
Awl Agri Business — Adani Wilmar — Investor Presentation (November 2024)
26 slides from Awl Agri Business's investor presentation, Nov 19, 2024
Slide 1: Investor Presentation filing letter to exchanges
adani wilmar Ref No: AWL/SECT/2024-25/74 November 19, 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: Investor Pr
Slide 2: Investor Presentation November 2024
November 2024 \ \ \ "Tl g \ Qj ~ I ==~ °'a. a 3 a, ~- "' => =.i ,., -· :::, IC """ ~ 15· :::, Investor Presentation \ \ l ....,. Q'. \ (1) 0 ~ g a. g lt; \
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: AWL: One of the largest packaged Foods Company in India
AWL: One of the largest packaged Foods Company in India Packaged Staple Foods revenue of ~INR 35,000 Crore* Pan-India player (~75% of overall oil & food sales) Market share in #3 Household Reach consumer pack# #1 #2 ▪ Edible Oil: ~19% 121 Million ▪ Wheat Flour: ~6% Households ▪ Basmati Rice: ~8% #1
Slide 5: Adani Wilmar Limited: Business Snapshot
Adani Wilmar Limited: Business Snapshot 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 6: 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 7: Edible Oils segment generating strong cash flows
Edible Oils segment generating strong cash flows Sales Revenue Trend Sales Volume Trend Standalone EBITDA* (inc. OI) INR Crores In Million MT INR Crores Impacted by sharp decline in Commodity Prices Dis-alignment in hedges 2,150 45,378 46,104 3.9 1,614 38,788 41,532 3.4 3.7 1,139 1,393 30,819 3.0 3.
Slide 8: 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 % 5,865 20%^ 16% 17%
Slide 9: 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 10: Why staple food category is attractive for AWL?
Why staple food category is attractive for AWL? 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 Huge TAM growing faster Manufacturin
Slide 11: 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 12: Segment ROCE: LTM Sept 2024
Standalone Figures Segment ROCE: LTM Sept 2024 Segment ROCE: LTM Sept 2024 Edible Oil Food & FMCG Industry Essentials Unallocable Total Revenue / Capital Employed [A] 5.5x 1.9x 4.1x n.a. 4.2x Food business is in investment phase EBIT % [B] ROCE % [A x B] C 4.5% 25% =::> 1.5% 3% C 1.6% 7% - n.a. n.a.
Slide 13: Segment ROCE & Capital Employed: 3 Year trend
Standalone Figures Segment ROCE & Capital Employed: 3 Year trend ROCE % Capital Employed INR Crores Mar 22 Mar 23 Mar 24 Sept 24 LTM Sept INR Crores FY22 FY23 FY24 Edible Oil 9,225 8,541 6,647 7,221 24 Food & FMCG 886 1,684 2,867 2,943 Edible Oil 14% 13% 13% C=:> 25% Industry Essentials 1,538 1,759
Slide 14: Segment-wise Profitability
Standalone Figures Segment-wise Profitability Quarter INR in Crores FY22 FY23 FY24 LTM Sept 24 Q3'24 Q4'24 Q1'25 Q2'25 Segment EBITDA: Edible Oil* Food & FMCG c=:::> 1,614 4 1,393 98 1,146 172 C 2,150 118 =::> 541 18 401 51 604 31 603 18 Industry Essentials 423 389 142 157 44 (8) 48 73 Unallocable (
Slide 15: 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 16: 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 17: 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
Slide 18: Annexure
Annexure fi rtune· edible oils and foods
Slide 19: AWL has been a compounding growth story since inception in 1999
AWL has been a compounding growth story since inception in 1999 Consolidated figures Revenue EBITDA INR Crores INR Crores 23% 23% CAGR CAGR 64% 37% 19% 38% 34% 17% 13% 30% 30% 10% 14% 6% 54,695 2,093 29,657 1,310 - - - 3,393 12,043 17,887 417 1,825 141 404 15 39 112 r - r r r T T T FY 01 FY 04 FY 08
Slide 20: AWL: Growing at fast-pace at scale
AWL: Growing at fast-pace at scale Consolidated figures Sales Volume* in Million MT 8.5% 6.38 6.02 5.48 4.80 4.31 4.46 4.12 3.79 3.29 3.05 2.70 2.43 r r T r T r FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 LTM Sept'24 ,/ *Sales Volume excludes pass through sales of raw sugar for FY14 to FY
Slide 21: Key Financial Metrics (1/3)
Key Financial Metrics (1/3) Consolidated figures Revenue Gross Profit INR Crores CAGR 12% 37,090 54,155 58,185 51,262 54,695 INR Crores 4,323 - CAGR 10% 4,287 4,601 5,383 6,002 5,632 6,863 3,732 ■ I 11 I I I I 3,583 28,797 29,657 l ,l ,I I ' 26,472 2,784 2,982 23,309 2,408 17,320 17,266 17,887 1 . F
Slide 22: Key Financial Metrics (2/3)
Key Financial Metrics (2/3) Consolidated figures Return on Equity (ROE %) Debt to Equity % 27% 6.0x 0.9x 5.4x 5.1x 25% 0.8x 22% 19% 20% 4.2x 3.9x 3.7x 3.6x 15% 0.5x 3.2x 0.5x 2.8x 2.6x 2.6x 11% 11% 0.4x 0.4x 7% 0.3x 6% 0.2x 2% 2% 0x 0x 0x FY14 FY15 FY16 FY17 FY18 FY19 FY20 Net Fixed Asset Turnover F
Slide 23: Past trend in Profitability: Per ton (3/3)
Past trend in Profitability: Per ton (3/3) Standalone figures Gross Profit per ton Average Gross Profit of INR 10,495 per ton Per Ton ----- -- - ·- - - - - -· - - - - - - - - - --■--. -i- - .... - - - - - - - - - - ~ - - 11,698 10,571 11,284 11,740 11,100 11,392 12,171 11,886 10,942 10,859 11,055 9,
Slide 24: General Trade Distribution – Increasing towns & outlet reach
General Trade Distribution – Increasing towns & outlet reach Total Reach* Direct Reach Rural Coverage Rural Saliency > 21 Lac+ Outlets > 7.7 Lac+ Outlets 37,600+ rural towns ~30% (Volumes) Direct Reach: Outlets (in Lacs) Rural Town Coverage 37,600+ C) 2.6x 2x 7.7 7.4 7.2 5.9 x 5.0 3,256 3.0 T 3.5 T
Slide 25: 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 states 4 11.li2 11.lili.li 2 2 11.
Slide 26: Thank You
\ Thank You \ \ "Tl g \ Qj ~ I ==~ °'a. a 3 a, ~- "' => =.i ,., -· :::, IC """ ~ 15· :::, \ \ l ....,. Q'. \ (1) 0 ~ g a. g lt; \