Slide 1: The Waterbase Limited Corporate Presentation – June, 2017
The Waterbase Limited Corporate Presentation – June, 2017
Slide 2: Contents
Contents 3 Company Overview 11 Growth Strategy 2 19 Scheme of Amalgamation - Transaction Highlights 23 Industry Overview Safe Harbour Statement: 33 Certain statements in this presentation concerning our future Financial Overview plans and strategies growth prospects, etc. are forward looking stateme
Slide 3: Company Overview
Company Overview
Slide 4: TWL – At a Glance
TWL – At a Glance Feed Capacity post Shrimp Exports in FY17 Amalgamation of PFL Yrs. In Employees the Industry Revenue Estimated size of CAGR Domestic Shrimp feed Industry FY12>17 Debt – Equity Revenues As of in Mar 2017 FY17 #Dealers Mkt. share Pan India Presence (Domestic) 4
Slide 5: Locations
Locations Registered office and factory Delhi • Ananthapuram Village, T.P. Gudur Mandal, Nellore – 524 344, Andhra Pradesh. Kolkata Corporate Office • No. 37, Thapar House, Montieth Road, Egmore, • Chennai – 600 008 Nellore Group Corporate Office • Delhi • Kolkata Chennai Corporate Office Factory 5
Slide 6: Key Strengths
Key Strengths Strong Brands Quality Control • Several popular brands which are favoured by • Robust manufacturing processes and step by shrimp farmers step quality control system • Enjoy high recall and are seen to be synonymous • Processing facilities are FDA and BAP approved, with quality and valu
Slide 7: Product Portfolio
Product Portfolio Shrimp Feed Processed Shrimp 7
Slide 8: R&D Strengths
R&D Strengths Over 20 years of in-house Proven Research & competence in Development research and Works closely (R&D) activities unparalleled with reputed Large technical institutes in the repository of expertise in the area of Aqua data: nutrition, industry Feed Nutrition diseases, soil Research and
Slide 9: Awards & Accolades
Awards & Accolades • Bagged “2016 India Shrimp Feed Industry New Product Innovation Leadership Award” by Frost & Sullivan a leading global strategy consulting company • Frost & Sullivan’s, 2016 New Product Innovation Leadership Awards identified companies that demonstrated measured excellence in new
Slide 10: Shareholding Pattern
Shareholding Pattern Indian Public 28.4% Promoters 61.0% Others 3.5% NRI 2.6% Corporate Institutions Bodies 2.9% 1.6% Data as on 31st March 2017 10
Slide 11: Restructuring of Promoter Holdings
Restructuring of Promoter Holdings • Four entities forming part of the promoter group of TWL, transferred their holding amounting to 1.59% of the share capital inter-se to Karam Chand Thapar and Bros (Coal Sales) Limited – The Punjab Business & Supply Company Private Limited, – The Doaba Industrial
Slide 12: Growth Strategy
Growth Strategy
Slide 13: Growth Strategy
Growth Strategy Diversify market presence • TWL Installed capacity at 35,000 • Wider distribution infrastructure • Processed Shrimp exports 407 MT MTPA. Including PFL, combined has enhanced pan-India tonnes of shrimp in FY17 capacity is at 1,10,000 MTPA presence – have entered West Bengal, Gujarat a
Slide 14: Vertical & Horizontal Integration
Vertical & Horizontal Integration Segment Hatchery Farming Processing Finished Product (Shrimp) KEY INPUTS Shrimp Feed Exports Water (Power) Domestic Market Labour New Growth Areas Farm Care Products 500 125,000 Ha Estimated Current Size 400 Processing Plants (No. of hatcheries under 4,00,000 MT of
Slide 15: New Initiatives – Farm Care Products
New Initiatives – Farm Care Products 15 Probiotics Vitamins & Minerals Healthcare Disinfectants
Slide 16: New Initiatives – Farm Care Products
New Initiatives – Farm Care Products Category Name Function 16 Farm Probiotic for 1 Probiotics VC-9 Vibrio control Promotes growth 2 Probiotics NutriPond of good bacteria 3 Probiotics NutriFeast Builds Immunity 4 Healthcare NutriGut Protects Gut Absorbs 5 Ammonia Binder NutriSorb Ammonia
Slide 17: New Initiatives – Domestic Market Foray
New Initiatives – Domestic Market Foray • Phase I – Soft launch in Chennai in Dec 2016 with the brand ‘Prize Catch’ • Launched Processed Shrimps and Pasteurised Crab meat • Phase II – Plan to scale up launch in other Southern markets 17 • Plan to add other products to widen product range • Aiming fo
Slide 18: Enhancing Brand Awareness
Enhancing Brand Awareness Shop Signage Instore 18
Slide 19: Marketing & Distribution Initiatives
Marketing & Distribution Initiatives Dealer Meets Farmer Meets 19
Slide 20: Scheme of Amalgamation - Transaction Highlights
Scheme of Amalgamation - Transaction Highlights
Slide 21: Transaction Details
Transaction Details Current Status Shareholders – Significant Value Creation The Scheme of Amalgamation of Pinnae Feeds Ltd. with the Company has reached the final stage and at the hearing held on 15th March 2017 the National Pre-Amalgamation Post-Amalgamation Company Law Tribunal (NCLT) had posted
Slide 22: Background - Pinnae Feeds Limited
Background - Pinnae Feeds Limited • Pinnae Feeds Ltd., belongs to the same promoter Group Financials : • Incorporated in: July, 2012 • Revenues of Rs. 129 crore in FY17 from supply of • Objective: To meet capacity expansion plans for the feed to TWL Feed manufacturing business • Gross Block - Rs. 48
Slide 23: Rationale for Amalgamation
Rationale for Amalgamation Production capacity within TWL will increase from 35,000 MTPA to 1,10,000 MTPA 23
Slide 24: Industry Overview
Industry Overview
Slide 25: Demand for seafood is rising globally
Demand for seafood is rising globally Total seafood production • Seafood production is expected to increase in million tonnes from 130mn tonnes in 2,000 to ~170mn tonnes 200 in 2030 150 • Within this, the share of wild catch is expected to remain stable and incremental volumes are 25 100 expected la
Slide 26: Shrimp Aquaculture Production by World Region
Shrimp Aquaculture Production by World Region 26 Sources: FAO (2016) for 1995-2011; FAO (2016) and GOAL (2014) for 2012-2014; GOAL (2016) for 2014-2018.
Slide 27: Global & Regional Trends
Global & Regional Trends World Shrimp Aquaculture by Species: 6.0 Million M T 75% % Indicate the share of P. vannamei 5.0 73% 70% 71% 65% 27 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 28: Robust Track Record of Industry Growth
Robust Track Record of Industry Growth • In FY16, Marine product exports from India Export Performance Since 2002-03 (US $ Million) were at USD $4.7 billion. Last 6 yr CAGR – 14% o MPEDA’s stated target for the year 2016-17 is US $5.6 billion US $ Million 28 • USA remains the largest market for Indi
Slide 29: Driven by strong growth in Shrimp Exports
Driven by strong growth in Shrimp Exports Volume Contribution • Shrimp exports continue to report tremendous Frozen Non- growth with a CAGR of ~18% in volume terms and Others frozen 12% 9% 27% in value terms in the last 3 years Frozen • Frozen shrimp continued to be the largest item in Cephol 29 opo
Slide 30: Shrimp Exports
Shrimp Exports EU < > 2015 2016 30 81,952MT 81,849MT 23% 22% Japan +12% 2015 2016 USA +19% 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 31: Factors behind Success of Shrimp Farming in India
Factors behind Success of Shrimp Farming in India 31 Supply Active Favorable Availability Changing of Disruptions In Attractive Regulatory Topography Of Resources Species Thailand & Prices Setup Vietnam India has Abundant farm The industry is The Erstwhile key Global prices abundant labour at govern
Slide 32: Key Challenges
Key Challenges Diseases, weather patterns, fluctuating prices add to Risks the unpredictability of the industry 32 Inconsistent supply and rising cost of major ingredients of Raw shrimp feed such as soya Material and fish meal Inflation Access to quality broodstock and seeds which are key inputs to
Slide 33: Growth Drivers
Growth Drivers Aquaculture is more cost effective Rise of protein compared to Rise in per consumption Income agriculture/animal capita in the 33 Growth husbandry income Indian diet Increasing Increasing global Rapid switchover Massive shift preference demand to Vannamei in Freshwater for for in less
Slide 34: Financial Overview
Financial Overview
Slide 35: Financial Performance
Financial Performance Revenues 5 year CAGR : 26.3% EBITDA Margins 299.8 331.9 40 15.0% 277.6 11.4% 10.1% 10.1% 228.2 30 7.4% 10.0% 7.5% 157.0 32.0 35 20 2.5% 5.0% (in Cr) 103.5 23.3 24.9 10.5 11.6 10 7.6 0.0% 0 -5.0% FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17 PBT Margins PAT Margins
Slide 36: Key Financials
Key Financials Book value per share (Rs.) Earnings Per Share 28.8 5.1 25.7 25.6 4.4 23.4 22.5 21.1 36 3.3 (in Cr) (in Cr) 2.2 2.3 0.4 FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17 Return on net worth (%) Return on Capital Employed (%) 29.6 19.7 23.8 15.7 11.1 16.8 10.4 10.0 12.3 12.3 5
Slide 37: Key Financials
Key Financials Net Worth Debt Equity Ratio 111.2 99.2 98.9 0.5 86.7 37 (in Cr) 60.3 0.3 54.2 0.2 0.1 0.1 0.1 FY12 FY13 FY14 FY15 FY16 FY16 FY12 FY13 FY14 FY15 FY16 FY17
Slide 38: Q4 & FY17 Performance Update
Q4 & FY17 Performance Update
Slide 39: Q4 & FY17 - Financial Performance
Q4 & FY17 - Financial Performance Volumes for Farming season 2017 have started strongly surpassing the strong start of farming season 2016. Improved presence in new markets as well as existing strongholds supported by marketing efforts and new product lines should sustain the growth momentum Revenue
Slide 40: Business Update
Business Update Feed Business • Healthy volume growth in start of the season – demand could not be sustained in latter part of season due to widespread impact of disease • Encouraging performance from new markets – expansion of dealer network continues • Launched Baywhite Enriched in FY 2016 , helpe
Slide 41: Industry Trends & Outlook
Industry Trends & Outlook
Slide 42: Domestic Market Trends
Domestic Market Trends • Strong start to Farming season 2017 – Weather conditions have been favorable and lot of new areas have been brought under shrimp farming. • Feed Raw material prices have corrected significantly - Bumper soya crop of last year 42 and lower export have resulted in reduction in
Slide 43: Thank You
Thank You For more information about us, please visit www.waterbaseindia.com OR contact: G. Venkatram (CS & CO) Mayank Vaswani / Suraj Digawalekar The Waterbase Limited Citigate Dewe Rogerson (CDR India) Phone: +91 44 30127009 Extn: 202 Phone : +91 22 6645 1230 / 1235 Email: investor@waterbaseindia.