Waterbase Limited · BSE:WATERBASE
Waterbase — Investor Presentation (November 2018)
44 slides from Waterbase's investor presentation, November 2018
Slide 1: Corporate Presentation
Corporate Presentation November 2018
Slide 2: Safe Harbour Statement
Safe Harbour Statement: Certain statements in this presentation concerning our future plans and strategies growth prospects, etc. are forward looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those indicated in such forwar
Slide 3: Contents
Contents 2 4 6 1 3 5 Growth Industry Industry Trends Strategy Overview: India / Outlook Shining Company Industry Overview: Overview Sustained Growth Financial Overview Momentum 3
Slide 4: Company Overview
Company Overview IW. | ser
Slide 5: TWL – Niche Player in the high growth Aquaculture Industry
TWL – Niche Player in the Installed Manufacturing Yrs. In the capacity of Shrimp Feed Industry high growth Aquaculture Industry in Revenue CAGR FY13-18 Revenues In FY18 India Estimated size of Domestic Debt – Equity Shrimp feed Industry As of Sep 30, 2018 No. of #Dealers Employees Pan India Presence
Slide 6: Key Strengths
Key Strengths • Several popular brands which are favoured by shrimp • Robust manufacturing processes and step by step quality farmers control system • Enjoys high recall and is seen to be synonymous with • Global best practices implemented quality and value Strong Quality Brands Control • Working wi
Slide 7: Best local R&D Setup in the Industry
Best local R&D Setup in the Industry Large repository of data: Track record nutrition, of introducing diseases, soil innovative and marine shrimp feeds conditions 25 years of in-house Proven competence in research Research & Development and unparalleled technical (R&D) activities expertise in the in
Slide 8: Strategic Alliance with CIBA
Strategic Alliance with CIBA Indian Council of Agricultural Research (ICAR), New Delhi under the Ministry of Agriculture, Government of India established the Central Institute of Brackish water Aquaculture (CIBA) CIBA, serves as the nodal agency for the development of brackish water aquaculture
Slide 9: Awards & Accolades
Awards & Accolades ‘Asia’s Most Valuable Business Brand Award 2018’ Asia’s Most Valuable Business Brands is a concept developed by ibrands 360 in collaboration with WCRCINT (World Consulting and Research Corporation International) Awards are based on broad parameters of brand value proposition
Slide 10: Locations
Locations Delhi Tamil Nadu Andhra Pradesh Kolkata Corporate Office Nellore Chennai West Bengal Gujarat Odisha Factory Existing New Group Offices 10
Slide 11: Shareholding Pattern
Shareholding Pattern Promoters Indian Public As on 30th September 2018 65.45% 27.6% 1.7% 1.4% 3.8% 0.02% 27.6% Corporate Others 65.5% Bodies 1.7% 3.8% NRI Institutions 1.4% 0.02% 11
Slide 12: Growth Strategy
Growth Strategy IW. | ser
Slide 13: Growth Strategy
Growth Strategy Vertical & Horizontal Integration to enhance business stability Leverage Increased Capacities Enhance visibility • Launched farm care & Market share in New products under the brand territories name ‘Baylife’ Elevate • Launched packaged shrimp • New plant set up presence in core • Inc
Slide 14: Driving Premiumisation in the Feed Business
Driving Premiumisation in the Feed Business Branding & After Sales Packaging service Enhancing Farming R&D inputs & Feed techniques for disease performance management 14
Slide 15: Vertical & Horizontal Integration
Vertical & Horizontal Integration Finished Product Hatchery Farming Processing (Shrimp) Segment KEY INPUTS • Shrimp Feed • Farm Care Products New Growth Areas Shrimp farming-Current 500 150,000 Ha 500 Processing Plants for Frozen shrimp exports in status (No. of hatcheries in India) Under Farming sh
Slide 16: Diversifying Revenue Streams
Diversifying Revenue Streams Farm Feed Care Diversifying Revenue Streams Hatchery Exports 16
Slide 17: Feed and Farm care range of products
Feed and Farm care range of products Shrimp Feed Farm care range 17
Slide 18: New Initiatives – Farm Care Products
New Initiatives – Farm Care Products NutriSorb VC-9 Absorbs Ammonia Farm Probiotic for Vibrio control NutriPond NutriGut Promotes growth of Protects Gut good bacteria NutriFeast Builds Immunity Launched in FY17; received positive response from the customers Will expand extensively to all touch point
Slide 19: New Initiatives – Processed Seafood in the Domestic Market
New Initiatives – Processed Seafood in the Domestic Market Phase - II Plan to scale up Phase - I launch to other major Aiming for cities in India differentiated offering Launched line of frozen seafood under Plan to add other with a focus on products to widen the brand ‘Prize product range qua
Slide 20: Industry Overview – Global Market
Industry Overview 1 – Global Market
Slide 21: Global seafood market
Global seafood market Aquatic Feed is the fastest growing sub-segment within the Feed Space Segment wise size in the year 2017 (In 0.7 9.1 5.0 4.1 0.6 US$ bn) Particulars 2017 Value 6.6% 6.2% 5.8% 5.6% 4.7% Trade Value 153.5 Segment wise growth (exports USD billion) rate between 2017 and 2023 Trade
Slide 22: Global Demand for Seafood to remain strong; Aquaculture to drive future supply
Global Demand for Seafood to remain strong; Aquaculture to drive future supply SEAFOOD CONSUMPTION (000 tons) Data (2006) Projection(2030) CAGR (%) Capture 64,533 58,159 (0.43%) Aquaculture 47,164 93,612 2.90% Global Total 111,697 151,771 1.29% Source: www.fao.org 7 13 26 38 40 40 42 43 44 62 • Supp
Slide 23: Asia is the primary supplier of global shrimp; India the dominant force in Asia
Asia is the primary supplier of global shrimp; India the dominant force in Asia Asian region dominates global shrimp supply India the dominant force in Asian region Asia LATAM 0.7 0.7 0.8 0.5 0.5 0.6 0.6 0.6 0.5 0.4 0.5 2.1 2.2 2.2 2.3 2.4 2.5 2.4 2.4 2.5 2.7 2.7 2006 2007 2008 2009 2010 2011 2012 2
Slide 24: Global & Regional Trends
Global & Regional Trends World Shrimp Aquaculture by Species: Million M T 2006 2018 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 P. vannamei P. monodon M. rosenbergii Other Aquaculture volumes have grown 4.5x over the last 20 years t
Slide 25: Growth Drivers
Growth Drivers Rapid Rise of switchover to protein Vannamei Aquaculture consumption farming Very high is more cost for balanced across the return, short effective diet globe crop period compared to Increasing global leading to agriculture/ Limited rapid animal natural demand for Adoption of shrimps
Slide 26: Industry Overview – Domestic Market
Industry Overview 2 – Domestic Market
Slide 27: Robust Track Record of Aqua Industry Growth
Robust Track Record of Aqua Industry Growth Export Performance Since 2002-03 (US $ Million) Indian Seafood export crossed USD 7 bn for the first time during FY18; a growth of ~23% over FY17. US $ Million USA and South East Asia retained their positions as the major import markets of India’s seaf
Slide 28: Driven by strong growth in Shrimp Exports
Driven by strong growth in Shrimp Exports Marine Export – Frozen shrimp Shrimp exports during the year rose by 30.26% in continues to be highest contributor quantity and 30.10% in dollar terms Frozen shrimp maintained its position as the key contributor to seafood export basket, accounting for 6
Slide 29: Shrimp Exports – FY18
Shrimp Exports – FY18 USA South East Europe Japan Middle East China Asia 2,25,946 1,59,145 78,426 33,828 23,441 13,107 53% 21% 11% 5% 3% 1% Overall Shrimp - in MT % of Total Vannamei Shrimp exports (US$) 29 Source: www.mpeda.com
Slide 30: India – Growing share in Frozen & Value Added Shrimps
India – Growing share in Frozen & Value Added Shrimps Frozen shrimps Value-added shrimps 12 15 26 25 2012 25 19 8 7 15 14 19 15 17 17 27 31 12 9 2016 11 14 13 10 19 20 30
Slide 31: India – leading exporter of Shrimp to USA
India – leading exporter of Shrimp to USA Volume 32% 25% 25% 23% 20% 19% 18% 19% 18% 18% 17% 18% 16% 15% 16% 15% 14% 13% 14% 12% 11% 11% 12% 11% 12% 13% 10% 11% 8% 8% India Indonesia Thailand Ecuador Vietnam 2012 2013 2014 2015 2016 2017 Value 33% 27% 26% 24% 21% 20% 20% 19% 19% 18% 17% 17% 15% 14%
Slide 32: Factors behind Success of Shrimp Farming in India
Factors behind Success of Shrimp Farming in India India has an abundant coastline and its The introduction of the L. Vannamei climatic conditions are favorable for species shifted the dynamics of shrimp shrimp farming farming through a significant improvement in economic viability of farms Attractiv
Slide 33: Growth Drivers
Growth Drivers Government’s push on developing Increasing reliability aquaculture in India of suppliers with sophistication and value addition of Growth in demand products in end user markets Large coastline like US and S. E. offers huge Asia Economics of untapped potential shrimp farming for shrimp
Slide 34: Key Challenges
Key Challenges External Expected Increase Diseases, weather patterns, fluctuating in Competition global prices of shrimp Quality of Inputs make the industry Significant capacities inherently unpredictable Access to quality brood have come up stock and seeds which in recent years and are key inputs t
Slide 35: Financial Overview
Financial Overview °| The 7 A Waterbase “2 | Limited
Slide 36: Financial Performance
Financial Performance Revenue EBITDA Margins (%) PBT Margins (%) PAT Margins (%) 16.9% 14.1 CAGR: 17% 48.6 8.7% 58.3 (in Cr) 344.3 10.8 7.0 323.4 11.4 301.7 10.1 8.9 5.9 279.5 9.5 30.2 29.9 229.6 32 30.8 7.4 5.5 3.8 3.6 157.6 23.3 4.8 20.4 17.9 19.5 11.6 0.9 13.6 9.6 3.2 11.6 7.6 0.7 2.6 6 2.2 FY13
Slide 37: Key Financials
Key Financials Book value per Earnings Per Return on net Return on Net Worth Debt Equity 149.6 share (Rs.) Share worth (%) Capital Ratio Employed (%) 36.1 7.6 124.5 0.5 0.5 0.5 113.2 30.1 19.7 20.0 30.3 30.7 27.3 99.2 25.7 23.4 86.7 5.1 15.7 24.3 22.5 4.4 60.3 17.5 3.0 10 9.3 0.2 12.7 2.3 0.1 0.1 4.
Slide 38: H1FY19 Performance Updates
H1FY19 Performance Updates m™N. The Waterbase Limited
Slide 39: H1FY19 - Financial Performance
H1FY19 - Financial Performance Growth Particulars H1FY19 H1FY18 (%) Total Income 250.0 216.9 15.3% EBITDA 46.3 42.9 7.9% EBITDA Margin (%) 18.5% 19.8% (130 bps) Strong performance of Shrimp feed business in existing and newer markets coupled with PAT 26.4 24.1 9.5% positive response to the farm care
Slide 40: H1 FY19 v/s H1 FY18 – Revenue Break-up
H1 FY19 v/s H1 FY18 – Revenue Break – up INR Cr. Growth Particulars H1FY19 H1FY18 (%) Feed 238 206 15.5% Processing 7 9 (22.2%) Farm Care 3 2 50.0% Others 2 - - Revenue from Operations 250 217 15.2% Other Income 4 0.34 - Total Income 254 217.34 16.9% 40
Slide 41: Business Update
Business Update Feed Business Other Business Lines • Strong volumes driven by healthy demand in core and newer markets • Commissioned Phase I of of • Newer markets (Gujarat, Odisha, West Bengal) performing well – gaining Vannamei Hatchery during market share October 2018 • Customer acceptance and vo
Slide 42: Industry Trends & Outlook
Industry Trends & —— ~ — va A The Waterbase Lirnited — =
Slide 43: Domestic Market Trends & Outlook
Domestic Market Trends & Outlook Farmgate prices in India for farmed vannamei shrimp have rebounded after some weakness at the start of the farming season. The initial softness in farmgate prices coupled with variable weather conditions delayed the start of the second crop. However, firming up o
Slide 44: Thank You
Thank You Iw. The Waterbase Limited Powered by International gua Nutrition _———-e me Technology _A-um