Apex Frozen Foods Ltd. · NSE:APEX
Apex Frozen Foods — Q2 FY19 Earnings Presentation
28 slides from Apex Frozen Foods's earnings presentation, Nov 14, 2018
Slide 1: Exchange submission cover letter
A 3 7‘60, Pmasopadu, Kokinada 533 005 - APEX Andhro Prodesh . India — I a“ +9] 884 2383902 - 4 (3 lines) A FROZEN FOODS LTD. fax +91 884 2383905 ~ 6 I info@opextmzenfoods.com CIN: L15490AP2012PLC080067 Date: 14.11.2018 To To The General Manager, The Manager, Department of Corporate Services, Listing
Slide 2: Investor Presentation Q2 FY19 Result
Investor Presentation Apex Frozen Foods Limited CIN: L15490AP2012PLC080067 Q2 FY19 Result
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Apex Frozen Foods Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not f
Slide 4: Table of Contents
Table of Contents 1 Key Highlights – H1 & Q2 FY19 2 Industry Trends 3 Our Core Strengths 4 Past Performance Investor Presentation Q2 FY19 Apex Frozen Foods Limited 3
Slide 5: Key Highlights – H1 & Q2 FY19
01 Key Highlights – H1 & Q2 FY19 Investor Presentation Q2 FY19 Apex Frozen Foods Limited 4
Slide 6: Completion Status of the New Shrimp Processing Plant
Completion Status of the New Shrimp Processing Plant New shrimp processing plant with installed capacity of 20,000 MTPA; of which: 15,000 MTPA for Ready-To-Cook (RTC) products and 5,000 MTPA for Ready-To-Eat (RTE) products Total planned outlay of Rs 902 mn, of which, Rs 625 mn has been incur
Slide 7: H1 FY19: Key Performance Indicators
H1 FY19 : Key Performance Indicators Volumes sold (MT); operating at almost full capacity Total income (Rs mn) and y-o-y % 7,598 7,368 5,453 5,082 H1 FY18 H1 FY19 H1 FY18 H1 FY19 EBITDA (Rs mn) and EBITDA margin (%) PAT (Rs mn) and PAT margin (%) 12.5% 13.9% 7.1% 8.1% 680 706 387 411 H1 FY18 H1 FY19
Slide 8: Q2 FY19: Key Performance Indicators
Q2 FY19 : Key Performance Indicators Volumes sold (MT); operating at almost full capacity Total income (Rs mn) and y-o-y % 3,941 3,688 2,922 2,642 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 EBITDA (Rs mn) and EBITDA margin (%) PAT (Rs mn) and PAT margin (%) 13.0% 12.7% 7.5% 7.5% 379 336 220 198 Q2 FY18 Q2 FY19
Slide 9: Quarterly Trend: Volumes sold, Average realisation, EBITDA
Quarterly Trend : Volumes sold | Average realisation | EBITDA Volumes sold (MT) Avg. Realisation* (Rs/Kg) 754 3,657 3,941 3,680 3,688 741 3,542 716 3,006 692 685 663 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 * ‘Total Income, including other incom
Slide 10: Profit & Loss Highlights
Profit & Loss Highlights Standalone (Rs mn) Q2 FY19 Q2 FY18 y-o-y % Q1 FY19 q-o-q % H1 FY19 H1 FY18 y-o-y % Net revenue 2,555 2,851 -10.4 2,393 6.8 4,948 5,327 -7.1 Other income 87 71 22.7 47 82.8 134 126 6.5 Total Income 2,642 2,922 -9.6 2,440 8.3 5,082 5,453 -6.8 Raw material 1,762 2,013 -12.5 1,5
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights Standalone (Rs mn) Mar-18 Sep-19 Standalone (Rs mn) Mar-18 Sep-19 Shareholder’s Funds 3,023 3,245 Non-current assets 1,408 1,982 Share capital 313 313 Net block 1,111 1,172 Reserves & surplus 2,710 2,932 Capital work-in-progress 209 690 Non-current liabilities 101 96 Other n
Slide 12: Industry Trends
02 Industry Trends Investor Presentation Q2 FY19 Apex Frozen Foods Limited 11
Slide 13: Global Seafood Industry – Overview
Global Seafood Industry – Overview Increased seafood intake globally, reflected in higher per capita consumption of seafood (kg) Rising income level Variety in product offering 20 15 Richer protein content 1995 2015 Favourable State policies like FTAs Source: FAO, CRISIL Research Seafood ind
Slide 14: Global Demand-Supply Scenario, Favourable for India
Global Demand-Supply Scenario, Favourable for India Demand: Top 5 importing countries, forming ~50% Supply: Asia forms ~92% of total aquaculture production 69.6% 15.0% 2015 67.7% 14.7% 2015 20-22% 2020P 2020P 18.0% 9.9% 7.8% 11.0% 6.8%6.7% 9-11% 8-10% 9.0% 5.2% 7.0% 4.8% 5-7% 5-7% 5.0% 3.0%3.0% USA
Slide 15: India's Growth in Aquaculture Exports and Farming
India’s Growth in Aquaculture Exports and Farming India’s exports on a rise – FY18 (lakh tonnes) Frozen shrimp exports by India 4.8 13.77 Total Seafood 3.7 3.7 (21% y-o-y) 3.2 3.1 5.66 (30% y-o-y) Frozen Shrimp 1.7 1.8 189 229 301 358 374 434 566 4.02 L. Vannamei FY12 FY13 FY14 FY15 FY16 FY17 FY18 (
Slide 16: Our Core Strengths
03 Our Core Strengths Investor Presentation Q2 FY19 Apex Frozen Foods Limited 15
Slide 17: Integrated Operations Ensure Quality Control & Timely Delivery
Integrated Operations Ensure Quality Control & Timely Delivery Hatchery Farming Processing Packaging Logistics • Capacity of • As per customer • 1,500 MT of cold • Three operational • 1,800 acres land 15,240 MTPA of requirement in storage capacity units; combined • Forms 18-20% of processed shrimp R
Slide 18: Strategically Located – Close to Farms as well as Ports
Strategically Located – Close to Farms as well as Ports Andhra Pradesh accounts for ~70% of the total shrimp farming in India Processing Plant Hatchery and Farm Locations Our facilities are in proximity to one another, enabling smooth transition to the next stage: Farms are within 10-200 kms; Kakina
Slide 19: Long Standing Relationships with Reputed Clients
Long Standing Relationships with Reputed Clients Our key distributors… …The end customers (Retail/Food Service Companies) Pacific Seafood Walmart WinCo FOODS OCEAN WORLD VENTURES Sysco US. Kroger FOODS Mazzetta Company Chicken of the Sea SAFEWAY ALDI frozen foods Investor Presentation Q2 FY19 Apex F
Slide 20: Quality Control Certifications act as Entry Barrier
Quality Control Certifications act as Entry Barrier EU Approved Government of India Ministry of Commerce Directorate General of Foreign Trade Four Star Export House Approved Investor Presentation Q2 FY19 Apex Frozen Foods Limited 19
Slide 21: Founded by Promoters with Extensive Experience
Founded by Promoters with Extensive Experience … Industry knowledge, relationships and experience of the founders has enabled sustained growth Karuturi Satyanarayana Murthy, Chairman and Managing Director Founding Promoter of the company and has an experience of over 25 years in aquaculture indust
Slide 22: Annual Financial Highlights
04 Annual Financial Highlights Investor Presentation Q2 FY19 Apex Frozen Foods Limited 21
Slide 23: Robust Growth in Revenue and Profits
Robust Growth in Revenue and Profits… Total income (Rs mn) EBITDA (Rs mn) & Margin (%) PAT (Rs mn) & Margin (%) FY14 5,146 FY14 329 6.4% FY14 134 2.6% FY15 6,044 FY15 382 6.3% FY15 186 3.1% FY16 6,083 FY16 455 7.5% FY16 197 3.2% FY17 7,093 FY17 549 7.7% FY17 251 3.5% FY18 10,185 FY18 1,299 12.8% FY1
Slide 24: Led by Strong Financial Discipline
…Led by Strong Financial Discipline, Leading to… Net debt-to-equity (x) Working capital (Days) Diluted Book value (Rs/share) FY14 2.0 FY14 48 FY14 12.1 FY15 1.6 FY15 54 FY15 17.9 FY16 0.9 FY16 51 FY16 26.6 FY17 1.0 FY17 60 FY17 35.0 FY18 0.1 FY18 52 FY18 96.7 Improved D/E led by… …largely stable wor
Slide 25: Enhanced Profitability for Stakeholders
…Enhanced Profitability for Stakeholders Return on Net Worth (%) Return on Capital Employed (%) FY14 43.1% FY14 18.3% FY15 39.6% FY15 18.9% FY16 28.3% FY16 17.2% FY17 26.1% FY17 17.1% FY18 38.4% FY18 28.1% Consistently generating high Return Ratios Note: The data beyond FY17 is as per Restated Finan
Slide 26: Profit & Loss Highlights
Profit & Loss Highlights Profit & Loss (Rs mn) FY14 FY15 FY16 FY17 FY18 Net revenue 5,143 5,994 6,035 6,987 9,986 Other income 3 50 47 106 199 Total income 5,146 6,044 6,083 7,093 10,185 Raw material 3,885 4,752 4,510 5,317 7,031 Employee expenses 226 258 233 249 389 Other expenses 705 652 884 977 1
Slide 27: Balance Sheet Highlights
Balance Sheet Highlights Standalone (Rs mn) FY16 FY17 FY18 Standalone (Rs mn) FY16 FY17 FY18 Shareholder’s Funds 831 1,094 3,023 Non-current assets 632 857 1,408 Share capital 240 240 313 Net block 552 829 1,111 Reserves & surplus 591 854 2,710 Capital work-in-progress 80 8 209 Non-current liabiliti
Slide 28: For further information, contact
For further information, contact: Mr. Subhramanya Chowdary Ms. Pooja Sharma Executive Director pooja.sharma@stellar-ir.com ir@apexfrozenfoods.com Investor Presentation Q2 FY19 Apex Frozen Foods Limited 27