Lt Foods Limited · NSE:LTFOODS
Lt Foods — Investor Presentation (March 2019)
31 slides from Lt Foods's investor presentation, Mar 26, 2019
Slide 1: Investor Presentation
Investor Presentation March 2019 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by LT Foods Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 3: LT Foods – At a glance
LT Foods – At a glance 3
Slide 4: LT Foods is a leading rice-based food company with strong global brands
LT Foods Limited is a leading rice-based food company with strong global brands of basmati and other specialty rice, organic foods and rice-based convenience products “DAAWAT” - the flagship brand is the FY18 Financials leading brand in India and 65+ Iconic countries Net Sales Net Profit EBITDA EPS
Slide 5: Our journey of 50 years from a bulk rice player to a leading rice-based food company
Our journey of 50 years from a bulk rice player to a leading rice-based food company with strong global brands of basmati and other specialty rice, organic foods and rice-based convenience products Strategic Acquisitions Foundation Expanded our presence to 65+ countries 1950s- Founded by Focus o
Slide 6: Creating Enduring Value
Drivers of Growth Creating Building Deepening Enduring Strong Global Value Brands Presence LT Foods Investor presentation, March 2019 6
Slide 7: Creating Enduring Value
Creating Enduring Value 7
Slide 8: The opportunity landscape of quality food segment
The opportunity landscape of quality food segment • In 2017, India accounted for 23% of global rice production. India is also one • Rising affluence and urbanisation are changing consumption patterns in of the greatest consumers of rice, (97 m tonnes in 2017). India. • ‘Basmati’ rice is the most pre
Slide 9: Driven by 'Farm to Fork' – our integrated business model
Driven by ‘Farm to Fork’ – our integrated business model… Robust backward integration through partnerships with Continuous innovation of processes and systems farmers under Sustainable Rice Production Programs. to enhance competitive position and improve Provides technical knowhow to farmers for ric
Slide 10: …and our Integrated Manufacturing
…and our Integrated Manufacturing Sonepat Sonepat Bhopal Amritsar Varpal (Bahalgarh) (Kamaspur) Rice Capacity (TPH) 43 5 (organic rice) 35 6 12 Key products Rice, plain chips, Rice (golden, Organic rice chips seasoning, Rice and creamy, boiled, Raw rice and snack rice/wheat flour, parboiled rice par
Slide 11: Perfectly positioned to leverage on the growing opportunity
Perfectly positioned to leverage on the growing opportunity FY18 Revenue Our Business Segments Direct customers Brands share DAAWAT, Royal, Includes the flagship brand ‘DAAWAT’ & Established Gold Seal Indus Branded ‘Royal’(No. 1 in US) channel partners Valley, Rozana, ~60% Business Other brands in t
Slide 12: Business segment performance over the years (ending 9MFY19)
Business segment performance over the years (ending 9MFY19) All Figures in Rs Cr unless specified Branded Revenue Private Label Revenue Organic Revenue 2,130 962 352 1,802 1,690 1,564 742 776 274 241 605 224 FY16 FY17 FY18 9MFY19 FY16 FY17 FY18 9MFY19 FY16 FY17 FY18 9MFY19 Branded & Private Label Vo
Slide 13: Raising the bar through continuous innovation
Raising the bar through continuous innovation Product Innovation Two product innovation centres, one in Gurugram, India and ‘DAAWAT Rozana Gold Plus’ - a unique one in California, USA, with a team of dedicated research blend of flavoursome white basmati and personnel. fibre rich Brown Rice. In
Slide 14: Building Strong Brands
Building Strong Brands 14
Slide 15: Our strong brands drive superiority in core markets
Our strong brands drive superiority in core markets 29% Market share in India – Rural & Urban By Independent By Reader’s Digest By Economic times Organization Branding expenses ( Rs crs) 30% Market share in India – Modern Trade Branding Exp. As % of sales 150 5% 108 4% 100 94 3% 3.3% 60 2.6% 2% 50 2
Slide 16: Our strong brand portfolio
Our strong brand portfolio Wide range of brands, with an offering for every occasion and every recipe, enabling it to cater to various customer segments, across income groups The flagship brand, with a Strengthening our position in legacy of over 30 years, Saudi Arabia, UAE and offers premium qualit
Slide 17: Brand DAAWAT (The Finest)
Brand DAAWAT (The Finest) Leading brand in 65+ countries A legacy of over 30 years 29%+ share in • Offering premium quality basmati rice across all branded rice points in India and globally. market in India • Consumer need based product range – recipe variants such as biryani and pulao, food service
Slide 18: Brand Royal (No. 1 in US)
Brand Royal (No. 1 in US) Largest selling basmati rice brand in the US 45%+ share of the US basmati rice • The brand’s product portfolio consists of Basmati segment rice, Jasmine rice, Arborio rice, wheat flour, and flavoured rice. • Leveraging the brand’s equity and distribution network, to expand
Slide 19: Organic foods - Ecolife
Organic foods - Ecolife Organic business is one of the fastest growing segments 44% CAGR in LT Foods between 2013 and • Nature Bio Foods Limited (wholly owned subsidiary), 2018. has emerged as a trustworthy and innovative global leader in providing authentic organic ingredients to the global consume
Slide 20: Deepening Global Presence
Deepening Global Presence 20
Slide 21: LT Foods is a globally significant player
LT Foods is a globally significant player Broadening our footprint globally, presence in 65 countries Augmented our capabilities in geographies where already present - such as the US and Middle East the EU; and building strengths in others like UK; Europe • Brand ‘817 Elephant’ helped the Middle Eas
Slide 22: Financials
Financials 22
Slide 23: Our growth through the years (ending 9MFY19)
Our growth through the years (ending 9MFY19) All Figures in Rs Cr unless specified Revenue EBITDA & EBITDA Margin 3,650 EBITDA EBITDA Margin 3,293 2,980 2,897 12.2% 12.3% 600 11.3% 11.0% 12% 406 414 9% 400 363 319 6% 200 3% 0 0% FY16 FY17 FY18 9MFY19 FY16 FY17 FY18 9MFY19 PAT & PAT Margin Working Ca
Slide 24: Earnings highlights - Q3FY19 & 9MFY19
Earnings highlights - Q3FY19 & 9MFY19 All Figures in Rs Cr unless specified Quarterly % growth is YoY EBITDA & PAT & 19% Revenue 9% EBITDA Margin PAT Margin 115 112 39 38.5 10.8% 10.7% 39 38.2 5% 1,117 110 10.1% 37.8 10% 38 4% 104 38 4.0% 4.1% 105 3.4% 3% Q3FY19 958 100 37 932 100 5% 37 2% 36 95 1%
Slide 25: Earnings highlights - Business segment performance
Earnings highlights - Business segment performance All Figures in Rs Cr unless specified Branded Revenue Private Label Revenue Organic Revenue 382 406 107 557 565 587 568 535 95 88 83 84 234 235 135 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3F
Slide 26: Earnings highlights – Inventory & Working capital
Earnings highlights – Inventory & Working capital Working capital days Inventory Days 273 274 Dec-17 Dec-18 263 264 273 274 241 68 62 58 52 222 196 190 186 Inventory daysPayables days Receivables Working days capital days Inventory Volume (Th MT) Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Padd
Slide 27: Earnings highlights – Key financial ratios
Earnings highlights – Key financial ratios 2.08 1.92 1.26 1.26 1.25 1.22 1.06 Net Debt/ Equity Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 1,318 1,399 1,198 1,232 1,267 689 774 Net Worth In Rs Cr Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 16.2% 16.1% 14.8% 12.8% 12.8% 12.2% 13.2% ROCE Q1F
Slide 28: Shareholding pattern
Shareholding pattern As on Dec 31, 2018 Other - 30% Promoter - 56% FPI - 2% MF - 12% LT Foods Investor presentation, March 2019 28
Slide 29: Promoters & Next Gen Leaders
Promoters & Next Gen Leaders Vijay Kumar Arora Ashok Kumar Arora Surinder Kumar Arora Ashwani Kumar Arora Chairman and Managing President Punjab Managing Director Managing Director & CEO Director Operations Abhinav Arora Aditya Arora Gursajan Arora Anmol Arora Ritesh Arora President, LTFA Director,
Slide 30: Management Team
Management Team Vivek Chandra Monika Chawla Jaggia Kamal Poplai Dipol Dhole Sachin Gupta CEO – Global Branded VP – Finance & Head, Quality Vice President, HR & General Manager, Business Strategy Admin Finance J.S. Oberoi Rohan Grover Sanjeev Uppal Manoj Chugh Anubha Bajaj Head, Procurement CEO, NBFL
Slide 31: Investor Contact
CIN: L74899DL1990PLC041790 Investor Contact Website: http://www.ltgroup.in/ Ms Monika Jaggia Email - Monika.Jaggia@ltgroup.in Address : Unit-134, 1st Floor, Rectangle-1, Saket District Tel - 0124-3055210 DaawatBasmatiOfficial Centre, Saket, AuthenticRoyalFoods New Delhi-110017 31