Waterbase Limited · BSE:WATERBASE
Waterbase — The Waterbase — Investor Presentation (May 2019)
45 slides from Waterbase's investor presentation, May 27, 2019
Slide 1: BSE intimation of investor meeting
Corporate Office: T: +91 44 30127000 ® The 7W. Waterbase ~AK Thapar Limited I37 House Montieth Road Egmore I Chennai I 600008 | India, www.waterbaseindia.com FEEDING GROWTH SINCE 1993 F: +91 44 30127001 27‘h May 2019 Corporate Relationship Department BSE Limited, Floor No. 25, P J Towers, Dalal Stre
Slide 2: Corporate Presentation May 2019
Corporate Presentation May 2019
Slide 3: 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 4: Contents
Contents 2 4 6 1 3 5 Growth Industry Trends Industry Strategy / Outlook Overview Company Industry Overview: Overview Sustained Growth Financial Overview Momentum 3
Slide 5: Company Overview
Company Overview IW. | ser
Slide 6: 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 FY14-19 Revenues In FY19 India Estimated size of Domestic Debt – Equity Shrimp feed Industry As of Mar 31, 2019 No. of #Dealers Employees Pan India Presence
Slide 7: 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 8: 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 9: 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 10: Awards & Accolades
Awards & Accolades SME – Empowering India Awards 2019 – Wins the award under the ‘Food, Agro & Horticulture Products (Mid – Corporate)’ category at the SME – Emerging India Awards 2019 – “SME- Empowering India Awards 2019” seeks to recognize the contribution of such SMEs who through their achievem
Slide 11: 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 12: Locations
Locations Key markets served Delhi Tamil Nadu Andhra Pradesh Kolkata Corporate Office Nellore Chennai West Bengal Gujarat Odisha Factory Existing New Group Offices 11
Slide 13: Shareholding Pattern
Shareholding Pattern Promoters Indian Public As on 31st March 2019 66.83% 27.2% 1.4% 1.3% 3.3% 0.02% 27.2% Corporate Others 66.8% Bodies 1.4% 3.3% NRI Institutions 1.3% 0.02% 12
Slide 14: Growth Strategy
Growth Strategy IW. | ser
Slide 15: 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 16: 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 15
Slide 17: 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 18: Diversifying Revenue Streams
Diversifying Revenue Streams Farm Feed Care Diversifying Revenue Streams Hatchery Exports 17
Slide 19: Feed and Farm care range of products
Feed and Farm care range of products Shrimp Feed Farm care range 18
Slide 20: 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 21: 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 22: Industry Overview – Global Market
Industry Overview 1 – Global Market
Slide 23: 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 24: Global Demand for Seafood to remain strong
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 25: Asia is the primary supplier of global shrimp; India dominant
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 26: Global & Regional Trends
Global & Regional Trends World Shrimp Aquaculture by Species: Million M T 1995 2013 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015 2016 2017 2018 P. vannamei P. monodon M. rosenbergii Other Aquaculture volumes have grown 4.5x over the last 20 years t
Slide 27: 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 28: Industry Overview – Domestic Market
Industry Overview 2 – Domestic Market
Slide 29: 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 30: 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 31: 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$) 30 Source: www.mpeda.com
Slide 32: 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 31
Slide 33: 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 34: 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 35: 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 36: 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 37: Financial Overview
Financial Overview °| The 7 A Waterbase “2 | Limited
Slide 38: Financial Performance
Financial Performance Revenue EBITDA Margins (%) PBT Margins (%) PAT Margins (%) 16.9 14.1 CAGR: 12.7 10% 15.3 48.6 8.7 47.3 8.3 371.7 (in Cr) 58.3 56.9 7 344.3 10.8 323.4 11.4 301.7 8.9 5.9 279.5 10.1 9.6 30.2 29.9 30.8 229.6 5.5 32 3.6 30.8 20.4 17.9 19.5 23.3 3.2 13.6 11.6 0.9 0.7 9.6 2.6 2.2 FY1
Slide 39: Key Financials
Key Financials Book value per Earnings Per Return on net Return on Net Worth Debt Equity share (Rs.) Share worth (%) Capital Ratio 173.1 41.8 7.6 Employed (%) 7.4 149.6 36.1 0.5 0.5 19.7 20 30.3 30.7 124.5 30.1 17.8 113.2 26.2 27.3 5.1 24.3 25.7 15.7 99.2 22.5 4.4 86.7 17.5 3.0 9.3 0.2 0.2 0.1 0.1 4
Slide 40: FY19 Performance Updates
FY19 Performance Updates m™N. The Waterbase Limited
Slide 41: FY19 - Financial Performance
FY19 - Financial Performance Growth Particulars FY19 FY18 (%) Total Income 371.7 344.3 7.9% EBITDA 56.9 58.3 (2.3%) Steady performance – 8% top line growth amidst challenging environment. Strong performance of EBITDA Margin (%) 15.3% 16.9% (160 bps) Feed business during the first half of the fiscal
Slide 42: Business Update
Business Update Feed Business Other Business Lines • Volume growth slowed due to reduced acreage and stocking densities as well as • Commissioned Phase I of Vannamei sporadic outbreak of disease Hatchery during October 2018 • Newer markets (Gujarat, Odisha, West Bengal) continue to exhibit encouragi
Slide 43: Industry Trends & Outlook
Industry Trends & —— ~ — va A The Waterbase Lirnited — =
Slide 44: Domestic Market Trends & Outlook
Domestic Market Trends & Outlook Shrimp production in India is projected to de-grow in 2019-20 as the fear of prevailing, non –remunerative prices is likely to result in shrimp farmers lowering their stocking and production for the year Cautiously optimistic about the business in FY20 owing to –
Slide 45: Thank You
Thank You Iw. The Waterbase Limited Powered by International gua Nutrition _———-e me Technology _A-um