Waterbase Limited · BSE:WATERBASE
Waterbase — The Waterbase — Equirus Virtual Investor Conference 2020
44 slides from Waterbase's conference presentation, May 28, 2020
Slide 1: Intimation of Investor Meeting (BSE letter)
�� • The "9!11 Corporate Office , T, +91 44 30127000 1-.T. �at�rbase L1m1ted � YEARS Thapar House I 37 Montieth Road F: +91 44 30127001 Egmore I Chennai I 600008 I India. www.waterbaseindia.com FEEDING GROWTH SINCE 1993 28th May 2020, Corporate Relationship Department BSE Limited Floor 25, PJ Towers
Slide 2: Corporate Presentation May 2020
Corporate Presentation May 2020
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 Covid-19 Industry Strategy Impact & Overview Outlook Company Industry Overview: Overview Sustained Growth Financial Overview Momentum 3
Slide 5: Company Overview
Company Overview “wy
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 324 Estimated size of Domestic Industry in Revenues In FY20 Shrimp feed Industry India 260 0.1 No. of Employees Debt – Equity March 2020 As of Mar 31, 2020 5
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: 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 12: Shareholding Pattern
Shareholding Pattern Promoters Indian Public As on 31st March 2020 1.41% 1.07% 0.02% 3.60% 26.78% Corporate Others Bodies 67.12% NRI Institutions 12
Slide 13: Growth Strategy
Growth Strategy
Slide 14: 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 15: 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 16: 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 17: Diversifying Revenue Streams
Diversifying Revenue Streams Farm Feed Care Diversifying Revenue Streams Hatchery Exports 17
Slide 18: Feed and Farm care range of products
Feed and Farm care range of products Shrimp Feed Farm care range 18
Slide 19: 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 19
Slide 20: 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 21: Industry Overview – Global Market
Industry Overview 1 – Global Market
Slide 22: Global Demand for Seafood to remain strong; Aquaculture to drive supply
Global Demand for Seafood to remain strong; Aquaculture to drive future supply FAO concludes that the maximum wild capture fisheries SEAFOOD CONSUMPTION potential from the world’s oceans has probably been (000 tons) reached Data (2006) Projection(2030) CAGR (%) Capture 64,533 58,159 (0.43%) Overall,
Slide 23: Asia is the primary supplier of global shrimp; India the dominant force
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 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 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 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: 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 30: 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 31: 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 32: Financial Overview
Fin °| The 7 A Waterbase ‘MF | Limited
Slide 33: Financial Performance
Financial Performance Revenue EBITDA Margins (%) PBT Margins (%) PAT Margins (%) 16.9 14.1 8.7 15.3 8.3 12.7 (in Cr) 371.7 7 344.3 10.8 323.5 324.8 11.4 301.7 10.5 5.7 279.5 9.5 7.7 5.5 3.6 3.2 0.9 0.7 32 9.6 30.8 58.3 56.9 34.1 30.2 2.6 17.9 48.6 47.3 24.89 19.5 2.2 11.6 29.9 30.8 18.54 FY15 FY16 F
Slide 34: Key Financials
Key Financials Book value per Earnings Per Return on net Return on Net Worth Debt Equity share (Rs.) Share (Rs.) worth (%) Capital (Rs. cr) Ratio Employed (%) 44.4 7.6 7.4 173.1 183.9 30.7 30.3 41.8 0.5 0.5 19.7 149.6 26.2 20 36.1 17.8 124.5 113.2 30.1 5.1 27.3 4.5 25.7 17.5 99.2 10.1 14.0 9.3 0.2 0
Slide 35: Q4 & FY20 Performance Updates
Q4 & FY20 Performance Updates
Slide 36: FY20 - Financial Performance
FY20 - Financial Performance Particulars (Rs.cr) FY20 FY19 Growth (%) While Feed business remained under pressure owing to weak demand and lower farm gate Total Income 324.80 371.66 (13) prices; ancillary businesses namely Farm care and Hatchery performed well. Farmcare continued to EBITDA 34.1 56.9
Slide 37: FY20 - Financial Performance Revenue Break-up
FY20 - Financial Performance Particulars (Rs.cr) FY20 FY19 Growth (%) Total Income 324.8 371.7 (13) EBITDA 34.1 56.9 (4) EBITDA Margin (%) 10.5 15.3 (480 bps) PAT 18.5 30.8 (4) PAT Margin (%) 5.7 8.3 (260 bps) Revenue Break - up Particulars (Rs.cr) FY20 FY19 Growth (%) Feed 302.4 345.2 (12) Processi
Slide 38: Business Update
Business Update Feed Business Hatchery business – • Covid-19 severely disrupted both the demand and supply side •Overwhelming response • Demand – to the business — in the • Lower demand from the end user (HoReCa – export driven) triggered a chain first year of operations. reaction across the value c
Slide 39: COVID-19 Impact & Outlook
COVID -19 Impact & Outlook °| The 7 A Waterbase ‘MF | Limited
Slide 40: Covid-19 – A Global Phenomenon – Initial Impact
Covid-19 – A Global Phenomenon – Initial Impact • Severe impact on both demand & supply side of the industry • Demand weakens – Shrimp Monthly Price – US$ / Kg • 70% of the consumption is out of home; Social distancing & lockdown measures have severely impacted the HoReCa business globally • Restaur
Slide 41: Covid-19 – Different stage of impact is reflected
Covid-19 – Different stage of impact is reflected USA CHINA EUROPE • Food service business continues to • Pick up in Demand after initial lull • Food service business reel under pressure; although few continue to remain states have permitted resumption of • Restaurant business has resumed under pres
Slide 42: Covid-19 – Impact on India's vis-à-vis peers
Covid-19 – Impact on India’s vis-à-vis peers Indonesia – India – • Processed, Ready to Serve products has seen huge demand • First crop of 2020 • Currency weakening though has perked up prices for feed; which could Farming season has impact farmer‘s margins been severely impacted • Domestic demand i
Slide 43: Covid-19 – Impact on TWL
Covid-19 – Impact on TWL Farming Processing & Exports • Lockdown impacted labour and feed availability in some farming areas • Under stocking of ponds due to fear of low prices • Resumption of exports to • Farmers have opted for early harvesting in an attempt to de-risk themselves China • Stocking a
Slide 44: Thank You
Thank You The Waterbase Limited Powered by International ta ——/ Anteree al - Imes " Me Aqua Nutrition mia —— pet Agua Wuivition \ ; a me Technology Ama = Technology gees — = | PRAWN FEED
The Waterbase — Equirus Virtual Investor Conference 2020 on 6ix