Corporate Presentation August 2017
Contents Safe Harbour Statement: 3 Company Overview 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 11 Growth Strategy those indicated in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, fluctuations In Industry Overview 1: earnings, our ability to manage growth, competitive intensity in our industry of 18 operations including those factors which may affect our cost advantage, wage Sustained Growth Momentum increases, our ability to attract and retain highly skilled professionals, sufficient availability of raw materials, our ability to successfully complete and integrate Industry Overview 2: potential acquisitions, liability for damages on our contracts to supply products, 23 India Shining the success of the companies in which TWL has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of Financial Overview/Q1 Update 32 our intellectual property and general economic conditions affecting our industry. TWL may, from time to time, make additional written and oral forward-looking 38 Industry Trends / Outlook statements, including those in our reports to shareholders. The Company does not undertake to update any forward looking statement that may be made from time to time by or on behalf of the company 2
Company Overview
Feed Capacity post Yrs. In the Amalgamation of PFL Industry TWL – Niche Player in the Revenue Revenues high growth CAGR FY12>17 In FY17 Aquaculture Industry in Estimated size of Domestic Mkt. share Shrimp feed Industry (Domestic) India Debt – Equity Shrimp Exports in As of Mar 31, 2017 FY17 No. of #Dealers 4 Employees Pan India Presence
Key Strengths Strong Brands Quality Control Rich Legacy • Several popular brands which are • Robust manufacturing processes and • Over two decades of expertise in favoured by shrimp farmers step by step quality control system the business- strong connect with suppliers and farmers • Enjoy high recall and are seen to be • Processing facilities are FDA and synonymous with quality and value BAP approved, EU listed and HACCP • Backed by the KCT Group – has certified inculcated ethical business practices with long-term vision in mind • Global best practices implemented R&D Focused Technical Expertise Financial Position ` • Working with renowned research • TWL enjoys unparalleled technical • Comfortable debt levels with a debt institutions in India and abroad for the expertise in the industry as the equity ratio of 0.2 and Net Debt / benefit of industry Pioneer EBITDA of ~0.4x • R&D initiatives have been meaningfully • Staffed by well-qualified personnel • Demonstrated financial discipline converted into new products with rich industry experience through good and bad years for industry • Have driven improvements in feed • Products, processes, practices are manufacturing, farm practices, waste viewed as gold standard by industry 5 management, shrimp processing
Product Portfolio Shrimp Feed Processed Shrimp 6
R&D Strengths – Best local R&D Setup in the Industry Large repository Track record of Proven Farmer training Works closely Continuous Over 20 years of data: introducing competence in and testing of with reputed interaction with of in-house nutrition, innovative shrimp research and R&D initiatives institutes in the international Research & diseases, soil and feeds unparalleled under live area of Aqua experts on Shrimp Development marine conditions technical conditions Feed Nutrition feed nutrition, (R&D) activities expertise in the Research water quality industry management and development of specialized feed ingredients 7
Bagged “2016 India Shrimp Feed Industry New Product Innovation Awards & Leadership Award” by Frost & Sullivan a leading global strategy Accolades consulting company Frost & Sullivan’s, 2016 New Product Innovation Leadership Awards identified companies that demonstrated measured excellence in new, innovative products or product lines within their industry The award was judged on the basis of several parameters, which involved in-depth primary interviews with various industry participants and secondary research conducted by Frost & Sullivan analysts 8
Locations Delhi Andhra Tamil Nadu Pradesh Kolkata Nellore Corporate Office Chennai West Bengal Gujarat Odisha Factory Existing New 9 Group Offices
Shareholding Pattern Promoters Indian Public 61.01% 27.4% Corporate Others Bodies 3.5% 3.7% NRI Institutions 2.6% 1.7% Data as on 30 th June 2017 10
Growth Strategy
Growth Strategy Vertical & Horizontal Integration to enhance Increase market share business stability: and enhance presence • Restarted exports of outside of current frozen shrimp - strongholds by despatched 407 tonnes • Adding new dealers in FY17 Elevate presence & distributors Following • Launched farm care in current commercialization • Customer connect products under the brand strongholds – through workshops, of PFL in H2 name ‘ Baylife ’ • Premiumisation training camps & FY15, available • Launched packaged of offering marketing meets capacity has shrimp and crab meat in • Deepening of increased from • Leveraging after Retail market under the distribution 35,000 MTPA to sales service brand name ‘Prize Catch’ network 110,000 MTPA • Adjusting pellet size • To shortly launch 1st • Addressing all based on market & - Now focused on hatchery which will sizes of orders regional preference higher utilisation supply good quality 12 seeds for shrimp farming
Driving Premiumisation in the Feed Business Enhancing R&D inputs & Farming Branding & After Sales Feed techniques for Packaging service performance disease management 13
Vertical & Horizontal Integration Hatchery Farming Processing Finished Product Segment (Shrimp) KEY INPUTS Shrimp Feed 1. Volume of Shrimp Exports from India in FY2016-17. Exports Source – www.mpeda.in Water (Power) 2. First Hatchery is under construction and expected to be Domestic Market Labour completed in H2FY18 3. Capacity of TWL post amalgamation of Pinnae Feeds Ltd. New Growth Areas Farm Care Products 4. FY17 Exports by TWL 500 125,000 Ha 500+ Processing Plants Current Size of Industry 4,34,484 MT 1 (No. of hatcheries in India) Under Farming for shrimp Industry Requirement / Requires 8,00,000 MT 1,000,000 MT 40 Billion of Post Larvae (PL) 5,00,000 MT + Potential of Shrimp Feed (Current Capacity) 1 Hatchery 2 TWL Capacity 1,10,000 MT 3 4,000 MT 407 MT 4 / 500 Mn PL 14
Diversifying Revenue Streams - Farm Care Retail Diversifying Revenue Streams - Exports Hatchery 15
New Initiatives – Farm Care Products Category Name Function 5 1 1 Probiotics VC-9 Farm Probiotic for Vibrio control 2 Probiotics NutriPond Promotes growth of good bacteria 3 Probiotics NutriFeast Builds Immunity 2 4 4 Healthcare NutriGut Protects Gut 5 Ammonia Binder NutriSorb Absorbs Ammonia 3 16
New Initiatives – Domestic Market Foray Phase - I Soft launch in Chennai in Dec 2016 with the brand ‘Prize Aiming for Catch’ differentiated offering Launched Raw Shrimps and Pasteurised Crab meat – with a focus on quality and freshness – Initially Phase - II will focus on institutional (HORECA) sales Plan to scale up launch in other Southern markets – Plan to add other products to widen product range 17
Industry Overview 1 – Sustained Growth Momentum 18
Global Demand for Seafood to remain strong; Aquaculture to drive future supply Supply of wild catch (from the sea) is 7 13 26 38 40 40 42 43 44 expected to remain stagnant - All incremental supply will come from aqua culture (Farmed Shrimp) 93 87 74 62 60 60 58 57 56 Aquaculture’s share in total seafood 1980 1990 2000 2009 2010 2011 2012 2013 2014 production has grown from ~7% in 1980 to ~44% in 2014 Wildcatch (%) Aquaculture (%) SEAFOOD CONSUMPTION Seafood production is forecasted to rise Data (2006) Projection (2030) (000 tons) from 111 mn tonnes in 2006 to ~152 mn tonnes in 2030 Capture 64,533 58,159 Within this, wild catch volumes will Aquaculture 47,164 93,612 decline while aquaculture is expected to Global Total 111,697 151,771 grow 98% over 2006 > 2030 Source: www.fao.org 19
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