The Waterbase Limited Corporate Presentation - February, 2017 - PowerPoint PPT Presentation

The Waterbase Limited Corporate Presentation - February, 2017

Contents 3 Company Overview 12 Growth Strategy 2 20 Scheme of Amalgamation - Transaction Highlights 24 Industry Overview 34 Safe Harbour Statement: Financial 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 those indicated in such forward-looking 38 statements. The risks and uncertainties relating to these Q3 & 9M FY17 – Updates statements include, but are not limited to, fluctuations in earnings, our ability to manage growth, competitive intensity in our industry of operations including those factors which may affect our cost advantage, wage increases, our ability 41 to attract and retain highly skilled professionals, sufficient availability of raw materials, our ability to successfully Industry Trends complete and integrate potential acquisitions, liability for damages on our contracts to supply products, 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 our intellectual property and general economic conditions affecting our industry. TWL may, from time to time, make additional written and oral forward-looking 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

Company Overview

TWL – At a Glance Feed Capacity post Shrimp Exports in FY17 4 Amalgamation of PFL (YTD) Employees Yrs. In the Industry Revenue Estimated size of CAGR Domestic Shrimp feed Industry FY12>16 Debt – Equity Revenues As of in Dec 2016 FY16 #Dealers Mkt. share Pan India Presence (Domestic)

Locations 5 Registered office and factory Ananthapuram Village, Delhi • T.P. Gudur Mandal, Nellore – 524 344, Andhra Pradesh. Corporate Office Kolkata No. 37, Thapar House, • Montieth Road, Egmore, Chennai – 600 008 • Nellore Group Corporate Office Delhi Kolkata • • Chennai Corporate Office Factory

Key Strengths Strong Brands Quality Control • Several popular brands which are favoured by • Robust manufacturing processes and step by shrimp farmers step quality control system • Enjoy high recall and are seen to be synonymous • Processing facilities are FDA and BAP approved, 6 with quality and value EU listed and HACCP certified • Global best practices implemented Rich Legacy R&D Focused • Over two decades of expertise in the business- • Working with renowned research institutions in India strong connect with suppliers and farmers and abroad for the benefit of industry • Backed by the KCT Group – has inculcated • R&D initiatives have been meaningfully converted into new products ethical business practices with long-term vision in mind • Have driven improvements in feed manufacturing, farm practices, waste management, shrimp processing Technical Expertise Financial Position ` • TWL enjoys unparalleled technical expertise in • Comfortable debt levels with a debt equity ratio the industry as the Pioneer of 0.2 and Net Debt / EBITDA of ~0.4x • Staffed by well-qualified personnel with rich • Demonstrated financial discipline through good industry experience and bad years for industry • Products, processes, practices are viewed as gold standard by industry

Product Portfolio Shrimp Feed 7 Processed Shrimp

R&D Strengths Over 20 years of in-house 8 Research & Proven competence in Development (R&D) activities research and Works closely unparalleled with reputed Large technical institutes in the repository of expertise in the area of Aqua data: nutrition, industry Feed Nutrition diseases, soil Research and marine conditions Continuous interaction with international experts Farmer training Track record on Shrimp feed and testing of of nutrition, water R&D initiatives introducing quality management under live innovative and development of conditions shrimp feeds specialized feed ingredients

Awards & Accolades Bagged “ 2016 India Shrimp Feed Industry • New Product Innovation Leadership Award” by Frost & Sullivan a leading global strategy consulting company 9 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

Shareholding Pattern Indian Public 28.8% Promoters 10 60.9% Others 3.5% NRI 2.7% Corporate Institutions Bodies 2.5% 1.6% Data as on 31 st December 2016

Growth Strategy

Growth Strategy Diversify market presence 12 Entering more verticals within the Installed capacity at 35,000 MTPA. Widening distribution infrastructure • • • value chain – set to emerge as an Post merger of PFL, combined to enhance pan-India presence – integrated player from farm to fork capacity of 1,10,000 MTPA will be have entered West Bengal and higher by ~300% Gujarat and set to enter Odisha Have commenced setting up of • hatcheries to supply good quality Plan to increase market share and Simultaneously scaling up • • seeds for shrimp farming - location grow volumes by leveraging on presence and reach in current and design finalised; expected to strength of highly skilled technical strongholds of Tamil Nadu & be commissioned in end Q1 FY18 manpower, brand salience, wider Andhra Pradesh product portfolio, improved Restarted direct exports - Deepening distribution network by • • distribution network and value- despatched 300 tonnes of shrimp adding new depots, better added services in FY17 YTD to customers in Europe stocking at distributor level, & USA Capacity constraints are no addition of SKUs and enhanced • longer a hindrance – will enter after-sales service. Dealership TWL is all set to launch a range of • new geographies and network has increased by 35% in farm care products under the aggressively pursue customer FY16 to 135+ dealers. Further brand name “ Baylife ’ which will categories to increase offtake channel expansion is in progress in enhance sustainable agricultural the current financial year practices in the industry in India Increase in scale expected to be • margin accretive – incremental Also working on identifying and • Diversified revenue streams, wider • revenues to enhance return ratios developing new markets for market presence, new products shrimp farming and integrated model will elevate business profile

Vertical & Horizontal Integration Hatchery Farming Processing Finished Product Segment (Shrimp) 13 KEY INPUTS Exports Shrimp Feed Water (Power) Domestic Market Labour New Growth Areas Farm Care Products 500 125,000 Ha Current Size of 400+ Processing Plants (No. of hatcheries under 3,73,866 MT 1 Industry for shrimp in India) Farming Industry Requirement 40 Billion of Post Requires 8,00,000 MT 1,000,000 MT 4,00,000 MT / Potential Larvae (PL) of Shrimp Feed (Current Capacity) 1 Hatchery 2 TWL Capacity 1,10,000 MT 3 4,000 MT 360 MT 4 / 500 Mn PL 1. Volume of Shrimp Exports from India in FY2015-16. Source – www.mpeda.in 2. First Hatchery is under construction and expected to be completed in Q4FY17 3. Capacity of TWL post amalgamation of Pinnae Feeds Ltd. 4. YTD Exports by TWL

New Initiatives – Farm Care Products 14 Vitamins & Probiotics Minerals Healthcare Disinfectants

New Initiatives – Farm Care Products Category Name Function 15 Farm Probiotic for 1 Probiotics VC-9 Vibrio control Promotes growth 2 Probiotics NutriPond of good bacteria 3 Probiotics NutriFeast Builds Immunity 4 Healthcare NutriGut Protects Gut Absorbs 5 Ammonia Binder NutriSorb Ammonia

New Initiatives – Domestic Market Foray Phase I – Soft launch in Chennai in Dec 2016 with the brand ‘ Prize Catch’ • Launched Raw Shrimps and Pasteurised Crab meat • Phase II – Plan to scale up launch in other Southern markets • 16 Plan to add other products to widen product range • Aiming for differentiated offering with a focus on quality and freshness – Initially will • focus on institutional (HORECA) sales

Enhancing Brand Awareness Shop Signage Instore 17

Marketing & Distribution Initiatives Dealer Meets Farmer Meets 18

Scheme of Amalgamation - Transaction Highlights