#1Prabhat Flava 1 Prabhat Pizza Cheese MORE MOZZARELLA MORE STRING EASY SHREDONG QUICK MELTING Prabhat Partners in Progress TM Elavjai Flava Flava Flava Flava Elaichi Butterscotch Pineapple Mango Prabhat NUTRI-100 MILK Prabhat Dairy. Whitener Flava Flav Prabhat Skimmed Milk Powa Spray dried Prabhat Shrikhand Real Mango Prabhat Sweetened Condensed Milk Milk Magic Premium LKY Prabhat Night 2009 BULARYAMIX 4 प्रभति The goodness of rich and प्रभात प्रभति मसाला छाछ #ont Greeft afteft arooft quality ghee Prabhat PURE COW GHEE 200 200 200 DOUBLE Prabhat Prabhat Malai Paneer HOME TASTE Dahi ADESK NO POWDER ADDED Net Weight 200 Prabhat Milk Magic EMERGING BRAND IN VALUE ADDED DAIRY PRODUCTS PRABHAT DAIRY LIMITED Q1 FY17 RESULTS UPDATE Prabhat Precessed Cheese#2DISCLAIMER Prabhat Partners in Progress This presentation and the following discussion may contain "forward looking statements" by Prabhat Dairy Limited ("Prabhat" or "Prabhat Dairy" or the "Company") that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial condition, business prospects, plans and objectives are based on the current beliefs, assumptions, expectations, estimates and projections of the management of Prabhat about the business, industry and markets in which Prabhat operates. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond Prabhat's control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not and should not be construed as a representation of future performance or achievements of Prabhat. In particular, such statements should not be regarded as a projection of future performance of Prabhat. It should be noted that the actual performance or achievements of Prabhat may vary significantly from such statements. 2#3DISCUSSION SUMMARY 1. Q1 FY17 RESULT ANALYSIS 3. Q1 FY17 RESULT ANALYSIS Prabhat Partners in Progress 5. SHAREHOLDING STRUCTURE 2. KEY BUSINESS UPDATES 4. KEY BUSINESS UPDATES 6. ANNEXURE Elavjai Flava Flava Flava Flava Flava Flava Blaichi Ferrerscotch Pineapple Prabhat NUTRI-100 MILK Prabhat Dairy- Whitener Prabhat Skimmed Milk Powa Spray dried The goodness of click and Prabhat Pizza Cheese प्रभति मसाला छाछ प्रभात stant creaft 20 MORE MOZE MELTUNG प्रभात aftet cree Prabhat D Shrikhand Real Mango Prabhat Sweetened Condensed Milk Milk Magic Premian T DRACY Prabhat GULABATAVE MIN Prabhat PURE COW GHEE Prabhat HOME TASTE Dahi Prabhat Malai Paneer Prabhat ProcessB 200 200 200 DOUBLE ADESK NO POWDER ADDED 200 3#4Q1 FY17 RESULT ANALYSIS KEY HIGHLIGHTS Prabhat Partners in Progress In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN PAT & PAT MARGIN 20.4% 19.2% 10.0% 1.4% 8.5% 2,931.2 2,688.7 269.6 247.8 36.7 9% -8% 65 % 2.1% 60.4 Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 Revenues Gross Margin % EBITDA EBITDA Margin % IPAT PAT Margin % 4#5Q1 FY17 RESULT ANALYSIS CONSOLIDATED PROFIT & LOSS STATEMENT Prabhat Partners in Progress Particulars (In Rs Mn) Revenue from Operations Other Operating Income Total Revenues COGS Gross Profit Gross Margin Employee Expenses Q1 FY17 2,926.0 Q1 FY16 YoY% 2,687.7 8.9% 5.1 1.0 404.7% 2,931.2 2,688.7 9.0% 2,369.0 2,139.4 10.7% 562.2 549.3 2.3% 19.2% 20.4% -125 bps 82.2 67.2 22.2% Other Expenses 232.2 212.4 9.3% EBITDA 247.8 269.6 -8.1% EBITDA Margin % 8.5% 10.0% -167 bps Depreciation 104.0 81.6 27.5% Finance Cost 71.3 132.2 -46.1% Other Income PBT Tax Expense 2.2 4.9 -55.8% 74.7 60.7 23.0% 14.2 24.0 -40.6% PAT 60.4 36.7 64.5% PAT Margin % 2.1% 1.4% 69 bps 5#6Q1 FY17 RESULT ANALYSIS FINANCIAL UPDATE: • Q1 FY17 Total Revenues increased by 9.0% YoY to Rs 2,931.2 mn. • Two years of consecutive drought condition in state of Maharashtra had a severe impact on raw milk availability. Prabhat Partners in Progress • • • Prabhat's average milk handling per day declined from 9.75 litres to 7.26 litres in Q1 FY17. Further the average milk procurement rate also increased from Rs 18.20 to Rs 25.72 per litre. In these difficult operating conditions, despite volume de-growth, revenue growth was achieved through judicious product mix and process efficiencies. The share of value added products increased from 76.0% to 82.4% during Q1 FY17. Q1 FY17 gross profit increased by 2.3% YoY to Rs 562.2 mn. Gross margin decreased by 125 bps from 20.4% to 19.2%. • As mentioned above, this was on account of higher milk prices and increased milk procurement efforts. • • Q1 FY17 EBITDA decreased by 8.1% YoY to Rs 247.8 mn. EBITDA margin decreased by 167 bps from 10.0% to 8.5%. • Higher employee expenses as the new Cheese, Paneer and Shrikhand facilities were commissioned. Increase in business promotion expenses for B2C sales as we continued to expand our retail presence in new regions and markets. Lower manufacturing & administrative costs through process efficiencies. Finance cost decreased by 46.1% YoY as the company repaid Rs 1,850 mn debt using IPO proceeds. • Q1 FY17 PAT increased by 64.5% YoY. PAT margin increased by 69 bps from 1.4% to 2.1%. 6#7Q1 FY17 RESULT ANALYSIS KEY BUSINESS UPDATES Prabhat Malai Paneer INGREDIENTS: MA Solids, Caric Acid (INS-330) NUTRITIONAL INFORMATION "Per 100g Total Energy Energy from Fat Protein 310 kcal 216 kcal 180 Carbohydrate 60 Added Sugar 0.00 Saturated Fat 169 0.00 Trans Fat 36 mg 120 mo Fat Cholesterol Sodium Approximate Values Batch No.: Date of Mfg.: Best Before Date: MRP: (incl, of all taxes) KEEP REFRIGERATED BELOW C CONTINOUSLY MARKETED & MANUFACTURED BY प्रभात मलाई पनीर Net Weigh 200 Issa RICH IN PROTEIN NEW PRODUCT LAUNCH Prabhat Prabhat Partners in Progress Launched Paneer in an attractive thermoform packaging which has extended shelf life of the product from 15 to 21 days. The product is available in leading Modern trade outlets. It is available in 200 grams thermoform pack. - 'Ghar Jaisa Dahi' Launched Dahi with no preservatives in Mumbai. Adopted a unique model for distribution of fresh Dahi for the first time in India under the project called 'Raftaar' which delivers fresh Dahi in chilled vans mopeds with chilled box at the back to 10,000 grocery shops in Mumbai. 7#8Q1 FY17 RESULT ANALYSIS KEY BUSINESS UPDATES 200 CONTINUE TO EXPAND RETAIL PRESENCE IN MODERN TRADE FREE 1FREE Prabhat Partners in Progress • Our products like Paneer, Dahi, Lassi and Shrikhand are retailed in Modern Trade • shelves like Big Bazaar, Star Bazaar, Hypercity, D Mart etc. Prabhat Dairy started its retail business 2 years back and already covers more than 10,000 general trade outlets in Mumbai. • Presence in modern trade has been expanded beyond Mumbai across Maharashtra and Gujarat. • Measures taken to expand retail presence in Northern and Southern Indian markets. FREE GET FREE 88#9Q1 FY17 RESULT ANALYSIS KEY BUSINESS UPDATES NEW ORDERS BAGGED Prabhat Partners in Progress • Tie-up with Future Group to take its Nilgiri's brand of dairy products to a wider market. Prabhat will sell their milk and milk products in retail packs under the brand name of Nilgiri's. Nilgiris 1905 · Tie-up with Tirumala Milk Products for supply of Sweetened Condensed Milk in tubes of different sizes under the brand name of 'LACTEL SSHUP'. • New order from Yum Brands for supply of cheese. · First export order for cheese from Middle East. GROUPE LACTALIS TIRUMALA MILK PRODUCTS (P) LTD. AN ISO 22000:2005Food Safety) CERTIFIED COMPANY Yum! KFC Pizza Hut ⚫ First export order for sweetened condensed milk from Middle East. TACO BELL 6#10COMPANY OVERVIEW PRABHAT DAIRY - BRIEF PROFILE BUSINESS • OVERVIEW Prabhat Partners in Progress • • Incorporated in 1998, Prabhat Dairy is an integrated milk and dairy products company having established itself as one of the most trusted dairy brand catering to both institutional and retail customers. Prabhat offers wide range of products - pasteurized milk, flavoured milk, sweetened condensed milk, UHT milk, yoghurt, dairy whitener, clarified butter (ghee), cheese, paneer, skimmed & whole milk powder, ingredients for baby foods, lassi, chaas and gulab jamun mix. It has a strong management team led by Mr. Sarangdhar R Nirmal (18+ years of experience in dairy industry) & Mr. Vivek Nirmal (8+ years of experience in dairy industry). Emerging strongly as a consumer focused B2C company with strong and appealing Brands. Vertically integrated operations (from farmer to customer) leading to efficient cost structure & high quality products. • Robust procurement system - 70% direct sourcing from more than 85,000 farmers from Ahmednagar, Pune, Nashik and adjoining districts in Maharashtra (4th largest cow milk producing state in India). Strategically located state of the art manufacturing facilities in Shrirampur (Ahmednagar) and Navi Mumbai - KEY • STRENGTHS • 1.5 Mn litres/day of milk processing capacity with multi-product capabilities • 180 MT/day of sweet condensed milk plant is largest in Asia and 30 MT/day of cheese plant is 3rd largest in India. • Strict quality control and food safety standards enabling consistent delivery and long term relationships with leading global & domestic FMCG companies like Mondelez, Abbott, Nestle, ITC, Britannia, Future Group, Perfetti, Mother Dairy, Vadilal, Haldiram's, D Mart, Parle, Olam, Lotte etc. BUSINESS Consolidated Revenues, EBITDA and PAT were Rs 11,705 mn, Rs 1,193 mn and Rs 245 mn in FY16 having grown at CAGR of 25%, 25% and 41% respectively over FY12 to FY16. OVERVIEW • Strong balance sheet as on FY16 - Debt - Rs 1,586 mn and Equity - Rs 6,549 mn. 10#11COMPANY OVERVIEW OUR EVOLUTION • 1998 Incorporation of the Company by Nirmal Family • Prabhat Partners in Progress 2005 Introduction of value added products (ghee and powders) • • • 2010 Dedicated condensed milk plant setup for Mondelez. Received HACCP and ISO certification Commenced milk powder production with capacity of 30MT/day • 2012 Infused Private Equity in the Company by IABF (a PE firm managed by Rabobank, Netherlands) Awarded best strategic supplier by Kraft and Abbott 2014 Initiated marketing & branding activities to increase consumer business • 2016 Listing on BSE and NSE with a successful IPO raising - Rs 3,000 mn fresh issue - Rs 1,691mn offer for sale 1999 Commenced sale of liquid milk consumer pack under 'Prabhat' brand 2008 Commenced sale of condensed milk to Mondelez India Foods Private Limited . • 2011 Expanded B2B business with reputed industry players Launched 'Prabhat Dairy Quality Mission' • 2013 Commenced manufacturing plant at Navi Mumbai with a milk processing capacity of 0.3mn litres/day Infused Private Equity in the company by Proparco (a subsidiary of Agence Francaise de Developpement) New capacity added for curd, icecream and powders • 2015 Commenced manufacturing of cheese with a capacity of 30MT/day (3rd largest in India), paneer with capacity of 5MT/day and Shrikhand with capacity of 5MT/day 11#12COMPANY OVERVIEW WIDE-RANGING PRODUCT OFFERING Cheese Paneer Pouch Milk - Premium, Fresh, Slim, Rich Prabhat Doodh Prabhat Doodh Prabhat Prabhat Doodh Prabhat Pizza Cheese Doodh Cow Ghee Prabhat PURE COW GHEE Prabhat PURE COW GHEE Curd (Dahi) Prabhat Prabhat PURE COW GHEE Misti Doi Dahi Delicious and Pure Prabhat Dahi Power Mishti D Prabhat PURE COW GHEE Shrikhand Prabhat Malai Paneer Prabhat Processed Cheese Gulab Jamun Mix Prabhat D Shritzhand Prabhat Shritzhand Prabhat Shrikhand Red Dog Zill UHT Milk Prabhat NUTRI-100 Coach 100 SOFT Prabhat Prabhat Partners in Progress Skimmed / Whole Milk Powder Sweetened Condensed Milk Prabhat Skimmed Milk Powder Prabhat Pro Spray dried Sand Condensed Ma The grades al heb milk Milk Magic Dairy Whitener Prabhat r The goodnes of a creamy milk Lassi प्रभात Flavoured Milk जीवी लस्सी Revel Chaas Aava Flavia Flava Flava Flava Prabhat CHAAS Elaichi Autterscotch Pineapple Badam Showbern Happy ending to gery m PRABHAT IS AN EMERGING BRAND WITH WIDE-RANGING VALUE ADDED DAIRY PRODUCTS 12#13COMPANY OVERVIEW PROGRESSING FROM B2B (INSTITUTIONAL) TO B2C (RETAIL) Prabhat Partners in Progress FY12 Revenues - Rs 4,830 Mn B2B-88.7%, B2C - 11.3% Milk - 46.7%, VAP - 53.3% BUSINESS MODEL IS UNDERGOING RAPID TRANSFORMATION WITH LONG TERM SUSTAINABILITY FY16 Revenues - Rs 11,705 Mn VAP-Value added products Prabhat Partners in Progress FY20 TARGET B2B - 70.0%, B2C - 30.0% Milk - 21.1%, VAP - 78.9% Increasing share of value added products B2B-50% B2C-50% B2B 18% CAGR B2C 59% CAGR SOLID FOUNDATION IN FORM OF STEADY & LONG TERM B2B (INSTITUTIONAL) SEGMENT STRONG GROWTH BEING WITNESSED IN B2C (RETAIL) SEGMENT 13#14COMPANY OVERVIEW B2C RETAIL & FOOD SERVICE BUSINESS - B2C BUSINESS HAS DISPLAYED SIGNIFICANT SCALABILITY SINCE INCEPTION Started in FY12 As on FY16 1 State 25 Sales Professionals 5 Distributors 11 States 250 Sales Professionals 650 Distributors 55,000+ Retail Points Prabhat Partners in Progress B2C Strategy: • Forayed into B2C business with focus on selling value added dairy products. • Focus on building retail presence in Tier 2 and Tier 3 regions. • • • The objective of the Food service division is to expand offerings of quality products to niche and specialized customer segments in food service industry. B2C operations to help enhance gross margins, reduce working capital and gain higher market share. Medium term plan to grow B2C revenue share from 30% in FY16 to 50% by FY20. Prabhat Prabhat has been awarded as "Asia's fastest growing marketing brands – FMCG sector" at the WCRC leaders summit 14#15COMPANY OVERVIEW B2B INSTITUTIONAL BUSINESS - B2B Institutional Business Products . Premium Ingredients Sweetened condensed milk, Skimmed / Whole milk powder Prabhat Partners in Progress Major Clients Mondelez India Foods Pvt Ltd Specialty Ingredients Nutrition supplements for baby food Full cream milk Abbot Healthcare Pvt Ltd Mondelez India Foods Pvt Ltd UHT milk, lassi, yogurt, dairy whitener, clarified butter (ghee), curd (dahi), flavoured milk Heritage Foods Ltd Co-Manufacturing Curd (Dahi) Clarified Butter (Ghee) Ice-cream, milk ice, candies Britannia Industries Ltd Britannia Dairy Pvt Ltd Mother Dairy Fruit & Vegetable Pvt Ltd 15#16COMPANY OVERVIEW B2B-MARQUE CLIENTELE Prabhat Partners in Progress PRABHAT HAS DISPLAYED ITS SUPERIOR PRODUCT QUALITY AND CAPABILITIES THROUGH ITS LONG STANDING ASSOCIATION WITH LEADING GLOBAL & DOMESTIC FMCG COMPANIES Mondelēz BRITANNIA PARLE International Eat Healthy Think Better DAMart RICH'S ☐ Abbott Abbott future group india tomorrow Major Clients A Nestle Yakult DANONE ITE HEALTH Heritage *OLAM INBISCO INBISCO India HAPPINESS PERFETTI Vadilal MOTHER DAIRY Ⓡ (van Melle Haldiram's NAGPUR TASTE OF TRADITION LOTTE 16#17COMPANY OVERVIEW VERTICALLY INTEGRATED BUSINESS MODEL ஆ FARMER ENGAGEMENT INTEGRATED OPERATIONS LEADING TO EFFICIENT COST STRUCTURE & HIGH QUALITY PRODUCTS CATTLE HEALTH FODDER Integrated Milk and Dairy Products Company MILK & DAIRY PRODUCTS PACKING COLLECTION • Pabkát LOGISTIC PROCESSING Retail Marketing, Distribution Retail products - Prabhat, Flava, Milk Magic brands. • 650 distributors, 100 Prabhat mini stockists, 15,000 touch points. Cattle Feed & Welfare • Assistance to farmers. Ensure cattle nutrition & medication support to improve milk yields. Prabhat Partners in Progress Efficient Milk Procurement Maximise direct milk sourcing from farmers. • Ensure transparent pricing, farmer relationships, welfare activities. • Technology & IT Infrastructure Computerized milk testing, advanced ERP systems lead to strict quality control, lower production losses & ability to process large orders. Multi-product Facilities Multi-product facilities in Shrirampur & Navi Mumbai, large scale operations result in sharing of manufacturing costs. Low Logistics Costs Strategically located in cow milk belt in Maharashtra. • Close proximity to principal institutional customers and retail consumer markets. 17#18COMPANY OVERVIEW ROBUST MILK PROCUREMENT SYSTEM • Prabhat Partners in Progress STRONG DIRECT SOURCING ECOSYSTEM - INTENSIVE FARMER ENGAGEMENT BUILDING FARMER TRUST & LOYALTY More than 85,000 farmers 70% direct sourcing from 1,200 villages twice a day More than 700 procurement cycles a year Procurement from Ahmednagar, Pune, Nashik and adjoining districts in Maharashtra (4th largest cow milk producing state in India) Transparent pricing - Farmers get the best price Farmers receive detailed receipt mentioning quality (Fat & Non-Fat content), quantity, price Direct transfer to farmer's bank A/c Prabhat Dairy Quality Mission - "Prabhat Mitras" - Coordinate milk procurement and help farmers on cattle health, cattle finance and insurance "Pashu Mitras" - Company partnered veterinary doctors/ para-veterinary workers helping on cattle medication, deworming, vaccination etc MILK COLLECTED FROM FARMER प्रभात डेअविवाहि विश्वास आणि एक अखंड fall AUTOMATED MILK TESTING PROCESS FOR TRANSPARENT PRICING PRINTED TRANSACTION RECEIPT Date Shift Milk Type 23-08-2018 Morning COW Center: Belapur Krd Farmer Bhagat Rajend a s Farmer Id: 15213 Milk Qty (ltr) 12.8 FAT (%) 3. 0 SNF (%) 8.30 Per Ltr Rate (Rs) Amount (Rs) 18.5 236.80 A WORLD OF HEALTH & HAPPINESS 18#19COMPANY OVERVIEW ROBUST MILK PROCUREMENT SYSTEM RAW MILK PROCUREMENT INFRASTRUCTURE The collected raw milk is tested through specialized automated machines post which it is transported to production facilities at Shrirampur and Navi Mumbai 450 MILK COLLECTION CENTRES प्रभात डेअरी क्वॉलिटी मिशन दुधाच्या गुणवत्तेत व दुधात वाढ प्रभात पशु आहार स्वाची आम निश्वास तुमचा. 100 BULK MILK COOLERS Prabhat Partners in Progress SHRIRAMPUR PLANT 20 MILK CHILLING PLANTS NAVI MUMBAI PLANT Prabhat प्रभात डेअरी लिमिटेड Prabile 19#20COMPANY OVERVIEW STRINGENT QUALITY CONTROLS MEETING CUSTOMER REQUIREMENTS Prabhat Partners in Progress 2014 Received "The CII National Award for Food Safety" by the Confederation of Indian Industry STRICT QUALITY CONTROL AND FOOD SAFETY STANDARDS HAVE ENABLED US TO CONSISTENTLY DELIVER TO OUR INSTITUTIONAL CLIENTS 2012 Awarded "The most trusted partner" by Abbott Healthcare Private Limited 2012 Awarded for "Commitment to supplier quality expectations" by Mondelez International भारत सरकार GOVERNMENT OF INDIA S NTCGP1000 QUALITY CERTIFICATIONS SGS FPO Hazard-Analysis HACCP Critics Control-Pol responsible Empowering Sedex chains HALAL INDIA हलाल इंडिया INDIA حلال انڈیا " خلال الهند " G TÜV SUD ISO 22000 Food Safety System Certification 22000 ISO ISO 18000 COMPANY 20#21BUSINESS STRATEGY & OUTLOOK FOCUS ON SCALING UP OUR CHEESE BUSINESS Prabhat Partners in Progress Commissioned new cheese manufacturing facility with a capacity of 30 MT/day in 2015. This is the 3rd largest cheese plant in India. Strategy to grow cheese business over next 2-3 years - • • • Initially focus on selling cheese to HORECA and B2B segments and exports to Gulf countries. We have already procured orders from major pizza and burger chains like Dominos, Pizza Hut, Mc Donald's and other QSRs. Currently manufactures following types of Cheese - • Processed Cheese (Hard, Soft & Pizza) • Mozzarella Cheese (Diced & Shredded) • Cheddar Cheese Cheese sales in HORECA segment have already started in Maharashtra and Gujarat and are planned in South India and North India. Cheese segment offers higher gross margin compared to other dairy products. As the capacity utilization of cheese plant gradually increases, it will have a positive impact on our overall gross margin. Cheese SO you'll love it for sure. Prabhat Pizza Cheese MORE MOZZARELLA MORE STR 1kg Prabhat Processed Cheese 21#22BUSINESS STRATEGY & OUTLOOK KEY FOCUS AREAS Prabhat Partners in Progress EXPAND RETAIL PRODUCTS BUSINESS • Leverage our established brands to expand our product offerings and increase the availability of our Prabhat, Milk Magic and Flava branded products in both existing markets and new markets across India. Focus on increasing the share of value added products like cheese, paneer, shrikhand, curd, ice-cream, flavoured & UHT milk. LEVERAGE INSTITUTIONAL RELATIONSHIPS TO OFFER MORE PRODUCTS IMPROVE CAPACITY UTILISATION & INCREASE OPERATING EFFICIENCES EXPAND DIRECT MILK PROCUREMENT NETWORK • Leverage our institutional relationships and quality certifications obtained from such institutional customers to further increase our product offerings and product sales volumes to these institutional customers and their affiliates in India and globally. • • Integrate our operations and improve capacity utilization by introducing new product lines to effectively utilize dairy by-products and optimize product planning across various categories. We are in process of setting up captive co-generation power facility to simultaneously produce electric power along with steam required for manufacturing process, thus reducing power & fuel costs. • • Increase engagement with farmers by providing additional veterinary services and quality cattle feed. • Grow direct milk procurement network by increasing the number of Prabhat Mitras (milk procurement partners). This will help in lowering our milk procurement costs. 22#23SHAREHOLDING STRUCTURE SHARE PRICE PERFORMANCE 200 150 100 50 50 0 Sep-15 Dec-15 SHAREHOLDING AS ON 30TH JUNE 2016 Non Institutions 24.16% Institutions. 31.60% Source: BSE, Bloomberg Mar-16 Jun-16 Prabhat Partners in Progress MARKET DATA Market Capitalization (Rs mn.) Price (Rs.) No. of Shares Outstanding (mn.) Face Value (Rs.) 52 Week High-Low (Rs.) AS ON 31.08.16 (BSE) 8,893.4 91.05 9.77 10 167.5 - 72.0 KEY INSTITUTIONAL INVESTORS AT 30TH JUNE 2016 % HOLDING Rabo Equity Advisors 14.37% Promoters PROPARCO 8.68% .44.24% IL&FS Trust Company Ltd. 7.57% Wasatch Advisors 6.34% Reliance Capital Ltd. 2.81% Genesis Capital 1.45% HDFC Capital Builder Fund 1.34% Birla Sun Life Small and Mid Cap Fund 1.08% Reliance Capital Trustee Co Ltd 1.07% 23#24FINANCIAL SUMMARY Prabhat Partners in Progress Figures are as per IGAAP REVENUE FROM OPERATIONS Rs Million EBITDA & EBITDA MARGIN PAT & PAT MARGIN CAGR: 25 % CAGR: 25 % CAGR: 41 % 11,705 10,034 10.0% 11.1% 10.4% 10.3% 10.2% 1.3% 2.4% 2.0% 2.6% 2.1% 8,554 6,391 1,035.1 1,192.5 4,830 890.4 708.2 481.1 260 245 151 173 63 FY12 FY12 FY13 FY14 FY15 FY16 FY13 EBITDA FY14 FY15 EBITDA Margin % FY16 FY12 FY13 PAT FY14 FY15 FY16 PAT Margin % LEVERAGE ANALYSIS RETURN METRICS 2.3 15.7% 1.1 1.2 0.9 0.2 6,549 9.8% 9.7% 10.0% 10.1% 8.1% 7.7% 2,872 2,731 2,493 2,965 3,264 4,118 3,516 1,586 1,245 6.0% 5.1% 4.9% FY12 FY13 FY14 Debt Equity FY15 Debt/Equity FY16 FY12 FY13 FY14 FY15 FY16 ■ROCE % ROE % 24#25FOR FURTHER QUERIES - Prabhat Partners in Progress Prabhat Partners in Progress Raviraj Vahadane Prabhat Dairy Limited CFO TM Email ID: [email protected] Contact No: 022 41287700 DICKENSON SEAGULL ® Rohan Rege Dickenson Seagull IR IR Consultant Email ID: [email protected] Contact No:+91 9167300142 25#26ANNEXURE - INDIAN DAIRY INDUSTRY LARGEST MARKET, FASTER GROWTH, INCREASING ORGANISED SHARE Prabhat Partners in Progress INDIA HAS HIGHEST SHARE IN GLOBAL MILK PRODUCTION India's Share % 16.9% 18.5% 20.6% POSITIVE CONSUMPTION TRENDS ARE DRIVING VALUE GROWTH Indian Dairy Market Size (Rs Billion) 182 9,397 147 In Million 122 Tonnes 4.4% 4.8% World 14.9% -7 883 792 723 India 4,061 2.3% 2,293 15.4% 2.2% 2010-11 2014-15 2019-20E RISING ACCEPTANCE OF VALUE ADDED DAIRY PRODUCTS Value Added Dairy Products - 35.4% Market Share In Rs Billion 15.0% 1,440 Source: IMARC report 2014 3,329 2020E 2010 2014 2020E ORGANISED MARKET IS WITNESSING HIGHER PENETRATION Organised Market Share % 16.7% In Rs Billion 20.3% 25.5% 2,396 7 19.7% 814 383 20.7% 2010 2014 2020E 26#27ANNEXURE - INDIAN DAIRY INDUSTRY ORGANISED PLAYERS TO DRIVE GROWTH IN VALUE-ADDED DAIRY PRODUCTS Prabhat Partners in Progress INDIAN DAIRY MARKET (IN VOLUME TERMS) ORGANISED MARKET - RS 813.5 BN (2014) Products Milk Production 147 Million MT Processed/Pouch Milk Market Size (% Share) 519.4 (63.8%) Organised Market % 2014-2020 CAGR % 20% 21% Ghee 110.3 (13.6%) 18% 17% Skimmed Milk Powder 49.6 (6.1%) 100% 15% Self Consumption 54% Marketable Milk 46% UHT Milk 26.0 (3.2%) 100% 26% Butter 21.3 (2.6%) 13% 19% Buttermilk 13.8 (1.7%) 21% 2.9X GROWTH Cream 12.7 (1.6%) 15% Unorganised 32.2% Organised 13.8%% EXPECTED OVER 2014-2020 Flavoured Milk 12.6 (1.6%) 100% 25% Lassi 12.5 (1.5%) 21% Curd 12.1 (1.5%) 6% 20% Cheese Cooperatives 7.6% Private Players 6.2% 11.7 (1.4%) 100% 31% Paneer 6.1 (0.8%) 2% 24% Whey 3.0 (0.4%) 100% 22% Flavoured Yogurt 2.3 (0.3%) 100% 32% Source: IMARC report 27 27#28ANNEXURE-INDIAN DAIRY INDUSTRY VALUE ADDED DAIRY SEGMENT HAS GROWING PREFERENCE FOR COW MILK Prabhat Partners in Progress COMPARISON OF COW AND BUFFALO MILK MAJORITY OF VALUE ADDED DAIRY PRODUCTS ARE MANUFACTURED FROM COW MILK COW MILK CONTAINS LOWER FAT CONTENT AS COMPARED TO BUFFALO MILK AND HENCE APPEALS TO THE HEALTH CONSCIOUS YOUTH POPULATION Parameter Domestic milk consumption Global milk consumption Fat content in milk Water content in milk Cost of milk Cost per animal Yield per animal per return LEADING COW MILK PRODUCING STATES IN INDIA 89% 92% 68% 54% 55% 26% 37% 39% 44% 28% 6.2 5.9 5.0 4.6 4.3 3.8 3.7 3.7 3.6 3.4 Tamil Nadu Uttar Pradesh Rajasthan Maharashtra West Bengal Gujarat Karnataka Bihar Madhya Pradesh Andra Pradesh Cow Milk Production (Million MT) Cow Milk % Source: IMARC report Buffalo High Low Cow Moderate High 7-7.5% 80-85% Rs 52-54/litre Rs 80,000-100,000 3.5-4% 85-90% Rs 36-40/litre Rs 60,000-70,000 1.7 tonnes of milk per animal 1.2 tonnes of milk per animal Prabhat Dairy's milk procurement network and manufacturing plant is located in Shrirampur in Ahmednagar, which is the largest cow milk producing District in Maharashtra 28#29ANNEXURE - INDIAN DAIRY INDUSTRY KEY LONG TERM GROWTH DRIVERS FAVOURABLE DEMOGRAPHIC TRENDS • Rising number of middle class households - set to double from 255mn in 2015 to 586mn in 2025. Increasing working population and disposable incomes. Increasing organised retail penetration across Tier 1, Tier 2 and Tier 3 towns. RISING CONSCIOUSNESS . Evolving food consumption patterns with focus on health and nutrition. ABOUT HEALTH & NUTRITION • Milk is rich source of proteins, fats, vitamins and carbohydrates. • RISING SHARE OF HIGH MARGIN PRODUCTS IMPROVEMENT IN SUPPLY CHAIN INFRASTRUCTURE GOVERNMENT INCENTIVES & SCHEMES Source: Company RHP • The share of milk and dairy products in daily food diet is continually increasing High-margin milk products account for 15-20% of the total milk produced in India. Rise in urbanisation and changing consumer lifestyle are driving demand for value-added dairy products. • Rising number of middle class households - set to double from 255 mn in 2015 to 586 mn in 2025. • Increasing working population and disposable incomes. Increasing organised retail penetration across Tier 1, Tier 2 and Tier 3 towns. Prabhat Partners in Progress • • National Dairy Plan: Objective is to improve milk productivity and entire value chain infrastructure. The 1st phase (FY12-FY17) has budgeted investment of Rs 22.4 bn. Priority lending status for banks: The sector has this status since 1999. . Technology upgradation: General areas - 40% subsidy, difficult areas - 50% subsidy (up to Rs 10 mn). • Foreign Direct Investment (FDI): 100% FDI permitted in dairy products. • Import of equipments: 5% customs duty on imports of capital goods/machinery, including second-hand. . MRTP (Monopolies & Restrictive Trade Practices Act) rules and FEMA (Foreign Exchange Management Act): Relaxed to encourage investment and expansion by large corporates. 29#30ANNEXURE CONSOLIDATED PROFIT & LOSS STATEMENT Prabhat Partners in Progress Figures are as per IGAAP Particulars (In Rs Mn) FY16 FY15 YoY% Revenue from Operations Other Operating Income Total Revenues COGS Gross Profit Gross Margin Employee Expenses 11,699.8 9,990.7 17.1% 5.2 42.9 -87.9% 11,705.0 10,033.6 16.7% 9,097.0 7,761.9 17.2% 2,608.0 2,271.7 14.8% 22.3% 22.6% -36 bps 281.9 256.0 10.1% Other Expenses 1133.7 980.6 15.6% EBITDA 1192.5 1035.1 15.2% EBITDA Margin % 10.2% 10.3% -13 bps Depreciation 399.0 344.0 16.0% Finance Cost 427.0 412.0 3.6% Other Income 14.7 9.7 50.7% PBT 381.1 288.9 31.9% Tax Expense 135.9 29.0 369.1% PAT 245.3 259.9 -5.6% PAT Margin % 2.1% 2.6% -50 bps 30#31ANNEXURE CONSOLIDATED BALANCE SHEET Figures are as per IGAAP Prabhat Partners in Progress Particulars (In Rs Mn) FY16 FY15 Equities & Liabilities Particulars (In Rs Mn) Assets FY16 FY15 Shareholder's Funds Non-Current Assets Share Capital 976.8 714.3 Fixed Assets 4,542.1 4,648.9 Reserves & Surplus 5,572.0 2,802.1 Non-Current Investments 0.5 0.7 6,548.7 3,516.4 Long-term Loans & Advances 466.1 680.3 Non-Current Liabilities Deferred Tax Assets (net) 5.8 4.7 Long-Term Borrowings 388.4 2,159.4 Other Non-Current Investments 5,014.6 5,334.7 Deferred Tax Liability 236.3 177.6 Other Long Term Liabilities 14.3 10.7 Current Assets 639.0 2,347.7 Inventories 879.1 634.4 Current Liabilities Trade Receivables 2,265.4 2,084.0 Short-term Borrowings 1,193.3 1,656.1 Cash & Cash Equivalents 119.7 215.4 Trade Payables 521.3 622.0 Other Current Liabilities 118.1 443.2 Short-term Loans & Advances 808.1 284.3 Short-term Provisions 78.6 49.9 Other Current Assets 12.1 82.6 1,911.3 2,771.2 4,084.4 3,300.7 Total Equity & Liabilities 9,099.1 8,635.4 Total Assets 9,099.1 8,635.4 31