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CompanyPresentation
Presentation
June 2017
Table of Contents
1. Company Overview 5
2. Key Highlights 11
3. Historical Financials 21
4. Conclusions 27
Forward Looking Statement
This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this presentation are
forward-looking statements. Forward-looking statements are based on our current expectations and assumptions relating to our financial condition, results of operations, plans,
objectives, future performance and business. Specifically, these statements include, among other things, statements that describe our expectations for the growth of our business,
expansion into new geographic markets, maintaining and expanding our relationship with key retail partners, the financial impact of new sales contracts on our revenue, our plan to make
significant capital expenditure, and other statements of management's beliefs, intentions or goals. You can identify forward-looking statements by the fact that they do not relate strictly
to historical or current facts. These statements may include words such as "foresee", "forecast", "anticipate”, "estimate“, "expect“, "project“, "plan“, "intend“, "believe“, and other words
and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. These forward-looking statements
are based on assumptions that we have made in light of our industry experience and on our perceptions of historical trends, current conditions, expected future developments, and other
factors we believe are appropriate under the circumstances. As you consider this presentation, you should understand that these statements are not guarantees of performance or
results. They involve risks, uncertainties (many of which are beyond our control), and assumptions, some of which are described under "Risk Factors” in our Annual Reports on Form 20-F
and our Registration Statement on Form F-l filed with the Securities and Exchange Commission. You should be aware that many factors could affect our actual financial results and cause
them to differ materially from those anticipated in the forward-looking statements. Since we operate in an emerging and evolving environment and new risk factors and uncertainties
emerge from time to time, you should not rely upon forward looking statements as predictions of future events. We undertake no obligation to update any forward-looking or other
statements herein to reflect events or circumstances after the date hereof, whether as a result of new information, future events, or otherwise.
Because of these factors, we caution that you should not place undue reliance on any of our forward-looking statements. Further, any forward-looking statement speaks only as of the
date on which it is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us. We have no duty to, and do not
intend to, update or revise the forward-looking statements In this presentation after the date of this presentation.
3
COMPANY OVERVIEW
A Rich Heritage with Over 100 Year Legacy
1915
Founded as an 1995 2015
agro-commodity India’s first fully integrated 100-year centennial
trading house by and automated rice milling Distribution wins – Publix,
factory 2008 2011
the Chanana family Launch of the Established Shaw’s Supermarkets, Gelson’s
AMIRA brand subsidiary in UK Markets, Safeway, Albertsons,
2013 Organics Harmons Grocery, Murphy’s
Launch of organic Markets, Whole Foods and SPD
division Markets
1978
ANIL CHANANA 2016
established 2009 Distribution wins – Cost
international business Established subsidiary 2012 2014 Plus World and MAN
2006 in US and launched Amira Nature Acquired Basmati Rice Consumer (for U.A.E.)
KARAN A CHANANA takes over international Foods Ltd. GmbH in Germany to
and initiates transformation to marketing/distributor listed on NYSE strengthen distribution
a professionally managed office network in Europe
global business
• Since its founding in 1915, Amira has evolved from a domestic, family owned Indian business to a professionally managed, growing,
global branded, publicly traded, packaged food company
• The Company has received numerous accolades:
Multiple years since 2010, Amira has been recognised by the World Economic Forum as a “Global Growth Company”, an invitation-
only community consisting of ~300 of the world’s fastest-growing corporations
Inc. India featured Amira as one of India’s fastest growing mid-sized companies in 2010, 2011, 2012 and 2013
A World Consulting & Research Corporation named Amira one of “Asia’s Most Promising Brands”
Voted “INDIAN POWERBRAND” in the Food Category by Planman Marcom in 2011 and 2013
Best Partner in the “Staples” category in 2013 at the Bharti Walmart Private Limited Annual Supplier Conference
VWP World Brand recognised the Amira Brand as “The Admired Brand of India” in 2014–2015
5
Company Overview
Overview
• A leading global manufacturer, marketer, and distributor of branded, packaged specialty rice and other related food products with sales
in both emerging and developed markets across five continents around the world
• The majority of sales are generated through the sale of Basmati rice, the core focus of the Company, under its flagship Amira brand,
other Company owned brands, and third-party brands
• The Company’s packaged rice product portfolio is complemented by a growing line of related products including edible oils, organic
product offerings, and its institutional business which consists of opportunistic sales of agricultural products
• Vertically integrated business model with a global distribution platform, reaching out to a diverse base of customers
• 100+ year legacy as a family-owned and operated business which Amira has transformed into a professionally-managed, globally-
focused packaged food company with a leading position in the high growth Basmati rice category
• Chairman and CEO, Karan A. Chanana retains a large equity stake (c.75.3% of the business) (1) and the family has continued to make
investments ($13.04 million convertible notes in FY 2016(2) and $3 million in common stock in FY 2017(2)) since IPO
• Headquartered in Dubai, UAE, Amira has offices in India, Germany, the United States, and the UK, with nearly 250 employees worldwide
6
A Closer Look at Amira’s Broad Product Portfolio
Institutional Offerings
Opportunistic sale of agricultural products to
Rice large international and regional trading firms
Products
• Consists of the finest grains of • Consist of different types of • Thai Jasmine: sourced from
aromatic Basmati high-quality rice such as a mix Thailand and has a fragrant
• Aged for as much as of Basmati rice varieties or a aroma and chewy texture
12+ months mix of broken rice • Sharbati Aromatic Long Grain:
• More than doubles in size • Value alternative commonly an everyday rice for daily Onions Potatoes Millet
when cooked used as an “everyday” Basmati consumption; often purchased
Product • Rich taste and fragrant aroma and by restaurants or catering by foodservice customers Other Product Adjacencies
companies • Kheer: formulated for
Features rice pudding
• Khichdi: formulated for Indian
and South Asian comfort food;
also used as infant and
toddler food
• Sona Masoori: aromatic and
light grain white rice
Edible oils
Branded
Organic Products
Third Party
Branded
7
Dynamic and Flexible Procurement Strategy with Significant Barriers for
New Participants
Procurement
Amira purchases paddy (rice) in an unfinished state from a large network Amira buys rice from brokers or other third party millers at the mid-late
of procurement agents and local Indian farmers (typically between (semi-finished) stage of the processing cycle
September and March)
While this rice is more expensive than early stage rice upon Amira’s initial
The farmers bring their paddy to markets called “Mandi,” where they sell,
purchase, it has a lower in-house processing cost and storage requirement
at a set price, to buyers from millers, brokers, and companies like Amira
The markets function as a price setting process run by the local Average drying/warehousing time for mid-stage rice can be as much as
governments, who set the market-wide prices at which Amira ends up four to six months or more
purchasing paddy
Fully processed rice may also be purchased from third-party mills for
immediate re-sale (Amira can use its facilities for packaging or rely on third
2 Processing parties)
Amira then selects the highest quality paddy available and brings it back to Amira sources from third party providers both inside and outside of India
its factory to mill, separate, remove impurities, and package into ready-to-
sell rice
Amira leverages proprietary technology for the quality-testing of
purchased paddy
Once the early-stage rice has been processed by Amira, it is then dried and
aged for 12 months or more in warehouses before it is ready for wholesale
distribution
Basmati rice is only grown in the northern region of the Indian sub-continent in the foothills of the Himalayas
8
Amira Has Continued to Invest in India, its Important Home Geography
Amira Billboard, New Delhi Airport Amira Employees Amira Manufacturing Facility, New Delhi, India Amira Factory, New Delhi, India
Strong GDP Growth and an Emerging Middle Class Expected to Continue Acceleration of Trade-up to
Branded Premium Packaged Specialty Rice Products
9
KEY HIGHLIGHTS
Key Credit Highlights
1
Large Staple Consumer
Category with Highly
Supportive Industry and
Sub Category
Fundamentals
6 2
5 3
Strong Financial Track
Globally Diversified with
Record, Underpinned by
Wide Customer Base and
Stable Margins and Robust
Broad Product Portfolio
Cash Flow Generation
4
Vertically Integrated,
“State-of-the-art” Supply
Chain and Operations
11
1. Rice is a $275bn Global Staple Category with Favourable Market
Conditions
Large Industry with Steady Growth Packaged Rice Industry Dynamics (1) (2)
512
490 497 504 87.3%
2008
2009
2010
2011
2012
2013
2014
2015
2016
• Amira is a global leader in Indian Basmati rice market with more 250 250
than $350 million of sales in the $6.9 billion Indian Basmati rice
market (2) 0 0
• Basmati rice is a premium, aromatic long-grain rice grown in the FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E
northern region of the Indian sub-continent in the foothills of the Specialty Rice (Dom+Intl) per MT Basmati Rice (Dom+Intl) per MT
Himalayas
• Basmati’s superior quality commands a premium price
Regarded as healthy (hypoallergenic and gluten free), with a
lower glycemic index than white rice Often 2 – 3x plus the price of other variants of rice
Considered a premium food product: it improves with age and is • Basmati pricing has recovered sharply from 2015 / 2016 trough
typically stored for as much as 12+ months levels
• Basmati market has seen steady volume growth in India and • Fragmented supply chain, challenging for Western companies to
internationally
consistently source large quantities of Basmati rice
Of the estimated $6.9bn (2) Indian Basmati rice market, ~70% is
sold internationally and ~30% is sold in India • Top 5 players in control of less than 30% of category
India Basmati rice is a ~$6.9 billion (2) subcategory of the ~$50 billion (3) Indian rice market, of which ~70% is sold
internationally and ~30% is sold in country
Source: Company materials, Food and Agricultural Organization report, USDA, ICRA Limited (March 2016)
1. APEDA Agri-exchange.
2. Market size from CRISIL – Indian headquartered global analytical & advisory company.
3. Business Monitor International 2016
4. Amira Price Realization based on unaudited management figures, including estimates for FY 2017. 9/30/16 “Trough” pricing based on average pricing for six months ended 9/30/16. 3/31/17 “Last Trade” pricing
based on selling price realization for international sales of premium Basmati rice in March 2017.
13
2. Amira is a Market Leader with a Differentiated Business Model
RiceFit
Amira is Uniquely Positioned to Seize the Global Specialty Rice Opportunity as a Pure Play
14
3. Globally Diversified with Wide Customer Base and Broad Product
Portfolio
Presence Across Five Continents(1) Diverse Customer Base
Modern Retail, New Delhi, India Top Customers at IPO (2012)
Whole Foods, USA
Kaiser’s, Germany
Top 5
Customers
47%
Rest of
Customers
53%
15
3. Globally Diversified with Wide Customer Base and Broad Product
Portfolio
Gourmet
Avg Selling Px:
INR 160-190/kg
UK: £4.79/kg
Premium
Avg Selling Px: INR 110-140/kg
UK: £1.50-2.32/kg
Mainstream Germany
Avg Selling Px: INR 80-110/kg
UK: £1.20-1.62/kg
Copenhagen UK USA
16
4. Vertically Integrated, “State-of-the-art” Value Chain
Basmati/ Storage
Storage Retail Sector
Mid-/ Non-Basmati Procurement of early-stage paddy Milling Separation (min. 3 Packaging
(6-9 months)
months)
Distribution
Late-Stage Rice Farms
Rice
• Global presence with established roots – With procurement, • Adding value with state-of-the-art • Reliability to valued
processing, and distribution facilities throughout the Basmati rice processing capabilities – State-of-art, customers – Allowing
producing region fully automated and integrated establishment and
processing and milling facility with a fostering of stable
• Diversified supplier base and purchasing power – Longstanding capacity to process c.24 metric tons relationships across 5
relationships with a large network of procurement agents and a of paddy per hour continents and with many
large number of local Indian paddy farmers, which allows Amira to of the world’s premier
• Stability of supply – Ability to deliver retailers
consistently source high- quality paddy at competitive prices
large quantities of high-quality
products globally in a timely manner,
• Organic sourcing initiative – Developed organic sourcing initiatives • Global brand and value-
essential to success in both the Amira
which allow Amira to source and sell organic certified products in added offering – Focus on
branded and third-party branded
India, Europe, and the US providing customers with
businesses
consistent high-quality,
authentic specialty rice
17
5. Proven Organic Financial Results
$1,200.0 $120.0
$99.9
$1,000.0 $100.0
$71.6
$700.0
$600.0 $60.0
$52.4
$547.3 $563.5 $542.6
$39.7
$400.0 $40.0
$31.0 $413.7
$21.5 $329.0
$200.0 $20.0
$255.0
$201.7
12.1% 12.7% 13.8% 14.3% 13.3% 13.2%
10.7% 12.1%
$0.0 $0.0
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 LTM H1 FY2017
Executive Director
19
HISTORICAL FINANCIALS
Revenue Growth Performance
Delivered c.16.4% top-line CAGR over the past 7 years following our proven strategy
Revenue Performance Commentary
($m)
• Amira delivered 16.4% revenue CAGR from FY 2010 through the LTM H1
FY 2017 period, driven by strong double digit volume growth and
$800 benefitting from improved price plus mix trends
FY 2010 –
LTM Amira branded sales grew at ~20% CAGR over the period based on
700.0 H1 2017 outperformance in both its domestic and international markets
CAGR through the conversion of some of its historical third party branded
customers, increased penetration of existing geographies and an
$600 16.4% expanded geographic footprint; Amira branded sales doubled which
563.5
547.3 542.6 now account for approximately 44% of total sales or nearly half of
core rice revenues
413.3 India sales doubled as the Company increased its customer base of
413.7
large distributors and launched 15 managed distribution centers as
$400 301.4 317.6 part of its strategy to increase penetration and grow volumes in its
330.4 import home market
329.0
255.0 18.8% • Amira reported 11 consecutive quarters of double digit revenue, EBITDA
255.0
and net income growth from the time of its IPO through FYE March 31st
201.7 217.0 2015
$200
158.0 Strong operating performance and momentum in the business led by
108.0 286.7 superior Company execution on its expansion strategy and favorable
245.9 245.9
189.0 212.3 industry trends
94.0 97.0 112.0
13.3% • FY 2016 was negatively impacted by a lower industry pricing, the impact
$0 of FX translation on its domestic Indian business and one-off business
LTM H1 2017
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
21
Stable EBITDA Margins Led by High Variable Cost Model and Pass Through
Nature of Business
EBITDA Performance Commentary
• Adjusted EBITDA has been stable with improved trends over the long
($m) (%)
term period (average EBITDA margins of 13.2% from FY 2010 through
$120 180%
LTM H1 2017)
75.5 74.7 Amira’s largest financial outlay is the purchase of paddy / rice,
71.7 c.80% of its sales are cost of materials, additional c.2% of sales are
$60 120% freight, forwarding, and handling
22
Key Working Capital Items
$ in millions
FY2014 FY2015 H1 2016 FY2016 H1 2017
Commentary
• Amira’s inventories included paddy (raw materials) and rice (finished goods) and are valued at the lower of cost and net realizable value(3). Amira’s
inventory level has remained in the region of 35-45% of sales from FY2014 to H1 2017. The write down of inventories for Amira remained minimal at
less than 0.1% of the total inventory value historically
• Amira’s inventories represent a highly monetizable asset that can be sold at virtually any time in the lifecycle, should Amira choose to do so
• Trade receivables as a percentage of sales increased over time in line with growth in the international space where invoices are typically settled after
longer periods. Receivables comprise of retail and institutional customers. As at H1 FY 2017, less than 0.5% is past due for more than one year.
Receivables cycle has also been temporarily extended as a result of a challenging operating environment
• Trade payables comprise mainly of semi-processed rice suppliers and paddy suppliers in addition to other expenses incurred in the normal course of
business
Source: Values based on publicly filed financial statements.
Note: Interim results and ratio analyses have not been audited. Net adjusted working capital is defined in Appendix for Non-IFRS measures.
1. Trade receivables balance for FY 2016 includes $185.1 million of receivables that are not past due, $2.6 million due less than 3 months, $0.6 million due less than six month, $1.4 million due less than one year and
$1.0 million due more than one year.
2. Net adjusted working capital is defined as total current assets minus: (a) total current liabilities (b) cash and cash equivalents and plus current debt
3. Net realizable value is the estimated selling price in the ordinary course of business less estimated cost of completion and selling expenses. Impairments in last 2 years are negligible, where it was $0.2m and $0.1m
as of March 31, 2016 and March 31, 2015 respectively
23
Disciplined Cost Structure and Capital Spending Plan
Historical Capital Expenditures(1)
$6.0
$5.5
$5.0
($ in millions)
$4.0 $3.7
$3.0
$2.4
$2.0 $1.8
$1.2
$0.9
$1.0 $0.6
$0.0
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
• Historically, the company invested in only the most modern manufacturing equipment which has allowed it to benefit from low maintenance capex
In 2010, the majority of capex relates to the doubling of Amira’s factory capacity. Amira benefitted from an increase of ~150bps EBITDA margin
following its factory expansion
As part of its growth strategy, Amira used part of the proceeds from the IPO in 2012 to expand its milling and sorting capacity from 2014 through
2015
• Maintenance capex historically less than ~$2 million per year
1. Capital expenditures include purchase of property, plant, and equipment and intangible assets.
24
Credit Statistics
4.0x • As of September 30, 2016, $204.3 million of total debt and LTM
Adj. EBITDA of $71.7 million
2.4x 2.6x 2.6x
4.0x 4.0x
3.3x 3.2x 3.3x 3.2x
3.1x 3.0x 3.0x 3.1x 3.0x
2.8x 2.8x 2.9x 2.8x
2.5x 2.6x
2.0x 2.0x
0.0x 0.0x
Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 H1'16 H2'16 H1'17 Mid/Small Cap Food Large Cap Food Amira
Source: Derived from public Company financial statements and Capital IQ as of February 24, 2016.
Note: ANFI values based on publicly filed financial statements; preliminary and Interim results and ratios have not been audited.. Large Cap companies include Campbell’s, ConAgra, General Mills, Kellogg, Kraft,
Mondelez, PepsiCo, Mead Johnson, JM Smucker, McCormick.
Mid/Small Cap companies include Pinnacle, Treehouse, Snyder’s-Lance, B&G Foods, Flowers Foods, Post, Hain Celestial, WhiteWave, SodaStream, J&J Snack, Premier Foods, AdvancePierre, Nomad Foods, Monster
Beverage, Lamb Weston, Blue Buffalo, Hostess and Herbalife.
25
CONCLUSIONS
Conclusions
Amira Key Highlights
1 • A large, staple category with steady growth and a very long shelf life (5+ years for packed product)
Staple Consumer Category • Highly fragmented industry with no clear leaders, characterised by high barriers to entry and growth
(procurement, WC need, product know-how, geographic indication, brand, visibility on costs)
with Highly Supportive
• Basmati is a highly attractive premium sub-segment of the rice market catering to a wealthier demographic
Industry Fundamentals enabling pricing premium, benefitting from growth of middle classes in EM countries and a largely under-
penetrated international market
2 • Global players with basmati representing only a small division of sales, hence lacking focus towards the
A Market Leader with category
• Indian players primarily dependent on home markets (and one other international market) and lacking
Differentiated Business appropriate back-end infrastructure
Model • Amira has strong and growing presence across 5 continents with established distribution routes throughout
emerging and international markets
3
• Broad and flexible product offering that can be tailored to target all value and price points
Globally Diversified with
• Diversified blend of leading retailers (Bharti, Publix, Costco, Whole Foods, etc) and institutional, 3rd Party
Wide Customer Base and Branded and distribution partners underpinned by strong relationships
Broad Product Portfolio • Significant decline of revenue concentration since IPO in 2012 (Top 5: 47% to 30% )
4 • Dynamic and flexible procurement strategy (supported by a large network of procurement agents throughout
Vertically Integrated, the Basmati rice producing region) from a diversified supplier base with procurement at competitive prices
combined with lower in-house processing and storage costs
“State-of-the-art” Supply
Chain and Operations • State-of-the-art, fully automated processing and milling capabilities
• Poised for a return to growth
5 • Revenue CAGR of 16.4% and Adjusted EBITDA CAGR of 20.3% between FY 2010 and LTM H1 FY 2017
Strong Financial Track
Record, Underpinned by • Margin stability ensured through complete visibility on costs before pricing considerations and currency
hedging to mitigate adverse FX risk—relative margin stability in the recent challenging basmati pricing
Stable Margins and Robust environment and short-term external issues
Cash Flow Generation • Investing in the most modern manufacturing equipment keeps maintenance capex <$1mm per year
6
• Experienced management team has transformed Amira from a local, family-owned business into a global,
Highly Experienced and professionally run company
Successful Management • Combined total of ~90 years of management experience with diverse backgrounds in the global rice industry
Team • Track record delivering high growth alongside disciplined cost structure and capital spend
27