CAMSON Investor Presentation July 2015

7/25/2019 CAMSON Investor Presentation July 2015

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Investor Presentation

March 2016

Camson Bio Technologies Limited(BSE: 538858)


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Cautionary Statement

2

This presentation contains statements that contain forward looking statements including, but

without limitation, statements relating to the implementation of strategic initiatives, and other

statements relating to Camson Bio Technologies Limiteds (Camson Bio Technologies) future

business developments and economic performance.

While these forward looking statements indicate our assessment and future expectations concerning

the development of our business, a number of risks, uncertainties and other unknown factors couldcause actual developments and results to differ materially from our expectations. These factors

include, but are not limited to, general market, macro-economic, governmental and regulatory trends,

movements in currency exchange and interest rates, competitive pressures, technological

developments, changes in the financial conditions of third parties dealing with us, legislative

developments, and other key factors that could affect our business and financial performance.

Camson Bio Technologies undertakes no obligation to publicly revise any forward looking statementsto reflect future / likely events or circumstances.


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Contents

3

Company Overview1 5 - 11

Industry Dynamics2 13 - 15

Strategy: Path-to-Value3 17 - 19

Business Operations4 21 - 24

Financial Performance5 26 - 27


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Company Overview

4


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Camson: At a Glance

5

Pioneer in zero residue biocide products, supported by scientific research spanning over two decades

Camson Bio Technologies Limited (Camson or the Company) is India's first integrated IPR driven

agricultural biotechnology company

Founded in 1993, Camson is headquartered in Bangalore, with primary focus on biotech R&D

Pioneer in zero residue farming products, which uses secondary metabolites (biological origin) of microbes

to kill / inhibit pathogens, with no use of chemicals

Recently filed patents for its discovery of Natural Fertilizer

Recognized by Deloitte as one the fastest growing technology companies in 2015 and conferred the

Technology Fast 500 award and awarded Leadersof Tomorrow Award by ET Now & Indiamart 2014-15

Long standing relationship with its institutional investors such as CLSA and SBI

4000+ microbes library

3Research Centers;(Bangalore, Aligarh and

Hyderabad)

R&D

2.7mnlitres perannum capacity

Production

22Bio pesticides

7Bio fertilizers

4Water Soluble

Natural Fertilizers

ProductType


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Corporate History

6

1993-2000 2008 2010 2011 2012

1993: Startedoperations

1995: IPO and went

public

2000: Launched

Calphomil, Camsons

first product based on

microbial extract

Launched Zero

Residue line of farm

produce

Land procured forthe second

production unit at

Nangal, Himachal

Pradesh

Research begins

at Aligarh, UP

Among Forbes Asias

best 200 companies

under a billion

Technology Fast 50

India 2010 award from

Deloitte

Best Green SME

award from Yes Bank

Operationalized new

R&D centre at

Doballapur; investment of

Rs. 300 mn

CLSA committed an

investment of US$ 10 mn

Camson Agri Ventures

commenced operations

Signed MOUs with: 1) Kerala

Cardamom Processing and Marketing

Co., 2) Vazhakkulam PineappleGrowers, 3) Coconut Development

Board and 4) Zuari Agri Sciences Ltd.

First company globally to patent

Natural Fertilizers

Demerger of Seeds Business; Record

date of 22-Sep

Awarded

Leaders ofTomorrow

award by ET

Now &

Indiamart

Filed patent for

Natural

fertilizers

2013 20142015

Tie-up with HDFC Bank toadvance HDFCs BC

initiative

Organic certification by

USOCA, Dehradun

Capacity increase started

for the R&D unit in

Doballapur, Karnataka

Awarded top 100mid sized company

by Inc. India

Most innovative

award at SIAL, Abu

Dhabi

Indira Gandhi

Excellence Award


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Geographical Presence and Distribution Network

Geographical Presence and Key Markets Sales & Distribution Network

Manufacturing Facilities

R&D Centres

Target Markets

Currently having pan-India

presence

Intends to enter in the International

markets

Target Farmers Category A: Export oriented

farmers

Category B: Farmers looking for a

remedial solution for a particular

pest/disease

Category C: Farmers who are

aware of environmental cons from

chemicals

Headquartered in Bangalore,

has a 50 acre R&D centre

and production facility in

Dodaballapur, Bangalore

Sales & Marketing

Officers

Authorized

Dealer

Retail

Farmers

Product

Development

Officers

Product

consultancy &

Demos

Marketing Mechanism:

Has clearing & forwarding agents across the country for

storage and handling

Also, employs Field Assistants at local level on a temporary basis

during sales promotions

7


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Key Strengths and Core Competencies

8

R&D capabilities driving operational excellence and market positioning

First mover advantage in the

Zero Residue biocides market

Developed an in-house

proprietary technology platform

consisting of 4,000+ microbes

database, screening technology

and a natural compound library

Scientific results driven by state-

of-the art technology platform

Significant knowledge base of

microbes study

Recently filed patents for its

discovery of Natural Fertilizer

Technologically advanced

manufacturing process

Camson products uses secondary

metabolites with no live micro

organisms, thereby leading to

much higher shelf lives

Two company owned and two

contracted production facilities

Facilitate sales via two way

process: One of direct sales to the

retail shops and second is to

derive demand via product

demos and consultancy to the

farmers

Has a strong network of 2,600+

dealers, 300 distributors and

300+ marketing personnel spreadacross India

Highly Specialized

R&D CapabilitiesOperational Excellence

Well Established

Market Reach


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Camson Differentiating Factors

9

Proprietary

Technology

Platform

(R&D)

Has competitive advantage in the Zero-residue bio inputs

With already established over 4,000 select microbial

library, has very low threat from new entrants

In-house R&D Units recognized by Ministry of Science and

Technology, Govt. of India

Production

Facilities

Have set up production facilities in North India as well as

South India, in order to cater to the diverse demand and

easy access to the markets

Biocides

USP

Camson biocides are target specific, bio degradable, high yielding and does not harm soil productivity

Longer shelf life and Pests/insects do not develop resistance to biocide even after multiple uses

Offer higher protection period

Zero-residue product

Entire Biocides research processtakes about 9 - 12 years

Future Scope: Wide Range of

Applications across the Industries

Recognition

Real-time market access

Waste Water Management

Waste Management

Life Sciences

Power Generation


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Santosh Nair

WTD & Chief Executive Off icer

Having an experience of over 19 years in Banking

and Finance industry and previously worked with

organizations like Merrill Lynch and HDFC Bank

Prior to joining Camson, worked as Director, Global Wealth

Management, Merrill Lynch

At Camson, responsible for streamlining processes and

strengthening backend systems

Introduced several stringent performance benchmarks to boost the

quality of Camson products

Key Management and Board of Directors

10

Sound management team backed with years of experience and a mix of technical & financial skill set

Dhirendra Kumar

CMD & Chief Scientific Offi cer

Founded Camson Bio Technologies in 1993

A technocrat with passion for R&D, has led

Camsons pioneering research in Sciences like

Intragenics and Metagenomics

Spearheaded the development of zero-residue products, new

technological platforms and organically viable hybrid seeds. Previous experience includes ITC, Coromandal and Ranbaxy

At ITC, he took over a loss making division and reworked the entire

product range, positioning and strategy to transform it into the fastest

growing and most profitable division at ITC

Board of Directors

A.N. Singh Non-Executive Director

V.K. Singh Non-Executive Director

Krishnaswamy Ramaswamy Non-Executive, Independent Director

B.C. Madappa Non-Executive, Independent Director

Anurudh Kumar Singh Non-Executive, Independent Director

Reeta Gangwani Non-Executive, Independent Director

Gulshan K. Khanna Non-Executive, Independent Director


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Recent Corporate Developments

11

Awards and Recognition

Camson recognized as one the fastest

growing technology companies in Asia

Pacific and received the Technology Fast500 award

Camson wins 2nd Inc India

Innovative 100 Award under

the category ResponsibleBusiness & Technology

Camson awarded ETNowLeadersof Tomorrow

Key Developments

Received approval from Shareholders and Creditors for the Scheme of Arrangement (Demerger) of the Seeds Business to create a

separate entity Camson Seeds Limited ; record date of 22-Sep-2015; On 14-Nov-2015, Board of Camson Seeds approved

allotment of shares to all who are the shareholders of Camson Biotech as on the record date; Allotment done in Jan 2016

Filed patents for the discovery of natural fertilizers

Appointed Deloitte Haskins & Sells as the statutory auditor of the Company

MOU with Zuari Agri Sciences to market Camson products through Zuarisdistribution network

MOU with the Kerala Cardamom Processing & Marketing Company to facilitate residue free farming for Kerala farmers

MOU with Vazhakkulam Pineapple Growers & Processors to advance the usage of biocide products in pineapple farming

MOU with the Coconut Development Board (a Government of India enterprise), to undertake research on secondary metabolite

based biocides to control red palm weevil infesting coconut plantations


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Industry Dynamics

12


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Industry Trends & Opportunities

13

Increasing

Food

Demand

World population projected to rise from 7.2 bn in 2014 to 9.6 bn in 2050E

Due to growing population, shifting diets and increasing purchasing power, the world will need to produce 69%more food calories in 2050 than 2006

Expected shortfall of food grains globally is 27.7 mmt by 2020 and 14.0 mmt in India by 2017

5.77.2

9.6

0.9 1.3 1.7

1994 2014 2050E

World Indian

Population Statistics (bn) Global Agricultural Total Factor

Productivity (TFP) Growth

1.75%

1.69%

Required growth

by 2050

Current rate of

growth

Agri

Ecological

Footprint

24%

Greenhouse Gas Emissions

(100% = 49 GT CO2) Agri sector itself contributes majorly

to environmental degradation mainly

on account of unhealthy agri practices

Long-term sustainability demands alarge scale shift to biocides based

healthy agriculture

Reducing

Arable

Land

Reducing arable land due to rapid industrialization

South Asia is currently using 94% of its potential arable land

Worldwide, over 0.5 mn tons of banned and unhealthy pesticides

are threatening the arable land

0.38 ha 0.23 ha 0.15 ha

1970 2000 2050

50%70%

Global Middle Class by 2050E

Current

Source: UN Population Report 2014, World Resource Institute Report on Global Food Challenges 2013, UN-FAO Agriculture Report

In Hectares (ha) / Person

37%

Earths Landmass Usage

(100% = 13.3 bn ha)

70%

Water Withdrawal

(100% = 3862 km3H2O)

Agri's Current Ecological Footprint


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14%13%

17%

12%

22% 18%

Global Market Size

14

Crop Protection Industry (US$ bn) Organic Food Market (US$ bn)

Asia, Latin Americas and South Africa are projected to have highest

demand for organic foods in the future

71.2

104.5

161.5

2012 2015 2018

40

5571

2008 2013 2018

Increasing consumption and farmersneed for higher profitability are

driving the growth in crop protection industry

Biocides Market (US$ bn)

2012

7.3

47.2

2018

9.6

73.8

Biocides Market

Total Agri Input Market

Biocides

market to

grow at a

CAGR of

4.7% from

2012-2018

Region Wise Growth in Bio-Pesticide Markets

Significant export potential backed by robust growth in Biocides

market

Source: Lucient Report, Research & Markets Report 2014, BCC Research Report on Organic F&B 2014, Accenture Report 2013,

Transparency Market Report on Global Biocides Market 2015


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37% 20% 6% 6% 5% 26%

Cotton Rice Chilli Wheat Vegetables Others

Pesticide Consumption Pattern in India

India Market Size

15

Crop Protection Industry (US$ bn) Key Industry Highlights

Approx. 2.5% of all agricultural land to be certified organic

by end 2015

Organic (fruits & dairy products) market to grow at a CAGR

of 13-14% and 10-11% respectively from 2012-2017

Total Indian Bio Input (including Genetically Modified)

market estimated to reach US$ 37.0 bn by 2025

Approx. 18% of the crop yield worth US$ 19.6 bn is lost dueto pests every year in India

Rising middle class and increased health awareness to influence the

demand for biocides in the Indian market

Bio-Pesticides Market (US$ bn)

3.8

6.8

2012 2017

0.16

0.35

2013 2018

Source: Tata Strategic Management Group, Care Report 2007, Dawn Magazine, SBI Cap, Technopak Organic Food Report 2012,

Camson Analysis


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Strategy: Path-to-Value

16


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Driving Long-term Growth

17

Focusing R&D efforts on developingcompelling technologies to continue

to deliver a sustainable pipeline of

new products

Pillars

of

Growth

Capitalizing on

our diverse

product range toaddress the

farmer needs for

zero-residue

products, thereby

creating

sustainable

demand and

revenue stream

Continuous focus on optimizing

operational costs and further

streamlining processes to achieve

excellence

Clearly Defined Strategic Plan

o Focus on the institutional desk business, both in

domestic and international markets

o Optimize utilization of existing manufacturing

platform to enhance capital efficiency andshareholder returns

o Continue to develop and patent the innovative

products

o

New Hybrids: Further stress upon productdevelopment

o Successful integration of recent corporate

MOUs which will bring scalability through a

larger research space and new customer base


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Target Optimization Areas

18

Simplifying

Business Segments

Enhancing Market Reach

Improving Support

Functions

Develop best-in-class Agri Biotech (Biocides)

products

Demerger of Seeds business; In line with the core

strategy and optimization plan

To support the superior R&D capabilities, three target areas identified under the optimization plan

Deploy a mix of push and pull marketing strategy to

create demand and push sales

Deepen the product consultancy interaction with the

farmers

Focus on receivable timelines

Ensure sustained compliance with global regulatory

standards

o Improved

businessagility

o Liberating

resources to

re-invest in

R&D to fuel

further

growth


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Demerger of the Seeds business

19

Demerger Highlights Rationale for Demerger

Camson Bio Technologies (CBTL)

(Pre Demerger)

Agri Biotech

(Biocides)

Segment

Seeds Segment

Seeds

Cultivation

Seeds Trading

Agri Biotech

(Biocides)

To operate only in the Agri

Biotech segment, backed by

advanced R&D capabilities

Camson Bio Technologies

(CBTL)

(Post Demerger)

Camson Seeds Ltd.

(New Entity)Seeds Segment

Spin off

Application filed with Karnataka High court, for the Demerger

of Seeds business to form a new entity (Camson Seeds Limited)1

Existing shareholders of CBTL allotted shares of Camson Seeds

ltd. in the ratio of 1:13

CBTL will continue to operate only the Agri biotech (Biocides)

business, focusing upon Zero-residue & eco friendly products4

Most dynamicslike risk, capital

requirements &

return ratios of

both businesses

begun to differ,

necessitating need

for the demerger

Enhance focus onthe rapidly growing

Agri-biotech

business, to further

scale it up

In line with the

Companys long-

term strategy

Changing Business

Dynamics

Cultivating Future

Growth

Enhancing

Market Position

Building brandequity

Further

penetrating the

Indian agri market

Shareholding pattern of Camson Seeds to be same as of CBTL2


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Business Operations

20


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R&D enabled Product Development

Multi-Stage Process

Identification

Metabolite Research

Testing and Production

Bio-medical facts are mined from scientific literature,

further to use in search for microbial sources

Microbe samples are sourced from various agro-climatic

zones

Camson uses in-house technology to facilitate the growthand multiplication of cultures

Extraction of primary and secondary metabolites, from

the cultures

Camsons manufacturing process is continuously

optimized to suit a huge spectrum of temperatures

Helps in mass production of biocides and reduce

operational costs

Field Trials

Camson uses multi-component formulations to develop

products whose ingredients have multiple effects

Has in-house capability over 300 acres of land, where

agro-climatic field trials are conducted

SubStages

Identifying target pathogen

Literature/data mining

Microbial source tracking

1

2

3

4

Isolation of microbes

Mass multiplication

Extraction of Sec Metabolites

Biocide testing

Production optimization

Product improvement

Formulations

Field trails

Process Description

A complex process developed over two decades of microbial research

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Biocides Business

22

Ability to leverage its first mover advantage in a market with significant growth potential

Bio Insecticides Bio Fungicides Bio Fertilizers Bio Stimulants

Agri Biotech

Products

(Biocides)

Produced using secondary metabolites of microbes,

suitable for killing pests

Maximize agricultural productivity while reducing the

environmental impact

Products are highly specific in their action, non synthetic, economical and environmentally safe

Categorized into four product types: Bio Insecticides, Bio

Pesticides, Bio Fertilizers and Growth Stimulants


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Product Range

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Agri Biotech (Biocides)

Bio Insecticides

Help protect crops

and produce high

quality yield

Has unique mode ofaction, less toxic and

organic

Calgard

Cal-mb

Calhopp

Calmyte

Calterm

Calpaste

Calnova

Bio Fungicides

Help control fungi

and act as both:

Preventive and

Curative

Bio degradable

Bio Fertilizers

Maximize farm

potential by

promoting plant

growth

Improve productivity

Bio Stimulants

Make farm operations

more efficient by

plant growth

Reduce the cost of

cultivation

Calbahaar

Calmonas

Calderma

Caltop

Calbase

Calphomil

Calobium

Calphorus

Calosphere

Calspiral

Caltash

Calzoto

Calshri

Calstim

Caltika

Camistrong

Calhume


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Water Soluble Natural Fertilizers: New Segment

24

Natural Fertilizers enables effective mobilisation of nutrients to the plant

Camson is the First in the World to develop WaterSoluble Natural Fertilizers

derived 100% from natural sources; recently filed patent

Natural Fertilizer technology certified by the ControlUnion,a major certifier of

organic agri produce and inputs globally

Camson is capable to manufacture this in commercial quantities to meet the

increasing demand

Performance MetricsNatural Fertilizers Product Advantages

Bio Available NPK: Easier for the plant to absorb the

nutrients1

Do not leach or evaporate as in case of synthetic

fertilizers2

Free from Sodium, Chloride and other harmful

chemicals3

Completely and uniformly water soluble, 100%

Organic4

Germination: Increase of 10%-20%

Plant Height: Increase of 10%-12%

Girth: Increase of 5%

Yield: Increase of 10%-15%

Soil Microbe Count: Increase of 20%


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Financial Performance

25


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Select Financials: Biocides Business

26

Profit & Loss Statement1

(Rs. million) 30.09.2015

Short Term Borrowings2 358.4

Long Term Borrowings 99.5

Total Debt 457.9

Less: Cash & Cash Equivalents (11.0)

Net Debt 446.8

Net Worth 1,413.9

Total Debt / Net Worth (x) 0.32x

Capital Employed 1,871.8

Note:

1. During the year, the Company has received order from the High Court for the demerger of the seeds business of the Company with an appointed

date of 1st April, 2014. Accordingly the above results have been presented for the Agri Biotech business. Consequently, the Company operates in

a single segment, i.e. Agri Biotech and the results relating to previous quarter/period/year are not comparable

2. Short term borrowings include: a) Current portion of long-term maturities and b) Interest accrued but not due on borrowings & security deposit

(Rs. million) Q3 FY2016 Q2 FY2016 Q1 FY2016

Operating Revenue 45.5 122.6 142.4

EBITDA(including other income)

(61.5) 28.9 39.1

EBITDA Margin nm 23.6% 27.4%

Depreciation &

Amortization23.9 27.0 27.7

EBIT(including other income)

(85.0) 1.9 11.4

EBIT Margin nm 1.5% 8.0%

Leverage Profile1


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Camson Bio Technologies Limited

(CIN: L85110KA1993PLC014944)

C-7, 7th Floor, Corporate Block

Golden Enclave, Old Airport Road, Bangalore - 560 017

Phone: +91 80 4076 8900; Fax: +91 80 2520 2285

Email: [email protected]

Website: www.camsonbiotechnologies.com

Neethi

Camson Bio

Technologies

[email protected]

+91 80 4076 8906

Saket Somani

Churchgate Partners

[email protected]

+91 22 6169 5988
mailto:[email protected]://www.camsonbiotechnologies.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.camsonbiotechnologies.com/mailto:[email protected]

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CAMSON Investor Presentation July 2015