APEX

A 3-160, Panasapadu, Kakinada 533 005 La Andhra Pradesh . India — AP EX off +91 884 2383902 - 4 (3 lines) fax +91 884 2383905 - 6 FA FROZEN FOODS LTD. kd @apexfrozenfoods.com CIN: L15490AP2012PLC080067 Date: 14.08.2021 To To The General Manager, The General Manager, Department of Corporate Services, Listing Department, Bombay Stock Exchange Limited, National Stock Exchange of India Limited PhirozeJeejeebhoy Towers, Exchange Plaza, Plot No C/1, G Block, Dalal Street, Mumbai- 400001. Bandra Kurla Complex, Scrip Code : 540692 Bankdra (East), Mumbai - 400 051. Scrip Symbol : APEX Dear Sir/Madam, Sub: Investor Presentation QIFY22 -Reg. Ref: Disclosure of information pursuant to Regulation 30 read with Part of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In compliance with Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Company’s Code of Practices and Procedure for Fair Disclosure of Unpublished Price Sensitive Information, please find the attached copy of QUFY22 Investor Presentation of the Company. Please take the same on record. Thank You, For Apex Frozen Foods Limited 8 \ Bor aye S.Sarojini, Company Secretary & Compliance officer Apex Frozen Foods Result Presentation Q1 / FY22 2 Safe Harbour This presentation2and the accompanying slides (the “Presentation”), which have been prepared by Apex Frozen Foods Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form the basis or berelied oninconnection with anycontract or binding commitment whatsoever. No offering ofsecurities oftheCompany will bemadeexcept by means of astatutoryoffering document containing detailed information about theCompany. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. All product names, logos, and brands are property of their respective owners. All company, product and service names used in this presentation are for identification purposes only. Use of these names,logos, and brands doesnot imply endorsement. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guaranteeing of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences andits exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for suchthird-party statements and projections 4 Key Business Updates – Q1/FY22 4 While the domestic ecosystem was better prepared during the second wave of Covid-19, which allowed our operations to remain largely unaffected, the global disruption in sea transport continued to limit the growth in volumes sold Operational Updates Financial Updates • Overall capacity utilization improved to ~58% in Q1FY22 • Despite discontinuation of MEIS benefit (~5% of revenue), from ~41% in FY21 Net revenue in Q1FY22 grew by 2% Y-o-Y backed by both volume and value growth and by 22% QoQ backed by • Shrimp sales volumes grew by 2% YoY and 23% QoQ to commensurate volume growth 3,262 MT in Q1FY22, of which, the high value R-T-E products formed ~21% versus a share of ~15% in FY21 • The average realization remained firm on account of better product mix and stable shrimp prices, globally • Ongole (Unit-II) Hatchery – Construction completed; Awaiting audits and certain regulatory approvals • However, profitability was impacted due to increased other expenses 5 Key Operational Highlights 01 02 5 Geographical Sales Mix Total Shrimp Sales (MT) China 3% 3,196 3,262 2,656 2 2 Y Europe F 16% 1 Q USA 81% Q1 FY21 Q4 FY21 Q1 FY22 04 03 Geographical Sales Mix Total Shrimp Sales (MT) China 4% 12,243 11,701 1 Europe 2 Y 14% F USA 82% FY20 FY21 6 Income Statement Highlights Partic6ulars (Rs Mn) Q1 FY22 Q1 FY21 Y-o-Y % Q4 FY21 Q-o-Q % FY21 Net revenue 2,228 2,183 1,819 8,185 Other income 47 26 22 75 Total Income 2,275 2,209 3.0 1,841 23.6 8,260 Raw material costs 1,550 1,484 1,211 5,531 Employee expenses 119 104 102 398 Other expenses 469 409 316 1,346 EBITDA 138 212 -35.2 212 -35.2 985 EBITDA margin 6.0% 9.6% - 11.5% - 11.9% Depreciation & amortisation 46 56 49 219 Finance cost 45 40 44 159 Profit Before Tax 47 116 -59.6 119 -60.4 606 Tax expenses 14 32 35 163 Profit After Tax 33 85 -61.1 84 -60.6 443 PAT margin 1.4% 3.8% - 4.5% - 5.4% Other comprehensive income 3 -7 1 -3 Total Comprehensive Income 36 78 85 440 Diluted EPS (Rs) 1.05 2.71 -61.3 2.68 -60.8 14.17 7 Balance Sheet Highlights Liabil7ities (Rs Mn) Mar-20 Mar-21 Assets (Rs Mn) Mar-20 Mar-21 Shareholder’s Funds 3,959 4,398 Non-current assets 2,913 2,708 Share capital 313 313 Net block 2,802 2,504 Reserves & surplus 3,646 4,086 Capital work-in-progress 28 154 Non-current liabilities 243 281 Other non-current assets 49 27 Long term borrowings 241 281 Deferred tax asset 34 23 Other non-current liabilities 3 0 Current Assets 3,352 3,860 Current liabilities 2,063 1,889 Inventories 1,840 1,612 Short term borrowings 1,197 1,380 Trade receivables 791 1,546 Trade payables 453 300 Cash & cash equivalents 72 99 Other current liabilities 313 74 Other financial assets 162 227 Short term provisions 99 135 Other current assets 486 377 Total Liabilities 6,265 6,568 Total Assets 6,265 6,568 9 One of the Leading Exporters of Processed Shrimp in India Key Export Markets – FY21 9 ▪ Commenced business operations in 1995, Apex Frozen Foods has grown to become one of the leading shrimp processors & exporters in India European Union 14% ▪ Diversified customer base of Food Companies, Retail Chains, Restaurants, Club Stores and Distributors across the key markets USA ▪ Well integrated operations with presence in Hatchery and Processing & 82% China 4% Exporting of Shrimp Strategically Located & Well Integrated Operations Hatcheries with a total current capacity of 1.2-1.4 bn SPF seed Located within 20 - 200 kms of most farms from where the produce is sourced for processing Two facilities with a total Processing Capacity of 29,240 MTPA and Cold Storage capacity of ~3,500 MT Located ~20 kms from Kakinada port and ~150 kms from Vizag port 10 Hatchery | Stepping-stone for Ensuring Quality Produce 10 Processing Hatchery Farming & Exports Process: Production of Specific Pathogen Free (SPF) shrimp seed | Typical cycle of 40 – 50 days Phase – II (Ongole) Construction completed Awaiting audits Location: North of Vizag Location: Srikakulam Location: Ongole and regulatory approvals Commenced: Year 2016 Commenced: Year 2019 Commenced: Year 2019 Combined breeding capacity of ~1.2 to 1.4 bn Specific Pathogen Free seed for Captive + Outside Sales 11 Farming | Critical Cushion for Consistent Supply 11 Processing Hatchery Farming & Exports Process: Cultivation of shrimp, which are reared in ponds in a bio-secured environment | Typical cycle of 90 - 120 days In-line with its strategic realignment, the Company has discontinued its leased farms and will continue to procure the required produce directly from farmers 12 Processing | Doubling of Capacity and Expanding the Product Line… 12 Processing Hatchery Farming & Exports Process: Washing, Weighing, Beheading, Grading, Peeling, De-veining, Cooking and Freezing Owned Leased Kakinada Plant: Capacity: 9,240 MTPA Cold Storage: 1,000 MT 29240 29240 6000 6000 3000 G. RagampetaPlant: 9240 9240 9240 Capacity: 20,000 MTPA Cold Storage: 2,500 MT FY17 FY18 FY19 FY20* FY21 100% of the finished product (Frozen Shrimp) is exported primarily to markets like the USA, EU and China *Discontinued operations at the leased facility and commenced operations at the new processing plant in G. Ragampeta 13 …Moving up the Value Chain with ‘Ready-to-Eat’ Product Offerings 13 Ready to Eat Cooked Peeled & De-veined Tail-on Cooked in Shell Specialty Product Shrimp Rings Butterfly Shrimp Dusted and Breaded Peeled Product Skewered Shrimp Par-fried Shrimp Peeled, Deveined, Tail-on Seasoned Shrimp Peeled Un-deveined, Tail-on Base Product Peeled, Deveined, Tail-off Head On, Whole Of the 20,000 MTPA capacity at the Peeled, Un-deveined Headless, Shell-on, new plant, 5,000 MTPA is towards Peeled and Deveined Ready-to-Eat (new product line) Easy Peel 14 Key Factors to Consider for the Sector 14 Demand Slowdown Disease Related Volatile Pricing Being an export-oriented sector, Highly susceptible to outbreak of Global imbalances in demand- any slowdown in consumption in diseases, which can have a supply can impact pricing. key markets like the USA, EU and detrimental effect on the availability Exchange rate fluctuations can South-East Asia will have an adverse of raw material (shrimp) amplify the volatility impact on India’s shrimp exports 16 Operational Highlights – Yearly Trend 16 Processing Capacity (MTPA) 01 Volumes Sold (MT) 02 Leased Owned 14,146 13,051 12,243 11,702 9,897 29,240 29,240 6,000 6,000 3,000 9,240 9,240 9,240 FY17 FY18 FY19 FY20* FY21 FY17 FY18 FY19 FY20 FY21 Working Capital (Days) 04 Total Debt to Equity (times) 03 126 94 1.0 69 60 51 0.4 0.4 0.3 0.3 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Figure 01: *Discontinued operations at the leased facility (6,000 MTPA) and commenced operations at the new processing plant in G. Ragampeta(20,000 MTPA) Figure 04: Working capital days increased due to enhanced Hatchery operations since FY19 and inventory & debtor build-up as on FY20 and FY21, led by the Covid-19 impact 17 Income Statement – Yearly Trend Prof1it &7 Loss (Rs Mn) FY17 FY18 FY19 FY20 FY21 Net revenue 6,987 9,986 8,747 8,271 8,185 Other income 106 199 215 190 75 Total income 7,093 10,185 8,962 8,461 8,260 Raw material costs 5,317 7,031 5,810 5,735 5,531 Employee expenses 249 389 482 437 398 Other expenses 977 1,466 1,559 1,228 1,346 EBITDA 549 1,299 1,111 1,060 985 EBITDA margin (%) 7.7% 12.8% 12.4% 12.5% 11.9% Depreciation 63 87 109 146 219 Finance cost 112 87 65 106 159 Profit Before Tax 374 1,126 937 808 606 Tax expenses 123 335 329 201 163 Profit After Tax 251 791 608 606 443 PAT margin (%) 3.5% 7.8% 6.8% 7.2% 5.4% 18 Balance Sheet – Yearly Trend Liab1iliti8es (Rs Mn) Mar-19 Mar-20 Mar-21 Assets (Rs Mn) Mar-19 Mar-20 Mar-21 Shareholder’s Funds 3,551 3,959 4,398 Non-current assets 2,456 2,913 2,708 Share capital 313 313 313 Net block 1,147 2,802 2,504 Reserves & surplus 3,238 3,646 4,086 Capital work-in-progress 1,163 28 154 Non-current liabilities 94 243 281 Other non-current assets 114 49 27 Long term borrowings 71 241 281 Deferred tax asset 33 34 23 Other non-current liabilities 23 3 0 Current Assets 2,641 3,352 3,860 Current liabilities 1,453 2,063 1,889 Inventories 1,063 1,840 1,612 Short term borrowings 958 1,197 1,380 Trade receivables 935 791 1,546 Trade payables 315 453 300 Cash & cash equivalents 67 72 99 Other current liabilities 51 313 74 Other financial assets 218 162 227 Short term provisions 129 99 135 Other current assets 358 486 377 Total Liabilities 5,098 6,265 6,568 Total Assets 5,098 6,265 6,568 19 India’s Seafood Exports Driven by Surging Shrimp Exports India Exports in 000’s MTPA Frozen Shrimp Other Seafood Total Seafood 19 Shrimp CAGR of 14% vs Total Seafood CAGR of 6% 1,377 1,393 1,290 1,135 1,149 1,051 984 928 946 862 813 678 603 566 614 652 590 434 358 374 301 126 131 151 189 229 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 India’s Shrimp Exports – FY21 United States of America China European Union Japan SE Asia Others ME 46% 24% 12% 7% 7% 6% 5% Source: MPEDA 20 Share Capital Information 1-yr Share Price Movement (Rs/share) 500 20 400 300 200 100 0 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Other data (as on 13-Aug-21) Shareholding Pattern (as on Jun-21) NSE / BSE code APEX / 540692 CMP(Rs/share) 328.95 Institutions 5.69% Market Cap (Rs Mn) 10,280 Others # Shares (Mn) 31.25 21.69% Face Value (Rs/share) 10.00 Promoter Group Sector Aquaculture 72.62% Location Kakinada, AP Source: BSE, NSE Apex Frozen Foods CIN: L15490AP2012PLC080067 Mr Subhramanya Chowdary, ED ir@apexfrozenfoods.com Investor Relations Pooja Sharma / Sheetal Keswani pooja.sharma@stellar-ir.com sheetal@stellar-ir.com