COASTCORP

Coastal GOW. OF INDIA RECOGNISED THREE STAR EXPORT HOUSE Corporati (^f f n f Regd. Off. : '15-1-3713, Nowroji Road, Maharanipeta, Visakhapatnam - 530 002, INDIA enone : 0891 -2567118, Fax: 0891 -25671 32 www.coastalcorp.co.in, Email : cclinvestors@gmail.com, info@coastalcorp.co.in Ltd. Plant Unit 1 : Marikavalasa (V), Paradesipalem Panchayat, Visakhapatnam Dist. {Þ Plant Unit2 : P. Dharmavaram Village, S. Rayavaram Mandal, Visakhapatnam Dist. (ctt{ : tó3040AP198tPtc0030471 April\2,2022 To To The Manager The Manøger LÍsting Compliance Listing Compliance NationøI StockExchange of India Limíted (NSE) Bomb ay Stock Exchang e Límite d Exchange Plaza, Bandra Kurla Comple4 P,J,Towers, Dalal Street, Bqndra Easl Mumbai - 400057 Mumbai-400 007 NSE SYMBOL: COASTCORP Maharashtra, India Dear Sir, SUB: Intimation under Regulatíon 30 of SEBI (LODR) Regulations. 2015 - Corporate Presentation. Please find enclosed herewith the Investor Presentation for the information of the Stakeholders. This will also be available on the Company's Website, www.coastalcorp.co.irt This is for your information & records. Yours Sincerely, For Coastal Limited (*ßûW sùarooúa Meruva vsP Company Secretary Coastal Corporation Limited Investor Presentation April - 2022 Safe Harbour 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, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of the Presentation. This Presentation may not be all inclusive and may not contain all the information that you may consider material. Any liability in respect of the contents of,or any omission from, this Presentation is expressly excluded. 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 guarantees 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’sability to successfully implement its strategy, the Company’sfuture levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’smarket preferences and its exposure to market risks, as well as other risks. The Company’sactual 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. 2 Table of Contents 01 Q3 FY22 Highlights 0022 Company Overview 03 Business Overview 04 Industry Overview 0055 Financial Highlights 06 Way Forward 3 Recent Expansions Kakinada ProcessingUnit: •Integrated Cold Chain project at KSEZ, Kakinada, A.P. is spread across 10 acres •Total capex of around Rs 70 crore has already been incurred and it is funded by approx Rs 40 crore of promoters contribution, Rs 20 crore of term loans and capital subsidy of Rs 10 crore •Project is completed, trial runs have started, awaiting for Government approvals to start the commercial production •New capacity of 35 MTPD will widen the value added product basket into breading / marinated products which is high margin product Captive Solar Power Plant -3.6MW: •Installed Capacity of 3.6 MW DC solar PV plant at Daleswaram Village, Srikakulam District, Andhra Pradesh for the captive consumption spread across 30 acres •Estimated capex of around Rs 14 crore has already been incurred •Project is on completion stage, awaiting for permission to evacuate power to grid •It will reduce per unit power cost from Rs 7-8 to Rs 3-4 per unit ~ will lead to cost saving of Rs 4 croreannually The above investments would enable the company to Double its Capacity from Existing Levels 4 Q3 FY22 Operational Highlights New Chief Operating Officer (COO) of Coastal Biotech Pvt Ltd During the quarter Mr.T V V Prasad has been appointed as COO of Coastal Biotech Pvt. Ltd. ▪He holds Bachelors Degree of Technology (in Chemical Engineering) and Masters Degree in Science ( Mineral Process ) ▪He is a member of Indian Institute of Chemical Engineers and also awarded as Fellow Institute of Engineers ▪He is also Certified Coatings Inspector from FROSIO Institute, Norway ▪He has earlier worked with Companies like Hindustan Zinc, Sigma Coatings/PPG paints (Multinational Paint Company) & Industries Chimiques Du Senegal in Africa (4th largest producer of Phosphoric acid in the world) ▪With an experience of more than four decades Mr. Prasad will be responsible for operations of Ethanol Project which comes under 100% subsidiary of M/s Coastal Corporation Limited. Update in Shareholding Pattern During the quarter the Company has converted 9,00,000 warrants into equity shares which has been alloted to promoters & promoter group at a premium of Rs 177, due to which shareholding of the promoters & promoter group has been increased to 41.09% (as on 11th Feb 2022) from 36.12%. 6 Q3 FY22 Operational Highlights Revenue EBIDTA PAT Rs 146.1 Rs 6.2 Rs 4.7 Cr Cr Cr Demand for product stayed strong and consistent which leads to revenue growth back to normal. The Company has achieved quarterly revenue of Rs 146.1 crores, 16.1% growth on YoY basis The Company has achieved quarterly EBIDTA of Rs. 6.2 crores and EBITDA margin of 4.2% during the quarter 7 Consolidated Quarterly Financial Highlights Revenue (Rs.Cr.) EBITDA (Rs. Cr.) / Margin(%) PAT (Rs. Cr.) / Margin(%) 8 Consolidated Quarterly Financial Highlights Rs.Cr. Q3FY22 Q3FY21 Q2FY22 Total Income fromOperations 146.13 125.86 128.10 Raw MaterialExpenses 98.93 94.17 84.88 Employee Cost 4.61 3.59 3.89 OtherExpenses 36.42 23.89 29.72 TotalExpenditure 139.95 121.66 118.49 EBITDA 6.17 4.20 9.61 EBITDA Margin% 4.22% 3.34% 7.50% OtherIncome 3.90 2.79 3.34 Depreciation 0.99 0.91 1.11 Interest 2.55 1.47 1.04 Profit BeforeTax 6.54 4.61 10.80 Tax 1.81 1.18 2.95 Profit AfterTax 4.72 3.44 7.85 PAT Margin % 3.35% 2.36% 6.13% EPS in Rs ( Basic) 4.42 3.38 7.35 EPS in Rs. ( Diluted) 4.08 3.38 6.78 9 About Us Our Vision Among top ten player in Shrimp processing and distribution industry worldwide Wehavea mission to deliver superior quality, highly nutritional seafood at the most competitive prices to global consumers. We are a customer driven, Engaged in processing and exporting of extensive range of quality conscious, socially responsible and Shrimp products across the high consuming markets of USA, environment friendly global enterprise, completely Europe, Canada, USE, Saudi Arabia, Hong Kong, Korea, Japan & committed to deliver value added seafood, without compromising on the taste, hygiene and purity. Russia 02 04 13+ 35 750+ MTPD World-Class TeamMembers Continents CountriesCatered ProcessingCapacity Manufacturing Catered Facilities 11 Milestones ▪ Incorporated Continental ▪ Export Excellence Fisheries India Pvt Ltd. as Award in Top Multi wholly owned subsidiary Product Exporter ▪ Established Ultra ofCostalCorporationLtd. in Andhra Pradesh ▪ Started establishing Modern Shrimp ▪ National Award for from Federation of another ultra modern ▪ Incorporated asa Processing Unitwith Outstanding Indian Export Shrimp Processing Private Limited. capacity of 27 MT & Entrepreneurshipin Organizations facility with capacityof Company ExportBusiness MSME 35 MT at KakinadaSEZ 1981 1986 1993 2013 2014 2015 2016 2017 2020 2021 ▪ Came outwith ▪ Established another ▪ Incorporated Seacrest ▪ FTCCI Excellence Award ▪ Incorporated a PublicIssue Unit with enhancing Seafoods Inc in the USAas in recognition of Coastal BiotechPvt. capacityto39MT wholly owned subsidiary Excellence in Export Ltd. for Ethanol of Costal CorporationLtd. Performance Manufacturing ▪ Excellence in Export Performance (SmallScale Industry) awarded by FTAPCCI 12 Management ▪ Holds a Bachelors Degree of Technology (in Chemical Engineering) with an experience of fourdecades Mr. ValsarajThottoli ▪ Presently, Vice Chairman and Managing Director of the Company Vice Chairman & ▪ Devoting his entire time, efforts and energy to develop this Company in all aspects including ManagingDirector strategic business planning and analysis of future competition and threats at global level ▪ Holdsa Masters Degree of Engineering(Electrical)with an experienceof 38 years Dr.Kambhampati ▪ He is results driven, self-motivated and resourceful Promoter with a proven ability to Haribabu develop and strengthen the business in order to maximize company profitability and Promoter efficiency ▪ Holds post Graduate Diploma in Management and FashionTechnology Mrs. JeejaValsaraj ▪ Associated with the Company for the last 16 years Director ▪ Well experienced in the varied areas of Administration and Social responsibility ▪ Chairperson of Corporate Social Responsibility Committee of the Company and takescare of the CSR activities carried out by theCompany 13 Board of Directors ▪ Heis analumniofIITBombay(PhD),IITKharagpur(M.Tech),PondicherryCentral University (PGDBA) and Andhra University (B.E. ElectricalEngineering) ▪ Threedecadesofexperienceandcoreexperienceinthe areasofbanking&infrastructure Mr. E. SankarRao finance Chairman & ▪ AssociationwithIDBIBank,IDFCand subsequentlywithIIFCLhavebeenwellrecognisedby Independent these financial mammoths of the IndianEconomy Director ▪ ExtensiveexperienceinProject& CorporateFinance,FundManagement,Investment Banking, InfrastructureDevelopmentand Long-TermResourceRaising(Domestic&ForeignCapital) ▪ Hehasexperienceofthreedecadesinleadingfinancialstrategiestofacilitateacompany’s Mr.G.V.V. ambitious growthplans Sathyanarayana ▪ Heis responsibleforthe entire financefunctionofthe Companywitha provenability to Director -Finance constantly challenge and improve existing processes andsystems &CFO 14 Board of Directors ▪ Distinguished career spanning 40 years in Life Insurance Corporation of India in accounts, Mr.M.V. marketing, administration, banking and finance Suryanarayana ▪ Fellow member of the Institute of Chartered Accountants of India Independent ▪ Served as CEO of LIC Mutual Fund and was on Board of UTI and member of ICICI Venture Director Capital and currently a member in various committees of the Company ▪ Impeccable career record spanning over 48 years in financial services and is a well-rounded Mr. P.R. commercialbanker Kalyanaraman ▪ Held successful assignments across public and private sector banks, across geographies and Independent functions both in business and in operational areas– across retail and corporate businesses Director –both in field and at macro levels ▪ Well-known among Chemical Engineering Institutions & Petroleum, Refining, Petrochemical and other Chemical Industries Prof. Kamireddi ▪ Now Programme Director, Petroleum Courses, JNTUK,Kakinada Venkateswara Rao ▪ Expert in feasibility studies for Chemical Process Plants, Safety Energy Audits as well as IndependentDirector Hazardous and Risk Assessment Studies. Recognizing his research work in biodiesel 15 Product Portfolio Headless Shell On(HL) Peeled Deveined Tail On (PDTO) Peeled Deveined Tail Off(PD) Pulled Vein Tail On (PVTO) Peeled Un-Deveined(PUD) Butterfly ShrimpSkewers Cooked HeadOn Cooked HLShrimp Cooked HL Easy-Peel Shrimp Cooked PDTOShrimp Cooked PDShrimp 17 Process Flow ▪ Initial quality check by ▪ De-heading / de-shelling / technologist de-skinning / de-veining & Pre-Processing ▪ Microbial & Chemicaltesting Gut cleaning ▪ Washed with disinfectants, ▪ Graded&Chilled RawMaterial weighed andiced ▪ Thoroughlychecked piece by piece ▪ Graded, washed& Freezing packed Processing ▪ Quality checks byon- ▪ PacketsFreezed floortechnologist ▪ Dipped inwater containing disinfectants Packaging & Storage Distribution ▪ Wrapped inpolycover ▪ Exports tovarious ▪ Packed in boxes countries Cuttingedgetechnologybeingusedright fromthesourcingto processing,packaginganddeliveringsuperiorquality unadulterated Shrimps to the internationalmarket 18 Manufacturing Facilities UnitI: ▪Plate Freezer –17.5 MTPD UnitII: ▪Individually Quick Frozen –10 MTPD ▪Plate Freezer –14 MTPD ▪Blast Frozen –10MTPD ▪Individually Quick Frozen –25 MTPD ▪Cooker –10 MTPD ▪ Processing units are located in the prime aquaculture zone near coastal area of Andhra Pradesh ▪ Strategic location facilitates easy procurement of raw materials and process them immediately after harvest, thereby reduce the products process lifecycle 19 Manufacturing Facilities UnitIII: ▪Plate Freezer –14 MTPD ▪Individually Quick Frozen –21 MTPD ▪Cooker –10.5MTPD New plant will augment Company’s value-added supply to various parts of theGlobe 20 Global Reach Russia Europe U.S.A. Japan Korea UAE Saudi Arabia Hongkong Australia WE SHIP WORLDWIDE 21 Global Sea Food Industry Surging consumption of Sea Food in Developed and Developing Economies: ▪ Economic prosperity driving consumption pattern acrossgeographies ▪ Consumer shift towards sea food as source of protein and increased demand for exotic varieties ▪ Expanding population, rising health consciousness with preference for micro nutrient rich foods amongst consumers and increasing disposable income ▪ Between 1961 and 2016, global sea ▪ Governments across world are food consumption grew by 3.2% implementing regulations placing limits on outpacing population growth of captures in order to curb overfishing and 1.6% and exceeded that of meat, protect thebiodiversity which grew by 2.8% ▪ Per Capita consumption of ▪ With sea food consumption growth sea food has increased from 9 outpacing production, emphasis on kg in 1961 to 20.5 kg in 2017 aquacultureisincreasing and is expected to increaseto 21.6 kg by2026 ▪ Rising demand for sea foodand ▪ Focus is on increasing the area relatively static growth in devoted to aquaculture and capture sea food - demand and improve productivity per unit in significance for aquaculture is existing aquaculture areas ▪ Sustainable sea food and on anuptrend organic aquaculture practices are gainingprominence 25 World Outlook Aquaculture Production Aquaculture Production Increased contribution of Aquaculture India - Share in global sea food toIncrease Global capture and AquacultureProduction In MillionTonnes 7.5% 7.1% 2016 2030 Source:FAO 26 India – Conducive Aquaculture Policy Policy Initiative by Government to fillip Aquaculture: ▪ Ministry of Food Processing, Govt. Of India, is encouraging the entrepreneurs for establishing processing factories under “Scheme for Integrated Cold Chain and Value Addition Infrastructure by extending Rs. 10 Crores Grant-in- aid ▪ The Govt. Of India is providing Interest Equalization @ 5% in respect of exports by the Micro, Small & Medium Enterprises(MSME) sector manufacturers under the Interest Equalization Scheme on Pre and Post Shipment Rupee ExportCredit ▪ There are various schemes under Andhra Pradesh Food Processing Policy 2015-20 for setting up Cold Chain Units for Establishment of Shrimp Processing Units, eligibility upto 50% of Project Cost and Maximum Limit of Grant- in-aid upto Rs. 5 Crores and interest Subsidy for 5 years from COD @ 6% (Subject to Max. Rs. 2.50 Crores) ▪ The State Govt. also provides Fiscal Incentives like Reimbursement of Power Consumption Charges @ Rs. 1.00 per unit for 5 years for Fish & Shrimp Processing Units and other incentives for establishing shrimp processing units in the State ofAP. ▪ GST Refund, duty drawback @ 2.7% on FOB value and RoDTEP @ 2.5% 27 Consolidated Annual Financial Highlights Revenue (Rs.Cr.) EBITDA (Rs. Cr.) / Margin(%) PAT (Rs. Cr.) / Margin(%) 29 Consolidated Annual Financial Highlights – FY21 Rs.Cr. FY18 FY19 FY20 FY21 Revenue fromOperation 613.65 600.75 604.28 473.48 Cost of MaterialConsumed 576.21 455.57 437.92 351.04 Changes in Inventory -28.99 -36.04 9.96 -8.06 Employee Expenses 12.97 16.28 14.67 14.16 OtherExpenses 6.06 105.98 101.73 90.84 TotalExpenditure 566.25 541.79 564.29 447.98 EBITDA 47.39 58.96 39.99 25.50 EBITDA Margin 7.72% 9.81% 6.62% 5.39% OtherIncome 3.83 16.15 14.81 8.46 Depreciation 3.11 3.36 3.32 3.53 Interest / FinanceCost 10.35 10.24 6.85 4.30 PBT 37.77 61.50 44.63 26.13 Tax 13.88 23.67 10.55 7.72 PAT 23.89 37.84 34.08 18.41 PATMargin 3.89% 6.30% 5.64% 3.89% Add: Items that will not be reclassified to PL 0.56 0.11 -0.31 0.37 Less: Items that will be reclassified to PL -0.65 0.19 -0.40 0.70 NetProfit 23.80 37.54 33.38 18.75 Net ProfitMargin 3.88% 6.25% 5.52% 3.96% EPS inRs. 23.40 37.21 33.51 17.24 30 Consolidated Balance Sheet Highlights – FY21 Rs.Cr. FY18 FY19 FY20 FY21 ShareholdersFunds 76.39 113.49 143.19 175.77 ShareCapital 2.54 10.17 10.17 10.68 R&S 73.85 103.32 133.02 165.09 Non CurrentLiabilities 7.08 4.84 3.01 19.72 Long TermBorrowing 1.91 0.37 0.21 15.44 TradePayables 2.87 1.86 0.00 0.00 lease liabilities 0.00 0.00 0.05 0.48 other financialliabilities 0.00 0.12 0.13 1.17 LTProvisions 0.52 0.48 1.13 0.92 Deferred TaxLiability(net) 1.78 2.01 1.48 1.71 Other Non-Current Liabilities 0.00 0.00 0.00 0.00 CurrentLiabilities 150.52 173.00 134.40 132.40 Short termBorrowings 88.57 127.10 111.52 122.34 TradePayables 43.01 33.64 15.10 3.86 lease liabilities 0.00 0.00 0.03 0.07 Other FinancialLiabilities 1.08 6.33 4.04 2.46 Other Current Liabilities 0.74 5.83 3.64 3.52 Short termProvisions 3.26 0.11 0.06 0.16 Current TaxLiability(net) 13.85 0.00 0.00 0.00 Total Equity &Liabilities 233.99 291.33 280.59 327.90 Continued... 31 Consolidated Balance Sheet Highlights – FY21 ...Continued Rs.Cr. FY18 FY19 FY20 FY21 Non CurrentAssets 57.07 61.08 73.29 117.00 Plant, Property & Equipment 41.05 33.20 35.45 44.18 Capital Work In Progress 0.00 2.37 2.30 32.32 right of useasset 0.00 0.00 3.13 6.28 Investment property 3.91 11.04 10.95 11.77 Investments 1.41 1.41 1.41 2.18 TradeReceivables 0.00 0.00 0.00 0.00 Loans 2.14 1.83 1.11 1.29 Other financialasset 7.12 8.13 12.18 6.47 Other Non-Current assets 1.44 3.09 6.75 12.50 CurrentAssets 176.92 230.25 207.30 210.90 Inventories 78.89 114.77 103.30 100.95 TradeReceivables 50.81 68.66 37.55 28.67 Cash & CashEquivalents 7.41 8.36 15.40 19.18 Bank balance other thanabove 9.79 20.50 30.63 29.45 Short term Loans &Advances 0.13 0.00 0.00 0.00 current tax asset 0.00 0.08 2.76 0.77 Other Current Assets 29.89 17.88 17.66 31.88 TotalAssets 233.99 291.33 280.59 327.90 32 Ongoing Expansions Odisha ProcessingUnit: • NewShrimpprocessingfacilityat Haridamada,Khurdha Odishais spreadacross4.28 acres • Estimatedcapexof around Rs 42crore,outof whichRs 3.97 crorehas alreadybeen incurred • Civil work of the project is expected to start in Q1 FY23 and project is expected to complete by Q1 FY24. Project is funded by Rs 22 crore of promoters contribution, Rs 20 crore of term loan (the proceeds on receipt of capital subsidyof Rs 5 crorewill beused tocleartermloan) • New facility will leverage the incentives from Odisha State Government under a scheme for establishment of Integrated coldchainand Valueadded Infrastructure • Greenfield expansion at Odisha with additional capacity of 35 MTPD will further widen the value added product basket Ethanol Plant -198KLPD: • Company has set up100% subsidiaryCoastalBiotechPvt LtdforEthanolmanufacturingat Village Maringi in ParlakhemundiTahsilin Gajapati,Odisha spreadacross30 acres • Estimated capex of around Rs 145 crore (promoters contribution is Rs 45 crore & term loan is Rs 100 crore), out of whichRs 8.20 crorehas alreadybeen incurred • Ground Breaking Ceremony (Bhoomi Pujan) has been done on 30th November 2021 and Commencement of project is expected in Q1 FY23. The Engineering, Procurement and Construction Contract is given to Excel Engineering, Pune • Singlewindow clearanceis approvedby thestate governmentand the benefitof interest subventionwillbe providedbyGovernmentof India. 34 Ethanol Sectoral Environment India’s ethanol blending target of 20% is likely to create opportunity of Rs 840 bn bio-ethanol market annually by2025 Structural changes post 2018 Rollout plan over 2026 ▪The National Policy on Bio-fuels - 2018 (NPB -2018) released in ▪The Indian government has created a roll out plan for ethanol, with June 2018 took a more realistic approach, allowing a wider range inputs from relevant ministries and associations, considering of feed stock for ethanol production (from c-molasses to b-heavy challenges in manufacturing flex fuel vehicles and infrastructure and juice and other waste such as rural-urban garbage and required for its storage and distribution cellulosic and lingo-cellulosic biomass) in line with the “waste-to- ▪It has planned availability of E10 across the country from April 2022, wealth”concept for existing vehicles, until till April 2028 ▪Feed stock that is permitted as of today includes sorghum, ▪The Ministry of Petroleum and Natural Gas (MoP&NG) will initiate a sugar-beet, cassava, decaying potatoes, damaged grain including phased rollout of 20% blending from April 2023 with the launch of maize, wheat, rice, and most importantly, crop residue such as educational campaigns for customers wheat and rice stubble ▪In 2023, the government will launch E20 in select cities of 11 states and union territories, viz. Himachal Pradesh, Uttarakhand, Uttar Pradesh, Haryana, Delhi, Goa, Daman Diu & Nagar Haveli, Karnataka, Bihar, Maharashtra, and Punjab ▪Based on the learning from these states, the government will roll-out ethanol blending acrossIndia 35 Current & Future Capacities Plate Freezer IQF Cooker MTPD MTPD MTPD Existing Capacities Unit 1 17.5 10 10 Unit 2 14 25 10 Unit 3 14 21 10.5 Upcoming Capacity Odisha 14 10.5 10.5 Total 59.5 66.5 41 36 Growth Drivers Debottleneck of existing Pre - processingUnit New Capacities in Value added segment Biofuel - EthanolProject 37 Thank You For more information, Please contact Coastal CorporationLimited 15-1-37/3, Jayaprada Apartments, Nowroji Road, Maharanipeta, Vishakhapatnam –530002. Girish G Gangawat Andhra Pradesh, India. Mobile:+91-98920-16641 Ph: +91 - 891 - 2567118 Email: investors@cleaonir.com Email: info@coastalcorp.co.in Website: www.cleaonir.com Website:www.coastalcorp.com NSE: COASTCORP | BSE: 501831 | BB Code: CTW IN INE377E01016| CIN: L63040AP1981PLC003047 38