Advanced Enzyme Technologies Ltd · NSE:ADVENZYMES
Advanced Enzyme Technologies — Q3 FY23 Earnings Presentation
34 slides from Advanced Enzyme Technologies's earnings presentation, Feb 11, 2023
Slide 1: Exchange filing cover letter: Earnings Presentation
February 11, 2023 BSE Limited National Stock Exchange of India Limited P. J. Towers, Exchange Plaza, Plot No. C/1, Dalal Street, G Block, Bandra-Kurla Complex, Mumbai- 400 001 Bandra (E) Mumbai- 400 051 Scrip Code-540025 Trading Symbol-ADVENZYMES Subject: Earnings Presentation Ref: ISIN: INE837H0102
Slide 2: Advanced Enzyme Technologies Limited Earnings Presentation
Advanced Enzyme Technologies Limited Earnings Presentation | February 2023
Slide 3: Safe Harbour Statement
Safe Harbour Statement This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Forward-looking statements are other than statements of historical facts. The words “believe,” “expect,” “an
Slide 4: Table of Content
Table of Content Result Summary Q3 FY23 04 Segmental Performance 07 Geographical Performance 11 Result Summary FY22 14 Unique Investment Case 26 Focus Area Going Ahead 31 Shareholders’ Information 32
Slide 5: Results Summary – Q3 FY23 (Consolidated) Q-o-Q
Results Summary – Q3 FY23 (Consolidated) Q-o-Q *Revenue (₹ mn) EBITDA (₹ mn.) PAT (₹ mn) 1,387 1,421 417 279 397 263 Q2 FY23 Q3 FY23 Q2 FY23 Q3 FY23 Q2 FY23 Q3 FY23 • Revenue grew by 02% on Q-o-Q basis to ₹ 1,421 million in Q3 FY23 from ₹ 1,387 million in Q2 FY23 • EBITDA grew by 05% to ₹ 417 millio
Slide 6: Results Summary – Q3 FY23 (Consolidated) Y-o-Y
Results Summary – Q3 FY23 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 491 02% 1,421 1,336 417 286 279 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 • Revenue grew by 06% on y-o-y basis to ₹ 1,421 million in Q3 FY23 from ₹ 1,336 million in Q3 FY22 • EBITDA de-grew by 15% to ₹ 417
Slide 7: Results Summary – 9M FY23 (Consolidated) Y-o-Y
Results Summary – 9M FY23 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 01% 3,976 4,019 1,611 985 1,123 718 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 • Revenue grew by 01% on y-o-y basis to ₹ 4,019 million in 9M FY23 from ₹ 3,976 million in the 9M FY22 • EBITDA de-grew by 30% t
Slide 8: Human Nutrition
Human Nutrition (₹ in Million) Q3 FY23 Commentary: • The human nutrition segment contributed around 66% +02% Q3 FY23 934 during the quarter to the total revenue from operations Q3 FY22 918 66% • This segment grew by 02% during the quarter from ₹ 918 of Sales million in Q3 FY22 to ₹ 934 million in Q3
Slide 9: Animal Nutrition
Animal Nutrition (₹ in Million) Q3 FY23 Commentary: • The Animal nutrition segment contributed about 12% +33% Q3 FY23 175 during the quarter to the total revenue from operations Q3 FY22 132 12% • This segment grew by 33% on y-o-y basis to ₹ 175 million of Sales in Q3 FY23 as against ₹ 132 million in
Slide 10: Industrial Bio-Processing
Industrial Bio-Processing (₹ in Million) +41% +25% Q3 FY23 226 9M FY23 602 Q3 FY22 160 9M FY22 481 226 Q3 FY23 197 203 193 183 188 183 160 118 160 mn 66 mn Food Non-Food 11% 05% Q3 FY21 Commentary: Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 16% • The Industrial Bio-Processing se
Slide 11: Specialized Manufacturing
Specialized Manufacturing (₹ in Million) Q3 FY23 Commentary: • This segment contributed about 06% during the quarter to the total revenue from operations which was 09% -31% Q3 FY23 86 during the same quarter last year Q3 FY22 125 06% • This segment underperformed by 31% on y-o-y basis to of Sales ₹
Slide 12: Geographical Performance
Geographical Performance (₹ in Million) India Americas Europe Asia* Rest of the World 42% 38% 07% 10% 03% Q3 FY23 +04% -04% +23% +61% +32% Q3 FY23 593 Q3 FY23 543 Q3 FY23 97 Q3 FY23 146 Q3 FY23 42 Q3 FY22 571 Q3 FY22 563 Q3 FY22 79 Q3 FY22 91 Q3 FY22 32 45% 38% 06% 09% 02% 9M FY23 +03% -05% +02% +31
Slide 13: Profit & Loss (Consolidated) – Q3 FY23
Profit & Loss (Consolidated) – Q3 FY23 (₹ in Million) Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 Particulars Y-o-Y (%) Y-o-Y (%) Un-Audited Un-Audited Un-Audited Un-Audited Un-Audited Income from Operations 1,421 1,387 1,336 6% 4,019 3,976 1% Expenses 1,096 1,078 933 17% 3,162 2,624 21% Profit from Ope
Slide 14: Balance Sheet (Consolidated) – 9M FY23
Balance Sheet (Consolidated ) – 9M FY23 (₹ in Million) 9M FY23 9M FY22 9M FY21 Particulars Un-Audited Un-Audited Un-Audited Assets Property, plant and equipment 2,723 2,370 1,993 Capital work-in-progress 104 139 143 Intangible assets 564 626 575 Goodwill 3,208 2,908 2,884 Other non-current assets 35
Slide 15: Results Summary – FY22 (Consolidated) Y-o-Y
Results Summary – FY22 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 5,294 2,316 5,018 1,513 2,014 1,238 FY21 FY22 FY21 FY22 FY21 FY22 Animal HC Human HC Bio Processing Specialized Manufacturing 18% 05% 01% 492% FY22 560 FY22 3,594 FY22 669 FY22 470 FY21 475 FY21 3,786 FY21 678 FY21
Slide 16: Revenue Split – FY22 vs. FY21
Revenue Split – FY22 vs. FY21 FY22 FY21* 2% 9% 14% 13% Human HC Human HC 9% Product Product Animal HC Animal HC 10% Category-wise (%) Category-wise (%) Bio-Processing Bio-Processing 68% Specialized 75% Specialized Manufacturing Manufacturing 3% 2% 7% 4% 6% 6% India India 44% USA USA Geographical Geo
Slide 17: Strong Financial Performance – FY22
Strong Financial Performance – FY22 (₹ in Million) Revenue from Operations EBIDTA & EBIDTA Margin (%) 5,294 46% 46% 5,018 2,500 42% 43% 50% 4,196 4,440 38% 45% 3,957 2,000 40% 35% CAGR 1,500 30% CAGR 7.55% 5.05% 25% 1,000 20% 15% 500 10% 1,654 1,819 2,023 2,316 2,014 5% 0 0% FY 18 FY 19 FY 20 FY 21
Slide 18: Strong Financial Performance – FY22
Strong Financial Performance – FY22 Net Working Capital (Days) Net Worth (₹ mn) 132 10,886 116 120 108 9,709 105 8,397 6,788 5,591 FY 18 FY 19 FY 20 FY 21 FY 22 FY 18 FY 19 FY 20 FY 21 FY 22 ROE (%) & ROCE (%) Net Debt to Equity (x) 25.47% 0.12 24.00% 22.44% 21.94% 15.93% 18.29% 18.72% 17.52% 0.05 1
Slide 19: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (₹ in Million) FY22 FY21 FY20 Particulars Audited Audited Audited Assets Property, plant and equipment 2,622 2,462 2,096 Capital work-in-progress 151 102 101 Intangible assets 609 693 592 Goodwill 2,961 2,887 2,941 Other non-current assets 289 258 251 Current assets 6,04
Slide 20: Annexure
Annexure Earnings Presentation | Q3 FY23 19
Slide 21: Company Overview
Company Overview Advanced Enzymes is a research driven company with global leadership in the manufacturing of enzymes and probiotics. We are committed to providing eco-safe solutions to a wide variety of industries like human health care and nutrition, animal nutrition, baking, fruit & vegetable pro
Slide 22: Advanced Enzyme Technologies Limited – A Rising Global Star
Advanced Enzyme Technologies Limited – A Rising Global Star 9 Manufacturing Units India - 7 USA - 2 7 R&D Units India – 5 | USA – 1 | Germany –1 68+ 400+ 700+ 45+ 850+ Enzymes Proprietary Customers Countries Employees & Probiotics Products Worldwide Worldwide Presence 1st Indian enzyme company 2nd H
Slide 23: Brief History and Evolution
Brief History and Evolution 1985 Cal-India Foods International (doing business as Specialty Enzymes and Probiotics), promoted by Mr. Vasant Rathi 2004 and incorporated on March 25, Advanced Biochemicals 1985 in the United States of ranked as the largest 2017 2014 2021 domestic manufacturer of 2011 •
Slide 24: Board of Directors
Board of Directors Mr. Vasant Rathi Mr. Mukund M. Kabra Mr. Kedar Desai Mr. Rajesh Sharma Promoter Chairman and Non-Executive Director Whole-time Director Independent Director Independent Director Mr. Pramod Kasat Ms. Rasika Rathi Mr. Vinod Jajoo Mr. Sunny Sharma Independent Director Non-Executive D
Slide 25: Management Team
Management Team Mr. Beni Prasad Rauka Mr. Dipak Roda Mr. Harshad Doshi Ms. Martina Doering Chief Financial Officer Vice President / Market & Business CFO & COO - Advanced Enzymes, USA Managing Director /Head Of Business Development Development - evoxx Technologies, Germany Ms. Rasika Rathi Dr. Micha
Slide 26: How Big is the Opportunity?
How Big is the Opportunity? Global Probiotics Market Global Enzymes Market $4Bn 9% Grow at a $10.2Bn $4.55Bn CAGR 3.5% $6Bn till 2025 13% $38Bn 78% $48Bn $3.57Bn Grow at a CAGR 7.4% till 2025 Animal Feed Dietary Supplements Functional Food & Beverages $1.02Bn $300Mn $60Mn Competitive Scenario in the
Slide 27: What Makes AETL a Unique Investment Case?
What Makes AETL a Unique Investment Case? Specialized Business Inherent Diversification in the with High Entry Barriers Business Model Strong Research & Significant Focus on International Development Capabilities Markets & Brand Building UNIQUE INVESTMENT CASE Integrated Player with Presence Strong
Slide 28: Integrated Player with Presence Across the Enzyme Value Chain
Integrated Player with Presence Across the Enzyme Value Chain Research & Development Manufacturing Marketing & Distribution Earnings Presentation | Q3 FY23 27
Slide 29: What we are Aiming in the Opportunity?
What we are Aiming in the Opportunity? Addressable market for AETL over next 5 AETL’s Current Share of Revenue Focus Area Opportunity Size years** FY22 FY21 Human Nutrition $ 400 mn $ 200 mn $ 41 mn, 58% $ 39 mn, 57% Bio-catalysis $ 60 mn $ 30 mn* $ 2.5 mn, 4% $ 2.2 mn, 3% Baking $ 300 mn $ 30 mn $
Slide 30: Specialized Business With High Entry Barriers
Specialized Business With High Entry Barriers Global Competitiveness Technocrat Amongst the Lowest Cost Promoters Manufacturers in the World Cumulative experience of 7+ (Benchmarked both in terms of decades in the global enzyme Capex & Opex) industry Sustained Research Diverse Product Range & & Deve
Slide 31: Future Growth Drivers
Future Growth Drivers o Increased focus on high return applications where AETL has strategic advantages o Build Strategic Partnerships in Key Markets for Focus Segments Continued Investment in Inorganic R&D Expansion Broaden & Deepen Geographical Presence o Acquisition of Key Technologies, o Identif
Slide 32: Focus Areas Going Ahead
Focus Areas Going Ahead Animal Nutrition Probiotics Bio-Catalysis Baking Continuing conduct trials and studies To introduce more probiotics products Developing bio catalysis for API In Bio-processing division, our focus is to bring newer and effective nutritional in Human Nutrition for the immunity
Slide 33: Shareholders’ Information
Shareholders’ Information Stock Data (As on 10th Feb 2023) Top 5 Institutional Holders (As on 03th Feb 2023) Institutions OS (%) Market Capitalization (₹) 31,042 mn ORBIMED ASIA III MAURITIUS 12.09 Shares Outstanding 111.72 mn NALANDA INDIA EQUITY FUND 8.91 HDFC AMC 4.21 Free Float 11,292 mn ICICI P
Slide 34: Thank You
Thank You Advanced Enzyme Technologies Limited Address: 5th Floor, 'A' wing, Sun Magnetica LIC Service Road, Louiswadi, Thane (W) 400 604, India Tel: +91-22-4170 3200 Fax: + 91-22-25835159 Web: www.advancedenzymes.com CIN No: L24200MH1989PLC051018 Investor Relations Contact: Ronak Saraf Manager - In
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