Advanced Enzyme Technologies Ltd · NSE:ADVENZYMES
Advanced Enzyme Technologies — Q2 FY24 Earnings Presentation
34 slides from Advanced Enzyme Technologies's earnings presentation, Nov 7, 2023
Slide 1: Exchange filing cover letter: Earnings Presentation
^ cfranced enzymes Where ENZYME is Life Advanced Enzyme Technologies Ltd. CIN: L24200 MH1989PLC051018 Sun Magnetics, A' wing, 5th Floor, UC Service Road, Louiswadi, Thane ( W )-400 604, India Tel: + 91-22-4170 3200, Fax: + 91 -22- 2583 5159 Email: info@advancedenzymes.com, www.advancedenzymes.com No
Slide 2: Earnings Presentation November 2023
^^ ancedenzvtmes ENZYME is Life Advanced Enzyme \ Technologies Limited Earnings Presentation November 2023
Slide 3: Safe Harbour Statement
I 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,” “
Slide 4: Content
Content 1 2 3 Result Summary Segmental Geographical Q2 FY24 Performance Performance Page: 04 Page: 07 Page: 11 4 5 6 Result Summary Unique Investment Focus Area Going FY23 Case Ahead Page: 14 Page: 26 Page: 31 7 Shareholders’ Information Page: 32
Slide 5: Results Summary - Q2 FY24 (Consolidated) Y-o-Y
^ Results Summary - Q 2 FY24 (Consolidated) Y-o-Y Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 1,578 513 352 1,387 397 263 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 • Revenue grew by 14% on y-o-y basis to ₹ 1,578 million in the Q2 FY24 from ₹ 1,387 million in the Q2 FY23 • EBITDA grew by 29% to ₹ 5
Slide 6: Results Summary - Q2 FY24 (Consolidated) Q-o-Q
^ Results Summary - Q 2 FY24 (Consolidated) Q-o-Q Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 1,578 513 352 1,473 440 294 Q1 FY24 Q2 FY24 Q1 FY24 Q2 FY24 Q1 FY24 Q2 FY24 • Revenue grew by 7% on q-o-q basis to ₹ 1,578 million in the Q2 FY24 from ₹ 1,473 million in the Q1 FY24 • EBITDA grew by 17% to ₹ 51
Slide 7: Results Summary - H1 FY24 (Consolidated) Y-o-Y
^ Results Summary - HI FY24 (Consolidated) Y-o- Y Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 3,051 953 646 2,598 706 438 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 • Revenue grew by 17% on y-o-y basis to ₹ 3,051 million in the H1 FY24 from ₹ 2,598 million in the H1 FY23 • EBITDA grew by 35% to ₹ 9
Slide 8: Human Nutrition
^ Human Nutrition Q2 FY24 H1 FY24 (₹ in Million) 920 918 939 934 994 1,059 865 877 807 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 of Sales of Sales Q2 FY24 1,059 H1 FY24 2,054 Q2 FY23 939 +13% H1 FY23 1,745 +18% Commentary: Commentary: • The human nutrition segment contr
Slide 9: Animal Nutrition
^ Animal Nutrition Q2 FY24 H1 FY24 (₹ in Million) 206 172 175 173 152 156 158 136 132 4 11 % 4 11 % Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 of Sales of Sales Q2 FY24 173 H1 FY24 331 Q2 FY23 172 +0.2% H1 FY23 329 +01% Commentary: Commentary: • The animal nutrition segm
Slide 10: Industrial Bio-Processing
^ Industrial Bio- Processing Q2 FY24 H1 FY24 (₹ in Million) 243 386 mn 226 224 80 mn 193 42 mn 188 183 192 201 mn Food 160 Non-Food Non-Food Food 12% 03% 118 12% 03% 15% of Sales 15% of Sales Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY24 243 H1 FY24 466 Q2 FY23 193
Slide 11: Specialized Manufacturing
^ Specialized Manufacturing Q2 FY24 H1 FY24 (₹ in Million) 125 113 113 103 97 97 86 I 83 65 o° § o § 07% 07% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 of Sales of Sales Q2 FY24 103 H1 FY24 200 Q2 FY23 83 + 24% H1 FY23 148 +36% Commentary: Commentary: • This segment cont
Slide 12: Geographical Performance
I Geographical Performance (₹ in Million) Q2 FY24 H1 FY24 ¥ India 52% +25% Q2 FY24 Q2 FY23 828 662 51% +29% H1 FY24 H1 FY23 1,565 1,212 ir Americas 30% -09% Q2 FY24 Q2 FY23 470 517 31% -04% H1 FY24 H1 FY23 937 973 05% Q2 FY24 83 H1 FY24 149 Europe +02% Q2 FY23 82 05% -03% H1 FY23 154 09% Q2 FY24 135
Slide 13: Profit & Loss (Consolidated) - Q2 FY24 & H1 FY24
^ Profit & Loss (Consolidated) - Q 2 FY24 & HI FY24 Particulars Q2 FY24 Un-Audited Q1 FY24 Un-Audited Q2 FY23 Un-Audited Y-o-Y (%) Q-o-Q (%) H1 FY24 Un-Audited H1 FY23 Un-Audited (₹ in Million) Y-o-Y (%) Income from Operations 1,578 1,473 1,387 14% 7% 3,051 2,598 17% Expenses 1,153 1,119 1,078 7% 3%
Slide 14: Balance Sheet (Consolidated) - H1 FY24
^ Balance Sheet (Consolidated) - HI FY24 Particulars Assets H1 FY24 Un-Audited H1 FY23 Un-Audited (₹ in Million) H1 FY22 Un-Audited Property, plant and equipment 2,734 2,623 2,407 Capital work-in-progress 220 213 101 Intangible assets 512 559 653 Goodwill 3,235 3,141 2,913 Other non-current assets 3
Slide 15: Result Summary - FY23 (Consolidated) Y-o-Y
^ Result summary-FY23 (Consolidated) Y-o- Y Revenue* (₹ mn) EBITDA (₹ mn) PAT (₹ mn) (₹ in Million) 02% 16 % I 5,294 5,406 2,014 1,238 I I 1,039 1,564 FY22 FY23 FY22 FY23 FY22 FY23 @0 0 ^ 0 Specialized Human HC Animal HC Bio Processing Manufacturing FY 23 3,556 FY 23 01% FY 23 709 27% 794 19% FY 23
Slide 16: Revenue Split - FY23 vs. FY22
^ Revenue Split - FY23 vs. FY 22 FY23 FY 22 6% 9% 15% Human HC 13% Human HC Animal HC Animal HC Product Product 13% 10% Category-wise (%) Bio-Processing Category-wise (%) Bio-Processing 66% 68% Specialized Specialised Manufacturing Manufacturing 2% 3% 9% 7% 7% India 6% India Americas Americas 44% Ge
Slide 17: Strong Financial Performance - FY23
I Strong Financial Performance - FY23 (₹ in Million) Revenue from Operations EBIDTA & EBIDTA Margin (%) 5,294 5,406 46% 46% 5,018 2,500 43% 50% 4,440 38% 45% 4,196 2,000 40% 29% 35% CAGR 1,500 30% CAGR 6.54% -3.71% 25% 1,000 20% 15% 500 10% 1,819 2,023 2,316 2,014 1,564 5% 0 0% FY 19 FY 20 FY 21 FY
Slide 18: Strong Financial Performance - FY23
I Strong Financial Performance - FY23 Net Working Capital (Days) Net Worth (₹ mn) 135 12,351 132 L 10,886 L 115 120 105 9,709 8,397 6,788 FY 19 FY 20 FY 21 FY 22 FY 23 FY 19 FY 20 FY 21 FY 22 FY 23 ROE (%) & ROCE (%) Net Debt to Equity (x) 24.00% 0.05 22.44% 21.94% 15.93% 18.72% 17.52% 10.34% 0.02 0
Slide 19: Balance Sheet (Consolidated)
I Balance Sheet (Consolidated) (₹ in Million) FY23 FY22 FY21 Particulars Audited Audited Audited Assets Property, plant and equipment 2,732 2,622 2,462 Capital work-in-progress 215 151 102 Intangible assets 550 609 693 Goodwill 3,209 2,961 2,887 Other non-current assets 291 289 258 Current assets 7,
Slide 20: Annexure
Annexure 19 Earnings Presentation | November 2023 ^^ . pnrprl pnpvmas
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 <H> A< S^ providing eco-safe solutions to a wide variety of industries like human Mission Vision health care and nutrition, animal nutrition, ba
Slide 22: Advanced Enzyme Technologies Limited - A Rising Global Star
^ Advanced Enzyme Technologies Limited - A Rising Global Star 2nd S’ Manufacturing Units India - 7 USA - 2 R&D Units India – 5 | USA – 1 | Germany –1 Indian enzyme company Highest market share in India Listed integrated enzyme player globally J 68+ Enzymes & Probiotics o 400+ Proprietary Products 70
Slide 23: Brief History and Evolution
^ Brief History and Evolution Advanced Biochemicals ranked as the largest • Acquired 100% stake in • Acquired 50% stake in SaiGanesh Enzytech Solutions • Acquired an additional evoxx technologies stake of 4.83% in J C domestic manufacturer Acquired 51% stake in Biotech 1st fermentation facility of I
Slide 24: Board of Directors
Board of Directors Mr . Vasant Rathi Mr . Mukund M . Kabra Mr. Kedar Desai Mr. Pramod Kasat Promoter Chairman and Non-Executive Director Whole-time Director Independent Director Independent Director Ms. Rasika Rathi Mr . Vinod Jajoo Mr. Sunny Sharma Ms. Rajshree Patel Non-Executive Director Independ
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. Mic
Slide 26: How Big is the Opportunity?
How Big is the Opportunity ? Global Probiotics Market Global Enzymes Market $4Bn Grow at 9% a CAGR 3.5% till $10.2Bn $4.55Bn 2025 $6Bn 13% $38Bn 78% $48Bn $3.57Bn Grow at a CAGR 7.4% till 2025 Animal Feed Dietary Supplements Functional Food & Beverages $1.02Bn $300Mn Competitive Scenario in the $60M
Slide 27: What Makes AETL a Unique Investment Case?
^ What Makes AETL a Unique Investment Case? @ Specialized Business with High Entry Barriers Strong Research &. Development Capabilities Integrated Player with Presence Across the Enzyme Value Chain Inherent Diversification in the Business Model Significant Focus on International Markets &, Brand Bui
Slide 28: Integrated Player with Presence Across the Enzyme Value Chain
^ Integrated Player with Presence Across the Enzyme Value Chain Research & Manufacturing Marketing & Development Distribution 27 Earnings Presentation | November 2023
Slide 29: What we are Aiming in the Opportunity?
I What we are Aiming in the Opportunity? Addressable market for AETL over next AETL’s Current Share of Revenue Focus Area Opportunity Size 5 years** FY23 FY22 Human Nutrition $ 400 mn $ 200 mn $ 38.8 mn, 58% $ 41.9 mn, 59% Bio-Catalysis $ 60 mn $ 30 mn* $ 2.9 mn, 4% $ 3.1 mn, 4% Baking $ 300 mn $ 30
Slide 30: Specialized Business With High Entry Barriers
I Specialized Business With High Entry Barriers Amongst the Lowest Cost Technocrat Cumulative experience of 7+ decades Manufacturers in the World Promoters in the global enzyme industry (Benchmarked both in terms of Capex & Opex) Sustained Research Consistent Investment into R&D over 400+ Products,
Slide 31: Future Growth Drivers
Future Growth Drivers . Broaden & Deepen o Acquisition of Key Geographical Presence Technologies, Competencies & Skill-sets which Continued o Increased focus on Enable Investment in R &.D high return Consolidation applications where and/or Entry into AETL has strategic New Market o Identify Product
Slide 32: Focus Areas Going Ahead
I Focus Areas Going Ahead • Continuing conduct trials and studies to bring newer and effective nutritional products, which may improve the efficacy of animal feeds • Registering and introducing more products in the domestic as well as in the international Animal Nutrition markets. • Expand its sales
Slide 33: Shareholders Information
I Shareholders Information Stock Data (As on 06th Nov 2023) Top 5 Institutional Holders (As on 03rd Nov 2023) Institutions OS (%) Market Capitalization (₹) 35,688 mn ORBIMED ASIA* 12.09 NALANDA INDIA EQUITY FUND 8.91 9 Shares Outstanding 111.82 mn HDFC AMC 3.47 ICICI PRUDENTIAL MF 2.24 |£ Free Float
Slide 34: Thank you
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Advanced Enzyme Technologies — Q2 FY24 Earnings Presentation on 6ix