34 slides from Advanced Enzyme Technologies's earnings presentation, Nov 11, 2022
Slide 1: Exchange filing cover letter: Earnings Presentation
Date: November 11, 2022 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: INE83
Slide 2: Advanced Enzyme Technologies Earnings Presentation November 2022
^ clvancecl enzymes ADVANCED Where ENZYME is Life ENZYME TECHNOLOGIES LIMITED Earnings Presentation November 2022
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 Q2 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 – Q2 FY23 (Consolidated) Q-o-Q
Results Summary – Q2 FY23 (Consolidated) Q-o-Q *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) A 5% 28% 397 1,387 A9% 263 1,211 309 176 T 1 Q1 FY23 Q2 FY23 Q1 FY23 Q2 FY23 Q1 FY23 Q2 FY23 • Revenue grew by 15% on Q-o-Q basis to ₹ 1,387 million in the Q2 FY23 from ₹ 1,211 million in the Q1 FY23 • EBITDA gre
Slide 6: Results Summary – Q2 FY23 (Consolidated) Y-o-Y
Results Summary – Q2 FY23 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 09% 1,387 493 13 % 1,271 303 397 263 T T Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 • Revenue grew by 09% on y-o-y basis to ₹ 1,387 million in the Q2 FY23 from ₹ 1,271 million in the Q2 FY22 • EBITDA de-grew
Slide 7: Results Summary – H1 FY23 (Consolidated) Y-o-Y
Results Summary – H1 FY23 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 02 % 2,641 2,598 1,120 700 706 438 T 1 r T H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 • Revenue de-grew by 02% on y-o-y basis to ₹ 2,598 million in the H1 FY23 from ₹ 2,641 million in the H1 FY22 • EBITDA de
Slide 8: Human Nutrition
Human Nutrition (₹ in Million) Q2 FY23 Commentary: • The human nutrition segment contributed around 68% +02% Q2 FY23 939 during the quarter in the total revenue from operations Q2 FY22 920 68% • This segment grew by 02% during the quarter from ₹ 920 of Sales million in Q2 FY22 to ₹ 939 million in Q2
Slide 9: Animal Nutrition
Animal Nutrition (₹ in Million) Q2 FY23 Commentary: • The Animal nutrition segment contributed about 12% +27% Q2 FY23 172 OOO during the quarter in the total revenue from operations Q2 FY22 136 12% • This segment grew by 27% on y-o-y basis to ₹ 172 million in of Sales Q2 FY23 as against ₹ 136 millio
Slide 10: Industrial Bio-Processing
Industrial Bio-Processing (₹ in Million) +63% +17% Q2 FY23 193 H1 FY23 376 Q2 FY22 118 H1 FY22 321 Q2 FY23 187 183 197 203 188 183 193 160 118 140 mn 53 mn Food Non-Food 10% 4% Q2 FY21 Commentary: Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 14% • The Industrial Bio-Processing seg
Slide 11: Specialized Manufacturing
Specialized Manufacturing (₹ in Million) Q2 FY23 Commentary: • This segment contributed about 06% during the quarter in the total revenue from operations which was 08% -14% Q2 FY23 83 during the same quarter last year Q2 FY22 97 06% • This segment underperformed by 14% on y-o-y basis to of Sales ₹ 8
Slide 12: Geographical Performance
Geographical Performance (₹ in Million) India Americas Europe Asia* Rest of the World 48% 37% 06% 07% 02% Q2 FY23 +11% +01% +54% -14% +939% Q2 FY23 662 Q2 FY23 517 Q2 FY23 82 Q2 FY23 94 Q2 FY23 32 Q2 FY22 594 Q2 FY22 511 Q2 FY22 53 Q2 FY22 109 Q2 FY22 03 47% 37% 06% 08% 02% H1 FY23 +03% -06% -08% +1
Slide 13: Profit & Loss (Consolidated) – Q2 FY23
Profit & Loss (Consolidated) – Q2 FY23 (₹ in Million) Q2 FY23 Q1 FY23 Q2 FY22 H1 FY23 H1 FY22 Particulars Y-o-Y (%) Y-o-Y (%) Un-Audited Un-Audited Un-Audited Un-Audited Un-Audited Income from Operations 1,387 1,211 1,271 09% 2,598 2,641 -2% Expenses 1,078 988 864 25% 2,067 1,691 22% Profit from Ope
Slide 14: Balance Sheet (Consolidated) - H1 FY23
Balance Sheet (Consolidated ) - H1 FY23 (₹ in Million) H1 FY23 H1 FY22 H1 FY21 Particulars Un-Audited Un-Audited Un-Audited Assets Property, plant and equipment 2,623 2,407 2,017 Capital work-in-progress 213 101 138 Intangible assets 559 653 577 Goodwill 3,141 2,913 2,899 Other non-current assets 32
Slide 15: Results Summary – FY22 (Consolidated) Y-o-Y
Results Summary – FY22 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 6% 13 % 18 % 5,294 2,316 5,018 1,513 2,014 1,238 FY21 FY22 FY21 FY22 FY21 FY22 4 Animal HC Human HC ib- Bio Processing Specialized Manufacturing 18% 05% ¥ 01% ¥ 492% FY22 560 FY22 3,594 FY22 669 FY22 470 FY21 475 FY
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 r T T i 0% FY 18 FY 19 FY 2
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 FY 18 FY 19 FY 20 ROE (%) & ROCE (%) FY 21 FY 22 u 5,591 FY 18 6,788 FY 19 FY 20 Net Debt to Equity (x) FY 21 FY 22 25.47% 0.12 24.00% 22.44% 21.94% 15.93% 18.29% 18.72% 17.52% 0.05
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 | Q2 FY23 19 ^ Mancpci en7 i /mPQ Where ENZYME is Life
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 Q 1 ©• R&D Units India – 5 | USA – 1 | Germany –1 68+ 400+ 700+ 45+ 750+ Enzymes Proprietary Customers Countries Employees & Probiotics Products Worldwide Worldwide Presence © 1st Indian enzyme comp
Slide 23: Brief History and Evolution
Brief History and Evolution 2004 Advanced Biochemicals 2017 2021 ranked as the largest 2011 • Acquired 100% stake in Acquired 51% stake in domestic manufacturer of Takeover of Cal-India 2014 evoxx technologies 1994 SciTech Specialities Industrial Enzymes. Foods International – 1st food enzyme GmbH,
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 Ill Mr. Pramod Kasat Ms. Rasika Rathi Mr. Vinod Jajoo Mr. Sunny Sharma Independent Director Non-Executi
Slide 25: Management Team
Management Team o 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 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 & advanced enzymes F„=D Significant Focus on International Development Capabilities oj Where ENZYME is Life Markets & Brand Building ] UNIQUE INVESTM
Slide 28: Integrated Player with Presence Across the Enzyme Value Chain
Integrated Player with Presence Across the Enzyme Value Chain % ^ 0,, 0 * ocA ' tv „ / s? <T c? , Co ' Research & Development Manufacturing Marketing & Distribution w- v%o. <* C5 V V* c ^ . % ° oV e6 & co< Earnings Presentation | Q2 FY23 27 ^ Mancecl enzymes Where ENZYME is Life
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 & c & De
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 Nov 2022) Top 5 Institutional Holders (As on 04th Nov 2022) % Institutions OS (%) Market Capitalization (₹) 32,647 mn ORBIMED ASIA III MAURITIUS 12.09 Shares Outstanding 111.72 mn NALANDA INDIA EQUITY FUND 8.91 HDFC AMC 4.21 Free Float 11,115 mn ICICI
Slide 34: Thank You
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