33 slides from Advanced Enzyme Technologies's earnings presentation, Feb 10, 2024
Slide 1: Stock exchange cover letter for earnings presentation
February 10, 2024 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: Earnings Presentation February 2024
Earnings Presentation February 2024
Slide 3: Forward-looking statements disclaimer
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,” “anticipate,” “intend,” “e
Slide 4: Result Summary Q3 FY24 contents
1 2 3 Result Summary Segmental Geographical Q3 FY24 Performance Performance 4 5 6 Result Summary Unique Investment Focus Area Going FY23 Case Ahead 7 Shareholders’ Information
Slide 5: Q3 FY24 Result Summary: Revenue, EBITDA, PAT year-on-year
Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 1,609 538 425 1,421 417 279 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 • Revenue grew by 13% on y-o-y basis to ₹ 1,609 million in the Q3 FY24 from ₹ 1,421 million in the Q3 FY23 • EBITDA grew by 29% to ₹ 538 million in the Q3 FY24 as against ₹ 417 million
Slide 6: Q3 FY24 Result Summary: quarter-on-quarter
Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 1,609 538 425 1,578 513 352 Q2 FY24 Q3 FY24 Q2 FY24 Q3 FY24 Q2 FY24 Q3 FY24 • Revenue grew by 02% on q-o-q basis to ₹ 1,609 million in the Q3 FY24 from ₹ 1,578 million in the Q2 FY24 • EBITDA grew by 05% to ₹ 538 million in the Q3 FY24 as against ₹ 513 million
Slide 7: 9M FY24 Result Summary
Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 4,661 1,491 1,071 4,019 1,123 718 9M FY23 9M FY24 9M FY23 9M FY24 9M FY23 9M FY24 • Revenue grew by 16% on y-o-y basis to ₹ 4,661 million in the 9M FY24 from ₹ 4,019 million in the 9M FY23 • EBITDA grew by 33% to ₹ 1,491 million in the 9M FY24 as against ₹ 1,1
Slide 8: Human Nutrition segment performance
(₹ in Million) Q3 FY24 9M FY24 1,107 1,059 939 994 918 934 865 877 807 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 of Sales of Sales Q3 FY24 1,107 9M FY24 3,161 Q3 FY23 934 9M FY23 2,679 Commentary: Commentary: • The human nutrition segment contributed • The human nutriti
Slide 9: Animal Nutrition segment performance
(₹ in Million) Q3 FY24 9M FY24 206 172 175 173 162 152 156 158 132 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 of Sales of Sales Q3 FY24 162 9M FY24 492 Q3 FY23 175 9M FY23 504 Commentary: Commentary: • The animal nutrition segment contributed • The animal nutrition segme
Slide 10: Industrial Bio-Processing segment performance
(₹ in Million) Q3 FY24 9M FY24 226 224 243 236 579 mn 125 mn 43 mn 188 183 193 192 193 mn Food 160 Non-Food Non-Food Food 12% 03% 12% 03% 15% of Sales 15% of Sales Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q3 FY24 236 9M FY24 704 Q3 FY23 226 9M FY23 602 Commentary: Comm
Slide 11: Specialized Manufacturing segment performance
(₹ in Million) Q3 FY24 9M FY24 125 113 113 97 103 104 83 86 65 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 of Sales of Sales Q3 FY24 104 9M FY24 304 Q3 FY23 86 9M FY23 234 Commentary: Commentary: • This segment contributed about 6% during • This segment contributed about
Slide 12: Geographical performance
(₹ in Million) Q3 FY24 9M FY24 48% Q3 FY24 767 9M FY24 2,332 +29% Q3 FY23 593 +29% 9M FY23 1,805 39% Q3 FY24 623 9M FY24 1,560 +15% Q3 FY23 543 +03% 9M FY23 1,516 07% Q3 FY24 113 9M FY24 262 +16% Q3 FY23 97 +04% 9M FY23 251 05% Q3 FY24 82 9M FY24 336 -44% Q3 FY23 146 -08% 9M FY23 367 01% Q3 FY24 24
Slide 13: Consolidated profit and loss statement
(₹ in Million) Q3 FY24 Q2 FY24 Q3 FY23 Y-o-Y Q-o-Q 9M FY24 9M FY23 Particulars Y-o-Y (%) Un-Audited Un-Audited Un-Audited (%) (%) Un-Audited Un-Audited Income from Operations 1,609 1,578 1,421 13% 2% 4,661 4,019 16% Expenses 1,157 1,153 1,096 6% 0% 3,430 3,162 8% Profit from Operations before Other
Slide 14: FY23 Result Summary: Revenue, EBITDA, PAT
(₹ in Million) Revenue* (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 02% 5,294 5,406 2,014 1,238 1,039 1,564 FY22 FY23 FY22 FY23 FY22 FY23 01% 27% 19% 26% FY22 3,594 FY22 560 FY22 669 FY22 470 *Notes: 1. On Consolidated Basis 2. PAT is before minority 3. Ind AS adjustments are carried out on account of commissio
Slide 15: Product category and geographical revenue split
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% Geographical 47% Europe Geographical Europe Re
Slide 16: Five-year financial trends
(₹ 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 22 FY 23 FY 19 FY 20 FY 21 FY 22 FY 23
Slide 17: Net working capital, net worth, ROE and ROCE
Net Working Capital (Days) Net Worth (₹ mn) 135 12,351 132 120 10,886 115 9,709 105 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 0.02 16.71% 0.01 0.01 12.02% 8.94% FY 19 FY
Slide 18: Consolidated balance sheet
(₹ 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 7,221 6,044 5,160 Total Assets 14
Slide 19: Earnings Presentation
18 Earnings Presentation | February 2024
Slide 20: About Advanced Enzymes: mission and vision
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 Mission Vision health care and nutrition, animal nutrition, baking, fruit & vegetable proce
Slide 21: Company facts and figures
Manufacturing Units R&D Units Indian enzyme Highest market share Listed integrated India - 7 USA - 2 India – 5 | USA – 1 | company in India enzyme player globally Germany –1 Enzymes Proprietary Customers Countries Employees & Probiotics Products Worldwide Worldwide Presence Patents Food Enzyme GRAS
Slide 22: Company journey and milestones
• Acquired 50% stake in SaiGanesh Enzytech Solutions Advanced Biochemicals • Acquired an additional ranked as the largest • Acquired 100% stake in evoxx technologies stake of 4.83% in J C domestic manufacturer Acquired 51% stake in Biotech 1st fermentation facility of Industrial Enzymes. Takeover of
Slide 23: Board of Directors
Promoter Chairman and Non-Executive Director Whole-time Director Independent Director Independent Director Non-Executive Director Independent Director Non-Executive Director Independent Director Independent Director Independent Director *w.e.f July 01, 2023 22 Earnings Presentation | February 2024
Slide 24: Key management personnel
Chief Financial Officer Vice President / Market & Business CFO & COO - Advanced Enzymes, USA Managing Director /Head Of Business Development Development - evoxx Technologies, Germany General Counsel / Vice President Managing Director /Head Of Research and Company Secretary & Head Legal And Secretary
Slide 25: Global probiotics and enzymes markets and competition
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 $60Mn Global Enzymes and Probioti
Slide 26: Unique Investment Case
UNIQUE INVESTMENT CASE 25 Earnings Presentation | February 2024
Slide 27: Research & Development, Manufacturing, Marketing & Distribution
Research & Manufacturing Marketing & Development Distribution 26 Earnings Presentation | February 2024
Slide 28: Focus areas, opportunity size and share of revenue
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 mn $ 7.4 mn, 11% $ 6.9 mn#, 10% Animal N
Slide 29: Unique investment case strengths
Amongst the Lowest Cost Cumulative experience of 7+ decades Manufacturers in the World in the global enzyme industry (Benchmarked both in terms of Capex & Opex) Consistent Investment into R&D over 400+ Products, 700+ Customers the past 15+ years Worldwide Specialized technical expertise in Presence
Slide 30: Growth strategy
o Acquisition of Key Technologies, Competencies & Skill-sets which o Increased focus on Enable high return Consolidation applications where and/or Entry into AETL has strategic New Market o Identify Product advantages Segments gaps and Develop new Enzymes, o Build Strategic Probiotics & o Acquisitio
Slide 31: Focus areas going ahead: Animal Nutrition, Probiotics, Bio-Catalysis
• 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 and marketing team in USA
Slide 32: Shareholders' information: stock data and holders
Stock Data (As on 09th Feb 2024) Top 5 Institutional Holders (As on 04nd Feb 2024) Institutions OS (%) Market Capitalization (₹) 42,717 mn ORBIMED ASIA* 12.08 NALANDA INDIA EQUITY FUND 8.91 Shares Outstanding 111.82 mn HDFC AMC 3.67 ICICI PRUDENTIAL MF 1.77 Free Float 39.48% Clarus Capital I 1.06 *N
Slide 33: Contact details
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 Contact: Mr. Ronak Saraf Manager – Investor Relations ir@advancedenzymes.com