Fermenta Biotech Ltd · NSE:FERMENTA
Fermenta Biotech — Investor Presentation (February 2020)
34 slides from Fermenta Biotech's investor presentation, Feb 19, 2020
Slide 1: Intimation of Investor Relations Presentation to BSE
Ref: F.No.:49 February 19, 2020 Corporate Relations BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001 Dear Sir, Sub.: Intimation of Investor Relations Presentation Ref: Scrip Code: 506414 Pursuant to the relevant provisions of SEBI (Listing Obligations and Disclosure Requi
Slide 2: Fermenta Biotech Ltd – Fermenting for Better Future
Fermenta Biotech Ltd Fermenting for Better Future February 2020 1
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fermenta Biotech Limited (‘FBL’ / the ‘Company’), is solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 4: Contents
Contents • Conglomerate to Concentrated • The heart of the company – Vitamin D3 • Innovation at the core – R&D, accreditations and patents • Vitamin D3 – enjoying sunshine • Transforming into a nutraceuticals company • Portfolio progression • Unlocking the value of real estate • Financials • Experie
Slide 5: Conglomerate to Concentrated
Conglomerate to Concentrated Company diversified over time into multiple unrelated business with no synergies Having realized the benefit of sticking to its core competency, it has decided to get rid of non-core businesses Will be virtually out of all non-core businesses by end-FY20 The process to u
Slide 6: Vitamin D3 – The Heart of the Company
Vitamin D3 – The Heart of the Company Complex technology process Fermenta Biotech is India’s of D3 manufacture and only Vitamin D3 obtaining CEP certification manufacturer and amongst for facilities are key barriers top 3 globally in just 15 to entry, resulting in years oligopoly globally With break
Slide 7: Applications of Vitamin D3
Applications of Vitamin D3 Pharmaceuticals Dietary & Nutritional Food Supplements Feed Animal Nutrition Rodenticides 6
Slide 8: Proprietary Technology
Proprietary Technology Knowledge Capital Over 50 years of manufacturing experience Scale Among the top three producers of Vitamin D3 API in the world A Pioneering Use of proprietary technology Natural fe Cholesterol (Raw material) used, obtained al from sheep wool from TSE/BSE risk free ve countries
Slide 9: R&D Capabilities
R&D Capabilities Pre- API Biotech formulation Development of Immobilization Process new versions of technology & improvement nutraceutical microbiology ingredients screening Development of Molecular biology Yield enhancement value-added & genetic initiatives variants of existing engineering pipeline
Slide 10: Our Accreditations
Our Accreditations US FDA CEP EDQM WHO-GMP ISO 14001:2015 ISO 9001:2015 OHSAS 18001:2007 Product-specific & Site-specific 9
Slide 11: Innovation at the Core
Innovation at the Core R&D is at the core of success of any company and Fermenta is no exception to that Unconventional approach — challenge status quo Full integration in the Vitamin D3 value chain offers a great platform. The initial product pipeline is quite exciting with a single success having
Slide 12: Patents Published
Patents Published Sr. Patent Title 1 Novel Method For Synthesizing 25-Oh Cholesterol/Calcifediol From Phytosterol 2 Irradiation Process Of Pro Vitamin D 3 Improved Photochemical Synthesis Of Vitamin D3 Using Sensitizer 4 An Improved Process To Synthesize 5-(3-Pyridyl)-2, 2’-Bithiophene (Sensitizer)
Slide 13: Vitamin D3: Enjoying Sunshine
Vitamin D3: Enjoying Sunshine Vitamin D3 is enjoying great sunshine for the past few years Boost to Vitamin D3 human nutrition demand is driven by awareness and research on its great preventive and curative benefits beyond fortifying bones; it’s a versatile vitamin! Vitamin D3 API demand for human i
Slide 14: Transformation Journey
Transformation Journey Vitamin D3 Multi-vitamins & value-added ingredients Nutraceuticals
Slide 15: Single-vitamin to Multi-vitamins
Single-vitamin to Multi-vitamins 14
Slide 16: Transforming into a Nutraceuticals Company
Transforming into a Nutraceuticals Company Functional foods and nutritional supplements is the first stage of journey Core nutraceuticals is the second stage wherein the Company aims to tackle “Illness to common health problems Wellness” is a new mantra that world Medical nutraceuticals would be the
Slide 17: Types of Nutraceuticals
Types of Nutraceuticals Nutraceuticals | - | Functional Foods Functional Beverages Dietary Supplements Probiotics/Prebiotics Energy drinks Proteins Anti-oxidants Sports drinks Vitamins & Minerals Omega-3 fatty acids Fortified drinks Herbals
Slide 18: Portfolio Progression
Portfolio Progression Current Portfolio Future Target Space Key Markets Vitamin D3 and its various Pre-formulations: formats for: • Phase -1 : Domestic • Other fat soluble • Phase -2 : Global • Pharmaceuticals vitamins and their value • Dietary & Nutritional added variants Supplements • Smart Minera
Slide 19: Unlocking the Value of Real Estate
Unlocking the Value of Real Estate Approx. 45 acres of Freehold Land in Takawe,Pune Worli: ~10,000 sq. ft. area (leased) Thane One: ~200,000 sq. ft. leasable area, which is currently 100% occupied + additional freehold land of ~ 6 acres in Thane 18
Slide 20: Financials – Strong Growth
Financials – Strong Growth 2015 2016 2017* 2018* 2019* 19 On consolidated basis ^ PAT before share of profit / loss of associates and JV’s and Minority Interest *Includes Other Income
Slide 21: Financial Updates – 9MFY20
Financial Updates – 9MFY20 Revenue* (Rs Crs) EBDITA* (Rs Crs) PAT^ (Rs Crs) 45.83 27.99 112.93 69.9 17.39 9.75 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Revenue* (Rs Crs) EBDITA* (Rs Crs) PAT^ (Rs Crs) 324.2 121.47 72.01 238.07 56.46 65.64 9MFY19 9MFY20 9MFY19 9MFY20 9MFY19 9MFY20 Standalone Financi
Slide 22: Financial Updates – 9MFY20
Financial Updates – 9MFY20 Particulars (Rs Crs) 9M FY20 9M FY19 Y-o-Y Revenue 228.41 313.09 -27% • Revenue from VitaminD3 Other Income 9.67 11.11 for Human use Total Revenue 238.08 324.20 -27% contributed 35% to Raw Materials 57.66 73.28 overall revenue as Employee Expenses 39.05 38.03 compared to 3
Slide 23: Business Update – 9MFY20
Business Update – 9MFY20 ▪ Outbreak of African Swine Fever in ▪ Backward integration to produce several Asian countries effected Cholesterol (key raw material) from consumption and led to reduction wool grease - Trial run successfully in Vitamin D3 animal feed prices completed. ▪ Technical issue fac
Slide 24: Net Debt Position – as at 31st December 2019
Net Debt Position – as at 31st December 2019 Nature of Debt Amount (Rs Cr.) Rate of Interest range Term Loan - Pharma 28.56 3% to 4% p.a. LRD/LAP - Real Estate 72.98 9.5% to 10.5% p.a. Working Capital - Pharma 100.00 3% to 4% p.a. Total Debt 201.54 Bank Fixed Deposits 32.36 Net Debt 169.18 23
Slide 25: Key Risks
Key Risks 01 Failure of R&D projects 02 Substantial decline in Vitamin D3 feed prices 03 Foreign currency risks 24
Slide 26: Experienced Board
Experienced Board Mr. Sanjay Buch Chairman (Independent Director ) Partner at Crawford Bayley & Company Ms. Rajeshwari Datla Dr. Gopakumar Nair Mr. Vinayak Hajare Mr. Krishna Datla Ms. Anupama Datla Desai Mr. Satish Varma Non-Executive Director Independent Director Independent Director Managing Dire
Slide 27: Vision
Vision DAY 1 Move up D3 dominance to the value rise chain Unlock RE value LESS IS MORE to propel us to next orbit Pure Pharma company with Rs 800 crs to Rs 1,000 crs revenues with at least 25% EBITDA margin and 20% ROE in 5 to 7 years 26
Slide 28: CSR Activities near manufacturing facilities
CSR Activities near manufacturing facilities Contribution towards E- Canes distributed to visually Computers donated to TB Mukt Abhiyaan learning resources impaired students school for visually impaired Contributed generator for Reflective safety vests Road safety awareness Demonstration of local ha
Slide 29: CSR Activities in Maharashtra
CSR Activities in Maharashtra Empowering people with vision loss in India Music Academy Tripartite MoU for pediatric cardiac surgeries with Rotary Club of Thane, Grant for Premium and Jupiter Hospital Diploma in Corneal Special Transplant Inauguration of NAB-DVK Education Music Academy Educational S
Slide 30: Proud Partner of Vitamin Angels
Proud Partner of Vitamin Angels A non-profit organization providing life changing vitamins to populations in need—specifically pregnant women, new mothers, and children under five. Vitamin Angels works to reach underserved communities in partnership with over 700 NGOs in more than 74 countries aroun
Slide 31: Vitamin D Guru: Our Public Awareness Initiative
Vitamin D Guru: Our Public Awareness Initiative • An innovative public awareness portal dedicated to spreading awareness about Vitamin D, its sources and benefits. • Aims to build a community of Vitamin D conscious health users who can share their experiences with others 30
Slide 32: Team FBL: Awards & Recognition
Team FBL: Awards & Recognition National Best India Pharma Awards 2018 Employer Brand 2018 Excellence in CSR Excellence in Export Promotion Pharma International Excellence 31
Slide 33: FBL features in the media
FBL features in the media Forbes India issue dated 30th August 2019 Economic Times supplement dated 20th August 2019 32
Slide 34: Contact: Mr. Sumesh Gandhi, CFO
Mr. Sumesh Gandhi, CFO sumesh.gandhi@fermentabiotech.com +91-2267980888 33
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