Advanced Enzyme Technologies Ltd · NSE:ADVENZYMES
Advanced Enzyme Technologies — Investor Presentation (May 2017)
38 slides from Advanced Enzyme Technologies's investor presentation, May 2017
Slide 1: Advanced Enzyme Technologies Limited
Advanced Enzyme Technologies Limited Investor Presentation | May 2017
Slide 2: Disclaimer
Disclaimer This information may contain certain forward-looking statements/details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views ex
Slide 3: Content
Content Company Overview 4 Global Enzyme Market 13 Advanced Enzymes - A Unique 16 Investment Case Future Growth Strategies & 25 Pipeline Financial Overview 29 3
Slide 4: Company Overview
Company Overview Investor Presentation | May 2017 4
Slide 5: What are enzymes?
Company Overview What are Company Overview enzymes? Advanced Enzymes is a research driven company with global leadership in the manufacturing of enzymes. We are committed to providing eco-safe solutions to a wide variety of industries like human health care and nutrition, animal Enzymes are natural
Slide 6: Board of Directors
Board of Directors Mr. Vasant Rathi Mr. C L Rathi Chairman and Non-Executive Director Managing Director Mr. Vasant Laxminarayan Rathi is the Promoter Chairman and Non- Mr. Chandrakant Laxminarayan Rathi, is the Promoter and Executive Director of our Company. He promoted & incorporated Managing Direc
Slide 7: Management Team
Management Team Piyush Rathi Beni Prasad Rauka Dr. Anil Gupta Dipak Roda Vice President Vice President Chief Business Officer Chief Financial Officer Research & Development Market & Business Development A double graduate, Piyush first Mr. Beni Prasad Rauka, a Chartered Dr. Anil Gupta is a Ph.D. in A
Slide 8: Advanced Enzyme Technologies Limited – A Rising Global Star
Advanced Enzyme Technologies Limited – A Rising Global Star Revenue (₹ mn) 1st Indian enzyme company Highest market share in India 2nd 2nd Listed pure enzyme player globally 3,314 2,204 Amongst Top 15 Global Enzyme Companies Manufacturing Units – 7 R&D Units – 5 FY 2013 FY 2017 India - 5 USA - 2 Ind
Slide 9: Geographical Presence
Geographical Presence International Presence Manufacturing Facilities – 7 INDIA Thane 1 Nasik 2 Indore 1 Ongole 1 USA Chino 2 R&D Centres - 5 INDIA Thane 2 Sinnar 1 Ongole 1 USA Chino 1 Investor Presentation | May 2017 9
Slide 10: Catering to Diverse end-use Industries
Catering to Diverse end-use Industries ~88% of Total Human Revenue in FY16 Healthcare Animal Nutrition & Nutrition Supply enzyme products, enzyme blends & customised enzyme solutions Biocatalysis Detergents (API Synthesis) Leverage R&D to deliver high quality products at globally competitive pri
Slide 11: Corporate Structure Advanced Enzyme Technologies Ltd. (AETL)
Corporate Structure Advanced Enzyme Technologies Ltd. (AETL) 60%(1) 100%(2) 100% 70% Advanced EnzyTech Advanced Enzymes USA Advanced Bio-Agro Tech Ltd JC Biotech Private Ltd Solutions Ltd Inc. Animal Feed Products Eco-friendly Solutions Complimentary Agro Products Non-food industries Produ
Slide 12: Brief History and Evolution
Brief History and Evolution R&D centres Floated IPO Incorporated (Thane and as Advanced Sinnar) Takeover of Cal- Acquired 70% Biochemicals recognized by India Foods Intl. stake in JC Pvt Ltd. DSIR – USA presence Biotech 1989 1994 2001 2005 2011 2012 2016 First Advanced Biochemicals Equity investment
Slide 13: Global Enzyme Market
Global Enzyme Market Investor Presentation | May 2017 13
Slide 14: Global Enzyme Market: Broad-based Growth led by Specialty Enzymes
Global Enzyme Market : Broad-based Growth led by Specialty Enzymes Usage of Enzymes World Enzyme Demand by Region Global growth to be led by Specialty Global Market Size Enzymes while Industrial Enzymes expected to see moderate growth 2022 USD 9.5 bn North America dominates the global enzyme mar
Slide 15: Underlying Trends Driving Global Enzyme Demand
Underlying Trends Driving Global Enzyme Demand Growing Population Per capita Income, growing middle class and urbanization, particularly in rapidly developing economies Global Industrial Enzymes Global Specialty Enzymes Other Specialty (USD Cleaning Food & Animal Other Research & Biofuel (USD Mn) Di
Slide 16: Advanced Enzymes - A Unique Investment Case
Advanced Enzymes - A Unique Investment Case Investor Presentation | May 2017 16
Slide 17: What Makes AETL a Unique Investment Case
What Makes AETL a Unique Investment Case Unique Investment Case Integrated Player with Presence Across the Enzyme Value Chain Strong Research & Development Capabilities Specialized Business with High Entry Barriers Inherent Diversification in the Business Model Significant Focus on International Mar
Slide 18: Integrated Player with Presence Across the Enzyme Value Chain
Integrated Player with Presence Across the Enzyme Value Chain Research & Manufacturing Marketing & Development Distribution Investor Presentation | May 2017 18
Slide 19: Strong Research & Development Capabilities
Strong Research & Development Capabilities Proteomics & Applied Process Development & Application Laboratory Services Microbiology Optimization Development Purification & Upscaling fermentation Develop innovative enzyme Custom application Characterisation of Enhance efficiency of solutions
Slide 20: Specialized Business With High Entry Barriers
Specialized Business With High Entry Barriers Proven Enzyme Sustained Research & Manufacturing Technocrat Promoters Development Development Expertise Capabilities Cumulative experience Consistent Investment Specialized technical Proven Expertise in of 7+ decades in the into R&D over the past experti
Slide 21: Inherent Diversification in the Business Model
Inherent Diversification in the Business Model Catering to Diversified Segments & Industries Products & Offerings cater to a diverse set of industries across multiple segments such as Human Nutrition, Animal Nutrition & Bio-Processing Broad client base serving 700+ customers across 45+ countries
Slide 22: Significant Focus on International Markets & Brand Building
Significant Focus on International Markets & Brand Building 1% Corporate Brand Building Through Participation 4% in Global Trade shows 55% 36% 4% Asia (ex- India) Others India Europe USA Geographically diversified revenue base: 63.6% International Operations 55+ 70+ Global Sales & Marketing In
Slide 23: Strong Financial Performance
Strong Financial Performance ₹ in Million Revenue from Operations 250 0 EBIDTA & EBIDTA Margin (%) 48% 47% 3,314 46% 47% 2,938 200 0 46% 2,394 2,231 43% 45% 2,204 150 0 43% 1530 44% 100 0 42% 1,389 43% 943 1,031 931 42% 41% 500 40% 0 39% FY 13 FY 14 FY 15 FY 16 FY 17 FY 13 FY 14 FY 15 FY 16 FY 17 EB
Slide 24: Strong Financial Performance
Strong Financial Performance ₹ in Million Net Working Capital (Days) Net Worth (₹ mn) 128 4,602 119 2,781 112 110 109 2,120 1,634 1,674 FY 13 FY 14 FY 15 FY 16 FY 17 FY 13 FY 14 FY 15 FY 16 FY 17 ROE (%) & ROCE (%) Net Debt to Equity (x) 34% 1.1 31% 28% 27% 1.0 26% 25% 28% 24% 0.5 20% 0.4 13% 0.1 FY
Slide 25: Future Growth Strategies & Pipeline
Future Growth Strategies & Pipeline Investor Presentation | May 2017 25
Slide 26: Key Strategies for Future Growth
Key Strategies for Future Growth Broaden & Deepen Continued Geographical Presence Investment in R&D Expand Sales, Marketing Identify Product gaps & Distribution Networks and Develop new in North American, Enzymes & Solutions European, Latin Expand Competencies American & Asian in Enzyme Discov
Slide 27: Application Pipeline
Application Pipeline Industry Area of Focus USP Geographical Focus Market Potential Productivity Powder & Liquid Animal Nutrition Enhancement Blends Global $500 mn+ Oils & Fats Palm Oil First Mover, Patent Asia $700 mn+ Processing Extraction Granted Techno- Complete Technology BioDiesel Commercial P
Slide 28: Application Pipeline – Current Status
Application Pipeline – Current Status Active Stages Enzyme & Microbial Process Scale Up & Proof of Concept & Feasibility Assessment Market Expansion Industry Development Application Research Market Development Animal Nutrition Oils & Fats Processing BioDiesel Washing Solutions BioCatalysis Investor
Slide 29: Financial Overview
Financial Overview Investor Presentation | May 2017 29
Slide 30: Results Summary – FY17
Results Summary – FY17 Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 3,314 1,389 1,530 924 2,938 768 FY16 FY17 FY16 FY17 FY16 FY17 Revenue Breakup ₹ in Million *YoY Growth Animal HC Human HC Food Industrial Processing 8% 12% 21% 35% FY17 512 2,386 223 193 FY16 474 2,137 184 143 Note: On Consolidated Basis
Slide 31: Results Summary – Q4FY17
Results Summary – Q4FY17 Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 860 401 227 805 333 200 Q4FY16 Q4FY17 Q4FY16 Q4FY17 Q4FY16 Q4FY17 Revenue Breakup ₹ in Million *YoY Growth Animal HC Human HC Food Industrial Processing -24% 19% (0.3%) 55% 46% Q4FY17 144 616 59 41 Q4FY16 121 618 38 28 Note: On Consoli
Slide 32: Revenue Split
Revenue Split Q4FY17 FY17 Segmental Revenue Split (%) Segmental Revenue Split (%) 5% 6% 15% 7% 17% 7% 71% 72% Animal HC Human HC Food Industrial Processing Animal HC Human HC Food Industrial Processing Geographical Revenue Split (%) Geographical Revenue Split (%) 2% 2% 6% 4% 42% 52% 38% 46% 4% 4% As
Slide 33: Profit & Loss (Consolidated) – Q4FY17 & FY17
Profit & Loss (Consolidated) – Q4FY17 & FY17 All figures in ₹ mn Q4FY17 Q3FY17 Q4FY16 Particulars Y-o-Y (%) FY17 FY16 Y-o-Y (%) Unaudited Unaudited Unaudited Income from Operations 860 600 805 7% 3,314 2,938 13% Expenses 565 441 432 31% 1,929 1,649 17% Profit from Operations before Other Income, 295
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in ₹ mn 2013 2014 2015 2016 2017 Equity and Liabilities Share Capital 218 218 218 218 223 Reserves & Surplus 1,416 1,457 1,902 2,563 4,378 Non Current Liabilities 1,300 1,024 688 563 388 Current Liabilities 1,019 1,326 1,306 1,107 653 Minority Interest 24 36 45
Slide 35: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement All figures in ₹ mn 2013 2014 2015 2016 2017 Revenue from operations 2,204 2,395 2,231 2,938 3314 Cost of materials consumed 511 471 477 617 681 Gross Profit 1,693 1,924 1,754 2,321 2633 Gross Profit Margin (%) 76.8% 80.3% 78.6% 79.0% 79.5% Employee benefit expen
Slide 36: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement All figures in ₹ mn 2013 2014 2015 2016 2017 Profit before tax 760 278 738 1,225 1366 Adjustments for non-cash transactions 79 128 97 87 166 Interest expenses 90 89 80 67 47 Changes in working capital (258) 155 (115) (77) 95 Income taxes paid (254) (194) (264) (270)
Slide 37: Shareholder Information (as on 31st March 2017)
Shareholder Information (as on 31st March 2017) Stock Data Top Institutional Holders Institutions OS (%) Market Capitalization (₹) 45,938 mn DSP Blackrock Investment Management Co. 4.53 Shares Outstanding 111.5 mn Motilal Oswal Asset Management Co. Ltd. 1.42 Free Float 32.5 mn Reliance Capital Trust
Slide 38: Thank You
IR Contact: Piyush Rathi - Chief Business Officer Email: investor.realtions@advancedenzymes.com Thank You Advanced Enzyme Technologies Limited 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.advanceden
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