Slide 1: Advanced Enzyme Technologies Limited Earnings Presentation
ADVANCED ENZYME TECHNOLOGIES LIMITED Earnings Presentation - November 2021
Slide 2: 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 3: Table of Content
Table of Content Result Summary 05 Segmental Performance 08 Geographical Performance 12 3 Result Summary FY21 15 Industry/Opportunity Size 26 Unique Investment Case 28 Focus Area Going Ahead 32 Shareholders’ Information 33
Slide 4: H1 FY22 Highlights
H1 FY22 Highlights Sales ₹ 2,641 Mn Stake Acquisition Acquired additional 15% stake in JC Biotech Consolidated sales grew +14% Holding increased from 70% to 85% EBITDA Margin of 42% Consolidated EBITDA at ₹1,121 mn Integration Margin lower by 600 bps impacted by higher raw Synergy realisation on-tra
Slide 5: Results Summary – Q2 FY22 (Consolidated) Y-o-Y
Results Summary – Q2 FY22 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 585 386 1,271 1,204 493 303 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 • Revenue grew by 6% on y-o-y basis to ₹ 1,271 million in the Q2 FY22 from ₹ 1,204 million in the Q2 FY21 • EBITDA declined by 16% to ₹
Slide 6: Results Summary – Q2 FY22 (Consolidated) Q-o-Q
Results Summary – Q2 FY22 (Consolidated) Q-o-Q *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 1,370 627 397 1,271 493 303 Q1 FY22 Q2 FY22 Q1 FY22 Q2 FY22 Q2 FY21 Q2 FY22 • Revenue de-grew by 7% on Q-o-Q basis to ₹ 1,271 million in the Q2 FY22 from ₹ 1,307 million in the Q1 FY22 • EBITDA declined by 21% to
Slide 7: Results Summary – H1 FY22 (Consolidated) Y-o-Y
Results Summary – H1 FY22 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 2% 2,641 1,120 1,102 734 2,309 700 H1 FY21 H1 FY22 H1 FY21 H1 FY22 H1 FY21 H1 FY22 • Revenue grew by 14% on y-o-y basis to ₹ 2,641 million in the H1 FY22 from ₹ 2,309 million in the H1 FY21 • EBITDA grew by 2% to
Slide 8: Human Nutrition
Human Nutrition (₹ in Million) Q2 FY22 Commentary: • The human nutrition segment contributed around 72% +04% Q2 FY22 920 during the quarter in the total revenue from operations Q2 FY21 885 72% • This segment grew by 4% during the quarter from ₹ 885 million in Q2 FY21 to ₹ 920 million in Q2 FY22 of S
Slide 9: Animal Nutrition
Animal Nutrition (₹ in Million) Q2 FY22 Commentary: • The Animal nutrition segment contributed about 11% +03% Q2 FY22 136 during the quarter in the total revenue from operations Q2 FY21 132 11% • This segment grew by 3% on y-o-y basis to ₹ 136 million in Q2 FY22 as against of Sales ₹ 132 million in
Slide 10: Industrial Bio-Processing
Industrial Bio-Processing (₹ in Million) -37% +05% Q2 FY22 118 H1 FY22 321 Q2 FY21 187 H1 FY21 305 Commentary of Q2 FY22 : • The Industrial Bio-Processing segment contributed about 9% during the quarter in the total Q2 FY22 revenue from operations which was 16% during the same quarter last year • Th
Slide 11: Specialized Manufacturing
Specialized Manufacturing (₹ in Million) The Specialized manufacturing segment is newly added to the revenue stream as synergy from the Q2 FY22 acquisition of SciTech Specialties (SSPL) -28% Q2 FY22 97 In Specialized manufacturing, we manufacture products based on Q1 FY22 134 8% effervescent technol
Slide 12: Geographical Performance
Geographical Performance (₹ in Million) India Americas Europe Asia* Rest of the World 47% 40% 04% 09% 00% Q2 FY22 +18% -02% +04% +18% -92% Q2 FY22 594 Q2 FY22 511 Q2 FY22 53 Q2 FY22 109 Q2 FY22 03 Q2 FY21 504 Q2 FY21 519 Q2 FY21 51 Q2 FY21 93 Q2 FY21 37 45% 39% 06% 7% 3% H1 FY22 +14% +04% +45% +53%
Slide 13: Profit & Loss (Consolidated) – Q2 FY22 & H1 FY22
Profit & Loss (Consolidated) – Q2 FY22 & H1 FY22 (₹ in Million) Q2 FY22 Q1 FY21 Q2 FY21 H1 FY22 H1 FY21 FY21 Particulars Y-o-Y (%) Y-o-Y (%) Un-Audited Un-Audited Un-Audited Un-Audited Un-Audited Audited Income from Operations 1,271 1,370 1,204 +06 2,641 2,309 +14 5,018 Expenses (Ex. Finance cost) 8
Slide 14: Balance Sheet (Consolidated) – H1 FY22
Balance Sheet (Consolidated) – H1 FY22 (₹ in Million) H1 FY22 H1 FY21 H1 FY20 Particulars Un-Audited Un-Audited Un-Audited ASSETS Property, plant and equipment 2,407 2,017 1,706 Capital work-in-progress 101 138 157 Intangible assets 653 577 594 Goodwill 2,913 2,899 2,764 Other non-current assets 299
Slide 15: Results Summary – FY21 (Consolidated) Y-o-Y
Results Summary – FY21 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 2,315 5,018 4,440 2,023 1,515 1,330 FY20 FY21 FY20 FY21 FY20 FY21 Animal HC Human HC Bio Processing 11% 18% 1% FY21 475 FY21 3,786 FY21 678 FY20 536 FY20 3,211 FY20 683 1. On Consolidated Basis 2. PAT is before mino
Slide 16: Revenue Split – FY21 vs. FY20
Revenue Split – FY21 vs. FY20 FY21 FY20 14% 15% 9% Human HC 12% Human HC Product Animal HC Product Animal HC Category-wise (%) Bio-Processing Category-wise (%) Bio-Processing 77% 73% 2% 2% 4% 6% Asia (ex- India) Asia (ex- India) Others Others 42% 42% Geographical India Geographical India Revenue Spl
Slide 17: Strong Financial Performance – FY21
Strong Financial Performance – FY21 (₹ in Million) Revenue from Operations EBIDTA & EBIDTA Margin (%) 5,018 2,500 46% 50% 4,196 4,440 46% 43% 48% 3,957 45% 42% 2,000 3,431 46% CAGR 1,500 44% CAGR 9.97% 1,000 42% 10.84% 40% 500 1,534 1,654 1,819 2,023 2,315 38% 0 36% FY 17 FY 18 FY 19 FY 20 FY 21 FY
Slide 18: Strong Financial Performance – FY21
Strong Financial Performance – FY21 Net Working Capital (Days) Net Worth (₹ mn) 119 120 9,699 116 8,397 6,788 108 5,591 4,640 105 FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21 ROE (%) & ROCE (%) Net Debt to Equity (x) 27.00% 27.00% 0.1 24.00% 22.80% 22.50% 19.00% 18.00% 19.00% 17.50% 1
Slide 19: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (₹ in Million) FY21 FY20 FY19 Particulars Audited Audited Audited Assets Property, plant and equipment 2,382 2,096 1,618 Capital work-in-progress 104 101 105 Intangible assets 725 592 622 Goodwill 2,901 2,941 2,715 Other non-current assets 253 251 183 Current assets 5,16
Slide 20: Annexure
Annexure Earnings Presentation | Q2 FY22 20
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 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 company 2nd
Slide 23: Brief History and Evolution
Brief History and Evolution 2012 • Equity investment by 2017 Kotak Private Equity* • Acquired 100% stake 2005 Advanced • Takeover of Advance in evoxx 2020 1985 Biochemicals Ltd. is Supplementary technologies GmbH, Acquired 51% stake in Cal-India Foods 1994 renamed as Advanced Technologies Germany Sc
Slide 24: Board of Directors
Board of Directors Mr. Vasant Rathi Mr. Mukund M. Kabra Mr. Kedar Desai Mr. Rajesh Sharma Chairman and Non-Executive Director Whole-time Director Independent Director Independent Director Mr. Pramod Kasat Ms. Rasika Rathi Mr. Vinod Jajoo Mr. Vilas Aurangabadkar Independent Director Non-Executive Dir
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. Micha
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 we are Aiming in the Opportunity?
What we are Aiming in the Opportunity? Opportunity Addressable market for AETL AETL’s Current Share of Revenue Focus Area Size over next 5 years** FY21 FY20 Human $ 400 mn $ 200 mn $ 39 mn, 57% $ 38.4 mn, 61% Nutrition Bio-catalysis $ 60 mn $ 30 mn* $ 2.2 mn, 3% $ 1.3 mn, 2% Baking $ 300 mn $ 30 mn
Slide 28: What Makes AETL a Unique Investment Case?
What Makes AETL a Unique Investment Case? Specialized Business Inherent Diversification with High Entry in the Business Model Barriers Significant Focus on Strong Research & International Markets & Development Brand Building Capabilities Integrated Player with Presence Across the Strong Financial En
Slide 29: Integrated Player with Presence Across the Enzyme Value Chain
Integrated Player with Presence Across the Enzyme Value Chain Research & Development Manufacturing Marketing & Distribution Earnings Presentation | Q2 FY22 29
Slide 30: Specialized Business With High Entry Barriers
Specialized Business With High Entry Barriers Technocrat Promoters Global Competitiveness Cumulative experience of 7+ decades in Amongst the Lowest Cost Manufacturers in the World, the global enzyme industry therefore our Gross margin stays in the range of 75%-80% (Benchmarked both in terms of Capex
Slide 31: Future Growth Drivers
Future Growth Drivers o Identify Product gaps and Develop new Enzymes, Probiotics & Continued Solutions thereof o Expand Competencies in Enzymes & Probiotics, Discovery and Investment in R&D Genetic Engineering o Increased focus on high return applications where AETL has strategic advantages Broaden
Slide 32: Focus Areas Going Ahead
Focus Areas Going Ahead Animal Nutrition Probiotics Bio-Catalysis Baking • Continuing conduct trials and • To introduce more probiotics • Developing bio catalysis for API • In Bio-processing division, our studies to bring newer and products in Human Nutrition for manufacturers, providing focus is on
Slide 33: Shareholders Information
Shareholders Information Stock Data (As on 31st Oct 2021) Top 5 Institutional Holders (As on 31st Oct 2021) Institutions OS (%) Market Capitalization (₹) 42,141 mn ORBIMED ASIA III MAURITIUS 12.09 Shares Outstanding 111.72 mn NALANDA INDIA EQUITY FUND 4.74 HDFC AMC 4.21 Free Float 33.98% ICICI PRUDE
Slide 34: Thank You
Thank You Advanced Enzyme Technologies Limited 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 Investor Relations Contact: Ronak Saraf Manager - In