Advanced Enzyme Technologies Ltd · NSE:ADVENZYMES
Advanced Enzyme Technologies — Investor Presentation (September 2017)
42 slides from Advanced Enzyme Technologies's investor presentation, September 2017
Slide 1: Advanced Enzyme Technologies Limited
Advanced Enzyme Technologies Limited Where ENZYME is Life Investor Presentation | September 2017
Slide 2: Content
Content Company Overview 4 Global Enzyme Market 13 Advanced Enzymes - A Unique 16 Investment Case Future Growth Strategies & 26 Pipeline Financial Overview 30 Investor Presentation | September 2017 2
Slide 3: 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 4: Company Overview
Company Overview Investor Presentation | September 2017 4
Slide 5: What are enzymes?
Company Overview Company Overview Advanced Enzymes is a research driven company with global leadership in the manufacturing of What enzymes. We are committed to providing eco-safe solutions to a wide variety of industries like human health care and nutrition, animal nutrition, baking, fruit & vegeta
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: 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 integrated enzyme player globally 3,314 2,204 Amongst Top 15 Global Enzyme Companies Manufacturing Units – 7 R&D Units – 7 FY 2013 FY 2017 India - 5 USA -
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 - 7 INDIA Thane 2 Sinnar 1 Ongole 1 USA Chino 1 GERMANY 2 Investor Presentation | September 2017 9
Slide 10: Catering to Diverse end-use Industries
Catering to Diverse end-use Industries Human Healthcare & Nutrition ~87% of Total Revenue in FY17 Animal Nutrition Supply enzyme products, enzyme blends & customised enzyme solutions Leverage R&D to deliver high quality products at globally competitive prices Biocatalysis Detergents (API Synthes
Slide 11: Corporate Structure
Corporate Structure Advanced Enzyme Technologies Ltd. (AETL) 60%(1) 100%(2) 100% 70% 80% 100% Advanced Bio-Agro Advanced EnzyTech Advanced Enzymes JC Biotech Private Advanced Enzymes Advanced Enzymes Tech Ltd Solutions Ltd USA Inc. Ltd (Malaysia) Sdn.Bhd. Europe B.V. o Incorporated: 2016 o Incorpora
Slide 12: Brief History and Evolution
Brief History and Evolution Incorporated R&D centres Floated IPO as Advanced (Thane and Takeover of Cal- Biochemicals Sinnar) India Foods Intl. Acquired 70% Pvt Ltd. recognized by – USA presence stake in JC DSIR Biotech 1989 1994 2001 2005 2011 2012 2016 2017 Advanced Biochemicals Equity investment
Slide 13: Global Enzyme Market
Global Enzyme Market Investor Presentation | September 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 o Global growth to be led by Specialty Enzymes while Industrial Enzymes expected to see Global Market Size moderate growth o North America dominates the global enzyme USD 9.5 bn 2022 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 | September 2017 16
Slide 17: What Makes AETL a Unique Investment Case
What Makes AETL a Unique Investment Case Specialized Inherent Business with High Diversification in Entry Barriers the Business Model Significant Focus on Strong Research & International Development Markets & Brand Capabilities Building Integrated Player Strong Financial with Presence Performance Ac
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 | September 2017 18
Slide 19: Strong Research & Development Capabilities
Strong Research & Development Capabilities Proteomics & Applied Process Development & Process Development & Laboratory Services Microbiology Optimization Optimization o Purification & o Upscaling fermentation o Develop innovative enzyme o Custom application Characterisation of o Enhance efficiency o
Slide 20: Specialized Business With High Entry Barriers
Specialized Business With High Entry Barriers Sustained Research & Manufacturing Proven Enzyme Technocrat Promoters Development Expertise Development 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 o Products & Offerings cater to a diverse set of industries across multiple segments such as Human Nutrition, Animal Nutrition & Bio-Processing o 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 2% Corporate Brand Building Through Participation 4% in Global Trade shows 52% 38% 4% Asia (ex- India) Others India Europe USA Geographically diversified revenue base: 62% International Operations 60+ 70+ Global Sales & Marketing Inte
Slide 23: Synergy from acquisition
Evoxx Technologies GmbH – Acquisition o Advanced Enzymes Technologies Ltd. acquired 100% stake in Evoxx Technologies GmbH for a consideration of € 7.65 million o The purchase is effected through its wholly owned subsidiary Advanced Enzymes Europe B.V. o Evoxx is an industrial biotech company focussi
Slide 24: Strong Financial Performance
Strong Financial Performance 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 EBIDTA EBIDTA M
Slide 25: Strong Financial Performance
Strong Financial Performance 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 13 FY 14 FY
Slide 26: Future Growth Strategies & Pipeline
Future Growth Strategies & Pipeline Investor Presentation | September 2017 26
Slide 27: Key Strategies for Future Growth
Key Strategies for Future Growth Broaden & Deepen Geographical Presence Continued o Expand Sales, Marketing Investment in R&D & Distribution Networks in North American, o Identify Product gaps European, Latin and Develop new American & Asian Enzymes & Solutions markets o Expand Competencies o Build
Slide 28: Application Pipeline
Application Pipeline Industry Area of Focus USP Geographical Focus Market Potential Animal Productivity Powder & Liquid Global $500 mn+ Nutrition Enhancement Blends Oils & Fats Palm Oil First Mover, Asia $700 mn+ Processing Extraction Patent Granted Techno- Complete BioDiesel Commercial Technology I
Slide 29: 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 Processin BioDiesel Washing Solutions BioCatalysis Investor P
Slide 30: Financial Overview
Financial Overview Investor Presentation | September 2017 30
Slide 31: Results Summary – FY17
Results Summary – FY17 Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 2,938 3,314 1,389 1,530 924 768 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 32: Results Summary – Q1FY18
Results Summary – Q1FY18 *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 511 278 941 755 299 163 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Q1FY17 Q1FY18 *Revenue excluding excise duty Revenue Breakup ₹ in Million *YoY Growth Animal HC Human HC Food Industrial Processing -24% (19%) (23%) 52% (35%) Q1FY18 109 551 46 49 Q1
Slide 33: Revenue Split – Q4FY17
Revenue Split – Q4FY17 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%
Slide 34: Revenue Split – Q1FY18
Revenue Split – Q1FY18 Q1FY18 Q1FY17 Segmental Revenue Split (%) Segmental Revenue Split (%) 7% 14% 8% 14% 6% 3% 73% 75% Animal HC Human HC Food Industrial Processing Animal HC Human HC Food Industrial Processing Geographical Revenue Split (%) Geographical Revenue Split (%) 1% 2% 4% 3% 27% 42% 65% 3
Slide 35: 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 36: Profit & Loss (Consolidated) – Q1FY18
Profit & Loss (Consolidated) – Q1FY18 ₹ in Million except per share data Q1FY18 Q1FY17 Particulars Y-o-Y (%) Unaudited Unaudited Income from Operations 802 968 (17) Expenses 544 492 11 Profit from Operations before Other Income, Finance Costs and Exceptional Item 258 476 (46) Other Income 3 4 (25) P
Slide 37: Top Customer – Trend Analysis
Top Customer – Trend Analysis ₹ in Million Year Q1 Q2 Q3 Q4 Total FY18 66 Expected to grow by 10-15% annually (in $ terms) FY17 375 278 2 135 790 FY16 137 127 211 237 712 FY15 58 31 73 60 222 Average Exchange rate: 2015 - $1 = ₹ 61.15 2016 - 1$ = ₹ 65.46 2017 - $1 = ₹ 67.09 2018 - $1 = ₹ 64.46 (upto
Slide 38: 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 39: 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 40: 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 41: Shareholder Information
Shareholder Information Stock Data (As on 30th June 2017) Top Institutional Holders Institutions OS (%) Market Capitalization (₹) 36,185 mn Dsp Blackrock Micro Cap Fund 2.10 Shares Outstanding 111.63 mn Reliance Capital Trustee Co. Ltd-a/C Reliancesmall 1.21 Cap Fund Free Float 23.15% The Nomura Tru
Slide 42: Thank You
Thank You IR Contact: Piyush Rathi - Chief Business Officer Email: investor.relations@advancedenzymes.com 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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