Slide 1: Advanced Enzyme Technologies Earnings Presentation February 2022
ADVANCED ENZYME TECHNOLOGIES LIMITED Earnings Presentation February 2022
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 04 Segmental Performance 07 Geographical Performance 11 3 Result Summary FY21 14 Industry/Opportunity Size 25 Unique Investment Case 29 Focus Area Going Ahead 31 Shareholders’ Information 32
Slide 4: Results Summary – Q3 FY22 (Consolidated) Y-o-Y
Results Summary – Q3 FY22 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 1,377 664 443 1,336 491 286 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 • Revenue de-grew by 03% on y-o-y basis to ₹ 1,336 million in the Q3 FY22 from ₹ 1,377 million in the Q3 FY21 • EBITDA declined by 26% t
Slide 5: Results Summary – Q3 FY22 (Consolidated) Q-o-Q
Results Summary – Q3 FY22 (Consolidated) Q-o-Q *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 0% 493 491 1,336 303 1,271 286 Q2 FY22 Q3 FY22 Q2 FY22 Q3 FY22 Q2 FY22 Q3 FY22 • Revenue grew by 05% on Q-o-Q basis to ₹ 1,336 million in the Q3 FY22 from ₹ 1,271 million in the Q2 FY22 • EBITDA remained flat at
Slide 6: Results Summary – 9M FY22 (Consolidated) Y-o-Y
Results Summary – 9M FY22 (Consolidated) Y-o-Y *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 3,976 1,766 1,612 1,177 3,686 985 9M FY21 9M FY22 9M FY21 9M FY22 9M FY21 9M FY22 • Revenue grew by 8% on y-o-y basis to ₹ 3,976 million in the 9M FY22 from ₹ 3,686 million in the 9M FY21 • EBITDA de-grew by 9% t
Slide 7: Human Nutrition
Human Nutrition (₹ in Million) Q3 FY22 Commentary: • The human nutrition segment contributed around 69% -16% Q3 FY22 918 during the quarter in the total revenue from operations Q3 FY21 1,089 69% • This segment de-grew by 16% during the quarter from ₹ 1,089 million in Q3 FY21 to ₹ 918 million in Q3 F
Slide 8: Animal Nutrition
Animal Nutrition (₹ in Million) Q3 FY22 Commentary: • The Animal nutrition segment contributed about 10% +26% Q3 FY22 132 during the quarter in the total revenue from operations Q3 FY21 105 10% • This segment grew by 26% on y-o-y basis to ₹ 132 million in Q3 FY22 as against ₹ 105 million in Q3 FY21,
Slide 9: Industrial Bio-Processing
Industrial Bio-Processing (₹ in Million) -13% +00% Q3 FY22 160 9M FY22 481 Q3 FY21 183 9M FY21 481 Commentary of Q3 FY22 : • The Industrial Bio-Processing segment contributed about 12% during the quarter in the Q3 FY22 total revenue from operations which was 13% during the same quarter last year • T
Slide 10: Specialized Manufacturing
Specialized Manufacturing (₹ in Million) The Specialized manufacturing segment is newly added to the revenue stream as synergy from the Q3 FY22 acquisition of SciTech Specialties (SSPL) 30% Q3 FY22 125 In Specialized manufacturing, we manufacture products based on Q2 FY22 97 9% effervescent technolo
Slide 11: Geographical Performance
Geographical Performance (₹ in Million) India Americas Europe Asia* Rest of the World 43% 42% 06% 07% 02% Q3 FY22 -20% +04% +02% +264% +88% Q3 FY22 571 Q3 FY22 563 Q3 FY22 79 Q3 FY22 91 Q3 FY22 32 Q3 FY21 717 Q3 FY21 541 Q3 FY21 77 Q3 FY21 25 Q3 FY21 17 44% 40% 06% 07% 03% 9M FY22 +00% +04% +28% +87
Slide 12: Profit & Loss (Consolidated) – Q3 FY22 & 9M FY22
Profit & Loss (Consolidated) – Q3 FY22 & 9M FY22 (₹ in Million) Q3 FY22 Q2 FY22 Q3 FY21 9M FY22 9M FY21 FY21 Particulars Y-o-Y (%) Y-o-Y (%) Un-Audited Un-Audited Un-Audited Un-Audited Un-Audited Audited Income from Operations 1,336 1,271 1,377 -3% 3,976 3,686 8% 5,018 Expenses (Ex. Finance cost) 93
Slide 13: Balance Sheet (Consolidated) – 9M FY22
Balance Sheet (Consolidated) – 9M FY22 (₹ in Million) 9M FY22 9M FY21 9M FY20 Particulars Un-Audited Un-Audited Un-Audited ASSETS Property, plant and equipment 2,370 1,993 2,021 Capital work-in-progress 139 143 176 Intangible assets 626 575 591 Goodwill 2,908 2,884 2,792 Other non-current assets 292
Slide 14: 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 15: 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 16: 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 17: 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 18: 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 19: Annexure
Annexure Earnings Presentation | Q3 FY22 19
Slide 20: 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 21: 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 22: 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 23: 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. Sunny Sharma Independent Director Non-Executive Director I
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 | Q3 FY22 28
Slide 29: 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 30: 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 31: 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 32: Shareholders Information
Shareholders Information Stock Data (As on 04th Feb 2022) Top 5 Institutional Holders (As on 30th Jan 2022) Institutions OS (%) Market Capitalization (₹) 38,121 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 33: 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