Advanced Enzyme Technologies Limited — Investor Presentation 2021

Feb 12, 2021

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Advanced Enzyme Technologies Limited Earnings Presentation | Q3FY21

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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 expressed herein. Investors/shareholders/public are hence cautioned not to place undue reliance on these statements/details, and are advised to conduct their own investigation and analysis of the information contained or referred to in this section be fore taking any action with regard to their own specific objectives. Further, the discussion following here in reflects the perceptions on major issues as on date and the opinions expressed here are subject to change without notice. The Company under takes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in this section, consequent to new information, future events or otherwise.

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Earnings Presentation | Q3FY21

2

Company Overview

What are enzymes?

Enzymes are natural protein molecules that act as catalysts within living cells, produced by all living organisms. Function as specialized catalysts and accelerate the pace of biochemical reactions.

Advanced uses enzymes to replace chemicals in, and improve efficiency of, a wide variety of industrial processes for its customers.

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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 processing, brewing & malting, grain processing, protein modification, dairy processing, speciality applications, textile processing and others. Our aim is to replace traditionally used chemicals with eco-friendly enzymatic solutions.

What are Probiotics?

Probiotics are live microorganisms, when administered in sufficient amount, confer health benefits to human and animals. Probiotics have now become an integral part of several therapies for the digestive disorders and newer applications for treatment of several other diseases are being developed. Probiotics act by fighting with the disease causing microorganisms and by secreting beneficial metabolites in the human/animal system.

Advanced Enzymes has developed and upscaled technologies for the production and application of several important probiotics.

Mission

Vision

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It is our mission to see that every human being is able to take advantage of the power of enzymes for well-being and leading a healthy life!

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Our vision at Advanced Enzymes is to become the largest, enzyme-based, value provider to consumers and processors globally!

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3 Earnings Presentation | Q3FY21

Advanced Enzyme Technologies Limited – A Rising Global Star

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Manufacturing Units – 7 R&D Units – 6
}
India – 5 I USA - 2 India – 4 | USA – 1 | Germany –1
REVENUE (₹ mn)
1 [st] 2 [nd] 2 [nd]
4,440
Indian enzyme company Highest market share in Listed integrated
2,938 India enzyme player
globally
FY 16 FY 20
EBIDTA (₹ mn)
68+ 400+ 700+ 45+ 550+
2,022
1,389 Enzymes Proprietary Customers Countries Employees
& Probiotics Products Worldwide Worldwide
Presence
FY 16 FY 20
PAT (₹ mn)
7 11 2 420 25+
1,330
Registered Food Enzyme GRAS Dossier m [3] Years of
768 Patents Dossiers filed evaluated by Fermentation Fermentation
with EFSA US FDA Capacity Experience
FY 16 FY 20
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Note: Facts & Figures as on 31[st] March 2020

*1 GRAS Dossier under evaluation with US FDA

Note: 2015: as per IGAAP | 2020: as per IndAs

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4 Earnings Presentation | Q3FY21

Results Summary – Q3FY21 (Consolidated) Y-o-Y

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Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn)
1,377
664
1,119 529
443
346
Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21
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Revenue Breakup ₹ in Million

*YoY Growth

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Animal HC Human HC Industrial Processing
30% -24%
Q3FY21 105 Q3FY21 1,089 (1%) Q3FY21 183
Q3FY20 149 Q3FY20 807 Q3FY20 163
35% 12%
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Note: 1. On Consolidated Basis

2. PAT is before minority

3. Product categorywise revenue does not include other operating income and Ind AS adjustments

4. Ind AS adjustments are carried out on account of commission and discount.

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Earnings Presentation | Q3FY21

5

Revenue Split – Q3FY21 vs. Q3FY20

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Q3FY21 Q3FY20
Product Category-wise (%) Product Category-wise (%)
13% 8% 15% 13%
79% 72%
Animal HC Human HC Bio-Processing Animal HC Human HC Bio-Processing
Geographical Revenue Split (%) Geographical Revenue Split (%)
1%
3%
2% 5%
39%
42%
52% 43%
6%
7%
Asia (ex- India) Others India Europe USA Asia (ex- India) Others India Europe USA
Note: 1. On Consolidated Basis 2. EBIDTA is including other income 3. Segment-wise revenue does not 4. Ind AS adjustments are carried out on account
include other operating income of commission and discount.
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3. Segment-wise revenue does not include other operating income

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6 Earnings Presentation | Q3FY21

Results Summary – 9MFY21 (Consolidated) Y-o-Y

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Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn)
3,686
1,766
3,337
1,536
1,177
1,004
9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21
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Revenue Breakup ₹ in Million

*YoY Growth

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Animal HC Human HC Industrial Processing
16% -24%9MFY21 344 9MFY21 2,861 1% (1%) 9MFY21 481
9MFY20 410 9MFY20 2,440 9MFY20 487
17%
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Note: 1. On Consolidated Basis 2. PAT is before minority

3. Product categorywise revenue does not include other operating income and Ind AS adjustments

4. Ind AS adjustments are carried out on account of commission and discount.

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Earnings Presentation | Q3FY21

7

Revenue Split – 9MFY21 vs. 9MFY20

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9MFY21 9MFY20
Product Category-wise (%) Product Category-wise (%)
13% 9% 15% 12%
78% 73%
Animal HC Human HC Bio-Processing Animal HC Human HC Bio-Processing
Geographical Revenue Split (%) Geographical Revenue Split (%)
2% 2%
4% 5%
42% 44%
47% 42%
5% 7%
Asia (ex- India) Others India Europe USA Asia (ex- India) Others India Europe USA
Note: 1. On Consolidated Basis 2. EBIDTA is including other income 3. Segment-wise revenue does not 7. Ind AS adjustments are carried out on account
include other operating income of commission and discount.
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3. Segment-wise revenue does not include other operating income

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8 Earnings Presentation | Q3FY21

Profit & Loss (Consolidated) – Q2FY21 & 9MFY21

₹ in Million except per share data

Particulars	Q3FY21 Unaudited	Q2FY21 Unaudited	Q3FY20 Unaudited	Y-o-Y (%)	9MFY21 Unaudited	9MFY20 Unaudited	Y-o-Y (%)
Income from Operations	1,377	1,204	1,119	23%	3,686	3,337	10%
Expenses	778	687	654	19%	2,120	1,992	6%
Profit from Operations before Other Income, Finance Costs and Exceptional Item	599	517	465	29%	1,566	1,345	16%
Other Income	13	6	12	8%	72	38	89%
Profit from ordinary activities before Finance Costs and Exceptional Item	612	523	477	28%	1,638	1,383	18%
Finance costs	3	4	8	(63%)	12	23	(48%)
Profit from ordinary activities before exceptional item and tax	609	519	469	30%	1,626	1,360	20%
Profit from ordinary activities before tax	609	519	469	30%	1,626	1,360	20%
Tax	166	133	123	35%	449	356	26%
Net Profit for the period	443	386	346	28%	1,177	1,004	17%
Earnings Per Share	3.86	3.33	3.01		10.25	8.77

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Earnings Presentation | Q3FY21

9

Balance Sheet (Consolidated) – 9MFY21

₹ in Million	₹ in Million	₹ in Million
Particulars	9MFY21 Unaudited	9MFY20 Audited
Assets
Property, plant and equipment	1,993	2,021
Capital work-in-progress	143	176
Intangible assets	575	591
Goodwill	2,884	2,792
Other non-current assets	193	184
Current assets	4,833	3,484
Assets held for sale	-	48
Total Assets	10,621	9,296
Equity And Liabilities
Equity share capital	223	223
Other equity	9,148	7,600
Non-controlling interest	303	264
Non-current liabilities	398	453
Current liabilities	549	701
Liabilities classified as held for sale	-	55
Total – Equity and Liabilities	10,621	9,296

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10 Earnings Presentation | Q3FY21

Results Summary – FY20

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Revenue (₹ mn)
EBITDA (₹ mn) PAT (₹ mn)
2,023
4,440
4,196 1,819
1,330
1,159
FY19 FY20 FY19 FY20 FY19 FY20
Revenue Breakup ₹ in Million YoY Growth
Animal HC Human HC Industrial Processing
-24%
FY20 536 FY20 3,211 ( FY20 555
FY19 493 FY19 3,133 FY19 512
9% 2% 8%
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Revenue Breakup ₹ in Million

Note: 1. On Consolidated Basis 2. PAT is before minority

3. Segment-wise revenue does not include other operating income and Ind AS adjustments

4. Ind AS adjustments are carried out on account of commission and discount.

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Earnings Presentation | Q3FY21

11

Revenue Split – FY20

FY20

FY19

Product Category-wise (%)

Product Category-wise (%)

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13% 12%
75%
Animal HC Human HC Bio-Processing
Geographical Revenue Split (%)
2%
6%
42%
43%
7%
Asia (ex- India) Others India Europe USA
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12% 12%
76%
Animal HC Human HC Bio-Processing
Geographical Revenue Split (%)
2%
4%
49%
40%
5%
Asia (ex- India) Others India Europe USA
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• Note: 1. On Consolidated Basis 3. Segment-wise revenue does not include other operating 2. PAT is before minority income and Ind AS adjustments

Earnings Presentation | Q3FY21

4. Ind AS adjustments are carried out on account of commission and discount.

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12

Profit & Loss (Consolidated) – FY20

₹ in Million except per share data

Particulars	FY20 Audited	FY19 Audited	Y-o-Y (%)
Income from Operations	4,440	4,196	6%
Expenses	2,675	2,587	3%
Profit from Operations before Other Income, Finance Costs and Exceptional Item	1,765	1,609	10%
Other Income	57	50	12%
Profit from ordinary activities before Finance Costs and Exceptional Item	1,822	1,659	10%
Finance costs	30	39	(23%)
Profit from ordinary activities before exceptional item and tax	1,792	1,620	11%
Profit from ordinary activities before tax	1,792	1,620	11%
Tax	461	461	0%
Net Profit for the period	1,330	1,159	15%
Earnings Per Share	11.58	9.95

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13 Earnings Presentation | Q3FY21

Balance Sheet (Consolidated) – FY20

₹ in Million	₹ in Million	₹ in Million
Particulars	FY20 Audited	FY19 Audited
Assets
Property, plant and equipment	2,042	1,618
Capital work-in-progress	101	105
Intangible assets	646	622
Goodwill	2,941	2,715
Other non-current assets	195	183
Current assets	3,813	2,820
Assets held for sale	48	48
Total Assets	9,786	8,111
Equity And Liabilities
Equity share capital	223	223
Other equity	8,173	6,565
Non-controlling interest	278	260
Non-current liabilities	461	358
Current liabilities	596	651
Liabilities classified as held for sale	55	54
Total – Equity and Liabilities	9,786	8,111

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14 Earnings Presentation | Q3FY21

Strong Financial Performance – FY20

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₹ in Million
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Revenue from Operations EBIDTA & EBIDTA Margin (%)
2,500 47% 46% 50%
4,440 43%
4,196 48%
3,431 3,957 2,000 45% 42% 46%
2,938 1,500 1,654 44%
1,000 1,389 1,534 2,023 42%
1,819 40%
500
38%
0 36%
FY 16 FY 17 FY 18 FY 19 FY 20
FY 16 FY 17 FY 18 FY 19 FY 20
EBIDTA EBIDTA MARGIN
CAGR=10.87% CAGR=9.84%
PBT & PBT Margin (%) PAT & PAT Margin (%)
26% 30%
40% 40% 1200 28% 35%
1,750 1,550 41% 39% 50%45% 1000 27% 24% 30%
1,350 35% 40% 800 1,1591,330 25%
1,150 950 750 1,182 1,371 1,390 1,620 1,792 35%30%25%20% 600400 768 929 936 20%15%10%
550 350 15%10% 200 5%
150 5% 0 0%
(50) 0% FY 16 FY 17 FY 18 FY 19 FY 20
FY 16 FY 17 FY 18 FY 19 FY 20
PBT PBT Margin (%) PAT PAT Margin (%)
CAGR=10.95% CAGR=14.72%
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Note: As per IGAAP | FY17, FY18, FY19 – as per IndAs All numbers are on Consolidated basis

ROE = Profit after tax / Average shareholder equity; RoCE = (Net Profit before Tax , Exceptional and extraordinary items + Finance cost) / Average (Net debt + Networth)

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15 Earnings Presentation | Q3FY21

Strong Financial Performance – FY20

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Net Working Capital (Days) Net Worth (₹ mn)
8,396
119
6,788
115
5,591
112
4,640
108
105 2,781
FY 16 FY 17 FY 18 FY 19 FY 20
FY 16 FY 17 FY 18 FY 19 FY 20
ROE (%) & ROCE (%) Net Debt to Equity (x)
34%
0.4
27% 27%
24%
21%
28%
19% 18% 19% 0.1
16%
0.01 0.02 0.00
FY 16 FY 17 FY 18 FY 19 FY 20
FY 16 FY 17 FY 18 FY 19 FY 20
ROE (%) ROCE (%)
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Note: As per IGAAP | FY17, FY18 & FY19 – as per IndAs

All numbers are on Consolidated basis

Net working capital days =((Trade receivables + inventories – Trade payables)/ Revenue from operations)*365 Net Debt = Long term debt + short term debt + current maturities of long term debt – Cash & Cash Equivalent

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16 Earnings Presentation | Q3FY21

Shareholder Information

Stock Data(As on 11thFebruary 2021)	Stock Data(As on 11thFebruary 2021)
Market Capitalization (₹)	41,623 mn
Shares Outstanding	111.72 mn
Free Float	4.55 mn
Symbol (NSE/ BSE)	ADVENZYMES / 540025

Stock Chart (As on 11[th ] February 2021)

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Source: BSE, NSE, Thomson Reuters

Top 5 Institutional Holders (As on 05th February 2021)	Top 5 Institutional Holders (As on 05th February 2021)
Institutions	OS (%)
ORBIMED ASIA III MAURITIUS	12.09
HDFC AMC	5.63
NALANDA INDIA EQUITY FUND	4.75
OLD WELL EMERGING MARKETS	0.64
UTI – HEALTHCARE FUND	0.39
55.39% 23.39% 21.22% Shareholding Pattern (%) Promoters Institutions Public

Note: Data mentioned in above chart is as on 31[st] December 2020

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17 Earnings Presentation | Q3FY21

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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 Web: www.advancedenzymes.com Fax: + 91-22-25835159

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