Advanced Enzyme Technologies Limited — Investor Presentation 2021

Nov 2, 2021

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ADVANCED ENZYME TECHNOLOGIES LIMITED Earnings Presentation - November 2021

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,” “anticipate,” “intend,” “estimate,” “outlook,” “will,” “may,” “continue,” “should” and similar expressions identify forward-looking statements.

Forward-looking statements include statements regarding objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; developments of the Company’s markets; the impact of regulatory initiatives; and the strength of competitors. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in records and other data available from third parties.

Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and maybe beyond our control. Such risks, uncertainties, contingencies and other important factors could cause the actual results of the Company or the industry to differ materially from those results expressed or implied in this presentation by such forward-looking statements.

The information, opinions and forward-looking statements contained in this presentation speak only as at the date of this presentation and are subject to change without notice. The Company and its respective agents, employees or advisors do not intend to, and expressly disclaim any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this presentation to reflect any change in events, conditions or circumstances beyond what is required by applicable law or applicable stock exchange rules and regulations.

By viewing this presentation, you acknowledge and agree to be bound by the foregoing limitations and restrictions.

Earnings Presentation | Q2 FY22

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3

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Table of Conte Result Summary Segmental Performance Geographical Performance Result Summary FY21 Industry/Opportunity Size Unique Investment Case Focus Area Going Ahead Shareholders’ Information	nt	05 08 12 15 26 28 32 33

H1 FY22 Highlights

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Sales ₹ 2,641 Mn Consolidated sales grew +14%

EBITDA Margin of 42%

Consolidated EBITDA at ₹1,121 mn

Margin lower by 600 bps impacted by higher raw material cost & logistics

Free Cash Flow of ₹ 444 Mn

Strong cash generation in all the divisions

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Stake Acquisition

Acquired additional 15% stake in JC Biotech Holding increased from 70% to 85%

Integration

Synergy realisation on-track on the latest acquisitions

Portfolio Enhancement

Forayed into B2C segment in India with the launch of Immunity bundle (NIH accredited), other products in pipeline

Now available at www.advancedenzymesdirect.com

Earnings Presentation | Q2 FY22

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Results Summary – Q2 FY22 (Consolidated) Y-o-Y

*Revenue (₹ mn)

EBITDA (₹ mn)

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585
1,271
1,204
493
Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22
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PAT (₹ mn)

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386
303
Q2 FY21 Q2 FY22
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• 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 ₹ 493 million in the Q2 FY22 as against ₹ 585 million in Q2 FY21 on y-o-y basis

• PAT decreased to ₹ 303 million in the Q2 FY22 from ₹ 386 million in the Q2 FY21, a decline of 22% on y-o-y basis

• EBITDA margin and PAT margin during Q2 FY22 stands at 39% and 24% respectively

Notes:

1. On Consolidated Basis

2. PAT is before minority

3. Ind AS adjustments are carried out on account of commission, discount. And provision for sales return

Earnings Presentation | Q2 FY22

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Results Summary – Q2 FY22 (Consolidated) Q-o-Q

*Revenue (₹ mn)

EBITDA (₹ mn)

PAT (₹ mn)

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1,370 627 397
1,271
493
303
Q1 FY22 Q2 FY22 Q1 FY22 Q2 FY22 Q2 FY21 Q2 FY22
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• 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 ₹ 493 million in the Q2 FY22 as against ₹ 627 million in Q1 FY22 on Q-o-Q basis

• PAT decreased to ₹ 303 million in the Q2 FY22 from ₹ 397 million in the Q1 FY22, a decline of 24% on Q-o-Q basis

Notes:

1. On Consolidated Basis

2. PAT is before minority

3. Ind AS adjustments are carried out on account of commission, discount. And provision for sales return

Earnings Presentation | Q2 FY22

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Results Summary – H1 FY22 (Consolidated) Y-o-Y

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Revenue (₹ mn)
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EBITDA (₹ mn)

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2%
2,641
1,102 1,120
2,309
H1 FY21 H1 FY22 H1 FY21 H1 FY22
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PAT (₹ mn)

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734
700
H1 FY21 H1 FY22
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• 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 ₹ 1,120 million in the H1 FY22 as against ₹ 1,102 million in H1 FY21 on y-o-y basis

• PAT decreased to ₹ 700 million in the H1 FY22 from ₹ 734 million in the H1 FY21, a decline of 5% on y-o-y basis

• EBITDA margin and PAT margin during H1 FY22 stands at 42% and 27% respectively

Notes:

1. On Consolidated Basis

2. PAT is before minority

3. Ind AS adjustments are carried out on account of commission, discount. And provision for sales return

Earnings Presentation | Q2 FY22

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Human Nutrition

(₹ in Million)

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Q2 FY22

Commentary:

• The human nutrition segment contributed around 72% during the quarter in the total revenue from operations

Q2 FY22 920 Q2 FY21 885

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+04%
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72% of Sales

• This segment grew by 4% during the quarter from ₹ 885 million in Q2 FY21 to ₹ 920 million in Q2 FY22

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H1 FY22
Commentary:
• The human nutrition segment contributed around 69%
H1 FY22 1,812
during the first half in the total revenue from operations
H1 FY21 1,765 [+03%] 69% • This segment grew by 3% during the first half from ₹ 1,765
million in H1 FY21 to ₹ 1,812 million in H1 FY22
of Sales
1,089
868 885 925 892 920
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22
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Earnings Presentation | Q2 FY22

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Animal Nutrition

(₹ in Million)

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Q2 FY22

Commentary:

• The Animal nutrition segment contributed about 11% during the quarter in the total revenue from operations

Q2 FY22 136 +03% Q2 FY21 132

11% of Sales

• This segment grew by 3% on y-o-y basis to ₹ 136 million in Q2 FY22 as against

• ₹ 132 million in Q2 FY21, and it de-grew by 3% on q-o-q basis

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H1 FY22

Commentary:

• The Animal nutrition segment contributed around 10% during the first half in the total revenue from operations

H1 FY22 276 +16% H1 FY21 238

10% of Sales

• This segment performed exceptionally well and grew by 16% on y-o-y basis to ₹ 276 million in H1 FY22 as against ₹ 238 million in H1 FY21

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132 131 140 136
108 105
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22
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Earnings Presentation | Q2 FY22

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Industrial Bio-Processing

(₹ in Million)

Industrial Bio-Processing
Q2 FY22 118 Q2 FY21 187 -37%	H1 FY22 321
	H1 FY21 305

Commentary of Q2 FY22 :

• The Industrial Bio-Processing segment contributed about 9% during the quarter in the total revenue from operations which was 16% during the same quarter last year

• This segment underperformed by 37% on y-o-y basis to ₹ 118 million in Q2 FY22 from ₹ 187 million in Q2 FY21

• In this segment, food business contributed 7% in the overall revenue and stood at ₹ 86 million while the Non-Food business contributed 2% and stood at ₹ 32 million during the quarter

Commentary of H1 FY22:

• The Industrial Bio-Processing segment contributed about 12% during the first half in the total revenue from operations which was 14% during the same period last year

• This segment grew by 5% on y-o-y basis to ₹ 321 million in H1 FY22 from ₹ 305 million in H1 FY21

• In this segment, food business contributed 12% in the overall revenue and stood at ₹ 257 million while the Non-Food business contributed 2% and stood at ₹ 64 million during the first half

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197 204
187 183
131 118
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22
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+05%
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Q2 FY22

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86 mn Food

7%

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09%
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of Sales
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H1 FY22
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12%
of Sales
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257 mn Food

10%

32 mn Non-Food 2%

64 mn Non-Food 2%

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Earnings Presentation | Q2 FY22

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Specialized Manufacturing

The Specialized manufacturing segment is newly added to the revenue stream as synergy from the acquisition of SciTech Specialties (SSPL)

In Specialized manufacturing, we manufacture products based on effervescent technology

These effervescent products extends our solutions in Nutraceutical, Pharmaceutical, Bakery, Washing solutions and other Speciality products

This segment contributed approx. 8% during the quarter in the total revenue from operations which is ₹ 97 million

SciTech Specialties will also help us in strengthening our B2C segment

Q2 FY22

Q2 FY22 97 -28% Q1 FY22 134

H1 FY22

H1 FY22 232 +100% H1 FY21 0

(₹ in Million)

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8%
of Sales
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9%
of Sales
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Earnings Presentation | Q2 FY22

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Geographical Performance

(₹ in Million)

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India 47% +18% Q2 FY22 594 Q2 FY21 504 Q2 FY22	India 47% +18% Q2 FY22 594 Q2 FY21 504 Q2 FY22		Americas 40% -02% Q2 FY22 511 Q2 FY21 519		Europe 04% +04% Q2 FY22 53 Q2 FY21 51		Asia 09% +18% Q2 FY22 109* Q2 FY21 93		Rest of the World 00% -92% Q2 FY22 03 Q2 FY21 37
H1 FY22	45% +14% H1 FY22 1,171 H1 FY21 1,024		39% +04% H1 FY22 1,040 H1 FY21 999		06% +45% H1 FY22 168 H1 FY21 116		7% +53% H1 FY22 189 H1 FY21 124		3% +60% H1 FY22 72 H1 FY21 45

*Asia is excluding India

Earnings Presentation | Q2 FY22

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Profit & Loss (Consolidated) – Q2 FY22 & H1 FY22

(₹ in Million)

Particulars	Q2 FY22 Un-Audited	Q1 FY21 Un-Audited	Q2 FY21 Un-Audited	Y-o-Y (%)	H1 FY22 Un-Audited	H1 FY21 Un-Audited	Y-o-Y (%)	FY21 Audited
Income from Operations	1,271	1,370	1,204	+06	2,641	2,309	+14	5,018
Expenses (Ex. Finance cost)	864	827	686	+26	1,691	1,342	+26	2,990
Profit from Operations before Other Income, Finance Costs and Exceptional Item	407	543	518	-21	950	967	-2	2,028
Other Income	9	9	6	54	18	58	-68	88
Profit from ordinary activities before Finance Costs and Exceptional Item	416	552	524	-21	968	1,025	-6	2,116
Finance costs	3	5	4	-22	8	8	-6	16
Profit from ordinary activities before tax	413	547	520	-21	960	1,017	-1	2,100
Tax	110	150	134	-18	260	283	-8	588
Net Profit for the period	303	397	386	-22	700	734	-5	1,512
Earnings Per Share	2.66	3.40	3.33		6.05	6.40		13.07

Earnings Presentation | Q2 FY22

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Balance Sheet (Consolidated) – H1 FY22

(₹ in Million)

Particulars	H1 FY22 Un-Audited		H1 FY21 Un-Audited		H1 FY20 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		170		185
Current assets		5,445		4,452		3,396
Assets held for sale		-		48		48
TOTAL- ASSETS		11,818		10,301		8,850
EQUITY AND LIABILITIES
Equity share capital		224		223		223
Other equity		10,028		8,743		7,215
Non-controlling interest		510		291		267
Non-current liabilities		520		432		460
Current liabilities		536		557		630
Liabilities classified as held for sale		-		55		55
TOTAL- EQUITY AND LIABILITIES		11,818		10,301		8,850

Earnings Presentation | Q2 FY22

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Results Summary – FY21 (Consolidated) Y-o-Y

*Revenue (₹ mn)

EBITDA (₹ mn)

PAT (₹ mn)

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2,315
5,018
4,440
2,023
1,515
1,330
FY20 FY21 FY20 FY21 FY20 FY21
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Animal HC Human HC
FY21 475 FY21 3,786
11% 18%
FY20 536 FY20 3,211
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Bio Processing
FY21 678
1%
FY20 683
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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.

5. Product categorywise revenue does not include SSPL numbers

Earnings Presentation | Q2 FY22

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FY20

Revenue Split – FY21 vs. FY20

FY21

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14%
9%
Human HC
Product Animal HC
Category-wise (%)
Bio-Processing
77%
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2%
4%
Asia (ex- India)
Others
Geographical 42% India
Revenue Split (%)
Europe
46%
USA
6%
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15%
Human HC
12%
Product Animal HC
Category-wise (%)
Bio-Processing
73%
2%
6%
Asia (ex- India)
Others
42%
Geographical India
Revenue Split (%)
Europe
43% USA
7%
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1. On Consolidated Basis

2. EBIDTA is including other income

3. Segment-wise revenue does not include other operating income

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

5. Product categorywise revenue does not include SSPL numbers

Earnings Presentation | Q2 FY22

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(₹ in Million)

Strong Financial Performance – FY21

Revenue from Operations

EBIDTA & EBIDTA Margin (%)

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5,018 2,500 46% 50%
4,440 46% 48%
3,957 4,196 2,000 43%
3,431 45% 42% 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 17 FY 18 FY 19 FY 20 FY 21
EBIDTA EBIDTA MARGIN
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PBT & PBT Margin (%)

PAT & PAT Margin (%)

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40% 42%
1,750 39% 50%
1,550 41% 35% 45%
1,350 40%
1,150 35%30% CAGR
950
25%
750 11.30%
20%
550 15%
350 10%
150 1,371 1,390 1,620 1,792 2,104 5%
(50) 0%
FY 17 FY 18 FY 19 FY 20 FY 21
PBT PBT Margin (%)
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30%
28% 30% 35%
27% 24% 30%
25%
20% CAGR
15% 13.01%
10%
929 936 1,159 1,330 1,515 5%
0%
FY 17 FY 18 FY 19 FY 20 FY 21
PAT PAT Margin (%)
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Note: All the numbers are 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)

Earnings Presentation | Q2 FY22

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Strong Financial Performance – FY21

Net Working Capital (Days)

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120
119
116
108
105
FY 17 FY 18 FY 19 FY 20 FY 21
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ROE (%) & ROCE (%)

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27.00% 27.00%
24.00%
22.80% 22.50%
19.00% 19.00%
18.00% 17.50% 17.30%
FY 17 FY 18 FY 19 FY 20 FY 21
ROE (%) ROCE (%)
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Net Worth (₹ mn)

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9,699
8,397
6,788
5,591
4,640
FY 17 FY 18 FY 19 FY 20 FY 21
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Net Debt to Equity (x)

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0.1
0.02 0.02 0.02
0.01
FY 17 FY 18 FY 19 FY 20 FY 21
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Note: All the numbers are 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

Earnings Presentation | Q2 FY22

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Balance Sheet (Consolidated)

(₹ in Million)

Particulars	FY21 Audited		FY20 Audited		FY19 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		5,162		3,757		2,820
Assets held for sale		0		48		48
Total Assets		11,527		9,786		8,111
Equity And Liabilities
Equity share capital		223		223		223
Other equity		9,483		8,173		6,565
Non-controlling interest		601		278		260
Non-current liabilities		543		461		358
Current liabilities		677		596		651
Liabilities classified as held for sale		0		55		54
Total – Equity and Liabilities		11,527		9,786		8,111

Earnings Presentation | Q2 FY22

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Annexure

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Earnings Presentation | Q2 FY22

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Company Overview

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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 ecofriendly enzymatic solutions.

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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Mission

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

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.

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Vision

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

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

Earnings Presentation | Q2 FY22

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Advanced Enzyme Technologies Limited – A Rising Global Star

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} 9
Manufacturing Units
India - 7 USA - 2
7
R&D Units
India – 5 | USA – 1 | Germany –1
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68+ 400+
Enzymes Proprietary
& Probiotics Products
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700+
Customers
Worldwide
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45+ 750+
Countries Employees
Worldwide Presence
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1 [st]
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Indian enzyme company

2[nd]

Highest market share in India

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2[nd]

Listed integrated enzyme player globally

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13 12 [#] 5 500 25+
Patents Food Enzyme Dossiers GRAS Dossier m [3] Fermentation Years of Fermentation
filed with EFSA evaluated by US FDA Capacity Experience
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Note: Facts & Figures as on 31[st] March, 2021

• Patents includes the filed applications

• Food Dossier filed with EFSA, out of which positive R&D Units opinion is received for 4 Dossiers & 8 are under evaluation

**No question letter received for 2 Dossier, another 3 are under evaluation All the numbers are as per IndAs Source: Freedonia

Earnings Presentation | Q2 FY22

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Brief History and Evolution

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2012
• Equity investment by 2017
2005 Kotak Private Equity • Acquired 100% stake
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 SciTech Specialities
International is Started fermentation Enzyme Technologies • 2nd fermentation • 1st GRAS dossier with 2 manufacturing
founded by Mr. V.L. facility at Sinnar, Limited (or Advanced facility commissioned was filed with facilities and 1 R&D
Rathi Maharashtra Enzymes) at Pithampur, Indore USFDA unit
1989 2001 2011 2016 2018
Advanced R&D centres (Thane Takeover of Cal-India • Floated IPO • 4 food enzymes got
Biochemicals Pvt Ltd. and Sinnar) Foods International – • Acquired 70% stake in approved as a processing
Is incorporated recognized by DSIR USA presence JC Biotech with a aid with Food Safety
fermentation facility at Standard Authority of
Ongole, Andhra India (FSSAI)
Pradesh • 4 enzymes are registered
with REACH -ECHA
(European Chemical
Agency)
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• 4 enzymes are registered with REACH -ECHA (European Chemical Agency)

Note : * through Kotak India Venture Fund I, Kotak Employees Investment Trust and Kotak India Venture (Offshore) Fund

Earnings Presentation | Q2 FY22

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Board of Directors

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Mr. Vasant Rathi Chairman and Non-Executive Director

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Mr. Pramod Kasat Independent Director

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Mr. Sunny Sharma Non-Executive Director

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Mr. Mukund M. Kabra Whole-time Director

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Ms. Rasika Rathi Non-Executive Director

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Ms. Rajshree Patel Independent Director

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Mr. Kedar Desai Independent Director

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Mr. Vinod Jajoo Independent Director

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Mr. Rajesh Sharma Independent Director

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Mr. Vilas Aurangabadkar Independent Director

Earnings Presentation | Q2 FY22

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Management Team

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Mr. Beni Prasad Rauka Chief Financial Officer

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Ms. Rasika Rathi

General Counsel / Vice President And Secretary – Advanced Enzymes, USA

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Mr. Dipak Roda

Vice President / Market & Business Development

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Dr. Michael Puls

Managing Director /Head Of Research and Development - Evoxx Technologies, Germany

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Mr. Harshad Doshi

CFO & COO - Advanced Enzymes, USA

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Mr. Sanjay Basantani Company Secretary & Head Legal

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Ms. Martina Doering

Managing Director /Head Of Business Development - Evoxx Technologies, Germany

Earnings Presentation | Q2 FY22

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How Big is the Opportunity?

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Global Probiotics Market
$4Bn
9%
$6Bn
13%
$38Bn
78% $48Bn
Grow at a
CAGR 7.4%
till 2025
Animal Feed Dietary Supplements Functional Food & Beverages
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Competitive Scenario in the Global Enzymes and Probiotics Markets Nutraceutical DSM, Deerland Probiotics Chr. Hansen, Sabinsa, Kerry, Unique Biotech Bio-Catalysis Codexis, Cambrex Animal Nutrition Novozymes, DSM, Kemin, Novus, and other regional players Food: AB Enzymes, DSM, Novozymes Bio-Processing Non-Food: Novozymes, DuPont

Global Enzymes Market

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Grow at a $10.2Bn $4.55Bn
CAGR 3.5%
till 2025
$3.57Bn
$1.02Bn $300Mn
$60Mn
$300Mn
$400Mn
Food & Beverages Animal Feed Others
Food & Beverages Animal Feed Human Nutrition
Dietary Supplements Bio-Catalysis Bakery
Other Technical Enzymes
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Source: ResearchandMarkets Report, 2019-20

Earnings Presentation | Q2 FY22

26

What we are Aiming in the Opportunity?

Focus Area Opportunity Size Addressable market for AETL over next 5 years**	AETL’s Current Share of Revenue
	FY21 FY20
Human Nutrition $ 400 mn $ 200 mn	$ 39 mn, 57% $ 38.4 mn, 61%
Bio-catalysis $ 60 mn $ 30 mn*	$ 2.2 mn, 3% $ 1.3 mn, 2%
Baking $ 300 mn $ 30 mn	$ 6.3 mn#, 9% $ 7.5 mn, 12%
Animal Nutrition $ 1.02 bn $ 40 mn	$ 6.4 mn, 9% $ 7.6 mn, 12%
Probiotics $ 48 bn Majority of the market is untapped, so this a huge opportunity	$ 9.8 mn, 14% $ 5.6 mn, 9%

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• **Addressable market is as per Company’s own estimates

• *As of now we are considering the India only opportunity for Bio-catalysis

• Includes other food-processing enzymes

Source: ResearchandMarkets Report, 2019-20

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Earnings Presentation | Q2 FY22

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What Makes AETL a Unique Investment Case?

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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
Enzyme Value Chain Performance
UNIQUE INVESTMENT CASE
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Earnings Presentation | Q2 FY22

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Integrated Player with Presence Across the Enzyme Value Chain

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Research & Development Manufacturing
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Marketing & Distribution

Earnings Presentation | Q2 FY22

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Specialized Business With High Entry Barriers

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Technocrat Promoters Cumulative experience of 7+ decades in the global enzyme industry Sustained Research & Development Consistent Investment (4%-5% of topline) into R&D over the past 15+ years

Manufacturing Expertise Specialized technical expertise in microbial fermentation developed over the last 25+ years

Proven Enzyme Development Capabilities Proven Expertise in Successfully Developing Enzymes; Journey from only 7 in 1994 to 68+ today

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Global Competitiveness

Amongst the Lowest Cost Manufacturers in the World, therefore our Gross margin stays in the range of 75%-80% (Benchmarked both in terms of Capex & Opex)

Diverse Product Range & Customer Base 400+ Products, 700+ Customers Worldwide

Credible Market Presence

Presence of more than 3 decades in the industry with prolonged & dedicated "enzyme" focus

Invaluable Experience & Customer Insights Decades of Experience in Solving Customer Problems, and Invaluable Product & Process Insights

Earnings Presentation | Q2 FY22

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Future Growth Drivers

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Continued
Investment in R&D
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Broaden & Deepen
Geographical Presence
Inorganic
Expansion
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• Identify Product gaps and Develop new Enzymes, Probiotics & Solutions thereof

• Expand Competencies in Enzymes & Probiotics, Discovery and Genetic Engineering

• Increased focus on high return applications where AETL has strategic advantages

• Build Strategic Partnerships in Key Markets for Focus Segments

• Acquisition of Key Technologies, Competencies & Skill-sets which Enable Consolidation and/or Entry into New Market Segments

• Acquisition of Client Relationships & Businesses in Key Focus Markets

Earnings Presentation | Q2 FY22

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Focus Areas Going Ahead

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Animal Nutrition

• Continuing conduct trials and studies to bring newer and effective nutritional products, which may improve the efficacy of animal feeds

• Registering and introducing more products in the domestic as well as in the international markets.

• Expand its sales and marketing team in USA, MENA and Asian market

• Targeting to strengthen the geographical reach and distribution network by appointing more distributors in the overseas markets

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Probiotics

• To introduce more probiotics products in Human Nutrition for the immunity development, active health food, gut health and various nutraceutical applications

• To launch more products on immunity development, digestion improvement, and increase nutritional level of feed in the Animal Nutrition

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Bio-Catalysis

• Developing bio catalysis for API manufacturers, providing enzymatic based solutions that are target specific, helping them to save cost of energy, time and use of chemicals

• Couple of products are under the advanced stage of trials at plant level by the API manufacturers

• This is one of the opportunities, where your Company will continue its efforts and focus

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Baking

• In Bio-processing division, our focus is on Baking Solutions

• We have got positive response for the products in terms of efficacy and performance

• Confident to expand in Europe, Americas and Rest of World to tap the available opportunities by offering a value based approach in the Baking Industry

Earnings Presentation | Q2 FY22

32

Shareholders Information

Stock Data (As on 31[st ] Oct 2021)

Market Capitalization (₹)	42,141 mn
Shares Outstanding	111.72 mn
Free Float	33.98%
Symbol (NSE/ BSE)	ADVENZYMES / 540025

Stock Chart (As on 31[st ] Oct 2021)

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600
500
400
377.00
300
302.00
200
Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21
Source: NSE
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Top 5 Institutional Holders (As on 31[st ] Oct 2021)

Institutions	OS (%)
ORBIMED ASIA III MAURITIUS	12.09
NALANDA INDIA EQUITY FUND	4.74
HDFC AMC	4.21
ICICI PRUDENTIAL MF	2.50
UTI MF	1.61

Shareholding Pattern (%) (As on 30[th ] Sept 2021)

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22.52%
Promoters
52.55% Institutions
24.93% Public
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Earnings Presentation | Q2 FY22

33

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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

Fax: + 91-22-25835159

Web: www.advancedenzymes.com CIN No: L24200MH1989PLC051018

Investor Relations Contact: Ronak Saraf

Manager - Investor Relations ir@advancedenzymes.com +91 86578 64146