Aether Industries Limited — Interim / Quarterly Report 2023

Jan 20, 2023

January 20, 2023

Ref. No.: AIL/SE/96/2022-23

To,

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai-400001, MH.

Scrip Code: 543534

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai-400051, MH.

Symbol: AETHER

Dear Madam / Sir,

Subject: Presentation on Financial Results

In accordance with Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the presentation on Financial Results for the Third Quarter ended on December 31, 2022 is enclosed herewith.

We request you to kindly take the information on your records.

Thank you.

For Aether Industries Limited

Chitrarth Rajan Parghi Company Secretary & Compliance Officer

Encl.: As attached

January 20, 2023

Q3 / FY23 Presentation

AETHER.NS 543534

R&D Driven Approach

Growth Engines

The True Story

1st Time In India

[8 x 8] Matrix of chemistry / technology competencies developed in-house, from scratch, which caters to various segments of chemical industry

Deep rooted R&D-led product development team comprising 207 highly qualified people including 90 scientists (with PhDs or M. Sc. / B. Sc. degrees) and 117 engineers (DEC-22)

Successfully launched 3 business models in 5 years into commercialisation: 1. Large scale manufacturing 2. CRAMS 3. Contract / Exclusive manufacturing

Most of our advanced intermediates and specialty chemicals manufactured for the first time in India

Rich Infrastructure

Extensively expanded R&D, pilot plant, and manufacturing (2 new greenfield projects, all fully DCS automated) capabilities

Unique Team

Techno-commercial excellence in promoter group, expert global technology and BD team, average age of 800+ staff is 32 years (DEC-22)

Marquee Customers

200+ International and domestic customers, customer base includes top innovator MNC companies across industry spectrum

We are one of the fastest growing specialty chemical companies in India, growing at a CAGR of nearly 52.9% between Fiscal 2018 and Fiscal 2022

One of the Fastest Growing

Why Aether?

Highlights

New Products

New product (one) launched under Large Scale Manufacturing business model having end application in pharmaceutical industry.

New Customers

We have started business with 10 new customers during the quarter across all business models.

40 under 40

Dr. Aman Desai has been awarded the 40 under 40 award by Business World.

Site 4

Land Parcel for Site 4 increased from 8,000 to 18,000 sq. Mtrs. Land procurement in progress.

Team Members

More than 50 new team members have joined Aether in Q3 FY23 across all departments.

Customer Audits

Successfully concluded eight customer audits and certification audits in Q3 FY23.

507

Total Revenue

EBITDA

PAT

21.2%

29.7%

"The current decade and beyond is a Golden Era for the Indian Chemical Industry", Dr. Aman Desai (Promoter / Whole Time Director at Aether)

I reiterate his thoughts in the business of Aether, where we are seeing that the demand for our products, which was reduced in the first two quarters of FY-23, has started to come back from Q3 of FY-23 and we are optimistic to have better demands moving forward.

The CRAMS business, which is a high margins yielding business for Aether, is also showing a signficant upward trend, which is a positive sign for the growth of Aether.

- Faiz Nagariya (Chief Financial Officer)

Quarter Snapshot (INR MM)

Snapshot

Y-o-Y

Y-o-Y is comparison of Q2FY23 with Q2FY22

(INR MM)

Q-o-Q is comparison with previous quarter Q2FY23 and Q1FY23

Snapshot

9M-o-9M

9M-o-9M is comparison of 9MFY23 with 9MFY22

(INR MM)

Advanced intermediates and speciality chemicals with application across the industry spectrum

50% Large Scale Manufacturing

13%

Contract research, scale-up services, technology development, low volume high value contract manufacturing

Contract Research and Manufacturing Services - CRAMS

Manufacture under contractual supply agreements with MNCs

35% Contract / Exclusive Manufacturing

Business Segments (INR MM)

Aether Today

9M FY23

R&D has been critical to success and a differentiating factor vis-à-vis competitors

Experts at helm of R&D / CRAMS

207

Highly qualified employees, including

DECEMBER-22

164

Highly qualified employees,

including

90

Scientists with PhD / M. Sc and B. Sc

92

Scientists with PhD / M. Sc and B. Sc

MARCH-22

Consistently rising R&D expenditure

72 117

Engineers Engineers

Research and Development (INR MM)

Expansion - Site 3 Facility

Installation of Machineries

almost completed

Located diagonally opposite

to the current Manufacturing Facility 2 in GIDC, Sachin, Surat, Gujarat, India

January 2023 facility to be operational

Additional 3500 MT

capacities approximately per annum will be added

Objects of issue	Amount as perthe Offer
	Document (A)

Amount as perthe OfferDocument (A)	*AmountWithdrawn fromMonitoringAgency (B)	%AmountWithdrawn (C)	Amount Pendingto be withdrawnfrom MonitoringAgency (D = A - B)
1,630	1144	70.18%	486
1,650	1050	63.64%	600
1,379	1,379	100%	0
1,276	1140	89.34%	136
5,935	4713	79.41%	1222

• 1. Capital expenditure is in line with the timeline planned and expect to be complete within mentioned timelines.
• 2. Working Capital cycle of the company being monitored well for reducing it upto desired levels
• 3. Aether is a debt free company as all the term loans are fully paid off and working capital limits zeroed down
• 4. General corporate purpose funds being utilised for the future expansions

IPO Fund Utilisation

*Cumulative utilisation from the date of IPO

Particulars Q3FY23 Q2FY23 Q3FY22 9MFY23 9MFY22 FY22

Unaudited	Unaudited	Audited	Unaudited	Audited	Audited
1,671	1,402	1,513	4,673	4,425	5,900
34	64	24	160	68	70
1,705	1,466	1,537	4,833	4,493	5,970
790	682	758	2,303	2,149	2,880
93	89	70	254	213	270
315	262	293	850	804	1,069
507	433	416	1,426	1,327	1,751
64	54	42	163	114	155
443	378	374	1,263	1,213	1,596
4	6	36	39	100	131
439	372	338	1,224	1,113	1,465
88	100	84	295	284	375
350	272	254	929	829	1,089

Cost of goods sold = Cost of materials consumed in operation and incidental cost + Changes in inventories of finished goods and work-in-progress

Financial Results for Q2 of FY23 (INR MM)

Revenue from operations	1,67
Other income	34
Total income	1,70
Cost of goods sold #	790
Employee benefits expense	$\Theta$
Other expenses	31
EBITDA	507
Depreciation & amortization expense	64
EBIT	443
Finance cost	$\overline{\mathbf{r}}$
Profit before tax	439
Tax expenses (Current + Deferred)	88
Profit after tax	350

Corporate Information

Chemistry

Grignards and Organolithiations Ethylene Oxide Chemistry - Tandem Grignard / Ethylene Oxide Isobutylene Chemistry Hydrogenation - Asymmetric Hydrogenation Heterogeneous Catalysis Exothermic Chemistry Cross Coupling Chemistry Olefin Metathesis / Polymerisation

Chemistry

Continuous Reaction Batch Reaction High Pressure Reaction Fixed Bed Reaction Cryogenic Reaction High Vacuum Distillation Wiped Film Distillation Process Automation

Technology

SAP, AIRIS, AES Multiple Certifications Distributed Control Systems (DCS) Automation

Core Competencies

Phase 1 Phase 2 Phase 3

Concept to Create 2013 – 2016

Create to Build 2017 – 2021

Build to Scale 2022 onwards

• Incorporation of Company
• Vision to create niche in global chemical industry with creative approach towards chemistry, technology and systems
• Focus on building R&D and pilot plant capability centred around core competencies
• Commencement of R&D and pilot plant operations
• Construction of Greenfield project (Manufacturing Facility - 2)
• Commencement of manufacturing operations
• Team Aether grows from 0 to > 200

• Streamlined manufacturing for 22 products • Revenue grew from INR 1,000 MM to INR 4,500 MM within 4 years of commercial

• operations

• Largest manufacturer in the world for 4 products and sole manufacturer in India for 7 products, by volume (CY-2020)

5 ISO, ISMS and GMP accreditations

22	Products launched
130+	Global and domestic
81	Scientists (with PhDs orM. Sc. / B. Sc. degrees)

customers across 17 countries

81 Scientists (with PhDs or M. Sc. / B. Sc. degrees)

700+ Team at Aether

• Site 3 Construction work almost done, installation of plant and equipments in progress
• Land acquisition in process for 4th manufacturing facility, construction to start soon
• Launch multiple new products over immediate two fiscal years
• Continue to add new core chemistry and technology competencies
• Aggressively expand CRAMS / exclusive manufacturing business models
• Look at acquisition opportunities in USA and Europe for R&D and manufacturing assets with differentiated technology

• Bachelor of Chemical Engineering from Institute of Chemical Technology (UDCT, 1974)
• Distinguished Alumni Award by UDCT (2010)
• Prior to Aether, Founder / Chairman / MD of Anupam Rasayan (India) Limited (till 2013)
• Spearheading the continuous (flow) technology core competency
• Aether's visionary, multiple decades of experience in speciality chemicals

Ashwin Desai Founding Promoter, Managing Director

Dr. Aman Desai Promoter,

Whole Time Director

• Bachelor of Chemical Technology - ICT (UDCT, 2005), PhD in Organic Chemistry from Michigan State University (USA, 2010)

Purnima Desai Promoter, Whole Time Director

• Prior to Aether, project leader in Process Development group in Core R&D HQ of The Dow Chemical Company (USA, 2010-2012)

• Co-author of 25 publications, 4 patents in USA and published worldwide

• Distinguished Alumni Award by UDCT (2018)

• 10+ years of experience in speciality chemicals

• Bachelor of Commerce from University of Delhi (1975)

• Prior to Aether, Director at Anupam Rasayan (India) Limited (till 2013)

• Leads overall finance and accounting operations

• Multiple decades of experience in speciality chemicals

• Bachelor of Commerce from VNSG University of Commerce, Surat

• Prior to Aether, Director at Anupam Rasayan (India) Limited (till 2013)

• Handles commercial portfolio including sales, finance, strategic procurement, human resources and systems

• Extensive experience in speciality chemicals

Key Pillars

Kamalvijay Tulsian

Chairman, Non-Executive Director Decades of experience in Textile and Chemical Industry

Jeevan Lal Nagori

Non-Executive Independent Director Experience 34 years in Chemical Industries

Leja Hattiangadi

Non-Executive Independent Director Decades of experience in Engineering Contracting / Chemical Industry

Dr. Amol Kulkarni

Non-Executive Independent Director Experience 34 years as a Scientist

Ishita Manjrekar

Non-Executive Director Experience in Chemical Industry

Arun Kanodiya

Non-Executive Independent Director 15+ years of experience in Chartered Accountancy and Finance

Jitendra Vakharia

Non-Executive Independent Director Decades of experience in Chemical and Textile Industry

Rajkumar Borana

Non-Executive Independent Director Extensive experience in Textile Industry

Experienced Board

Dr. Norbert Flüggen Business Development Leader (Europe)

• Bachelor's Science (Purdue Univ. USA) and PhD Organic Chemistry (Univ. Wisconsin, USA)

• 30 years at The Dow Chemical Company (and subsidiaries) at various positions - Leader R&D Director

• Co-inventor on 22 USA patents, published worldwide

Dr. James Ringer

Business Development Leader (Americas)

• Decades of experience in Chemical Industry
• Previously at ALTANA AG (Germany)

Faiz Nagariya Chief Financial Officer

• Bachelor's Science and Master's Chem. Engg., Univ. of Pittsburgh (USA)

• Decades of experience in Chemical Industry

• Previously at the Dow Chemical Company (USA)

• Co-inventor of 7 USA patents, published worldwide

• B. Comm. (Mumbai University), FCA (ICAI)

• 25+ years experience

• Previously at Ala Metals LLC (Dubai)

SMP and KMP

Pharmaceutical

Oil and Gas

Material Science / Coatings

High performance photography

Textiles

Other Sectors

TOSOH FineChem

Select Marquee Customer Base – Domestic and Global

Quality Environment

To cover

Manufacturing

Supply Chain

Product Delivery

To ensure

Consistent Quality

Efficiency

Safety of Products

In last 3 Fiscal Years

5 7

Times, our facilities have been audited by

4 3

Customers or their external coordinates

High standards of quality for products Vibrant infrastructure installed for environment and sustainability efforts

• 100 KLPD in-house zero liquid discharge (ZLD) plant
• Triple stage multiple effect evaporator (MEE)
• Mechanical vapour recompression (MVR) plant
• Agitated thin film evaporator (ATFE)
• Reverse osmosis (RO) plant
• Soil biotechnology (SBT) platform with ozonation
• Employing cleaner chemistries, semi-continuous or continuous reaction technologies, and automation in the process

QEHS

QEHS

Health and Safety

Prioritises health and safety of employees

• Undertaking hazard and operability studies before commencing commercial production of new products
• Dedicated team of safety personnel
• Mobile application for safety and emergencies
• Modern fire-fighting and safety systems
• DCS automation system to control safety systems and processes
• Combined fire hydrant water reserve of over 2,000 m3 capacity
• Occupational Health and Safety Hazard Prevention
• Incident Management
• Health and Safety Permits
• Emergency Prevention, Preparedness, and Response
• Working and Living Conditions
• Training and Communication

ISO 9001 For Quality

ISO 14001

of workforce as Environment Team

ISO 45001

for Occupational Safety

ISO 27001 of Information Security Management for Manufacturing

INDIAN GMP

UN GLOBAL COMPACT

Annual Corporate Member

among the top 25 percent of companies

SILVER ECOVADIS MEDAL

5.4%*

of workforce as Environment Team

5.9%*

of workforce as QC/ QA/ADL Team

4.0%* of workforce as Safety Team

Environmental Social Governance

Environmental

• Adoption of the green chemistries or more accurately sustainable chemistry since inception.
• Principles of energy saving and conservation, atom economy
• 4R strategy (reduce / recover / recycle / reuse)
• Undertaking hazard and operability studies.

Social

• Focused on:
• Education ( especially for girls )
• Skill development
• Healthcare
• Total spent of Rs. 20 MM towards CSR in

9M FY23 (entire year compliance fulfilled)

• Technically sound and extensively experienced Board members
• Transparency and accountability at each level
• Adequate corporate governance helps:
• Improved capital flow
• Risk mitigation
• Reputation boost
• Effective decision making
• focus on compliance
• Higher staff retention
• Limitation of conflicts of interests

Governance

Certain statements and opinions with respect to the anticipated future performance of the company in the presentation ("forward - looking statements"), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to be correct. Such forward -looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward - looking statements. These include, among other factors, changes in economic, political, regulatory, business or other market conditions. Such forward - looking-statements only speak as at the date the presentation is provided to the recipient and the company is not under any obligation to update or revise such forward -looking statements to reflect new events or circumstances. No representation or warranty (whether express or implied) is given in respect of any information in this presentation or that this presentation is suitable for the recipient's purposes. The delivery of this presentation does not imply that the information herein is correct as at any time subsequent to the date hereof and the company has no obligation whatsoever to update any of the information or the conclusions contained herein or to correct any inaccuracies which may become apparent subsequent to the date hereof.

All rights reserved. Aether and the Aether logo are trademarks of Aether Industries Limited, registered in India

Registered Office - 8203, Road No. 08, GIDC Industrial Estate, Sachin - 394230, Surat, Gujarat, India | Board Line: +91-261-6603000 | Email ID: info@aether.co.in | Website: www.aether.co.in

Mr. Chithrarth Parghi - CS and Compliance Officer | Direct No : +91 (261) - 6603360 | Email: chitrarth@aether.co.in Mr. Ravi Bhojani - Lead Investor Relation | Direct No: +91 (261) - 6603045 | Email: ravibhojani@aether.co.in