Aether Industries Limited — Investor Presentation 2023

May 6, 2023

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May 6, 2023

Ref. No.: AIL/SE/13/2023-24

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 of Fourth Quarter and Financial year ended on March 31, 2023, is enclosed herewith.

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

Thank you.

For Aether Industries Limited

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Chitrarth Rajan Parghi Company Secretary & Compliance Officer Mem. No.: F12563

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Encl.: As attached

CHITRARTH Digitally signed by CHITRARTH RAJAN RAJAN PARGHI Date: 2023.05.06 PARGHI 16:44:32 +05'30'

Aether Industries Limited

Page 1 of 1

Registered Office: Plot No. 8203, GIDC Sachin, Surat-394230, Gujarat, India. Phone: +91-261-6603000 || Email: info@aether.co.in || Web: www.aether.co.in II CIN: L24100GJ2013PLC073434 Factory: Plot No. 8203, Beside Shakti Distillery, Near Rajkamal Chokdi, Road No. 8, Sachin GIDC, Sachin, Surat-394230, Gujarat, India.

Q4 2023 06 May, 2023

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AETHER.NS 543534

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

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Extensively expanded R&D, pilot plant, and manufacturing (2 new greenfield projects, 1 brownfield project all fully DCS automated) capabilities

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Deep-rooted R&D-led product development team comprising 233 highly qualified people including 111 scientists (with PhDs or M. Sc. / B. Sc. degrees) and 122 engineers (MARCH-23)

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Techno-commercial excellence in promoter group, expert global technology and BD team, average age of 880+ staff is 31 years (MARCH-23)

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

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

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

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We are one of the fastest growing specialty chemical companies in India, growing at a CAGR of nearly 44% between Fiscal 2018 and Fiscal 2023

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New Countries

We have started business in 4 new countries in FY23, which earmarks the growth of Aether geographically New Customers

We have started business with 13 new customers during the quarter across all business models Site 3

Commencement of operations at Greenfield Manufacturing Site 3 and launch of 3 products in LSM business model Site 5

Brick laying ceremony at Site 5 along with blood donation camp, where by 706 units of blood were collected

Team Members

More than 80 new team members joined Aether in Q4 FY23 across all departments

Customer Audits

Successfully concluded 8 customer audits and certification audits in Q4 FY23

Otsuka

Entered into the contract with Otsuka Japan for supplying 2 products as exclusive supplier

Saudi Aramco

Entered into LOI for long term contract with Saudi Aramco for Converge Polyols.

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Commenced

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

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capacities approximately per annum added

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Aether Industries Limited, executed a long-term for initially 10 years’ supply and sales agreement with Otsuka Chemicals Co., Ltd., Japan, along with Chori Co., Ltd., Japan (being the Agent of Otsuka Chemical Co., Ltd.), thereby adding more business for two of its market leading products.

The revenue targets at maturity within three years for Aether, through this agreement is Rs. 510 million per year by supplying 300 MT (combined for both the products) per year, in the Large Scale Manufacturing business model of the Company.

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Aether Industries Limited has executed a letter of intent with Saudi Aramco Technologies Company, Saudi Arabia.

The Letter of Intent captures the preliminary terms of a detailed licensing agreement towards the manufacturing and commercialization at Aether of the ConvergeÒ polyols technology and product series, the manufacturing process for which has been previously jointly developed and validated at pre-commercial scale by Aramco and Aether.

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• PhD Organic Chemistry – University of Rochester • >20 years Eastman Kodak – Worldwide Director of Process Development & Manufacturing • 7 years Senior VP Novomer, Inc.; CO2 Polyol Technology acquired by Saudi Aramco 2016 • 7 years with Saudi Aramco; President & CEO Aramco Performance Materials

Dr. Ron Valente Business Development Leader (Specialty Polyols)

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Inauguration of Manufacturing Site 5 (Panoli GIDC, Bharuch, Gujarat) was done by brick laying rituals and conducting a blood donation camp, where in various corporates in Panoli, Panoli Industries Association, Kumarpal Blood Bank and Rotary Club of Ankleshwar were part of it to make this a grand success.

Bottles of blood collected

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Q-o-Q
Q-o-Q is comparison of Q4 FY23 with Q3 FY23 (INR MM)
Revenue EBITDA PAT
Q4FY23 1,844 602 376
10% 19% 7%
Q3FY23
1,705 507 350
Y-o-Y
Y-o-Y is comparison of Q4 FY23 with Q4 FY22
Q4FY23 1,844 602 376
25% 42% 44%
Q4FY22 1,477 423 260
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FY-o-FY
FY-o-FY is comparison of FY23 with FY22 (INR MM)
Revenue EBITDA PAT
Q4FY23 6,676 2,028 1,304
12% 16% 20%
Q3FY23
5,970 1,751 1,089
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(INR MM)

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Advanced intermediates and speciality chemicals with application across the industry spectrum

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Contract research, scale-up services, technology

development, low volume high value contract manufacturing

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Manufacture under contractual supply agreements with MNCs

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FY18 885
FY19 1,473
FY20 2,489
FY21 3,249
FY22 3,955
FY23
FY18 63
FY19 202
FY20 275
FY21 359
FY22 479
FY23
FY18 130
FY19 324
FY20 223
FY21 872
FY22 1,402
FY23
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GROSS REVENUE (INR MM)
34.7% Agro
CAGR 44%
6,511
5,970
4,538
By Application 8.7% Multiple
3,038
Pharma
5.7% Photography
2,033 42.2%
4.9% Material Science
1,092
3.4% Coatings
0.4% Others
FY18 FY19 FY20 FY21 FY22 FY23
EBITDA% 30.4%
FY23
29.3%
25.3%
24.4% 24.3%
21.7%
FY18 FY19 FY20 FY21 FY22 FY23 34.0% Domestic
Contract 31.0%
52.0%
Export [#]
By Business By Region
19.5% manufacturing
Large scale 69.0%
PAT% 18.2%
manufacturing
15.7%
13.2%
11.5%
7.1% 13.0% CRAMS
1.0% Others
FY18 FY19 FY20 FY21 FY22 FY23
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R&D has been critical to success and a differentiating factor vis-à-vis competitors
Experts at helm of R&D / CRAMS Consistently rising R&D expenditure
MARCH-22 MARCH-23
7.5%
6.6%
Highly qualified employees, Highly qualified employees,
including including
4.3%
4.0%
(INR MM)
2.6%
501
393
Scientists with Scientists with
193
PhD / M. Sc and B. Sc PhD / M. Sc and B. Sc
121
53
FY19 FY20 FY21 FY22 FY23
Engineers Engineers
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1. 2. 3. 4.

					(INR MM)	(INR MM)
	Objects of issue	Amount as per	*Amount	%	Amount Pending
		the Offer	Withdrawn from	Amount	to be withdrawn
		Document (A)	Monitoring	Withdrawn (C)	from Monitoring
			Agency (B)		Agency (D = A - B)
	Funding capital expenditure requirements for the proposed	1,630	1,630	100.00%		0
	Greenfeld project
	Funding working capital requirements of the Company	1,650	1,650	100.00%		0
	Prepayment or repayment of all or a portion of certain	1,379	1,379	100.00%		0
	outstanding borrowings availed by our Company
	General Corporate Purposes	1,276	1,276	100.00%		0
	Total	5,935	5,935	100.00%		0

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Particulars Q4FY23 Q3FY23 Q4FY22 FY23	FY22 (INR MM)
Audited Unaudited Audited Audited Audited
Revenue from operations 1,838 1,671 1,475 6,511 5,900 Other income 6 34 2 165 70 Total income 1,844 1,705 1,477 6,676 5,970 Cost of goods sold # 871 790 731 3,173 2,880 Employee benefts expense 90 93 58 345 270 Other expenses 281 315 265 1,130 1,069 EBITDA 602 507 423 2,028 1,751 Depreciation & amortization expense 69 64 41 232 155 EBIT 533 443 382 1,796 1,596 Finance cost 12 4 31 51 131 Proft before tax 521 439 351 1,745 1,465 Tax expenses (Current + Deferred) 146 88 91 441 375 Proft after tax 375 351 260 1,304 1,090

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

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INR MM FY20 FY21 FY22 FY23 ASSETS Non-Current Assets Property, plant and equipment 1,206 2,065 2,355 5,333 Capital work-in-progress 172 2 577 372 Investments + Other Financial Assets 22 17 25 30 Intangible Assets 6 6 4 6 Right-of-Use Assets 82 92 211 1,122 Other non-current assets 39 12 427 185 Total non-current assets 1,527 2,194 3,600 7,048 CURRENT ASSETS Inventories 719 847 1,627 2,488 Trade receivables 630 1,082 1,635 2,590 Cash and bank balances 36 56 180 1,022 Loans + Other Financial Assets 8 235 181 25 Other current assets 85 115 474 626 Total current assets 1,478 2,335 4,098 6,751 Total Assets 3,005 4,529 7,698 13,799	INR MM FY20 FY21 FY22 FY23
	EQUITY AND LIABILITIES Equity Equity share capital 86 101 1,127 1,245 Other equity 697 1,642 2,742 11,201 Total equity 783 1,743 3,869 12,446 Non-current Liabilities Borrowings 951 1,038 1,218 0 Lease liabilities 16 27 51 145 Deferred tax liabilities (net) 76 102 139 268 Total non-current liabilities 1,043 1,167 1,408 413 Current Liabilities Borrowings 754 1,044 1,633 1 Lease liabilities 3 4 6 11 Trade payables 384 478 699 815 Other current liabilities# 39 94 85 113 Total current liabilities 1,179 1,619 2,422 940
	Total equity and liabilities 3,005 4,529 7,698 13,799

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includes Other Financial Liabilities, Other Current Liabilities, Provisions and Current Tax Liabilities (Net)

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INR MM	FY20	FY21	FY22	FY23
Cash generated from operations	309	432	284	253
Net cash from operating activities	177	232	(54)	(66)
Net cash (used in) investing activities	(480)	(766)	(1,509)	(3,484)
Cash fow from fnancing activities
Net cash used in fnancing activities	326	554	1,688	4,392
Net increase / (decrease) in cash and cash equivalents	23	20	125	842
Cash and cash equivalents at the beginning of the period	13	36	56	180
Cash and cash equivalents at the end of the period	36	56	180	1,022

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Figures in ( ) represent negative numbers

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Matrix

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

Technology

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

Systems

SAP, AIRIS, AES Multiple Certifications (DCS) Automation

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Sweet Spot

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Core competencies of chemistry, technology and systems No active manufacturer in India, made for 1[st] time in India

Minimum 4 step sequences of manufacturing and infrastructure oriented Generate adequate revenue at maturity Market leading position at product maturity

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Product selection leading to differentiated portfolio

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Ashwin Desai Founding Promoter, Managing Director

Rohan Desai Promoter, Whole Time Director

• 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

• 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

Dr. Aman Desai Promoter, Whole Time Director

Purnima Desai Promoter, Whole Time Director

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

• 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

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

Ishita Manjrekar Non-Executive Director Experience in Chemical Industry

Jeevan Lal Nagori Non-Executive Independent Director Experience 34 years in Chemical Industries Arun Kanodiya Non-Executive Independent Director 15+ years of experience in Chartered Accountancy and Finance

Leja Hattiangadi Non-Executive Independent Director

Decades of experience in Engineering Contracting / Chemical Industry

Jitendra Vakharia

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

Dr. Amol Kulkarni

Non-Executive Independent Director Experience 34 years as a Scientist

Rajkumar Borana Non-Executive Independent Director Extensive experience in Textile Industry

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Dr. James Ringer

(Americas)

• 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

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

• Decades of experience in Chemical Industry

Dr. Norbert Flüggen (Europe)

• Diploma Physics and Doctorate of Natural Sciences (PhD), Univ. Hannover (Germany)

• Decades of experience in Chemical Industry

• Previously at ALTANA AG (Germany)

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

• 25+ years experience

• Previously at Ala Metals LLC (Dubai)

• Previously at the Dow Chemical Company (USA)

• Co-inventor of 7 USA patents, published worldwide

Raymond Roach (Americas)

Faiz Nagariya Chief Financial Officer

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TOSOH FineChem

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Health and Safety

• 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

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For Quality

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for Occupational Safety

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of workforce as Environment Team of Information Security Management

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Audited Sites for Together for Sustainability for Manufacturing Annual Corporate Member among the top 25 percent of companies

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of workforce as QC/QA/ADL Team

of workforce as of workforce as Safety Team Environment Team

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• as on March 31, 2023

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Quality

High standards of quality for products To cover To ensure Manufacturing Consistent Quality Supply Chain Efficiency Product Delivery Safety of Products In FY 23 Times, our facilities have Customers or their been audited by external auditors

Environment

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

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• 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.

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• Focused on:

• Education ( especially for girls )

• Skill development

• Healthcare

• Total spent of Rs. 20 MM towards CSR in FY23 (entire year compliance fulfilled)

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• 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

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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. Chitrarth Parghi - CS and Compliance Officer | Direct No : +91 (261) - 6603360 | Email: chitrarth@aether.co.in