Aether Industries Limited

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May 21, 2024

Ref. No.: AIL/SE/13/2024-25

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, 2024, is enclosed herewith.

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

Thanking 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 annexed

CHITRARTH RAJAN PARGHI

Digitally signed by CHITRARTH RAJAN PARGHI Date: 2024.05.21 13:45:57 +05'30'

Page 1 of 1

Registered Office: Plot No. 8203, GIDC Sachin, Surat-394230, Gujarat, India. Phone: +91-261-6603000 || Email: [email protected] || 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.

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FY24 May 21, 2024

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AETHER.NS | 543534

HIGHLIGHTS

New Customers

Customer Audits Successfully concluded 8 customer audits and certification audits in Q4 FY24

Team Members More than 36 new team members joined Aether in Q4 FY24 across all departments

Fire accident

Fire accident at Manufacturing Facility II, damaging Plant 2 majorly. Revocation in place for 75% of the Site II

We have started business with 10 new customers during the quarter across all business models Site 3++ Expansion

Site 5 Expansion

Site 4 Expansion

EC approval received, wall fencing work completed, ground levelling work started along with application for various regulatory approvals. Operational by Q4FY26

Regulatory approvals in place, civil work on-going as well as procurement of machineries and equipments. Expected to be operational by Q4FY25

Commissioning completed, with validation batches being manufactured. Plant commissioned in March 2024.

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SNAPSHOT

Q-o-Q Q-o-Q is comparison of Q4 FY24 with Q3 FY24

(INR MM) REVENUE EBITDA PAT Q4FY24 12% 1% 1287 157 10 23% 59% 95% 11% Q3FY24 22% 1682 378 191

Impact on margins because of following reasons:

Compensation paid to the victims amounting to INR 24.00 MM
• Stock write off due to fire accident, valued INR 138.97 MM
Hospitalisation expenses for the injured during the fire accident INR 21.32 MM
Incremental Insurance Premium incurred amounting to INR. 29.57 MM on account of claim lodgement with insurance company
Impact on revenue due to fire accident, consequent events of closure of manufacturing site 2 for a few months and unavailability of the facility for operations

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SNAPSHOT

FY-o-FY FY-o-FY is comparison of FY24 with FY23 (INR MM) REVENUE EBITDA PAT 25% 14% FY24 6399 1619 881 32% 4% 20% 20% FY23 30% 6676 2028 1304 Impact on margins because of following reasons: • Compensation paid to the victims amounting to INR 69.64 MM • Stock write off due to fire accident, valued INR 138.97 MM • Hospitalisation expenses for the injured during the fire accident INR 29.50 MM

Incremental Insurance Premium incurred amounting to INR 29.57 MM on account of claim lodgement with insurance company
Impact on revenue due to fire accident, consequent events of closure of manufacturing site 2 for a few months and unavailability of the facility for operations

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EBITDA and PAT, including other income Margins are after considering the exceptional items due to fire accident, amounting to INR 64 MM

ACCIDENT - UPDATE

Fire accident on November 29, 2023 Manufacturing Facility 2
Total 11 casualties reported. The families of the deceased, compensated INR 5 MM per family
The injured workers hospitalised and given the best treatment, expenses borne by the Company
GPCB revoked the closure notice, allowing unaffected plants to resume operations in Jan ’24, after initially issuing a penalty of INR 5 MM
The other Manufacturing Facilities (1 and 3) remained up and running
The loss estimate is likely around Rs. 100 cr, with all the assets, inventories, people and loss of profit, being fully insured
• Expected upfront claim settlement soon, with balance to come in instalments
Fire-impacted plants 1 & 2 of Site 2 to resume normalcy shortly
Revocation orders expected anytime for 75% of the facility and operations to begin

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CONTINUOUS IMPROVEMENT AND RISK MANAGEMENT

Immediate global safety review on all processes. Full, systematic, and detailed HazOp studies for every single running process in Site 1 (R&D and pilot plant) and Sites 2 and 3 (production).
Initiated immediate complete stand down at the R&D site, then initiated safety review for scientist led projects
Re-evaluating the review process for all pressure reactor systems
Reviewed PPE and lines of defense for R&D programs
Regular safety review of manufacturing processes i.e. 3 year annual EH&S review for all hazards at each site
Re-evaluation and re-design for safety PPE and uniform / apparel for all plant workers, technicians, and staff
Better evacuation training and focus on emergency evacuation during already regular mock drills (major evacuation route not utilised in escape)
Implementation of additional process safety and reactive chemical training for lead scientists, engineers, and plant personnel, by additional external reactive chemicals expertise.
Changes in hierarchy within technical departments:
Onboarded Chief Technology Officer / CTO to lead R&D and technology functions with a focus on process safety
Onboarding Head of Operations / COO to be 100% for production operations; 4 current site heads to report to him / her

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ANNOUNCEMENTS IN FOCUS

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Aether Industries, H.B. Fuller, and Saudi Aramco Technologies Company jointly announce the first commercialization of the sustainable Converge® polyols technology.

H.B. Fuller is one of the world’s largest adhesives manufacturer based in the US.The novel Converge® platform demonstrates the potential for carbon footprint reduction when compared to industrystandard polyols. This announcement further underscores our collaborative endeavours in the CASE industry to identify sustainable alternatives that not only enhance performance but also prioritise sustainability.

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Novoloop Breaks Ground on Pilot Plant with Aether, Paving the Way for a Circular Plastic Future

Novoloop’s Lifecycling™ technology provides an economical and sustainable solution to hard-to-recycle plastics. By using highly scalable mechanisms of oxidation to convert post-consumer polyethylene into useful monomers for durable materials, Novoloop expects to provide its products at prices competitive with fossilbased products. Furthermore, an ISO-compliant life cycle assessment shows that Novoloop monomers can realize a carbon footprint reduction of up to 91% when compared to the conventional process of producing adipic acid.

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SITE 3++

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Additional 3500 MT capacities approximately per annum will be added on commercialisation of the project September 2023 Placing of orders for equipment and machineries started March 2024 On-going civil work along with procurement of equipments

July 2023 project initiation

August 2023 Regulatory approvals applied for

Located diagonally opposite to the current Manufacturing Facility 2 in GIDC, Sachin, Surat, Gujarat, India Production of 3 to 5 Products upon commercialisation of the project

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SITE 4

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Located within 200 meters of the current Manufacturing Facility 2 in GIDC, Sachin, Surat, Gujarat, India Dedicated to CEM upon commercialisation of the project Aether Speciality Chemicals Limited 100% wholly owned subsidiary

July 2023 project initiation

September 2023 Equipment and machineries ordered

March 2024

Commissioning completed, in alignment with oil field drilling services products, validation batches being produced

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SITE 5

S5 - Panoli

21° 32' 19.302" N, 73° 0' 11.34" E

125,874.64 sq. mtrs. / 31 acres (approximate)

Acquired land in GIDC auction for future expansions
12 times the land bank of the current land at Site-2
Easy proximity to NH8
54 Kms drive from current locations in Surat
Plot nos. 14 + 15, Panoli GIDC, Gujarat
Regulatory approvals applied for in July 2023
Ground digging work started in August 2023
Ordering of equipment and machineries started in September 2023
EC approval received in December 2023
• Plinth level achieved till ground level

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EXECUTION OF ORDER FOR 15MW SOLAR POWER PROJECT

The execution of this new solar power project with auto-tracker modules has started from the date of order and is scheduled to be completed in the FY 2024-25, in phases with an initial commissioning of 5 MW in Q1FY25. This order holds immense significance for our Company, marking a significant leap forward in our Company’s unwavering commitment to sustainability. This will meet the energy requirement of the Company’s manufacturing facilities by replacing the conventional energy sources with renewable alternative.

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EXPANSION OF WORLD’S LARGEST PILOT PLANT

56 reactors ⎸ SS-316, GLR, Hast-C, Ti / PFA coated ⎸ 500 to 6000 L ⎸ full vac. to 30 bar ⎸ -20 to 300 ℃ 10 batch / cont. distillation columns ⎸ SS-316, GLR, Hast-C ⎸ full vac. to 10 bar ⎸ 150 to 800 mm diam. ⎸ 24-100 stages Wiped film evaporator / dryer ⎸ SS-316, Hast-C ⎸ 1, 2, 5 m2 25 filters / dryers ⎸ SS-316, ETFE coated ⎸ Centrifuges (24-48”) ⎸ ANFD (2-5 KL) ⎸ RVPD ⎸ VTD ⎸ Drum flaker Total pilot plant equipment : 204 It also includes the Pilot Plant for Novoloop

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As of 7.03.24

APPOINTMENT - CTO

Dr James Ringer appointed as the CTO of the company with effect from the opening business hours of March 1, 2024

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 Already been working with Aether as a Business Development Leader since 3 years Now, leading R&D and technology functions with focus on process safety

Dr. James (Jim) W. Ringer is a dynamic leader recognized for creating innovation and personnel strategies. Demonstrated ability to generate significant value through building exceptional teamwork and organizational culture with strong personnel development, technical excellence, and project portfolio.

Dr. James (Jim) W. Ringer Chief Technology Officer (CTO) Aether Industries Limited

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GROWTH OUTLOOK

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Site 4 commercialisation boosts manufacturing capacities
Site 3 operations to be revamped to get optimum utilisation of the capacities
Oil Field Services Company - Strategic Supply Initiation
Breakthrough in electronic chemicals space with a major global lithium-ion battery producer
Initiated commissioning of 5 MW solar power plant, aiding to Aether’s journey to sustainable development

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Site 3++ commissioning
Strategic launch of 3 to 5 products under LSM model at site 3++
Commissioning 15 MW solar power plant, pivotal to overall margin growth
R&D, technology enhancements with commissioning of pilot plant 4
Establishing our grounds as a premier service provider of sustainable and carbon neutral solutions

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750 cr investment progress
Multiple ongoing negotiations with global leaders for CEM
Stronger pipeline of products in R&D with better realisations
Advanced stage discussions on CRAMS with existing customers & numerous global technocrats
Strategic diversification into a wide array of industry segments

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(INR MM)

BUSINESS SEGMENTS

59% 14% 26% For FY24

Large Scale Manufacturing Advanced intermediates and speciality chemicals with application across the industry spectrum Contract Research and Manufacturing Services - CRAMS Contract research, scale-up services, technology development, low volume high value contract manufacturing Contract / Exclusive Manufacturing Manufacture under contractual supply agreements with MNCs

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FY21 3,249
FY22 3,955
FY23 3,357
FY24 3,539
FY21 359
FY22 479
FY23 817
FY24 827
FY21 872
FY22 1,402
FY23 2,234
FY24 1,535
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AETHER TODAY
INR MM
REVENUE FROM OPERATIONS
27.4% Agro
CAGR 44%
6,511
5,970 5,957
4,538 2.6% Multiple
By Application
Pharma
3,038 3.7% Photography
51.0%
Material Science
7.9%
2,033
1,092 4.8% Coatings
0.9% Textiles
1.1% Oil & Gas
FY18 FY19 FY20 FY21 FY22 FY23 FY24
Food Additives
0.5%
EBITDA% 30.4 0.0% Electronic Chemicals
29.3
FY24
25.3 25.3
24.4 24.3
21.7
Domestic
FY18 FY19 FY20 FY21 FY22 FY23 FY24
59.0% 57.0%
26.0%
Large scale
By Business By Region
Contract Export [#]
19.5 manufacturing
PAT% 18.2
manufacturing 43.0%
15.7
13.8
13.2
11.5
14.0% CRAMS
7.1
1.0% Others
# includes deemed exports and SEZ Sales
FY18 FY19 FY20 FY21 FY22 FY23 FY24
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RESEARCH AND DEVELOPMENT

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

Experts at helm of R&D / CRAMS

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MARCH-23 MARCH-24
233 276
Highly qualified employees, Highly qualified employees,
including including
111 148
Scientists with Scientists with
PhD / M. Sc and B. Sc PhD / M. Sc and B. Sc
122 128
Engineers Engineers
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Consistently rising R&D expenditure
15.4%
7.5%
6.6%
987
501
4.3%
4.0%
393
2.6%
193
121
53
FY19 FY20 FY21 FY22 FY23 FY24
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SELECT MARQUEE CUSTOMER BASE | DOMESTIC AND GLOBAL

Pharmaceutical Agrochemical

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Oil and Gas Textiles High performance photography | Coatings Material ~~Science~~ Other Sectors TOSOH FineChem

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QEHS

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
Health and Safety Permits
Emergency Prevention, Preparedness, and Response
Working and Living Conditions
Training and Communication

INDIAN GMP for Manufacturing UN GLOBAL COMPACT Annual Corporate Member

ISO 9001 INDIAN GMP for Quality for Manufacturing ISO 45001 UN GLOBAL COMPACT for Occupational Safety Annual Corporate Member ISO 14001 of workforce as Environment Team among the top 25 percent of companies ISO 27001 of Information Security Management 17% of which 7.31% 4.70%* 5.22% is workforce as is workforce as is workforce QC/QA/ADL Safety as Team Team Environment

SILVER ECOVADIS MEDAL among the top 25 percent of companies

is workforce as is workforce as Safety Team Environment Team

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as on March 31,2024

QEHS

Quality

High standards of quality for products

To cover

To ensure

Environment

Vibrant infrastructure installed for environment and sustainability efforts

100 KLPD in-house zero liquid discharge (ZLD) plant
Triple stage multiple effect evaporator (MEE)

Consistent Quality Efficacy Safety of Products

Manufacturing Supply Chain Product Delivery

In FY24

29 Times, our facilities Customers or their have been audited by external auditors

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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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
Life Saving measures
Medical Aid / Support

• Total spent of Rs. 27.97 MM towards CSR in FY24 (achieved more than 100% of the total budget of CSR for FY24)

Governance

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

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STANDALONE FINANCIAL RESULTS FOR Q4 AND FY24

					INR MM
Particulars	Q4FY24	Q3FY24	Q4FY23	FY24	FY23
	Audited	Unaudited	Audited	Audited	Audited
Revenue from operations	1,150	1,554	1,838	5,957	6,511
Other income	136	128	6	443	165
Total income	1,287	1,682	1,844	6,400	6,676
Cost of goods sold #*	752	912	871	3,193	3,173
Employee benefts expense	116	92	90	386	345
Other expenses	189	236	281	1,063	1,130
Exceptional items**	74	64	0	138	0
EBITDA	157	378	602	1,619	2,028
Depreciation & amortization expense	103	102	69	394	232
EBIT	54	276	533	1,225	1,796
Finance cost	36	21	12	85	51
Proft before tax	17	255	522	1,140	1,745
Tax expenses (Current + Deferred)	7	64	146	259	441
Proft after tax	10	191	376	881	1,304
# Cost of goods sold = Cost of materials consumed in operation and incidental cost + Changes in inventories of fnished goods and work-in-progress
* COGS includes the impact of write off of Inventories amounting to INR 138.97 MM which were damaged in Fire Accident - November 2023
** Includes various expenses like compensation to families of deceased, hospital expenses of the injured, excess insurance premium, GPCB penalty etc. which were incurred due to fre
accident

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Exceptional items include the various expenses incurred due to fire accident

INR MM	FY24	FY23
ASSETS
Non-Current Assets
Property, plant and equipment Capital work-in-progress Right-of-Use Assets Intangible Assets	6,097 2,143 1,327 5	5,333 372 1,122 6
Intangibles under development	50	0
Financial Assets	93	30
Other non-current assets	21	185
Total non-current assets	9,736	7,048
CURRENT ASSETS
Inventories	3,412	2,488
Investments Trade receivables Cash and bank balances Loans + Other Financial Assets Other current assets	0 2,299 5,557 1,409 1,144	10 2,589 1,022 15 627
Total current assets	13,821	6,751
Total Assets	23,557	13,799

INR MM	FY24	FY23
EQUITY AND LIABILITIES
Equity
Equity share capital	1,325	1,245
Other equity	19,364	11,201
Total equity	20,689	12,446
Non-current Liabilities
Borrowings	0	0
Lease liabilities	119	145
Deferred tax liabilities (net)	353	268
Total non-current liabilities	472	413
Current Liabilities
Borrowings	1,292	1
Lease liabilities	24	11
Trade payables	938	815
Other fnancial & current liabilities	141	113
Total current liabilities	2,395	940
Total equity and liabilities	23,557	13,799

STANDALONE STATEMENT OF CASH FLOW AS ON MARCH 31, 2024

INR MM	FY24	FY23
Cash generated from operations	153	252
Net cash from operating activities	(20)	(66)
Net cash (used in) investing activities	(3,989)	(3,484)
Net cash used in fnancing activities	8,542	4,392
Net increase / (decrease) in cash and cash equivalents	4,534	842
Cash and cash equivalents at the beginning of the period	1,022	180
Cash and cash equivalents at the end of the period	5,556	1,022

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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.

Registered Office - 8203, Road No. 08, GIDC Industrial Estate, Sachin - 394230, Surat, Gujarat, India | Board Line: +91-261-6603000 | Email ID: [email protected] | Website: www.aether.co.in Mr. Chitrarth Parghi - CS and Compliance Officer | Direct No : +91 (261) - 6603360 | Email: [email protected]

AI assistant

Aether Industries Limited Investor Presentation 2024

59487_rns_2024-05-21_f0341562-cc15-4c1c-b403-8c93220b677d.pdf

Ref. No.: AIL/SE/13/2024-25

BSE Limited

Subject: Presentation on Financial Results

For Aether Industries Limited

Chitrarth Rajan Parghi

Encl.: As annexed

CHITRARTH RAJAN PARGHI