FERMENTA BIOTECH LIMITED — Earnings Release 2021

Jun 30, 2021

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Ref: F.No.:49

June 30, 2021

Corporate Relations BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001

Dear Sir,

Sub.: Intimation of Earnings Presentation for Quarter 4 – Financial Year 2020-2021 Ref: Scrip Code: 506414

Further to our intimation dated June 29, 2021 regarding approval of Audited Financial Results (Standalone and Consolidated) by the Board of Directors for the quarter and financial year ended March 31, 2021, we hereby enclose a copy of Earnings Presentation for Quarter 4 – Financial Year 2020-2021.

The said Earnings Presentation will thereafter be uploaded on Company’s website at www.fermentabiotech.com

Kindly take the same on record.

Thanking you,

Yours faithfully,

for Fermenta Biotech Limited

[Formerly known as DIL LIMITED]

SRIKANT NATH SHARMA Digitally signed by SRIKANT NATH SHARMA DN: c=IN, o=Personal, postalCode=400607, st=Maharashtra, 2.5.4.20=2ab07dc675b7405348b9f50416c712c738a3c6f165ca6b8e70474cfdc158e5cb, pseudonym=7F84E8095CAE6C1952DF57BF115FE47CA8DC5DEB, serialNumber=C7CD7EC99ADAAE2C3BD286AC4378FFADD7148C27FF6647D896904FB3E2D0942E, cn=SRIKANT NATH SHARMA Date: 2021.06.30 12:31:52 +05'30'

Srikant N Sharma

Company Secretary CS Membership No: F3617

A-1501, Thane One, DIL Complex, Ghodbunder Road, Majiwade, Thane (W) 400610

Encl: As above

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Earnings Presentation | FY21 / Q4-FY21

Snapshot

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Only manufacturer of Vitamin D3 in India

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Proprietary technology to manufacture Vitamin D3

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DSIR approved R&D facility

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300+ clients across the globe

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Top
3
Amongst top 3 manufacturers
of Vitamin D3 globally
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55 Years of Vitamin D3 manufacturing experience

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12 new patents filed

Backward integrated

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Global Presence in
50+ countries
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2 Manufacturing Plants registered with US-FDA (FFRM)

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Big 4 statutory auditor: Deloitte

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High Return Ratios

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Fermenta Biotech Limited

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Company Overview

• Fermenta Biotech Limited (FBL) (Erstwhile DIL Ltd.) incorporated in 1951 by Dr. DVK Raju, is engaged in development and manufacturing of pharmaceuticals, biotechnology and environmental solutions used across various industries.

• On September 26, 2019, NCLT approved amalgamation of DIL & FBL which consolidated FBL's leadership capabilities backed by DIL’s large asset base.

• With a rich history of seven decades FBL has evolved as a key global player in manufacturing of Vitamin D3 in all its formats and has a non-China dependent supply chain.

• FBL manufactures a range of Vitamin D3 variants having an optimal mix between human and animal feed products which have applications across multiple sectors like:

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Operational Revenue (INR Mn) &
Operational EBITDA Margin (%)
37%
40%
4,047 22% 22%
23% 2,929 3,666 20%
29%
30%
0%
77%
71%
70%
-20%
FY19 FY20 FY21
Exports Domestic EBITDA (%)
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• 1.Pharmaceuticals 4.Animal feed

• 2.Dietary and nutritional supplements

  • 5.Veterinary

• 3.Food and beverage fortification 6.Rodenticides

• The company is also involved in manufacturing of APIs for muscle relaxant and anti-flatulent applications.

• FBL delivers innovative enzymes used in manufacturing of active pharmaceutical ingredients and involved in environmental solutions used for waste water treatment and management.

• The company also has legacy properties at Thane and Worli in Mumbai for which it realizes significant rental income.

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Revenue Mix % (FY21)
Real Estate
5%
Other APIs and
Intermediary
13%
Fish Oil
Cholestrol,
6%
Vitamin D3
76%
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Fermenta Biotech Limited

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FY21 / Q4-FY21

Q4-FY21 Operational Highlights

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• On a standalone basis the total Income and operating EBDITA saw a growth of 21.3% and 34.86% respectively in FY21. The operating EBDITA margin also saw a growth of 204 bps.

• In FY21, with respect to the Vitamin D3 business, there was a positive impact on the demand front, and consequently in Q4 FY21 the volumes of Human Vitamin D3 40 MIU were higher by 101% over Q4 FY20, while the volumes of Animal Vitamin D3 Feed 500 were lower by 14% over Q4 FY20. While on an annual basis, the volumes and average prices of Human Vitamin D3 40 MIU were higher by 71% and 4% respectively over previous year, however the volumes and average prices of Animal Vitamin D3 Feed 500 were under pressure and were lower by 35% and 17% respectively over previous year.

• On 1st December 2020 the Company’s wholly owned subsidiary Fermenta Biotech USA LLC acquired a 52% stake in a US-based vitamin company, AGD Nutrition LLC, headquartered in Nacogdoches, Texas. The deal is expected to combine the expertise of both companies and result in synergies that will bring in greater operational capabilities to enhance Company’s footprint in the US market which is one of the largest markets for human and animal nutrition. The name of AGD Nutrition LLC has subsequently been changed to Fermenta USA LLC, reflecting the brand value of Fermenta and expected to capitalize on Fermenta’s growing recognition as a nutritional ingredient supplier in US market.

• Company had given an ICD aggregating to INR 213 Mn in various tranches to a non-related party for the development of new product i.e., cholesterol from Fish Oil. As on the Board Meeting date the full ICD amount along with interest has been recovered. Fish Oil cholesterol saw sales of approx. Rs 23 crores in the financial year, which constituted around 6% of total operational revenue.

• In FY 20, there was a one-time deferred tax asset benefit to the tune of approx. INR 195 Mn, due to the amalgamation of companies, which is why the PAT for the year ended FY20 was higher and cannot be comparable to FY21.

• Mr. Prashant Nagre elevated to the position of Managing Director w.e.f. 9th May 2021, for driving the next phase of growth in the organisation.

• Board has proposed the final dividend of 50% (Rs 2.5 per share) for the financial year ended 2020-21.

Fermenta Biotech Limited

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FY21 / Q4-FY21 Financial Highlights

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Q4-FY21 Standalone Performance

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INR 909 Mn INR 180 Mn 19.80%
Operational Income Operational EBITDA Operational EBITDA Margin
INR 97 Mn 10.67% INR 3.35/share
Net Profit PAT Margin Diluted EPS
Q4-FY21 Consolidated Performance
INR 995 Mn INR 102 Mn 10.25%
Operational Income Operational EBITDA Operational EBITDA Margin
INR 74 Mn 7.44% INR 2.56/share
Net Profit PAT Margin Diluted EPS
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FY21 Standalone Performance
INR 3,728 Mn INR 937 Mn 25.13%
Operational Income Operational EBITDA Operational EBITDA Margin
INR 520 Mn 13.95% INR 17.92/share
Net Profit PAT Margin Diluted EPS
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FY21 Consolidated Performance :

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INR 3,773 Mn INR 817 Mn 21.65%
Operational Income Operational EBITDA Operational EBITDA Margin
INR 455 Mn 12.06% INR 15.69/share
Net Profit PAT Margin Diluted EPS
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Fermenta Biotech Limited

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Vitamin D3 500 Animal Feed Price Trend

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85.00
80.00
75.00
60.00
33.00
32.00
30.00
Min of Low
25.00
22.00 Max of High
20.00
18.50
13.90
12.50
9.25
7.60 8.00
5.60 6.25 6.00 6.70
Year
Price (Euro)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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Source: feedinfo.com

Fermenta Biotech Limited

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Q4-FY21 – Standalone Income Statement (Ind-AS)

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PARTICULARS (INR Mn)	Q4-FY21	Q4-FY20	Y-o-Y	Q3-FY21	Q-o-Q
Operational Revenue	909	721	26.1%	877	3.6%
Total Expenses	729	586	24.4%	645	13.0%
Operational EBITDA	180	135	33.3%	232	(22.4%)
Operational EBITDA Margin (%)	19.80%	18.72%	108 Bps	26.45%	(665 Bps)
Other Income	37	26	42.3%	7	NA
Depreciation	59	39	51.3%	47	25.5%
Finance Cost	50	40	25.0%	40	25.0%
PBT	108	82	31.7%	152	(28.9%)
Tax	12	10	20.0%	41	(70.7%)
PAT	97	72	34.7%	111	(12.6%)
PAT Margins (%)	10.67%	9.99%	68 Bps	12.66%	(199 Bps)
Other Comprehensive Income	(1)	17	NA	-	NA
Total Comprehensive Income	96	89	7.9%	111	(13.5%)
Diluted EPS (INR)	3.35	2.50	34.0%	3.83	(12.5%)

Fermenta Biotech Limited

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FY21 – Standalone Income Statement (Ind-AS)

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PARTICULARS (INR Mn)	FY21	FY20	Y-o-Y
Operational Revenue	3,728	3,005	24.1%
Total Expenses	2,791	2,311	20.8%
Operational EBITDA	937	694	35.0%
Operational EBITDA Margin (%)	25.13%	23.09%	204 Bps
Other Income	66	123	(46.3%)
Depreciation	190	149	27.5%
Finance Cost	181	193	(6.2%)
PBT	632	475	33.1%
Tax	112	(162)	NA
PAT	520	637	(18.4%)
PAT Margins (%)	13.95%	21.20%	(725 Bps)
Other Comprehensive Income	(0.4)	18	NA
Total Comprehensive Income	519	655	(20.7%)
Diluted EPS (INR)	17.92	21.96	(18.4%)

Fermenta Biotech Limited

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Q4-FY21 – Consolidated Income Statement (Ind-AS)

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PARTICULARS (INR Mn)	Q4-FY21	Q4-FY20	Y-o-Y	Q3-FY21	Q-o-Q
Operational Revenue	995	645	54.3%	900	10.6%
Total Expenses	893	550	62.4%	679	31.5%
Operational EBITDA	102	95	7.4%	221	(53.8%)
Operational EBITDA Margin (%)	10.25%	14.73%	(448 Bps)	24.56%	NA
Other Income	46	26	76.9%	7	NA
Depreciation	64	40	60.0%	50	28.0%
Finance Cost	50	40	25.0%	39	28.2%
PBT	34	41	(17.1%)	139	NA
Tax	(10)	10	NA	41	NA
PAT before Associates & Joint Venture	44	31	41.9%	98	(55.1%)
Non-controlling interests	30	(0.1)	NA	(0)	NA
PAT	74	31	NA	98	(24.5%)
PAT Margins (%)	7.44%	4.81%	263 Bps	10.89%	(345 Bps)
Other Comprehensive Income	-	18	NA	(2)	NA
Total Comprehensive Income	44	49	(10.2%)	96	(54.2%)
Diluted EPS (INR)	2.56	1.09	NA	3.39	(24.5%)

Fermenta Biotech Limited

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FY21 – Consolidated Income Statement (Ind-AS)

PARTICULARS (INR Mn)	FY21	FY20	Y-o-Y
Operational Revenue	3,773	2,929	28.8%
Total Expenses	2,956	2,277	29.8%
Operational EBITDA	817	652	25.3%
Operational EBITDA Margin (%)	21.65%	22.26%	(61 Bps)
Other Income	82	123	(33.3%)
Depreciation	203	150	35.3%
Finance Cost	180	191	(5.8%)
PBT	516	434	18.9%
Tax	91	(161)	NA
PAT before Associates & Joint Venture	425	595	(28.6%)
Non-controlling interests	30	-	NA
PAT	455	595	(23.5%)
PAT Margins (%)	12.06%	20.31%	(825 Bps)
Other Comprehensive Income	(2)	17	NA
Total Comprehensive Income	423	612	(30.9%)
Diluted EPS (INR)	15.69	20.53	(23.6%)

Fermenta Biotech Limited

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Historical Standalone Income Statement

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PARTICULARS (INR Mn)	FY21	FY20	FY19
Operational Revenue	3,728	3,005	4,047
Total Expenses	2,791	2,311	2,634
Operational EBITDA	937	694	1,413
Operational EBITDA Margin (%)	25.13%	23.09%	34.91%
Other Income	66	123	123
Depreciation	190	149	119
Finance Cost	181	193	206
PBT	632	475	1,211
Tax	112	(162)	107
PAT	520	637	1,104
PAT Margins (%)	13.95%	21.20%	27.28%
Other Comprehensive Income	(0.4)	18	(15)
Total Comprehensive Income	519	655	1,089
Diluted EPS (INR)	17.92	21.96	38.24*

*Adjusted EPS post bonus issue in the proportion of 2:1

Fermenta Biotech Limited

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S)	S)	S)
PARTICULARS(INR Mn)	FY21	FY20
Assets
Non-current Assets	3,745	3,272
a)Property, plant and equipment	1,538	1,040
b)Capital work-in-progress	527	671
c)Right of use assets	147	162
d)Investmentproperty	682	707
e)Goodwill	41	41
f)Other intangible assets	88	18
g )Intangible assets under development	42	37
h)Investments
i)Investments in subsidiaries	127	8
i)Financial assets
i)Investments	2	3
ii)Loans	-	2
iii)Others financial assets	22	41
j)Deferred tax assets(Net)	381	381
k)Non-current tax assets(Net)	113	91
l)Other non-current assets	35	70
Current Assets	3,080	2,824
a)Inventories	1,328	1,135
b)Financial assets
i)Trade receivables	961	774
ii)Cash and cash equivalents	136	68
iii)Bank balances other than(iii)above	277	256
iv)Loans	48	213
v)Other financial assets	80	129
c)Other current assets	250	249
TOTAL ASSETS	6,825	6,096

Standalone Balance Sheet (Ind-AS)

PARTICULARS(INR Mn)	FY21	FY20
Equity	3,704	3,126
a) Equity share capital	144	144
b) Other equity	3,560	2,982
Liabilities
Non-current liabilities	1,192	1,115
a) Financial liabilities
i) Borrowings	1,104	1,018
ii) Lease liabilities	35	45
iii) Other financial liabilities	5	6
b) Provisions	45	41
d) Other non-current liabilities	3	5
Current Liabilities	1,929	1,855
a) Financial liabilities
i) Borrowings	963	1,043
ii) Lease liabilities	12	11
ii) Trade payables	457	472
iii) Other financial liabilities	410	297
b) Provisions	8	6
c) Other current liabilities	76	23
d) Current tax liabilities (Net)	3	3
TOTAL EQUITY AND LIABILITIES	6,825	6,096

Fermenta Biotech Limited

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Historical Consolidated Income Statement

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PARTICULARS (INR Mn)	FY21	FY20	FY19
Operational Revenue	3,773	2,929	4,047
Total Expenses	2,956	2,277	2,558
Operational EBITDA	817	652	1,489
Operational EBITDA Margin (%)	21.65%	22.26%	36.79%
Other Income	82	123	124
Depreciation	203	150	119
Finance Cost	180	191	207
PBT	516	434	1,287
Tax	91	(161)	108
PAT before Associates & Joint Venture	425	595	1,179
Share of Loss of Associates & Joint Venture	-	-	(4)
Non-controlling interests	30	-	-
PAT	455	595	1,175
PAT Margins (%)	12.06%	20.31%	29.03%
Other Comprehensive Income	(2)	17	(15)
Total Comprehensive Income	423	612	1,160
Diluted EPS (INR)	15.69	20.53	40.70*

*Adjusted EPS post bonus issue in the proportion of 2:1

Fermenta Biotech Limited

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Consolidated Balance Sheet (Ind-AS)

PARTICULARS(INR Mn)	FY21	FY20
Equity	3,603	3,094
a) Equity share capital	144	144
b) Other equity	3,462	2,950
c) Non-controlling interests	(3)	0.1
Liabilities
Non-current liabilities	1,175	1,097
a) Financial liabilities
i) Borrowings	1,105	1,018
ii) Lease liabilities	17	27
iii) Other financial liabilities	5	6
b) Provisions	45	41
c) Other non-current liabilities	3	5
Current Liabilities	2,093	1,946
a) Financial liabilities
i) Borrowings	963	1,043
ii) Lease liabilities	12	11
ii) Trade payables	621	564
iii) Other financial liabilities	410	297
b) Provisions	77	5
c) Other current liabilities	7	23
d) Current tax liabilities (Net)	3	3
TOTAL EQUITY AND LIABILITIES	6,871	6,137

PARTICULARS(INR Mn)	FY21	FY20
Assets
Non-current Assets	3,775	3,297
a)Property, plant and equipment	1,539	1,040
b)Capital work-in-progress	527	671
c)Right of use assets	129	143
d)Investmentproperty	687	713
e)Goodwill	107	41
f)Other intangible assets	168	65
g )Intangible assets under development	42	37
h)Financial assets
i)Investments	3	3
ii)Loans	-	2
iii)Others financial assets	22	40
i)Deferred tax assets(Net)	403	381
j)Non-current tax assets(Net)	113	91
k)Other non-current assets	35	70
Current Assets	3,096	2,840
a)Inventories	1,623	1,286
b)Financial assets
i)Trade receivables	680	698
ii)Cash and cash equivalents	168	75
iii)Bank balances other than(iii)above	277	256
iv)Loans	48	213
v)Other financial assets	35	63
c)Other current assets	265	249
TOTAL ASSETS	6,871	6,137

Fermenta Biotech Limited

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Historical Consolidated Financial Performance

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Operational Revenue (INR Mn)
4,047
3,773
2,929
FY19 FY20 FY21
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Operational EBITDA (INR Mn) & Margins (%)

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37%
1,489
22% 22%
817
652
FY19 FY20 FY21
EBITDA (INR Mn) EBITDA Margins (%)
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Working Capital Days
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RoCE & RoE (%)
46%
32% 19%
12%
19%
13%
FY19 FY20 FY21
RoCE (%) RoE (%)
Fermenta Biotech Limited
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126
111
92
FY19 FY20 FY21
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PAT (INR Mn) & Margins (%)

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29%
1,175
20%
12%
595
455
FY19 FY20 FY21
PAT (INR Mn) PAT Margins (%)
Net Debt to Equity (x)
0.56
0.45
0.42
FY19 FY20 FY21
Net D/E(x)
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Disclaimer

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No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management Fermenta Biotech Limited (“Company” or “FBL”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

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For further information please contact our Investor Relations Representatives: Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: fermenta@valoremadvisors.com

Fermenta Biotech Limited

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