FERMENTA BIOTECH LIMITED — Earnings Release 2021

Feb 12, 2021

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Ref: F.No.:49

February 12, 2021

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

Dear Sir,

Sub.: Intimation of Earnings Presentation for Quarter 3 – Financial Year 2020-2021 Ref: Scrip Code: 506414

Further to our intimation dated February 11, 2021 regarding approval of un-audited Financial Results (Standalone and Consolidated) by the Board of Directors for the quarter and nine months ended December 31, 2020, we hereby enclose a copy of Earnings Presentation for Quarter 3 – 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.

Yours faithfully,

for Fermenta Biotech Limited

[Formerly known as DIL LIMITED] Digitally signed by SRIKANT NATH SHARMA SRIKANT DN: c=IN, o=Personal, postalCode=400607, st=Maharashtra, 2.5.4.20=2ab07dc675b7405348b9f50416c712 c738a3c6f165ca6b8e70474cfdc158e5cb, NATH pseudonym=7F84E8095CAE6C1952DF57BF115FE47CA8DC5DEB, serialNumber=C7CD7EC99ADAAE2C3BD286A C4378FFADD7148C27FF6647D896904FB3E2D SHARMA 0942E, cn=SRIKANT NATH SHARMA Date: 2021.02.12 14:55:41 +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 | 9M/Q3-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

Top 3 Amongst top 3 manufacturers of Vitamin D3 globally

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50 Years of Vitamin D3 manufacturing experience

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8 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 with 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 six 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 (%)

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37%
40%
31%
26%
4,047 22%
3,030 23% 2,929 2,778 20%
20% 30%
28%
0%
77%
80% 70% 72%
-20%
FY18 FY19 FY20 9M-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 antibiotics 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.

Revenue Mix % (9M-FY21)

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Real Estate
5%
Other APIs &
Intermediary
16%
Vitamin D3
79%
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Fermenta Biotech Limited

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9M/Q3-FY21

9M/Q3-FY21 Financial Highlights

Q3-FY21 Standalone Performance

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INR 877 Mn INR 232 Mn 26.45%
Operational Income Operational EBITDA Operational EBITDA Margin
INR 111 Mn 12.66% INR 3.83 /share
Net Profit PAT Margin Diluted EPS
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Q3-FY21 Consolidated Performance

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INR 900 Mn INR 221 Mn 24.56%
Operational Income Operational EBITDA Operational EBITDA Margin
INR 98 Mn 10.89% INR 3.39 /share
Net Profit PAT Margin Diluted EPS
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9M-FY21 Standalone Performance

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INR 2,819 Mn INR 757 Mn 26.85%
Operational Income Operational EBITDA Operational EBITDA Margin
INR 423 Mn 15.01% INR 14.60 /share
Net Profit PAT Margin Diluted EPS
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9M-FY21 Consolidated Performance :

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INR 2,778 Mn INR 715 Mn 25.74%
Operational Income Operational EBITDA Operational EBITDA Margin
INR 381 Mn 13.71% 13.16 /share
Net Profit PAT Margin Diluted EPS
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Fermenta Biotech Limited

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Q3-FY21 Operational Highlights

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• The Board has approved for the Company to list its shares on the National Stock Exchange (NSE), and requested the management to take all the necessary steps for the listing.

• 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 recognition as a nutritional ingredients supplier in US market.

• Company had given 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 total ICD outstanding has been reduced to approx. INR 115 Mn.

• Due to the ongoing COVID-19 pandemic, there was a positive impact on the demand, and consequently the volumes of Human Vitamin D3 were higher, however the volumes and prices of Animal Vitamin D3 continued to be under pressure.

• In Q3-FY20, there was a one-time deferred tax asset benefit to the tune of approx. INR 30.25 Mn and for the nine months the benefit was to the tune of INR 189.83 Mn, due to the amalgamation of companies, which is why the PAT for the quarter and nine months ended FY20 was higher and cannot be comparable to the current quarter and nine months ended FY21.

Fermenta Biotech Limited

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Vitamin D3 500 Animal Feed Price Trend

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Vitamin D3 500 Price Trend Euro/Kg

Min of Low Max of High

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85.00
80.00
75.00
60.00
50.00
33.00
32.00
30.00
25.00
22.00 22.00
21.00
20.00 20.00
18.00
13.90
12.50
9.25
7.60 5.60 8.00 6.25 6.00 6.70
2012 2013 2014 2015 2016 2017 2018 2019 Q1-CY2020 Q2-CY2020 Q3-CY2020 Q4-CY2020
Title
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Source: feedinfo.com *As per calendar year

Fermenta Biotech Limited

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Q3-FY21 – Standalone Income Statement (Ind-AS)

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PARTICULARS (INR Mn)	Q3-FY21	Q3-FY20	Y-o-Y	Q2-FY21	Q-o-Q
Operational Revenue	877	665	31.9%	933	(6.0)%
Total Expenses	645	525	22.9%	656	(1.7)%
Operational EBITDA	232	140	65.7%	277	(16.2)%
Operational EBITDA Margin (%)	26.45%	21.05%	540 Bps	29.69%	(324) Bps
Other Income	7	34	(79.4)%	9	(22.2)%
Depreciation	47	38	23.7%	45	4.4%
Finance Cost	40	54	-25.9%	55	(27.3)%
PBT	152	82	85.4%	186	(18.3)%
Tax	41	(16)	NA	37	10.8%
PAT	111	98	13.3%	149	(25.5)%
PAT Margins (%)	12.66%	14.74%	(208) Bps	15.97%	(331) Bps
Other Comprehensive Income	-	-	NA	-	NA
Total Comprehensive Income	111	98	13.3%	149	(25.5)%
Diluted EPS (INR)	3.83	3.38*	13.3%	5.17	(25.9)%

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

Fermenta Biotech Limited

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9M-FY21 – Standalone Income Statement (Ind-AS)

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PARTICULARS (INR Mn)	9M-FY21	9M-FY20	Y-o-Y
Operational Revenue	2,819	2,284	23.4%
Total Expenses	2,062	1,724	19.6%
Operational EBITDA	757	560	56.1%
Operational EBITDA Margin (%)	26.85%	24.52%	233 Bps
Other Income	29	97	(70.1)%
Depreciation	131	110	19.1%
Finance Cost	131	153	(14.4)%
PBT	524	394	33.0%
Tax	101	(171)	NA
PAT	423	565	(25.1)%
PAT Margins (%)	15.01%	24.74%	(974) Bps
Other Comprehensive Income	-	-	NA
Total Comprehensive Income	423	565	(25.1)%
Diluted EPS (INR)	14.60	19.50*	(25.1)%

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

Fermenta Biotech Limited

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- – - Q3 FY21 Consolidated Income Statement (Ind AS)

	PARTICULARS (INR Mn)	PARTICULARS (INR Mn)	Q3-FY21	Q3-FY20	Y-o-Y	Q2-FY21	Q-o-Q	Q-o-Q	Q-o-Q
	Operational Revenue		900	665	35.3%	934	(3.6)%
	Total Expenses		679	528	28.6%	665	2.1%
	Operational EBITDA		221	137	61.3%	269	(17.8)%
	Operational EBITDA Margin (%)		24.56%	20.60%	396 Bps	28.80%	(425) Bps
	Other Income		7	35	(80.0)%	16	(56.3)%
	Depreciation		50	38	31.6%	48	4.2%
	Finance Cost		39	53	(26.4)%	54	(27.8)%
	PBT		139	81	71.6%	183	(24.0)%
	Tax		41	(16)	NA	36	13.9%
	PAT before Associates & Joint Venture		98	97	1.0%	147	(33.3)%
	Share of Loss of Associates & Joint Venture		-	-	NA	-	NA
	Non-controlling interests		(0.3)	-	NA	-	-
	PAT		98	97	1.0%	147	(33.3)%
	PAT Margins (%)		10.89%	14.59%	(370) Bps	15.74%	(485) Bps
	Other Comprehensive Income		(2)	-	NA	-	NA
	Total Comprehensive Income		96	97	(1.0)%	147	(34.7)%
	Diluted EPS (INR) ~~*~~		3.39	3.34*	1.5%	5.09	(33.4)%
	Fermenta Biotech Limited 10 ~~Adjusted EPS post bonus issue in the proportion of 2:1~~

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- – - 9M FY21 Consolidated Income Statement (Ind AS)

PARTICULARS (INR Mn)	9M-FY21	9M-FY20	Y-o-Y
Operational Revenue	2,778	2,284	21.6%
Total Expenses	2,063	1,727	19.5%
Operational EBITDA	715	557	28.4%
Operational EBITDA Margin (%)	25.74%	24.44%	130 Bps
Other Income	36	97	(62.9)%
Depreciation	139	110	26.4%
Finance Cost	130	151	(13.9)%
PBT	482	393	22.6%
Tax	101	(171)	NA
PAT before Associates & Joint Venture	381	564	(32.4)%
Share of Loss of Associates & Joint Venture	-	-	NA
Non-controlling interests	(0.3)	-	NA
PAT	381	564	(32.4)%
PAT Margins (%)	13.71%	24.69%	(1,098) Bps
Other Comprehensive Income	(3)	1	NA
Total Comprehensive Income	378	565	(33.1)%
Diluted EPS (INR)	13.16	19.47*	(32.4)%

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

Fermenta Biotech Limited

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Historical Standalone Income Statement

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PARTICULARS (INR Mn)	FY20	FY19
Operational Revenue	3,005	4,047
Total Expenses	2,311	2,634
Operational EBITDA	694	1,413
Operational EBITDA Margin (%)	23.09%	34.91%
Other Income	123	123
Depreciation	149	119
Finance Cost	193	206
PBT	475	1,211
Tax	(162)	107
PAT	637	1,104
PAT Margins (%)	21.20%	27.28%
Other Comprehensive Income	18	(15)
Total Comprehensive Income	655	1,089
Diluted EPS (INR)	21.96	38.24*

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

Fermenta Biotech Limited

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Standalone Balance Sheet (Ind-AS)

PARTICULARS(INR Mn)	H1-FY21	FY20
Equity	3,467	3,126
a) Equity share capital	144	144
b) Share Pending issuance	-	-
c) Other equity	3323	2,982
d) Non-controlling interests	-	-
Liabilities
Non-current liabilities	1,309	1,115
a) Financial liabilities	-
i) Borrowings	1,215	1,018
ii) Lease liabilities	40	45
iii) Other financial liabilities	4	6
b) Provisions	47	41
c) Deferred tax liabilities (Net)	-	-
d) Other non-current liabilities	3	5
Current Liabilities	1,984	1,855
a) Financial liabilities	-
i) Borrowings	1,014	1,043
ii) Lease liabilities	11	11
ii) Trade payables	514	472
iii) Other financial liabilities	378	297
b) Provisions	6	6
c) Other current liabilities	36	23
d) Current tax liabilities (Net)	25	3
TOTAL EQUITY AND LIABILITIES	6,760	6,096

PARTICULARS(INR Mn)	H1-FY21	FY20	FY19
Assets
Non-current Assets	3,408	3,272	2,557
a)Property, plant and equipment	1,558	1,040	972
b)Capital work-in-progress	337	671	207
c)Right of use assets	154	162	-
d)Investmentproperty	695	707	733
e)Goodwill	41	41	41
f)Other intangible assets	15	18	23
g )Intangible assets under development	42	37	9
h)Investments	-
i)Investments in subsidiaries	9	8	7
ii)Investments in associates	-	-	-
i)Financial assets	-
i)Investments	3	3	6
ii)Share application money	-	-	60
iii)Loans	-	2	3
iv)Others financial assets	26	41	46
j)Deferred tax assets(Net)	388	381	193
k)Non-current tax assets(Net)	94	91	33
l)Other non-current assets	46	70	224
Current Assets	3,352	2,824	2,953
a)Inventories	1,185	1,135	877
b)Financial assets	-
i)Investments	-	-	11
ii)Trade receivables	989	774	656
iii)Cash and cash equivalents	303	68	404
iv)Bank balances other than(iii)above	318	256	504
v)Loans	165	213	118
vi)Other financial assets	155	129	26
c)Other current assets	237	249	357
TOTAL ASSETS	6,760	6,096	5,510

Fermenta Biotech Limited

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Historical Consolidated Income Statement

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PARTICULARS (INR Mn)	FY20	FY19	FY18
Operational Revenue	2,929	4,047	3,030
Total Expenses	2,277	2,558	2,100
Operational EBITDA	652	1,489	930
Operational EBITDA Margin (%)	22.26%	36.79%	30.69%
Other Income	123	124	89
Depreciation	150	119	123
Finance Cost	191	207	136
PBT	434	1,287	760
Tax	(161)	108	212
PAT before Associates & Joint Venture	595	1,179	548
Share of Loss of Associates & Joint Venture	-	(4)	(85)
PAT	595	1,175	463
PAT Margins (%)	20.31%	29.03%	15.28%
Other Comprehensive Income	17	(15)	-
Total Comprehensive Income	612	1,160	463
Diluted EPS (INR)	20.53	40.70*	36.75

*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)		H1-FY21	FY20
Equity		3,406	3,094
a) Equity share capital		144	144
b) Share Pending issuance		-	-
c) Other equity		3,262	2,950
d) Non-controlling interests		0.1	0.1
Liabilities
Non-current liabilities		1,291	1,097
a) Financial liabilities
i) Borrowings		1,215	1,018
ii) Lease liabilities		21	27
iii) Other financial liabilities		4	6
b) Provisions		47	41
c) Deferred tax liabilities (Net)		-	-
d) Other non-current liabilities		3	5
Current Liabilities		2,114	1,946
a) Financial liabilities
i) Borrowings		1,013	1,043
ii) Lease liabilities		11	11
ii) Trade payables		643	564
iii) Other financial liabilities		378	297
b) Provisions		5	5
c) Other current liabilities		39	23
d) Current tax liabilities (Net)		25	3
TOTAL EQUITY AND LIABILITIES		6,811	6,137

PARTICULARS(INR Mn)	H1-FY21	FY20	FY19
Assets
Non-current Assets	3,431	3,297	2,556
a)Property, plant and equipment	1,559	1,040	973
b)Capital work-in-progress	337	671	207
c)Right of use assets	135	143	-
d)Investmentproperty	700	713	738
e)Goodwill	41	41	41
f)Other intangible assets	60	65	23
g )Intangible assets under development	42	37	9
h)Investments
i)Investments in subsidiaries	-	-	-
ii)Investments in associates	-	-	-
i)Financial assets
i)Investments	3	3	6
ii)Share application money	-	-	60
iii)Loans	-	2	3
iv)Others financial assets	26	40	46
j)Deferred tax assets(Net)	388	381	193
k)Non-current tax assets(Net)	94	91	33
l)Other non-current assets	46	70	224
Current Assets	3,380	2,840	2,956
a)Inventories	1,437	1,286	877
b)Financial assets
i)Investments	-	-	11
ii)Trade receivables	825	698	655
iii)Cash and cash equivalents	308	75	408
iv)Bank balances other than(iii)above	318	256	504
v)Loans	165	213	118
vi)Other financial assets	88	63	26
c)Other current assets	239	249	357
TOTAL ASSETS	6,811	6,137	5,512

Fermenta Biotech Limited

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Historical Consolidated Financial Performance

Operational EBITDA (INR Mn) & Operational EBITDA Margins (%)

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Operational Revenue (INR Mn)
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4,047
3,030 2,929
2,778
FY18 FY19 FY20 9M-FY21
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37%
31%
1,489 26%
22%
930
652 715
FY18 FY19 FY20 9M-FY21
EBITDA (INR Mn) EBITDA Margins (%)
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RoCE & RoE (%)

Working Capital Days

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46%
37%
32% 19%
29%
19%
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126
111
95
FY18 FY19 FY20
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FY18 FY19 FY20
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PAT (INR Mn) & PAT Margins (%)

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29%
1,175
15% 20%
14%
595
463
381
FY18 FY19 FY20 9M-FY21
PAT (INR Mn) PAT Margins (%)
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Cash Flow from Operations (INR Mn)
903
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593
345
FY18 FY19 FY20
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RoCE (%) RoE (%)

Fermenta Biotech Limited

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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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