FERMENTA BIOTECH LIMITED — Interim / Quarterly Report 2022

Aug 16, 2021

==> picture [452 x 70] intentionally omitted <==

Ref: F.No.:49

August 16, 2021

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

Dear Sir,

Sub.: Intimation of Earnings Presentation for Quarter 1 – Financial Year 2021-2022 Ref: Scrip Code: 506414

Further to our intimation dated August 13, 2021, regarding approval of un-audited Financial Results (Standalone and Consolidated) by the Board of Directors for the quarter ended June 30, 2021, we hereby enclose a copy of Earnings Presentation for Quarter 1 – Financial Year 2021-2022.

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]

==> picture [455 x 43] intentionally omitted <==

Srikant N Sharma

Company Secretary CS Membership No: F3617

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

Encl: As above

==> picture [451 x 62] intentionally omitted <==

Earnings Presentation | Q1-FY22

Snapshot

==> picture [42 x 54] intentionally omitted <==

Only manufacturer of Vitamin D3 in India

==> picture [38 x 49] intentionally omitted <==

Proprietary technology to manufacture Vitamin D3

==> picture [48 x 50] intentionally omitted <==

DSIR approved R&D facility

==> picture [45 x 38] intentionally omitted <==

300+ clients across the globe

Top 3 Amongst top 3 manufacturers of Vitamin D3 globally

==> picture [47 x 49] intentionally omitted <==

55 Years of Vitamin D3 manufacturing experience

==> picture [34 x 49] intentionally omitted <==

12 new patents filed

Backward integrated

==> picture [50 x 49] intentionally omitted <==

Global Presence in 50+ countries

==> picture [46 x 55] intentionally omitted <==

2 Manufacturing Plants registered with US-FDA (FFRN)

==> picture [43 x 49] intentionally omitted <==

Big 4 statutory auditor: Deloitte

==> picture [60 x 36] intentionally omitted <==

High Return Ratios

==> picture [63 x 43] intentionally omitted <==

Fermenta Biotech Limited

2

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:

==> picture [63 x 43] intentionally omitted <==

Operational Revenue (INR Mn) & Operational EBITDA Margin (%)

==> picture [259 x 174] intentionally omitted <==

----- Start of picture text -----

37%
23%
4,047 22% 22%
2,929
3,773
1,096
FY19 FY20 FY21 Q1-FY22
Operational Revenue EBITDA Margins (%)
----- End of picture text -----

• 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 is 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 % (Q1-FY22)

==> picture [234 x 180] intentionally omitted <==

----- Start of picture text -----

Real Estate
4%
Other APIs and
Intermediary
11%
Fish Oil
Cholestrol,
8%
Vitamin D3
77%
----- End of picture text -----

Fermenta Biotech Limited

3

Q1-FY22

Q1-FY22 Operational Highlights

==> picture [63 x 43] intentionally omitted <==

• Managing Director Mr Prashant Nagre has been felicitated with the award for India’s “Best Leaders in Times of Crisis 2021” by Great Place to Work®. Additionally, Company has also been recognised for “India’s Best Workplaces in Biotechnology & Pharmaceuticals”, “HR Leader award for commitment to creating Great Place to Work” and “Commitment to being a Great Place to Work” by Great Place to Work® India for the year 2021.

• CAPEX for capacity expansion at Dahej plant has been capitalised in Q1-FY22. This has increased installed capacity by around 20%.

• The revenue ratio of Vitamin D3 between Human Nutrition & Animal Nutrition has moved from 47:53 in Q1-FY21 to 77:23 in Q1-FY22 in favour of Human Nutrition.

• Vitamin D3 Human Nutrition volumes continue to grow Q-o-Q and Y-o-Y while that of Animal Nutrition continues to show a decline.

• The benefit of Sec 10AA under Income Tax Act for SEZ units ceases to exist from FY 22 and hence the difference between normal tax and MAT, which shall be utilised from the accumulated MAT credit would be shown as additional charge to Deferred tax. Considering this the tax charge & PAT in this quarter with the previous quarters are not comparable.

Fermenta Biotech Limited

5

Q1-FY22 Financial Highlights

Q1-FY22 Standalone Performance

INR 1,089 Mn INR 276 Mn 25.3% Operational Income Operational EBITDA Operational EBITDA Margin INR 128 Mn 11.7% INR 4.43 / share Net Profit PAT Margin Diluted EPS

==> picture [63 x 43] intentionally omitted <==

Q1-FY22 Consolidated Performance

INR 1,096 Mn INR 257 Mn 23.4% Operational Income Operational EBITDA Operational EBITDA Margin INR 113 Mn 10.3% INR 3.92 / share Net Profit PAT Margin Diluted EPS

INR 113 Mn Net Profit

Fermenta Biotech Limited

6

Vitamin D3 500 Animal Feed Price Trend

==> picture [63 x 43] intentionally omitted <==

==> picture [894 x 373] intentionally omitted <==

----- Start of picture text -----

85.00
80.00
75.00
60.00
33.00
32.00
30.00
25.00
22.00
20.00
18.50 19.00
12.50
9.00
7.60 5.60 8.00 6.25 6.00 6.70 13.90 14.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-CY2021 Q2-CY2021
Min of Low Max of High
----- End of picture text -----

Source: feedinfo.com *As per calendar year

Fermenta Biotech Limited

7

Q1-FY22 – Standalone Income Statement (Ind-AS)

==> picture [63 x 43] intentionally omitted <==

PARTICULARS (INR Mn)	Q1-FY22	Q1-FY21	Y-o-Y	Q4-FY21	Q-o-Q
Operational Revenue	1,089	1,009	7.9%	909	19.8%
Total Expenses	813	761	6.8%	729	11.5%
Operational EBITDA	276	248	11.3%	180	53.3%
Operational EBITDA Margin (%)	25.34%	24.58%	76 Bps	19.80%	554 Bps
Other Income	11	13	(15.4%)	37	(70.3%)
Depreciation	55	39	41.0%	59	(6.8%)
Finance Cost	42	36	16.7%	50	(16.0%)
PBT	190	186	2.2%	108	76.0%
Tax	62	23	NA	12	NA
PAT	128	163	(21.5%)	97	32.0%
PAT Margins (%)	11.75%	16.15%	(440 Bps)	10.67%	108 Bps
Other Comprehensive Income	-	-	NA	(1)	NA
Total Comprehensive Income	128	163	(21.5%)	96	33.3%
Diluted EPS (INR)	4.43	5.65	(21.6%)	3.35	32.2%

Fermenta Biotech Limited

8

Q1-FY22 – Consolidated Income Statement (Ind-AS)

==> picture [63 x 43] intentionally omitted <==

PARTICULARS (INR Mn)	Q1-FY22	Q1-FY21	Y-o-Y	Q4-FY21	Q-o-Q
Operational Revenue	1,096	944	16.1%	995	10.2%
Total Expenses	839	721	16.4%	893	(6.0%)
Operational EBITDA	257	223	15.2%	102	NA
Operational EBITDA Margin (%)	23.45%	23.62%	(17 Bps)	10.25%	1,320 Bps
Other Income	18	13	38.5%	46	(60.9%)
Depreciation	59	41	43.9%	64	(7.8%)
Finance Cost	41	36	13.9%	50	(18.0%)
PBT	175	159	10.1%	34	NA
Tax	60	23	NA	(10)	NA
PAT before Associates & Joint Venture	115	136	(15.4%)	44	NA
Non-controlling interests	(2.00)	-	NA	30	NA
PAT	113	136	(16.9%)	74	52.7%
PAT Margins (%)	10.31%	14.41%	(409 Bps)	7.44%	287 Bps
Other Comprehensive Income	1	-	NA	-	NA
Total Comprehensive Income	116	136	(14.7%)	44	NA
Diluted EPS (INR)	3.92	4.71	(16.8%)	2.56	53.1%

Fermenta Biotech Limited

9

Historical Standalone Income Statement

==> picture [63 x 43] intentionally omitted <==

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

10

==> picture [61 x 40] intentionally omitted <==

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

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

Fermenta Biotech Limited

11

Historical Consolidated Income Statement

==> picture [63 x 43] intentionally omitted <==

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

12

==> picture [63 x 43] intentionally omitted <==

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	7	5
c) Other current liabilities	77	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

13

Historical Consolidated Financial Performance

==> picture [248 x 183] intentionally omitted <==

----- Start of picture text -----

Operational Revenue (INR Mn)
4,047
3,773
2,929
1,096
FY19 FY20 FY21 Q1-FY22
----- End of picture text -----

Operational EBITDA (INR Mn) & Margins (%)

==> picture [259 x 174] intentionally omitted <==

----- Start of picture text -----

37%
1,489
23%
22% 22%
652
817
257
FY19 FY20 FY21 Q1-FY22
EBITDA (INR Mn) EBITDA Margins (%)
----- End of picture text -----

==> picture [124 x 13] intentionally omitted <==

----- Start of picture text -----

Working Capital Days
----- End of picture text -----

==> picture [91 x 14] intentionally omitted <==

----- Start of picture text -----

RoCE & RoE (%)
----- End of picture text -----

==> picture [248 x 166] intentionally omitted <==

----- Start of picture text -----

126
111
92
FY19 FY20 FY21
----- End of picture text -----

==> picture [254 x 161] intentionally omitted <==

----- Start of picture text -----

46%
32% 19%
12%
19%
13%
FY19 FY20 FY21
RoCE (%) RoE (%)
----- End of picture text -----

==> picture [63 x 43] intentionally omitted <==

PAT (INR Mn) & Margins (%)

==> picture [246 x 172] intentionally omitted <==

----- Start of picture text -----

29%
1,175
20%
12%
595 10%
455
113
FY19 FY20 FY21 Q1-FY22
PAT (INR Mn) PAT Margins (%)
----- End of picture text -----

Net Debt to Equity (x)

==> picture [255 x 160] intentionally omitted <==

----- Start of picture text -----

0.56
0.45
0.42
FY19 FY20 FY21
Net D/E(x)
----- End of picture text -----

Fermenta Biotech Limited

14

Disclaimer

==> picture [63 x 43] intentionally omitted <==

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.

==> picture [81 x 67] intentionally omitted <==

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

15