Earnings Presentation Q1FY20 Disclaimer This information may - PowerPoint PPT Presentation

Earnings Presentation Q1FY20

Disclaimer This information may contain certain forward-looking statements/details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views expressed herein. Investors/shareholders/public are hence cautioned not to place undue reliance on these statements/details, and are advised to conduct their own investigation and analysis of the information contained or referred to in this section be fore taking any action with regard to their own specific objectives. Further, the discussion following here in reflects the perceptions on major issues as on date and the opinions expressed here are subject to change without notice. The Company under takes no obligation to publicly update or revise any of the opinions or forward- looking statements expressed in this section, consequent to new information, future events or otherwise. Earnings Presentation | August 2019 2

Company Overview What are enzymes? Enzymes are natural protein molecules that act as catalysts within living cells, produced by all living organisms. Function as specialized catalysts and accelerate the pace of biochemical reactions. Advanced uses enzymes to replace chemicals in, and improve efficiency of, a wide variety of industrial processes for its customers. Company Overview Mission Vision Advanced Enzymes is a research driven company with global It is our mission to see that Our vision at Advanced leadership in the manufacturing of enzymes. We are every human being is able Enzymes is to become the committed to providing eco-safe solutions to a wide variety of to take advantage of the largest, enzyme-based, industries like human health care and nutrition, animal power of enzymes for well- value provider to nutrition, baking, fruit & vegetable processing, brewing & being and leading a healthy consumers and processors malting, grain processing, protein modification, dairy life! globally! processing, speciality applications, textile processing and others. Our aim is to replace traditionally used chemicals with eco-friendly enzymatic solutions. Earnings Presentation | August 2019 3

Advanced Enzyme Technologies Limited – A Rising Global Star Revenue (₹ mn) Indian enzyme company 1 st Highest market share in India Listed integrated enzyme player globally 4,196 2 nd 2 nd Amongst Top 15 Global Enzyme Companies 2,321 Manufacturing Units – 7 R&D Units – 7 FY 15 FY 19 India - 5 USA - 2 India – 4 | USA – 1 | Germany – 2 EBIDTA (₹ mn) 1,870 931 68+ 400+ 700+ 45+ 25+ FY 15 FY 19 Enzymes Proprietary Customers Countries Years of & Probiotics Products Worldwide Worldwide Fermentation Presence Experience PAT (₹ mn) 1,159 7 11 2* 420 550+ 518 m 3 Fermentation Registered Food Enzyme GRAS Dossier Employees Patents Dossiers filed with evaluated by US Capacity FY 15 FY 19 EFSA FDA Note: Facts & Figures as on 31 st March 2019 *1 GRAS Dossier under evaluation with US FDA Note: 2015: as per IGAAP | 2019: as per IndAs Earnings Presentation | August 2019 4

Results Summary – Q1FY20 (Consolidated) *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 545 1,103 487 1,043 340 312 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Revenue Breakup ₹ in Million *YoY Growth Animal HC Human HC Industrial Bio-Processing -24% -1% (18%) (47%) 0% 7% 128 807 132 Q1FY20 757 132 129 Q1FY19 Note: 1. On Consolidated Basis 3. EBIDTA is including other income 5. PAT is before minority 7. Ind AS adjustments are carried out on account 2. Segmental Revenue excluding excise duty 4. Does not include sales made by 6. Segment-wise revenue does not of commission and discount. evoxx include other operating income Earnings Presentation | August 2019 5

Revenue Split – Q1FY20 Q1FY20 Q1FY19 Segmental Revenue Split (%) Segmental Revenue Split (%) 10% 12% 12% 13% 76% 77% Animal HC Human HC Bio-Processing Animal HC Human HC Bio-Processing Geographical Revenue Split (%) Geographical Revenue Split (%) 2% 2% 6% 4% 45% 51% 41% 44% 3% 2% Asia (ex- India) Others India Europe USA Asia (ex- India) Others India Europe USA Note: 1. On Consolidated Basis 3. EBIDTA is including other income 5. PAT is before minority 7. Ind AS adjustments are carried out on account 2. Segmental Revenue excluding excise duty 4. Does not include sales made by 6. Segment-wise revenue does not of commission and discount. evoxx include other operating income Earnings Presentation | August 2019 6

Profit & Loss (Consolidated) – Q1FY20 ₹ in Million except per share data Q1FY20 Q4FY19 Q1FY19 FY19 FY18 Particulars Unaudited Y-o-Y (%) Y-o-Y (%) Unaudited Audited Audited Audited 4,196 Income from Operations 1,103 1,104 1,043 6% 3,957 6% Expenses 611 2,588 2,500 4% 631 660 3% Profit from Operations before Other Income, 432 1,608 1,457 472 444 9% 10% Finance Costs and Exceptional Item Other Income 26 4 180% 50 14 261% 11 Profit from ordinary activities before Finance 436 1,658 1,471 483 471 11% 13% Costs and Exceptional Item Finance costs 14 39 81 8 6 (41%) (52%) Profit from ordinary activities before 465 422 13% 1,620 1,390 17% 475 exceptional item and tax Profit from ordinary activities before tax 422 1,620 1,390 475 465 13% 17% Tax 110 461 454 135 130 23% 1% Net Profit for the period 312 1,159 936 24% 340 335 9% 2.66 8.07 Earnings Per Share 2.89 9.95 2.99 Earnings Presentation | August 2019 7

Results Summary – FY19 *Revenue (₹ mn) EBITDA (₹ mn) PAT (₹ mn) 4,196 1,159 1,819 1,640 3,957 936 FY18 FY19 FY18 FY19 FY18 FY19 Revenue Breakup ₹ in Million *YoY Growth Animal HC Human HC Industrial Processing -24% (1%) (1%) 10% 9% 482 3,133 493 FY19 2,860 498 444 FY18 7. Ind AS adjustments are carried out on account 5. PAT is before minority Note: 1.. On Consolidated Basis 3. EBIDTA is excluding other income of commission and discount. 6. Segment-wise revenue does not 2. Segmental Revenue excluding excise 4. Does not include sales made by Evoxx include other operating income duty Earnings Presentation | August 2019 8

Revenue Split – FY18 vs FY19 FY19 FY18 Segmental Revenue Split (%) Segmental Revenue Split (%) 12% 12% 12% 13% 76% 75% Animal HC Human HC Bio-Processing Animal HC Human HC Bio-Processing Geographical Revenue Split (%) Geographical Revenue Split (%) 1% 2% 4% 4% 47% 50% 41% 45% 3% 3% Asia (ex- India) Others India Europe USA Asia (ex- India) Others India Europe USA 5. Ind AS adjustments are carried out on account 4. Segment-wise revenue does not Note: 1.. On Consolidated Basis 3. Does not include sales made by Evoxx of commission and discount. include other operating income 2. Segmental Revenue excluding excise duty Earnings Presentation | August 2019 9

Balance Sheet (Consolidated) – FY19 ₹ in Million FY19 FY18 Particulars Audited Audited Assets Property, plant and equipment 1,618 1,667 Capital work-in-progress 105 105 Intangible assets 622 662 Goodwill 2,715 2,584 Other non-current assets 183 143 Current assets 2,821 2,107 Assets held for sale 48 48 Total Assets 8,111 7,316 Equity And Liabilities Equity share capital 223 223 Other equity 6,565 5,368 Non-controlling interest 260 226 Non-current liabilities 358 471 Current liabilities 651 987 Liabilities classified as held for sale 54 41 8,111 7,316 Total – Equity and Liabilities Earnings Presentation | August 2019 10

Strong Financial Performance – FY19 ₹ in Million Revenue from Operations EBIDTA & EBIDTA Margin (%) 2,500 50% 47% 45% 4,196 48% 3,957 2,000 45% 42% 3,431 46% 1,870 42% 2,938 1,654 1,500 1,534 44% 1,389 2,321 42% 1,000 931 40% 500 38% 0 36% FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY19 EBIDTA EBIDTA MARGIN CAGR=15.91 CAGR=19.05 % % 28% PBT & PBT Margin (%) PAT & PAT Margin (%) 39% 1750 50% 1200 28% 27% 40% 41% 34% 45% 26% 1550 35% 27% 1000 40% 1,159 1350 1371 1620 929 936 26% 35% 23% 800 1150 1182 1390 768 30% 25% 950 600 25% 24% 750 518 748 20% 400 2… 550 23% 15% 350 200 10% 22% 150 5% 0 21% -50 0% FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 PBT PBT Margin (%) PAT PAT Margin (%) CAGR=21.31% CAGR=22.30% Note: As per IGAAP | FY17, FY18, FY19 – as per IndAs All numbers are on Consolidated basis ROE = Profit after tax / Average shareholder equity; RoCE = (Net Profit before Tax , Exceptional and extraordinary items + Finance cost) / Average (Net debt + Networth) Earnings Presentation | August 2019 11

Strong Financial Performance – FY19 Net Working Capital (Days) Net Worth (₹ mn) 128 6,788 5,591 119 4,640 112 110 108 2,781 2,120 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 ROE (%) & ROCE (%) Net Debt to Equity (x) 34% 0.5 27% 27% 26% 26% 0.4 28% 24% 19% 19% 18% 0.1 0.02 0.01 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 ROE (%) ROCE (%) Note: As per IGAAP | FY17, FY18 & FY19 – as per IndAs All numbers are on Consolidated basis Net working capital days =((Trade receivables + inventories – Trade payables)/ Revenue from operations)*365 Net Debt = Long term debt + short term debt + current maturities of long term debt – Cash & Cash Equivalent Earnings Presentation | August 2019 12