Fermenta Biotech Ltd · NSE:FERMENTA
Fermenta Biotech — Investor Presentation (February 2022)
37 slides from Fermenta Biotech's investor presentation, Feb 25, 2022
Slide 1: Intimation of Investor Relations Presentation to BSE
Ref: F.No.:49 February 25, 2022 Corporate Relations BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001 Dear Sir, Sub.: Intimation of Investor Relations Presentation – February 2022 Ref: Scrip Code: 506414 Pursuant to the relevant provisions of SEBI (Listing Obligations and
Slide 2: Investor Presentation | February 2022
Investor Presentation | February 2022
Slide 3: Snapshot
Snapshot Top 3 Only manufacturer of Amongst top 3 manufacturers Global Presence in Vitamin D3 in India of Vitamin D3 globally 60+ countries Proprietary technology to 55 Years of Vitamin D3 2 Manufacturing Plants manufacture Vitamin D3 manufacturing experience registered with US-FDA (FFRN) DSIR appro
Slide 4: Company Overview
Company Overview • Fermenta Biotech Limited (FBL) (Erstwhile DIL Ltd.) incorporated in 1951 by Dr. DVK Raju, is Operational Revenue (INR Mn) & engaged in development and manufacturing of pharmaceuticals, biotechnology and Operational EBITDA Margin (%) 4,047 environmental solutions used across variou
Slide 5: Board Of Directors
Board Of Directors Mr. Sanjay Buch - Mr. Krishna Datla Mr. Satish Varma Ms. Anupama Datla Ms. Rajeshwari Datla Mr. Vinayak Hajare Dr. Gopakumar Nair Ms. Rajshree Ojha Mr. Prashant Nagre, Chairman (Independent (Promoter & Executive (Executive Director) (Executive Director) (Non-Executive (Non-Executi
Slide 6: Awards and Recognitions
Awards and Recognitions Pride of Maharashtra India Pharma Awards 2021 Awards 2021 India Pharma Awards 2018 Excellence in R&D – Excellence in Export Pharma International Development of new Best Company of the Year - Excellence in CSR product/technology (Runner up) Excellence in Exports Promotion Exce
Slide 7: FBL Features in the Media
FBL Features in the Media Coverage of CSR activity in The Times of India Dated 30th July 2020 Coverage in Forbes India Issue dated 30th August 2019 Press release coverage in Business Standard Economic Times supplement Dated 7th May 2021 Dated 20th August 2019 ET Now interview telecast on its morning
Slide 8: Milestones
Milestones Leased land at Saykha for future expansion Enhanced Vitamin D3 --- Launch of Vitamin AD2 for Fermenta Biotech Ltd capacity at Dahej Merger of DIL and FBL was oil fortification established with its first Second plant for --- completed --- Establishment of enzyme manufacturing manufacturing
Slide 9: Geographical Presence
Geographical Presence Kullu Fermenta Biotech GmbH Fermenta Biotech USA LLC Fermenta USA LLC Dahej, Saykha Thane Geographical Revenue Mix % (FY21) for Vit D3 and Other API India ROW R&D Centre and Registered Office 28% 26% Manufacturing Facility Europe USA 33% 13% International Subsidiaries Regions P
Slide 10: Manufacturing Plants
Manufacturing Plants Kullu (Himachal Pradesh) • Set up the Biotech plant in 1987 to manufacture Penicillin G Amidase and Acylase enzyme. A new bulk drug division in 2004 to manufacture various APIs like Vitamin D3, Phenyramidol HCI and Silicon Powder. • This plant is certified by WHO-GMP, CDSCO-WC,
Slide 11: Accreditations & Certifications
Accreditations & Certifications* *Accreditations & Certifications are products / site specific Fermenta Biotech Limited 10
Slide 12: R&D and Quality
R&D and Quality R&D • Modern, fully equipped, DSIR approved Research & Development facility complemented by highly skilled and committed scientists. • Providing integrated solutions, processes and products for Biotech and Active Pharmaceutical Ingredients (API) • API R&D, combined with expertise on
Slide 13: Patents Filed
Patents Filed An Improved Process To Improved Cost Effective Irradiation Process Of Pro Synthesis of 5-(3-pyridyl)-2,2’- Synthesize Process for Synthesis of Vitamin D Bithiophene (Sensitizer) 5-(3-Pyridyl)-2, 2’- Vitamin D3 and its Analogue Bithiophene (Sensitizer) Calcifediol from Ergosterol Novel
Slide 14: Business Overview
BUSINESS OVERVIEW
Slide 15: About Vitamin D3
About Vitamin D3 For Humans • Vitamin D3 (Cholecalciferol) is a fat- • Vitamin D has been linked to a multitude of health benefits such as soluble vitamin, responsible for calcium general health and wellbeing, bone and mental health as well as absorption in the body. management and prevention of cer
Slide 16: FBL in Vitamin D3
FBL in Vitamin D3 CAGR Growth FY15 to FY21 Vitamin D3 Revenue (INR Mn) 3,228 2,894 • FBL is a leader in manufacturing Vitamin D3, and has 29% 2,334 2,224 34% the distinction of being the only organization in India 23% 69% 24% to manufacture Vitamin D3 14% 56% • The company has a Non-China dependent
Slide 17: Manufacturing Process and Applications
Manufacturing Process and Applications Backward Integrated Manufacturing Process Vitamin D3 Applications Sheep Wool Scouring of Wool For Humans Cleaned Wool Wool Grease Pharmaceuticals Dietary and Nutritional Supplements Food and Drinks Fortification Lanolin Cholesterol For Animals 7-Dehydrocholeste
Slide 18: Integrated Biotechnology Capabilities
Integrated Biotechnology Capabilities Heritage of innovation in enzymes One-stop Destination for Green Chemistry FBL’s core expertise spans from microbial screening, fermentation, immobilization, biocatalysis, enzyme-mediated antibiotic synthesis to API intermediates & APIs Expertise One-stop destin
Slide 19: Other Segments
Other Segments APIs & Other intermediaries Environmental Solutions • For over 25 years, FBL is • FBL’s Environmental Solutions provide unique a trusted and reliable source advantages in waste water treatment and of Phenyramidol HCl (muscle management through integrated relaxant) & Silicon Powder bio
Slide 20: Monetization of Thane land: Development deal structure
Monetization of Thane land: Development deal structure • As part of its legacy property, Fermenta owns ~6.5 acres of freehold land in Thane Property • This is partly developed by constructing Thane One, an IT/ITES Building • Fermenta has signed Binding Term Sheet with Mextech and granted development
Slide 21: Expanding Our Nutraceutical Basket
Expanding Our Nutraceutical Basket • From single Vitamin D3 to multi-vitamin, the company aims to widen its nutraceuticals ingredients basket within the next 5 years • Developing new technologies enabling FBL to get into value-added ingredients, improving stability, bioavailability and scalability •
Slide 22: Nutraceutical Product Pipeline
Nutraceutical Product Pipeline Vitamin D3 and its various formats for Variants of Fat soluble vitamins Nutrition portfolio Pharmaceuticals Vitamin A Fortified Rice Kernel Dietary & Nutritional Supplements Food Vitamin E Smart Minerals Feed Vitamin D2 Customized Premixes Veterinary Science Vitamin K1
Slide 23: Growth Drivers
Growth Drivers Internal Factors • Strong manufacturing capabilities with enhanced capacity utilizations to meet YoY production targets • Enhancing control and reduced dependence by backward integration World- • Sales footprint in 60+ countries spread across the globe Class Innovation Facilities • Ex
Slide 24: Strategic Initiatives
Strategic Initiatives Enhanced Focus Exiting of non-core business activities and laying long term emphasis on expanding the Nutraceutical business. Capital Allocation Plans All future capital allocation will be focused towards Nutraceuticals business. Real Estate Business The company has taken steps
Slide 25: Risk mitigation measures for COVID-19
Risk mitigation measures for COVID-19 Business Continuity Planning Safeguarding Human Capital Business function recovery Improved control over Support to affected supply chain employees Minimizing disruptions Standard operating to operations procedures on hygiene Business function Sanitization of wo
Slide 26: Industry Overview
INDUSTRY OVERVIEW
Slide 27: Vitamin D Industry
Vitamin D Industry • The Vitamin D market is estimated to account for about USD 1.1 billion in 2019 and is projected to reach Market size of vitamins and CAGR a value of nearly USD 1.7 billion by 2025, growing at a CAGR of 7.0% from 2019 to 2025. 5-year MAT Value MAT Value value July 2014 July 2018
Slide 28: Importance of Vitamin D in Covid-19
Importance of Vitamin D in Covid-19 “The goal should be to raise 25(OH)D concentrations above 40-60 ng/mL (100-150 nmol/L). For treatment of people who become infected with COVID-19, higher vitamin D3 doses might be useful.” – Dr. William Grant* Lower Vitamin D levels may have an impact on the Low V
Slide 29: Vitamin D3 Animal Feed Price Trend
Vitamin D3 500 Animal Feed Price Trend 85.00 80.00 75.00 60.00 33.00 32.00 30.00 25.00 22.00 20.00 20.00 12.50 9.00 12.00 7.60 8.00 6.25 6.70 5.60 6.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Min of Low Max of High Source: feedinfo.com *As per calendar year Fermenta Biotech Limited 28
Slide 30: Nutraceutical Industry
Nutraceutical Industry • The USA, Japan and Europe account for more than 90% of the total global nutraceutical market. Global Nutraceutical Market Size (USD Bn) 578.2 • North America nutraceuticals market is a mature market and is likely to progress at a CAGR of 531.3 over 7.8% from 2016 to 2024. In
Slide 31: Financial Overview
FINANCIAL OVERVIEW
Slide 32: Historical Standalone Income Statement
Historical Standalone Income Statement PARTICULARS (INR Mn) 9M-FY22 FY21 FY20 FY19 Operational Revenue 2,933 3,728 3,005 4,047 Total Expenses 2,359 2,791 2,311 2,634 Operational EBITDA 574 937 694 1,413 Operational EBITDA Margin (%) 19.57% 25.13% 23.09% 34.91% Other Income 45 66 123 123 Depreciation
Slide 33: Standalone Balance Sheet (Ind-AS)
Standalone Balance Sheet (Ind-AS) PARTICULARS (INR Mn) H1-FY22 FY21 FY20 PARTICULARS (INR Mn) H1-FY22 FY21 FY20 Equity 3,857 3,704 3,126 Assets Non-current Assets 3,806 3,745 3,272 a) Equity share capital 144 144 144 a) Property, plant and equipment 1,901 1,538 1,040 b) Other equity 3,713 3,560 2,98
Slide 34: Historical Consolidated Income Statement
Historical Consolidated Income Statement PARTICULARS (INR Mn) 9M-FY22 FY21 FY20 FY19 Operational Revenue 3,024 3,773 2,929 4,047 Total Expenses 2,587 2,956 2,277 2,558 Operational EBITDA 437 817 652 1,489 Operational EBITDA Margin (%) 14.45% 21.65% 22.26% 36.79% Other Income 53 82 123 124 Depreciati
Slide 35: Consolidated Balance Sheet (Ind-AS)
Consolidated Balance Sheet (Ind-AS) PARTICULARS (INR Mn) H1-FY22 FY21 FY20 PARTICULARS (INR Mn) H1-FY22 FY21 FY20 Equity 3,721 3,603 3,094 Assets a) Equity share capital 144 144 144 Non-current Assets 3,830 3,775 3,297 a) Property, plant and equipment 1,901 1,539 1,040 b) Other equity 3,581 3,462 2,
Slide 36: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Operational Revenue (INR Mn) Operational EBITDA (INR Mn) & Margins (%) PAT (INR Mn) & Margins (%) 4,047 3,773 37% 29% 2,929 3,024 1,489 1,175 20% 22% 22% 14% 12% 652 595 817 437 455 3% 78 FY19 FY20 FY21 9M-FY22 FY19 FY20 FY21 9M-FY22 FY19 FY20 FY21 9M-FY
Slide 37: Disclaimer
Disclaimer 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 d
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