Kinaxis, Inc. · TSX:KXS

Kinaxis — Biomanufacturing Summit 2011

21 slides from Kinaxis's conference presentation, Jan 23, 2011

Slide 2: Insights from highly outsourced supply chains
Insights from highly outsourced supply chains Trevor Miles Director, Thought Leadership tmiles@kinaxis.com Copyright © 2011 Kinaxis Inc. All Rights Reserved.
Slide 3: Comparison of Pharma Supply Chains
Comparison of Pharma Supply Chains BioPharmaceutical High-Tech/Electronics Reverse V-shaped BOM Regular A-shaped BOM Nascent outsourcing Pervasive outsourcing Highly regulated Relatively little regulation Product expiry Price ‘expiry’ Over 75% gross margin About 15% gross margin Avg DOI of 200 past
Slide 4: Why compare with High-Tech/Electronics?
Why compare with High-Tech/Electronics? • Highly outsourced • Global supply chains • Very volatile demand • Explosion of products • Consistently outperforms other industries Copyright © 2011 Kinaxis Inc. All Rights Reserved. 4
Slide 10: Very Complex Foundry Manufacturing Process
Very Complex Foundry Manufacturing Process • Variable yields • Low yields • Speed binning Source: http://www.sematech.org • Constantly changing technology – speed/power, size • $3B-$4B investment • 2-3 years from ‘first shovel’ to ‘first wafer’ • 6-18 week manufacturing lead time Copyright © 2011 Ki
Slide 11: Growth of Fabless Semiconductors
Growth of Fabless Semiconductors $300,000 30.00% $250,000 25.00% $200,000 20.00% $150,000 15.00% Semi ($M) Fabless ($M) Fabless/Semi $100,000 10.00% $50,000 5.00% $0 0.00% SourceSI AS Copyright © 2011 Kinaxis Inc. All Rights Reserved. 12
Slide 12: Foundry Concentration = Supply Chain Risk
Foundry Concentration = Supply Chain Risk Fabless EMEA APAC • 24% of Revenue Foundries, 50 Foundries, 100 NA Foundries, • 84% of Companies 100 NA Fabless, 600 APAC Fabless, 500 EMEA Fabless, 200 SourceSI AS Copyright © 2011 Kinaxis Inc. All Rights Reserved. 13
Slide 13: Foundry Concentration = Supply Chain Risk
Foundry Concentration = Supply Chain Risk 2800.0 100 2400.0 90 2000.0 80 1600.0 70 Percent Capacity 1200.0 60 Wafer Starts Utilization 800.0 50 400.0 40 0.0 30 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 07 08 08 08 08 09 09 09 09 10 10 10 SourceSI AS Copyright © 2011 Kinaxis Inc. All Rights Reserved. 14
Slide 14: Postponement is key
Postponement is key Foundry Wafer Wafer Assembl • Very lean Test Customers Fab Sort y • Tightly Push Pull Pull coupled Fabless Semi • Risk Suppliers Assembly Test VMI Customers mitigation Pull • OEM/Fabless Contract Manufacturer – Design Suppliers Assembly Test VMI Customers – Sales Pull • CM/Foundr
Slide 15: Visibility is a core requirement
Visibility is a core requirement  Secure systems integration across a globally distributed heterogeneous manufacturing environment  Automated data exchange with ERP systems Copyright © 2011 Kinaxis Inc. All Rights Reserved. 16
Slide 19: Supply Chain efficiency impacts the bottom line
Supply Chain efficiency impacts the bottom line The Pharmaceutical industry can free up over $43B in cash by operating at the first quartile of industry performance Potential Working Capital Improvement - Pharmaceutical Industry 3Q2009 ($B) 50 45 40 35 $13.70 30 25 $13.50 $1 3.50 20 $43.80 15 10 $16
Slide 20: • Many One
• Single data model • Single UI • Many – Role specific views – Companies • Single set of analytics –– Data S&OP sources –– Objectives Demand planning –– Horizons Supply planning –– Functions Inventory mgt – Lean – CTP • One – … – Place • Imbedded – Second reporting/alerting – Supply Chain • Long/med

Kinaxis — Biomanufacturing Summit 2011 on 6ix

Kinaxis — Biomanufacturing Summit 2011

Slide 1: Copyright © 2011 Kinaxis Inc. All Rights Reserved.

Slide 2: Insights from highly outsourced supply chains

Slide 3: Comparison of Pharma Supply Chains

Slide 4: Why compare with High-Tech/Electronics?

Slide 5: Price 'Expiry' - ASPs Decline 15% per Year

Slide 6: Price 'expiry' experienced throughout SC

Slide 7: Highly Outsourced

Slide 8: Global Supply Chains

Slide 9: Explosion of Products

Slide 10: Very Complex Foundry Manufacturing Process

Slide 11: Growth of Fabless Semiconductors

Slide 12: Foundry Concentration = Supply Chain Risk

Slide 13: Foundry Concentration = Supply Chain Risk

Slide 14: Postponement is key

Slide 15: Visibility is a core requirement

Slide 16: What this means for biopharma

Slide 17: Utilization of Outsourcing in BioPharma

Slide 18: Global Bio-Pharma CMO Market Forecast

Slide 19: Supply Chain efficiency impacts the bottom line

Slide 20: • Many One

Slide 21: Thank You! Questions?