Viyash Scientific Limited · NSE:VIYASH
Viyash Scientific — SeQuent Scientific — Investor Presentation (September 2018)
43 slides from Viyash Scientific's investor presentation, September 2018
Slide 1: Investor Presentation
r>) Sequent rah Proven Ability In Life Sciences es ALIVIRA Investor Presentation More than SeQuent Scientific Limited Pharma www.sequent.in
Slide 2: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "pl
Slide 3: A New Horizon: Pure Play Animal Healthcare
A New Horizon Pure Play Animal Healthcare
Slide 4: Animal health – Large Growing and Diverse Sector
Animal health – Large Growing and Diverse Sector All values in $ Bn Total Animal Healthcare Market Size CAGR 42 2010-14 2014-19 6.80 30 6.6% 7.2% 10.7 Rest of World 23 4.56 Asia-Pacific 7.8% 8.1% 3.36 7.2 5.3 11.9 Europe 8.0% 8.2% 8.6 6.8 North America 12.6 6.0% 6.7% 7.5 9.3 5.5% 6.3% 2010 2014 2019
Slide 5: Animal Health- The BEST of both worlds
Animal Health- The BEST of both worlds Specialty Commodity Branded Global Animal FMCG Pharma Generic Generic Health R&D Expenses R&D for ease of use & drug delivery Complex regulatory requirements leading to Regulatory Barriers disproportionate R&D returns IP Barriers Few products under patent prote
Slide 6: Alivira emerges as India's Largest animal health company within 3 years of operations
Alivira emerges as India’s Largest animal health company within 3 years of operations 1 First Global pure-play Animal Health Company from India: API Business Demerger of Human Business completed Compliance and Efficient operations provides competitive advantage Stellar improvement in Annual performa
Slide 7: Differential market attributes, Alivira's distinctive approach
Differential market attributes, Alivira’s distinctive approach Indian Pharma Unique Animal Health/ Alivira’s Approach Veterinary characteristics Approach ▪ Manufacturing driven strategy taken ▪ Limited scale “in-market” local ▪ Applying cutting-edge resources to global business remain ahead of the c
Slide 8: Differential market attributes, Alivira's distinctive approach
Differential market attributes, Alivira’s distinctive approach Indian Pharma Unique Animal Health/ Alivira’s Approach Veterinary characteristics Approach ▪ Partner approach ▪ Branded generics market ▪ Established global front end for last ▪ Price position with customers and ▪ Veterinarian connect is
Slide 9: Key Acquisitions
Key Acquisitions Acquired Entities Provet/Topkim Karizoo Evance N-VET / Fendigo Bremer Markets Turkey Spain Brazil Rest of EU Germany ▪ Presence in Turkey & ▪ Presence in 15 key EU ▪ Presence in Brazil ▪ Presence in 4 key EU ▪ Presence in key EU neighboring markets countries & Mexico ▪ Manufacturing
Slide 10: Fast expanding market coverage
Fast expanding market coverage 100+ countries and progressing 9% 2% 13% 8% 56% 12% Europe LATAM Emerging Markets Turkey India North America & ANZ © 2018, SeQuent Scientific Limited, All Rights Reserved 10
Slide 11: Firm Footprints across major markets
Firm Footprints across major markets We have seven state-of-the-art manufacturing facilities in India, Germany, Turkey, Spain and Brazil with all major regulatory approvals Vizag Barcelona Polatli Tarapur Ambernath Campinas Warburg India Spain Turkey India India Brazil Germany Approvals USFDA and EU
Slide 12: Advantageously placed in a growing opportunity
Advantageously placed in a growing opportunity 23.4 Industry to grow at a CAGR of ~5% 12.4 with Production animal segment 18.3 2017 2022 having the larger pie 15.6 Focus Area Production Animals Companion Animals Global population growth & focus Increased Productivity on well being Increased demand i
Slide 13: Strong Management team
Strong Management team Manish Gupta Sharat Narasapur Tushar Mistry Shrikant Makode Managing Director Manufacturing Strategy Chief Financial Officer API Ramon Vila Jose Nunes Filho Dr. Huseyn Aydin Ashish Kakabalia Europe LATAM Turkey Business Development and R&D © 2018, SeQuent Scientific Limited, A
Slide 14: Formulations: Skill and Scale
Formulations Skill and Scale
Slide 15: Formulations 7.4X
Formulations Leading revenue 500+ 5 4 35+ Registrations Manufacturing State-of-art R&D driver Facilities R&D Centers Pipeline (4 EUGMP certified) 7.4X Sales growth in last 4 years More than 50% sales to regulated markets Innovative products catering to all therapeutic segments 1/3 products leverage
Slide 16: A steady foundation for global expansion
A steady foundation for global expansion ▪ Europe, LATAM, Turkey, Geographic Product ▪ Comprehensive portfolio India, Africa and SE Asia Presence Portfolio covering feed, nutritional and therapeutic classes ▪ Recent foray into France & Ukraine ▪ Addresses multitude of species across therapy classes
Slide 17: Across Multiple Geographies
Across Multiple Geographies Geography Our Presence Growth Drivers and Focus Areas Europe ▪ Front end team of 35+ with presence in 6 of the top 10 EU ▪ Leverage manufacturing base in Spain and Germany with countries (ES, NL, BE, SE, DE, GR) and 15 other EU markets R&D facility in Barcelona through di
Slide 18: Across Multiple Geographies
Across Multiple Geographies Geography Our Presence Growth Drivers and Focus Areas LATAM ▪ Brazil- 25+ registered products; GMP manufacturing facility ▪ Addition of therapeutic products across nutritional approved by MAPA, Field force 11+ additives and supplements ▪ Mexico- 28+ registered products; F
Slide 19: End to end capabilities for an integrated play
End to end capabilities for an integrated play Manufacturing Facilities R&D Capabilities Dosage Form Spain Turkey Brazil India Germany Spain Turkey India Brazil APIs Oral Solution Liquid for inhalation Oral Suspension Water Soluble Powder Drug Premix Nutritional Feed Add. Tablets Pre Filled Syringes
Slide 20: FDF business gaining traction
FDF business gaining traction New Products Launched in FDF business Key Highlights Revenue Growth in Q1’19 23.1% Q1’19 10+ ▪ Robust growth across geographies, led by Europe (14%+), Latam (17%+) and Emerging Markets (31%+) ▪ Turkey sales up by 16%+ on constant currency, new measure to control abuse o
Slide 21: R&D to drive value creation in FDF business
R&D to drive value creation in FDF business 60% 63% 1/3rd 35+ of our products First Generics of our portfolio formulations leverage our and Niche made up of under API-Integrated Products Injectables development Approach © 2018, SeQuent Scientific Limited, All Rights Reserved 21
Slide 22: R&D Pipeline
R&D Pipeline Species Therapy Area Dosage form Injectables 14% Production Animal Solids 40% 17% 12% 60% 31% 11% 63% Liquids Companion 6% Animal Powders / Premixes 9% Development Location 8% Product Categories 29% 12% Day 1 opp. Spain 30% 35% First generic Antibiotic NSAID Anticoccidial Incremental 65
Slide 23: API: Edge in Animal Health
sequent CAMs API: Edge in Animal Health Mor e than SeQuent Scientific Limited www.sequent.in Pharma
Slide 24: APIs 3X
APIs Scaling the 23 2 22 14+ Commercial Manufacturing Filings in R&D capability curve APIs Facilities US and EU Pipeline 3X Growth in sales to regulated markets in 4 years Margin expansion through focus on regulated markets New product strategy around patent expiry, innovation-driven products and ma
Slide 25: Comprehensive API Business
Comprehensive API Business Anthelmentic 3% 3%3% Antiprotozoal 3% 5% NSAID / Anesthetics Our dedicated USFDA approved animal health API facility at Vizag – 1st in India 43% Supplements 20% Antibiotic Business Key Products Strategic Progression Beta Agonist Ecto-Parasiticides ▪ Offers 23 products ▪ Be
Slide 26: USFDA Approved Veterinary API facility
USFDA Approved Veterinary API facility ▪ World Class, State of the art manufacturing facility at Vizag with annual capacity of 1,000 MT ▪ 225kl reactor capacity with six clean rooms and multi product capabilities ▪ 45 acre land area with significantly enhanced capacities & room for further growth ▪
Slide 27: Investments in Vizag API bearing fruits
Investments in Vizag API bearing fruits API business Key Highlights Revenue Growth in Q1’19 Growth to top 5 players 15.5% 4X ▪ ▪ API Business gains further traction with a growth of 15.5% Strategy of being partner of choice for Global ‘Top 5’ paying off ▪ Global ‘Top 5’ companies now account for 30%
Slide 28: Relationship with Top Global Animal Health Players – An Edge
Relationship with Top 10 Global Animal Health Players – An Edge Top 10 Animal Health Companies Under Discussion Under Qualification Commercialized Company A 2 0 4 Company B 6 4 5 Company C 4 0 4 Company D 1 1 1 Company E 4 1 4 Company F 5 3 3 Company G 1 3 5 Company H 1 1 1 Company I 4 4 3 Company J
Slide 29: Financials
Sequent Proven Ability In Life Sciences More than Pharma Financials ALIVIRA SeQuent Scientific Limited www.sequent.in
Slide 30: A robust beginning of the financial year
A robust beginning of the financial year We delivered robust growth in revenue with our improved Revenues QoQ operating leverage leading to a 300 basis point improvement 21.1% in the margins. The performance would have been even Q1’19 2,352 better had we not witnessed the currency headwinds in Turke
Slide 31: Consolidated Income Statement
Consolidated Income Statement All values in ₹ Mn Q1 '19 FY18 Unaudited Q4 '18 Q1 '18 Audited Particulars Audited Unaudited 2,352 8,494 Revenue from Operations 2,328 1,942 (1,265) (4,625) Material Consumption (1,235) (1,061) Gross Margin 1,086 1,093 881 3,870 % 46.2% 46.9% 45.4% 45.6% Operating Expen
Slide 32: Significant ramp up in Europe and key EMs
Significant ramp up in Europe and key EMs All values in ₹ Mn YoY% Key Highlights Geography-wise Sales Q1’19 Q1’18 YoY% (Constant Overall business has grown by 14.5% over Q1 FY18, currency) without considering Bremer APIs 602 521 15.5% 12.3% ▪ API Business grew by 15.5% Formulations 1,750 1,422 23.1%
Slide 33: Relentless focus on execution
Relentless focus on execution All values in ₹ Mn Revenue Revenue 76.8% 16.2% 7.6% 16.2% 23.3% 2,090 2249 2328 8494 1942 1975 2,003 1,700 6,890 1,098 Q1 Q2 Q3 Q4 FY17 FY18 EBITDA EBITDA 140 440 50 206 190 bps bps bps bps bps 13.2% 9.6% 9.5% 10.0% 11.2% 7.6% 6.2% 5.2% 308 871 190 198 226 224 578 68 14
Slide 34: Financial Indicators
Financial Indicators All values in ₹ Mn Revenue from Operations EBITDA PAT 23.3% 50.6% 8,494 871 102 6,890 578 -139 FY17 FY18 FY17 FY18 FY17 FY18 All values in ₹ Mn © 2018, SeQuent Scientific Limited, All Rights Reserved 34
Slide 35: Key Balance Sheet items
Key Balance Sheet items All values in ₹ Mn Particulars 31-Mar-18 Net debt to EBITDA Net Debt to Equity ROCE Current ratio Shareholders' funds 6,476 0.38 2.34 Minority Interest 370 5.05 13.4% 0.27 Borrowings 3,046 2.97 8.3% Cash 598 2.02 Investments 2,217 Tangible Assets 2,269 Intangible Assets 2,671
Slide 36: Year so far...
Sequent Proven Ability In Life Sciences More than Pharma Year so far... ALIVIRA SeQuent Scientific Limited www.sequent.in
Slide 37: Business Performance
Business Performance All values in ₹ Mn Sales Movement EBITDA Movement 21.1% 2,352 70.0% 250 1,942 147 Q1FY18 Q1FY19 Q1FY18 Q1FY19 37 © 2018, SeQuent Scientific Limited, All Rights Reserved
Slide 38: Year so far…
Year so far… Bremer - Strategic ▪ Acquired Bremer in Q1FY19 adding injectables capability acquisition ▪ Addition of missing dosage form capabilities Turkish manufacturing unit ▪ With this approval, Alivira now has 4 EU GMP certified formulations manufacturing received EU GMP approval units, with one
Slide 39: Acquired EU-GMP API facility at Mahad
Acquired EU-GMP API facility at Mahad Complements our current manufacturing at Vizag (USFDA approved) and Tarapur (Intermediates) ▪ Comprehensive API manufacturing facility spread over 6 acres of land with 23 reactors having cumulative capacity of 76KL. ▪ Site is approved by EU authorities and also
Slide 40: FY19 Drivers
FY19 Drivers APIs Formulations Global Market Strategy ▪ API business to ▪ Maintain above ▪ Focus on uncrowded accelerate, driven by industry growth niche opportunities commercialisation in across geographies ▪ Grow relevant US ▪ Bremer to achieve capabilities to ▪ Increasing penetration breakeven by
Slide 41: Future Outlook
r>) Sequent rah Proven Ability In Life Sciences es ALIVIRA Future Outlook More than SeQuent Scientific Limited Pharma www.sequent.in
Slide 42: Takeaway- Aiming to become a Top 10 Animal Health Company by FY22
Takeaway- Aiming to become a Top 10 Animal Health Company by FY22 New Markets New Segments New Capabilities • Expand presence in Top • Commercialization of • Expand EU Establish Alivira 10 EU markets Formulations R&D manufacturing as a top 10 global pipeline across EU capability- animal health • Ent
Slide 43: Thank You
Sequent Proven Ability In Life Sciences ALIVIRA Thank You SeQuent Scientific Limited CIN: L99999MH1985PLC036685 Registered Office: 301, 3rd Floor, Dosti Pinnacle, Plot No. E7, Road No. 22,Wagle Industrial Estate, Thane (W) - 400 604, Maharashtra Tel No: +91 22 4111 4777 | Website: www.sequent.in | E
SeQuent Scientific — Investor Presentation (September 2018) on 6ix