Viyash Scientific Limited · NSE:VIYASH
Viyash Scientific — SeQuent Scientific — H1 FY2019 Earnings Presentation
40 slides from Viyash Scientific's earnings presentation, Nov 30, 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
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 EU & key EM neighboring markets countries & Mexico Manufact
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 five state-of-the-art formulations manufacturing facilities in India, Germany, Turkey, Spain and Brazil with all major regulatory approvals Barcelona Polatli Ambernath Campinas Warburg Spain Turkey India Brazil Germany Approvals EUGMP EUGMP and India, Uga
Slide 12: Firm Footprints across major markets
Firm Footprints across major markets We have three state-of-the-art API manufacturing facilities in India with all major regulatory approvals Vizag Mahad Tarapur India India India Approvals USFDA and EUGMP EUGMP & COFEPRIS Mexico, WHO- cGMP Geneva approval expected shortly Capabilities API facility
Slide 13: 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 14: 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 15: Formulations Skill and Scale
Formulations Skill and Scale
Slide 16: Formulations 7.4X
Formulations 900+ 5 4 35+ Leading revenue Registrations Manufacturing State-of-art R&D driver Facilities R&D Centers Pipeline (3 EUGMP certified) 7.4X Sales growth in last 4 years H1 Key Highlights Revenues in ₹ Mn Robust growth across geographies, driven by 20+ launches and improved market share H1
Slide 17: 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 18: 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 19: 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 20: 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 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 21 © 2018, SeQuent Scientific Limited, All Rights Reserved
Slide 22: R&D Pipeline
R&D Pipeline Therapy Area Product Categories Species Dosage form Injectables 17% 17% 20% 17% 23 60 Solids 29% % % 11% 37% 54% Liquids 17% 6% Production Animal Powders / Companion Animal Premixes 6% 29% Both 9% 11% 6% 60% + Portfolio planned for value creation 31% 80%+ Products targeted for Global ma
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 23 3 24 14+ Scaling the Commercial Manufacturing Filings in R&D capability curve APIs Facilities US and EU Pipeline 3X Growth in sales to regulated markets in 4 years Revenues in ₹ Mn H1 FY19 Key Highlights H1 FY19 H1 FY 18 YoY% Commercial supplies commenced to US, the largest animal health mar
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: Relationship with Top 10 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 28: Financials
Sequent Proven Ability In Life Sciences More than Pharma Financials ALIVIRA SeQuent Scientific Limited www.sequent.in
Slide 29: Consistent performance over quarters
Consistent performance over quarters Revenues YoY “ We delivered robust 27% growth in revenue & 310 basis points margin expansion driven by improved performance Q2’19 2,517 27% across all business verticals. This has resulted in 4 fold Q2’18 1,975 increase in profitability for the quarter. This is t
Slide 30: Strong performance across businesses
Strong performance across businesses YoY% Revenue Distribution Q2’19 Q2’18 YoY% (Constant currency) Formulations 1,777 1,449 22.7% 25.7% Key Highlights Europe 902 720 25.3% 16.1% Overall business delivered strong 27.4% growth YoY Turkey 224 246 -8.8% 34.7% Emerging Markets 402 279 44.0% 32.2% API
Slide 31: Delivering consistent outcome over 10 quarters
Delivering consistent outcome over 10 quarters All values in ₹ Mn Revenue Revenue 2352 2517 4869 1943 1,700 1975 2,090 2249 2,003 2328 3918 1,097 2,797 Q1 Q2 Q3 Q4 H1 ‘17 H1 ‘18 H1 ‘19 EBITDA EBITDA 12.7% 13.2% 10.6% 10.0% 9.6% 320 9.5% 11.2% 570 7.6% 250 5.2% 308 6.2% 226 224 147 190 198 156 337 68
Slide 32: Consolidated Income Statement
Consolidated Income Statement All values in ₹ Mn Q2'19 Q2'19 Q1’19 Q2'18 H1’19 H1’19 H1’18 FY18 PARTICULARS Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited Revenue from Operations 2,517 2,517 2,352 1,975 4,869 4,869 3,918 8,494 Material Consumption (1,310) (1,317) (1,26
Slide 33: Key Balance Sheet items
Key Balance Sheet items All values in ₹ Mn Net Debt to Equity Particulars Mar-18 Sep-18 Comments 0.44 Shareholders' funds 6,476 6,254 Fair valuation of Strides / 0.38 Solara shares 0.27 Minority Interest 370 416 Borrowings 3,049 3,405 Mahad acquisition FY17 FY18 FY19 Cash 598 648 Net debt to EBITDA
Slide 34: Year so far...
Sequent Proven Ability In Life Sciences More than Pharma Year so far... ALIVIRA SeQuent Scientific Limited www.sequent.in
Slide 35: Business Performance
Business Performance All values in ₹ Mn Sales Movement EBITDA Movement 24.3% 69.1% 570 4,869 3,918 337 H1FY18 H1FY19 H1FY18 H1FY19 © 2018, SeQuent Scientific Limited, All Rights Reserved 35
Slide 36: 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 37: FY19 Drivers
FY19 Drivers APIs Formulations H1 Performance FY 19 API business to Maintain above Revenue up 27% YoY accelerate, driven by industry growth EBITDA expansion 310 Business on track commercialisation in across geographies bps YoY to achieve FY19 US and Mahad Bremer to achieve Regulatory tai
Slide 38: Future Outlook
r>) Sequent rah Proven Ability In Life Sciences es ALIVIRA Future Outlook More than SeQuent Scientific Limited Pharma www.sequent.in
Slide 39: 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 40: 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