Viyash Scientific Limited · NSE:VIYASH

Viyash Scientific — Sequent Scientific — Investor Presentation (April 2015)

20 slides from Viyash Scientific's investor presentation, Apr 28, 2015

  1. Slide 1: Sequent – Proven Ability in Life Science

  2. Slide 2: Important Disclosure

    Important Disclosure This presentation has been prepared by Sequent Scientific Limited (the “Company”) based upon information available in the public domain solely for information purposes without regard to any specific objectives, financial situations or informational needs of any particular person

  3. Slide 3: Sequent – An Attractive Opportunity in Animal Health and Niche Human APIs

    Sequent – An Attractive Opportunity in Animal Health and Niche Human APIs  Integrated pharmaceutical company operating in the domains of Animal Health API / formulations and Human Health API  Strategic focus of the Animal health segment towards production animals  72%(1) owned by certain promoter

  4. Slide 4: Promoter Group – Demonstrated Track Record of Significant Value Creation

    Promoter Group – Demonstrated Track Record of Significant Value Creation Business strategy and key focus areas for Promoter Group 1 Pick niche areas in pharma with limited competition and better margins 2 Focus on areas with presence of fewer Indian players 3 Continuous business evolution in line wi

  5. Slide 5: Strategic Refocusing of the Business

    Strategic Refocusing of the Business Sequent then… …and now API led strategy API and Formulations led strategy Volume driven Value driven Emerging markets footprint Emerging and Regulated markets footprint VISION – ‘To be amongst the leading global animal health companies by 2018’ Key Strategic Init

  6. Slide 6: Animal health – Large Growing and Diverse Sector

    Animal health – Large Growing and Diverse Sector Overview Total Animal Health Market Size (US$bn) Production Animal Animal Health Companion Animal 41.9  Nutrition  Medicines  Pet supplies 6.8 CAGR  Genetics  Vaccines  Vet services 29.8  Food safety  Medicinal feed  Diagnostics 10.7 2010-14

  7. Slide 7: Compelling Underlying Trends Driving Global Demand

    Compelling Underlying Trends Driving Global Demand Production Animals Companion Animals Global population growth Growing middle class and urbanisation, particularly in emerging markets Increased demand for animal protein Increased pet ownership Productivity improvements Increased medicalisation for

  8. Slide 8: Animal Health – Attractive Industry Dynamics

    Animal Health – Attractive Industry Dynamics Changing Industry  Emergence of standalone animal health companies Dynamics  Increasing oversight of regulatory compliance(2) Distinct Product Portfolio  Non-overlapping product portfolio of ‘Top 10’ companies(1)  Buyers are pet owners and animal farm

  9. Slide 9: Well Positioned to Capitalize on the High Growth Animal Health Sector in India

    Well Positioned to Capitalize on the High Growth Animal Health Sector in India The Indian market is subscale providing room for it to be the second-fastest growing market globally (US$m) 732 732 CAGR CAGR 72 165 461 2010-14 2014-19 461 2010-14 2014-19 340 33 7.9% 9.7% 340 304 7.9% 9.7% 130 19 660 10

  10. Slide 10: Growing Animal Health APIs business

    Growing Animal Health APIs business Business Overview New Initiatives  Offers a wide range of products, predominantly in  Investments in R&D; launched 5 new products in last 18 Anthelmintics months with another 12 under development  Serves customers across US, Europe, LATAM & India  Expanding po

  11. Slide 11: Significant Investments Towards Building a Regulated Market Focused Formulations Business

    Significant Investments Towards Building a Regulated Market Focused Formulations Business Overview  Forayed into the formulation exports as a forward integration for animal health APIs in 2006  Sales made through distributors primarily in Africa  Launched formulation business in India in 2012 foc

  12. Slide 12: Significant Investments Towards Building a Regulated Market Focused Formulations Business (contd')

    Significant Investments Towards Building a Regulated Market Focused Formulations Business (contd’) India Emerging Markets Regulated Markets  Presence in cattle Rx, poultry  Already established presence in  Provet acquisition provides access Current Position nutrition and dairy nutrition Africa, M

  13. Slide 13: Established Relationships with Global Animal Health Companies

    Established Relationships with Global Animal Health Companies Overview Global Top 10 Animal Health(1)  Supplying APIs to 8 out of Company 1  Albendazole supply since last 6 years with ongoing supplies for 3 other APIs top 10 global animal health  Ongoing discussions to supply 3 more APIs companie

  14. Slide 14: Strong Focus on Research and Development to Build a Pipeline for Consistent Growth

    Strong Focus on Research and Development to Build a Pipeline for Consistent Growth Research center in Mangalore Product portfolio and pipeline  Capability to rapidly scale up the portfolio and successfully execute the regulatory filing strategy Animal Animal API Human API Formulations No. of Produc

  15. Slide 15: Operations Underpinned by Well-invested Manufacturing with Strict Adherence to Quality and Compliance

    Operations Underpinned by Well-invested Manufacturing with Strict Adherence to Quality and Compliance Significant investments in infrastructure and regulatory systems to ensure compliance with continuously increasing regulatory standards Animal Health Formulations Animal Health API Human API Polatli

  16. Slide 16: Presence in Niche Human API Segment Providing Stable Cash Flows

    Presence in Niche Human API Segment Providing Stable Cash Flows Business Overview Recent Initiatives  Focus on mature APIs with availability issues and low  Long term licensing agreement with Gilead to make volume / decreasing competition molecules generic version of hepatitis C drug Sofosbuvir an

  17. Slide 17: Multiple Levers to Support Growth Strategy

    Multiple Levers to Support Growth Strategy New Capabilities and Process Launch of New Products Entry into New Markets Enhancement  Launch of niche opportunities in  Invest in product development  Evaluating the human API space for the regulated markets partnerships/collaborations to tap US and AN

  18. Slide 18: Summary Financials

    Summary Financials Net Sales from Operations Q4-FY15 Revenue Split (INR million) 4,555 4,654 By Geography 221 602 3,269 516 US and EU 3,952 4,432 30% 2,753 RoW 47% FY 2013 FY 2014 FY 2015 Pharma (Continuing Operations) Other Regulated Markets Specialty Chemicals (Operations Discontinued during FY15)

  19. Slide 19: Shareholding Pattern and Corporate Structure

    Shareholding Pattern and Corporate Structure Shareholding Pattern(1) (As on March 31, 2015) Corporate Structure Sequent Scientific Limited India 26% 100.00% 73.43%(2) Alvira Animal Health Sequent Research Limited Limited India India 2% 100.00% 72% Alvira Animal Health Limited Ireland Promoters ESOP

  20. Slide 20: Sequent is Well Positioned to Capitalise on the Global Animal Health Opportunity

    Sequent is Well Positioned to Capitalise on the Global Animal Health Opportunity Market Characteristics Sequent Advantage Limited competitive intensity from India  Amongst the few Indian players with critical mass in the animal health space Partnerships critical for  Long and established relations

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