Imperial Logistics — Non-Deal Roadshow (March 2014)
37 slides from Imperial Logistics's roadshow presentation, March 2014
Slide 1: Africa Investors Trip
Africa Investors Trip March 2014
Slide 2: Agenda
Agenda Africa market Regions in focus Market Needs in Africa Options for Market growth Challenges ad Opportunities Imperial Health Sciences
Slide 3: Distribution Realities In Africa
Distribution Realities In Africa “Lions on the Move” - GDP growth > 5% … pharma even higher Trading block and language driven economics Cross border delays, in & outbound Traditional product supply lanes exist for Francophone, Lusophone Compliance … esp Zone III / Zone IV limitations Governance – in
Slide 4: The Growth Opportunity Is Material
The Growth Opportunity Is Material … 2020 – 18.6m diabetics 1m new cancer pts pa 60m hypertensive patients Emerging transport corridors 2025 - 25% growth in urban pop 3.4% pa 2030 - > 60yrs population doubles 2050 - 60% urbanised “Value for Many” replaces “Value for Money”
Slide 5: Rising Stars in SSA
Rising Stars in SSA Non-exhaustive Morocco 4 Established markets in 2011 2011 Sales $1.28 : 11-"16 CAGR: 6% \ Algeria y 2% 2011 Sales Egypt “11-716 CAGR: 2011 Sales $3.0B “11-716 CAGR: 14% 9% 2011 Sales $659 “11-716 CAGR: 17% 2011 Sales $1.88 “11 -16 CAGR: 13% 2011 Sales “11 -"16 CAGR: $56M 12% Sout
Slide 6: African Markets
African Markets Rapid growth expected until 2020 at circa 10% CAGR Fuelled by increasing healthcare expenditure and NCDs > 50 pharmaceutical manufacturers - 20% local - 80% MNCs 4 major groups - MNCs, Chinese, Indian, Northern and Southern Africa Most imports from India, Switzerland, UK, SA and Fran
Slide 7: East Africa
East Africa Kenya market 2013 circa 642M USD – Patented drugs = 9% – Generic drugs = 63% – OTC = 28% Kenya comprises circa 80% of regional volumes Exports (Tanzania, Uganda, Sudan and Somalia) CAGR = 18% Untapped sales in adjacent countries – Limited distributor funding – Stock outs – Lead times Uga
Slide 8: West Africa
West Africa 2007- 2012- 2007 2012 2013 2014 2015 2017 2012 2017 US$ US$ US$ US$ US$ US$ CAGR CAGR Ghana 233 468 536 607 682 841 15% 12% Nigeria 606 1,137 1,255 1,405 1,585 2,086 13% 13% Ivory Coast 159 199 215 232 250 292 5% 8% Senegal 144 173 181 189 196 211 4% 4% Cameroon 84 120 130 137 144 159 7%
Slide 9: Needs 1 - Regulatory Harmonization
Needs? 1 - Regulatory Harmonization AU Decision 55 - Abuja Summit January 2005 Mandated AU commission to develop Pharmaceutical Manufacturing Plan for Africa (PMPA) Drug regulation harmonization is a key component of PMPA AMRH established in Feb 2009 through NEPAD Implementation through RECs with su
Slide 10: African Medicines Regulatory Harmonization
African Medicines Regulatory Harmonization Aims – Reduce 50 NDRAs to 5-6 regional groups – Harmonize registration, technical documentation, procedures & decision making processes – Reduce time taken to issue market authorization – Improve transparency NEPAD conference “Building partnerships for Sust
Slide 11: The Case Of EAC
The Case Of EAC Established constitutional tools and technical outlines on implementation - currently in circulation for comments/edits Each country has been given specific tasks Common technical documents with joint reviews and decisions Each country maintains sovereignty of legislature, fees etc.
Slide 12: Needs 2 - Local Manufacture
Needs? 2 = Local Manufacture IMPORTS (1 to 10) • National vs Donor influence Rank Country [R million] 1 India 1,847 • Health as an electoral issue 2 Germany 1,408 • Health as a macroeconomic issue 3 UK 1,294 4 France 1,204 • Level playing field? 5 Italy 1,113 6 USA 995 • At least REGIONAL collaborat
Slide 13: Needs 3 - Supply Chain Rationalisation
Needs? 3 = Supply Chain Rationalisation A myriad of middle-men – First line buyers (FLBs) - Push up the cost of products – Local distributors - Established logistics > 75% of the private sector is not fully regulated > 75% of private pharmacies are in urban / semi-urban settings Most transport outso
Slide 14: Needs 4 - Wholesaler Development
Needs? 4 = Wholesaler Development • Natural oligopoly • US – 3 = 85% • UK – 3 = 65% • Germany – 4 = 75% • The Cs of Success • Capacity • Capability • Compliance • Conduct • Catalogue • Competition • Credit • Customers
Slide 15: Needs - Matching Responsibility & Capacity
Needs? 5 - Matching Responsibility & Capacity 600 LOW VOLUME / HIGH LOW VOLUME VOLUME// HIGH VOLUME / RELIABILITY SUPPLIERS RELIABILITY SUPPLIERS 500 RELIABILITY SUPPLIERS RELIABILITY SUPPLIERS 400 VOLUME 300 SITES LOW 200 100 0 VOLUME SITES HIGH VOLUME SITES LOW Validate FACILITY SUPPLIER 7 X 27 =
Slide 16: The New Options For Market Growth
The New Options For Market Growth … “Get me there” “Sell my product” “Build my Brand” KEY REQUIREMENT 3PL Stock Purchase Model Distributor / Agency CRITICAL SUCCESS FACTORS • Quality • Minimal touch points • Reach/universe • Distribution • Efficiency and competency • Seamless flow • Value • Consiste
Slide 17: Challenges And Opportunities
Challenges And Opportunities By 2016, pharma in Africa Regulations reaches US$30 Bn Language and trading blocks Driven by 10% CAGR Cross border US$45 Bn by 2020 Compliance of facilities Potential of adjacent markets Acquiring / retaining talent Market reach – owned or State tenders through trading p
Slide 18: Imperial … Africa's Global Player
Imperial … Africa’s Global Player
Slide 19: IHS … Our Values And Pillars of Excellence
IHS … Our Values And Pillars of Excellence Values Pillars Of Excellence Pride People – Sustainability – Multi-tiered development – Corporate stability – Management stability – Ave 7 years – Independence – Thought leadership – CCF, PLASA, Execution PtD, Rx360, PCMA, PHEF – Flexibility Quality – “Can
Slide 20: IHS Coverage & Services
IHS Coverage & Services Provides end-to-end supply chain solutions including: FCL consolidation ex Europe Inbound Freight Management Warehousing Order Management Secondary Repackaging Kitting Outbound Distribution Customer Services 3PL, Stock Purchasing Model or Distributor Debto
Slide 21: Imperial's Current Footprint
Imperial’s Current Footprint Logistics operations Tunisia Morocco Distributor operations Algeria Libya Western Egypt Sahara IHS warehouse operations Cape Countries serviced by IHS Agents Verde Mauritania Niger Niger Mali Mali Chad Eritrea Senegal The Gambia- Burkina Sudan Sudan Guinea-Bissau- Guinea
Slide 22: IHS Client Base
IHS Client Base Pharmaceutical Companies Medicines, Vaccines, Consumer Healthcare Products THE NDoH GLOBAL SOUTH PEPFAR (USG HIV Program in Africa) FUND AFRICA (MPP Program) PPP – Public Private Partnerships
Slide 23: IHS Southern Africa Region - Centurion
IHS Southern Africa Region - Centurion South Africa - Centurion Warehouse 32,000 m2 22,500 pallet spaces 1,100 cold room locations Transportation Local: own vehicles Export: own & contractors Facility GDP compliant ISO 9001:2008 certified SA’s only bonded facility
Slide 24: IHS SA - Centurion
IHS SA - Centurion SOUTH AFRICA - GAUTENG FACILITIES
Slide 25: IHS Southern Africa Region - Cape Town
IHS Southern Africa Region - Cape Town South Africa – Cape Town Warehouse 7,500 m2 8,092 pallet spaces 504 cold room locations Transportation Local: own vehicles Export: own & contractors Facility GDP compliant ISO 9001:2008 certified Greening/Sustainability initiatives employed
Slide 26: IHS SA - Cape Town
IHS SA - Cape Town SOUTH AFRICA - GAUTENG FACILITIES
Slide 27: IHS East Africa Region - Nairobi
IHS East Africa Region - Nairobi Kenya - Nairobi Current warehouse 7,000m2 6,800 pallet spaces 100 cold room 20 dangerous goods High risk / High value area 2015 new WH 10,000m2 Transportation Local owned Ntl / Export - contractors Facility GDP compliant ISO 9001:2008 certified MIS SAP, CRM, SLE / TI
Slide 28: IHS – Nairobi, Kenya
IHS — Nairobi, Kenya IMPERIAL el BP ascent
Slide 29: IHS West Africa Region
IHS West Africa Region … Ghana - Tema Warehouse 2,300m2 2,550 pallet spaces 40 cold room 20 dangerous goods High risk / High value area Transportation Export Facility GDP compliant ISO 9001:2008 in Q2 12 Bonded Nigeria - Abuja Shared facility 1800m2 1600 pallet spaces Nigeria - Lagos [in planning] M
Slide 30: IHS – Accra, Ghana
IHS – Accra, Ghana GHANA - TEMA FACILITY
Slide 31: IHS Malawi
IHS Malawi … Malawi – Lilongwe Warehouse 2,000m2 1250 pallet spaces High risk / High value area Transportation Domestic 667 sites. Facility GDP compliant MIS – SAP, CRM, SLE/TIMS, MEDiQ
Slide 32: IHS- Malawi, Lilongwe Facility
IHS- Malawi, Lilongwe Facility
Slide 33: Excellence – Service Delivery, Security, Standards
Excellence – Service Delivery, Security, Standards Service levels to be managed proactively - High Level Client Care Trending, root cause analysis and prompt corrective action Client queries managed through the High Level Client Care team are addressed within an hour IHS Service levels over the last
Slide 34: Excellence – Cold Chain
Excellence – Cold Chain Validated to WHO guidelines & PDA technical report 39 Validation methodology published in SA Pharmacy Journal Validation audited and approved by our multi-national clients Controlled processes Pan-SSA Thought leadership EU Consolidation ORTIA re-icing
Slide 35: Excellence – Innovation
Excellence – Innovation Validate EUROPEAN CONSOLIDATION FACILITY SUPPLIER POD MoH Control CROSS DOCK Tower Unjani Clinics Serialisation & Authentication with Trustatag
Slide 36: Excellence – Sustainability
Excellence – Sustainability B-BBEE is a strategic imperative Level 3 contributor with Value Add Supplier Status 137.5% Procurement Spend Recognition Environmental Impact Reduced consumption of electricity by 8.13% in 2013 Cape Town facility uses environmentally responsible and resource-efficient pri
Slide 37: Africa's Leading Healthcare Logistics Partners
Africa’s Leading Healthcare Logistics Partners