Viyash Scientific Limited · NSE:VIYASH
Viyash Scientific — SeQuent Scientific — Shareholder Meeting (September 2014)
20 slides from Viyash Scientific's shareholder meeting presentation, Sep 29, 2014
Slide 1: Warm Welcome to Shareholders
Warm Welcome to Shareholders 29th Annual General Meeting September 29, 2014
Slide 2: 2013-14 - The Year of transformation
2013-14 - The Year of transformation At the end of 2012, new strategy for Sequent evolved : • Focus shifting from ‘Growth’ to ‘Value’ • New vision – ‘To become a power-house in the Global Animal Health business with a portfolio of niche human APIs’ Key Action Items towards new strategy 1. Create a v
Slide 3: Animal Health – Valuable Platform
Animal Health – Valuable Platform • Animal health business moved to a separate subsidiary • The subsidiary was launched as a new brand - Alivira - Elvira, Latin word for ‘white, pure, clean’ and Alleviare, Latin word for ‘relief’. • It speaks about our commitment to improve animal’s life and well-be
Slide 4: Animal Health – Valuable Platform
Animal Health – Valuable Platform • Several Key actions are already implemented towards realising the vision • Strategic JV with Shasun • PE investment from Ascent Capital - Growth capital to fund overseas acquisitions • Closure of Dombivli facility (inadequate compliance facility) JV with Shasun to
Slide 5: Human API - Accelerated Growth
Human API - Accelerated Growth • Investments made to enhance capacities and achieve critical size • Emphasis on sticky, predictable, regulated market business • 6 new filings and 6 new approvals in the regulated markets • Cleared 5 new customer audits • Superior price realization
Slide 6: Divestment/Exit of Non Core Assets/Projects
Divestment/Exit of Non Core Assets/Projects Sales of Specialty Chemicals business • Specialty chemicals business (Rs. 470 mn revenues) was identified as non – strategic asset • Successfully completed the sale of the Division to Songwon Group for a consideration of Rs. 1,200 Mn (2.6 x revenues) Exit
Slide 7: Divestment/Exit of Non Core Assets/Projects
Divestment/Exit of Non Core Assets/Projects Closure of Penem project • Penem’s project was envisaged as an attractive business opportunity in the niche area of penems at an investment of @ Rs. 1,600 Mn • Supported by assured base business with a customer • Continued delays in environmental clearance
Slide 8: Accelerate R&D
Accelerate R&D No of Validations planned No of Validations Completed Human API 9 6 Vet API 3 1 Total 12 7 Validation batches at Mangalore delayed due to constraint in availability of pilot line This has since been addressed by having a dedicated R&D line in Mangalore
Slide 9: Business Snapshot
Business Snapshot Consolidated Revenues Rs. Mn 5,000 4,555 4,500 4,000 3,458 3,500 3,269 3,119 3,000 2,844 2,500 2,000 1,500 1,000 500 - 2009-10 2010-11 2011-12 2012-13 2013-14 Consolidated Revenues during 2013-14 grew by 39%
Slide 10: Performance Snapshot
Performance Snapshot Rs. Mn S PERFORMANCE INDICATORS 2012-13 2013-14 T A Revenue 3,141 4,452 N D Adjusted EBITDA 227 307 A % 7.2% 6.9% L O Exceptional Items (318) (854) N E PBT (628) (1,139) PAT (545) (1,144) Standalone Figures includes Discontinuing Operations – Speciality Chemicals and Vet Formula
Slide 11: Exceptional Items
Exceptional Items Rs. Mn 2012-13 2013-14 Exit of Penems Project 482 Exit of Africa/Vietnam Projects 40 159 Inorganic Acquisition related costs 3 64 Old Inventory/Advances written off/provided 120 30 Obsolete Fixed /Intangible Assets written off 26 32 Managerial Remuneration of Previous Year expensed
Slide 12: Performance Snapshot [consolidated]
Performance Snapshot [consolidated] Rs. Mn Adjusted EBITDA Rs. Mn Revenues 600 549 5,000 4,555 476 500 439 4,000 3,458 388 3,119 3,269 400 2,844 3,000 300 2,000 200 114 1,000 100 - - 2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2013-14 Rs. Mn Post tax profit Earnings per s
Slide 13: Performance Snapshot [consolidated]
Performance Snapshot [consolidated] Debt equity ratio Net worth Rs. Mn 1,400 1,239 1,280 2.50 1,149 2.10 2.06 1,200 996 2.00 1,000 1.52 1.53 1.50 1.28 800 613 600 1.00 400 0.50 200 - - 2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2013-14 Promoter Loans considered as Quasi
Slide 14: Fund Raising
Fund Raising PREFERENTIAL ALLOTTMENT TO PROMOTERS Price/Share Rs. Mn 3,700,000 equity shares of Rs. 10/- each 135.25 500.4 2,000,000 equity shares of Rs. 10/- each 222.15 444.3 3,000,000 equity shares of Rs. 10/- each 236.00 708.0 TOTAL 1,652.7
Slide 15: Stock Price Movement
Stock Price Movement Rs. Stock Price Movement Market Capitalisation Rs. Mn 400 12,000 372 350 10,169 10,000 300 8,000 250 200 190 6,000 5,194 150 130 4,000 3,125 100 82 69 1,799 2,000 1,514 50 - - Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Mar 31, 2014 Áug 31, 2014 Mar 31, 2011 Mar 31, 2012 Mar 31, 2013
Slide 16: Post Balance Sheet Events
Post Balance Sheet Events • Divestment of Specialty Chemicals Division to Songwon Group • Divestment completed on Aug 1, 2014 for a consideration of Rs. 1,200 Mn • Acquisition of Manufacturing Facility of Arvee Synthesis Private Ltd at Mysore • SeQuent acquired this facility on a 16 acre site near N
Slide 17: Key Initiatives 2014-15 – Animal Health
Key Initiatives 2014-15 – Animal Health • Commercialization of Vizag facility including successful customer, manufacturing & supply chain transition • Expand formulation export footprint from predominantly Africa to include LATAM, SE Asia • Strengthen the export formulation team with specific market
Slide 18: Key Initiatives 2014-15 – Human API
Key Initiatives 2014-15 – Human API • Significant capacity expansions at Mangalore, Mysore and Mahad through debottlenecking to cater to strong offtake visibility in key APIs • Commercialise licensing agreement with Gilead • Complete expansion at Mangalore including dedicated pilot line for R&D • Ac
Slide 19: Agenda for the AGM
Agenda for the AGM 1. Adoption of Financial Statements 2. Re-appointment of Dr. Gautam Kumar Das 3. Re-appointment of Statutory Auditors – M/s Deloitte Haskins and Sells 1. Appointment of Dr. Gopakumar Nair as an Independent Director 2. Remuneration to the Cost Auditor for the year 2014-15 3. Revisi
Slide 20: Thank Q
Thank Q
SeQuent Scientific — Shareholder Meeting (September 2014) on 6ix