Viyash Scientific Limited · NSE:VIYASH

Viyash Scientific — SeQuent Scientific — Investor Day (September 2016)

41 slides from Viyash Scientific's investor day presentation, Sep 22, 2016

1. Slide 1: Proven Ability In Life Sciences - Investor Day

   Proven Ability In Life Sciences 4 ALIVIRA DESIGNED FOR GROWTH BUILT FOR VALUE INVESTOR DAY SEPTEMBER 22, 2016

2. Slide 2: Forward Looking Statement

   Forward Looking Statement Materials & information provided during this presentation may contain ‘forward-looking statements’. These statements are based on current expectations, forecasts & assumptions that are subject to risks & uncertainties which could cause actual outcomes & results to differ ma

3. Slide 3: Management Team Present

   Management Team Present Manish Gupta Ramon Vila Dr. Hüseyin Aydin Prithi S. Kochhar CEO, SeQuent CEO, Karizoo CEO, Provet CEO, Naari Ashish Kakabalia Sharat Narasapur Kannan PR Tushar Mistry VP-Global Formulations, EVP-Operations, SeQuent CFO, SeQuent VP-Finance, SeQuent Alivira 3

4. Slide 4: Agenda

   Agenda Sequent STRATEGIC \. EVOLUTION ANIMAL HEALTH WOMEN ’s HEALTHCARE TAKEAWAYS OOH Ss]

5. Slide 5: Sequent - Designed for Growth, Built for Value

   Sequent DESIGNED FOR GROWTH @ BUILT FOR VALUE . OOH 6

6. Slide 6: Strategic Evolution

   Strategic Evolution Today 2013-2015 Designed for growth Re-strategized from Built for Value Pre- 2013 ‘Growth’ to ‘Value’  India’s first global integrated animal  Established Alivira- Global health Company integrated animal health business  Deepened know-how & capabilities  Refocussed human phar

7. Slide 7: Our levers of Growth

   Our levers of Growth  Focus on hormones for women Formulations healthcare VALUE CREATION  Established global manufacturing base  Specialized facility for both APIs  Robust front end presence with local & Formulations - containment leadership solutions  Deepened know-how for regional customer 

8. Slide 8: Human API business

   Human API business Today Pre- 2013 Strategic Intent  Niche & regulated  Spot business business  Unregulated market  Low margin  Long term contracts & Focus on low volume, mature profit sharing model APIs for Regulated  Stable cash flows Markets Pre-2013 Today 12 12 19 20% 40+ 25+ 44+ 80% COUNT

9. Slide 9: Alivira - Animal health business

   Alivira- Animal health business Today Pre- 2013  India’s 1st global integrated animal Strategic Intent health company with ~$120 mn*  API led growth  ~75% revenues from formulations  Formulations  Established front-end presence in presence- India & key markets - Europe, LATAM, Africa Turkey, Af

10. Slide 10: Naari - Women's Healthcare

    Naari- Women’s Healthcare Strategic Rationale Our Competence  Scale- $8 bn opportunity  Complexity- requires dedicated manufacturing capability  Naari- among the three  Comprehensive capabilities - APIs & companies with formulations integrated capabilities  Complete control on Value Chain - glo

11. Slide 11: Human Health

    Sequent HUMAN HEALTH OOH i]

12. Slide 12: Human API Business

    Human API Business  Focus on mature products with limited/declining competition  Strategic tie-up with companies on profit/revenue-sharing basis for difficult-to-procure APIs  Focus across multiple therapeutic segments Manufacturing Base Research Capabilities Strategic Progression Mangalore, Indi

13. Slide 13: Alivira Animal Health

    ALIVIRA ANIMAL HEALTH as HL a GOR ©

14. Slide 14: Global Animal Health Industry

    Global Animal Health Industry Industry to grow at a CAGR of ~7% 11.7 16.8 2015 18.1 with Production animal segment 30.0 2020 having the larger pie OUR FOCUS AREA Production Animals Companion Animals Global population growth & focus on well being of animals Changing global lifestyle & evolving habits

15. Slide 15: Why Animal Health Industry?

    Why Animal Health Industry? Parameter Characteristics Alivira’s Approach  Designed Alivira as an integrated Industry  Few VET API facilities with limited company with focus on global Dynamics regulatory compliance quality standards & compliance  Acquired local assets with distinct Market  Comple

16. Slide 16: Alivira Business

    Alivira Business 2 20+ 30+ 40+ MANUFACTURING COMMERCIALIZED FACILITIES API & 10 UNDER FILINGS COUNTRIES Formulations DEVELOPMENT  Focus on livestock  Established presence in Europe, LATAM, Turkey, India, Africa & South APIs East Asia 25%  Diversified manufacturing capabilities  Wide range of pro

17. Slide 17: Inorganic Initiatives

    Inorganic Initiatives Acquired Consolidating Deepening Expanding Companies Capabilities knowhow geographies  In-house – Antibiotics &  15 key European markets  Front end presence with Nutritional including Spain, Germany, Manufacturing & R&D base Karizoo  115+ registered products  Dist – All th

18. Slide 18: Strategic Progression

    Strategic Progression Consolidating Deepening Expanding Capabilities knowhow across geographies  Formulations – multi-location  R&D – Established multi-region  Expanded reach to new markets manufacturing across key R&D program leveraging local of Europe, Turkey & Latam geographies capabilities 

19. Slide 19: Alivira Region Wise Strategy

    & ALIVIRA REGION WISE STRATEGY GOR 3

20. Slide 20: Alivira Today - Fast moving market coverage

    Alivira Today- Fast moving market coverage Organic Inorganic Formulations presence in 55+ countries 20

21. Slide 21: Global Manufacturing & R&D base

    Global Manufacturing & R&D base Manufacturing facilities R&D capabilities Dosage Form Spain Turkey Brazil India Dosage Form Spain Turkey India Oral Liquid Oral Liquid Oral Solution Oral Solution Liquid for inhalation Liquid for inhalation Oral Suspension Oral Suspension Water Soluble Powder Water So

22. Slide 22: Global Advisory Board

    Global Advisory Board George Gunn Dr. Ruurd Stolp Ex CEO, Novartis AH Sr. Executive, Ex. Intervet Experience: Experience:  Board Member : Diversigen  Member of Strategic Advisory Board : Elanco  Board of Directors : PHARMAQ  Chairman Beheersadviescommissie Oostvaardersplassen : Ministerie van Ec

23. Slide 23: India

    India Market Statistics Our Presence Today Growth Drivers  Estimated market of $800 mn in  4th year of operation  Leverage Lyka’s strength in 2016 growing ~@10% Cattle:  Portfolio built around innovative in-licensed international products  Expand Operations- Pan- India  Established player in p

24. Slide 24: ROW (Africa, South East Asia & Middle East)

    ROW (Africa, South East Asia & Middle East) Market Statistics Our Presence Today Growth Drivers  Market size ~$3 bn Africa  Establish front end presence in Kenya, South Africa, Indonesia,  Fastest growing human  14 countries including key Vietnam, Thailand, Saudi, Egypt, population, increasing p

25. Slide 25: Europe

    Europe Market Statistics Our Presence Today Growth Drivers  Total EU market ~$8 bn in sales  Present in 4 of the top 10  Establish Alivira front end growing annually @ ~6% countries (ES, NL, BE, SE) presence across all top 10 markets  Top 10 markets accounts 80%  Front end team of 35+  Expand

26. Slide 26: Latin America (LATAM)

    Latin America (LATAM) Market Statistics Our Presence Today Growth Drivers LATAM Brazil  Addition of therapeutic products, nutritional additives  Market size : ~$4 bn  Focus on poultry & swine & supplements  Brazil & Mexico accounts for segments  Cross leverage of group 2/3rd of the market  Por

27. Slide 27: Turkey

    Turkey Market Statistics Our Presence Today Growth Drivers  16th largest veterinary market  Alivira’s first foray into  Enhanced presence in cattle & in the world International market – Provet in sheep segment  $400 mn animal health market, 2014, followed by Topkim in 2015  Strategic tie-up for

28. Slide 28: Women's Health - Naari

    WOMEN'S HEALTH NAARI OOH ©

29. Slide 29: Women's Healthcare

    Women’s Healthcare  Global Hormonal contraceptive & HRT market is over $8 bn  Changing lifestyles leading to new opportunities  Recent consolidations leading to supply security issues Manufacturing Base Capabilities Growth Drivers  Integrated manufacturing  50+ scientists working in  Expanded

30. Slide 30: Key Management

    Key Management Dr. Hermann Osterwald Prof. Dr. Michael Oettel Chairman Director Experience: Experience:  Former Managing Director of NextPharma  Head of Research – Inst. of the Academy of Sciences. GDR, Head of R&D at Jenapharm & Head of the  32+ years in the pharmaceutical industry Scientific Ma

31. Slide 31: Strategic Progression

    Strategic Progression Consolidating Deepening Expanding Capabilities knowhow across geographies  Acquired EU & ANVISA  Initiated DMF filings for 3 new approved hormone molecules  Initiated API business in Japan, US manufacturing formulation & EU  R&D team with proven track facility  Expecting f

32. Slide 32: OOH 2)

    OOH 2)

33. Slide 33: Scaling up capability & compliance

    Scaling up capability & compliance Today  Approvals from leading regulators – Pre- 2013 USFDA, TGA, EUGMP, WHO amongst others Strategic Intent  Established capabilities for  Poor EHS design Flexible, scalable & formulations across multiple dosage compliant  Limited capability & forms & APIs infr

34. Slide 34: Financials

    Sequent FINANCIALS OOH >

35. Slide 35: Finance - Enabler to Growth

    Finance – Enabler to Growth Laying Foundation Risk Management Corporate Governance  Monetizing Non Core Business  Forex Risk Management  Diverse & experienced Board members  Fund raising through Investors  Internal Financial Controls & Promoter  Owner & Management  Robust Management Reporting

36. Slide 36: Strengthened Balance sheet

    Strengthened Balance sheet Gross Block & CWIP (INR mn) Total Debt (INR mn) 4,546 6,974 3,777 5,642 2,898 2,687 4,100 4,027 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Current Ratio (x) Debt to Equity (x) 9.80 1.71 5.00 0.76 0.30 0.67 3.10 0.65 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Investment to acquir

37. Slide 37: Business Performance

    Business Performance Net Sales (INR mn) Net Loss (INR mn) FY13 FY14 FY15 FY16 -222 -107 -647 -492 -1,105 6,345 4,654 4,555 3,269 FY13 FY14 FY15 FY16 EBITDA* (INR mn) Cash from Operations (INR mn) FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 -1 -38 -235 -448 629 -133 79 206 Strong focus on execution leadi

38. Slide 38: Shareholding

    Shareholding Others, 22.7% Promoters, FIIs/FPIs, 57.2% 13.8% DIIs/MFs, 6.2% 38 On fully diluted basis

39. Slide 39: Takeaways

    Sequent TAKEAWAYS OOH 9

40. Slide 40: Takeaways

    Takeaways • Niche human API business with improving Business Compliance & outlook Model Standards • Strict adherence to global standards of • Opportunity to become quality & compliance a leading Global Animal Health business • Setting standards for the veterinary industry • Emerging women healthcare

41. Slide 41: Q&A

    Sequent Q&A

SeQuent Scientific — Investor Day (September 2016) on 6ix