Viyash Scientific Limited · NSE:VIYASH
Viyash Scientific — SeQuent Scientific — Investor Presentation (January 2018)
34 slides from Viyash Scientific's investor presentation, January 2018
Slide 1: Investor Presentation | January 2018
Investor Presentation | January 2018
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: Evolution to a robust SeQuent
Evolution to a robust SeQuent Pre-2013 2013-16 2016-17 Today & Beyond Designed for growth Low margin Re-strategized from Sharpened Focus Built for Value business ‘Growth’ to ‘Value’ • Creating disruptive value • Formed by amalgamation of • Established Alivira- Global • De-merging Human API integrate
Slide 5: Differential market attributes, Alivira's distinctive approach
Differential market attributes, Alivira’s distinctive approach Unique Animal Indian Pharma Health/Veterinary Alivira’s Approach Approach characteristics • Limited scale in-market • Applying cutting-edge local business resources to remain ahead • Manufacturing driven of the curve in a rapidly strateg
Slide 6: Differential market attributes, Alivira's distinctive approach
Differential market attributes, Alivira’s distinctive approach Unique Animal Indian Pharma Health/Veterinary Alivira’s Approach Approach characteristics • Partner approach • Branded generics market • Established global front end for last mile • Price position with • Veterinarian connect is partnersh
Slide 7: 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 for ease of use & drug delivery R&D Expenses Complex regulatory requirements leading to disproportionate R&D Regulatory Barriers returns Few products under patent protection IP Bar
Slide 8: Alivira- India's largest animal Health Company
Alivira- India’s largest animal Health Company Formulations APIs • Focus on global livestock market with 95+ • Wide range of products, predominantly in an organic-inorganic led strategy to Countries Anthelmintics & emerging NSAID portfolio accelerate expansion • Established relationship with top 10
Slide 9: Advantageously placed in a growing opportunity
Advantageously placed in a growing opportunity 11.7 Industry to grow at a CAGR of ~7% 16.8 25.1 2014 18.1 with Production animal segment 2019 having the larger pie Focus Area Production Animals Companion Animals Global population growth & focus Increased Productivity on well being Increased demand i
Slide 10: Animal health – Large Growing and Diverse Sector
Animal health – Large Growing and Diverse Sector Total Animal Health Market Size (US$bn) CAGR 6.8 2010-14 2014-19 10.7 4.6 6.6% 7.2% 3.4 7.2 11.9 7.8% 8.1% 5.3 8.6 6.8 8.0% 8.2% 9.3 12.6 7.5 6.0% 6.7% 2010 2014 2019 5.5% 6.3% Europe Asia-Pacific Rest of World Animal Health Pharmaceuticals Feed Addit
Slide 11: Fast expanding market coverage
Fast expanding market coverage 14% 20% 52% 15% Europe LATAM Emerging Markets Turkey 95+ countries and progressing 11
Slide 12: Strategic Market Entry
Strategic Market Entry Acquired Provet/Topkim Karizoo Evance N-VET / Fendigo Lyka Animal Entities Turkey Spain Brazil Rest of EU Health & Markets India ▪ Presence in Turkey & ▪ Presence in key EU countries ▪ Front end presence in ▪ Front end presence in 4 ▪ Front end presence neighboring markets & M
Slide 13: Strong Management team
Strong Management team Manish Gupta Sharat Narasapur Tushar Mistry Shrikant Makode CEO Global Manufacturing strategy Global Finance Global API Head Ramon Vila Jose Nunes Filho Dr. Huseyn Aydin Dr. Sumit Saxena Business Europe Business LATAM Business Turkey Business Emerging Markets 13
Slide 14: Formulations – Skill & Scale
~ ALIVIRA et eens enn al! Formulations = Skill, NS
Slide 15: A steady foundation for global expansion
A steady foundation for global expansion • Europe, LATAM, Turkey, India, • Comprehensive portfolio Africa and SE Asia covering feed, nutritional and • Recent foray into France & Geographic Product Portfolio therapeutic classes Ukraine Presence • Addresses multitude of species across therapy classes
Slide 16: Across Multiple Geographies
Across Multiple Geographies Geography Our Presence Growth Drivers & Focus Areas ▪ Establish Alivira front end presence across all top ▪ Front end team of 35+ with presence in 4 of 10 markets the top 10 EU countries (ES, NL, BE, SE) and 15 other EU markets through ▪ Expand distribution reach across a
Slide 17: Across Multiple Geographies
Across Multiple Geographies Geography Our Presence Growth Drivers & Focus Areas ▪ Brazil- 25+ registered products; GMP ▪ Addition of therapeutic products, nutritional manufacturing facility approved by MAPA, additives & supplements LATAM Field force 11+ ▪ Cross leverage of group portfolio ▪ Mexico-
Slide 18: 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 Dosage Form Spain Turkey India APIs APIs Oral Solution Oral Solution Liquid for inhalation Liquid for inhalation Oral Suspension Oral Suspension Water Soluble Powder Water S
Slide 19: API Edge In Animal Health
~~ ALIVIRA SOn< API Edge of gg In Animal F
Slide 20: Comprehensive API Business
Comprehensive API Business Our dedicated USFDA approved facility at Vizag – 1st in the world Anthelmentic Business 43% • Offers a 23 products globally • Long standing relationships with global Top 10 animal Antiemetic health companies 3% Ecto-Parasiticides 3% Beta Agonist 3% 3% 20% Key Products Anti
Slide 21: 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 • 224.6kl reactor capacity with six clean rooms and multi product capabilities • 45 acre land area with significantly enhanced capacities & room for further growth
Slide 22: Relationship with Top 10 Global Animal Health Players – An Edge
Relationship with Top 10 Global Animal Health Players – An Edge Top 10 Animal Health Under Discussion Under Qualification Commercialized Companies 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 23: Future Strategy
~~ ALIVIRA t PASS ese a ure Strategy
Slide 24: Future Strategy
Future Strategy New Markets New Segments New Capabilities • Expand presence in Top • Commercialization of • Expand EU Establish 10 EU markets Formulations R&D manufacturing Alivira as a top pipeline across EU capability- 10 global • Enter new Emerging • spot on markets across MENA, animal health • E
Slide 25: Human APIs
Human APIs
Slide 26: Human APIs
Human APIs Strategic Focus Pre- 2013 2016-17 Moving Ahead • Niche & regulated • De-merging Human API • Spot business business business of SeQuent into • Unregulated a new listed entity market • Long term contracts & profit sharing • New entity to have select Focus on low API business of Strides • Lo
Slide 27: Evolution to a compelling B2B business
Evolution to a compelling B2B business Demerged the commodity API business of Demerged Human API business from SeQuent Strides Shasun while retaining the captive APIs to operate as Pure Play animal healthcare for the formulations operations company Expansion across the regulated markets with Organic
Slide 28: Solara Active Pharma Sciences
Solara Active Pharma Sciences Capabilities Infrastructure Orientation Research Compliance Complex chemistry 5 Globally compliant Consciously favouring Pipeline of 30+ Commitment to highest capabilities including API facilities with all value over volumes products under levels of compliance, handling
Slide 29: Financials
Financials
Slide 30: Q2 Update
Q2 Update Net Profit (INR mn) Net Sales (INR mn) EBITDA (INR mn) 12.8% 88 7.8% 2605 316 1687 131 121 H1FY17 2652 357 2295 189 -43 H1FY18 -43 H1FY17 H1FY18 H1FY17 -76 H1FY18 H1FY17 Q2 Q1 Q2 Q1 Q2 Q1 Formulations API Human Health ▪ Significant YoY growth ▪ VET business grew by 9% ▪ Europe- 10% YoY Key
Slide 31: Business Performance
Business Performance Net Sales (INR mn) Net Loss (INR mn) FY15 FY16 FY17 11 9,151 6,214 4,654 -180 -667 FY15 FY16 FY17 EBITDA* (INR mn) Cash from Operations (INR mn) FY15 FY16 FY17 FY15 FY16 FY17 21 -14 -264 881 305 552 Strong focus on execution leading to profitable operations 31 * FY16-17 & FY15-1
Slide 32: Strengthened Balance sheet
Strengthened Balance sheet Gross Block & CWIP (INR mn) Total Debt (INR mn) 4,302 5,979 3,672 2,870 5,642 5,374 FY15 FY16 FY17 FY15 FY16 FY17 Current Ratio (x) Debt to Equity (x) 5.2 1.8 1.7 1.3 0.3 0.4 FY15 FY16 FY17 FY15 FY16 FY17 Investment to acquire growth assets, key ratios improved 32 * FY16-1
Slide 33: Takeaway- Aiming to become a Top 10 Animal Health Company by FY22
Takeaway- Aiming to become a Top 10 Animal Health Company by FY22 Business Model Compliance and Standards • Capabilities and Scale with an • Strict adherence to global established business model standards of quality & • Plans to enter new geographies compliance and expand product offerings • Setting
Slide 34: SeQuent – Proven Ability In Life Sciences
Seouent—___ Proven Ability In Life Sciences A BMA SS A Ue IT x4) va {y ar « cebeaegentl jane (W) ~ 6 c PAC uh aia A eR Tel No: +9122.4111 4777 | Fox No: +9122 41114754 Website: www.sequent.in | E-mail id: info@sequent.in {
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