Viyash Scientific Limited · NSE:VIYASH
Viyash Scientific — SeQuent Scientific — Investor Presentation (May 2019)
39 slides from Viyash Scientific's investor presentation, May 2019
Slide 1: Investor Presentation
r>) Sequent rah Proven Ability In Life Sciences es ALIVIRA Investor Presentation More than SeQuent Scientific Limited Pharma www.sequent.in
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: Flash-back 2014 – Rewired for 'Scarcity Value'
Flash-back 2014 – Rewired for ‘Scarcity Value’ Animal Health - Small Distinct industry Changing/tightening niche segment of dynamics, No Indian regulatory global pharma – $ 30 competition environment bn vs $ 1 tn Opportunity to create the first Global, Integrated Animal Health company from India ‘Al
Slide 5: Animal health – Large, Growing and Diverse Sector
Animal health – Large, Growing and Diverse Sector Total Animal Healthcare Market Size All values in $ Bn. CAGR 42 2010-14 2014-19 6.80 30 6.6% 7.2% 10.7 Rest of World 23 4.56 Asia-Pacific 7.8% 8.1% 3.36 7.2 5.3 11.9 Europe 8.0% 8.2% 8.6 6.8 North America 12.6 6.0% 6.7% 7.5 9.3 5.5% 6.3% 2010 2014 20
Slide 6: Advantageously placed in a growing opportunity
Advantageously placed in a growing opportunity 23.4 Industry to grow at a CAGR of ~5% 12.4 with Production animal segment 18.3 2017 2022 having the larger pie 15.6 Focus Area Production Animals Companion Animals Global population growth & focus Increased Productivity on well being Increased demand i
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 Expenses R&D focus on ease of use & drug delivery Complex regulatory requirements leading to Regulatory Barriers disproportionate R&D investments IP Barriers Few products under pat
Slide 8: Journey so-far
Sequent an Proven Ability In Life Sciences wae ALIVIRA Journey so-far More than SeQuent Scientific Limited www.sequent.in Pharma
Slide 9: Seeing the Big Picture at a Distance
Seeing the Big Picture at a Distance Changing Dynamics in Animal SeQuent in pre-2012 days Rewired SeQuent in 2013 The SeQuent today health Industry ▪ Established Alivira - Focus on • Largest Animal health ▪ Spot Business ▪ Standalone positioning in building business around company from India within
Slide 10: A distinctive Business approach
A distinctive Business approach Indian Pharma Unique Animal Health/ Alivira’s Approach Veterinary characteristics Approach ▪ Manufacturing driven strategy taken ▪ Limited scale “in-market” local ▪ Applying cutting-edge resources to global business remain ahead of the curve in a rapidly ▪ India based
Slide 11: A distinctive Business approach
A distinctive Business approach Indian Pharma Unique Animal Health/ Alivira’s Approach Veterinary characteristics Approach ▪ Partner approach ▪ Branded generics market ▪ Established global front end for last ▪ Price position with customers and ▪ Veterinarian connect is critical mile partnership grad
Slide 12: Acquisition-led capability building
Acquisition-led capability building Acquired Entities Provet/Topkim Karizoo Evance N-VET / Fendigo Bremer Markets Turkey Spain Brazil Rest of EU Germany ▪ Presence in Turkey & ▪ Presence in 15 key EU ▪ Presence in Brazil ▪ Presence in 4 key EU ▪ Presence in EU & key EM neighboring markets countries
Slide 13: Fast expanding market coverage
Fast expanding market coverage 100+ countries and growing 9% 2% 13% 8% 56% 12% Europe LATAM Emerging Markets Turkey India North America & ANZ Presence to be established Countries with established presence 13
Slide 14: Formulations footprints - Market-centric
Formulations footprints - Market-centric Barcelona Polatli Ambernath Campinas Warburg Spain Turkey India Brazil Germany Approvals EUGMP EUGMP and India, Uganda, Ethiopia MAPA (Ministry of EUGMP Turkish GMP and Kenya Agriculture) Capabilities Oral powders & Premixes – Beta-lactam and non-beta Granule
Slide 15: API footprints - India arbitrage
API footprints - India arbitrage Vizag Mahad Tarapur India India India Approvals USFDA and EUGMP EUGMP & COFEPRIS Mexico cGMP Capabilities API facility with reactor capacity of 225 KL Comprehensive manufacturing facility with API intermediates facility with reactor with six clean rooms 23 reactors h
Slide 16: Management team - Global
Management team - Global Ashish Kakabalia Sharat Narasapur Tushar Mistry Shrikant Makode Business Development Technical Operations API Chief Financial Officer API and R&D Manish Gupta Managing Director Sirjiwan Singh Ramon Vila Jose Nunes Filho Dr. Huseyn Aydin Technical Operations Europe LATAM Turk
Slide 17: Key Outcomes FY19 - 4th year of operations
Key Outcomes FY19 - 4th year of operations 1 First Global pure-play Animal Health Company from India: API Business Demerger of Human Business completed Compliance and Efficient operations provides competitive advantage Stellar improvement in Annual performance: Expansion in EBITDA ▪ Vizag, the only
Slide 18: API: Edge in Animal Health
sequent CAMs API: Edge in Animal Health Mor e than SeQuent Scientific Limited www.sequent.in Pharma
Slide 19: APIs
APIs 26 3 1.9x 50%+ Scaling the Commercial APIs Manufacturing Asset turn Incremental growth capability curve facilities from global top 10 vs FY16 Revenues in ₹ Mn YoY% Key Highlights FY19 FY18 (cc) Margin expansion through focus on regulated markets and high value products 3,248 2,188 38.3% Deepeni
Slide 20: FY19 - Growth driven by top-5 customers
FY19 - Growth driven by top-5 customers Customer Customer I Growth FY19 vs. FY18 2.0x % Contribution of sales 11% 2.4x Growth with top-5 customers Customer II 2.3x 8% Customer III 2.7x 7% Customer IV Customer V 5.0x 1.9x 5% 5% 54% Contribution of top 10 customers to API sales 20
Slide 21: Formulations: The Value Driver
Formulations: The Value Driver 21
Slide 22: Formulations
Formulations 35+ 80+ 35+ 50%+ Leading revenue Products Under Countries with Launches Sales to regulated driver Development marketing presence markets Revenues in ₹ Mn Key Highlights YoY% FY19 FY18 Robust growth across geographies, driven by 35+ launches and improved market share (cc) across key geog
Slide 23: Footprints across multiple geographies
Footprints across multiple geographies Geography Our Presence Growth Drivers and Focus Areas Europe ▪ Front end team of 35+ with presence in 7 of the top 10 EU ▪ Leverage manufacturing base in Spain and Germany countries (ES, NL, BE, SE, DE, IT, FR) and 15 other EU supported by R&D facility in Barce
Slide 24: Footprints across multiple geographies
Footprints across multiple geographies Geography Our Presence Growth Drivers and Focus Areas LATAM ▪ Brazil- 25+ registered products; GMP manufacturing facility ▪ Addition of therapeutic products across nutritional approved by MAPA, Field force 11+ additives and supplements ▪ Mexico- 37+ registered
Slide 25: 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 Germany Spain Turkey India Brazil APIs Oral Solution Oral Suspension Liquid for inhalation Water Soluble Powder Drug Premix Nutritional Feed Add. Tablets Pre Filled Syringes
Slide 26: Research & Development
>) Sequent fae Proven Ability In Life Sciences Lo) ALIVIRA Research & Development More than SeQuent Scientific Limited Pharma www.sequent.in
Slide 27: R&D to drive value creation in FDF business
R&D to drive value creation in FDF business 60% ~1/2 1/3rd 35+ First Generics of our products of our portfolio formulations Niche leverage our made up of under Innovation API-Integrated Injectables development Patent expiry Approach 27
Slide 28: R&D Pipeline
R&D Pipeline Product Categories Species Dosage form 4% 7% 9% 9% 18% 40% 18% 18% 47% 76% 29% 27% Global Generics Niche/Limited Competition PA Injectable Pat Expiry opp. CA Powder/Premix First Generic Liquid Both Solid Incremental Innovation Portfolio of 35+ products under development, market opportun
Slide 29: Scaling value curve
Scaling value curve US filed / EU-CEP Pipeline approved approvals API 5 US and 3 CEP filings during the year 14 17 10 Expanded R&D team in India, adept to Pipe Line of 35+ products execute 10+ projects per annum 20+ new filings in US in next 3 years with a market size of US$ 500Mn+ Formulations Deve
Slide 30: Financials
Sequent Proven Ability In Life Sciences More than Pharma Financials ALIVIRA SeQuent Scientific Limited www.sequent.in
Slide 31: Momentous Year
Momentous Year “ This has been a year of strong performance wherein our Revenue and EBITDA grew by 22% and 52% respectively, with a 250 bps margin improvement and a 5.6x growth in PAT. The all-round growth was fueled by execution excellence across both APIs and formulations. We have significantly sc
Slide 32: Results at a glance
Results at a glance All values in ₹ Mn Revenues YoY Revenues YoY 22% 21% FY19 10,393 4Q19 2,819 FY18 8,495 4Q18 2,328 EBITDA YoY EBITDA YoY Q4 FY2019 FY2019 FY19 1,327 52% 4Q19 402 31% FY18 871 4Q18 308 PAT YoY PAT YoY FY19 570 5.6x 4Q19 214 2.5x FY18 102 4Q18 84 Board recommends a dividend of ₹0.2
Slide 33: Strong performance across businesses
Strong performance across businesses YoY% Key Highlights Revenue Distribution FY19 FY18 YoY% (Constant currency) Formulations 7,145 6,307 13.3% 13.8% For FY19: Overall business growth of 22.4% Europe 3,664 3,168 15.7% 7.8% ▪ API business grew 48.5% on the back of increasing Turkey 962 1,160 (17.1%)
Slide 34: Delivering consistent outcome
Delivering consistent outcome All values in ₹ Mn Revenue Revenue 2,819 2,517 2,705 2,352 2,090 2,249 2,328 1,943 1,975 2,003 1,700 1,097 10,393 8,495 6,890 Q1 Q2 Q3 Q4 FY17 FY18 FY19 EBITDA EBITDA 12.7% 13.1% 12.8% 14.3% 10.6% 10.0% 13.2% 9.6% 9.5% 10.3% 1327 11.2% 7.6% 8.4% 6.2% 5.2% 355 402 250 32
Slide 35: Consolidated Financials
Consolidated Financials All values in ₹ Mn Q4’19 Q4'19 Q3'19 Q4’18 FY19 FY19 FY18 PARTICULARS Audited Audited Unaudited Unaudited Audited Audited Audited Revenue from Operations 2,819 2,827 2,705 2,328 10,393 10,401 8,494 Material Consumption (1,442) (1,467) (1,413) (1,235) (5,430) (5,455) (4,625) G
Slide 36: Key Balance Sheet items
Key Balance Sheet items All values in ₹ Mn ROCE Net debt to EBITDA Particulars Mar-19 Mar-18 15.1% 3.75 11.8% 2.81 Shareholders' funds 7,067 6,476 7.8% 1.84 1.52 2.9% Minority Interest 403 370 FY17 FY18 FY19 FY19 Q4* FY17 FY18 FY19 FY19 Q4* Net Borrowings 2,452 2,451 *Quarter Annualised Investments
Slide 37: FY19 snapshot & FY20 Outlook
>) Sequent rah Proven Ability In Life Sciences Lo) ALIVIRA FY19 snapshot & FY20 Outlook More than SeQuent Scientific Limited Pharma www.sequent.in
Slide 38: Creating value for all stake-holders
Creating value for all stake-holders Delivered on Expectations in FY19 FY20 Outlook FY20 Outlook Maintain Top line growth What we planned? What we delivered? momentum ▪ High-teen ▪ Revenue up 22% Margin expansion of revenue growth 200bps ▪ EBITDA expansion ▪ 200+ bps margin 250 bps YoY expansion 38
Slide 39: Thank You
Sequent Proven Ability In Life Sciences ALIVIRA Thank You SeQuent Scientific Limited CIN: L99999MH1985PLC036685 Registered Office: 301, 3rd Floor, Dosti Pinnacle, Plot No. E7, Road No. 22,Wagle Industrial Estate, Thane (W) - 400 604, Maharashtra Tel No: +91 22 4111 4777 | Website: www.sequent.in | E
SeQuent Scientific — Investor Presentation (May 2019) on 6ix