Viyash Scientific Limited · NSE:VIYASH
Viyash Scientific — SeQuent Scientific — Investor Presentation (June 2018)
34 slides from Viyash Scientific's investor presentation, June 2018
Slide 1: Investor Presentation | June 2018
Investor Presentation | June 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 integrat
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 • Applying cutting-edge • Manufacturing driven • Limited scale “in-market” resources to remain ahead strategy taken global local business of the cu
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 CAGR Total Animal Health Market Size 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 Additives Vac
Slide 11: Fast expanding market coverage
Fast expanding market coverage 9% 2% 13% 8% 56% 12% Europe LATAM Emerging Markets Turkey 95+ countries and progressing India North America & ANZ 11
Slide 12: Key Acquisitions
Key Acquisitions Acquired Provet/Topkim Karizoo Evance N-VET / Fendigo Bremer Entities Turkey Spain Brazil Rest of EU Germany & Markets ▪ Presence in Turkey & ▪ Presence in key EU ▪ Presence in Brazil ▪ Presence in 4 key EU ▪ Presence in key EU neighboring markets countries & Mexico ▪ Manufacturing
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 Business Europe Business LATAM Business Turkey 13
Slide 14: Formulations – Skill & Scale
~ ALIVIRA et ee 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 ▪ Front end team of 35+ with presence in 6 of ▪ Establish Alivira front end presence across all top the top 10 EU countries (ES, NL, BE, SE, DE, GR) 10 markets and 15 other EU markets through distributors ▪ Expand distri
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 Germany Dosage Form Spain Turkey India APIs APIs Oral Solution Oral Solution Liquid for inhalation Liquid for inhalation Oral Suspension Oral Suspension Water Soluble Powder
Slide 19: R&D Pipeline
R&D Pipeline Injectables 12% Production Solids 40% 46% 18% Animal 60% Liquids Companion Animal 24% Powders / 24% 28% Premixes Nutritional Antibiotic Species Dosage form Therapy Other 12% Therapies Area NSAID Anticoccidial 18% 12% Day 1 opp. 18% 30% First generic Spain 35% 46% India 65% 12% Increment
Slide 20: API Edge In Animal Health
~~ ALIVIRA SOn< API Edge of ge gy In Animal F
Slide 21: Comprehensive API Business
Comprehensive API Business Our dedicated USFDA approved facility at Vizag – 1st in India Anthelmentic Business 43% • Offers 23 products globally • Long standing relationships with global Top 10 animal Antiemetic 3% health companies Ecto-Parasiticides 3% Beta Agonist 3% 3% 20% Antibiotic 5% Antiproto
Slide 22: 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 23: 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 24: Financials
Financials
Slide 25: Q4FY18 Update
Q4FY18 Update • First commercial supplies from Vizag for US markets • Revenue at Rs. 2,328 mn as against Rs. 2,003 mn in Q4FY17, up by 16.2% • EBITDA at Rs. 308 mn, as against Rs. 224 mn, up by 37.6% • EBITDA margin at 13.2% in Q4FY18, up 206 bps EBITDA (INR mn) EBITDA Margin (%) Revenue (INR mn) 23
Slide 26: FY18 Update
FY18 Update • Revenue at Rs. 8,494 mn as against Rs. 6,890 mn in FY17, up by 23.3% • EBITDA at Rs. 871 mn, as against Rs. 578 mn, in the previous year up by 50.6% • EBITDA margin at 10.3 % in FY18, up 190 bps • Operating leverage driven by successful integration across acquisitions • Completed 11 US
Slide 27: Relentless focus on execution
Relentless focus on execution All values in Rs mn Revenue Revenue 1942 1700 1975 2090 2249 2003 2328 8494 1098 6890 Q1 Q2 Q3 Q4 FY17 FY18 FY17 FY18 EBITDA EBITDA 140 bps 440 bps 50 bps 206 bps 190 bps 13.2% 10.3% 10.0% 11.2% 9.6% 9.5% 8.4% 7.6% 6.2% 5.2% 308 871 190 198 226 224 578 147 68 88 Q1 Q2 Q
Slide 28: Revenue Distribution
Revenue Distribution All values in Rs Mn Geography-wise Sales Q4FY18 Q4FY17 Growth % FY18 FY17 Growth % APIs 578 569 1.6% 2,188 1,965 11.3% Formulations 1,750 1,434 20.4% 6,307 4,925 27.6% Europe 817 626 30.4% 3,168 2,208 43.4% Turkey 401 282 42.1% 1,160 980 18.4% Emerging Markets 315 353 -10.6% 1,1
Slide 29: Consolidated Income Statement
Consolidated Income Statement All values in Rs Mn Q4FY18 Q3FY18 Q4FY17 FY18 FY17 PARTICULARS Audited Unaudited Audited Audited Audited Revenue from Operations 2,328 2,249 2,003 8,494 6,890 Material Consumption (1,235) (1,201) (1,038) (4,625) (3,567) Gross Margin 1,093 1,048 966 3,870 3,323 % 46.9% 4
Slide 30: Key Balance Sheet items
Key Balance Sheet items All values in Rs Mn Particulars 31-Mar-18 ROCE Shareholders’ funds 6,476 Minority Interest 370 13.4% Borrowings 3,046 8.3% Cash 598 Investments 2,217 Tangible Assets 2,269 Intangible Assets 2,671 FY17 FY18 Working Capital 2,483 ROCE based on annualised 4th quarter Net debt to
Slide 31: Road Ahead
Road Ahead
Slide 32: Future Strategy
Future Strategy New Markets New Segments New Capabilities Establish • Expand presence in Top • Commercialization of • Expand EU Alivira as a top 10 EU markets Formulations R&D manufacturing 10 global pipeline across EU capability- • Enter new Emerging • spot on animal health markets across MENA, • E
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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