August 2020
33 year history
1987 | 2000 | 2010 | 2014 | 2015 | 2018 |
Founded by | Entered in | Intensification | ||
of actions | ||||
Norival | ||||
foot-and-mouth | ||||
abroad | ||||
Bonamichi and | ||||
disease | ||||
focusing on | ||||
Jardel Massari. | ||||
vaccine | ||||
Mexico and | ||||
market. | ||||
Colombia | ||||
Entered into | IPO | Inauguration of |
biological plant | ||
the pet market. | At the highest | |
and launch of | ||
level of | ||
the vaccine of | ||
governance | ||
circovirus. | ||
2
Animal Health Global Market
9.6
2018 (US$ bi)
3o
5.4
1.6
1.4 1.1
0.4 0.3
Source: company information
3
Animal Health in Brazil
Market of
6 billion
reais (2018)
CAGR (13-18)
9 %
77% | 53% | |
Production | ||
21% | CAGR (13-18) | |
CAGR (13-18) | 8 % | |
16 % |
13%
2%11%
Others
Source: Sindan
4
Animal Health in México
Market of
437million
dollars (2018)
CAGR (13-18)
15 %
78% | 40% | |
Produção | ||
22% | CAGR (13-18) | |
CAGR (13-18) | 12 % | |
22 % |
26%
12%
Source: Kleffmann
5
Animal Health in Colombia
Market of
251million
dollars (2018)
CAGR (15 -18)
8 %
86%
14% | Produção | 62% |
CAGR (15 -18) | ||
CAGR (15 -18) | 8 % | |
7 % |
15%
9%
Source:Aprovet e GMI (Global Marketing Information)
6
Highlights
Latin America is responsible for 17% of total meat production in the world. Brazil answers for 9%.
Markets still incipient in the use of animal health products
Growing need to improve animal productivity as a key driver of demand for animal health products
Source: company information, FAOstat
7
Growth Drivers
Production Animals
Population and income growth drive demand for meat and dairy
Lower availability of land puts pressure to increase productivity
Gap
Animal age at | Carcass |
slaughter (months) | weight (kg) |
18 | 371 |
+1.5x | |
36 | 249 |
Source: company information, FAOstat, ABIEC, IBGE
8
Growth Drivers
Companion Animals
Humanization and growth in | Gap | ||||
pet spends | Health Expenditures | ||||
Pet population | |||||
Total pet market | and veterinary | ||||
(million) | (US$ Bi) | in the pet market (%) | |||
Aging and growth of income | |||||
driving demand for pets | 184 | 73 | 22,1% | ||
78 | 5 | 17,7% |
Source: Abinpet, Euromonitor,
9
Our portfolio
Products per Category
Vaccines
Antiparasitics
Antibiotics
Therapeutic
Nutritional
Others
-
of net revenues
9.8%
38.1%
17.6%
21.3%
2.5%
10.7%
4-
203
175
1411
45
111
Ourofino currently exports to 15 countries throughout the world
- of net revenues (2019)
- of products from current portfolio
75%14%
7025
11%
58
Source: company information
10
Our portfolio
Products per Category
Vaccines | Antiparasitics | Antibiotics | Therapeutic | Nutritional | Others |
Products
Ourovac Aftosa | Fluatac DUO | Ciprolac | Sincrocio | Enragold | Herbalvet T.A. |
Safesui | Master LP | Celesperin | Dermotrat | Ractosuin | Maxicam Gel |
Source: company information
11
Products
Evol
Broad-spectrum endectocide for cattle; its formulation is based on ivermectin and albendazole sulfoxide
12
Products
Regepil
Treatment and healing of general, chronic and localized wounds
13
Products
Resolutor
Antibiotic prescribed for the quick treatment of respiratory diseases in animals
14
Products
Fluatac DUO
Complete solution against internal and external parasites in a single application.
15
Leading Position and Proven Ability to Gain Market Share
Ourofino plays a key role in the animal health market, being the largest local player.
brasileiro
Brazilian Animal Health Ranking
1 18%
2 | |
3 | 9% 3o |
4 | |
5 | |
6 |
Source: SINDAN
1 Based on revenues as of full year of 2018
16
Productivity solutions targeting the Brazilian climate and herd
Taurus herd | Zebu herd |
Typical of colder climates | Tropical weather. |
Confinement: intensive livestock | Open pasture: extensive livestock |
Prevalence of respiratory diseases | Prevalence of parasitic diseases |
Production Animals
Sales and clients breakdown inside Brazil (2019)
Sales breakdown Clients breakdown
Total clients:
4,298
Client breakdown
(% of 2019 net revenues)
3.4%
7.1%
14.7%
19.5% 55.3%
Resellers | Rural Producers | |
Cooperatives | Agroindustry | |
Others |
Source: Company information
7.8% | 15.7% |
9.4%
6.8%
17.3% | |||
Client concentration | |||
(% of 2019 net revenues) | 12.7% | ||
36.9% | |||
22.4% | 43.5% | ||
15.3% | |||
10.9% | |||
29.6% | |||
20.3% | |||
Top | Top | Top | North |
Northeast | |||
10 | 5 | 3 | |
Southeast
Mid-west
South
18
Production animals
Differentiated distribution model
Competitors
Distributors
Resellers
Diversified client base and broad distribution network
Resellers
Companion animals
Sales and client breakdown in Brazil (2019)
14.0%
Total
distributors:
41
5,0
30,0
25,0
Current | Potential | Expected stores |
increase | coverage |
- of Pet stores covered ('000 stores) (As of Dec 2019)
Source: Company information
Sales breakdown
Clients breakdown
26.0%
3.2%
12.4%
9.0%
9.0%
63.3%
37.0%
12.0%
14.0%
North
Northeast
Southeast
Mid-west
South
20
High Entry Barriers
Entry Barriers in the Sector | Ourofino's Main Strengths |
Products
- Complete portfolio of products
- Products customized for Brazil
Distribution / Sales
- Nationwide and efficient distribution network
- Well trained sales force with a solid network of
clients
Brand
- Track record
- Customer loyalty
Approximately 100 products Flexibility to produce different types of formulas, dosages and application methods
Presence in all Brazilian states
More than 4,500 clients across Brazil
and internationally
32 year track record
Fonte: informações internas
21
Entry Barriers
Entry barriers in the sector
Regulatory Framework for Manufacturing
Process
Guidance for the inspection of veterinary products and
manufacturers' facilities
Product Registration
Need operating plant to apply for a new registration
4 years, on average, to have a new product registered
Fonte: informações internas
Ourofino's main strengths
State of the art industrial facilities
Plants that meet Brazilian authorities' regulatory
requirements and are also fully compliant with international
standards
Know-how in product development
Fully operational plant
36 products launched in the last 5 years
22
State-of-the-art production facilities
The largest production facility of animal health products in Brazil
8
7 | 5 |
6
4
3
2
1
Highway Anhanguera, 298km Cravinhos (SP)
1 | Headquarters | 4 | Warehouse / shipping facilitiy | 7 | Foot-and-mouth vaccine production facilities |
2 | Laboratory for quality control and R&D | 5 | Animal defensives production facility | 8 | Biological QC and general vaccines production facility |
3 | Pharmaceuticals production facilitiy | 6 | Hormones production facilities |
23
State-of-the-art production facilities
One of the | Designed to be able to | Advanced |
most modern | comply with top | IT system |
plants in the | international | (SAP) |
veterinary | standards for quality | implement |
segment | certification: US FDA, | ed |
GMP and EMEA |
24
Beginning of operations in the biological plant
February 2019 - First sales of the new vaccine
25
Expertise in product development with best-in-class R&D practices
R$ 110 mm of R&D investments in the last 3 years, an average of 6.5% of net revenues invested every year
Ourofino has its own internal research center to lead clinical studies and field experiments established in our farm
Open innovation model: transformation of ideas into products and having strong relationships with innovation powerhouses
R&D team with more than a 100 highly capacitated employees
R&D and Marketing teams mapping the trends in the animal health industry
26
Expertise in product development with best-in-class R&D practices
Focus in education profile in order to get maximum R&D results
Education profile of the R&D team
Fonte: informações internas
7% 6%
18%
20%
47%
PhD
Master's degree
Bachelor's degree
Technical specialization College education and others
27
Open innovation and strategic portfolio management
Evaluation between internal and external options to enable the desired solution
Business | Problem | Prototype | Viable | ||||||
opportunity | definition | validation | solution | ||||||
Goal
Fonte: informações internas
Outside in
inside out
Ecosystem
Needs assessment and possible solutions
Research, design and
development
*Capture and prioritize
Prioritization that takes into account value creation potential
Prototypes production | Application and |
Dissemination |
Scale production and marketing
Execute quickly | Commercialize | Track results | |
and grow | |||
Prototyping and | Market introduction | Return | |
testing | of the prototype | Measurement | |
Market solution | |||
scale and | |||
monetization |
28
Expertise in product development coupled with relationships drive
Dedicated farm for product experiments and for training on artificial insemination protocol
29
Launches in 2020
30
2019: Strategic Planning
Ourofino as a company with a wide portfolio, multispecies and a incremental innovation strategy
International expansion
Go-To-Market
Operational
Efficiency
Ourofino
2.0
Governance and
Organization
Research,
Development,
Innovation
Transactions
and new business
Financial Highlights
Net revenues (R$ mm)
CAGR (14-18): 7%
Source: Company information
32
Financial Highlights
Gross profit (R$ mm) and margin
Source: Company information
33
Financial Highlights
SG&A (R$ mm) and percentage on net revenue
Source: Company information
34
Financial Highlights
Adjusted EBITDA (R$ mm) and margin
Source: Company information
35
Financial Highlights
Adjusted profit (R$ mm) and margin
Source: Company information
36
Financial Highlights
Cash position (R$ mm)
Source: Company information
37
Financial Highlights
Net debt (R$ mm) and leverage (net debt/LTM EBITDA)
228 | 229 | 222 | 205 | 216 | 220 | 238 | 212 |
188
1.8x | 1.7x | 1.7x | 1.7x | 1.9x | 2.2x | 2.2x | 1.9x | 1,6x |
2Q18 | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 |
Average cost of debt (year) | ||||||||
7.1% | 7.0% | 7.2% | 7.3% | 7.0% | 6.6% | 5.9% | 5.4% |
Source: Company information
38
Financial Highlights
Financial cycle* (days)
210 | 224 | 232 | 240 | 245 | 222 | 229 | 210 | 200 | 218 | |||
91 | 92 | 90 | 93 | 89 | 88 | 94 | 92 | 92 | 89 | |||
193 | 197 | 202 | 205 | 219 | 207 | 202 | 192 | 186 | 186 | |||
-74 | -65 | -60 | -58 | -63 | -74 | -67 | -75 | -78 | -73 | |||
1Q18 | 2Q18 | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | |||
Accounts receivable | Inventory | Accounts payable | ||||||||||
Source: Company information | 39 |
*On LTM basis and average of quarter balance sheets from the last 4 quarters |
Ownership Breakdown
Others
15%
BNDESPAR 12%
General
Atlantic
17%
Founder
shareholders
56%
Fonte: informações internas
40
Highlights | Unique combination of |
a widely recognized | |
Leading position in the | brand, diversified client |
base and wide | |
attractive Brazilian | |
distribution network. | |
animal health market. | |
Strong corporate governance and a best-in-class management team.
Expertise in product development with best-in-class R&D
practices and extensive | State-of-the-art |
pipeline. | production facilities. |
41
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Ourofino Saúde Animal Participações SA published this content on 12 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2020 15:17:04 UTC