TAKE Solutions Ltd. · Financial Overview Strong growth and momentum across the operating segments...
Transcript of TAKE Solutions Ltd. · Financial Overview Strong growth and momentum across the operating segments...
Corporate Presentation
TAKE Solutions Ltd. Enabling Business Efficiencies
TAKE: Technology, Analytics & Knowledge for the Enterprise
2
Contents
TAKE – At A Glance
Business Model & Market Potential
Competencies
− Life Sciences
− Supply Chain Management
Financials
Growth Strategies & Key TAKEaways
Appendix
3
TAKE Solutions – At A Glance
Headquartered in Chennai, India, TAKE Solutions Ltd. delivers technology, services and expert advice in Life Sciences and Supply Chain Management domains
Strong presence in US, Europe and Middle East Asia: US contributes approx. 2/3 of revenue
CMMi Level 5 accredited company
Corporate Sponsor of Clinical Data Interchange Standards Consortium (CDISC) and ACI has a Registered Solution Provider (RSP) status
Recognitions:
TAKE is ranked Leader in the life science R&D IT outsourcing market by IDC, a premier global provider of market intelligence and advisory services IT markets
Ranked first by a premier global analyst firm, for industry expertise and overall customer satisfaction in Life Sciences domain
2011 Supply and Demand Chain Executive 100 List
“Editors’ Pick” Distinction by Consumer Goods Technology Magazine
We serve 410+ clients through 14 offices globally with 1,250+ employees
Life Sciences: Celgene, Eisai, Johnson & Johnson, Merck, Neuromed, Novartis, Pfizer, Roche, Sanofi Aventis
SCM: Applied Materials, Alcoa, GE Group, Honeywell, Panasonic, ITC, Pepsi, Transocean, Xerox
About TAKE Marquee Clients
Financials
FY12 Revenue : INR 7,037 million
FY12 Net Profit: INR 856 million
0
2,500
5,000
7,500
FY08 FY09 FY10 FY11 FY12
INR
mill
ion
Revenue Net Profit
4
Global Footprint
Chennai, India Austin, TX
Philadelphia, PA Muscat, Oman
Princeton, NJ
TAKE Solutions Inc. 502 Carnegie Center, Suite 100, Princeton, NJ
USA HQ
TAKE Solutions Ltd. No.8B, Adyar Club Gate Road, Chennai - 600028, India
Global HQ
Riyadh, Jeddah & Al-Khobar
Saudi Arabia
Dubai, UAE
Strong Presence in the US, Middle East Asia and Europe
Hampshire, UK
TAKE Solutions LLP Shriram "The Gateway SEZ", Perungalathur, Chennai, India
Global Delivery Center
Singapore
Abraq Khaitan, Kuwait
5
Recognitions and Partnerships
CMMi Level 5
2011: IDC, a global market intelligence firm, ranked TAKE as Leader in the life science R&D IT outsourcing market based on the company’s capabilities and future strategies aligned with what customers will require in three to five years
2011 Supply & Demand Chain Executive 100 list
2010: A premier global analyst firm recognized and ranked TAKE, first among large system integrators for industry expertise & overall customer satisfaction in the Life Sciences Domain
2010 Great Supply Chain Partner by SupplyChainBrain
2010 “Editors’ Pick” Distinction by Consumer Goods Technology Magazine
Global Logistics & Supply Chain Strategies 2010: 100 Great Supply Chain Partners List
2010: Listed in Food Logistics 100 for Fourth Consecutive Year
Manufacturing Business Technology Emerging 40 Vendor List (USA)
Madras Management Association (MMA) Award 2010 for Managerial Excellence in the Services Category
Oracle Gold Partner
SAP Business Objects Gold Partner
Microsoft BIO IT alliance Partner
CDISC Solutions Partner
Microsoft’s Digital Pharma Initiative
Microsoft High Impact Gold partner
Others: Cegedim Relationship Management, QlikTech, & Intermec
Certifications & Accreditation Alliances and Partnerships
Business Model &
Market Potential
7
TAKE Solutions – Business Model
DOMAIN Supply Chain Management & Life Sciences
TECHNOLOGY
Service Oriented Architecture (SOA)
Cloud Computing
Virtualization
DELIVERY model
REVENUE model
SaaS On
Premise Business Services
Embedded / RFID / Mobile
Licenses
Maintenance
TRANSACTIONS / SUBSCRIPTIONS
Services
8
TAKE Solutions – Business Model
Balanced: Well distributed across two key verticals - niche offerings addressing multiple end user industries
Wide Portfolio of Offerings: Solutions to address customer needs - Solutions delivered as business services, products and SaaS
Diversified Customer Base: Portfolio of solutions to address customer size - focused approach to large & mid-market customer segment and wider approach to SME segment
Scalable: Platform agnostic solutions to enhance addressable markets and strategic partnerships to drive penetration in areas of specialization
Diversified Revenue Streams: Income from subscription, licensing, royalties, services and AMC leading to a mix of annuity and non annuity revenues
9
Total Addressable Market
1.0
8.0
40.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
SaaS On Premise Business Services
USD
bill
ion
5.7
10.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Pre - Approval Post- Approval
USD
bill
ion
Supply Chain Management Life Sciences
Domain Competency
Life Sciences
11
Integrated Solutions & Services
Discovery Development Commercialization
Research Preclinical Phase I Phase II Phase III Phase IV
Technology Solutions
√ √ √ √
CTMS EDC CDMS eDMS eSub CDR/LSH PV
Development Process Services
Individual offerings
SAS Programming Biostatistics Clinical Data
Standardization
Document & Submission Publishing
Milestone based & Multi-milestone Solutions
IND/CTA to NDA Legacy Data Standardization
Document & Submission publishing Data Integration & Clinical Data Repository
Kindly refer the Appendix at the end of the presentation for the meanings of the acronyms used above
12
Software products - Life Sciences
CDISC
Accelerators
PharmaReady
DMS
PharmaReady
eCTD
PharmaReady
SPL/PLR
PharmaReady
TRMS
SafetyView
PharmaReady
PPM
SAS - Bio Statistics
Framework
Clinical Development
Bio Statistical Programming
Regulatory Submissions
Safety
pvNet
pvConnect
PharmaReady
eTMF
CLINICAL REGULATORY SAFETY
Oracle Life Sciences Oracle Clinical Phase Forward
Siebel CTMS IMPACT
Argus Safety AERS LSH
13
Business Services – Life Sciences
Clinical Data Warehouses
ePublishing NDA/IND/ANDA
Document Publishing
Document Archival Safety
Analytics
Safety Signal Detection
Core Data Sheets
Literature Scanning
Case Processing
DMCs
Data Standardization
NDA preparation Biostatistics
Programming
Data Management
Regulatory
Clinical
Safety
Medical Writing & Coding
Trial Master File
14
Customer A
Therapeutic Area 1
Indication A Indication B
Phase1
Study I
Phase2
Study 1
Therapeutic Area 2
Indication C
Customer B
Therapeutic Area 1
Indication D Indication E
Phase1
Study 1 Study 1 Study 1
Phase2
Study 1 Study 1 Study 1
Therapeutic Area 2
Customer C
Therapeutic Area 1
Customer D
Therapeutic Area 1
Established customer relationships; scalable revenue model
Technology + business services
TLFs, Biostatistics, SDTM, ADaM, ISS/ISE, DMCs, SAP, EAC, NDAs
Increasing customer base
Mu
ltip
lyin
g re
ven
ues
15
TAKE Life Sciences - Differentiators
Unique combination of deep domain expertise and technical skills
Market penetration across
Bio-pharmaceutical (branded & generic)
Medical device
CROs
Mature infrastructure across USA and APAC
People
Process
Infrastructure – SAS 70* compliant, validated data center
Strategic partnerships with Oracle and Liquent
TAKE’s differentiated approach to markets
Large and mid-market segment : Functional Service Provider
Small and medium segment : Full Service Provider
* SAS 70 (the Statement on Auditing Standards No. 70) defines the standards an auditor must employ in order to assess the contracted internal controls of a service organization. Service organizations, such as hosted data centers, insurance claims processors and credit processing companies, provide outsourcing services that affect the operation of the contracting enterprise.
16
TAKE Life Sciences - Strategy
Continuously enhancing solutions portfolio to address additional areas of clinical, regulatory and safety leading to larger ticket size of contracts
Reducing dependency on the US market
WCI acquisition gave European footprint
Expansion in other developed geographic like Europe and developing regions like Asia Pacific
Deepening engagement at existing campuses to enable participation in greater proportion of overall R&D spend
Proactively positioning services and offerings in geographies which are mandating regulatory filing in electronic mode
Leveraging partnerships and alliances with Oracle, Liquent & Cegedim Relationship Management to increase product user base as well as expand addressable customer base
17
TAKE assessed as a LEADER in Life Sciences
“TAKE has built a strong list of clients, based on its
deep domain knowledge, willingness to engage
customers as partners, IP-based solutions, and
thought leadership in clinical, regulatory, drug
safety, and other life science areas.”
“TAKE's diverse customer base, broad services
portfolio, strong commitment to life science
industry-specific growth, domain-centric expertise,
and strong customer relationships make TAKE is a
fierce competitor in winning projects that the
company competes for.”
Source: IDC MarketScape: Worldwide Life Science R&D IT Outsourcing 2011 Vendor Assessment, August 2011
Excerpt from the Report:
• Capabilities: Evaluated on current capabilities and how well aligned it is to customer needs
• Strategies: Indicates how well the company’s future strategy aligns with what customers will require in three to five years
18
Customer Profiles –Market Potential
Pharmaceutical
BiotechnologyConsumer
HealthAnimal Health
CropScience/Agroc
hemicals
MedicalDevices
DietarySupplements
Cosmetics Tobacco Generics
Turnover > $100m 744 172 63 53 116 128 72 60 46 44
Turnover > $250m 476 123 53 44 100 99 56 52 40 40
Turnover > $500m 351 98 41 38 84 81 43 45 35 32
Turnover > $1b 257 88 34 27 71 60 36 35 29 22
257 88 34 27 71 60 36 35 29 22
351
98 41 38
84 81 43 45 35 32
476
123
53 44
100 99 56 52 40 40
744
172
63 53
116 128
72 60 46 44
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Nu
mb
er
of
com
pan
ies
Customer/prospect type
Number of customers/prospects by type
19
Geographical spread of customers/prospects
North America Europe Africa Asia Australasia South America
Generics 49 17 2 13 0 1
Tobacco 48 13 0 9 0 2
Cosmetics 175 1270 3 661 0 5
Dietary Supplements 150 23 2 34 1 1
Medical Devices 285 79 0 16 0 1
Crop Science/Agrochemicals 166 47 2 104 6 30
Animal Health 120 335 0 95 0 3
Consumer Health 83 27 2 20 0 1
Biotechnology 587 162 0 34 8 0
Pharmaceutical 4018 3757 33 3139 107 185
0
1000
2000
3000
4000
5000
6000
7000
Nu
mb
er
of
cust
om
ers
/pro
spe
cts
Geography
Customers/prospects by geography
20
Diverse Customer Base : Life Sciences
Bio-Tech
CROs /
Academic
Pharma
Generics /
OTC
Devices
We serve 7 of top 10 global pharmaceutical companies
Domain Competency
Supply Chain Management
22
Software Products
SNG, XPC, Resonance
ERM
TAKE IPOINT, Take Forward, Take Hub
Insight, Cameo, Optima
Value Chain Collaboration
Gemini (Process Manufacturing)
Gemini (Discrete Manufacturing)
Compliance Label Manager
RoutePro
Enterprise Mobility & Auto-ID
SaaS Platform
New generation fulfillment on multi-tenancy model
Products in Pipeline
Gemini for SAP
Products in Pipeline
OneSCM
TAKE Business Cloud
Social enterprise- perception tracking, Customer insight & service
Products in Pipeline
23
Business Services
Spend Analytics
Supplier Performance
Supplier Selection
Contract Administration
Consulting & Insight NAFTA
Compliance
AP automation
Catalog Services
Supplier Enablement
Invoice Processing
Requisition Processing
Reverse Engineering
Value Engineering
Prototyping Simulation & Testing
Design
Drawing & Documentation
Sourcing Support
Sourcing
Engg. Services
Procurement Operations
24
Business Strategy
Augmenting product & service offerings to enhance overall customer experience and business transformation
Investing in new engagement models to drive the demand such as Software as a Service (SaaS)
Increase penetration in high potential geographies (e.g. Europe, Emerging Markets) in addition to consolidation of presence in existing markets (US, Middle East, Asia)
Forging alliances with leading ERP vendors to drive visibility, expand reach & increase volumes
25
Growth Drivers…
• Revenue
– Pent-up demand and revival of investment in ERP is driving software sales
• Scalability and functionality advantage in Auto-ID & Supply Management
• Repeat business and longer term engagement
– Outcome oriented end-to-end process outsourcing driving consulting and business services
revenue
• 100 existing customers in the $1 - 6 Billion (turnover) range provide a captive base for
business services
– Subscription and software as a service driving Supply Chain on the cloud
• User adoption crossing 25,000 for OneSCM
• New monetization opportunities by leveraging the community
• Geographic Reach
– Leverage success of US model in Europe
– Build on the leadership position in the Middle East
26
Diverse Customer Base - Global SCM Customers
Pharma & Medical
Industrial Products/ Services
Consumer Products
High Tech
FMCG / Food
Oil & Gas
Financial Highlights
28
Financial Overview
Strong growth and momentum across the operating segments
Revenue (Rs Mn) EBITDA (Rs Mn)
EPS (Rs) PAT (Rs Mn)
2,939 3,354 3,518
5,003
7,037
FY08 FY09 FY10 FY11 FY12
765 704
521
1,033
1,451
FY08 FY09 FY10 FY11 FY12
529 528
324
700
856
FY08 FY09 FY10 FY11 FY12
4.74 4.44
2.70
5.83
7.13
FY08 FY09 FY10 FY11 FY12
29
Revenue Analysis
Revenue By Category Revenue By Geography Revenue By Vertical
22% 23%
59%
65%
11%
10%
8%
2%
FY11 FY12
Product License Business Services AMC Others
65% 63%
33% 31%
2% 6%
FY11 FY12
US AsiaPac RoW
47% 51%
49% 44%
4% 5%
FY11 FY12
LS SCM Others
30
Revenue Analysis
Revenue By Category Revenue By Geography Revenue By Vertical
22% 21% 20%
65% 64% 67%
11% 11%
11%
2% 4% 2%
Q2FY12 Q1FY13 Q2FY13
Product License Business Services Amc Others
62% 61% 55%
31% 33%
38%
7% 6% 7%
Q2FY12 Q1FY13 Q2FY13
US Asia Pac RoW
50% 53%
48%
45% 43%
50%
5% 4% 2%
Q2FY12 Q1FY13 Q2FY13
LS SCM Others
31
Quarterly Performance
1,173 1,249
1,496 1,586 1,674
1,849 1,927
2,178 2,117
8.2% 6.5%
19.8%
6.0%
5.6%
10.4%
4.3%
13.0%
-2.8%
-5%
0%
5%
10%
15%
20%
25%
0
500
1,000
1,500
2,000
Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13
INR
mill
ion
Revenue
Net Revenue Growth q-o-q (%)
248 268 285 338 350
404 359
448 416
163 189 204 216 202 213 225 252 211
21.2% 21.5%
19.0% 21.3% 20.9% 21.8%
18.6% 20.6% 19.7%
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13
INR
mill
ion
Profitability
EBITDA Net Profit EBITDA Margin (%) Net Margin (%)
32
Consolidated Order Book
26.6 28.4 28.3 30.3 31.1 33.7 32.1 40.6 41.2 39.3
25.2 28.8
33.4
40.5 41.4 38.4 41.9
49.6 51.6 46.0
0
10
20
30
40
50
60
70
80
90
100
Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13
USD
mill
ion
SCM LS
57.2 61.7
70.8 72.5 72.1 74.0
90.2 92.8
51.8
85.3
33
Share Holding Pattern
Category No of Shares % of Total
Promoter & Promoter Group
73,772,314 60.3%
Public Shareholding
- Institutions
Mutual Funds/Financial Institutions/ Banks
3,524,182 2.9%
FIIs 2,628,722 2.1%
Trust 2,765,422 2.3%
- Non Institutions
Bodies Corporate 15,446,937 12.6%
Retail/Others 24,262,423 19.8%
TOTAL 122,400,000 100.0%
Shareholding Patterns (Sept 30, 2012)
Promoter & Promoter Group
60.3%
Mutual Funds/Financial
Institutions/ Banks 2.9%
FIIs 2.1%
Trust 2.3%
Bodies Corporate
12.6%
Retail/Others 19.8%
Growth Strategies
And
Key TAKEaways
35
Key Growth Strategies
• Remain strongly IP centric :
Plans to launch 6 products across LS and SCM over the next two years
• Build customer focused solutions
• Augment product offerings with services
• Actively pursue emerging technologies & standards and incorporate them in our products
SaaS
Right Product and Service
Mix
• Entry into new geographies
Increase revenue contribution from Europe to 20% over the next two years
• Gain momentum and leadership position in US and Asia Pacific
Exploring New Markets
• Build Partnerships to make our products platform agnostic
DataMAX, Cross Gate, Cegedim Dendrite, Firefox, Intermec, Liquent, Oracle & SAP
• Inorganic Growth for:
Products
Markets
Customers
Right Investments
Growth Enablers
36
Key TAKEaways
Strong fundamentals
Domain expertise
Marquee client list
Niche player operating in niche segments
Strong Portfolio of products and services
Growth momentum
Traction in Life Sciences vertical
Revival in the SCM vertical
Sustained growth in order book providing visibility
Improving financials
Traction in revenue and expansion in margins
Improvement in key operating metrics and profitability ratios
37
Appendix
Acronyms Meanings
CTMS Clinical Trial Management System
EDC Electronic Data Capture
CDMS Clinical Data Management System
eDMS Electronic Document Management System
eSub Electronic Submissions
CDR Clinical Data Repository
LSH Life Sciences Hub
PV Pharmacovigilance
IND Investigational New Drug
CTA Clinical Trial Authorization
NDA New Drug Application
PaaS Platform as a Service
ETL Extract Transform and Load
PO collaboration Purchase Order Collaboration
AP automation Accounts Payables Automation
THANK YOU
Disclaimer:
This presentation has been prepared by TAKE Solutions Ltd. (the “Company”) solely for your information and for your use and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or published in whole or in part, for any purpose. By attending this presentation, you are agreeing to be bound by the foregoing restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials.
Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT including factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in Supply Chain Management (SCM) & Life Sciences (LS), disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our contracts, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. TAKE does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.
TAKE: Technology, Analytics & Knowledge for the Enterprise
For further information, please contact: Sachin Garg [email protected]