Africas leading route-to-market partner for pharmaceuticals and - PowerPoint PPT Presentation

Africa’s leading route-to-market partner for pharmaceuticals and consumer OTC goods April 2019

Introducing Worldwide Healthcare

Worldwide Healthcare Corporate structure Eco Health Dubai (service) Imperial 90% Logistics Eco Health Eco Health Ltd WWCVL Ltd Mauritius Nigeria Mauritius (Holding company) (market facing) (Holding company) 10% Chanrai WHL Ghana (market facing) 3

Worldwide Healthcare Organisational structure S Muthyampeta WWHC Nigeria Managing Director S Sharma WHL Ghana S Thekekkara Managing Director Johan Truter Eco Health / African Regions Worldwide Healthcare Board and CEO B.K Mani CEO Eco Health Dubai Chief Financial Officer WWHC West Africa MMA 4

The Worldwide Healthcare business Worldwide Healthcare specialises in the distribution and marketing of healthcare products, largest private healthcare distribution in West Africa. Key partner for major pharmaceutical companies in innovator, generics and OTC space. Supported through a network of Distributes 80% of ethical • Market share of pharmaceutical trade in Nigeria 17 000 Warehouse facility in Nigeria about 30% m 2 and 30% in Ghana Distribution network into • Cold chain facilities with WHO- More than 1300 300 m 3 wholesale, retail, hospitals and approved delivery system employees institutions including 600 sales representatives Business history of over 150 • Branches and depots across the 10 country years Presence in three Modern and efficient • countries Wholesale customers throughout 100 pharmaceutical marketing and the country distribution solutions 5

Worldwide Healthcare Nigeria & Ghana Services offered: Importation • Sales and distribution • Warehousing • Marketing services • Regulatory support • Employee hosting • Merchandising • Key statistics: 10 branches • 4500 pharmacies covered directly or indirectly • 30 agencies • through SOs 1300 staff • Another 40 000 retail outlets (unregistered • 80% market share of ethical in • pharmacies and PMVs) covered by wholesale Nigeria and 30% in Ghana 800 hospitals and 200 clinics covered directly • 30% market share of total • market in Nigeria 6

Geographic reach Nigeria Branch locations Coverage during a typical month 7

Bringing difference to healthcare route-to-market Nigeria • 10 depots of about 17 000 m 2 • Over 1000 wholesale clients • 50 000 retail clients 8

Geographic reach Ghana 9

Track on the go Tracking route & coverage 10

Recent accolades • Recognised by the London Stock Exchange Group as one of the “Companies to Inspire Africa” for 2019 • Recognised by NAFDAC - the regulatory agency of Nigeria as “Best Compliant Importer (Drugs)” for the year 2018 11

Service offering & key relationships

Service offering Joint planning & trading terms Customisable reporting & Place orders market Additional services intelligence Regulatory Invoicing & Purchase stock debt collection support Fully integrated People route-to- hosting market Merchandising Primary solution Marketing & & activations transport detailing 3PL services Secondary Warehousing distribution in-country Order taking & National sales processing 13

Key relationships Nigeria 2002 2007 2012 2017 to to to to 2006 2011 2016 2021 14

Key relationships Ghana 2011 2012 2013 2014 2015 2016 2017 2018 15

OTC category partners Nigeria & Ghana 2011 2012 2013 2014 2015 2016 2017 2018 16

Our route-to-market solution Francophone countries Global manufacturing sites East Africa Southern Africa Nairobi Centurion Accra Dubai Anglophone West Africa Tanzania Gambia Senegal Mauritius Namibia Angola Lusophone countries Sierra Uganda Cameroon Madagascar Botswana Mozambique Leone Ethiopia Liberia Mali Comoros Others Zambia Cape Verde Benin Niger Seychelles Malawi Direct markets Togo Chad Rwanda Lesotho DRC Kenya Guinea Swaziland Djibouti G-Bissau Congo Ghana Cape Burkina Faso Verde Nigeria Lelystad European South Africa hub if required Ivory Coast 17

Differentiators

Key differentiators Imperial Logistics group company with strong financial and • corporate governance Compliance, BCP, WHO approved GDP systems and SOPs • Highly motivated field force trained in-house and by principals • Solid IT (Oracle R12), SFA solution for sales force effectiveness • Proven expertise in growing brands and through knowledge of • route-to-market Good risk management with purchase options from Dubai • Excellent reputation with regulatory authorities • Efficient supply chain with country-wide capabilities • 19

Corporate citizenship

Corporate social responsibility Key donor of out patient unit at Tulsi Chanrai Foundation Eye Hospital Area Bed capacity Land: 5.25 acres 54 beds • • Built up: 36 000 square feet 40 free, 14 private patients • • Operation theatres Services Three operating theatres Cataracts Orbit & oculoplasty • • • Two free theatres, one private R.E. Optical dispensing • • • Cornea Paediatric • • Glaucoma opthamology • V.R. • 21

The macro economic environment

Nigeria – Prospects 2023 Consumer spending per year Consumer class, millions US$ billions 525,4 44,4 42,5 461,1 36,2 36,0 404,5 363,5 30,9 332,3 28,3 306,4 24,0 296,3 274,2 22,1 260,4 245,5 218,9 230,1 121,8 108,7 97,8 88,3 79,8 72,0 76,3 58,1 62,3 69,0 53,8 49,3 2018 2019 2020 2021 2022 2023 Ethiopia Kenya South Africa Nigeria Ethiopia Kenya South Africa Nigeria 2018f 2023f 23

RELIANCE ON OIL FOR EXPORT REVENUES IS Nigeria – Prospects 2023 ONE OF NIGERIA’S STRUCTURAL WEAKNESSES Composition of exports by revenue, 2015 Petroleum EXTRACTIVES ACCOUNT FOR JUST 10% OF GDP, gas; 15% ILLUSTRATING HOW DIVERSIFIED THE ECONOMY IS Composition of GDP, % Cocoa products; 2% Crude petroleum; Vegetable 77% products; 1% 13 13 14 9 10 10 Other; 5% 48 54 53 ALTHOUGH THE TAX BASE IS SLOWLY BROADENING, THE HEALTH OF GOVERNMENT FINANCES IS STILL DIRECTLY IMPACTED BY FLUCTUATIONS IN OIL REVENUES Source of government revenues, billions of naira 29 24 23 5000 Oil revenues 4000 increased 2015 2016 2017 by 177% 3000 YOY in Other industrises, incl. manufacturing 2017, 2000 Mining, oil, and gas which Services had a 1000 0 2016 2017 Oil revenue Non-oil revenue Independent revenue & others 24

Macro economic updates Macroeconomic trends – Nigeria After rather peaceful conduct of both federal and state elections, confidence is returning to markets. The opposition put up a good fight and the country has been politically polarized by North and West voting for Buhari and East going for Abubakar. Lot will depend on how the new government will include fair representation of East. Oil production which was steady around 2Mbpd 4 years back is now around 1.7Mbpd and it will be critical that any disruptions are avoided. The forex reserves are steady at 43BN which is almost 12months of cover. Policy rates of 14% have been maintained and inflation is on the decline. FAAC allocations have been in the range of 700Bn per month and this should improve liquidity conditions in the market . Economic Indicators – output Economic Indicators – market 25

Macro economic updates Macroeconomic trends – Nigeria Unlike earlier election periods, CBN succeeded in avoiding any panic in the Forex Market and there was even a slight appreciation in the wholesale market. Portfolio flows into I&E window have increased substantially in Jan and Feb (USD3.5Bn) which is 90% more than same period last quarter. We have been securing dollars at an average of 344 Naira to a dollar in the current year. 26

Macro economic updates 27

Macroeconomic trends – Ghana • Ghana is facing some uphill challenges. • The government in its effort to curb inflation and reduce the budget deficit (interest service to budget was more than 25%), started aggressively cutting policy rates, down 10% in last 3 years. • This has resulted in the lack of interest in FPI into debt market. • Coupled with the withdrawal from IMF program, the currency has taken a severe beating of 13% in one month. • They are attempting to raise a USD3n Eurobond, which will raise external debt to about 22Bn (46% of GDP). • This bond is not a substitution, but is expected to meet the budget deficit!!! 28

Strategies for growth

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Strat 2022- Great ideas are greater when delivered Pharma LSP Consumer Local 16-17 Services OTC Companies Coverage & 17-18 Retail Focus Generics Digitization Patient / Consumables Mid-Markets 18-19 Customer & Devices Wave 1 Centricity 31