1. Annual Report
2016/2017
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2. Focus areas 01 02 03 04 05 About Governance Organisational Performance
OBP
Governance
Organisational Performance
Focus areas 04 05
Financial Report
Conclusion
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3. Mission and Vision Vision To be a recognised global biotech
manufacturer of animal health products, founded upon a team of skilled, innovative and passionate professionals
Mission
To translate science into exceptional biological health products and technologies that will result in improved animal and human health, hence food security for all stakeholders X x X . X
Strategic Goal 1:
Build a successful, high performance organisation
Strategic Goal 2:
Improve stakeholder relationship management and communications
Strategic Goal 4:
Implement research and development strategies in line with market trends x
x .
Strategic Goal 3:
Facilitate a more aggressive national and international market access and implement an effective distribution strategy.
Strategic Goal 5:
Contribute to government priorities with respect to support to emerging farmers, food security and economic growth.
High level of integrity
High level of ethical standards
high standards of quality
Excellence in everything we do
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4. OBP Top Facts 1 SA LEADER LEADER 179 DISTRIBUTION PRODUCT DEVELOPMENT
In the
local manufacturing of
Livestock vaccines 1
DISTRIBUTION
network
New
SA LEADER
Investment in
PRODUCT DEVELOPMENT
FACILITIES
Upgrading manufacturing
179
employees
UNQUALIFIED AUDIT
2016/2017
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5. Workforce Profile
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6. 02
Governance
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7. Governance Structure
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8. Board of Directors
Dr Charlotte Nkuna, Mr Yaasir Haffejee, Mr Ronald Ramabulana, Ms Fulufhelo Mphuthi, Dr Pieter Vervoort, Ms Koekie Mdlulwa
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9. Executive Management team
Back row: Dr Bethuel Nthangeni, Mr Matsobane Gololo, Mr Simphiwe Ntombela
Front row: Dr Jacob Modumo, Ms Mpume Ramutle, Ms Zodwa Mobeng
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10. 03 Organisational Performance
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11. SG1: Build a global high-performing organisation equipped with modern technology and expertise to develop and manufacture competitive products to achieve financial sustainability.
Strategic Objective
Target Performance
Status
1.1 Alignment of structure to strategy
Implement approved structure
Not achieved
Decision taken that a productivity study be conducted prior to the finalisation of the organisational structure
Develop job profiles in line with approved structure
Conduct skills audit
1.2 Maintain institutional capacity
Implement succession planning policy
Achieved
Implement retention strategy
Remuneration policy revised and approved
Decision taken to develop an HR Policy Manual
1.3 Performance management system
Implement the revised performance management policy
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12. SG1: Build a global high-performing organisation equipped with modern technology and expertise to develop and manufacture competitive products to achieve financial sustainability.
Strategic Objective
Target Performance
Status
1.4 Financial stability
R145 mil sales revenue
Over achieved
+R24 million above target
R44 mil export sales
+R67 million above target
R3 mil total vaccine sales in provinces
Not achieved
Sales from Government Departments inhibited by the RT10 tender
3% increase on number of doses sold to export market
9,1 mil doses
+9,5 % increase in opportunistic export sales
15% reduced total costs in relation to sales revenue
+36% increased revenue due to opportunistic export sales
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13. SG1: Build a global high-performing organisation equipped with modern technology and expertise to develop and manufacture competitive products to achieve financial sustainability.
Strategic Objective
Target Performance
Status
1.5 Production efficiency
260 batched produced
Not achieved
Reported figure excludes antigens and batches under test
Batch rate failure
Virology : 10%
Bacterial: 5%
Water for injection: 5%
15% production downtime
Over achieved
+3% improvement recognised
80% equipment operating capacity
+4% improvement recognised
1.6 Quality products
4 internal audits
+11 internal audits conducted
Maintain ISO accreditation
Achieved
1.7 A GMP compliant facility as per the approved plan
100% layout changes implemented
Implementation of proposed layout changes would disrupt production
Phase 2 – 80% completed
Estimate on detailed design were over budget. The Board resolved that management look at other alternatives
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14. SG2: Improve stakeholder relations and communications
Strategic Objective
Target Performance
Status
2.1 Improve customer and stakeholder satisfaction
Customer relations management strategy approved and implemented
Not achieved
2.2 Communication strategy implemented
Implement and adhere to the communications strategy and policy
The customer policy was presented to the Board was not approved
2.3 A Brand management framework developed and implemented
Implement Brand awareness strategy
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15. SG3: Facilitate a more aggressive national and international market access and implement an effective distribution strategy
Strategic Objective
Target Performance
Status
3,1 New markets developed and maintained
8 agents appointed in 8 new international markets
Over achieved
+2 agents appointed
1 distribution agreement signed
2 dossiers submitted in new international market
Achieved
8 current export markets maintained
+16 export markets maintained above target
3.2 Current markets maintained
36 million doses sold
Not achieved
Major coops started purchasing in quarter 2 due to implementation of the distribution strategy
3.3 distribution strategy implemented
Distribution strategy implemented
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16. SG4: Implement research and development strategies in line with market trends
Strategic Objective
Target Performance
Status
4.1 Improved products and processes
1 new product dossier submitted to the Registrar
Not achieved
Delay in conducting clinical trials
1 amended dossier on production processes submitted to the Registrar
Achieved
1 GMP aligned production process
4.2 New generation products
Technology validation for 2 new generation recombinant technologies
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17. SG5: Contribute to government priorities in respect to emerging farmers, food security and economic growth
Strategic Objective
Target Performance
Status
5.1 Support to the smallholder and emerging farmer’s association and agricultural small business
3 projects with emerging farmers association
Achieved
22 training sessions/events with small holder farmers and technicians facilitated
Over achieved
+8 events facilitated above target
2 Agricultural co-ops in rural areas supported
2000 doses supplied to small holder farmers
+100 doses supplied above target
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18. 04 Financial Performance
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19. Financial Performance
Revenue increased by 100% from R87m in 2013/14 to R174m in 2016/17 due to changed distribution model locally and increased export market.
Profit for the year also increased by 654% from a loss of R9m in 2013/14 to a profit of R48m in 2016/17.
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20. Assets and Liabilities
Assets increased by 141% from R309m in 2013/14 to R745m in 2016/17 mainly due to funding received and recapitalization assets procured.
Liabilities increased from R169m to R561m mainly due to the grant received which is classified as a long-term liability.
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21. Equity
Equity increased by 31% from R140m in 2013/14 to R184m in 2016/17 due to increased profitability of the company.
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22. Cash and cash equivalents
Cash and cash equivalents increased by 209% from R156m in 2013/14 to R482m in 2016/17 due to government grant and increased revenue over the period.
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23. Statement of Comprehensive Income
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24. Statement of Financial Position
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25. Statement of Cash Flow
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26. Conclusion 05
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27. Conclusion Unqualified audit report
Improved organisational performance
New distribution strategy yielding results
Strong balance sheet
Revenue growth in 2016/17 financial year
Improved production output
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28. THANK YOU Dr Bethuel Nthangeni Acting Chief Executive Officer
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