Corporate Plan 2017/18 to 2019/20 - Amazon Web...

Corporate Plan

2017/18 to 2019/20

2 | Onderstepoort Biological Products © | April 28, 2017

Focus areas

01 About OBP

02 Governance

03 Strategic Goals and Targets

04 Financials

05 Strategic

Risks

06 Conclusion


01 About OBP


To be a global bio-pharmaceutical manufacturer and distributor of animal health products.

Our Vision


To translate science into bio-pharmaceutical health products and technologies resulting in improved animal health, and food security to satisfy our stakeholders.

Our Mission


OBP Top Facts

LEADER In the

local manufacturing of Livestock vaccines

1

SA LEADER

DISTRIBUTION network

New

189 employees FACILITIES

Upgrading manufacturing

CLEAN AUDIT 2015/2016

PRODUCT DEVELOPMENT

Investment in

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Our Product Range

Bacterial

Vaccines

Viral

Vaccines

Blood

Vaccines


Workforce Profile


02 Governance


Governance Structures • Board was appointed on 15 May 2014

• Chairperson of the Board was appointed on 1 August 2011

• The Chairperson of the Board is Dr JH Adams

• Company Secretary is Ms Mobeng

Sub-Committee Members

Audit, Risk and IT

Committee

• Dr MJ Mashaba (Chairperson)

• Ms K Mdlulwa

• Dr MR Mashego

RemCo, HR and Ethics

Committee

• Ms K Mdlulwa (Chairperson)

• Dr MJ Mashaba

• Dr ME Mogajane

Research, Development

and Operations Committee

• Dr ME Mogajane (Chairperson)

• Dr MR Mashego

• Dr MJ Mashaba


Board of Directors

Dr JH Adams Board Chairperson

Dr M Mashaba Non-Executive Director

Dr ME Mogajane Non-Executive Director

Ms DN Mobeng Company Secretary

Ms KT Mdlulwa Non-Executive Director

Dr MR Mashego Non-Executive Director


Organisational Structure


Executive Management Team

Mr Matsobane Gololo Chief Financial Officer

Dr Jacob Modumo Business Development

Officer

Ms Mpume Ramutle Acting Chief Executive

Officer

Ms Zodwa Mobeng Company Secretary

Dr Bethuel Nthangeni Chief Scientific Officer

Mr Simphiwe Ntombela Operations Executive


03 Strategic Goals and Targets


Performance planning, budgeting and reporting cycle


BUSINESS CONTEXT

SOCIAL

Increase in

red meat

consumption

The needs of

small and

emerging

farmers

Changing

food safety

requirements

LEGAL ECONOMIC POLITICAL TECHNOLOGY ENVIRONMENTAL


BUSINESS CONTEXT

ECONOMIC POLITICAL TECHNOLOGY ENVIRONMENTAL

Ever

changing and

stringent

regulatory

requirements

LEGAL SOCIAL


BUSINESS CONTEXT

LEGAL POLITICAL TECHNOLOGY ENVIRONMENTAL

Decrease in

livestock

numbers

ECONOMIC SOCIAL

New entrants

into markets

Souring input

costs

Trade

practices

(inaccessibility

and

restrictions of

certain

markets)


BUSINESS CONTEXT

LEGAL TECHNOLOGY ENVIRONMENTAL ECONOMIC SOCIAL POLITICAL

International

Trade

Policies

Partnerships

with SA

Trade

Partners

Political

Imperatives

(food

security)


BUSINESS CONTEXT

LEGAL ENVIRONMENTAL ECONOMIC SOCIAL POLITICAL TECHNOLOGY

Social media

and

communication

platforms

New vaccine

production

Technologies

Cold Chain

Monitoring

Combination

vaccines


BUSINESS CONTEXT

LEGAL ECONOMIC SOCIAL POLITICAL TECHNOLOGY ENVIRONMENTAL

Bio-safety

containment

Global

warming and

climate

change

Droughts and

floods


Strategic Goals Strategic Goal 1

Build a global high performing organization equipped with modern technology and expertise to develop and manufacture competitive products to achieve financial sustainability.

Strategic Goal 2

Improve stakeholder relationship management and communications.

Strategic Goal 3

Manufacture competitive and quality products to facilitate a more aggressive national and international market access and implement an effective distribution strategy.

Strategic Goal 4

Continuous review of research and development strategies in line with market trends.

Strategic Goal 5

Contribute to Government priorities in respect of support to emerging farmers, food security and economic growth.

1

2

3

4

5


Alignment to Government Priorities • National Growth Path

• Job drive 2: Main economic sectors (agricultural

sector)

• Job driver 3: Seizing the potential of new economies

• National Development Plan

• Outcome 4: Economy and Employment

• Outcome 6: Economic Infrastructure

• Outcome 7: Comprehensive rural development and

food security

• Outcome 12: Positioning South Africa in the World

• DAFF Strategic Plan

• Strategic Goal 2: Enhance production, employment and

economy

• Strategic Goal 3: Enabling environment for food security

and sector transformation


Performance Indicators Strategic Goal 1: Organisational Efficiency and Effectiveness.

No Key Performance Indicators

2016/17 (Estimated performance)

Targets 2017/18

Comments

1.1 New organisational structure aligned to corporate plan approved and implemented

Organisational structure aligned to corporate plan approved

Approved organisational structure

Macro organisational structure approved. Structure for entire organisational need to be aligned with GMP requirements

1.2 Staff turnover rate (%)

Turnover rate between 4% and 10%. Implement succession planning Implement retention strategy

Turnover rate between 4% and 8%

Current turnover rate is 8.5% Critical and core staff are being retained.

1.3 Performance management system

Approval of the performance management policy

Revised performance management policy implemented

Transform OBP into a high performing organisation. Performance management policy has been revised.


Performance Indicators Strategic Goal 1: Organisational Efficiency and Effectiveness.

No Key Performance Indicators


Targets 2017/18

Comments

1.4 Annual net sales revenue in rand (national and international)

R144 million R160 million

Increase of 11% - budget vs Estimated performance for 2016/17 Increase of 74% - 2015/16 Actual (R92 m) vs 2017/18 budget

1.5 Equipment and layout upgrades planned versus completed (%)

24% layout upgrades completed

70% of planned upgrades completed 80% of identified equipment procured.

80% of planned upgrades of the current facility have been finalised

GMP production facility constructed (% of stage completed

Stage 2 completed Stage 3 – 100% Stage 4 – 100% Stage 5 – 60%

Facility designs being finalised


Performance Indicators Strategic Goal 2: Stakeholder relationship management and communications

No Key Performance Indicator 2016/17 (Estimated performance)

2017/18 Comments

2.1 Customer satisfaction improved by 10%

Customer relations strategy approved.

Customer satisfaction survey improved by 10%.

Customer Satisfaction Survey Results: Average of 5.3

2.2 Communications strategy developed, approved and implemented.

Communications policy approved

Communications strategy developed and approved

Focus on improving communications with stakeholders

2.3 Stakeholder relations management plan developed, approved and implemented.

Updated stakeholder database in line with business changes

Stakeholder relations management plan developed and approved

Focus on improving OBP’s engagement with critical stakeholders

2.4 Brand awareness framework developed, approved and implemented.

Brand management framework developed and approved

Brand management framework developed and approved.

Improve visibility of OBP brand


Performance Indicators Strategic Goal 3: Production efficiency, marketing and distribution of OBP vaccines

No Key Performance

Indicator 2016/17 (Estimated performance)

Target 2017/18

Comments

3.1 Production efficiency

Number of doses transferred to distribution to meet sales forecast

34 million 39 million 31.5 million (baseline) doses transferred to distribution in 2015/16 Estimated transfer in 2016/17 is 34 million doses and 39 million doses targeted for 2017/18 financial year Planned improvement of 8% from 2015/16

Overall batch failure rate (%)

10% 8% Targeting less than 5% failure rate by 2019/20

Number of GMP aligned production processes reviewed / revalidated (n)

2 key GMP aligned production processes

2 key GMP aligned production processes

Targeting 8 GMP aligned production processes by 2019/20

3.2 Quality products

Internal quality audits conducted (n)

8 internal audits

8 internal audits 2 (baseline) conducted in 2015/16 This represents planned improvements of 300%

ISO accreditation maintained

Yes Yes ISO accreditation maintained


Performance Indicators Strategic Goal 3: Production efficiency, marketing and distribution of OBP vaccines

No Key Performance

Indicator 2016/17 (Estimated performance)

Target 2017/18

Comments

3.3 New markets developed

New international markets developed (n)

8 markets 6 markets 4 baseline Planned improvement of 50% from baseline (2015/16)

Dossiers submitted (n) 2 dossiers submitted

2 dossiers submitted

2 baseline Maintaining 2 dossier submission per annum internationally.

3.4 Current markets sales increased

Increase in annual sales volume (number of doses)

36 million doses 39 million doses 24,5 million (baseline) doses produced in 2015/16 Estimated 36 million doses for 2016/17 Planned improvement of 47 % from 2015/16

3.5 Distribution strategy implemented

Distribution strategy assessed and reported

Distribution strategy implemented

Implementation assessment report

New distribution strategy implemented Impact assessment conducted


Performance Indicators Strategic Goal 4: Research and Development Strategies

No Key Performance Indicator


2017/18 Comments

4.1 Improved products and processes

New product dossiers submitted (n)

1 new products dossiers submitted to the Registrar

2 new products dossiers submitted to the Registrar

1 dossier (baseline) 100% improvement from previous year

Dossiers amended (n) 1 amended dossier submitted to the Registrar

3 amended dossiers submitted to the Registrar

2 amended dossiers (baseline) 50% performance improvement from previous year

4.2 New products development

Dossiers based on new generation technologies developed (n)

2 dossiers based on new technology submitted to the Registrar

2 dossiers based on new technology

Baseline 0 100% performance improvement from baseline of 0 in 2015/16


Performance Indicators Strategic Goal 5: Support Government Priorities

No Key Performance Indicator


2017/18 Comments

5.1 Support to the smallholder and emerging farmers’ association and agricultural small businesses

Emerging farmer associations supported (n)

3 emerging farmer associations supported

3 emerging farmer associations supported

Targets similar to previous year Lack of funding is a challenge Funding submissions made to National Treasury for small holder farmer development through DAFF Baseline 88 600 doses Improvement of 13% from baseline (2015/16)

Training sessions/events with smallholder farmers and technicians facilitated (n)

22 training sessions/events facilitated

22 training sessions/events facilitated

Agricultural co-ops supported

2 Agricultural coops supported

2 Agricultural coops supported

Doses of vaccines to smallholder farmers supplied (n)

100 000 doses supplied to smallholder farmers

100 000 doses supplied to smallholder farmers


04 Financials


Income Statement


Balance Sheet ONDERSTEPOORT BIOLOGICAL PRODUCTS SOC LTD

STATEMENT OF FINANCIAL POSITION

Revised

Estimate

2016-2017 2017-18 2018-19 2019-20

Non Current Assets

Property plant and equipment 159 349 201 266 245 977 296 748

Current Assets 613 426 650 231 689 245 730 600

Inventory 54 221 57 474 60 923 64 578

Receivables 37 535 39 787 42 174 44 704

Cash and cash equivalents 521 670 552 970 586 149 621 317

Total Assets 772 774 851 498 935 223 1 027 348

Equity and Liabilities

Share capital 1 1 1 1

Accumulated surplus/(deficit) 254 631 306 265 361 540 421 629

Deferred income 504 617 534 894 566 987 601 006

Current liabilities 13 526 14 338 15 198 16 110

Trade and other payables 4 498 4 768 5 054 5 357

Deferred income 9 029 9 570 10 144 10 753

Total equity and liabilities 772 774 855 498 943 726 1 038 746

BUDGET MTEF


Cash Flow Statement ONDERSTEPOORT BIOLOGICAL PRODUCTS SOC LTD

STATEMENT OF CASH POSITION

Revised

Estimate

2016-2017 2017-18 2018-19 2019-20

Cash flows from operating activities R' 000 R' 000 R' 000 R' 000

Cash receipts from Stakeholders 166 171 176 141 186 710 197 912

Cash paid to suppliers and employees (125 704) (149 599) (157 687) (167 148)

Cash utilised in operations 40 467 26 542 29 023 30 764

Interest income 34 327 14 800 14 800 15 688

Net cash from operating activities 74 794 41 342 43 823 46 452

Cash flows from investing activities

Purchase of property, plant and equipment (9 474) (10 042) (10 645) (11 283)

Net cash from investing activities (9 474) (10 042) (10 645) (11 283)

Cash flow from investing activities

Government grant - - - -

Total cash movement for the 12 months 65 320 31 300 33 178 35 169

Cash at the beginning of the 12-months 456 350 521 670 552 970 586 148

Total cash at the end of the 12 months 521 670 552 970 586 148 621 317

BUDGET MTEF

Financial Status


Key Strategic Risks

1. Inability to generate sufficient revenue from

operations

2. Product availability (disruption of product

supply)

3. Competitiveness and market share (GMP)

4. Product development output



06 Conclusion


Conclusion

• Unqualified audit report – 5 years in succession

• Clean audit report for 2015/16

• New distribution strategy yielding results

• Strong balance sheet

• Revenue growth in 2016/17 financial year

• Improved production output

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