Transcript Title

TAU-CHEM s.r.o.
Overview
October 2007
EXECUTIVE SUMMARY
• TAU-CHEM Ltd. is one of the Slovak’s leading manufacturers of Fine Chemicals that find
applications in a broad spectrum of market sectors. Currently the firm is looking to expand its
facilities and launch new streams of business.
• The company was founded in 1994 by partners with extensive experience in organic
synthesis and technology. With a team of highly skilled organic chemists, including 3 PhDs,
Tau-Chem specializes in the heterocyclic chemistry as well as in the more conventional fields
of organic synthesis. Fully equipped quality control laboratories ensure that the manufacture
complies at all stages with the highest quality standards. Within its existence the company
acquired number of business partners along with a distinguished position on the market. One
year ago we started close cooperation with German company Axxence GmbH. The result is a
new area in our production ability „ AROMATICS“ comprising 11 natural flavors and
fragrances. Database of more than 12 000 compounds with the complete literature research,
the product catalogue containing 400 compounds accomplished with the technology
documentation prove the sound functionality and abilities of the company resulting into an
annual average growth of revenues 45%.
• In early 2004 the company owners and managers started to pursue a new strategic plan to
expand the reactor capacity, improve the working environment, and to implement
ecologically suitable solutions to the complex waste liquidation; while continually increasing
quality of services to customers, introducing modern technologies including biotechnology,
chiral synthesis.. All this activities created a unique position at the time of the entry of
Slovakia to the European Union.
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CONTENTS
• Business Model
• History of the Company and the Team
• Performance
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BUSINESS MODEL
• Literature research
• Experiments
• Production
• Building of internal
know-how
Production of fine
chemicals based
on accumulated
know-how
or new research
Catalogue Firms
End-users
(Intermediaries
reselling chemical
compounds)
• Pharmaceutical
companies
• Food industry
• Producers of
perfumes
• Agricultural
• Crop protection
• University
research centers
• Others
Examples: • Active pharmaceutical
ingredient for early stage of
drug discovery
• Pheromones
• Food additives
• Aromatics
• Research chemicals
TAU-CHEM produces fine chemicals in small quantities, which are highly specific and used
as active ingredients in pharmaceutical, food, agricultural, and other industries. Production
is based either on TAU-CHEM’s existing knowledge or as a custom synthesis, i.e. specific
research and production for a customer. Both types of products can be order directly by
end-user or through an intermediary (a catalogue firm).
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PRODUCTS
Type of chemical reactions:
Compounds:
• Epoxidation including Sharples and
Jacobsen methodology
• Reduction up to 120 bars pressure
• Organometalic reaction
• Low temperature reaction down to
-90º C
• Nitration
• Halogenation
• Chloromethylation
• Homogeny and heterogenic
catalytic process
• Arylation
• Others
• Epoxides
• Heterocycles
• Furans and Benzofurans
• Imidazoles
• Pyridines
• Thiophenes
• Others
• Aromatics
• Benzenes
• Various Chiral compounds
Custom synthesis:
• Target molecule required by a customer
synthesised in the required quantity.
TAU-CHEM has developed ability to perform a wide range of
complex and challenging chemical reactions. Over the years it
has acquired a vast know-how resulting into ability to produce
more than 400 hundred compounds. In addition the company
regularly performs customer specific research a produces new
compounds (custom synthesis).
For detailed
list of chemical
compounds
Product list
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TAU-CHEM’s ability
TAU-CHEM’s potential
ability
MARKET AND COMPETITION
CONCEPTUAL
Product life-cycle
• There is a global market in fine
chemicals in every stage of product
life cycle
• Factors influencing growth of the
early stage segments:
Margin
[%]
• Catalogue firms increase their
offer by ~7% every year
• Increasing outsourcing in early
stages of new development of
new pharmaceuticals
mg – 10s kg
Discovery and
description in
literature
The competition
consists of a number
of small firms,
research facilities,
and university
laboratories
10s kg – 100s kg
100s kg – tons
Volume of production [units]
Production over
several 10s kg is
done in Asia at low
costs
Production in large
quantities is
realized in product
specific facilities
• Technological research in
connection of production of
generics
• There is a number of players in
Slovakia supporting the education
and the industry. Other Slovak
players:
• CMS s.r.o
• VUP Prievidza
• VUCHT
• Synkola
• Georganics
• Acros
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COMPETITIVE ADVANTAGE
• Large codified know-how readily applicable by a strong team
with combined more than 100 years of experience
• Flexibility and ability to pick profitable products in demand and to
produce wide range of products form few milligrams up to
hundreds of kilograms (products in early phase of their life
cycle: after discovery and description in the literature, however
before mass production)
• Long operational experience resulting to high revenues per
person i.e., ability of fewer number of PhDs to lead complex
synthesis “managing less experienced” synthetics using codified
knowledge (database of products)
• High quality manufacturing
• Attractive economics with high gross margins
• Established player on the market with credibility with main global
catalogue firms such as Acros, Lancaster, Aldrich ,and with some
of the most important end-users such as Novartis, Merck, Krka,
etc. Established relationship with agents in China, Japan, South
Korea.
• TAU-CHEM is very
well positioned on
an attractive niche
market of early life
cycle of organic
chemical
compounds (1s mg
– 100s kg).
• It can exploit this
position
exceptionally well
due to its
accumulated
knowledge and
operational
experience.
• Uniquely wide range of licenses and permissions: manipulation
and manufacturing of drug precursors; manipulation, transport,
storage of the waste; etc.
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EQUIPMENT
Vessels:
Analytical Control Instrumentation
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• NMR
• GC Varian 350
• GCMS Varian Saturn 2100T
• HPLC Varian 9012/9065
• Titration unit
• Melting point unit
• CHN elementary analysis
• UV and IR specrophotometry (FTIR)
• Mass spectrometry (GC/MS)
Stills in glass 100 l and 25 l
Rotatory film evaporator
Molecular Distillation Apparatus (20 Pa)
200 l stainless reactor
250 l glass lined reactor
Büchi high pressure reactor
100 l Jahndorf high pressure reactor
Rotatory evaporator Heidolph Laborota 20
TAU-CHEM currently possess fully equipped laboratories for research, lab-scale,
kilo-scale and pilot-plant production. Fully equipped quality control laboratories
ensure that the manufacture complies at all stages with the agreed customer
standards. A certificate of analysis and safety data sheet accompanies shipments.
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FACILITIES
1995 – 2008
Future
• Since 1995, TAU-CHEM has rented
• TAU-CHEM has acquired a former chemical
premises within industrial complex of
Istrochem, a.s.
• The complex was established at the end of
19th century by Alfred Nobel group, and
Alfred Nobel personally supervised the rise
up. During the 1970s, about 8,000 were
employed within the complex in a large
chemical company.
laboratory building in the same complex in
late 2003
• After finishing a major reconstruction, the
building should serve as main premises of the
company from late 2008
• Currently the complex serves as an
industrial park with a number of small
companies
• TAU-CHEM also acquired adjacent
incinerator facility, another smaller building,
and storage space
TAU-CHEM has acquired significant fixed assets which will help it to move from
rented facility, to own premises equipped with top technology and thereby
significantly contribute to performance improvement.
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CONTENTS
• Business Model
• History of the Company and the Team
• Performance
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HISTORY OF THE COMPANY
• 1994
• Established by four university schoolfellows: Dr. Marian Ježek, Dipl.
• 1995
• Start of production in November, 1995
• 1998
• Dipl. Ing. Juraj Ďuris left company
• Dr. Marian Ježek died in car accident
• 2001
• Acquisition of analytical laboratory GC/MS and HPLC
• Start of a pilot plant
• 2003
• Revenues over EUR 1 million
• New building acquired
• 2004
• Successful chiral synthesis such as HKR and Sharpless epoxidation
• Recession on the global market with chemicals in combination with
Ing. Juraj Ďuris, Dr. Jan Hrabovsky, and Dr. Vladimir Žvak
investment commitments led to surge of short-term financing
• 2007
• Close cooperation with company Axxence Aromatic GmbH. to
manufacture the fragrances and the flavors
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THE TEAM – KEY MEMBERS
Dr. Zvak (CEO, co-owner)
• 1975 (graduation)
• 1980 (PhD)
• 1985 University Paris IX 6 months post doc
stage,
• 25 years academic research (7 patents, 18
publications, teaching at Slovak Technical
University)
• 1995 Tau-chem Ltd.
Dipl. Ing. Rybár (marketing and sales director
• 1974 (graduation)
• 1985 two years Iraq, built-up rafinerry
• 1990-2001 director and co-owner Microchem
• 2007 Tau-chem Ltd
Prof. Povazanec (Advisor)
• Professor at Slovak Technical University
• Transfer of know-how from academia to
production
• Experience Many years of experience in
cooperation with industry
Dipl. Ing. Skrovina (Head of laboratory)
• 1982 (graduation)
• 1990 -2001 Microchem technical director
• 2007 Tau-chem Ltd.
Dr. Cepec (Quality Control Manager)
• 1978 (graduation)
• 1983 (PhD)
• Research and analytical work at Wood
protection institute
• 1999 Tau-chem Ltd.
Dr. Fiedler (Head of Laboratory)
• 1977 graduation
• 1979 Dr.
• 1977 Research Institud of Chemical Technology
• 2005 Award of J. Bahýľ, the best invention of the
year
• More than 10 patents
• 2006 Tau-chem Ltd.
Dipl Ing. Kovac (Head of Laboratory)
• 1995 (graduation)
• 2000 (post gradual study)
• 2000 Tau-chem Ltd.
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CONTENTS
• Business Model
• History of the Company and the Team
• Performance
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PROFIT AND LOSS STATEMENT
SKK, thousands
Profit and Loss statement
2002
2003
2004
2005
2006
25867
38289
16426
27477
31112
COGS
12227
15876
10817
12456
12002
Gross margin
13640
22413
5609
15021
19110
Personnel expenses
6319
9012
6933
6726
7733
EBIT
6228
10324
674
4979
9041
Net income
3616
7232
525
3169
6351
Revenues
(Turnover)
• TAU-CHEM grew fast in the period 2001 – 2003 with very attractive margins and profitability.
• In 2004, the recession on the global market together with focus of the management on previous
investment commitments caused revenues temporarily fall dawn in 2004.
• Revenues are coming back on track already in 2005, despite the required level of management focus on
new investment (new buildings, and incinerator facility).
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