Vita Life Sciences Limited · ASX:VLS
Vita Life Sciences — Shareholder Meeting (May 2005)
31 slides from Vita Life Sciences's shareholder meeting presentation, May 31, 2005
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING 31 May 2005
Slide 2: Agenda
AGENDA 1. Welcome 2. Reports: • Chairman’s Report • Executive Report 3. Ordinary Business: • Receiving the financial statements and reports of the directors and auditors – Resolution 1 • Election of Directors ¾ John Sharman – Resolution 2 4. Question Time 5. Close 1
Slide 3: Consolidated Balance Sheet as at 31st December 2004
VITA LIFE SCIENCES Consolidated Balance Sheet as at 31st December 2004 (AUD $ ) 2004 2003 C u rre n t A s s e t s C a s h a s s e ts 966,863 679,696 R e c e iva ble s 3,154,435 2,283,795 Inve nto rie s 4,136,405 5,693,160 Othe r 1,431,285 844,658 T o t a l C u rre n t A s s e t s 9 ,6 8 8 ,9 8 8 9 ,
Slide 4: Underlying Operating Performance 2004
VITA LIFE SCIENCES Underlying Operating Performance 2004 (AUD $ Million) 2004 2003 2002 Sales 25.1 23.2 14.1 Operating expenses (20.9) (22.7) (29.6) Legal costs (1.3) (1.3) (2.8) Provisions & write offs (1.0) (8.5) (9.7) Non operating expenses* (3.7) (8.1) (1.8) Profit before tax (1.8) (17.4) (29.8)
Slide 5: Summary of Cash Flow
VITA LIFE SCIENCES Summary of Cash Flow 2004 Cash Movement AUD$ Million Cash Flow from Operations Inwards 22.7 Outwards (23.3) Cash Flow from Financing Inwards 1.5 Outwards (1.1) Cash Flow from Investing Inwards 1.8 Outwards (0.9) Movement in 2004 Cash Position 0.7 4
Slide 6: Details of Cash Flow
VITA LIFE SCIENCES Details of Cash Flow 2004 Cash Movement - details AUD$ Million Cash Flow from Financing Additional Borrowing 0.6 Payments to Finance leases (0.2) 0.4 Cash Flow from Investing Vital Biotech investment into VitaHealth 1.8 Investment in Chinese JV (0.4) Residual payments for Vimed (0
Slide 7: Profit and Loss 2004
VITA LIFE SCIENCES Profit and Loss 2004 (AUD$ Million) Vita Medical VitaHealth Corporate VLS Gross Sales 8.7 15.0 1.4 25.1 Audited PBT 2.8 (2.1) (2.7) (2.0) 6
Slide 8: Underlying Performance 2004
VITA MEDICAL Underlying Performance 2004 (AUD$ Million) 2003 2004 2005 Forecast Sales 7.7 8.7 9.4 PBIT 1.8 2.8 3.2 PAS Unit Sales Generator Sales & Placements 4000 90 3500 80 3000 70 2500 60 50 2000 40 1500 30 1000 20 500 10 0 0 2003 2004 2005 Forecast 2003 2004 2005 Forecast 7
Slide 9: Underlying Performance 2004
VITA MEDICAL Underlying Performance 2004 (AUD $ Million) Sales Gross Gross Profit 2003 Profit 2004 Europe 6.0 4.1 3.9 Asia 0.4 0.3 0.2 Australia 1.6 1.3 1.4 Canada 0.7 0.5 0 8.7 6.2 5.5 Less: Normal Operating Expenses (3.4) (3.7) Contribution before write off’s 2.8 1.8 Less: Abnormal write offs 0 (4
Slide 10: Underlying Performance 2004
VITA MEDICAL Underlying Performance 2004 • Revenue is up • Costs are down • Inventory is lower • Growth in new markets • Outlook is positive 9
Slide 11: New Drug Application
TECHNEGAS New Drug Application • We have commenced negotiations with our US advisors to re- commence the programme during the second half of this year. 10
Slide 12: Underlying Performance 2004 (VitaHealth)
VitaHealth Underlying Performance 2004 • Overall result an improvement on 2003. • Sales slightly down on last year. • Operating costs lower than 2004. • Margins remain under pressure. • VitaHealth continues to face challenges: – New Managing Director – Head Office relocated to Malaysia 11
Slide 13: Underlying Performance 2004 (VitaHealth)
VitaHealth Underlying Performance 2004 – Cost savings expected to be delivered in full in 2005. – Focus on: • rebuilding our brand • Introducing new products • Opening new markets 12
Slide 14: Legal Update
VITA LIFE SCIENCES Legal Update • The company won its case against Pang Seng Meng. • The company successfully settled its claim against Ace Insurance. • The company continues to defend its position re Nordion – malicious and false emails have caused lengthy delays. • The company continues to defend
Slide 15: Summary
VITA LIFE SCIENCES Summary • Vita Medical continues to show improvement. • VitaHealth continues to recover. • We are negotiating to recommence NDA. • We are negotiating a possible deal with Vita Medical. • We intend to approach Noteholders with a revised proposal during the third quarter of 2005. •
Slide 16: 15
15
Slide 17: Commentary on FY2004 Results
VitaHealth Commentary on FY2004 Results 1. Competition intensified during this year – new distribution channels making inroads to traditional brands, suppliers increased prices. 2. Margins under pressure in Asian markets. 3. There was a lack of new products innovation in our business during 2004. 4.
Slide 18: Market Conditions, Challenges and Actions in FY2004
VitaHealth Market Conditions, Challenges and Actions in FY2004 1. Post PAN, market generally more price sensitive particularly for Singapore and Malaysia. 2. Major chains like Guardian and Watsons are demanding increasing support from suppliers. We are looking for ways to diversify our distribution
Slide 19: Market Conditions, Challenges and Actions in FY2004
VitaHealth Market Conditions, Challenges and Actions in FY2004 6. We continue to experience reluctance of consumers to purchase Pan affected product. 7. “Sluggish” market condition caused many players in Singapore and Malaysia to resort to aggressive free banded packs and price under- cutting. 8. We
Slide 20: Market Conditions, Challenges and Actions in FY2004
VitaHealth Market Conditions, Challenges and Actions in FY2004 9. There was consolidation in the Singapore and Malaysian markets - several brands ceased to exist or were acquired, i.e. Healthy America, Healthlabs, Herb Valley and Rebound, to name just a few. 10. Cambert acquired and took control of
Slide 21: Market Conditions in 2005
VitaHealth Market Conditions in 2005 1. Australia - market confidence and sentiments have returned close to pre- Pan levels. 2. Singapore and Malaysia continue to be driven by price competition. 3. New distribution channels continue to eat into traditional distribution channel market share. 4. There
Slide 22: Vita Medical
VITA MEDICAL
Slide 23: Year end 2004
VITA MEDICAL Year end 2004 Year ended December 2004: - Sales $ 8.70 million (+ 13.6% over 2003) - PBIT $ 2.77 million (31.7 % of sales) First quarter 2005: - March 2005 - Total Sales 7.7 % ahead of budget - Inventory at same level versus year end 2004 “This business is PROFITABLE and is growing” 22
Slide 24: 2004 Sales by Region - Globally
VITA MEDICAL 2004 Sales by Region - Globally Generators PAS Australia/NZ 9 (27 in 2003) - 6.0% (796 Boxes) Europe 32 (46 in 2003) + 2.5% (2,166 Boxes) Asia 9 (11 in 2003) + 76% (95 Boxes) Canada 13 (11 in 2003) + 250% (24 now installed) (161 Boxes) 23
Slide 25: Growth Plans/Actions 2005
VITA MEDICAL Growth Plans/Actions 2005 Australia/NZ Increase Market Share – stabilise drift to CTPA through promotion of SPECT imaging of lungs Europe/Arab States Stimulate market – Reorganise poor performers Promote further growth in Arab regions Asia Look to new markets – India/ Sri Lanka China/ K
Slide 26: Future Plans
VITA MEDICAL Future Plans 1. New Technegas - Resale and new markets 25
Slide 27: Future Plans
VITA MEDICAL Future Plans 2. Cyclotrons/PET/FDG supply: Asia/Pacific - Exclusive Distributorship for THALES Medium Energy Cyclotron - Sales Agency for Pulsar ACCSYS PET Isotope Production System 26
Slide 28: Future Plans
VITA MEDICAL Future Plans 3. Radionuclide Therapy - New compounds/Compounding Service 4. Technegas USA - Distribution of Product - USA Reimbursement for product 27
Slide 29: Key Points
VITA MEDICAL Key Points • Vita Medical continues to be a very profitable business. • NEW Technegas to be released in 2005. • Canada and the Arab States are the big growth centres. • Technegas USA is getting closer. • Cyclotrons and FDG supply to become part of product portfolio. 28
Slide 30: Question Time
4 VITA LIFE SCIENCES Question Time 29
Slide 31: Thank You
| VITA LIFE SCIENCES Thank You