Nuchev Pty Ltd · ASX:NUC
Nuchev Pty — Investor Presentation (July 2020)
30 slides from Nuchev Pty's investor presentation, Jul 29, 2020
Slide 1: Equity Raising to fund growth
Equity Raising to fund growth Nuchev Limited July 2020 1
Slide 2: Disclaimer
Disclaimer This investor presentation (Presentation) is dated 29 July 2020 and has been prepared by Nuchev Limited (ACN 163 225 090) (Nuchev). By attending an investor presentation or briefing, or accepting, accessing or reviewing this Presentation, you acknowledge and agree to the terms set out bel
Slide 3: Disclaimer
Disclaimer Investors should be aware that certain financial measures included in this Presentation are ‘non-IFRS financial information’ under ASIC Regulatory Guide 230: ‘Disclosing non-IFRS financial information’ published by ASIC and also ‘non-GAAP financial measures’ within the meaning of Regulati
Slide 4: Capital raising overview
Capital raising overview Nuchev Limited ( ‘Nuchev’, or the ‘Company’) is announcing a $12.0m accelerated non-renounceable entitlement offer (‘Entitlement Offer’) and a $3.0m institutional placement (‘Placement’) to fund working capital and provide balance sheet flexibility for growth (collectively
Slide 5: Trading update and outlook
Trading update and outlook FY20 volume of 568 MT and net revenue of $17.8m slightly below prospectus expectations, achieving 99% of prospectus forecasts o Volumes and revenue growth of 108% and 98% respectively from FY19 to FY20 Q4 FY20 volumes and net revenue increased by 28% and 25% respective
Slide 6: Quarterly financial and business highlights
Quarterly financial and business highlights 568.1 Strong growth and brand performance Volumes (MT or metric tonnes) FY20 volume growth of 108% over FY19, equating to 99% of Prospectus forecast for volume sales FY20 net revenue growth of 98% over FY19, equating to 99% of Prospectus forecast for n
Slide 7: Business strengths
Business strengths Significant global market opportunity Premium, differentiated product, Oli6® is a premium, trusted, supported by science Australian made and owned brand Goat milk based infant formula (GIF) is a rapidly growing segment of the infant formula (IF) market GIF offers natural healt
Slide 8: Details of the Offer
Details of the Offer 8 8
Slide 9: Details of the Offer
Details of the Offer 1 for 8.75 accelerated non-renounceable entitlement offer and institutional placement (collectively the “Offer”) Issue of approximately 6.4 million New Shares (equivalent to approximately 14.3% of total Nuchev shares outstanding) Offer to raise $15.0m, comprising: Offer st
Slide 10: Offer timetable
Offer timetable Event Date1 Trading halt, Institutional Entitlement Offer and Placement opens Wednesday, 29 July 2020 Institutional Entitlement Offer and Placement closes 3pm, Wednesday, 29 July 2020 Announcement of results of Institutional Entitlement Offer and Placement Thursday, 30 July 2020 Trad
Slide 11: Key risks
Key risks 11
Slide 12: Risks
Risks Nuchev’s business may be adversely impacted by COVID-19 Conflicting scientific research or other negative information about the potential health benefits of goat milk may be Nuchev is currently monitoring the actual and potential impact of COVID-19 on the overall business of Nuchev and the pub
Slide 13: Risks
Risks Nuchev’s reliance on third party suppliers and service providers exposes it to risks associated with those third Domestic or foreign regulatory changes may adversely impact Nuchev’s operations parties Nuchev must comply with a range of laws and regulations in Australia and in foreign jurisdict
Slide 14: Risks
Risks Nuchev may face increased competition Climate, environmental or biosecurity events may adversely impact Nuchev’s supply chain Nuchev operates in the highly competitive fast-moving consumer goods industry and is subject to existing and growing The quantity and quality of Nuchev’s products may b
Slide 15: Risks
Risks Nuchev’s proprietary information may be compromised or lost Risks associated with an investment in shares There is a risk that Nuchev’s proprietary information (including its base and finished goods specifications and There are general risks associated with investments in equity capital such a
Slide 16: Risks
Risks Changes in taxation laws and their interpretation Changes in tax law or changes in the way tax laws are interpreted may impact the level of tax that Nuchev is required to pay or collect, shareholder returns, the level of dividend imputation or franking or the tax treatment of a shareholder’s i
Slide 17: International offer restrictions
International offer restrictions 17
Slide 18: International offer restrictions
International offer restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of Nuchev in any jurisdiction in which it Singapore would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be This document and
Slide 19: Underwriting agreement summary
Underwriting agreement summary 19
Slide 20: Underwriting agreement summary
Underwriting agreement summary h) Nuchev or any of its directors or officers engages in any fraudulent, misleading or deceptive conduct or activity in Wilsons Corporate Finance Limited (Lead Manager) is acting as sole lead manager, broker and bookrunner of the Offer connection with the Offer; and un
Slide 21: Underwriting agreement summary
Underwriting agreement summary n) ASIC makes a determination under subsection 708A(2) of the Corporations Act or subsection 708AA(3) of the x) the due diligence report of the due diligence committee in relation to the Offer or the information provided by or Corporations Act; on behalf of Nuchev to t
Slide 22: Underwriting agreement summary
Underwriting agreement summary ff) any of the following occurs: If the Lead Manger terminates its obligations under the Underwriting Agreement, the Lead Manager will not be obliged 1) a general moratorium on commercial banking activities in Australia, New Zealand, the United States, to perform any o
Slide 23: Appendix
Appendix 23
Slide 24: Strategy – key pillars
Strategy – 3 key pillars Brand positioning Product quality and Multi-channel sales & awareness nutritional development strategy and channel support Invest in building brand equity amongst Laser focus on quality of product, through Leveraging existing distributor relationships channel partners
Slide 25: Nuchev's Oli6® GIF and FCMP range
Nuchev’s Oli6® GIF and FCMP range The product range covers from 0 – 7 and for adults Stage 1 formula Stage 2 formula Stage 3 formula Stage 4 formula Goat Milk Powder (0-6 months) (6-12 months) (1-3 years) (3-7 years) (adult) 25
Slide 26: Oli6's value proposition is differentiated and compelling to end consumers
Oli6’s value proposition is differentiated and compelling to end consumers Health benefits Oli6® offers credible, differentiated health benefits supported by research Scientific laboratory research on the health benefits associated with oligosaccharides in Oli6® 1 Peer-to-peer Rapidly growing
Slide 27: Capital light business model focuses on quality, security and scalability
Capital light business model focuses on quality, security and scalability Supply chain (primary strategic partners) Distribution chain Imported goat Blending, canning and ingredient sourcing packaging End consumers Base powder Distribution via multiple manufacturing sales channels Supply redundancy
Slide 28: Flexible supply chain delivers competitive advantage
Flexible supply chain delivers competitive advantage Supply Chain 1 2 3 Highest quality materials Flexibility Quality control Direct goat ingredient supply from the Goat materials imported in stable powder Stage gated quality control and stringent Netherlands, the centre of excellence for goat
Slide 29: Multiple sales channels ensures efficient routes to market and reduces risk
Multiple sales channels ensures efficient routes to market and reduces risk Australian-specification China-specification 1. Australian retailers 2. CBEC 3. Other markets 4. Offline retail in China Subject to SAMR registration, potential upside Year 1 volumes based on contracts in place Sub-distribut
Slide 30: Oli6 is an attractive value proposition to distribution channel partners
Oli6 is an attractive value proposition to distribution channel partners Distribution chain 1 GIF is a premium and 2 Growing consumer awareness is 3 Oli6®is a premium, trusted, differentiated IF product driving end consumer demand Australian-made and owned brand Oli6® has differentiated health ben