Vita Life Sciences Limited · ASX:VLS

Vita Life Sciences — H1 2013 Earnings Presentation

17 slides from Vita Life Sciences's earnings presentation, Aug 26, 2013

1. Slide 1: Results Presentation – Half Year ended 30 June 2013

   Vita Life Sciences Ltd Results Presentation Half Year ended 30 June 2013 herbscfgold’ Viral fe VitaScienc Dedicated fo your health Enriching Lives .Since 1947 Vi 26 August 2013

2. Slide 2: Disclaimer

   This document has been prepared by Vita Life Sciences Limited (Vita Life) and comprises written material/slides for a presentation concerning Vita Life. The presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dis

3. Slide 3: Pharmaceutical and healthcare Over-The-Counter business

    Pharmaceutical and healthcare Over-The-Counter business  Wide range of supplements, vitamins, minerals, meal replacement, sports nutrition and herbal care  Branded under:  “Herbs of Gold” throughout Australia  “VitaHealth” throughout Asia including Malaysia  “VitaLife” Multi-Level-Marketing (

4. Slide 4: Established Business Units

    Established E t bli h d B Business i U Units: it Australia, Malaysia (excluding MLM) and Singapore  New Business Units (NBU): Thailand, China, Vietnam, Indonesia and MLM in Malaysia  Vita Health’s own office in Indonesia currentlyy being g established, with focus on product registration for comm

5. Slide 5: Half year ended 30 June 2013

   H lf year ended Half d d 30 June J 2013 2012 % Ch Change A $'m A $'m Revenue 17.08 14.41 18.5% EBITDA 2.63 1.22 115.6% Profit Before Tax 2.54 1.10 130.9% Profit After Tax 2.15 0.99 117.2% EPS (Diluted - cents/share) 3.79 1.72 120.3% Dividend (cents/share) 1.00 0.50 100% 4

6. Slide 6: Revenue – $'m

   Revenue‐$'m  Group sales grew in total by 18.5% 18.00 against that reported to June 2012. 16.00 14.00 12.00  Individual Business Units sales growth: 10.00  Australia 4.6% (HY2012: 29.8%) 8 00 8.00  Malaysia Malaysia* 26.2% 26 2% (HY2012: 22 22.2%) 2%) 6.00  Singapore 29.7% (HY2012: 14.4%) 4.00

7. Slide 7: Revenue – Australia

   Revenue‐$'m 8.00  3 year HY CAGR CAGR: 15 15.3% 3% 7.00  2013 half year increase 4.6% 6.00 (HY2012: 29 29.8%) 8%) 5.00  Lower sales growth due to tightening of customers credit and other trading 4.00 terms 3.00  Australian health food channel sales 2 00 2.00 growing at 5 5-7%pa. 7%pa Competitive

8. Slide 8: Revenue – Malaysia

   Revenue‐$'m 6.00  3 year HY CAGR: 20.8% 5.00  2013 half year increase 26.2% (HY2012: 22.2%) 4.00  Strong customer relationships, loyalty and brand awareness driving 3.00 sales 2 00 2.00  Competitive expanding market  Vita Health premium product 1.00 positioning makes it well placed to continue

9. Slide 9: Revenue – Singapore

   Revenue‐$'m 3.00  3 year HY CAGR: 14.5% 2.50  2013 half year increase 29.7% (HY2012: 14.4%) 2.00  Increased sales due to reorganisation of marketing/sales 1.50 team in 2012 1 00 1.00  Competitive p moderately y expanding p g market 0.50  Vita Health premium product positioning iti i makesk it w

10. Slide 10: Revenue – New Business Units

    Revenue‐$'m Revenue $m  3 year HY CAGR: 51.8% 2.50  2013 half year increase 41.9% (HY2012: 52.4%) 2.00  Lower L growth th d due tto titightening ht i off customer credit and other trading terms 1.50  Thailand sales increased by 35.4% (HY2012: 67.8%) 1.00  China’s sales increased by 51.4% ((HY20

11. Slide 11: Sales mix: Australia and Asian business units

    HY 2013 NBU 13.6% Australia  Total Group sales increased from $9.9m to Singapore 16.0% 40.5% $17.1m over 3 years  Whilst Australia sales have continued to grow, Asian sales have grown at a faster rate, increasing their contribution of Group Malaysia revenue to 59.5% in 2013 (HY2010: 54.3%) OTC 29.

12. Slide 12: Group debt-free with strong cash balance

     Group p remains debt-free,, with cash balance of $7.6m (2012: $5.0m)  Cash and cash equivalents make up 53.2% of net assets (2012: 44.2%)  Increased investment in inventory of $0.7m to cater for increase in sales sales, SKU’s SKU s and geographic areas  New pperformance systems y in place to ma

13. Slide 13: Cash Flow ($ m)

    Cash Flow ($ m) 2013 2012 Receipts from customers 18.72 15.03 Payments to suppliers and employees (16 01) (16.01) (14 00) (14.00) Gross operating cash flow 2.71 1.03 EBITDA 2.63 1.22 Ratio of gross operating cash flow to EBITDA 103 0% 103.0% 84 4% 84.4% Net interest received (paid) (0.01) 0.02 Incom

14. Slide 14: Interim dividend declared

     Interim I t i dividend di id d d declared l d off 1 1.0 0 centt per share h (f (franked k d tto 41%) ffor year ending 31 December 2013.  Due to prior year tax losses carried forward of approximately $9.0m, no tax is being paid in Australia and franking credits are fully utilised with the payment

15. Slide 15: Outlook: sales growth and EBIT margin forecast

     First half sales growth expected to continue at a similar rate in the second half. Barring unforeseen circumstances, Directors forecast full year sales growth of 14% – 16% against that reported to Dec 2012  The Th impact i t off higher hi h sales l ini 2013 ttranslated l t d iinto t an iimproved

16. Slide 16: Group footprint in 7 countries, 6 in Asia

     Group’s footprint in 7 countries, 6 of which are in Asia. Group is well placed to ride on the rapid emergence of a middle class that is health conscious with increasing discretionary spending power.  Australia: Population of 22m; Approximately 7,000 pharmacies and 1,200 health food stores plus gr

17. Slide 17: Contact Details

    Contact Details Telephone: p +61 3 9828 0500 Website: www.vitalifesciences.com.au Email: enquiries@vitalifesciences.com.au Head Office: Suite 650, 1 Queens Road, Melbourne, VIC 3004 16

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