Nuchev Pty Ltd · ASX:NUC
Nuchev Pty — FY2020 Earnings Presentation
23 slides from Nuchev Pty's earnings presentation, Aug 27, 2020
Slide 1: Nuchev Limited FY20 Full Year Results
Nuchev Limited FY20 Full Year Results August 2020 1
Slide 2: Food for a better life
Food for a better life 2 2
Slide 3: Today's presenters and agenda
Today’s presenters Agenda Business strengths 4 Financial and business highlights 5 Financial Performance 6 Ben Dingle CEO, Executive Director and Founder Outlook 9 Strategy and Business Positioning 11 Appendix 19 Chantelle Pritchard CFO and Company Secretary 3
Slide 4: 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 5: FY20 Financial and Business Highlights
FY20 Financial and Business Highlights Volumes (Metric Tonnes) Full year revenue and volume almost double prior year ▪ FY20 volume growth of 108% over FY19, equating to 99% of Prospectus forecast 568.1 573.2 ▪ FY20 net revenue growth of 98% over FY19, equating to 99% of Prospectus forecast ▪ Strong
Slide 6: FY20 Full Year Financial Performance
FY20 Full Year Financial Performance 6
Slide 7: Key financial and operational metrics
Key financial and operational metrics FY20 Commentary FY19 Actual FY20 Actual % Change Prospectus ▪ Continued strong Volume and Revenue performance for the 12 months ending June forecast 2020 with growth of 108% and 98% respectively from FY19 to FY20 Volume (MT)1 273.2 568.1 108% 573.2 － Sales momen
Slide 8: Operating environment
Operating environment Strong performance in FY20, however, sales have recently been impacted by challenges in the current environment Australian-specification ▪ These factors include: ‒ Pantry filling / panic buying relating to COVID-19 unwinding, the effect of which is expected to continue into Q1
Slide 9: Outlook
Outlook 9
Slide 10: FY21 Outlook
FY21 Outlook ▪ Expect material revenue and volume growth in FY21, particularly in key CBEC channels, however rate of growth is expected to moderate relative to FY20 ▪ Trading conditions remain uncertain and volatile due to the economic impacts of COVID-19 and the current global trade challenges ▪ Tr
Slide 11: Strategy & Business Positioning
Strategy & Business Positioning 11
Slide 12: Strategy – 3 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 13: 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) 13
Slide 14: 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 15: 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 16: 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 17: 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
Slide 18: Slide 18
Slide 19: Appendix
Appendix 19
Slide 20: Statutory profit and loss (FY20 and FY19)
Statutory profit and loss (FY20 and FY19) Statutory Results for the 12 months ending: Commentary % of % of FY20 % of $ millions Notes FY20 Revenue FY19 Revenue Prospectus Revenue ▪ FY20 Distribution related expenses 6% of Revenue Revenue 1 17.8 9.5 18.0 (FY19: 6%; full year Prospectus 7%) Cost of sa
Slide 21: Statutory balance sheet (30/6/20 and 30/06/19)
Statutory balance sheet (30/6/20 and 30/06/19) Consolidated statement of financial position as at: Commentary $ millions 30 June 2020 30 June 2019 ▪ Nuchev has $9.4 million cash as at 30 June 2020 Cash and short-term deposits 9.4 10.3 Trade and other receivables 3.3 1.1 ▪ Working capital increased t
Slide 22: Reconciliation from statutory NPAT to pro forma NPAT
Reconciliation from statutory NPAT to pro forma NPAT Pro Forma adjustments from Statutory NPAT to Pro forma NPAT Commentary Pro forma adjustments include: ▪ Additional estimated public company costs that Notes FY20 would have been incurred Statutory NPAT (10.9) ▪ Removal of IPO costs, expensed throu
Slide 23: Disclaimer
Disclaimer This presentation is provided by Nuchev Limited (ACN 163 225 090) (Nuchev) to provide summary information about Nuchev and its respective subsidiaries (together, the Group). Statements in this presentation are made as at the date of the presentation and the information in this presentatio