Jamieson Wellness, Inc. · TSX:JWEL
Jamieson Wellness — Investor Presentation (May 2018)
25 slides from Jamieson Wellness's investor presentation, May 2018
Slide 1: Investor Presentation May 2018
INVESTOR PRESENTATION May 2018 1
Slide 2: Disclosures
Disclosures FORWARD-LOOKING INFORMATION This presentation contains “forward-looking information” within the meaning of applicable securities laws in Canada. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financ
Slide 3: Our Vision, Mission and Values
Our Vision, Mission and Values OUR VISION OUR MISSION OUR VALUES To improve the world’s Grow our trusted brands based on Integrity health and wellness. quality and innovation. Transparency Over time, combine Teamwork organic brand growth and Achieving Results future acquisitions to become Entreprene
Slide 4: Company Overview
Company Overview Iconic vitamin, mineral and supplement (“VMS”) company with global appeal founded in 1922 Who We Are • Clear market leader in Canadian VMS with 25% share at Food, Drug & Mass stores(1) • #1 consumer health brand in Canada(2) • Leading innovator of new products • Global consumer heal
Slide 5: Company Overview: Two Segments
Company Overview We Operate in Two Segments 1. Branded Business (79% of 2017 Revenue, 86% of 2017 Adjusted EBITDA) offers diversified range of premium branded products across multiple distribution channels 2. Strategic Partners Business (21% of 2017 Revenue, 14% of 2017 Adjusted EBITDA) are highly s
Slide 6: Jamieson Brands – Diversified Product Offering
Jamieson Brands – Diversified Product Offering Comprehensive line of premium branded, natural products sold in multiple distribution channels #1 in Women’s natural Market #1 in VMS(1) Leading premium Leading cutting edge Leading vegan alternative health-focused brand Positioning Iconic mainstream br
Slide 7: Company History
Company History Consistent history of revenue growth(1) 7 (1) 1987 to 2013 per historical financial statements (under Canadian Accounting Standards for Private Enterprises); 2014 to 2016 per audited IFRS statements and include impact of LVHS acquisition
Slide 8: Jamieson Wellness is a Compelling Investment Opportunity with a Strong Growth Story
Jamieson Wellness is a Compelling Investment Opportunity with a Strong Growth Story Investment Highlights Growth Opportunities • #1 market position in highly attractive VMS sector Leverage brand equity and product • Trusted, iconic brand built on a 95-year heritage 1 innovation to drive sales in exi
Slide 9: #1 Market Position in Highly Attractive VMS Sector
#1 Market Position in Highly Attractive VMS Sector Jamieson is the leading brand in the Canadian market #1 Market Share Nielsen(1) Euromonitor(2) Iconic VMS brand with an unrivaled leading position in the Canadian consumer 25.4% health market 20.7% • #1 consumer health brand across VMS with signific
Slide 10: Trusted, Iconic Brand Built on a 95 Year Heritage
Trusted, Iconic Brand Built on a 95 Year Heritage Powerful brand equity with unmatched brand awareness and loyalty #1 Brand Image Score1 Jamieson Commands Consumer Loyalty 1 Highest Total Brand Awareness vs Competitors 2 Highest Total Brand Image versus Competitors 46 58 3 Jamieson is the #1 Consume
Slide 11: Long-Standing Blue-Chip Customer Base
Long-Standing Blue-Chip Customer Base Diversified Across All Channels Jamieson Wellness products have an exceptionally strong presence in Canada (available in 10,000+ retail locations) GROCERY DRUG MASS / CLUB HFS and OTHER 11
Slide 12: Positive Demographic Trends Support Continued Growth in VMS and Sports Nutrition
Positive Demographic Trends Support Continued Growth in VMS and Sports Nutrition Global health and wellness mega trend supports strong organic growth Rising Disposable Income Consumer Access to Information Aging Population Focus on Prevention Focus on Healthy Living Rising Demand for Protein The Jam
Slide 13: Strong Track Record of Innovation Across a Broad Range of Categories
Strong Track Record of Innovation Across a Broad Range of Categories Jamieson has a dedicated innovation team with 150+ products in the pipeline for 2018 and beyond 2014 2015 2016 2017 Areas of Focus for 2018 and Beyond On the go / Convenience Acquired LVHS: Canada’s 2015 product launches Re
Slide 14: Scalable, Well-Invested Manufacturing Platform Exceeding Regulatory Standards
Scalable, Well-Invested Manufacturing Platform Exceeding Regulatory Standards Owned state-of-the-art manufacturing capabilities provide competitive advantage Dedication to Quality Unmatched, Proprietary Unmatched, Proprietary ● “360 Pure” is an industry Manufacturing Platform Manufacturing Platform
Slide 15: Strong Performance with Significant Free Cash Flow Generation
Strong Performance with Significant Free Cash Flow Generation Track record of robust financial performance (C$ millions) Strong Top-Line Momentum Strong Adjusted EBITDA Growth and Margin Solid Growth in Earnings from Operations Strong EBITDA Margins with Low Capex Requirements (1) 15
Slide 16: Experienced, Proven Management Team to Support Continued Growth
Experienced, Proven Management Team to Support Continued Growth Experienced and proven public markets management Total team Years of Name Title Joined Jamieson Previous Experience Experience President and Mark Hornick June 2014 25 Chief Executive Officer Chief Financial Officer Chris Snowden July 20
Slide 17: A Strong Growth Platform with Expansion Opportunities
A Strong Growth Platform with Expansion Opportunities International Market Opportunity • Fast growth international business, doubling sales over last 3 years Robust Incremental Upside • Strategy executed in over 40 countries • Market entry through leverage brand and quality, partnering with a strong
Slide 18: Jamieson is a Compelling Investment Opportunity with a Strong Growth Story
Jamieson is a Compelling Investment Opportunity with a Strong Growth Story Investment Highlights Growth Opportunities • #1 market position in highly attractive 1 Leverage brand equity and VMS sector product innovation to drive • Trusted, iconic brand built on a sales in existing and adjacent 95-year
Slide 19: Appendix
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Slide 20: Upside: Well Positioned for Future Success in China
Upside: Well Positioned for Future Success in China China is a US$17Bn market that has grown at a 9.9% CAGR from 2011 - 2015(1) Jamieson’s Products Resonate with “Target Import Market”(2) High Net Promoter Score(3) and Strong Brand Awareness(4) in China will Support Strategy 1 Strong consumer trends
Slide 21: Upside: Scalable, Proven M&A Platform
Upside: Scalable, Proven M&A Platform Disciplined Acquisition Focus Acquisition Case Studies • Strategy focused on pursuing acquisitions that can benefit from leveraging Jamieson’s strengths • Increased presence in higher-margin specialty retail channel • Sales and marketing • Founder remained with
Slide 22: 2018 Outlook
2018 Outlook Metric 2017A 2018 Target Range Growth Rate Total Revenue (millions) $301 $325 - $335 8.0% - 11.3% Adj. EBITDA (millions) $61 $67 - $69 9.8% - 13.1% Adj. EPS $0.70 $0.83 - $0.87 18.6% - 24.3% This outlook is based, in part, on the following: • Forecasted CAD/USD exchange rate of $1.25 •
Slide 23: Summary Consolidated Financial Information
Summary Consolidated Financial Information Fiscal Year Ended December 31, 2014 2015 2016 2017 Revenue $193.2 $230.9 $248.3 $300.6 Cost of sales 141.6 153.0 167.5 195.8 Selling, general and administrative expenses 36.9 45.9 44.8 53.6 Share-based compensation 4.1 6.5 4.9 6.3 Earnings from operations 1
Slide 24: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Fiscal Year Ended December 31, 2014 2015 2016 2017 Net income (loss) ($33.2) ($95.4) ($25.2) ($23.8) Provision for (recovery of) income taxes (3.2) 1.9 3.7 8.2 Interest expense and other financing costs 21.8 23.9 22.9 4.7 Depreciation of pro
Slide 25: Reconciliation of Net Income (loss) to Adjusted Net Income (loss)
Reconciliation of Net Income (loss) to Adjusted Net Income (loss) Fiscal Year Ended December 31, 2014 2015 2016 2017 Net income (loss) ($33.2) ($95.4) ($25.2) ($23.8) Preferred share accretion 15.0 93.4 30.4 28.8 Foreign exchange (gain) loss 0.0 (0.9) (0.2) 0.3 Termination benefits and related costs