Nuchev Pty Ltd · ASX:NUC
Nuchev Pty — Investor Presentation (May 2023)
31 slides from Nuchev Pty's investor presentation, May 16, 2023
Slide 1: Strategic Investment and Capital Raising Presentation
Nuchev Limited Strategic Investment and Capital Raising Presentation 16 May 2023
Slide 2: Nuchev company summary and growth trajectory
Nuchev company summary and growth trajectory Greg Kerr Chief Executive Officer
Slide 3: Overview
Overview Nuchev is a leading digestion and immunity specialist company H&S International Group Launching a Capital Raise Capital Raise supports Our focus is on driving (“H&S”) will partner with to optimise the H&S deal business transformation scale, group efficiency and Nuchev on a distribution whic
Slide 4: Our purpose
Our purpose Food for a better life We are committed to improving families’ lives DEMONSTRATED BY Leadership in premium digestion and immunity Backed by science Fuelled by consumer led innovation World class ingredients SUPPORTED THROUGH Premium nutrition Consumer endorsement Gold standard, Australia
Slide 5: Our growth strategy
Our growth strategy EXPANDING OUR PURPOSE Leading in premium digestion and immunity nutritional products WHAT WE DELIVER TODAY Brand Supply chain Distribution Product builders excellence network ASX listed innovation DRIVERS TO SCALE Function Ingredients Type Value Chain Consumer Region Goat Brand I
Slide 6: H&S distribution agreement and strategic investment
H&S distribution agreement and strategic investment Mick Myers Chief Financial Officer
Slide 7: H&S distribution agreement and strategic investment
H&S distribution agreement and strategic investment Overview ▪ Three-year agreement between H&S International Group (H&S) and Nuchev, for H&S to purchase and distribute a minimum of $20m of Nuchev’s product in China and SEA1, with an aligned strategy for Nuchev to rapidly develop and launch a bovine
Slide 8: H&S distribution agreement and capital raise
H&S distribution agreement and capital raise Key Terms Term ▪ Three (3) years from commencement (1 July 2023) ▪ All channels in China and Vietnam (excluding Nuchev’s Flag-ship Store “FSS”) Exclusive geographies ▪ Option for other South-East Asian countries (right of first refusal) Revenue commitment
Slide 9: H&S company overview
H&S company overview Since 2009, H&S has built a comprehensive distribution network (off-line and online), forging the path to become one of Australia’s largest local and export wholesalers for infant formula, vitamins and supplements, skincare and personal care into China, Hong Kong, Macau, Vietnam
Slide 10: H&S Group
H&S Group Three key business divisions H&S ANZ (HVK): Local and export H&S HK: e-Tail stores H&S INT’L ASEAN Vietnam and SEA ▪ Wholesale export business operations ▪ Established in 2009 with Taobao stores ▪ Distributing product to Vietnam since 2012 commenced in 2009 ▪ Currently employs over 650 peo
Slide 11: Nuchev company summary and growth trajectory
Nuchev company summary and growth trajectory Greg Kerr Chief Executive Officer
Slide 12: Re-positioning strategy for profitable scalable growth
Re-positioning strategy for profitable scalable growth MAINTAIN OUR CURRENT PURPOSE PURPOSE FOOD FOR A BETTER LIFE Current Future Leading premium digestion, Immunity and PRODUCT Single minded focus on goat wellness nutritionals in multi-categories POSITIONING Diversified portfolio of profitable and
Slide 13: Nuchev strategic business platform
Nuchev strategic business platform Nuchev owns a leading, Australian made H&S provides a high quality, deep and Goat Infant Formula Brand (Oli6®) experienced distribution network ▪ Goat milk based infant formula (GIF) is an established ▪ H&S has over 14 years experience and success selling infant se
Slide 14: Our goal and how we'll get there
Our goal and how we’ll get there Leading premium digestion, immunity and wellness nutritionals in multi-categories H&S agreement is a major first step in our business transformation, delivering: Diversified portfolio of profitable and ✓ Significant scale sustainable businesses ✓ Material capital Int
Slide 15: Board of Directors and Company Secretary
Board of Directors and Company Secretary Justin Breheny Ben Dingle Selina Lightfoot Non-Executive Director and Chair Executive Director and Founder Non-Executive Director Michelle Terry Jeff Martin Tamara Barr Non-Executive Director Non-Executive Director Company Secretary
Slide 16: Key management personnel
Key management personnel Greg Kerr Mick Myers Chief Executive Officer Chief Financial Officer Greg was appointed Chief Executive Officer of Nuchev on 14 October 2022. Mick joined Nuchev as the Chief Financial Officer in March 2022. His previous professional experience as Managing Director of adidas
Slide 17: FY23 Performance to date
FY23 Performance to date Greg Kerr Chief Executive Officer
Slide 18: Key financial and volume metrics
Key financial and volume metrics Key metrics H1 FY22 H1 FY23 % change Commentary ▪ Branded3 volume increase driven by improved sales in AU, with H1 Branded Volume1 (MT) 109.5 114.5 5% FY23 including sales in Woolworths not reflected in H1 FY22 ▪ Adjusted EBITDA for H1FY23 was a loss of $3.7m, a 40.0
Slide 19: FY23 financial and operational performance
FY23 financial and operational performance Net Branded Sales Revenue1 ($ millions) 2.2 Branded sales up 2.1 1.9 ▪ FY23 YTD branded revenue of $5.6m up +7% pcp 1.6 1.6 1.5 ▪ Oli6® continues to drive strong momentum in Australian Grocery Goat Infant Formula (“GIF”) Market, up +36% in value pcp2 ▪ Sust
Slide 20: Operating cashflow trend – FY22 to present
Operating cashflow trend – FY22 to present Operating Cashflow Trend ($000) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Disciplined cashflow and working capital management delivering substantial cash savings (353) ▪ Disciplined cost control measures and working capital management have ena
Slide 21: Details of the offer
Details of the offer Mick Myers Chief Financial Officer
Slide 22: Summary
Summary Offer overview ▪ Non-renounceable pro-rata rights issue (“Entitlement Offer”) and conditional placement (collectively the “Offer”) ▪ Conditional Placement to H&S: to raise up to $2.5 million at a $0.20 Offer Price, equating to a 15% interest in the Company following the completion of the Off
Slide 23: Capital raising timetable
Capital raising timetable Key events Date Announce Entitlement Offer, Conditional Placement and H&S Distribution Agreement Tuesday, 16 May 2023 Notice of Extraordinary General Meeting sent to shareholders Friday, 19 May 2023 Entitlement Offer opens Tuesday, 23 May 2023 Extraordinary General Meeting
Slide 24: Investor highlights
Investor highlights LEADING BRAND & DISTRIBUTION & CAPITAL PRODUCT H&S transaction will drive Oli6 is a well-established growth into key Asian brand supporting a premium, markets and provides differentiated product, valuable growth capital supported by science SUPPLY CHAIN EXPERTISE GOAT MACRO TAILW
Slide 25: Appendix Key risks
food for a better life Key risks
Slide 26: Key risks
Key risks There are a number of risks that are both specific to Nuchev and its subsidiaries (“the Group”) and of a general nature, which may affect the future operating and financial performance of the Group and outcome of an investment in Nuchev. Effective risk management is central to Nuchev’s app
Slide 27: Key risks (continued)
Key risks (continued) Increased market competition Nuchev operates in the highly competitive fast-moving consumer goods industry and is subject to existing and growing competition from domestic and international producers of infant formula and other nutritional products. Increased competition may im
Slide 28: Key risks (continued)
Key risks (continued) Nuchev’s reliance on third party suppliers and service providers exposes it third party risks Nuchev’s business model involves outsourcing key processes (such as production, processing, blending, canning and logistics) to third party suppliers and service providers, including A
Slide 29: Key risks (continued)
Key risks (continued) Nuchev’s success is linked with its ability to attract and retain key management personnel Failure to attract and retain key management and operating personnel may adversely affect Nuchev’s ability to execute its business strategy and may result in a material increase in the co
Slide 30: 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
Slide 31: Slide 31