Jamieson Wellness, Inc. · TSX:JWEL
Jamieson Wellness — Investor Presentation (May 2021)
30 slides from Jamieson Wellness's investor presentation, May 2021
Slide 1: Global Growth: Investor Update May 2021
GLOBAL GROWTH INVESTOR UPDATE MAY 2021 Jamieson Wellness May 2021 1
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, business
Slide 3: Our Mission: To become the world's most successful and trusted health and wellness company
Our Mission: To become the world’s most successful and trusted health and wellness company. • Leading Canadian health and wellness company founded in 1922. • Manufacturer and marketer of Jamieson, the #1 VMS brand in Canada.1 Manufacturers and marketers of Progressive, Precision and Iron Vegan brand
Slide 4: Jamieson Wellness Today: A consistent history of organic revenue growth
Jamieson Wellness Today: A consistent history of organic revenue growth. 2020 Beginning of COVID-19 pandemic CAGR 2017 Initial Public Offering 10.3% 2017–2020 2017 Acquired Body Plus & Sonoma (Since IPO) 2014 Acquired Lorna Vanderhaeghe Health Solutions 8.9% CAGR 2010–2020 CAGR 8.3% 2000–2020 * 2016
Slide 5: Our brands are uniquely positioned to meet consumers' evolving needs
Our brands are uniquely positioned to meet consumers’ evolving needs throughout their lifetime health and wellness journey. Making health & wellness Empowering women to On the cutting edge of Leveraging the power of Supporting performance easier for everyone. live life to the fullest. health and wel
Slide 6: Financial Performance: Growth and momentum
FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE Significant free cash flow generation. Financial Performance: Growth Significant and momentum. free cash flow generation. TOP-LINE MOMENTUM ADJUSTED EBITDA GROWTH & MARGIN .0% % : 13 17.1 GR $421- $438 GR: A CA $95-$100 A CA - ’20 $404 ’16A -’20 ’16A $88.0
Slide 7: Brand and Product Marketing: A top tier team leveraging robust consumer research
Brand and Product Marketing: A top tier team leveraging robust consumer research. • Aggressive marketing plan rooted in deep consumer insights. • Investing to bring new consumers into the category and expand their usage across segments. • Creating 360o touchpoints across all consumer channels: tradi
Slide 8: Multi-Channel Distribution
Multi-Channel Distribution: Engaging our consumers everywhere and anywhere they want to buy. NEW NEW Gas Stations & Grocery & Specialty i.e. Health Food Convenience Stores Drug Stores Sporting Goods NEW Wholesale Clubs Big Box Retailers Dollar Stores E-commerce Jamieson Wellness May 2021 8
Slide 9: Industry-leading product quality and manufacturing capabilities
Industry-leading product quality and manufacturing capabilities. • All products manufactured according to “360 Pure”, our industry- leading, full circle quality assurance protocol. • TRU-ID TM certification on all Jamieson brand herbals and Jamieson and Progressive brand probiotics. • Scalable in-ho
Slide 10: We've built a foundation for long term growth
We’ve built a foundation for long term growth. CONSUMER TRENDS DOMESTIC INTERNATIONAL CHINA OPERATING LEVERAGE AND M&A ENVIRONMENTAL, SOCIAL AND GOVERNANCE PRACTICES Jamieson Wellness May 2021 10
Slide 11: Our growth is being propelled by a global health and wellness megatrend
Our growth is being propelled by a global health and wellness megatrend. RISING AGING DISPOSABLE GLOBAL INCOME POPULATION EXPANDING INCREASING ACCESS TO FOCUS ON INFORMATION SELF-CARE Jamieson Wellness May 2021 11
Slide 12: Product Innovation: Led by R&D professionals and Scientific Advisory Board
Product Innovation: Led by our industry-leading R&D professionals and Scientific Advisory Board. NET REVENUE & INNOVATION GROWTH Jamieson’s 2019 innovation was 6X more efficient than our competitors’.1 $222 $170 $185 $166 2.3% 2.8% 2.5% 2.3% 2017 2018 2019 2020 GREENLINE REVENUE GROW TH NET FROM INN
Slide 13: VMS category in Canada still has plenty of room to grow
With remarkable historic performance, the VMS category in Canada still has plenty of room to grow. There’s a significant gap in both per capita consumption and size of category between the U.S. and Canada that can’t $39 $117 be explained simply by the difference in medical systems. Canada Per Capita
Slide 14: Industry growth driven by brand and category penetration
Industry growth driven by brand and category penetration. TOTAL CATEGORY GROWTH TOTAL VMS 73.9 73.9 2020 HOUSEHOLD PENETRATION 69.3 2015 2020 39.6 VITAMIN C 29.0 23.0 26.2 18.2 23.0 20.2 2015 2020 12.7 MELATONIN 11.0 6.5 VMS JAMIESON HERBALS VITAMIN D VITAMIN C VITAMIN B PROBIOTICS 2015 2020 PROBIOT
Slide 15: Our Jamieson brand is now in more than 45 countries and regions
Our Jamieson brand is now in more than 45 countries and regions and growing. • Fastest growing segment • Key geographies include Eastern Europe, Middle East, and Southeast Asia • Focus on market penetration, INTERNATIONAL REVENUE 15%-25% 49.9% geographic expansion, and global 25.1% $51.5 $59.2 – $64
Slide 16: China: Delivering growth across all channels
China: Delivering growth across all channels. • Second largest global market at $20B USD with significant annual growth • Strong consumer preference for foreign brands focusing on quality and heritage • Growth plans with top cross-border e- commerce (CBEC) platforms (T-mall, VIP.com, JD.com, etc.) w
Slide 17: China: The rise of social commerce
China: The rise of social commerce • Live streaming KOLs (Key Opinion Leaders) • A more intuitive and vivid shopping experience • Efficient conversion rate • Visible marketing effect, gradually becoming a new growth force of e-commerce platforms and content platforms • 68% of consumers in China say
Slide 18: Our global strategic partnership with Costco
Our global strategic partnership with Costco • Continuing to broaden international expansion with Costco • International branded business with Costco in the UK, Iceland, Spain, France, Taiwan & China • Significant growth in marketing spend and execution in Costco China in 2020 and 2021 • Expansion o
Slide 19: Mergers & Acquisitions: Complementary brand(s) to grow our footprint
Mergers & Acquisitions: Complementary brand(s) to grow our footprint in existing mature markets. ~$100M+ 20 % TARGET REVENUES (CAD) REQUIRED IRR • Focused on expanding our geographic footprint in mature VMS markets (USA, Western Europe, etc.) • Looking for quality brand(s) with mass consumer appeal
Slide 20: Utilizing leverage: Expanding margins
Utilizing leverage: Expanding margins. ADJUSTED EBITDA MARGIN EXPANSION • Increased volume driving operating leverage 22.0% 21.8% • Capital investment driving increased 21.1% capacity and efficiencies 20.5% • Demonstrated margin expansion of 300 basis points from 2016-2020 18.8% • Plans to grow marg
Slide 21: Environmental and Community Support
Environmental and Community Support: A natural extension of our vision of improving the world’s health and wellness. • Developed internal team to evaluate environmental impacts and opportunities • Outlined recent sustainability initiatives in our 2020 Corporate Responsibility Commitment • Donated 85
Slide 22: Diversity, Equity and Inclusion
Diversity, Equity and Inclusion: We have specific goals and targets to monitor our progress. • Fair representation of leadership and board roles based in Canada being held by BIPOC (Black, Indigenous, People of Colour) and female leaders by 2025 • New hires representative of BIPOC populations • Annu
Slide 23: Governance: Staying true to our values
Governance: Staying true to our values of integrity, transparency, and accountability. • We are committed to sound, ethical business practices, regularly reviewing our progress to identify areas for improvement • We consider requests for expanded disclosure from all stakeholders, including sharehold
Slide 24: A platform for long-term value creation
A platform for long-term value creation. • Global consumer health and wellness megatrend M&A • Domestic growth • International expansion • Brand growth in China • Operating leverage and M&A opportunities • Environmental, social and governance practices Jamieson Wellness May 2021 24
Slide 25: Appendix
APPENDIX Jamieson Wellness May 2021 25
Slide 26: Financial Performance: 2021 Guidance
Financial Performance: 2021 Guidance. METRIC 2020A 2021 TARGET RANGE GROWTH RATE Total Revenue (millions) $404 $421– $438 4.3% – 8.6% Jamieson Brands Segment Growth Rate 4% – 8% • Domestic Branded 2% – 5% • Jamieson International 15% – 25% • Strategic Partners Growth Rate 5% – 10% Adj. EBITA (millio
Slide 27: Summary consolidated financial information
Summary consolidated financial information. Jamieson Wellness May 2021 27
Slide 28: Summary consolidated financial information
Summary consolidated financial information. Fiscal Year Ended Three Months Ended December 31, March 31, ($ in millions, except as otherwise noted) 2019 2020 % Change 2020 2021 % Change Revenue 345.0 403.7 17% 84.5 98.3 16% Cost of sales 215.2 258.9 20% 53.3 64.4 21% Gross profit margin 38% 36% (2%)
Slide 29: Reconciliation of net income to EBITDA, adjusted EBITDA and adjusted net income
Reconciliation of net income to EBITDA, adjusted EBITDA and adjusted net income Fiscal Year Ended Three Months Ended December 31, March 31, ($ in millions, except as otherwise noted) 2017 2018 2019 2020 2020 2021 Net income (loss) (23.8) 26.7 31.7 41.6 8.0 6.1 Provision for income taxes 8.2 10.6 10.
Slide 30: Investor Relations Contact
Investor Relations Contact: Ruth Winker (rwinker@jamiesonlabs.com) ca.linkedin.com/company/jamiesonwellness twitter.com/JWEL_Canada Jamieson Wellness May 2021 30