Natural Alternatives International, Inc. · NASDAQ:NAII
Natural Alternatives International — Investor Presentation (September 2022)
30 slides from Natural Alternatives International's investor presentation, Sep 22, 2022
Slide 1: Natural Alternatives International, Inc. Investor Presentation
<7 Natural Alternatives International, Inc. Investor Presentation September 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, These statements reflect Natural Alternatives International, Inc’s (the Company's) current views about future events and financial performance ba
Slide 3: Regulation G
Regulation G In addition, in order to assist you with period-over-period comparisons on a consistent and comparable basis, our presentation includes certain non-US GAAP information. This information excludes certain non-cash expenses, certain cash income and expense items related to our foreign curr
Slide 4: Company Snapshot
Company Snapshot NAII is the only pure-play public company that offers global formulation and manufacturing of customized nutritional supplements along with marketing branded and patented products Contract Manufacturing We provide private-label contract manufacturing services to companies that marke
Slide 5: Company Strengths
Company Strengths
Slide 6: Company Strengths
Company Strengths Growth Drivers From Organic initiatives And Complementary se Acquisitions a) of] Expand existing customer products, base and channels SS we Expand in-house brands XQ RN \ Complementary acquisitions Solid Cash Flows And Strong Balance Sheet To Support Growth Objective FY22 net sales
Slide 7: Executive Management Team
Executive Management Team Mark A. LeDoux CEO and Chairman of the Board of Directors Mr. LeDoux founded Natural Alternatives International (NA) in 1980. With over 45 years of experience since joining the nutritional supplements industry in 1975, Mc LeDoux is considered a highly regarded leader and sp
Slide 8: Executive Management Team
Executive Management Team Kenneth E. Wolf President and Chief Operating Officer Me. Wolf joined NAI in February 2008 as Chief Financial Officer, was promoted to Chief Operating Officer in June 2010 and has served as NAY’s President since October 2015. Mt. Wolf is responsible for design and implement
Slide 9: Overview — Capabilities
Overview — Capabilities Global Production + Upto 17 million capsules and 11 million tablets daily capacity + Up to 500,000 bottles finished product daily capacity + Highly sophisticated in-house laboratori + Warehousing -7,500+ pallet capacity Regulatory + Full Label Panel Testing and Quality Assura
Slide 10: Overview — Contract Manufacturing
Overview — Contract Manufacturing Product Formulation + Custom formulations * In-house science teams * Clinical study design and support * In-house product stability testing capabilities Material Acquisition and Analysis * Global raw material sourcing expertise + Transparency and tracking of materia
Slide 11: Overview — Patent & Trademark Licensing
Overview — Patent & Trademark Licensing In-house brand expansion leveraging our proprietary ingredients: CarnoSyn’ and SR CarnoSyn’ beta-alanine. “CarnoSyn Carnosine Synthesizer &CarnoSyn Wellness. Sustained. Sustained @ Please visit websites by clickingon logo. Sports Nutrition + Enhance athletic p
Slide 12: Worldwide Operations and Market Reach
Worldwide Operations and Market Reach NNAI's global footprint and scope facilitates greater opportunities and more dynamic client engagement ‘Manno, Switzerland Carlsbad, CA - Wal offices and Operating Centers I Primary Markets
Slide 13: NAI US Facilities Tour
NAI US Facilities Tour
Slide 14: Accreditations
Accreditations Industry leading accreditations and certification demonstrate our commitment to quality andare a strong barrier to entry Domestic (NAI; International (NAIE, ‘Good Manufacturing Practices (cGMPs) (22 CFR 121) compliant FDA Inspected; Zero483 observations ‘Therapeutic Goods Administrati
Slide 15: Industry Trends
Industry Trends We will benefit from growing consumer interest in health and wellness ‘ 87% ) 66% } ( 80% ) A %6 - of consumers 66% - of consumers say 80% - of consumers are >: use some type supplements are an 55e of vitamin, mineral, or important part of their supplement? wellness routine! Growing
Slide 16: US Supplement Market Forecast
US Supplement Market Forecast Anew level of demand has been established with an estimated CAGR of 5.2%; Supplement industry on track to pass $59B in 2022 and grow to $80B+ by 2028 US Dietary Supplements Market Revenue Forecast for 2022 28% 32% 17%
Slide 17: Global Supplement Market Forecast
Global Supplement Market Forecast Global trend is matching US trend Global market growth expected at a CAGR of 5.9% growth to $319B in revenue by 2028. Alternat
Slide 18: Financial Performance and Growth Objectives
Financial Performance and Growth Objectives 18
Slide 19: Historical Revenue and EBITDA
Historical Revenue and EBITDA Sales in FY21 increased primarily due to higher sales from a majority of our di n channels worldwide, including higher sales of immune and wellness products that appears to be driven by consumers taking a more active role in their health and wellness as a result of the
Slide 20: Historical Sales By Channel
Historical Sales By Channel rns m7 rns MDirect Sales m Retail ml Patent & Trademark Licensing
Slide 21: Objectives & Growth Drivers
Objectives & Growth Drivers * Fiscal 2023 and Beyond Targeted Growth Objectives: Y Achieve $250 million revenue run-rate in the next 3 years withdouble v digit Adjusted EBITDA margins v Target sales growth rate of 5-10% per year Y Pursue complimentary accretive acquisitions generating $10-$50 millio
Slide 22: Acquisition Strategy
Acquisition Strategy x 5 $0} Channels +> Verticals Health Care Practitioner Wellness Brands Multi-Level Marketer High Value Ingredient Suppliers Direct-to-Consumer Contract Manufacturers Specialty Retail Value-Add Distributors Drug Store Mass Ow nN WwW Markets Vitamins, Minerals, Supplements Capsule
Slide 23: Investment Thesis
Investment Thesis * As of July 25, 2022, global capacity utilization of ~60% + New high-capacity blender came online January 2022 in our Vista, CA facility increasing our overall product blending capacity in the USA by approximately 30% + Acquisition of new Manufacturing and Warehouse Facility in Au
Slide 24: Investor Information
Investor Information Stock Symbol: NASDAQ: NAII Company website: http://www.nai-online.com Company Headquarters: 1535 Faraday Avenue pe CA 92008 Global Headquarters ] Investor Relations Contacts Michael Fortin Chief Financial Officer 760-736-7700 Investor @nel online cogs
Slide 25: Appendix
Appendix Investor Relations Info 25
Slide 26: Historical Segment Performance
Historical Segment Performance Revenue Private Label Contract Manufacturing $ 121598 § 106291 $ 168310 § 154798 Patent & Trademark Licensing 15692 12585 14210 16,168 Total Revenue $ 138290 § 118876 § 178520 § 170966 Income (Loss) from Operations . Private Label Contract Manufacturing $ 11232 $ 4030
Slide 27: Condensed Consolidated Statements of Income
Condensed Consolidated Statements of Income (in thousands except per share data) uses Teel Edad Yer Enid pe a a em i EZ a ner sues TBS mck aa tmox OR tom TMD TODO eo oot ls ao am mes im une eae _taure Gees ptt cao eo a a a a CZ Sao. neal asnnitahe wossss asa 86% age 00% team gem _ ta INCOME FROM OPE
Slide 28: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets June 30, June 30, 2022 2021 ASSETS Cash and cash equivalents $21,833 $32,133 ‘Accounts receivable, net 17.422 17,946 Inventories, net 32,475 21,006 y her current assets 3,263 Total current assets 76,746 80,348 Property and equipment, net 44.573 22211 (Qperating
Slide 29: Adjusted EBITDA Reconciliation (Non-US GAAP)
Adjusted EBITDA Reconciliation (Non-US GAAP) Natural Alternatives International, Ine. Adjusted EBITDA — Non - US GAAP Reconcili (in Thousands) Cuauaited) Fyl6FYI7,_Fvis.—FYI)—FY20_ FY] FY? ‘Net Income (Loss) $9,546 $7,235 ‘$5,051 $6,541 (1,645), ‘$10,768 $10,712 Interest Income a3) 45) 08s). 868) a7
Slide 30: Thank You
Thank You www.nai-online.com
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