Jamieson Wellness, Inc. · TSX:JWEL
Jamieson Wellness — Investor Presentation (March 2019)
25 slides from Jamieson Wellness's investor presentation, March 2019
Slide 1: Investor Presentation March 2019
INVESTOR PRESENTATION March 2019 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 (76% of fiscal 2018 Revenue) offers diversified range of premium branded products across multiple distribution channels 2. Strategic Partners Business (24% of fiscal 2018 Revenue) is comprised of highly strategic co-manufacturing partne
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 Women’s natural Market #1 in VMS(1) Leading premium Leading cutting edge Leading vegan alternative health-focused brand Positioning Iconic mainstream brand
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 2018 per audited IFRS statements
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 96-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 Diversified Across All Channels
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 & 2018 Areas of Focus for 2019 and Beyond ▪ Key Innovation areas of Digestive ▪ Acquired LVHS: Canada’s ▪ 2015 prod
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 Low Capex Requirements * 2019E based on company guidance given on Februa
Slide 16: Experienced, Proven Management Team to Support Continued Growth
Experienced, Proven Management Team to Support Continued Growth Experienced and proven public markets management Totalteam Years of Name Title Joined Jamieson Previous Experience Experience President and Mark Hornick June 2014 26 Chief Executive Officer Chief Financial Officer Chris Snowden July 201
Slide 17: A Strong Growth Platform with Expansion Opportunities
A Strong Growth Platform with Expansion Opportunities International Market Opportunity Robust Incremental Upside Opportunities • Fast growth international business, doubling sales over last 3 years Upside • • Well Positioned for Future Strategy executed in over 40 countries Not in • Market entry thr
Slide 18: China: Growth Strategy and Path to Success
China: Growth Strategy and Path to Success 2018 Advancements Towards Success in China 1 First product certifications under new regulations received from China’s FDA High Net Promoter Score(2) and ▪ In Q3, certification for a vitamin E product joined three existing certifications Strong Brand Awarene
Slide 19: 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 96-year
Slide 20: Appendix
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Slide 21: 2019 Outlook
2019 Outlook Metric 2018 A 2019 Target Range Growth Rate Total Revenue (millions) $320 $336 - $348 5.0% - 8.8% Adjusted Revenue (millions) $333 $350 - $362 5.1% - 8.7% Jamieson Brands segment growth rate 5.0% - 9.0% Jamieson domestic 3.0% - 5.0% Jamieson international 25.0% - 35.0% Specialty Brands
Slide 22: Summary Consolidated Financial Information
Summary Consolidated Financial Information Fiscal Year Ended December 31, 2015 2016 2017 2018¹ Revenue 230.9 248.3 300.6 319.8 Cost of sales 153.0 167.5 195.8 204.4 Selling, general and administrative expenses 45.9 44.8 53.6 62.3 Share-based compensation 6.5 4.9 6.3 3.1 Earnings from operations 25.5
Slide 23: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Fiscal Year Ended December 31, 2015 2016 2017 2018 Net income (loss) (95.4) (25.2) (23.8) 26.7 Provision for (recovery of) income taxes 1.9 3.7 8.2 10.6 Interest expense and other financing costs 23.9 22.9 4.7 9.0 Depreciation of property, p
Slide 24: 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, 2015 2016 2017 2018 Net income (loss) ($95.4) ($25.2) ($23.8) $26.7 Preferred share accretion 93.4 30.4 28.8 -- Foreign exchange (gain) loss (0.9) (0.2) 0.3 0.6 Termination benefits and related costs 2.0
Slide 25: 2018 Quarterly results under IFRS 15 revenue recognition
2018 Quarterly results under IFRS 15 revenue recognition The following is a summary of selected consolidated financial information for each of the eight most recently completed quarters prepared in accordance with IFRS. As of January 1, 2018, the Company has adopted IFRS 15 using the modified retros
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