Jamieson Wellness, Inc. · TSX:JWEL
Jamieson Wellness — Investor Presentation (August 2019)
30 slides from Jamieson Wellness's investor presentation, August 2019
Slide 1: Investor Presentation: August 2019
INVESTOR PRESENTATION : AUGUST 2019 1
Slide 2: Forward Looking Information
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 financial position
Slide 3: Our mission is to become the world's most successful and trusted health & wellness company
OUR MISSION IS TO BECOME THE WORLD’S MOST SUCCESSFUL AND TRUSTED HEALTH & WELLNESS COMPANY. 3
Slide 4: Jamieson Wellness Today
JAMIESON WELLNESS TODAY Jamieson is the #1 consumer health brand in Canada1 with a growing global presence. • Leading Canadian health and wellness company founded in 1922 • Manufacturer and marketer of Jamieson, the #1 VMS brand in Canada2 • Manufacturers and marketers of Specialty Brands Progressiv
Slide 5: Our History
OUR HISTORY A consistent history of organic revenue growth. 9% 2019 2017 Estimated revenue target of $336-$348 MM Acquired Body Plus and Sonoma Completed Initial Public Offering (July) CCMP full exit with Secondary Offering (October) 2014-2018 CAGR 2016 6% Accelerated innovation with more than 40 ne
Slide 6: Financial Profile
FINANCIAL PROFILE Attractive performance. Impressive growth. Second Quarter 2019 Highlights (vs. Prior Year) Full Year 2018 (vs. Full Year 2017) • Revenue increased 8.6% to $80.6 million • Revenue increased 11% to $333.1 million* • Adjusted EBITDA increased 15.8% to • Adjusted EBITDA increased 10% t
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Our financial performance and track record speaks for itself. TOP-LINE MOMENTUM ADJUSTED EBITDA GROWTH & MARGIN $73-$76 $336-$348 $67.6 $320 $301 $61.5 $248 $231 $46.8 $44.5 22% 21% 20% 19% 19% 2015A 2016A 2017A 2018A 2019E 2015A 2016A 2017A 2018A 2019E REVENUE ADJ. EBITDA ADJ.
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Significant free cash flow generation. SOLID GROWTH IN EARNINGS NORMALIZED CASH FROM OPERATIONS FROM OPERATIONS $46,021 $50.1 $39,506 $44.9 $28,274 $27,304 $31.0 $25.5 15% 16% 23.8% 11% 12% $12,680 17.2% 17.2% 15.4% 11.9% 2015A 2016A 2017A 2018A 2014 2015 2016 2017 2018 EARNING
Slide 9: Manufacturing
MANUFACTURING State-of-the-art facilities. Unmatched platform. Dedication to Quality • “360 Pure” is a leading, full circle quality assurance protocol Exceeding Regulatory Standards • We believe our facilities exceed the standards implemented by Health Canada • Tablets and softgels manufactured to p
Slide 10: Business Segments
BUSINESS SEGMENTS We operate in two complementary segments. 1. Branded Business offers a diversified range of premium branded products across multiple distribution channels. Branded Business includes the Jamieson 89% OF FISCAL 2018 brand domestic and international, ADJUSTED EBITDA as well as our Spe
Slide 11: Branded Business
BRANDED BUSINESS Jamieson: Powerful brand. 80% OF FISCAL 2018 BRANDED REVENUE Unmatched consumer loyalty. BRAND I BRAND I LOVE TRUST 46 23 58 40 25% MARKETSHARE IN CANADIAN FOOD,DRUG AND MASS 15 28 RETAILERS1 15 25 17 24 #1 BRAND IMAGE SCORE 2 10 17 8 7 14 13 #1IN 10 OF 13 MEASURED VMS CATEGORIES IN
Slide 12: Branded Business
BRANDED BUSINESS Specialty Brands: Natural products. Broad distribution. 20% OF FISCAL 2018 BRANDED REVENUE Leading cutting edge #1 women’s natural Leading premium mainstream Leading vegan alternative performance brand for aspiring, health-focused brand brand for consumers with specialty brand for a
Slide 13: Branded Business
BRANDED BUSINESS An award-winning collection of brands. BEST BEST BEST NEW PRODUCT PRODUCT PRODUCT 2017 2017 2017 Multivitamin: Progressive Active Whey Protein: Progressive Jamieson Omega-3 Men and Women (Platinum) Harmonized Protein (Gold) NFA Supplements CONSUMER BEST NEW SUPERBRAND PRODUCT 2017 2
Slide 14: Strategic Partners Business
STRATEGIC PARTNERS BUSINESS Key relationships. Profitable endeavours. We engage in highly-selective and strategic co-manufacturing opportunities designed to: 1. Broaden customer relationships. 2. Increase productivity and improve asset utilization. 3. Provide direct benefits to strategic initiatives
Slide 15: Growth Opportunities
GROWTH OPPORTUNITIES Well-positioned to influence new areas. 1 Capitalize on supporting global trends 2 Leverage brand equity and product innovation to drive sales in existing and adjacent markets 3 Maximize large international market opportunity 4 Utilize operating leverage and acquisition synergie
Slide 16: Global Trends
GLOBAL TRENDS Global health and wellness megatrend supports strong organic growth. 1 FOCUS ON RISING DISPOSABLE HEALTHY LIVING INCOME AGING CONSUMER ACCESS POPULATION TO INFORMATION FOCUS ON RISING DEMAND PREVENTION FOR PROTEIN 16 16
Slide 17: Global Trends
GLOBAL TRENDS Ideally positioned to benefit from strong, stable industry tailwinds. 1 NORTH AMERICAN VMS INDUSTRY GROWTH1 $32 $32 $33 $30 $31 $28 $29 $26 $27 $25 $25 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E REVENUE (US$ BILLIONS ) NORTH AMERICAN SPORTS NUTRITION INDUSTRY GROWTH1 $11
Slide 18: Innovation
INNOVATION Leveraging brand equity. Innovating products. Driving sales. 2 NET REVENUE & INNOVATION GROWTH Areas of focus for 2019 & beyond $179,591 $165,551 Digestive Health, Healthy Aging, $154,479 $145,003 • Naturally Energizing, Herbal & Superfood Solutions, Women’s 6.2% Health, Better Sleep 2.7%
Slide 19: International
INTERNATIONAL Improving the world’s health and wellness. 3 • Fastest growing division: International business sales doubled between 2013 and 2016 • Strategy executed in over 40 countries • International market success through brand recognition, quality, and strong distribution partnerships • Notable
Slide 20: Expanding Margins
EXPANDING MARGINS Utilizing leverage. Expanding margins. 4 • Increased volume driving operating leverage • Increased capital driving efficiencies • Demonstrated margin expansion of 360 basis points from 2016-2018 ADJUSTED EBITDA MARGIN EXPANSION 21.1% 20.5% 18.8% 2016 2017 2018 20 20
Slide 21: China and M&A: Advancement in China
CHINA AND M&A Upside opportunity: Advancement in China 5 What’s next for Jamieson in China? • Up to 15-20 product certifications expected by end of 2019 • Continued leverage of strong brand equity in China and support of current product offerings • Potential for Jamieson to acquire existing distribu
Slide 22: China and M&A: M&A
CHINA AND M&A Upside opportunity: M&A 5 • Acquired LVHS in 2014 and Body Plus and Sonoma in 2017 and are focused on integration and our robust organic growth opportunities • Routinely monitor market for acquisitions to accelerate strategic objectives and drive synergies Two key areas we focus on: 1.
Slide 23: Management
MANAGEMENT Experienced team. Years of results. Name Title Joined Jamieson Previous Experience President and Mark Hornick June 2014 Chief Executive Officer Chief Financial Officer and Chris Snowden July 2014 Corporate Secretary Chief Operations and Regan Stewart March 2016 People Officer Chief Scienc
Slide 24: Summary
SUMMARY • The Jamieson brand is an almost 100-year-old powerhouse that can be found in almost 40% of Canadian households • Jamieson has a rapidly expanding global footprint, with 30% international growth in 2018 and similar levels forecasted in 2019* • The Company is very profitable and had record-s
Slide 25: Our successes continue to position us as a healthy investment opportunity
OUR SUCCESSES CONTINUE TO POSITION US AS A HEALTHY INVESTMENT OPPORTUNITY. 25
Slide 26: 2019 Outlook
2019 OUTLOOK Metric 2018 A 2019 Target Range Growth Rate Total Revenue (millions) $320 $336 - $348 5.0% - 9.0% Jamieson Brands segment growth rate $256 - $266 5.0% - 9.0% Jamieson domestic 3.0% - 5.0% Jamieson international 25.0% - 35.0% Specialty Brands 1.0% - 5.0% Strategic Partners segment growth
Slide 27: Summary Consolidated Financial Information
SUMMARY CONSOLIDATED FINANCIAL INFORMATION Fiscal Year Ended December 31, 2016 2017 2018 Revenue 248.3 300.6 319.8 Cost of sales 167.5 195.8 204.4 Selling, general and administrative expenses 46.2 57.7 65.2 Share-based compensation 4.9 6.3 3.1 Earnings from operations 29.7 40.8 47.1 Foreign exchange
Slide 28: Summary Consolidated Financial Information
SUMMARY CONSOLIDATED FINANCIAL INFORMATION Three Months Ended Six Months Ended June 30, June 30, 2018 2019 % Change 2018 2019 % Change Revenue 74.2 80.6 9% 141.0 153.2 9% Cost of sales 47.6 51.0 7% 88.7 96.4 9% Selling, general and administrative expenses 17.2 16.9 (1%) 34.0 33.4 (2%) Share-based co
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 Six Months Ended December 31, June 30, June 30, 2016 2017 2018 2018 2019 2018 2019 Net income (loss) (25.2) (23.8) 26.7 4.8 8.2 9.4 13.6 Provision for income taxes 3.7 8.2 10.6 1.8 1.
Slide 30: Investor Presentation: August 2019
INVESTOR PRESENTATION : AUGUST 2019 30
Jamieson Wellness — Investor Presentation (August 2019) on 6ix