Mcpherson's Limited · ASX:MCP
Mcpherson's — Shareholder Meeting (November 2020)
66 slides from Mcpherson's's shareholder meeting presentation, Nov 4, 2020
Slide 1: Mcpherson's Limited AGM 2020
For personal use only Mcpherson’s Limited AGM th 2020 4 november 2020 CREATING BETTER IN Health Wellness & Beauty GC
Slide 2: Graham Cubbin, Chairman
GRAHAM CUBBIN, CHAIRMAN For personal use only 2 GC
Slide 3: Agenda
Agenda For personal use only 1 Welcome from graham cubbin and chariman’s address 2 LAURIE MCALLISTER, ceo & managing director’s address 3 Financial highlights & capital raise – Paul Witheridge 4 CORE BRANDS – mary pearce / Donna chan 5 Channel & customer – lori pirozzi 6 Mergers & acquisitions – Dav
Slide 4: Our Board
OUR BOARD OUR BOARD’S EXPERIENCE REFlECTS OUR STRATEGY For personal use only graham a. cubbin jane m. mckellar grant w. peck Independent Non-Executive Independent Non-Executive Independent Non-Executive Director Director Director geoffrey r. pearce alison j. mew laurence mcallister Non-Independent I
Slide 5: Online Attendees – Voting Process
ONLINE Attendees – VOTING PROCESS For personal use only • When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen • To vote simply select the direction in which you would like to cast your vote, the selected option will change colour. • There is no su
Slide 6: Online Attendees – Question Process
ONLINE Attendees – Question PROCESS For personal use only • When the Question function is available, the Q&A icon will appear at the top of the app. • To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow • Your question will be sent immedia
Slide 7: A leading supplier of Health, Wellness & Beauty brands
For personal use only A leading supplier of Health, Wellness & Beauty brands 7 GC
Slide 8: People First
PEOPLE First For personal use only “During the COVID-19 pandemic the ongoing well- being and support of our employees as they work in challenging circumstances has been, and continues to be, our highest priority” 8 GC
Slide 9: FY20 key financial highlights
FY20 key financial highlights For personal use only ➢ Sales from owned brand, + 16% on FY19 ➢ Underlying profit before tax, +20% on FY19 ➢ Underlying operating cash conversion of 103% ➢ Investment in our R&D capability, + 33% headcount ➢ Sales to ABM, + 133% on FY19 ➢ Net bank debt, excluding lease
Slide 10: Recent Developments
Recent Developments For personal use only ➢ Strong start to FY21 ➢ Significant non-recurring provision for hand sanitiser ➢ Acquisition of Global Therapeutics the first serious move into Health ➢ Capital raise via $36.5m institutional placement & share purchase plan 10 GC
Slide 11: Laurie McAllister, CEO and Managing Director
LAURIE MCALLISTER, Ceo and MANAGING DIRECTOR For personal use only 11 LM
Slide 12: Our management team
Our management team For personal use only s arah tul l y Paul Wi theri dge Donna Chan Dav i d Fi el di ng L ori Pi roz z i B rett Owers Mary Pearce Mark Brady L aurence McAl l i ster 12 LM
Slide 13: Health, Wellness & Beauty – A $17 billion market
HEALTH, WELLNESS & BEAUTY – A $17 billion market For personal use only health WELLNESS beauty ($4.9 Billion, +3.9% vs YA) ($5.7 Billion, +3.8% vs YA) ($6.5 Billion, +2.8% vs YA) 13 LM
Slide 14: FY2020 strategic business imperatives
FY2020 strategic business imperatives For personal use only Refocus McPherson's on Health, Wellness & 1 Beauty with sustainability and people at 6 Create a China facing business the core 2 Revitalise our own McPherson’s brands 7 Ensure we have our team fit for the future with appropriate expertise,
Slide 15: FY2021 strategic business imperatives
FY2021 strategic BUSINESS imperatives For personal use only 1 Continue to Protect & grow the mcpherson’s core 5 hw&b brands in line with key macro 6 Expedite hw&b portfolio expansion through increased r&d partnerships & nPD investment trends Accelerate our sustainability agenda. Engaging 2 Turbo cha
Slide 16: People First
For personal use only People First During COVID-19, the wellbeing and support of our employees as they work in challenging circumstances continues to be our highest priority. Despite COVID - 19 , within Australia, we have: • B e e n co n s i s te nt i n p ay i n g f u l l co r p o rate taxe s • E m
Slide 17: Financial Highlights and Capital Raise
A’KIN Australian Tea Tree Oil Detoxifying Mask Mcpherson’s Financial For personal use only Highlights and Capital Raise Summary 17 PW
Slide 18: Commentary on Q1 FY21 financial outcome
Commentary on Q1 fy21 financial outcome ➢ For personal use only 4% growth in sales revenue to $49.7 million ➢ 8% growth in sales revenue from owned brands to $41.7 million ➢ 84% growth in underlying PBT to $2.9 million ➢ Growth in category market share in 4 out of 6 core brands ➢ Continued strong Ch
Slide 19: Capital raise summary
Capital raise summary For personal use only ➢ $36.5m institutional placement completed on 28 October 2020 at $2.27 per share representing 15% of pre-raise issued capital ➢ A Share Purchase Plan (SPP) is being offered to eligible shareholders in Australia and New Zealand to raise up to $10 million ➢
Slide 20: Core Brands
For personal use only Mcpherson’s CORE BRANDS Dr. Lewinn’s Ultra R4 Collagen Surge Plumping Gel 20 MP
Slide 21: Innovation success fuelling sustainable growth
Innovation SUCCESS fuelling sustainable growth MCP Core Brands NPD Cumulative Share % For personal use only Rolling 3FY 28.3% 20.5% 15.3% AUSTRALIA & EXPORT CHINA NPD #1 HAIR BRUSH NPD PHARMACY 10.4% FY17 FY18 FY19 FY20 11 13 3 6 R&D R&D R&D R&D #1 NATURAL HAIRCARE NPD FIRST TO MARKET LASH NPD Forei
Slide 22: FY20: Covid resilient owned brand portfolio
FY20: covid resilient owned brand portfolio For personal use only EXPORT CHINA PARTNERSHIP BEAUTY at HOME Australian natural beauty +1 3 3 % REV ENU E GROWTH +1 . 4 SH ARE POI NT gai n MAI N TAI N SH ARE TRUSTED FAMILY BRAND AT HOME BAKING & COOKING SUPORTING THE LOCAL COMMUNITY +1. 5 SH ARE POI NT
Slide 23: Brand portfolio well positioned against macro trends
Brand portfolio well positioned against macro trends For personal use only GLOBAL EXPANSION PROACTIVE BEAUTY SUSTAINABLE SOLUTIONS NEW COVID NORM • Global Health Wellness & Beauty • Custodians of your own skin • 87% of Shoppers are more • 50% of Australians do not estimated to be worth $4.5T health.
Slide 24: FY21: Leverage macro trends to drive future growth
FY21: LEVERAGE MACRO TRENDS to drive future growth For personal use only GLOBAL EXPANSION PROACTIVE BEAUTY The little iron 八胜肽小熨斗 INTERNATIONAL APPEAL CATEGORY EXPANSION RANGE EXPANSION 24 Continue market expansion plans to build new hero’s Clinically Proven Inside Out Beauty Scientifically Proven H
Slide 25: FY21: Leverage macro trends to drive future growth
FY21: LEVERAGE MACRO TRENDS to drive future growth For personal use only SUSTAINABLE SOLUTIONS NEW COVID NORM ECO EXPANSION FIRST TO MARKET INCREASED GREENER USAGE VIRTUAL CONNECTION Cotton Tips Paper Stem across all pack sizes Compostable, Biodegradable & Resealable Upsize for larger households Gla
Slide 26: Channel & Customer
For personal use only Mcpherson’s Channel & customer 26 LP
Slide 27: MCP performance FY20 in traditional channels
MCP performance FY20 in traditional Channels For personal use only 4 out of 6 core brand accelerating ahead of category growth Total Pharmacy and Grocery market Fastest growing TOP 5 Australian skincare supplier at 19.5% Dr. Lewinn’s shelf presence increase +33% in Priceline +25% Chemist Warehouse P
Slide 28: FY20 Demonstrated Agility and Resilience
FY20 Demonstrated Agility and RESILIENCE Continued focus on EXECUTION For personal use only STRATEGIC PARTNERSHIPS OPTIMISED INVESTMENT CONNECT WITH SHOPPERS Pivot TO ONLINE RETAIL NEW CUSTOMERS INCREMENTAL RANGING INVESTMENT + 112 + 30% PRODUCTS ONBOARDED WITH ONLINE RETAILERS INVESTMENT TO CUSTOME
Slide 29: Macro retail trends shaping MCP sales
MACRO Retail trends shaping MCP Sales Strategy For personal use only CHANNEL SHIFT GLOBALISATION DIFFERENTIATION SHOPPER ENGAGEMENT • Annual E-commerce spend • 64.8% of Top 250 retailers • Over 120 Exclusive/Pseudo • 53% of shoppers are likely $25B in June 2020 +31.9% vs YA have foreign operations b
Slide 30: Macro retail trends shaping MCP sales
MACRO Retail trends shaping MCP Sales Strategy For personal use only CHANNEL SHIFT GLOBALISATION DIFFERENTIATION SHOPPER ENGAGEMENT • Greater online presence • Strategic partnerships • Exclusive products • Integrated online/instore • Pivot Investment • Participation In Expansion • First to markets •
Slide 31: ANZ operational sales imperatives
ANZ operational Sales imperatives Overview For personal use only Range and Investment Optimisation EXECUTION & Innovation Expansion PIVOT INVESTMENT & Presence ONLINE Retailer Exclusives New Channel Penetration Continued PORTFOLIO MANAGEMENT growth from CORE AND Innovation CORE Distribution Expansio
Slide 32: Global Therapeutics
For personal use only Global Therapeutics 32 DF
Slide 33: Company overview
Company overview Global Therapeutics develops, markets and sells Traditional/Oriental & Western herbal complementary medicine formulations in Australia and New Zealand For personal use only Background Product portfolio • Leader in combining traditional herbal & western complementary medicines • Focu
Slide 34: Executing McPherson's strategy
Executing McPherson's strategy Global Therapeutics delivers on McPherson’s strategy of building a strong Health and Wellness pillar focused on owned brands and products, with significant growth and market share potential relative to the broader category For personal use only Health and Wellness Hous
Slide 35: Revenue segmentation
Revenue segmentation Diversified, premium product portfolio focused on large sub-segments within the supplements market including immunity, muscular support, bone and joint health, digestive and women's health For personal use only FY20 invoiced sales by brand FY20 invoiced sales by product 26% 26%
Slide 36: Distribution network
Distribution network Highly complementary distribution network including pharmacy and specialty health food stores. Opportunity to leverage McPherson’s expanding online and export sales channel For personal use only Health Food Stores Pharmacies Online and export Brand Brand Brand Australia’s No.1 b
Slide 37: Global Therapeutics' market positioning
Global Therapeutics’ market positioning Herbal and traditional products are a niche high growth sub segment of the broader complementary medicines sector For personal use only The Australian Complementary Medicines industry generated $5.6 billion of sales in 2019 - 55% of sales comprised the ‘Vitami
Slide 38: A Winning Integration Strategy
A Winning Integration Strategy Global Therapeutics represents a transformational and strategically compelling acquisition, with significant growth opportunities, that advances McPherson’s position in Health and Wellbeing For personal use only • Establishes a Health & Wellness business for McPherson’
Slide 39: A Winning Integration Strategy (cont)
A Winning Integration Strategy (cont) For personal use only • Leverage McPherson’s available Kingsgrove warehouse capacity (40% capacity available) Ability to leverage • Collaboration between high quality sales & marketing teams across platforms and generate • Potential medium term efficiencies. Lev
Slide 40: Pro forma financial impact
Pro forma financial impact Global Therapeutics has strong margins providing scope for McPherson's to grow the business. The Acquisition further diversifies McPherson's sales mix and increases revenue derived from owned brands (~85% FY20 pro forma revenue) For personal use only Pro forma FY20 revenue
Slide 41: FY2020 Export Results Highlights
Mcpherson’s fy 2020 For personal use only EXPORT RESULTS HIGHLIGHTS Dr lewinn’s Line Smoothing Complex S8 41 DF
Slide 42: Livia Wang, Chief Brand Officer
For personal use only Livia Wang Chief Brand Officer LW
Slide 43: ACG 2018-2020 GMV Growth
ACG 2018-2020 GMV GROWTH (A$M) Access Corporate Group For personal use only Historical Projected 2744 YoY Growth233% 1180 YoY Growth359% 329 2018 2019 2020 LW
Slide 44: Global Connections
GLOBAL CONNECTIONS For personal use only Access Corporate Group North America Germany Spain China Global offices: Sydney, Melbourne, Auckland, Hangzhou New offices coming soon: Australia Los Angeles, Frankfurt New Zealand Employees: 2,000+ LW
Slide 45: Our Facts
OUR FACTS Access Corporate Group For personal use only We connect Our owned and invested brands operate Our logistics network covers 100 + international brands 300 + brick-and-mortar 25 countries stores worldwide In a single year we ship VTN app social engagements We engage 5,000 + 1,500 containers
Slide 46: Access & Dr. LeWinn's Sales Growth
ACCESS & DR. LEWINN’S SALES GROWTH Access Corporate Group by Campaign (GMV in RMB) For personal use only 2019 2020 Growth Partnership 154,980,000 146,447,172 YoY 135% YoY 228% YoY 151% 115,206,766 Integrated NPD 94,624,705 Marketing STRATEGY 64,336,330 62,680,597 Global Smart Supply Expansion Chain
Slide 47: Double Performance - Dr. LeWinn's
DOUBLE 6 PERFORMANCE - Dr. LeWinn’s Access Corporate Group For personal use only We served We delivered Dr. LeWinn’s products to 100,000+ consumers across the globe 9+ countries 879+ cities Triple Action Defence SOLD High Potency Treatment Mask SOLD Ultra R4 Collagen Surge Plumping Gel SOLD 85,000 u
Slide 48: Awards + Recognitions
AWARDS + RECOGNITIONS For personal use only WINNER Prevention Magazine Beauty Innovation Award PRODUCT – Line Smoothing Complex Triple Action Day Defence PRODUCTS – Clinically proven, tried and tested. LW
Slide 49: China International Import Expo
CHINA INTERNATIONAL IMPORT EXPO Access Corporate Group Shanghai, 5th~10th November For personal use only The Gateway to the huge Chinese market, rapid growth of consumption and import 150,000+ global professional purchasers Participants from 100+ countries $10 Trillion potential import market in the
Slide 50: Double Forecast
DOUBLE 11 FORECAST For personal use only TARGET RMB GMV 154 Million BRAND DAY 4th November LW
Slide 51: Thank You
LW For personal use only THANK YOU
Slide 52: Dr. LeWinn's year on year China sales
Year on Year For personal use only FY17 FY18 FY19 FY20 FY21 $500k $3.1m $16m $37m $48m 1 hero +529% +413% +133% +30% product 2 hero 3 hero 5 hero 6 hero products products products products 52 DF
Slide 53: Top Performer in China
Top Performer in China For personal use only Wechat search DR. LEWINN’S history shows RETAINS A TOP 3 building POSITION IN THE awareness in ABM PORTFOLIO china SKU MIX IS DE- RISKED AS HERO PRODUCT SCOPE GROWS STRONGER 53 DF
Slide 54: China Innovation
For personal use only China Innovation New product innovation • Led by china insights • Expanding into new Launching August 2021 formats Launching • Driving growth through March 2021 innovation 54 DF
Slide 55: The Aware Group
The Aware Group For personal use only IN May 2020 IN FY20 MCP PROGRESSIVELY Aware produced the INCREASED THEIR EQUITY 1 millionth unit of STAKE IN THE AWARE GROUP dr. lewinn’s TO 10% Over 50 skus Aware manufactures HAVE Successfully over 25% of all undergone a tech dr. lewinn’s products transfer 55
Slide 56: Summary and Outlook
For personal use only A’Kin Natural Australian Skincare Mcpherson’s SUMMARY AND OUTLOOK 56 LM
Slide 57: Current trading & outlook for FY21
Current trading & outlook for FY21 1 For personal use only Following +20% in FY20 UNDERLYING PBT, Q1 UNDERLYING PBT +84% 2 Core brands +8% on pcp 3 DR. LEWINN’S Q1 +19% in export channel Strong underlying trading and financial position despite non -recurring 4 provision for excess hand sanitiser 5 G
Slide 58: People First
People First For personal use only THE ONGOING WELLBEING AND SUPPORT OF OUR EMPLOYEES CONTINUES TO BE OUR HIGHEST PRIORITY 58
Slide 59: Formal resolutions
For personal use only Mcpherson’s Formal resolutions 59 GC
Slide 60: Agenda item – financial statements / other reports
Agenda item 1 – financial statements / other reports For personal use only to consider the financial statements and reports for y/e 30 June 2020 Shareholders are not required to vote or formally approve or adopt the financial reports. Shareholders can, however, submit questions regarding the financi
Slide 61: Agenda item – remuneration report
Agenda item 2 – remuneration report For personal use only To adopt the Remuneration Report for the financial year ended 30 June 2020 In accordance with the Corporations Act 2001 (Cth) (Corporations Act), this resolution is advisory only and does not bind the Company or the directors of the Company.
Slide 62: Agenda item – re-election of a director
Agenda item 3 – re-election of a director – Ms. Jane mCkellar For personal use only To pass the following resolution as an ordinary resolution: “To re-elect, as a director of the Company, Ms. Jane McKellar, who retires by rotation as a director in accordance with the Company's Constitution and the A
Slide 63: Agenda item – amendment of constitution
Agenda item 4 – amendment of constitution For personal use only to consider and, if thought fit, to pass the following resolution as a special resolution: “That, for the purposes of section 136(2) of the Corporations Act, the Company's Constitution is amended by the inclusion of those provisions set
Slide 64: Resolutions – proxy votes
Resolutions – proxy votes For personal use only Proxy Votes Received (millions) Resolution For For Against Against Open Open No. % No. % No. % 2 Remuneration Report 57.5 97.3% 0.9 1.6% 0.7 1.1% 3 Re-elect Jane McKellar 58.4 98.9% 0.0 0.1% 0.6 1.0% 4 Amend Constitution 58.1 98.3% 0.3 0.6% 0.7 1.1% 64
Slide 65: Q&A
GC For personal use only 65 — Q&A
Slide 66: Thank you
GC For personal use only you Thank