Jamieson Wellness, Inc. · TSX:JWEL
Jamieson Wellness — Investor Presentation (February 2023)
26 slides from Jamieson Wellness's investor presentation, February 2023
Slide 1: Global Growth Investor Update February 2023
GLOBAL GROWTH INVESTOR UPDATE FEBRUARY 2023 1
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation contains “forward-looking information” within the meaning of applicable securities laws. Forward looking infor mation may relate to our future outlook and anticipated events or results and may include information regarding our financial position, busines
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. • Expanding presence in the United States with recently announced acquisition of the youtheory VMS brand. • Manufacturer and marketer of Jamieso
Slide 4: 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 easier for everyone. Improving quality of life and wellness for all. Specialty Brands Jamieson Wellness February 2023 4
Slide 5: Our industry-leading commitment to quality
Our industry-leading commitment to quality. • All products manufactured according to “360 Quality”, our industry-leading quality assurance program • Third-party certifications including DNA verification on herbal and probiotic products • Primary Canadian tablet and soft gel manufacturing facilities
Slide 6: Jamieson Wellness Today: A consistent history of organic revenue growth
Jamieson Wellness Today: A consistent history of organic revenue growth. $600,000 CAGR 12.7% 2017–2022 $500,000 (Since IPO) $400,000 8.9% CAGR $300,000 2010–2020 $200,000 CAGR $100,000 8.3% 2000–2020 $0 1995 2000 2005 2010 2015 2020 2022 * 2014 to 2022 per audited IFRS statements and includes impact
Slide 7: Financial Performance: Growth and momentum
Financial Performance: Growth and momentum. TOP-LINE MOMENTUM ADJUSTED EBITDA GROWTH & MARGIN $670-$700 $140-$146 $547 $123.8 $451 $404 $100.1 $345 $88.0 $320 $75.9 $67.6 22.2% 22.6% 22.0% 21.8% 21.1% 20.9% 2018A 2019A 2020A 2021A 2022A 2023E 2018A 2019A 2020A 2021A 2022A 2023E R EVEN U E AD J . EBI
Slide 8: 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 8 Jamieson Wellness February 2023
Slide 9: We've built a foundation for long term growth
We’ve built a foundation for long term growth. CONSUMER INSIGHTS & MEGATRENDS CANADA UNITED STATES CHINA INTERNATIONAL OPERATING LEVERAGE ACQUISITION OPPORTUNITIES ESG, PEOPLE, VALUES, AND CULTURE Jamieson Wellness February 2023 9
Slide 10: 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 in consumer education to bring new consumers into the category and expand their usage across segments • Creating 360o touchpoints across all cons
Slide 11: Product Innovation: Led by our industry-leading R&D professionals and Scientific Advisory Board
Product Innovation: Led by our industry-leading R&D professionals and Scientific Advisory Board. TRENDING CATEGORIES TRENDING INGREDIENTS TRENDING FORMATS Immunity, sleep, stress, energy Mushrooms, elderberry Gummies, drink mixes Jamieson innovation is more efficient than the market average. 1 Jamie
Slide 12: Multi-Channel Distribution: Engaging our consumers everywhere
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 February 2023 12
Slide 13: Domestic industry growth driven by brand and category penetration
Domestic industry growth driven by brand and category penetration. HOUSEHOLD PENETRATION • Jamieson household penetration 2015 2020 increased 5% from 2015-2020 73.9 69.3 • At ~40% household penetration, Jamieson has room to grow within total VMS 29.0 • With total VMS penetration at nearly 23.0 74%,
Slide 14: Our brands are now in more than 50 countries and regions and growing
Our brands are now in more than 50 countries and regions and growing. • ~122% growth in 2022 includes strategic acquisition in the U.S. • Fastest growing segment with 75-90% guided growth on the base business in fiscal 2023 75%-90% INTERNATIONAL REVENUE • 22% organic CAGR between 2018 and 2022 $226.
Slide 15: China: Two major strategic actions to accelerate growth
China: Two major strategic actions to accelerate growth November 2022 – Announced acquisition of Chinese distributor assets • Expected to close in the second quarter providing full control of the value chain in China • Focus on brand building activities and direct management of the customer and cons
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 platforms with +175 SKUs currently in distribution
Slide 17: Youtheory: Strategic Rationale
Youtheory: Strategic Rationale. Accretive transaction with 20%+ expected IRR Target Acquisition Criteria • $100M+ target revenues Highly attractive expansion opportunity into large and fast-growing U.S. VMS market • 20% required IRR • Focused on expanding our geographic Strong brand complementary to
Slide 18: Utilizing leverage: Expanding margins
Utilizing leverage: Expanding margins. BRANDED EBITDA MARGIN EXPANSION • Increased volume driving operating leverage 26.3% • Capital investment driving increased 25.8% 25.8% capacity and efficiencies 25.4% • Fiscal 2022 includes the impact of our 24.7% youtheory acquisition and its lower margin prof
Slide 19: Environmental, Social and Governance
Environmental, Social and Governance: A natural extension of our vision of improving the world’s health and wellness. • Recently disclosed climate commitments including a 50% reduction of Scope 1 & 2 emissions by 2030 and the development of a formal action plan to reach Net Zero by 2050 • Diversity,
Slide 20: A platform for long-term value creation
A platform for long-term value creation. • Global consumer health and wellness megatrend • Growth in Canada M &A • Expansion in the U.S. • Brand growth in China • International expansion • Operating leverage and acquisition opportunities • Environmental, social and governance practices • People, val
Slide 21: Appendix
APPENDIX Jamieson Wellness February 2023 21
Slide 22: Financial Performance: 2023 Guidance
Financial Performance: 2023 Guidance. METRIC 2022 2023 TARGET RANGE GROWTH RATE Total Revenue (millions) $547 $670 - $700 22% - 28% Jamieson Brands Segment Growth Rate 24% - 30% • Domestic Branded $319 - $328 3% - 6% • Jamieson International $35 - $40 5% - 20% • China $47 - 50 65% - 75% • youtheory
Slide 23: Summary consolidated financial information
Summary consolidated financial information. Jamieson Wellness February 2023 23
Slide 24: Summary consolidated financial information
Summary consolidated financial information. Jamieson Wellness February 2023 24
Slide 25: Reconciliation of net income to EBITDA, adjusted EBITDA and adjusted net income
Reconciliation of net income to EBITDA, adjusted EBITDA and adjusted net income 25
Slide 26: Investor Relations Contact
Investor Relations Contact: Ruth Winker (rwinker@jamiesonlabs.com) linkedin.com/company/jamiesonwellness twitter.com/JWEL_Canada Jamieson Wellness February 2023 26
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