Jamieson Wellness, Inc. · TSX:JWEL
Jamieson Wellness — Investor Presentation (August 2021)
27 slides from Jamieson Wellness's investor presentation, August 2021
Slide 1: Global Growth: Investor Update August 2021
GLOBAL GROWTH INVESTOR UPDATE AUGUST 2021 Jamieson Wellness May 2021 1
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, business
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. • Manufacturer and marketer of Jamieson, the #1 VMS brand in Canada.1 Manufacturers and marketers of Progressive, Precision and Iron Vegan brand
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 Empowering women to On the cutting edge of Leveraging the power of Supporting performance easier for everyone. live life to the fullest. health and wel
Slide 5: Our industry-leading commitment to quality
Our industry-leading commitment to quality. • All products manufactured according to “360 Pure”, our industry- leading, full circle quality assurance protocol • Third-party TRU-ID TM certification (DNA verified) on all herbal and probiotic products • Primary tablet and soft gel manufacturing facilit
Slide 6: Jamieson Wellness Today: A consistent history of organic revenue growth
Jamieson Wellness Today: A consistent history of organic revenue growth. CAGR $500,000 10.3% 2017–2020 $450,000 (Since IPO) $400,000 $350,000 $300,000 8.9% CAGR 2010–2020 $250,000 $200,000 $150,000 CAGR $100,000 8.3% 2000–2020 $50,000 $0 1985 1990 1995 2000 2005 2010 2015 2020 * 2014 to 2020 per aud
Slide 7: Financial Performance: Growth and momentum
Financial Performance: Growth and momentum. TOP-LINE MOMENTUM ADJUSTED EBITDA GROWTH & MARGIN $435- $445 $97-$100 $404 $88.0 $345 $75.9 $320 $301 $67.6 $61.5 $248 $46.8 22.0% 21.8% 22.4% 21.1% 20.5% 18.8% 2016A 2017A 2018A 2019A 2020A 2021E 2016A 2017A 2018A 2019A 2020A 2021E REVENUE ADJ. EBITDA ADJ
Slide 8: We've built a foundation for long term growth
We’ve built a foundation for long term growth. CONSUMER TRENDS DOMESTIC INTERNATIONAL CHINA OPERATING LEVERAGE ACQUISITIONS ESG, PEOPLE, VALUES, AND CULTURE Jamieson Wellness August 2021 8
Slide 9: 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 Jamieson Wellness August 2021 9
Slide 10: 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 11: Brand and Product Marketing
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 12: Product Innovation: Led by R&D professionals and Scientific Advisory Board
Product Innovation: Led by our industry-leading R&D professionals and Scientific Advisory Board. BRANDED REVENUE GROWTH FROM INNOVATIONS Jamieson’s 2019 innovation was 6X more efficient than our competitors’.1 $7.0 $5.0 $6.0 $4.0 3.2% 2.3% 2.1% 1.9% 2017 2018 2019 2020 BRANDED DOMESTIC % OF TOTAL BR
Slide 13: Multi-Channel Distribution
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 August 2021 13
Slide 14: Our Jamieson brand is now in more than 45 countries and regions
Our Jamieson brand is now in more than 45 countries and regions and growing. • Fastest growing segment with 20-25% guided growth on a constant currency basis • Key geographies include China, Eastern Europe, Middle East, and INTERNATIONAL REVENUE Southeast Asia 7.5%-12.5% 50% • Focus on market penetr
Slide 15: 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 (CBEC) platforms (T-mall, VIP.com, JD.com, etc.) w
Slide 16: China: The rise of social commerce
China: The rise of social commerce. • Live streaming KOLs (Key Opinion Leaders) • A more intuitive and vivid shopping experience • Efficient conversion rate • Visible marketing effect, gradually becoming a new growth force of e-commerce platforms and content platforms • 68% of consumers in China say
Slide 17: Our global strategic partnership with Costco
Our global strategic partnership with Costco. • Continuing to broaden international expansion with Costco • International branded business with Costco in the UK, Iceland, Spain, France, Taiwan & China • Significant growth in marketing spend and execution in Costco China in 2020 and 2021 • Expansion
Slide 18: Acquisition: Complementary brand(s) to grow our footprint
Acquisition: Complementary brand(s) to grow our footprint in existing mature markets. ~$100M+ 20 % TARGET REVENUES REQUIRED IRR • Focused on expanding our geographic footprint in mature VMS markets (USA, Western Europe, etc.) • Looking for quality brand(s) with mass consumer appeal and broad categor
Slide 19: Utilizing leverage: Expanding margins
Utilizing leverage: Expanding margins. BRANDED MARGIN EXPANSION • Increased volume driving operating leverage 25.8% • Capital investment driving increased 25.4% 24.7% capacity and efficiencies • Demonstrated margin expansion of 22.4% 22.3% 300 basis points from 2016-2020 • Plans to grow margins to f
Slide 20: Environmental, Social and Governance
Environmental, Social and Governance: A natural extension of our vision of improving the world’s health and wellness. • Developed internal team to evaluate environmental impacts and sustainability opportunities • Diversity, equity and inclusion targets in place including fair representation of leade
Slide 21: A platform for long-term value creation
A platform for long-term value creation. • Global consumer health and wellness megatrend M&A • Domestic growth • International expansion • Brand growth in China • Operating leverage and acquisition opportunities • Environmental, social and governance practices • People, values, and culture Jamieson
Slide 22: Appendix
APPENDIX Jamieson Wellness August 2021 22
Slide 23: Financial Performance: 2021 Guidance
Financial Performance: 2021 Guidance. METRIC 2020A 2021 TARGET RANGE GROWTH RATE Total Revenue (millions) $404 $435 - $445 7.8% – 10.2% Jamieson Brands Segment Growth Rate 3.7% – 7.1% • Domestic Branded 3% – 6% • Jamieson International 7.5% – 12.5% • Strategic Partners Growth Rate 20% - 25% Adj. EBI
Slide 24: Summary consolidated financial information
Summary consolidated financial information. Fiscal Year Ended December 31, ($ in millions, except as otherwise noted) 2016 2017 2018 2019 2020 Revenue 248.3 300.6 319.8 345.0 403.7 Cost of sales 167.5 195.8 204.4 215.2 258.9 Selling, general and administrative expenses 44.8 53.6 65.2 69.9 76.3 Share
Slide 25: Summary consolidated financial information
Summary consolidated financial information. Three Months Ended Six Months Ended June 30, June 30, ($ in millions, except as otherwise noted) 2020 2021 % Change 2020 2021 % Change Revenue 93.2 110.6 19% 177.7 208.8 17% Cost of sales 60.3 72.2 20% 113.5 136.6 20% Gross profit margin 35% 35% 0% 36% 35%
Slide 26: 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, ($ in millions, except as otherwise noted) 2017 2018 2019 2020 2020 2021 2020 2021 Net earnings (loss) (23.8) 26.7 31.7 41.6 6.0 11.5 1
Slide 27: Investor Relations Contact: Ruth Winker
Investor Relations Contact: Ruth Winker (rwinker@jamiesonlabs.com) ca.linkedin.com/company/jamiesonwellness twitter.com/JWEL_Canada Jamieson Wellness August 2021 27
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