Jamieson Wellness, Inc. · TSX:JWEL
Jamieson Wellness — Q3 2023 Earnings Presentation
26 slides from Jamieson Wellness's earnings presentation, November 2023
Slide 1: Investor Presentation Q3 2023
2 0 2 3 I N V E S TO R P R E S E N TAT I O N W E L L N E S S Q3 2023 J A M I E S O N 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: Jamieson Wellness Today
JAMIESON WELLNESS TODAY Jamieson Wellness is a growing global health and wellness company with a leadership position in Canada We optimize whole health at every stage. We inspire consumers to meet their individual 2 0 2 3 health and wellness goals. W E L L N E S S We are experts, building relevant q
Slide 4: 100 Years of expertise in Canada. Exportable Worldwide
JAMIESON WELLNESS TODAY 100 Years of expertise in Canada. Exportable Worldwide Established in 1922, Jamieson Wellness is the clear leader in the Canadian vitamin, mineral and supplement marketplace. • Rich VMS consumer insights rooted in a century of industry experience and a deep knowledge of the c
Slide 5: Decades of driving growth
Decades of driving growth KEY GROWTH MILESTONES GUIDANCE $680-690 2014 $800,000 Refocused strategy 2023 REVENUE1 around innovation & $700,000 *5-year international growth CAGR 12.7% $600,000 $403.7 2017–2022 (Since IPO) 2020 REVENUE1 2017 $500,000 $300.6 Acquired specialty 2 0 2 3 2017 REVENUE1 bran
Slide 6: Consistently delivering value
Consistently delivering value ADJUSTED EBITDA & GROSS MARGIN EARNINGS PER SHARE $140-$144 $1.56- $1.63 $1.55 $123.8 $1.32 $100.1 $1.16 $88.0 $0.96 2 0 2 3 $75.9 $0.85 $67.6 W E L L N E S S 22.6% 22.0% 22.2% 21.8% * 21.1% 20.9% *Includes the temporary J A M I E S O N impact of our youtheory acquisiti
Slide 7: Consistently delivering value
Consistently delivering value SOLID GROWTH IN CASH FLOW FROM OPERATIONS ANNUAL DIVIDEND GROWTH $0.72 $71.7 $77.6 $0.64 $0.55 $60.8 $0.47 $50.9 $0.38 2 0 2 3 $0.34 W E L L N E S S $33.0 72% 67% 69% 63% J A M I E S O N 49% *Includes our youtheory acquisition & IT investment costs 2018 2019 2020 2021 2
Slide 8: Growth propelled by a global health and wellness megatrend
Our growth is being propelled by a global health and wellness megatrend 2 0 2 3 W E L L N E S S Aging Population Increasing Focus Rising Disposable Informed Consumers & Younger New on Self-Care & Income in with more Access to Consumers Preventative Health Emerging Markets Information J A M I E S O N
Slide 9: Our brands meet consumers throughout their lifetime health and wellness journeys
Our brands meet consumers throughout their lifetime health and wellness journeys GLOBAL BRAND GLOBAL BRAND Highest quality supplements, backed Here for your health by science that are at every stage of life made for all of you 2 0 2 3 W E L L N E S S J A M I E S O N Fastest moving #1 consumer health
Slide 10: Our industry-leading commitment to quality
Our industry-leading commitment to quality 2 0 2 3 W E L L N E S S 360 J A M I E S O N All products Third-party Primary Canadian tablet Numerous manufacturing manufactured certifications such as and soft gel manufacturing certifications including Health according to “360 NSF and DNA facilities regis
Slide 11: We aspire to surpass $1B in net revenue
We aspire to surpass $1B in net revenue OUR PILLARS FOR GROWTH 2 0 2 3 W E L L N E S S U.S.A. China Canada International J A M I E S O N 11
Slide 12: Win in the world's largest VMS market
Win in the world’s largest VMS market SIZE OF MARKET OUR FOCUS SYNERGY OPPORTUNITIES 40B+ • Quality-conscious consumers seeking Channel expansion in food, drug widely-accessible natural health solutions from a trusted brand and mass and ecommerce $ growth ¹ • Build a scaled presence with youtheory,
Slide 13: Expand in the world's fastest-growing market
Expand in the world’s fastest-growing market SIZE OF MARKET OUR FOCUS TOP FIVE PURCHASE DRIVERS • 300+ million quality-conscious consumers 30B+ seeking widely-accessible natural health Our brand delivers what the Chinese solutions from a trusted brand consumer is asking for: • Continued growth in cr
Slide 14: Maintain momentum in Canada
Maintain momentum in Canada SIZE OF MARKET OUR FOCUS OPPORTUNITIES 2B+ • Quality-conscious consumers Expanding household and seeking widely-accessible natural category penetration through $ health solutions from a trusted brand innovation and education ¹ 2 0 2 3 • Expand on Jamieson’s leadership pos
Slide 15: International excellence
International excellence 2023 GROWTH TARGET OUR FOCUS OPPORTUNITIES • Quality-conscious consumers seeking Investment in marketing and innovation 5%-10% widely-accessible natural health solutions from a trusted brand Leverage strong distributor • Expansion in existing markets partnerships internation
Slide 16: Leveraging our assets
Leveraging our assets We engage in highly selective Strategic Partner manufacturing opportunities designed to: Broaden customer relationships Increase productivity and improve asset utilization 2 0 2 3 W E L L N E S S Provide direct benefits to branded strategic initiatives J A M I E S O N 16
Slide 17: Investing in a sustainable future
Investing in a sustainable future Recently disclosed climate commitments including 2030 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, equity and inclusion targets including fair 2025 representation of leadership and
Slide 18: Our platform for long-term value creation
Our platform for long-term value creation Megatrends & Consumer Insights 2 0 2 3 CANADA U.S.A. CHINA INTERNATIONAL W E L L N E S S Commercial & Operational Capabilities J A M I E S O N Focus: ROI, fiscal discipline, leverage driving margin improvement ESG, People, Values & Culture 18
Slide 19: Appendix
APPENDIX J A M I E S O N W E L L N E S S 2 0 2 3 19
Slide 20: Financial Performance: 2023 Guidance
Financial Performance: 2023 Guidance METRIC 2023 TARGET RANGE 2022 GROWTH RATE Total Revenue $680 - $690 $547 24% - 26% Jamieson Brands Segment • Canada $319 - $322 $310 3% - 4% • U.S. (youtheory) $150 - $155 $68 120% - 127% Proforma: 15% - 19% • China $50 $28 ~75% Proforma: 30% 2 0 2 3 • Internatio
Slide 21: Summary Consolidated Financial Information
Summary Consolidated Financial Information 2 0 2 3 W E L L N E S S J A M I E S O N 21
Slide 22: Summary Consolidated Financial Information
Summary Consolidated Financial Information Three Months Ended Nine Months Ended September 30, September 30, ($ in millions, except as otherwise noted) 2023 2022 % Change 2023 2022 % Change Revenue 151.5 138.9 9.1% 455.8 354.6 28.5% Cost of sales 100.4 90.4 11.0% 301.3 227.4 32.5% Gross profit margin
Slide 23: Reconciliation of net income to EBITDA, adjusted EBITDA and adjusted net income
Reconciliation of net income to EBITDA, adjusted EBITDA and adjusted net income Three Months Ended Nine Months Ended Fiscal Year Ended September 30, September 30, December 31, ($ in millions, except as otherwise noted) 2023 2022 2023 2022 2022 2021 2020 2019 2018 Net earnings 7.8 10.9 22.0 30.7 52.8
Slide 24: Expand in the world's fastest-growing market
Expand in the world’s fastest-growing market Two major strategic actions to accelerate growth in China: NOVEMBER 2022 1 Announced acquisition of Chinese distributor assets • Closed in the second quarter providing full control of the value chain in China • Focus on brand building activities and direc
Slide 25: Acquisition rationale
acquisition rationale Transaction Closed July 2022 Target Acquisition Criteria • Accretive transaction with significant potential for • $100M+ target revenues value creation • Highly attractive expansion opportunity into large • Focused on expanding our geographic and fast-growing U.S. VMS market fo
Slide 26: Investor Relations Contact
INVESTOR RELATIONS CONTACT: Ruth Winker rwinker@jamiesonlabs.com linkedin.com/company/jamiesonwellness twitter.com/JWEL_Canada 2 0 2 3 W E L L N E S S J A M I E S O N 26