Venture Life Group Plc · LSE:VLG
Venture Life — FY2020 Earnings Presentation
27 slides from Venture Life's earnings presentation, March 2021
Slide 1: The partner of choice for self-care products
The partner of choice for self-care products Venture Life Group plc Full Year Results Presentation 2020 March 2021
Slide 2: Disclaimer
This document (the "Presentation") is being provided to a limited number of parties who have previously expressed an interest in acquiring an interest (the "Investor Interest") in Venture Life Group plc (the "Company"). If you are in any doubt about the investment to which the Presentation relates,
Slide 3: 2020 highlights
2020 highlights Exceptional Financial Performance • Group revenues increase +49% to £30.1 million (2019: £20.2 million) • Adjusted EBITDA1 increased +105% to £6.1 million1 (2019: £3.0 million) in line with upgraded expectations • Continued growth through our organic and acquisitive strategy Exceptio
Slide 4: 2020 financial highlights
2020 financial highlights • Revenues increased +49% to £30.1 million (2019: £20.2 million) • Gross profit increased +61% to £12.8 million (2019: £8.0 million) • Gross margin percentage increased to 42.7% (2019: 39.6%) • Adjusted EBITDA1 increased +105% to £6.1 million (2019: £3.0 million) • Profit a
Slide 5: Our platform for sustainable growth
Our platform for sustainable growth Strategy: Our growth strategy aims to leverage the scalable platform built at Venture Life Venture Life Group plc 5
Slide 6: Global distribution network
Global distribution network Partners Markets worldwide worldwide 113 44+ Operational locations Employees 3 119 Retail Partners International Partners UK Netherlands Venture Life Group plc 6
Slide 7: Self-care product portfolio
Self-care product portfolio Key self-care categories Oral Health Proctology Nail Fungus – Foot Care Women’s Health Venture Life Group plc 7
Slide 8: Expertise by therapeutic area
Expertise by therapeutic area 2020 Group Revenues by main therapeutic areas PharmaSource • Long standing Group expertise in oral BV and skincare Other 9% 3% Proctoeze Oral care 2% Women's • Experts in products registered as 21% Health Medical Devices and Cosmetics Disinplus 2% 12% • Wide therapeutic
Slide 9: PharmaSource acquisition – 2020 performance
PharmaSource acquisition – 2020 performance • PharmaSource BV acquired 24th January 2020 – consideration €6.5 million total • Medical device portfolio – dermatology, women’s healthcare • Revenue grew by 20%1 to £2.8 million (2019: £2.3 million) • Gross margin 2020 £1.4 million (2019: £1.3 million) •
Slide 10: Our Manufacturing Scalability
Our Manufacturing Scalability 2020 Group revenue £30.1m Utilisation (as % of 55m units per year 51% capacity) Units produced in 2020 28m Capacity with £3m additional capex 75m Additional capacity with a further £7m 100m additional capex No. of employees in production 84 Average employee tenure 13 ye
Slide 11: Financial Highlights
Financial Highlights
Slide 12: 2020 profit and loss account
2020 profit and loss account £ million 2020 2019 % change Revenue 30.1 20.2 +49% Comments: Gross Profit 12.8 8.0 +61% Gross Margin 42.7% 39.6% • +49% Revenue growth reflects Total admin expenses 9.3 6.7 +39% organic (£7.1m) and acquired (£2.8m) Adjusted EBITDA1 6.1 3.0 +105% • Leverage of factory Ad
Slide 13: Revenues 2020
Revenues 2020 • Revenues increased 49% to £30.1 million (2019: £20.2 million) CAGR £000s Revenue split between Venture Life Brands and Customer Brands PharmaSource acquired 27% 2014-2020 Dentyl acquired UltraDEX acquired Customer Brands Venture Life Brands Venture Life Group plc 13
Slide 14: Balance sheet at 31 December 2020
Balance sheet at 31 December 2020 £ million December December Comments: 2020 2019 • Inclusion of €6.5m Intangible non-current 27.0 20.7 assets acquisition of PharmaSource BV Tangible non-current assets 7.0 4.2 Cash 42.1 10.7 • Significant factory investment (machinery Other current assets 16.5 11.4
Slide 15: Commercial Highlights
Commercial Highlights
Slide 16: Brand highlights 2020 - Dentyl
Brand highlights 2020 - Dentyl UK Market £ Retail Value Growth YoY – 12 w/e • +80% increase in revenues to £4.3m (2019: £2.4m) Dentyl 39% UK - Dentyl Colgate 32% • +33% increase in revenues to £2.6m (2019: £2.0m) Oral B 26% • Launched in Boots, Alliance Healthcare, B&M & Corsodyl 22% BodyCare • Posi
Slide 17: Brand highlights 2020 - UltraDEX
Brand highlights 2020 - UltraDEX Mouthwash Brand – Retail Value Sales #SMELLEPHANTINTHEROOM Elevator MAT December 2019 & 2020 2 Pitch £3.3m • -4% decrease in revenues to £3.0m (2019: £3.2m) £2.4m UK - UltraDEX £2.0m £2.1m • Revenues impacted by COVID-19: -20% in H1 2020 and -6% in H2 2020 • Lower fo
Slide 18: International highlights 2020
International highlights 2020 PharmaSource products • Revenues increased 20%1 to £2.8m (2019: £2.3m) Integration on track - manufacturing completes H1 2021 • Performance Venture Life brands • Revenues increased +11% on VLG brands • 17 new long term distribution agreements signed Innovation • 12 new
Slide 19: M&A focus
M&A focus • Placing and Open offer raised £34.1 million net of expenses in December 2020 • Debt facilities available of up to £50 million, at sensible debt/EBITDA levels, and at normal commercial rates • Group is cash generative • Hence funds of over £80 million available for acquisitions • Resource
Slide 20: Conclusion – an outstanding year
Conclusion – an outstanding year • Remained operational throughout entire 2020 • Available cash and debt resources to spend of over £80 million • Significantly increased operating capacity, and scalable further • Current EBITDA1 margin increased to 20.4% (2019: 14.8%) • Track record of earnings enha
Slide 21: Appendices
Appendices
Slide 22: An experienced management team
An experienced management team Jerry Randall Sharon Collins Gianluca Braguti Andrew Waters Chief Executive Officer Chief Commercial Officer Chief Manufacturing Jerry Randall Chief Financial Officer Officer • Experienced executive • Over 20 years experience • Chartered Accountant director in internat
Slide 23: Operating leverage delivering strong profit growth
Operating leverage delivering strong profit growth Partners M&A Operational Innovation Strategic Leverage Drivers Existing and new Accelerated profitability New products Unloved brands that distribution partners developed in-house can be leveraged through increased throughput Group revenue (£m) Grou
Slide 24: Our market opportunity
Our market opportunity Over-the-counter (OTC) Global Market³ 2018 ³ 2025 $127 CAGR (2019-25): 5.8% >$185 billion billion Sources: 1. United Nations (2017). Venture Life Group plc World Population Prospects: the 2017 Revision 24 2. National Audit Office – Financial sustainability of the NHS 3. Global
Slide 25: Net Cash position remains strong
Net Cash position remains strong £’M December December Comments 2020 2019 Italian term loans 5.7 3.2 €3.7m principal Invoice financing 0.9 1.2 On-going facility Cash 42.1 10.7 Net Cash 35.5 6.3 Strong sustained net cash position Net cash (after 30.9 3.7 Finance Leases) + Venture Life Group plc 25
Slide 26: Italian loan position 31 December 2020
Italian loan position 31 December 2020 Loan Balance Planned Full Interest rate €’000 €’000 Repayment BNL SPA 300 50 30/09/20 1% +3m Euribor Intesa SPA 2,000 1,967 30/11/24 0.90% +6m Euribor Unicredit SPA 800 720 31/05/23 1.05% + 6m Euribor BPM 1,000 1,000 28/06/2024 1.40% RIBA 1,387 On demand £<1% +
Slide 27: Shareholder register
Shareholder register Major Shareholders The percentage of shares that are not in public hands is 26.1%. Shareholder Number of shares held % issued share capital Slater Investments 19,121,431 15.20% Blackrock 10,287,191 8.18% BGF Investment Management Limited 9,581,824 7.61% Hargreaves Lansdown 7,470