Mcpherson's Limited · ASX:MCP
Mcpherson's — Shareholder Meeting (November 2021)
37 slides from Mcpherson's's shareholder meeting presentation, Nov 23, 2021
Slide 1: Annual General Meeting Presentation
For personal use only ANNUAL GENERAL MEETING PRESENTATION 23 NOVEMBER 2021
Slide 2: Disclaimer
DISCLAIMER The following provisions apply to this presentation. Please consider its contents carefully. Currency of information The information contained in this presentation is current as at the date of this presentation or such earlier date as specified in this presentation. For personal use only
Slide 3: Ari Mervis, Chairman
For personal use only ARI MERVIS CHAIRMAN MCP 2021 AGM 3
Slide 4: Our Board
OUR BOARD For personal use only ARI MERVIS JANE M. McKELLAR GRAHAM A. CUBBIN Independent Non-Executive Independent Non-Executive Independent Non-Executive Director and Chairman Director Director GEOFFREY R. ALISON J. COOK GRANT PECK PEARCE Independent Non-Executive CEO & Managing Non-Independent Dir
Slide 5: Agenda
AGENDA For personal use only 1. CHAIRMAN’S ADDRESS 2. CEO & MANAGING DIRECTOR’S ADDRESS 3. FORMAL BUSINESS 3.1 FINANCIAL STATEMENTS AND OTHER REPORTS 3.2 REMUNERATION REPORT 3.3 ELECTION OF A DIRECTOR – ARI MERVIS 3.4 RE-ELECTION OF A DIRECTOR – ALISON COOK 3.5 RE-ELECTION OF A DIRECTOR – GEOFFREY P
Slide 6: Online Attendees – Voting
ONLINE ATTENDEES – VOTING 123-456-789 For personal use only When open, the vote will be accessible by selecting the voting tab 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 For Against Abstain There is n
Slide 7: Online Attendees – Text Question Process
ONLINE ATTENDEES – TEXT QUESTION PROCESS 123-456-789 For personal use only When the question function is available, the messaging tab will appear at the top of the screen To submit a question, type your question in the “Ask a question” box and press the send arrow Your question will be sent immediat
Slide 8: Online Attendees – Audio Question Process
ONLINE ATTENDEES – AUDIO QUESTION PROCESS 123-456-789 For personal use only When the audio questions line is available, a link will appear on the home tab titled Asking Audio Questions If you would like to ask an audio question, pause the meeting broadcast and click on the link You will be prompted
Slide 9: Proxies and Voting
For personal use only PROXIES AND VOTING 9 MCP 2021 AGM
Slide 10: Agenda
For personal use only AGENDA 1. CHAIRMAN’S ADDRESS 2. CEO & MANAGING DIRECTOR’S ADDRESS 3. FORMAL BUSINESS 4. SHAREHOLDER QUESTIONS MCP 2021 AGM 10 10
Slide 11: Grant Peck, CEO & Managing Director
For personal use only GRANT PECK CEO & MANAGING DIRECTOR MCP 2021 AGM 11
Slide 12: FY21 Results Summary
FY21 RESULTS SUMMARY For personal use only TOTAL SALES REVENUE SALES EXCLUDING CHINA HIGHLIGHTS $200.5m $193.8m ✓ Resilient domestic performance offset by FY20: $222.2m FY20: $185.0m lower international sales of Dr. LeWinn's and one-off items UNDERLYING EBIT STRONG CASH CONVERSION ✓ Sales revenue ex
Slide 13: China Market Update
For personal use only CHINA MARKET UPDATE 2017 – 2020 2021 2022 and beyond • Dr. LeWinn’s experienced stellar • Significant change in the • Expected rebound in demand from China growth from 2017 – 2020 fueled by fundamentals of cross-border e- in FY22 has not occurred the diagou phenomenon commerce
Slide 14: Health, Wellness & Beauty – A Growing Market
HEALTH, WELLNESS & BEAUTY – A GROWING MARKET WE’RE OPERATING IN A $15.2 BILLION MARKET (AUD) For personal use only HEALTH & WELLNESS 1 BEAUTY 1 ($7.5 Billion, +5.7% vs Year Ago) ($7.7 Billion, +4.6% vs Year Ago) NATURAL HEALTH HEALTHY SKIN & BEAUT Y Immunity & Protection Cosmeceutical Sleep & Mood A
Slide 15: Operational Review
OPERATIONAL REVIEW For personal use only Target $300 million sales and $50 million EBIT in FY26 6 CORE OWNED-BRANDS & HEALTH & WELLNESS SELECTIVELY EXPAND COST KEY CHANNELS A NEW GROWTH PLATFORM INTERNATIONAL FOOTPRINT OPTIMISATION INITIATIVES TARGETED TO DELIVER INITIATIVES TARGETED TO DELIVER INIT
Slide 16: Core Owned Brands & Key Channels
6 CORE OWNED BRANDS & KEY CHANNELS PLANNED INITIATIVES For personal use only • Expand core brands via better ranging, customer and channel expansion • Tap into adjacencies and focus on innovation 6 CORE OWNED-BRANDS ACHIEVEMENTS & KEY CHANNELS Core brand growth • Core owned-brands recorded 9% growth
Slide 17: Health & Wellness – A New Growth Platform
HEALTH & WELLNESS – A NEW GROWTH PLATFORM For personal use only HIGHLIGHTS • Acquired Global Therapeutics' Fusion Health and Oriental Botanical brands in December 2020, establishing a new HEALTH & WELLNESS platform for growth – McPherson’s Health & Wellness Division. A NEW GROWTH PLATFORM • Health c
Slide 18: Health & Wellness – A New Growth Platform
HEALTH & WELLNESS – A NEW GROWTH PLATFORM PLANNED INITIATIVES For personal use only • Access ranging upside in Australian pharmacy channel, reset in New Zealand • Accelerate New Product Development (NPD) HEALTH & WELLNESS ACHIEVEMENTS A NEW GROWTH PLATFORM Stock shortages addressed • Stock shortages
Slide 19: International Footprint
INTERNATIONAL FOOTPRINT PLANNED INITIATIVES For personal use only • Build on Dr. LeWinn’s success but de-risk approach • Progress entry into targeted non-China markets SELECTIVELY ACHIEVEMENTS EXPAND INTERNATIONAL FOOTPRINT China • Announced decision to incur a one-off provision in the range of $8 m
Slide 20: Cost Optimisation
COST OPTIMISATION For personal use only OUR APPROACH Drive efficiencies in our business and optimise our supply chain and distribution process to best support our growth initiatives COST OPTIMISATION KEY ACTIVITIES Realigning Business in Reduced Senior Three Commercial Business Exiting Joint Venture
Slide 21: Trading Update and Guidance
TRADING UPDATE AND GUIDANCE • No short-term material improvement in sales into China with no expectation of a material profit from trading in China in FY22. For personal use only • Continuing improvement in domestic operations (Manicare up 18%, Swisspers up 30%) • Momentum challenged by supply chain
Slide 22: Cash and Dividends
CASH AND DIVIDENDS For personal use only Bank debt supports Balance sheet remains Underlying cash maintenance of dividend strong – net bank debt conversation forecast to policy to pay at least 60% $8.4 million be 85% to 90% in FY22 of underlying profit after tax as dividends (subject to appropriate
Slide 23: Unique Capabilities
UNIQUE CAPABILITIES For personal use only Innovation driving Supply chain and Strong demand for additional ranging and warehouse capacity offers core products value opportunities Strong balance Rejuvenated team sheet driving execution of strategy 23 MCP 2021 AGM
Slide 24: Formal Resolutions
For personal use only FORMAL RESOLUTIONS 1 FINANCIAL STATEMENTS AND OTHER REPORTS 2 REMUNERATION REPORT 3 ELECTION OF A DIRECTOR – ARI MERVIS 4 RE-ELECTION OF A DIRECTOR – ALISON COOK 5 RE-ELECTION OF A DIRECTOR – GEOFFREY PEARCE 6 APPROVAL OF ISSUE OF PERFORMANCE RIGHTS TO MANAGING DIRECTOR – GRANT
Slide 25: Agenda Item – Financial Statements and Other Reports
AGENDA ITEM 1 – FINANCIAL STATEMENTS AND OTHER REPORTS For personal use only To consider the financial statements and reports for year ended 30 June 2021 • Shareholders are not required to vote or formally approve or adopt the financial reports • Shareholders can, however, submit questions regarding
Slide 26: 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 2021 In accordance with the Corporations Act, this resolution is advisory only and does not bind the company or the directors. The directors will consider the outcome of th
Slide 27: Item – Proxy Votes
ITEM 2 – PROXY VOTES For personal use only PROXY VOTES RECEIVED (MILLIONS) ITEM 2 FOR FOR AGAINST AGAINST OPEN OPEN NO. % NO. % NO. % REMUNERATION REPORT 35.5 76.8% 10.1 21.9% 0.6 1.3% MCP 2021 AGM 27
Slide 28: Agenda Item – Election of a Director – Mr. Ari Mervis
AGENDA ITEM 3 –ELECTION OF A DIRECTOR – MR. ARI MERVIS For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “To elect as a director of the company, Mr. Ari Mervis, who having been appointed a director of MCP on 16 February 2021 in accorda
Slide 29: Item – Proxy Votes
ITEM 3 – PROXY VOTES For personal use only PROXY VOTES RECEIVED (MILLIONS) ITEM 3 FOR FOR AGAINST AGAINST OPEN OPEN NO. % NO. % NO. % ELECT ARI MERVIS 45.8 96.7% 1.0 2.0% 0.6 1.3% MCP 2021 AGM 29
Slide 30: Agenda Item – Re-election of a Director – Ms. Alison Cook
AGENDA ITEM 4 – RE-ELECTION OF A DIRECTOR – MS. ALISON COOK For personal use only To pass the following resolution as an ordinary resolution: “To elect, as a director of the company, Ms. Alison cook, who retires by rotation as a director in accordance with the company's constitution and the ASX list
Slide 31: Item – Proxy Votes
ITEM 4 – PROXY VOTES For personal use only PROXY VOTES RECEIVED (MILLIONS) ITEM 4 FOR FOR AGAINST AGAINST OPEN OPEN NO. % NO. % NO. % RE-ELECT ALISON COOK 38.1 80.3% 8.7 18.4% 0.6 1.3% MCP 2021 AGM 31
Slide 32: Agenda Item – Re-election of a Director – Mr. Geoffrey Pearce
AGENDA ITEM 5 – RE-ELECTION OF A DIRECTOR – MR. GEOFFREY PEARCE For personal use only To pass the following resolution as an ordinary resolution: “To elect, as a director of the company, Mr. Geoff Pearce, who retires by rotation as a director in accordance with the company's constitution and the ASX
Slide 33: Item – Proxy Votes
ITEM 5 – PROXY VOTES For personal use only PROXY VOTES RECEIVED (MILLIONS) ITEM 5 FOR FOR AGAINST AGAINST OPEN OPEN NO. % NO. % NO. % RE-ELECT GOEFFREY PEARCE 37.4 80.0% 8.6 18.4% 0.8 1.6% MCP 2021 AGM 33
Slide 34: Agenda Item – Approval of Issue of Performance Rights to Managing Director
AGENDA ITEM 6 – APPROVAL OF ISSUE OF PERFORMANCE RIGHTS TO THE MANAGING DIRECTOR, MR. GRANT For personal use only PECK, UNDER THE MCPHERSON'S LIMITED PERFORMANCE RIGHTS PLAN To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That for the purposes of part 2e
Slide 35: Item – Proxy Votes
ITEM 6 – PROXY VOTES For personal use only PROXY VOTES RECEIVED (MILLIONS) ITEM 6 FOR FOR AGAINST AGAINST OPEN OPEN NO. % NO. % NO. % APPROVAL OF PERFORMANCE RIGHTS GRANT PECK 22.9 48.6% 23.7 50.1% 0.6 1.3% MCP 2021 AGM 35
Slide 36: Q & A Session
For personal use only Q & A SESSION 36
Slide 37: Thank You
For personal use only THANK YOU A’KIN Natural Deodorant MCP 2021 AGM 37