Slide 1: For personal use only
For personal use only
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. Summary information Th
Slide 3: FY22 Agenda and Speakers
FY22 Agenda O1 Overview O2 Business Unit Performance O03 Financial Results 04 Summary and Outlook Our Speakers GRANT PECK CEO & Managing Director PAUL WITHERIDGE CFO SUPRIYA SINGH Commercial Director - ANZ JADE PEAK Commercial Director - International
Slide 4: FY22 Overview
For personal use only FY22 Overview
Slide 5: FY22 Overview
FY22 Overview TOTAL SALES REVENUE on FY21: $200.5m UNDERLYING EBIT on FY21: $10.8m GEARING SALES GROWTH OF CORE OWNED BRANDS UNDERLYING PBT on FY21: $9.6m DIVIDEND FY22 Summary Sales up 7%, in line with stated guidance, driven by strong growth in six core owned brands and full year contribution from
Slide 6: Market demand drivers and headwinds
For personal use only Demand for at-home beauty treatments Demand for sustainable products Heightened awareness of internal health Growth of pro-active beauty Growth in “clean” brands Weakening consumer confidence Sea freight inflation Diagou channel contractions Commodity cost pressures
Slide 7: Health & Beauty remains resilient in challenging inflationary environment
Total consumption at its lowest levels but Health & Beauty remains resilient in challenging inflationary environment TOTAL STORE UNIT SALES +6.6% -3% Rev/Unit Units Units +3% Sales Quarterly Growth Yearly Growth +4.6% Rev/Unit Sales HEALTH & BEAUTY UNIT SALES +3% +8% Units Units Quarterly Growth Yea
Slide 8: Reset year has created a platform for growth
Reset year has created a platform for growth 1. New, 5. Price leadership, 2. Continued 3. Ranging 4. Growing increases structure, innovation increments with winning business and focus on driving brand customers in impremented processes NPD performance partnership environment and focus 6. Strategic A
Slide 9: McPherson's appointed exclusive distributor for select CWH brands
McPherson's appointed exclusive distributor for select CWH brands Brands available to all pharmacies in McPherson’s distribution partner network include Wagner Vitamins, Bondi Protein, INC and Microgenics Increased ranging of MCP products in CWH ANZ and recognition of MCP as a preferred supplier CWH
Slide 10: Our People & Purpose
s Our People & Purpose Strong focus during FY22 on team development alignment and resilience - Leaner and more focused senior management team (e) i Restructured business units Hl with highly experienced } Launching refreshed purpose executives (ANZ Health & fe) and values Beauty and International) C
Slide 11: FY22 Business Unit Performance
FY22 For personal use only Business Unit Performance
Slide 12: For personal use only
For personal use only 13.9 5.0 Source: Data sourced from IRI MarketEdge based on data definitions provided by McPherson's Consumer Products. Australian Pharmacy & Grocery Weighted Market. Beauty Accessories , Hair Accessories Category MAT 05//12/21; Cotton, Facial Skincare, Haircare, BWF category MA
Slide 13: ANZ Beauty - FY22 Highlights
ANZ Beauty - FY22 Highlights Segment FY22 FY21 Change Change Performance ($m) ($m) ($m) (%) Sales Revenue 187.7 178.4 9.3 5% Underlying EBIT 16.1 16.5 (0.4) (2%) FY22 Sales vs FY21 Manicare A +14% Lady Jayne A +14% Dr LeWinn's A +8% Akin - Swisspers A +20% Multix A +10% Sales of owned brands increas
Slide 14: ANZ Health - FY22 Highlights
ANZ Health - FY22 Highlights = FY22 reflects first full year of ownership of Fusion and Oriental Botanicals brands = Difficult IH22 with many health stores closed due to COVID-19 “Ye: On trend launch of Sp Award Winning Integrated -JR~ Immunity & Stress Marketing . Like-for-life growth of 19% in 2H2
Slide 15: Growth Tactics
Growth Tactics Integrated Continued marketing Beauty & Health campaigns service alignment
Slide 16: ANZ - Core Brand Performance
ANZ - Core Brand Performance Premium power accessories & tools launches have accelerated growth of Manicare to +15% and Lady Jayne to +20% since launch Leader in sustainability with Swisspers launch of paper stems delivering +$5.6M in retail sales and Multix partnering with retailers on Greener laun
Slide 17: ANZ - Core Brand Performance
ANZ - Core Brand Performance Dr. LeWinn's launch of Collagen Powders and Liquid shots drove strong growth and is now 10% of total brand sales, growing by +145% Fusion continues to innovate behind trending ingredients and won prestigious awards for Wintering Well integrated marketing campaign R So Sy
Slide 18: International - FY22 Highlights
International — FY22 Highlights M FY22 FY21 Change Change Segment performance ($m) ($m) ($m) (%) Sales revenue 7.9 12.4 (4.5) (36%) Underlying EBIT (2.6) (1.7) (0.9) (53%) stock weight of Dr. LeWinn’s : Demand challenges with International market access _- addressed in FY22 H1 [29 inbound tourism an
Slide 19: International - FY23 Strategic Initiatives
International - FY23 Strategic M sy Initiatives MCPHERSON'S Ss Selective expansion supported by omni channel distribution Leverage continued growth in beauty and personal care globally Ecommerce as lead channel for entry and expansion New market entry with prudence Diversified portfolio and platform
Slide 20: FY22 Financial Results
For personal use only FY22 Financial Results
Slide 21: 7% Growth in FY22 Sales Revenue
7% Growth In FY22 Sales Revenue All figures $m FY22 FY21 % change Total Group Sales 214.0 200.5 6.7% ANZ - Beauty & Household Consumables Skin, Hair & Body 24.4 23.0 5.8% Domestic sales of Dr. LeWinn’s grew 8%, A'kin sales were steady Essential Beauty 75.1 65.5 14.6% 20% growth in Swisspers, 14% gro
Slide 22: 9% Growth in FY22 Underlying EBIT
9% Growth In FY22 Underlying EBIT $AM $25 $23 $21 $19 $17 $15 $13 $11 $9 $7 $5 10.8 FY2021 47 Contribution increase from Beauty Brands 27 Contribution increase from Multix 19 Full year EBIT from Health Brands 26 Improvement in FX outcome (4.4) Commodity cost increases (3.6) Shipping container cost (
Slide 23: Low Gearing and Net Bank Debt
For personal use only Low Gearing and Net Bank Debt Gearing* % (30 June) 30.0% — 29.2% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% *Excludes lease liabilities Net bank debt* ($m - 30 June) 40» 35 30 - 25 4 20 1S 10- Highlights: Net bank debt remains low at $1.7m at 30 June 2022. Gearing remains low at 1% at 3
Slide 24: Dividend & Capital Management
Dividend & Capital Management McPHERSON'S Dividend * Final ordinary dividend of 2.0 cents per share (cps) fully franked (FY21 1.5 cps). + Full year ordinary dividends of 5.0cps(FY21: 5.0 cps). * Consistent with policy to pay a minimum of 60% underlying profit after tax. * Final dividend payable 23 S
Slide 25: Summary & Outlook
For personal use only Summary & Outlook
Slide 26: For personal use only
For personal use only • • • • • • ▪
Slide 27: Q+A
For personal use only Q+A
Slide 28: Appendix - Further commentary on underlying earnings
Appendix 1 - Further commentary on M underlying earnings $m) $m) Sales revenue an S 200. ; 6.7% Refer detailed presentation Other income -42.7% Total revenue and other income muss aos 6.7% Underlying Expenses Materials and consumables (113.8) (106.6) 6.7% Increase consistent with Revenue Full year i
Slide 29: Appendix - Reconciliation of underlying to statutory profit before tax
Appendix 2 - Reconciliation of underlying M to statutory profit before tax dm) FY 21 ($m) Underlying profit before tax 10.7 9.6 Significant items before tax included in statutory profit / (loss) before tax Dr. LeWinn’s inventory provision (9.4) 0.0 Chemist Warehouse Strategic Alliance establishment
Slide 30: Thank You
For personal use only Thank You