Phibro Animal Health Corporation · NASDAQ:PAHC
Phibro Animal Health — Investor Presentation (August 2022)
29 slides from Phibro Animal Health's investor presentation, Aug 24, 2022
Slide 1: Phibro Animal Health Corporation Company Overview
Phibro Animal Health Corporation Company Overview As of August 24, 2022
Slide 2: Important Information
Important Information Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements that are subject to risks and uncertainties, including with respect to future debt and leverage levels. All statements other than statements of historical or current
Slide 3: An Evolution
An Evolution Acquired Acquired Acquired Acquired Launch Koffolk, an Israeli global medicated feed OmniGen-AF and MVP Laboratories Rejensa; our first animal nutrition additive business from Animate nutritional animal vaccine and companion animal business Pfizer Inc. specialty products adjuvants busin
Slide 4: About Us
About Us I N BU S I N E S S > 1 , 8 0 0 E M P L OY E E S since 1946 manufacturing products at 12 sites, selling Manufacturing ~780 products on product 12 sites, lines selling 1,625 product presentations W E M A N U FA C T U R E W E HS AVALEE>S3 I, 7 N0> 08 0 C O U N T R I E S 70% of our products C U
Slide 5: Our Leadership
Our Leadership Jack C. Bendheim Damian Finio Chairm an of the Board of Directors, Chief Financial Officer President and Chief Executive Officer ▪ Joined Phibro in 2020 ▪ Joined Phibro in 1969 ▪ Chief Financial Officer since 2020 ▪ President since 1988 ▪ 30+ years relevant financial experience ▪ Chie
Slide 6: Core Strengths
Core Strengths ENDURANCE Established in 1946 as a chemical company, BREADTH Approximately 780 product lines sold in >80 transforming into a leader in the countries spanning three business segments: 01 Animal Health industry driven by acquisitions and organic growth 04 Animal Health, Mineral Nutritio
Slide 7: Growth Since the IPO
Then & Now 7 IPO Growth Strategies 1 Growth GROWTH SINCE since THE IPO the 2 IPO 2 Continue Our Expansion into High-Growth Increased from selling in 65 countries to >80 23% Emerging Markets Leverage Proprietary Vaccine Technologies to Vaccine net sales increased from $29 to $88 million Increase Sale
Slide 8: Capitalization
Capitalization We strengthened the balance sheet while increasing the dividend per share by 20%: Net Leverage 1 Liquidity 2 Dividend per share 3 4.5x $0.48 $194 3.1x $78 $0.40 1 Net leverage = Total debt less cash equivalents divided by trailing twelve month adjusted EBITDA 2 Liquidity = Cash equiva
Slide 9: Business Segments
Business Segments FISCAL Sales Adj. EBITDA YEAR 2022 $942m $111m ANIMAL Sales Adj. EBITDA MINERAL Sales Adj. EBITDA 1 HEALTH $607m $124m 2 NUTRITION $260m $24m Sales MFAs MFAs & other - Antimicrobials, anticoccidials, Trace and macro minerals, organic trace minerals, premixes, Selenium rumen functio
Slide 10: Net Sales & Adjusted EBITDA Trend
Net Sales & Adjusted EBITDA Trend Consolidated Net Sales Adjusted EBITDA $960-1,000$67 $113-118 $942 $833 $653 Range of Range of $113-118 $960-1,000 million; million; year-on- year-on- year year growth of growth of 2-6% 2-6% Animal Health Mineral Nutrition Performance Products $ in millions Net sale
Slide 11: Net Sales Allocation
Net Sales Allocation By Segment 64% 28% 8% Animal Health Mineral Performance Nutrition Products 11 By Region 60% 20% 13% 7% USA Latin America Europe, Middle Asia Pacific & Canada East & Africa By Species 34% 20% 13% 9% 24% Poultry Dairy Beef Swine Other Cattle Cattle Net sales allocation as disclose
Slide 12: Animal Health segment
Animal Health segment Phibro.
Slide 13: Animal Health Net Sales & Adjusted EBITDA trend
Net Sales & Adjusted EBITDA trend Animal Health Net Sales Adjusted EBITDA $607 $546 $385 MFAs and other Nutritional Specialties Vaccines $ in millions Net sales and Adjusted EBITDA reflect fiscal years ended June 30 12 13
Slide 14: Animal Health - Key Products
Animal Health - Key Products Medicated Feed Additives Nutritional Specialties Vaccines Antimicrobials Anticoccidials Anthelmintics and Rumen Function 13 14
Slide 15: Companion Animal Development Pipeline
Companion Animal Development Pipeline Multiple data sources project the Companion Animal Health industry to grow at a CAGR of ~8-10% from 2022 to 2029. IN DEVELOPMENT O N T H E M AR K E T Derma care O N T H E M AR K E T • Licensed a novel early-stage atopic dermatitis compound • Estimated Addressabl
Slide 16: Our First Companion Animal Product
Our First Companion Animal Product Estimated Addressable Market* for pet joint supplements in the US: $625 million We project sales will double year over year in FY 2023 * Estimated Addressable Market amounts are management’s estimate as of the date hereof derived from publicly available information
Slide 17: Mineral Nutrition segment
Mineral Nutrition segment 16 17
Slide 18: Mineral Nutrition Highlights
Mineral Nutrition Highlights A complement to our Animal Health segment We develop and Trace and macro mineral products including copper, zinc, cobalt, iron, selenium, manganese, magnesium, iodine, others manufacture custom trace Organic trace minerals mineral pre-mix Fortifies and maintains an optim
Slide 19: Mineral Nutrition Net Sales & Adjusted EBITDA Trend
Net Sales & Adjusted EBITDA Trend Mineral Nutrition Net Sales Adjusted EBITDA $ in millions 18 19 Net sales and Adjusted EBITDA reflect fiscal years ended June 30
Slide 20: Performance Products segment
Performance Products segment 18 20
Slide 21: Performance Products Highlights
Performance Products Highlights Our legacy chemical business We manufacture The Performance Product business segment is comprised of and market several PhibroChem, Ferro Metal & Chemical, and Phibro-Tech. specialty PhibroChem and Ferro Metal & Chemical supply specialty ingredients. chemicals to the
Slide 22: Performance Products Net Sales & Adjusted EBITDA Trend
Net Sales & Adjusted EBITDA Trend Performance Products Net Sales Adjusted EBITDA $ in millions 21 22 Net sales and Adjusted EBITDA reflect fiscal years ended June 30
Slide 23: Fiscal Year 2023 Financial Guidance
Fiscal Year 2023 Financial Guidance As of August 24, 2022 22 23
Slide 24: Drivers for Growth
Drivers for Growth Phibro strengths We align with the global demand for increased animal protein production We are economically important to our customers’ success We have secured leading positions in high growth markets We actively promote animal health and welfare Our customers express strong bran
Slide 25: Fiscal Year 2023 Financial Guidance
Fiscal Year 2023 Financial Guidance As of August 24, 2022 $ in millions, except per share data ▪ Although macroeconomic headwinds are anticipated to persist, we are projecting consolidated Net Sales growth of 2% to 6% ▪ Animal Health, 3% to 7%: ▪ Double digit % growth of nutritional specialty produc
Slide 26: Investing in our future
Investing in our future We are planning to invest $37 Strategic Investments million in R&D and other projects, which include companion $37 animal, nutritional specialty and $29 vaccine development projects $24 R&D projects and a joint venture in China to Other projects develop a vaccine to combat Af
Slide 27: Net Sales and Profitability
Net Sales and Profitability Consolidated Before the planned strategic investment of $37 million (see prior slide), adjusted EBITDA guidance is $150-155 million, representing year-on-year growth of 7-11% Net Sales Adjusted EBITDA + strategic investments $150-155 $960-1,000 $140 $132 $37 million of pl
Slide 28: Building a portfolio of companion animal products
Building a portfolio of companion animal products Our concentration of sales in MFAs & other has reduced from 1 ANIMAL HEALTH 47% of sales at the time of our IPO to 38% for the year ending June 30, 2022 MFAs & other We see opportunities to grow Nutritional Specialties and Nutritional Specialties Vac
Slide 29: Trademark notice
© 2022 Phibro Animal Health Corporation, Teaneck, NJ 07666 Phibro; Phibro logo design; Healthy Animals. Healthy Food. Healthy World.; and any other Phibro brand or brands shown herein are trademarks owned by or licensed to Phibro Animal Health Corporation or its affiliates. Any other trademark that
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