Nuchev Pty Ltd · ASX:NUC
Nuchev Pty — Shareholder Meeting (June 2023)
36 slides from Nuchev Pty's shareholder meeting presentation, Jun 19, 2023
Slide 1: Extraordinary General Meeting Corporate Investor Presentation
NUCHEV LIMITED (ACN 163 225 090) LEVEL 12, 636 ST KILDA ROAD MELBOURNE VIC 3004 WWW.NUCHEV.COM.AU ASX CODE: NUC 19 June 2023 ASX Market Release Extraordinary General Meeting Corporate Investor Presentation Nuchev Limited (ASX: NUC) (“Nuchev” or “the Company”) is pleased to release the Corporate Inve
Slide 2: Nuchev Limited Extraordinary General Meeting
For personal use only Nuchev Limited Extraordinary General Meeting Monday 19 June 2023 at 10.00am AEST
Slide 3: Acknowledgement of Country
Acknowledgement of Country I would like to acknowledge the traditional custodians of the land on which this office is located, the Wurundjeri People of the Kulin nation, and pay my respects For personal use only to the Elders, past, present and emerging. Directors and shareholders are joining from o
Slide 4: Agenda
Agenda 01 Introduction, our Purpose and Growth Strategy, and Overview of the H&S Transaction For personal use only 02 H&S Distribution Agreement and Strategic Investment 03 Nuchev Company Summary and Growth Trajectory 04 FY23 Performance to Date 05 Timetable 06 Items of Business Justin Breheny Non-E
Slide 5: Board of Directors and Company Secretary
Board of Directors and Company Secretary For personal use only Justin Breheny Ben Dingle Selina Lightfoot Non-Executive Director and Chair Non-Executive Director and Founder Non-Executive Director Michelle Terry Jeff Martin Tamara Barr Non-Executive Director Non-Executive Director Company Secretary
Slide 6: Key Management Personnel
Key Management Personnel For personal use only Greg Kerr Mick Myers Chief Executive Officer Chief Financial Officer 5
Slide 7: Overview and our purpose and growth strategy
Overview and our purpose and growth strategy For personal use only Greg Kerr Chief Executive Officer
Slide 8: Our purpose
Our purpose Food for a better life For personal use only We are committed to improving families’ lives DEMONSTRATED BY Leadership in premium digestion and immunity Backed by science Fuelled by consumer led innovation World class ingredients SUPPORTED THROUGH Premium nutrition Consumer endorsement Go
Slide 9: Our growth strategy
Our growth strategy EXPANDING OUR PURPOSE For personal use only Leading in premium digestion and immunity nutritional products WHAT WE DELIVER TODAY Brand Supply chain Distribution Product builders excellence network ASX listed innovation DRIVERS TO SCALE Function Ingredients Type Value Chain Consum
Slide 10: Overview of the H&S Transaction
Overview of the H&S Transaction Nuchev is a leading digestion and immunity specialist company For personal use only H&S International Group (“H&S”) Launching a Capital Raise to Capital Raise supports business Our focus is on driving scale, will partner with Nuchev on a optimise the H&S deal which tr
Slide 11: H&S Distribution Agreement and Strategic Investment
H&S Distribution Agreement and Strategic For personal use only Investment Greg Kerr Chief Executive Officer
Slide 12: Offer summary including H&S arrangement
Offer summary including H&S arrangement 1. Non-renounceable share offer (Entitlement Offer) 1 for 2.59 offer to acquire Shares at an offer price of $0.20 per new share for existing shareholders Targeted to raise up to $4.0 million before costs For personal use only Wilsons Corporate Finance Li
Slide 13: H&S Company overview
H&S Company overview Since 2009, H&S has built a comprehensive distribution network (off-line and online), forging the path to become one of Australia’s largest local and export wholesalers for infant formula, vitamins and supplements, skincare and personal care For personal use only into China, Hon
Slide 14: Nuchev Company Summary and Growth Trajectory
Nuchev Company Summary and Growth Trajectory For personal use only Greg Kerr Chief Executive Officer
Slide 15: Repositioning strategy for profitable scalable growth
Repositioning strategy for profitable scalable growth MAINTAIN OUR CURRENT PURPOSE PURPOSE FOOD FOR A BETTER LIFE For personal use only Current Future PRODUCT Leading premium digestion, Immunity and wellness Single minded focus on goat nutritional's in multi-categories POSITIONING Diversified portfo
Slide 16: FY23 Performance to date
FY23 Performance to date For personal use only Greg Kerr Chief Executive Officer
Slide 17: FY23 financial and operational performance
FY23 financial and operational performance Net Branded Sales Revenue1 ($ millions) Branded sales up 2.1 2.2 FY23 YTD branded revenue of $5.6m up +7% pcp For personal use only 1.9 1.6 1.6 Oli6® continues to drive strong momentum in Australian Grocery Goat Infant Formula (“GIF”) 1.5 Market, up +36
Slide 18: Operating cashflow trend – FY22 to present
Operating cashflow trend – FY22 to present Operating Cashflow Trend ($000) Disciplined cashflow and working capital management For personal use only Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 delivering substantial cash savings Disciplined cost control measures and working capital man
Slide 19: Timetable
Timetable For personal use only Greg Kerr Chief Executive Officer 18
Slide 20: Capital Raising Timetable
Capital Raising Timetable Key events Date For personal use only Announce Entitlement Offer, Conditional Placement and H&S Distribution Agreement Tuesday, 16 May 2023 Notice of Extraordinary General Meeting sent to shareholders Friday, 19 May 2023 Entitlement Offer opens Tuesday, 23 May 2023 Extraord
Slide 21: Appendix: Offer summary, H&S Distribution Agreement and Strategic Investment
Appendix 1 Offer summary, H&S Distribution Agreement and For personal use only Strategic Investment 20
Slide 22: Offer overview
Summary Offer overview Non-renounceable pro-rata rights issue (“Entitlement Offer”) and conditional placement (collectively the “Offer”) Conditional Placement to H&S: to raise up to $2.5 million at a $0.20 Offer Price, equating to a 15% interest in the Company following the completion of the Offer
Slide 23: H&S agreement and capital raising summary
Summary Overview Three-year agreement between H&S International Group (H&S) and Nuchev, for H&S to purchase and distribute a minimum of $20m of Nuchev’s product in China and SEA1, with an aligned strategy for Nuchev to rapidly develop and launch a bovine product For personal use only Strategic p
Slide 24: Key Terms
Summary Key Terms Term Three (3) years from commencement (1 July 2023) All channels in China and Vietnam (excluding Nuchev’s Flag-ship Store “FSS”) For personal use only Exclusive geographies Option for other South-East Asian countries (right of first refusal) Revenue commitment H&S commits
Slide 25: H&S Group
H&S Group Three key business divisions H&S HK: e-Tail stores H&S INT’L ASEAN Vietnam and SEA H&S ANZ (HVK): Local and export For personal use only Wholesale export business operations commenced Established in 2009 with Taobao stores Distributing product to Vietnam since 2012 in 2009 Currentl
Slide 26: Nuchev strategic business platform
Nuchev strategic business platform For personal use only Nuchev owns a leading, Australian made H&S provides a high quality, deep and Goat Infant Formula Brand (Oli6®) experienced distribution network Goat milk based infant formula (GIF) is an established H&S has over 14 years' experience and su
Slide 27: Our goal and how we'll get there
Our goal and how we’ll get there Leading premium digestion, immunity and wellness nutritionals in multi-categories H&S agreement is a major first step in For personal use only our business transformation, delivering: Diversified portfolio of profitable and sustainable businesses Significant scale
Slide 28: Investor highlights
Investor highlights DISTRIBUTION & CAPITAL LEADING BRAND & PRODUCT For personal use only H&S transaction will drive growth Oli6 is a well-established brand into key Asian markets and supporting a premium, provides valuable growth capital differentiated product, supported by science SUPPLY CHAIN EXPE
Slide 29: Key financial and volume metrics
Key financial and volume metrics For personal use only Key metrics H1 FY22 H1 FY23 % change Commentary Branded3 volume increase driven by improved sales in AU, with H1 Branded Volume1 (MT) 109.5 114.5 5% FY23 including sales in Woolworths not reflected in H1 FY22 Adjusted EBITDA for H1FY23 was a
Slide 30: Appendix: Key risks
Appendix 2 Key risks For personal use only 29
Slide 31: Key risks
Key risks There are a number of risks that are both specific to Nuchev and its subsidiaries (“the Group”) and of a general nature, which may affect the future operating and financial performance of the Group and outcome of an investment in Nuchev. Effective risk management is central to Nuchev’s app
Slide 32: Key risks
Key risks Increased market competition Nuchev operates in the highly competitive fast-moving consumer goods industry and is subject to existing and growing competition from domestic and international producers of infant formula and other nutritional products. Increased competition may impact the vol
Slide 33: Key risks
Key risks Nuchev’s reliance on third party suppliers and service providers exposes it third party risks Nuchev’s business model involves outsourcing key processes (such as production, processing, blending, canning and logistics) to third party suppliers and service providers, including AVH Dairy, Ta
Slide 34: Key risks
Key risks Nuchev’s success is linked with its ability to attract and retain key management personnel Failure to attract and retain key management and operating personnel may adversely affect Nuchev’s ability to execute its business strategy and may result in a material increase in the cost of obtain
Slide 35: Disclaimer
For personal use only Disclaimer This presentation is provided by Nuchev Limited (ACN 163 225 090) (Nuchev) to provide summary information about Nuchev and its respective subsidiaries (together, the Group). Statements in this presentation are made as at the date of the presentation and the informati
Slide 36: For personal use only
For personal use only 35