Jamieson Wellness, Inc. · TSX:JWEL
Jamieson Wellness — Investor Presentation (May 2021)
29 slides from Jamieson Wellness's investor presentation, May 2021
Slide 1: Investor Presentation: May 2021
INVESTOR PRESENTATION : MAY 2021 1
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, business
Slide 3: Our mission is to become the world's most successful and trusted health & wellness company
OUR MISSION IS TO BECOME THE WORLD’S MOST SUCCESSFUL AND TRUSTED HEALTH & WELLNESS COMPANY. 3
Slide 4: Jamieson Wellness Today
JAMIESON WELLNESS TODAY Jamieson is the #1 consumer health brand in Canada1 with a growing global presence. • Leading Canadian health and wellness company founded in 1922 • Manufacturer and marketer of Jamieson, the #1 VMS brand in Canada2 • Jamieson brand available in more than 10,000 retail locati
Slide 5: Our History
OUR HISTORY A consistent history of organic revenue growth. 13.1% 2014-2020 CAGR 7.8% 1999-2020 CAGR * 1987 to 2013 per historical financial statements (under Canadian Accounting Standards for Private Enterprises); 2014 to 2020 per audited IFRS statements and includes impact of acquisitions. 5
Slide 6: Financial Profile
FINANCIAL PROFILE Attractive performance. Impressive growth. First Quarter 2021 Highlights (vs. Prior Year) Full Year 2020 (vs. Full Year 2019) • Consolidated revenue increased 16.3% to • Consolidated revenue increased 17.0% to $98.3 million $403.7 million • Jamieson Brands revenue increased by 8.7%
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Our financial performance and track record speaks for itself. TOP-LINE MOMENTUM ADJUSTED EBITDA GROWTH & MARGIN $421- $438 $404 $95-$100 $88.0 $345 $320 $75.9 $301 $67.6 $248 $61.5 $46.8 23% 22% 22% 20% 21% 19% 2016A 2017A 2018A 2019A 2020A 2021E 2016A 2017A 2018A 2019A 2020A 2
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Significant free cash flow generation. SOLID GROWTH IN CASH FLOW ANNUAL FROM OPERATIONS DIVIDEND GROWTH $60.8 $0.50 $0.47 $50.9 $0.38 $0.34 $33.0 $25.5 $25.7 67% 69% $0.16 55% 49% 42% 2016A 2017A 2018A 2019A 2020A 2017 2018 2019 2020 2021E CASH FLOW FROM % OF AEBITDA OPERATIONS
Slide 9: Manufacturing
MANUFACTURING State-of-the-art facilities. Unmatched platform. Dedication to Quality • All products manufactured according to “360 Pure”, our industry- leading, full circle quality assurance protocol • TRU-ID TM certification on all Jamieson brand herbals and Jamieson and Progressive brand probiotic
Slide 10: Business Segments
BUSINESS SEGMENTS We operate in two complementary segments. 1. Branded Business offers a diversified range of premium branded products across multiple distribution channels. Branded Business includes the domestic 93% OF FISCAL 2020 and international Jamieson brand, ADJUSTED EBITDA as well as our dom
Slide 11: Branded Business
BRANDED BUSINESS Premium Brands. Broad distribution. Making health & wellness Empowering women to On the cutting edge of Leveraging the power of Supporting performance easier for everyone. live life to the fullest. health and wellness. plants for a healthier world. for aspiring athletes. 11
Slide 12: Jamieson: Powerful brand
BRANDED BUSINESS Jamieson: Powerful brand. 25% MARKETSHARE IN CANADIAN Unmatched consumer loyalty. FOOD,DRUG AND MASS RETAILERS1 Top of Mind Awareness2 70% 63% 60% 50% 59% of consumers say Jamieson is a brand they trust 48% of consumers say Jamieson is a brand that they love2 40% 30% 27% 20% 19% 14%
Slide 13: An award-winning collection of brands
BRANDED BUSINESS An award-winning collection of brands. BEST BEST NEW CONSUMER PRODUCT PRODUCT SUPERBRAND 2017 2017 2017 Multivitamin: Progressive Active Jamieson Omega-3 Jamieson Vitamins Men and Women (Platinum) NFA Supplements Whey Protein: Progressive Harmonized Protein (Gold) BEST NEW BEST NEW
Slide 14: Key relationships. Profitable endeavours.
STRATEGIC PARTNERS BUSINESS Key relationships. Profitable endeavours. We engage in highly-selective and strategic co-manufacturing opportunities designed to: 1. Broaden customer relationships. 2. Increase productivity and improve asset utilization. 3. Provide direct benefits to strategic initiatives
Slide 15: Growth Opportunities
GROWTH OPPORTUNITIES Well-positioned to influence new areas. 1 Capitalize on supporting global trends 2 Leverage brand equity and product innovation to drive sales in existing and adjacent markets 3 Maximize large international market opportunity 4 Utilize operating leverage and acquisition synergie
Slide 16: Global Trends
GLOBAL TRENDS Global health and wellness megatrend supports strong organic growth. 1 FOCUS ON RISING DISPOSABLE HEALTHY LIVING INCOME AGING CONSUMER ACCESS POPULATION TO INFORMATION FOCUS ON PREVENTION 16 16
Slide 17: Innovation
INNOVATION Leveraging brand equity. Innovating products. Driving sales. 2 NET REVENUE & INNOVATION GROWTH Areas of focus for 2021 & beyond $222 $170 $185 • Digestive Health, Healthy Aging, $166 Naturally Energizing, Herbal & Superfood Solutions, Women’s Health, Better Sleep • Easier to take 2.8% 2.3
Slide 18: International
INTERNATIONAL Improving the world’s health and wellness. 3 • Fastest growing division: International business sales doubled between 2013 and 2016 • Strategy executed in over 45 countries and regions • International market success through brand recognition, quality, and strong distribution partnershi
Slide 19: Expanding Margins
EXPANDING MARGINS Utilizing leverage. Expanding margins. 4 • Increased volume driving operating leverage • Increased capital driving efficiencies • Demonstrated margin expansion of 300 basis points from 2016-2020 ADJUSTED EBITDA MARGIN EXPANSION 22.0% 21.8% 21.1% 20.5% 18.8% 2016 2017 2018 2019 2020
Slide 20: Upside opportunity: Advancement in China
CHINA AND M&A Upside opportunity: Advancement in China Our expansion plans are fully meeting our expectations, delivering growth in every channel in 2020 5 1) Cross-border e-commerce (CBEC) is the top driver of our performance with a 2020 growth rate well ahead of our historical 3-year average • 175
Slide 21: Upside opportunity: M&A
CHINA AND M&A Upside opportunity: M&A 5 • Acquired the Lorna Vanderhaeghe brand in 2014 and Body Plus and Sonoma in 2017 and are focused on integration and our robust organic growth opportunities • Routinely monitor market for acquisitions to accelerate strategic objectives and drive synergies Two k
Slide 22: Management
MANAGEMENT Experienced team. Years of results. Name Title Joined Jamieson Previous Experience President and Mark Hornick June 2014 Chief Executive Officer Mike Plato President, Jamieson Canada October 2018 Chief Financial Officer and Chris Snowden July 2014 Corporate Secretary Chief Operations and R
Slide 23: Summary
SUMMARY • The Jamieson brand is an almost 100-year-old powerhouse that can be found in almost 40% of Canadian households • Jamieson has a rapidly expanding global footprint, with 50% international growth in 2020 • The Company is very profitable and had record-setting sales growth and earnings in 202
Slide 24: Our successes continue to position us as a healthy investment opportunity
OUR SUCCESSES CONTINUE TO POSITION US AS A HEALTHY INVESTMENT OPPORTUNITY. 24
Slide 25: 2021 Outlook
2021 OUTLOOK Metric 2020 A 2021 Target Range Growth Rate Total Revenue (millions) $404 $421 - $438 4.3% - 8.6% Jamieson Brands Segment Growth Rate 4% - 8% Domestic Branded 2% - 5% Jamieson International 15% - 25% Strategic Partners Segment Growth Rate 5% - 10% Adj. EBITDA (millions) $88 $95 - $100 8
Slide 26: Summary Consolidated Financial Information
SUMMARY CONSOLIDATED FINANCIAL INFORMATION Fiscal Year Ended December 31, ($ in millions, except as otherwise noted) 2016 2017 2018 2019 2020 Revenue 248.3 300.6 319.8 345.0 403.7 Cost of sales 167.5 195.8 204.4 215.2 258.9 Selling, general and administrative expenses 44.8 53.6 65.2 69.9 76.3 Share-
Slide 27: Summary Consolidated Financial Information
SUMMARY CONSOLIDATED FINANCIAL INFORMATION Fiscal Year Ended Three Months Ended December 31, March 31, ($ in millions, except as otherwise noted) 2019 2020 % Change 2020 2021 % Change Revenue 345.0 403.7 17% 84.5 98.3 16% Cost of sales 215.2 258.9 20% 53.3 64.4 21% Gross profit margin 38% 36% (2%) 3
Slide 28: Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Adjusted Net Income
RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME Fiscal Year Ended Three Months Ended December 31, March 31, ($ in millions, except as otherwise noted) 2017 2018 2019 2020 2020 2021 Net income (loss) (23.8) 26.7 31.7 41.6 8.0 6.1 Provision for income taxes 8.2 10.6 10.
Slide 29: Contact Investor Relations
CONTACT INVESTOR RELATIONS: RUTH WINKER RWINKER@JAMIESONLABS.COM 29