Natural Alternatives International, Inc. · NASDAQ:NAII
Natural Alternatives International — Investor Presentation (May 2023)
29 slides from Natural Alternatives International's investor presentation, May 2023
Slide 1: Natural Alternatives International, Inc. Investor Presentation
Custom Contract Manufacturing Since 1980. Enriching the World Through the Best of Nutrition. Natur al Alter natives I nter national, I nc. Investor Presentation May 2023 Nasdaq: NAII
Slide 2: Forward Looking Statements
For war d L ook ing S tatements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements reflect Natural Alternatives International, Inc.’s (the Company’s) current views about future events and financial performa
Slide 3: Regulation G
R egulation G In addition, in order to assist you with period-over-period comparisons on a consistent and comparable basis, our presentation includes certain non-US GAAP information. This information excludes certain non-cash expenses, certain cash income and expense items related to our foreign cur
Slide 4: Company Snapshot
Company S napshot NAII is the only pure-play public company that offers global formulation and manufacturing of customized nutritional supplements along with marketing branded and patented products Contr act M anuf actur ing We provide private-label contract manufacturing services to companies that
Slide 5: Company Strengths
Company S tr engths Multi-Continent Contract Manufacturing Facilities • Custom product formulation • State-of-the-art manufacturing facilities • Broad material acquisition & analysis • Certified in-house laboratory capabilities • Multiple packaging configuration capabilities In-House Brand Leveragin
Slide 6: Company Strengths
Company S tr engths Growth Drivers From Organic Initiatives And Complementary Acquisitions • Expand existing customer products, base and channels • Expand in-house brands • Complementary acquisitions Solid Cash Flows And Strong Balance Sheet To Support Growth Objectives • TTM* net sales of $170.6 mi
Slide 7: Executive Management Team
E xecutive M anagement Team Mark A. LeDoux CEO and Chairman of the Board of Directors Mr. LeDoux founded Natural Alternatives International (NAI) in 1980. With over 45 years of experience since joining the nutritional supplements industry in 1975, Mr. LeDoux is considered a highly regarded leader an
Slide 8: Executive Management Team
E xecutive M anagement Team Kenneth E. Wolf President and Chief Operating Officer Mr. Wolf joined NAI in February 2008 as Chief Financial Officer, was promoted to Chief Operating Officer in June 2010 and has served as NAI’s President since October 2015. Mr. Wolf is responsible for design and impleme
Slide 9: Overview – Capabilities
Over view – Capabilities Global Production • Up to 17 million capsules and 11 million tablets daily capacity • Up to 500,000 bottles finished product daily capacity • Highly sophisticated in-house laboratories Packaging • Warehousing – 7,400+ pallet capacity • HDPE/PP Bottles Regulatory • Full Label
Slide 10: Overview – Contract Manufacturing
Over view – Contr act M anufactur ing Product Formulation • Custom formulations • In-house science teams • Clinical study design and support • In-house product stability testing capabilities Material Acquisition and Analysis • Global raw material sourcing expertise • Transparency and tracking of mat
Slide 11: Overview – Patent & Trademark Licensing
Over view – Patent & Tr ademar k L icensing In-house brand expansion leveraging Sports Nutrition our proprietary ingredients: CarnoSyn® • Enhance athletic performance and SR CarnoSyn® beta-alanine. • Build muscle and reach peak sustainable performance • New sustained release form of CarnoSyn® remain
Slide 12: Worldwide Operations and Market Reach
Wor ldwide Oper ations and M ar k et R each NAI’s global footprint and scope facilitates greater opportunities and more dynamic client engagement Manno, Switzerland Carlsbad, CA Vista, CA NAI Offices and Operating Centers Primary Markets 12
Slide 13: Get To Know NAI
Get To K now NAI Welcome To NAI A personal welcome from founder & CEO Mark LeDoux Discover The NAI Difference The proven leader in custom formulation and contract manufacturing NAI Plant Tour Take an in-depth look at our new state-of-the-art manufacturing facility 13
Slide 14: Accreditations
Accr editations Industry leading accreditations and certification demonstrate our commitment to quality and are a strong barrier to entry Domestic (NAI) International (NAIE) Good Manufacturing Practices (cGMPs) ( 21 CFR 111) SwissMedic GMP certified – site registered and compliant – FDA Inspected; Z
Slide 15: Industry Trends
I ndustr y Tr ends We will benefit from growing consumer interest in health and wellness 87% 66% 80% 87% - of consumers 66% - of consumers 80% - of consumers typically use some say supplements are who say supplements type of vitamin, an important part of are an important part mineral, or their welln
Slide 16: US Supplement Market Forecast
US Supplement M ar k et For ecast A new level of demand has been established with an estimated CAGR of 5.2%; Supplement industry on track to pass $59B in 2022 and grow to $80B+ by 2028 US Dietary Supplements Market Revenue Forecast for 2022 Vitamins Minerals 28% 32% Proteins and Amino Acids 6% Probi
Slide 17: Global Supplement Market Forecast
Global Supplement M ar k et For ecast Global trend is matching US trend Global market growth expected at a CAGR of 5.9% growth to $319B in revenue by 2028. SOURCE: TheInsightsPartners – Dietary Supplements Market analysis 17 ($MIL)
Slide 18: Financial Performance and Growth Objectives
F inancial Per for mance and Gr owth Objectives 18
Slide 19: Historical Revenue and Adjusted EBITDA
H istor ical R evenue and Adjusted E B I T DA Sales in FY21 increased primarily due to higher sales from a majority of our distribution channels worldwide, including higher sales of immune and wellness products that appears to be driven by consumers taking a more active role in their health and well
Slide 20: Historical Sales By Channel
H istor ical S ales B y Channel $200 Millions $180 8% 9% 5% $160 5% $140 23% 12% 39% $120 16% 10% 11% 22% 10% 8% $100 10% $80 87% $60 68% 78% 74% 81% 56% $40 68% $20 $- FY17 FY18 FY19 FY20 FY21 FY22 Trailing 12 Months** Direct Sales Retail Patent & Trademark Licensing *Trailing 12 Months – Includes
Slide 21: Acquisition Strategy
Acquisition S tr ategy Channels Verticals Health Care Practitioner Wellness Brands Multi-Level Marketer High Value Ingredient Suppliers Direct-to-Consumer Contract Manufacturers Specialty Retail Value-Add Distributors Drug Store Mass Markets Forms Vitamins, Minerals, Supplements Capsules/Tablets, Po
Slide 22: Investment Thesis
I nvestment T hesis • As of May 10th, 2023, we increased our available capacity by ~44% with the opening of our new high-volume powder facility. Including this increase, our current global capacity available for new business is now ~75%. • New high-capacity blender came online January 2022 in our Vi
Slide 23: Investor Information
I nvestor I nfor mation Stock Symbol: NASDAQ: NAII Company website: http://www.nai-online.com Company Headquarters: 1535 Faraday Avenue Carlsbad, CA 92008 Investor Relations Contacts Michael Fortin Chief Financial Officer 760-736-7700 investor@nai-online.com 23
Slide 24: Appendix
Appendix Investor Relations Info 24
Slide 25: Historical Segment Performance
H istor ical Segment Per for mance Trailing 12 Fiscal Year ended June 30, Months* 2020 2021 2022 (Unaudited) Revenue Private Label Contract Manufacturing $ 106,291 $ 164,310 $ 154,798 $ 162,872 Patent & Trademark Licensing 12,585 14,210 16,168 7,775 Total Revenue $ 118,876 $ 178,520 $ 170,966 $ 170,
Slide 26: Condensed Consolidated Statements of Income
Condensed Consolidated Statements of I ncome (In thousands, except per share data) (Unaudited) (Unaudited) Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 NET SALES $ 32,699 100.0% $ 42,373 100.0% $ 118,121 100.0% 118,440 100.0% Cost of goods sold 31,323 95.8% 34,980 82.
Slide 27: Condensed Consolidated Balance Sheets
Condensed Consolidated B alance Sheets (unaudited) March 31, June 30, 2023 2022 ASSETS Cash and cash equivalents $15,560 $21,833 Accounts receivable, net 7,611 17,422 Inventories, net 39,309 32,475 Other current assets 3,806 5,016 Total current assets 66,286 76,746 Property and equipment, net 54,757
Slide 28: Adjusted EBITDA Reconciliation
Adjusted E B I T DA R econciliation (Non- US GAAP ) Natural Alternatives International, Inc. Adjusted EBITDA – Non – US GAAP Reconciliation (In Thousands) Trailing 12 (Unaudited) FY17 FY18 FY19 FY20 FY21 FY22 Months* Net Income (Loss) $7,235 $5,051 $6,541 ($1,645) $10,768 $10,712 $3,591 Interest Inc
Slide 29: Thank You
Custom Contract Manufacturing Since 1980. Enriching the World Through the Best of Nutrition. T hank You www.nai-online.com Nasdaq: NAII
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