Jamieson Wellness, Inc. · TSX:JWEL
Jamieson Wellness — Q2 2022 Earnings Presentation
26 slides from Jamieson Wellness's earnings presentation, August 2022
Slide 1: Global Growth Investor Update August 2022
GLOBAL GROWTH INVESTOR UPDATE AUGUST 2022 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: To become the world's most successful and trusted health and wellness company
Our Mission: To become the world’s most successful and trusted health and wellness company. • Leading Canadian health and wellness company founded in 1922. • Expanding presence in the United States with recently announced acquisition of the youtheory VMS brand. • Manufacturer and marketer of Jamieso
Slide 4: Our brands are uniquely positioned to meet consumers' evolving needs
Our brands are uniquely positioned to meet consumers’ evolving needs throughout their lifetime health and wellness journey. Making health & wellness easier for everyone. Improving quality of life and wellness for all. On the cutting edge of health Leveraging the power of Empowering women to live lif
Slide 5: Our industry-leading commitment to quality
Our industry-leading commitment to quality. • All products manufactured according to “360 Pure”, our industry-leading quality assurance program • Third-party certifications including DNA verification on herbal and probiotic products • Primary Canadian tablet and soft gel manufacturing facilities reg
Slide 6: A consistent history of organic revenue growth
Jamieson Wellness Today: A consistent history of organic revenue growth. $600,000 CAGR 10.6% 2017–2021 $500,000 (Since IPO) $400,000 8.9% CAGR $300,000 2010–2020 $200,000 CAGR $100,000 8.3% 2000–2020 $0 1985 1990 1995 2000 2005 2010 2015 2020 * 2014 to 2021 per audited IFRS statements and includes i
Slide 7: Financial Performance: Growth and momentum
Financial Performance: Growth and momentum. TOP-LINE MOMENTUM ADJUSTED EBITDA GROWTH & MARGIN $550 - $565 $120– $125 $451 $100.1 $404 $88.0 $345 $320 $75.9 $301 $67.6 $61.5 22.0% 22.2% 21.8% 21.9% 21.1% 20.5% 2017A 2018A 2019A 2020A 2021A 2022E 2017A 2018A 2019A 2020A 2021A 2022E REVENUE ADJ. EBITDA
Slide 8: Our growth is being propelled by a global health and wellness megatrend
Our growth is being propelled by a global health and wellness megatrend. RISING AGING DISPOSABLE GLOBAL INCOME POPULATION EXPANDING INCREASING ACCESS TO FOCUS ON INFORMATION SELF-CARE 8 Jamieson Wellness August 2022
Slide 9: We've built a foundation for long term growth
We’ve built a foundation for long term growth. CONSUMER INSIGHTS & MEGATRENDS CANADA UNITED STATES CHINA INTERNATIONAL OPERATING LEVERAGE ACQUISITION OPPORTUNITIES ESG, PEOPLE, VALUES, AND CULTURE Jamieson Wellness August 2021 9
Slide 10: Brand and Product Marketing
Brand and Product Marketing: A top tier team leveraging robust consumer research. • Aggressive marketing plan rooted in deep consumer insights • Investing in consumer education to bring new consumers into the category and expand their usage across segments • Creating 360o touchpoints across all cons
Slide 11: Product Innovation
Product Innovation: Led by our industry-leading R&D professionals and Scientific Advisory Board. BRANDED REVENUE GROWTH FROM INNOVATIONS Jamieson innovation is more efficient than our competitors’.1 $7.0 $5.0 $6.0 $4.0 $3.7 3.2% 2.3% 2.1% 1.9% 1.3% 2017 2018 2019 2020 2021 BRANDED DOMESTIC % OF TOTA
Slide 12: Multi-Channel Distribution
Multi-Channel Distribution: Engaging our consumers everywhere and anywhere they want to buy. NEW NEW Gas Stations & Grocery & Specialty i.e. Health Food Convenience Stores Drug Stores Sporting Goods NEW Wholesale Clubs Big Box Retailers Dollar Stores E-commerce Jamieson Wellness August 2022 12
Slide 13: Domestic industry growth driven by brand and category penetration
Domestic industry growth driven by brand and category penetration. HOUSEHOLD PENETRATION • Jamieson household penetration 2015 2020 increased 5% from 2015-2020 73.9 69.3 • At ~40% household penetration, Jamieson has room to grow within total VMS 29.0 • With total VMS penetration at nearly 23.0 74%,
Slide 14: Our brands are now in more than 45 countries and regions
Our brands are now in more than 45 countries and regions and growing. • ~120% growth includes strategic acquisition in the U.S. • Fastest growing segment with 10-20% guided growth on the base business in fiscal 2022 on a constant currency basis INTERNATIONAL REVENUE 123% – 147% • 29.2% organic CAGR
Slide 15: China: Delivering growth across all channels
China: Delivering growth across all channels. • Second largest global market at $20B USD with significant annual growth • Strong consumer preference for foreign brands focusing on quality and heritage • Growth plans with top cross-border e- commerce platforms with +175 SKUs currently in distribution
Slide 16: Our global strategic partnership with Costco
Our global strategic partnership with Costco. • International branded business with Costco in the U.S.,UK, Iceland, Spain, France, Australia, Taiwan & China • Additional successful Costco opening in China (Suzhou), supporting Jamieson growth plans • Continued promotional planning to support establis
Slide 17: Acquisition: Strategic Rationale
Acquisition: Strategic Rationale. Accretive transaction with 20%+ expected IRR Target Acquisition Criteria Highly attractive expansion opportunity into • $100M+ target revenues large and fast-growing U.S. VMS market • 20% required IRR • Focused on expanding our Strong brand complementary to geograph
Slide 18: Utilizing leverage: Expanding margins
Utilizing leverage: Expanding margins. BRANDED EBITDA MARGIN EXPANSION • Increased volume driving operating leverage 26.3% 25.8% • Capital investment driving increased 25.4% 24.7% capacity and efficiencies • Demonstrated margin expansion of 22.3% 400 basis points from 2017-2021 • Plans to grow margi
Slide 19: Environmental, Social and Governance
Environmental, Social and Governance: A natural extension of our vision of improving the world’s health and wellness. • Recently disclosed climate commitments including a 50% reduction of Scope 1 & 2 emissions by 2030 and the development of a formal action plan to reach Net Zero by 2050 • Diversity,
Slide 20: A platform for long-term value creation
A platform for long-term value creation. • Global consumer health and wellness megatrend • Growth in Canada M&A • Expansion in the U.S. • Brand growth in China • International expansion • Operating leverage and acquisition opportunities • Environmental, social and governance practices • People, valu
Slide 21: Appendix
APPENDIX Jamieson Wellness August 2022 21
Slide 22: Financial Performance: 2022 Guidance
Financial Performance: 2022 Guidance. METRIC 2021 2022 TARGET RANGE GROWTH RATE Total Revenue (millions) $451 $550- $565 5% – 9% Jamieson Brands Segment Growth Rate 28% – 32% • Domestic Branded 6% – 9% • Jamieson International ( including youtheory) 123% - 147% Strategic Partners Growth Rate 0% - 5%
Slide 23: Summary consolidated financial information
Summary consolidated financial information. Fiscal Year Ended December 31, ($ in millions, except as otherwise noted) 2017 2018 2019 2020 2021 Revenue 300.6 319.8 345.0 403.7 451.0 Cost of sales 195.8 204.4 215.2 258.9 288.6 Selling, general and administrative expenses 53.6 65.2 69.9 76.3 80.7 Share
Slide 24: Summary consolidated financial information
Summary consolidated financial information. Three Months Ended Six Months Ended June 30, June 30, ($ in millions, except as otherwise noted) 2021 2022 % Change 2021 2022 % Change Revenue 110.6 112.0 1% 208.8 215.7 3% Cost of sales 72.2 71.3 (1%) 136.6 137.0 0% Gross profit margin 35% 36% 1% 35% 37%
Slide 25: 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 Six Months Ended December 31, June 30, June 30, ($ in millions, except as otherwise noted) 2018 2019 2020 2021 2021 2022 2021 2022 Net earnings 26.7 31.7 41.6 19.8 11.5 10.1 17.6 19.8
Slide 26: Investor Relations Contact
Investor Relations Contact: Ruth Winker (rwinker@jamiesonlabs.com) linkedin.com/company/jamiesonwellness twitter.com/JWEL_Canada Jamieson Wellness August 2022 26