Natural Alternatives International, Inc. · NASDAQ:NAII
Natural Alternatives International — Investor Presentation (February 2022)
31 slides from Natural Alternatives International's investor presentation, Feb 10, 2022
Slide 1: Natural Alternatives International, Inc. Investor Presentation
‘ae Natural Alternatives International, Inc. Investor Presentation February 2022
Slide 2: Forward Looking Statements
Forward Looking Statements 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 performance ba
Slide 3: Regulation G
Regulation 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 curr
Slide 4: Company Snapshot
Company Snapshot 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 Contract Manufacturing We provide private-label contract manufacturing servicesto companies that market
Slide 5: Company Strengths
Company Strengths targeting s|
Slide 6: Company Strengths
Company Strengths 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 $166.8 million Worki
Slide 7: Executive Management Team
Executive Management Team Mark A. LeDoux CEO and Chairman of the Board of Directors Mr. LeDoux founded Natural Alternatives International (NAl) in 1980. With over 45 years of experience since joining the nutritional supplements industry in 1975, Mr. LeDoux is considered a highly regarded leader and
Slide 8: Executive Management Team
Executive Management Team Kenneth E. Wolf President and Chief Operating Officer Mr Wolf joined NAl 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 implementa
Slide 9: Overview — Capabilities
Overview — Capabilities Global Production A Up to 20 million capsules and 14 million tablets daily capacity + Up to 500,000 bottles finished product daily capacity * Highly sophisticated in-house laboratories + Warehousing — 7,200+ pallet capacity Regulatory + Full Label Panel Testing and Quality As
Slide 10: Overview — Contract Manufacturing
Overview — Contract Manufacturing 4 in 7 Product Formulation * Custom formulations * In-house science teams * Clinical study design and support + In-house product stability testing capabilities Material Acquisition and Analysis x * Global raw material sourcing expertise + Transparency and tracking o
Slide 11: Overview — Patent & Trademark Licensing
Overview — Patent & Trademark Licensing In-house brand expansion leveraging our proprietary ingredients: CarnoSyn’ and SR CarnoSyn’ beta-alanine. “CarnoSyn Carnosine Synthesizer &CarnoSyn Wellness. Sustained: rT) Sustainedb@” Please visit websites by clicking on logo. spors Nutrition Enhance athleti
Slide 12: Worldwide Operations and Market Reach
Worldwide Operations and Market Reach NA’s global footprint and scope facilitates greater opportunities and more dynamic client engagement Manno, Switzerland Carlsbad, CA Q Nal offices and Operating Centers I Primary Markets
Slide 13: NAI US Facilities Tour
NAI US Facilities Tour wo” By : ¥ i yY iternatives yNAL¥ nal, Inc. 35
Slide 14: Accreditations
Accreditations 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) compliant— SwissMedic GMP certified — site registered and licensed FDA Inspect
Slide 15: Industry Trends
Industry Trends We will benefit from growing consumer interest in health and wellness i, 55%) \ 76%) consumers say y- are part of a healthy lifestyle * of consumers take 76% of baby boomers supplements daily take supplements Growing vitamin, mineral, & supplement (“VMS”) industries: + USA Dietary su
Slide 16: COVID-19 Spikes USA Supplement Growth
COVID-19 Spikes USA Supplement Growth 70,000 60,000 50,000 40,000 30,000 20,000 10,000 ° 2016 2017 2018 2019 2021 2022e @ Current Sales Projections ™ Pre-COVID Sales Projections
Slide 17: US Supplement Market Forecast
US Supplement Market Forecast Anew level of demand has been established; Supplement industry on track to pass $55B in 2020 and grow to $60B+ by 2023 50,000 H 2016 2017 2018 2019 2020e 2021e 2022e 2023e = Vitamins = Herbs & Botanicals = Specialty/Other = Sports Nutrition = Meal Supplements Minerals
Slide 18: Global Supplement Market Forecast
Global Supplement Market Forecast Global trend is matching US trend Global market spike of 9.5% growth to $150B in 2020. Australia Other Asian and New Countries Fealangd ther 5% 2% a Eastem Europe and Russia 6% United States 12 37% Latin 100,000 America 8% 80,000 : Japan 60,000 8% 40,00 Pe Western 2
Slide 19: Financial Performance and Growth Objectives
Financial Performance and Growth Objectives 19
Slide 20: Historical Revenue and EBITDA
Historical Revenue and EBITDA 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 wellness as a result
Slide 21: Historical Sales By Channel
Historical Sales By Channel rus FL Direct Sales Mm Retail m™ Patent & Trademark Licensing 2 rus Fui7 rvs Fro Trailing 12 Months
Slide 22: Objectives & Growth Drivers
Objectives & Growth Drivers ¢ Full Year Fiscal 2022 Outlook: 2 v Net Sales flat to slightly up Y Operating Income of 8-11% of Net Sales * Outlook for the 2nd Half of Fiscal 2022: Y 10-13% increase in Net Sales Y Operating Income of 8-11% of Net Sales * Fiscal 2023 and Beyond Targeted Growth Objectiv
Slide 23: Acquisition Strategy
Acquisition Strategy fo} 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 a Mass Or LAN Qo Markets Vitamins, Minerals, Supplements Capsules/
Slide 24: Investment Thesis
Investment Thesis * As of February 9, 2022, capacity utilization of ~60% * New high-capacity blender came online January 2022 in our Vista, CA facility increasing our overall product blending capacity in the USA by approximately 30% * Acquisition of new Manufacturing and Warehouse Facility in August
Slide 25: Investor Information
Investor Information Stock Symbol: NASDAQ: NAII Company website: http://www.nai-online.com Company Headquarters: 1535 Faraday Avenue -_—* CA 92008 ] Investor Relations Contacts Michael Fortin Chief Financial Officer 760-736-7700 investor @nel online a
Slide 26: Appendix
+ tf} c | _ ae +4 Appendix Investor Relations Info 26
Slide 27: Historical Segment Performance
Historical Segment Performance Trailing 12 Months* (Unaudited) Revenue Private Label Contract Manufacturing $ 121598 $ 106201 § 164310 $ 149,208 Patent & Trademark Licensing 16,692 12,585 14210 17,570 Total Revenue $ 138,290 § 118876 § 178520 $ 166,778 Income (Loss) from Operations Private Label Con
Slide 28: Condensed Consolidated Statements of Income
Condensed Consolidated Statements of Income (Inthousands, except per share data) (Unausites) Thvee MonthsEnded SixMonths Ended December 31, December 3, 2084 2020 208 2020 NT SALES 37,727 100.0% 45,083 100.0% 76,067 100.0% 87,809 100.0% Cost of goods sold 31181 22.65 35,409 _ 78.9% 61240 __ 821% 7212
Slide 29: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (inthousands) December 31, June 30, a 201 Travsites) ASSETS Cash and.cash equivalents $19,352 $32,133, ‘Accounts receivable, net 15,055 17,946 Inventories, net 31,828 27,006 (Other current assets 4318 3.263 Total current assets 70531 80,348 Property and equipmen
Slide 30: Adjusted EBITDA Reconciliation (Non-US GAAP)
Adjusted EBITDA Reconciliation (Non-US GAAP) Natural Alternatives International, Inc. Adjusted EBITDA — Non ~ US GAAP Reconciliation (in Thousands) Trailing 12 (Wnaudited) FYI6 FYI7 Fy18 Fy19 FY20 FY21___Months* Net Income (Loss) $9,546 $7,235 $5,051 $6,541 ($1,645) $10,768 $9,981 Interest Income a3
Slide 31: Thank You
Thank You www.nai-online.com
Natural Alternatives International — Investor Presentation (February 2022) on 6ix