Slide 1: FY 2021 Results Presentation
FY 2021 RESULTS PRESENTATION 18TH AUGUST 2021
Slide 2: Disclaimer
DISCLAIMER The following provisions apply to this presentation. Please consider its contents carefully. Currency of information The information contained in this presentation is current as at the date of this presentation or such earlier date as specified in this presentation. Summary information Th
Slide 3: Agenda
AGENDA 1. FY21 OVERVIEW 2. DETAILED FINANCIAL RESULTS 3. STRATEGY AND OPERATIONAL UPDATE • CORE BUSINESS • HEALTH & WELLNESS • INTERNATIONAL • COST OPTIMISATION 4. SUMMARY and OUTLOOK 5. Q&A
Slide 4: FY21 in Review
FY21 IN REVIEW Manicare Sonic Mini – Facial Cleansing Brush 4
Slide 5: FY21 Results – Performance in Line with Guidance
FY21 RESULTS – PERFORMANCE IN LINE WITH GUIDANCE TOTAL SALES REVENUE SALES EXCLUDING CHINA FY21 financial summary • Resilient domestic performance offset by lower $200.5m $193.8m international sales of Dr. LeWinn's and one-off items • Sales revenue excluding China increased 5% to $193.8m FY20: $222.
Slide 6: Summary of Review
SUMMARY OF REVIEW MCPHERSON’S TODAY LOOKING AHEAD • Opportunities in Health, Wellness and • Greater focus and better return Beauty remain strong from existing brand and capabilities • We have a robust consumer • Drive fewer, higher quality initiatives proposition and brands in the with a more mature
Slide 7: Market Conditions and COVID-19
MARKET CONDITIONS AND COVID-19 PEOPLE, SUPPLY DEMAND HEALTH & SAFETY • Increased shipping lead times • Safety and wellbeing of our people is top • Despite Aware impairment, MCP remains International priority confident in local formulated supply • Impacted cross border e-commerce and • Remote operati
Slide 8: Financial Update
FINANCIAL UPDATE 8
Slide 9: FY21 Sales Revenue
FY21 SALES REVENUE Sales revenue increased by 5% in FY21 excluding the decline in sales to ABM Business Unit sales split FY21 FY20 % change 9.5 12.4 FY21 ($M) SKIN, HAIR & • Decline in Dr. LeWinn's sales to China from $37.2m in FY20 to $6.7m in FY21 30.9 62.9 -50.8% • 11% increase in A'kin following
Slide 10: Bridge of FY20 to FY21 Underlying EBIT
BRIDGE OF FY20 TO FY21 UNDERLYING EBIT $AM STRONG GROWTH IN DOMESTIC BUSINESS (15.7) 1.2 0.7 Decrease in Decrease in Increase in NZ Dr. LeWinn's 1.6 1.4 JV losses EBIT Export $33 Increase in Lady Health EBIT (51%) 2.5 Jayne (7 months) Increase in contribution Manicare contribution $28 $23 $18 24.0 $
Slide 11: Healthy Underlying Cash Conversion & Strong Balance Sheet
HEALTHY UNDERLYING CASH CONVERSION & STRONG BALANCE SHEET Cash Conversion % Net Debt ($m) Gearing % 50.0% 140% 90 43.9% 117% 45.0% 113% 80 77.2 120% 108% 40.0% 70 100% 88% 82% 35.0% 32.3% 76% 60 80% 30.0% 29.2% 49.9 50 60% 25.0% 40 36.4 20.0% 40% 30 15.0% 20% 9.9% 9.3% 20 10.0% 7.2% 6.8% 9.8 7.5 9.2
Slide 12: Capital Management Consideration & FY21 Final Dividend
CAPITAL MANAGEMENT CONSIDERATION & FY21 FINAL DIVIDEND Final Dividend Capital Management • Final ordinary dividend of 1.5 cents per share (cps) • Given strong balance sheet, various capital management fully franked (2H20: 7.0cps) initiatives have been explored • Full year ordinary dividends of 5.0c
Slide 13: Strategy Update
STRATEGY UPDATE 13
Slide 14: Health, Wellness & Beauty – A Growing Market
HEALTH, WELLNESS & BEAUTY – A GROWING MARKET WE’RE OPERATING IN A $15.2 BILLION MARKET HEALTH & WELLNESS 1 BEAUTY 1 ($7.5 Billion, +5.7% vs Year Ago) ($7.7 Billion, +4.6% vs Year Ago) NATURAL HEALTH HEALTHY SKIN & BEAUTY Immunity & Protection Cosmeceutical Sleep & Mood Australian Natural Joint & Mov
Slide 15: Strategic Update
STRATEGIC UPDATE Target $300 million sales and $50 million EBIT in FY26 6 CORE OWNED BRANDS & HEALTH & WELLNESS SELECTIVELY EXPAND COST KEY CHANNELS A NEW GROWTH PLATFORM INTERNATIONAL FOOTPRINT OPTIMISATION INITIATIVES TARGETED TO DELIVER INITIATIVES TARGETED TO DELIVER INITIATIVES TARGETED TO DELI
Slide 16: ANZ - Core Owned Brands & Key Channels FY21 Performance Highlights
ANZ - CORE 6 OWNED BRANDS & KEY CHANNELS FY21 PERFORMANCE HIGHLIGHTS • Strong core brand performance • Increased sales in majority of core owned brands Manicare 13% 6 CORE OWNED • Pharmacy core brands outperformed vs category during FY21 (3.7% vs 0.1%) BRANDS & KEY • Daigou impact on Dr. LeWinn’s an
Slide 17: ANZ - Core Owned Brands & Key Channels Strategy Progress Update
ANZ - CORE 6 OWNED BRANDS & KEY CHANNELS STRATEGY PROGRESS UPDATE STRATEGIC PLAN PROGRESS UPDATE 6 CORE OWNED BRANDS & KEY • Confirmed incremental distribution points over 25% of annual target 6 CORE OWNED CHANNELS BRANDS & KEY Expand core brands • A total increase of 26,180 distribution points conf
Slide 18: ANZ - Core Owned Brands Category Expansion & Innovation
ANZ - CORE 6 OWNED BRANDS CATEGORY EXPANSION & INNOVATION Category expansion Beauty at home momentum BABY $320M CATEGORY MEN’S GROOMING $350M CATEGORY NPD ON TRACK TO DELIVER skincare innovation PIPELINE OVER 10% OF EXPAND Sustainability FOOTPRINT SALES IN FY22 18
Slide 19: Health and Wellness Global Therapeutics Integration and Performance
HEALTH AND WELLNESS GLOBAL THERAPEUTICS INTEGRATION AND PERFORMANCE • Acquired Global Therapeutics' Fusion Health and Oriental Botanical brands, establishing a new platform for growth • Successful integration of GT into MCP, including IT and financial systems, and stock now being distributed HEALTH
Slide 20: Health and Wellness Strategy Progress Update
HEALTH AND WELLNESS STRATEGY PROGRESS UPDATE STRATEGIC PLAN PROGRESS UPDATE 6 CORE OWNED • Current domestic Independent Pharmacy ranging of <40% BRANDS HEALTH & & KEYAccess ranging upside in • Commenced selling into the health food channel in Q4 FY21 CHANNELS Australian pharmacy, WELLNESS ▪ 47 addit
Slide 21: Expand International Footprint FY21 Progress
EXPAND INTERNATIONAL FOOTPRINT FY21 PROGRESS STRATEGIC PLAN PROGRESS UPDATE Build on Dr. LeWinn’s China: success but de-risk • Reduced sales to ABM of Dr. LeWinn's with $7m FY21 (FY20: $37m) SELECTIVELY approach • In market sell through by ABM of $19m, down 21% on FY20 EXPAND INTERNATIONAL • Brand p
Slide 22: Cost Optimisation FY21 Achievements Against Strategy
COST OPTIMISATION FY21 ACHIEVEMENTS AGAINST STRATEGY Our approach is to drive efficiencies in our business, and optimise our supply chain and distribution process to best support our growth initiatives. COST KEY ACTIVITIES OPTIMISATION Restructured business Review of JV Warehousing & units and leade
Slide 23: Summary & Outlook
SUMMARY & OUTLOOK SSS Se >
Slide 24: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK • Despite the external environment, we are optimistic that FY22 will deliver improved revenue and EBIT on FY21 • Market uncertainties support maintenance of a less geared balance sheet • Balanced multi geographic and multi brand offerings, with breadth of risk profile will
Slide 25: Summary
SUMMARY OPERATIONAL REVIEW PROGRESSING WELL BOARD & SLT • Resilient performance Refresh in progress with from core business leaner SLT team • Clear strategy in place and rapid execution on initiatives • Prioritising simplification and cost efficiencies ACQUISITIONS • Health business integrated and p
Slide 26: Q&A
Q&A OUR UNIQUE CAPABILITIES 26
Slide 27: Appendix 1: Further Commentary on Underlying Earnings
APPENDIX 1: FURTHER COMMENTARY ON UNDERLYING EARNINGS FY21 FY20 Revenue ($m) ($m) Var % Further Commentary Sales revenue 200.5 222.2 -9.8% Refer detailed presentation Other income 0.3 0.3 0.0% Total revenue and other income 200.8 222.5 -9.8% Underlying Expenses Reduced sales of Dr. LeWinn's increase
Slide 28: Appendix 2: Reconciliation of Underlying to Statutory Profit Before Tax
APPENDIX 2: RECONCILIATION OF UNDERLYING TO STATUTORY PROFIT BEFORE TAX FY21 ($m) FY20 ($m) Underlying profit before tax 10.1 23.9 Significant items before tax included in statutory (loss) / profit before tax Inventory provision for hand sanitisers (6.7) 0.0 Impairment of investments in joint ventur