Slide 1: Investor Presentation: May 2020
INVESTOR PRESENTATION : MAY 2020 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 • Manufacturers and marketers of Progressive, Precision and
Slide 5: Our History
OUR HISTORY A consistent history of organic revenue growth. 00 8.9% 2020 Estimated revenue target of $364 - $376MM 0 2017 Acquired Body Plus and Sonoma 00 Completed Initial Public Offering (July) 2013-2019 CAGR CCMP full exit with Secondary Offering (October) 2 0 200 2016 Accelerated innovation with
Slide 6: Financial Profile
FINANCIAL PROFILE Attractive performance. Impressive growth. First Quarter 2020 Highlights (vs. Prior Year) Full Year 2019 (vs. Full Year 2018) • Consolidated revenue increased 16.5% to • Consolidated revenue increased 7.9% to $84.5 million $345.0 million • Jamieson Brands revenue increased by 24.5%
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Our financial performance and track record speaks for itself. TOP-LINE MOMENTUM ADJUSTED EBITDA GROWTH & MARGIN $364-$376 $80-$84 $345 $75.9 $320 $301 $67.6 $61.5 $248 $46.8 22% 22% 21% 20% 19% 2016A 2017A 2018A 2019A 2020E 2016A 2017A 2018A 2019A 2020E REVENUE ADJ. EBITDA ADJ.
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Significant free cash flow generation. SOLID GROWTH IN EARNINGS QUARTERLY FROM OPERATIONS DIVIDEND GROWTH $55.4 $0.11 $0.10 $47.2* $44.9 $0.09 $0.08 $31.0 15% 15% 16% 12% 2016A 2017A 2018A 2019A 2017 2018 2019 2020 EARNINGS FROM EARNINGS FROM OPERATIONS OPERATIONS MARGIN *We ha
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 89% OF FISCAL 2019 and international Jamieson brand, ADJUSTED EBITDA as well as our dom
Slide 11: Branded Business
BRANDED BUSINESS Premium Brands. Broad distribution. Leading cutting edge Leading premium Leading vegan #1 women’s natural performance brand #1 consumer health brand mainstream brand for alternative specialty health-focused brand for aspiring, in Canada1 consumers with healthy brand for active in Ca
Slide 12: Branded Business: 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: Branded Business: 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: Strategic Partners Business
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 RISING DEMAND PREVENTION FOR PROTEIN 16 16
Slide 17: Global Trends
GLOBAL TRENDS Ideally positioned to benefit from strong, stable industry tailwinds. 1 NORTH AMERICAN VMS INDUSTRY GROWTH1 $34 $35 $32 $33 $30 $31 $28 $29 $26 $27 $25 $25 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 REVENUE (US$ BILLIONS ) 1 Source: Euromonitor, Passport - Consumer Hea
Slide 18: Innovation
INNOVATION Leveraging brand equity. Innovating products. Driving sales. 2 NET REVENUE & INNOVATION GROWTH Areas of focus for 2020 & beyond $185 $170 • Digestive Health, Healthy Aging, $166 Naturally Energizing, Herbal & 2.8% 2.51% Superfood Solutions, Women’s 2.3% Health, Better Sleep • Easier to ta
Slide 19: 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 20: Expanding Margins
EXPANDING MARGINS Utilizing leverage. Expanding margins. 4 • Increased volume driving operating leverage • Increased capital driving efficiencies • Demonstrated margin expansion of 320 basis points from 2016-2019 ADJUSTED EBITDA MARGIN EXPANSION 22.0% 21.1% 20.5% 18.8% 2016 2017 2018 2019 20 20
Slide 21: China and M&A: Advancement in China
CHINA AND M&A Upside opportunity: Advancement in China 5 • China FDA allows foreign brands into the domestic market through new product licensing regulations • Jamieson has a leadership position among international VMS brands with 21 products available for the domestic market in China as of Q1 2020
Slide 22: China and M&A: 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 23: Management
MANAGEMENT Experienced team. Years of results. Name Title Joined Jamieson Previous Experience President and Mark Hornick June 2014 Chief Executive Officer Chief Financial Officer and Chris Snowden July 2014 Corporate Secretary Chief Operations and Regan Stewart March 2016 People Officer Chief Scienc
Slide 24: 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 25% international growth in 2019 and similar levels forecasted in 2020* • The Company is very profitable and had record-s
Slide 25: Our successes continue to position us as a healthy investment opportunity
OUR SUCCESSES CONTINUE TO POSITION US AS A HEALTHY INVESTMENT OPPORTUNITY. 25
Slide 26: 2020 Outlook
2020 OUTLOOK Metric 2019 A 2020 Target Range Growth Rate Total Revenue (millions) $345 $364 - $376 5.5% - 9.0% Jamieson Brands Segment Growth Rate $281 - $289 6.0% - 9.0% Domestic Branded $238 - $243 3.0% - 5.0% Jamieson International $43 - $46 25% - 35% Strategic Partners segment growth rate $83 -
Slide 27: Summary Consolidated Financial Information
SUMMARY CONSOLIDATED FINANCIAL INFORMATION Fiscal Year Ended December 31, 2016 2017 2018 2019 Revenue 248.3 300.6 319.8 345.0 Cost of sales 167.5 195.8 204.4 215.2 Selling, general and administrative expenses 44.8 53.6 65.2 69.9 Share-based compensation 4.9 6.3 3.1 4.3 Earnings from operations 31.0
Slide 28: Summary Consolidated Financial Information
SUMMARY CONSOLIDATED FINANCIAL INFORMATION Three Months Ended March 31, 2019 2020 % Change Revenue 72.6 84.5 16% Cost of sales 45.4 53.3 17% Selling, general and administrative expenses 16.5 17.6 7% Share-based compensation 0.8 1.2 50% Earnings from operations 9.9 12.4 25% Foreign exchange (gain) lo
Slide 29: 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, 2017 2018 2019 2019 2020 Net income (loss) (23.8) 26.7 31.7 5.4 8.0 Provision for income taxes 8.2 10.6 10.6 2.1 3.2 Interest expense and other financing costs
Slide 30: Contact Investor Relations
CONTACT INVESTOR RELATIONS: RUTH WINKER RWINKER@JAMIESONLABS.COM 30