Phibro Animal Health Corporation · NASDAQ:PAHC
Phibro Animal Health — Investor Presentation (August 2023)
29 slides from Phibro Animal Health's investor presentation, Aug 30, 2023
Slide 1: Phibro Animal Health Corporation Company Overview
Phibro Animal Health Corporation Company Overview As of August 30, 2023
Slide 2: Important Information
Important Information Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements that are subject to risks and uncertainties, including with respect to future debt and leverage levels. All statements other than statements of historical or current
Slide 3: An Evolution
An Evolution Acquired Acquired Acquired Acquired Launch Koffolk, an Israeli global medicated feed OmniGen-AF and MVP Laboratories Rejensa®; our first animal nutrition additive business from Animate nutritional animal vaccine and companion animal business Pfizer Inc. specialty products adjuvants busi
Slide 4: About Us
About Us I N BU S I N E S S > 1 , 9 0 0 E M P L OY E E S since 1946 manufacturing products at 14 sites, selling Manufacturing ~730 products on product 12 sites, lines selling 1,625 product presentations W E M A N U FA C T U R E W E HS AVALEE>S3 I, 7 N0>08 0 C O U N T R I E S 70% of our products C U
Slide 5: Our Leadership
Our Leadership Jack C. Bendheim Damian Finio Chairman of the Board of Directors, Chief Financial Officer President and Chief Executive Officer ▪ Joined Phibro in 2020 ▪ Joined Phibro in 1969 ▪ Chief Financial Officer since 2020 ▪ President since 1988 ▪ 30+ years relevant financial experience ▪ Chief
Slide 6: Core Strengths
Core Strengths ENDURANCE Established in 1946 as a chemical company, BREADTH Approximately 730 product lines sold in >80 transforming into a leader in the countries spanning three business segments: 01 Animal Health industry driven by acquisitions and organic growth 04 Animal Health, Mineral Nutritio
Slide 7: Growth Since the IPO: Then & Now
Then & Now 7 IPO Growth Strategies 1 Growth GROWTH SINCE since THE IPO the 2 IPO 2 Continue Our Expansion into High-Growth Increased from selling in 65 countries to >80 23% Emerging Markets Leverage Proprietary Vaccine Technologies to Vaccine net sales increased from $29 to $100 million Increase Sal
Slide 8: Capitalization
Capitalization We strengthened the balance sheet while increasing the dividend per share by 20%: Net Leverage 1 Liquidity 2 Dividend per share 3 4.5x $0.48 $248 3.5x $0.40 $78 2013 2023 2013 2023 2014 2023 1 Net leverage = Total debt less cash equivalents divided by trailing twelve month adjusted EB
Slide 9: Business Segments
Business Segments FISCAL Sales Adj. EBITDA YEAR 2023 $978m $113m ANIMAL Sales Adj. EBITDA MINERAL Sales Adj. EBITDA 1 HEALTH $660m $136m 2 NUTRITION $243m $17m Sales MFAs MFAs & other - Antimicrobials, anticoccidials, Trace and macro minerals, organic trace minerals, premixes, Selenium rumen functio
Slide 10: Net Sales & Adjusted EBITDA Trend
Net Sales & Adjusted EBITDA Trend Consolidated Net Sales Adjusted EBITDA $1,000-1,050 $67 $115-121 $978 $942 $75 $76 Range of $243 Range of $653 $260 $1,000- $115-121 1,050 $65 million; million; $113 year-on- year-on- $203 year year $111 growth of growth of 2-7% $607 $660 2-7% $76 $385 2013 2022 202
Slide 11: Net Sales Allocation, FY23
Net Sales Allocation, FY23 By Segment 68% 25% 7% Animal Health Mineral Performance Nutrition Products 11 By Region 59% 23% 12% 6% USA Latin America Europe, Middle Asia Pacific & Canada East & Africa By Species 34% 19% 13% 9% 25% Poultry Dairy Beef Swine Other Cattle Cattle Net sales allocation as di
Slide 12: Animal Health
Animal Health Phibro
Slide 13: Animal Health Net Sales & Adjusted EBITDA Trend
Net Sales & Adjusted EBITDA trend Animal Health Net Sales Adjusted EBITDA $660 $607 $100 $88 $173 $385 $157 $29 $52 $136 $124 $362 $387 $83 $304 2013 2022 2023 2013 2022 2023 MFAs and other Nutritional Specialties Vaccines $ in millions Net sales and Adjusted EBITDA reflect fiscal years ended June 3
Slide 14: Animal Health - Key Products
Animal Health - Key Products Medicated Feed Additives Nutritional Specialties Vaccines Antimicrobials Anticoccidials Anthelmintics and Rumen Function 13 14
Slide 15: Companion Animal Development Pipeline
Companion Animal Development Pipeline Multiple data sources project the Companion Animal Health industry to grow at a CAGR of ~8-10% from 2023 to 2029. IN DEVELOPMENT ON THE MARKET Derma care (Dogs) ▪ Licensed a novel early-stage atopic dermatitis compound O N T H E M AR K E T ▪ Est. Addressable Mar
Slide 16: Our First Companion Animal Product
Our First Companion Animal Product Estimated Addressable Market* for pet joint supplements in the US:$850 million We project strong year over year sales growth in FY 2024 * Estimated Addressable Market amounts are management’s estimate as of the date hereof derived from publicly available informatio
Slide 17: Mineral Nutrition
\oapRe Mineral Nutrition
Slide 18: Mineral Nutrition Highlights
Mineral Nutrition Highlights A complement to our Animal Health segment We develop and Trace and macro mineral products including copper, zinc, cobalt, iron, selenium, manganese, magnesium, iodine, others manufacture custom trace Organic trace minerals mineral pre-mix Fortifies and maintains an optim
Slide 19: Mineral Nutrition Net Sales & Adjusted EBITDA Trend
Net Sales & Adjusted EBITDA Trend Mineral Nutrition Net Sales Adjusted EBITDA $260 $243 $24 $203 $17 $12 2013 2022 2023 2013 2022 2023 $ in millions 18 19 Net sales and Adjusted EBITDA reflect fiscal years ended June 30
Slide 20: Performance Products
Performance Products Phibro
Slide 21: Performance Products Highlights
Performance Products Highlights Our legacy chemical business We manufacture The Performance Product business segment is comprised of and market several PhibroChem, Ferro Metal & Chemical, and Phibro-Tech. specialty PhibroChem and Ferro Metal & Chemical supply specialty ingredients. chemicals to the
Slide 22: Performance Products Net Sales & Adjusted EBITDA Trend
Net Sales & Adjusted EBITDA Trend Performance Products Net Sales Adjusted EBITDA $76 $9 $9 $75 $65 $3 2013 2022 2023 2013 2022 2023 $ in millions 21 22 Net sales and Adjusted EBITDA reflect fiscal years ended June 30
Slide 23: Fiscal Year 2024 Financial Guidance
Fiscal Year 202 Financial Guidance As of August 30, 2023 22 23
Slide 24: Drivers for Growth
Drivers for Growth Phibro strengths We align with the global demand for increased animal protein production We are economically important to our customers’ success We have secured leading positions in high growth markets We actively promote animal health and welfare Our customers express strong bran
Slide 25: Fiscal Year 2024 Financial Guidance
Fiscal Year 2024 Financial Guidance As of August 30, 2023 $ in millions, except per share data At guidance mid-points, we are projecting: ▪ Net Sales & Adjusted EBITDA, 5% growth ▪ Fueled by 8% and 9% growth in Animal Health net sales and FY 2023 FY 2024 Adjusted EBITDA, respectively, Full Year Guid
Slide 26: Investing in our future
Investing in our future We are planning to invest $35 Strategic Investments million in R&D and other projects, $35 which include companion $32 $29 animal, nutritional specialty and vaccine development projects $23 R&D projects and a joint venture in China to $20 $19 Other projects develop a vaccine
Slide 27: Net Sales and Profitability
Net Sales and Profitability Consolidated Before the planned strategic investment of $35 million (see prior slide), adjusted EBITDA guidance is $115-121 million, representing year-on-year growth of 2-7% Net Sales Adjusted EBITDA + strategic investments $1,000-1,050 $150-156 $145 $142 $35 million of p
Slide 28: Building a portfolio of companion animal products
Building a portfolio of companion animal products Our concentration of sales in MFAs & other has reduced from 1 ANIMAL HEALTH 47% of sales at the time of our IPO to 40% for the year ending June 30, 2023 MFAs & other We see opportunities to grow Nutritional Specialties and Nutritional Specialties Vac
Slide 29: © 2023 Phibro Animal Health Corporation, Teaneck, NJ 07666 Phibro; Phibro logo design; Healthy
© 2023 Phibro Animal Health Corporation, Teaneck, NJ 07666 Phibro; Phibro logo design; Healthy Animals. Healthy Food. Healthy World.; and any other Phibro brand or brands shown herein are trademarks owned by or licensed to Phibro Animal Health Corporation or its affiliates. Any other trademark that
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