Venture Life Group Plc · LSE:VLG
Venture Life — FY2014 Earnings Presentation
27 slides from Venture Life's earnings presentation, March 2015
Slide 1: Venture Life Group plc 2014 Final Results
Venture Life Group plc 2014 Final Results March 2015 International consumer self-care products
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Venture Life Group plc (the “Company”) and is general background information about the Company’s activities at the date of this presentation. The information in this presentation is provided in summary form only and does not purport to be complete. T
Slide 3: Introducing Venture Life
Introducing Venture Life • The market opportunity • Our current products • Operational leverage to sales success • Financial Results • News flow • Summary Page 2 2014 Final Results Presentation March 2015
Slide 4: Introducing Venture Life Group
Introducing Venture Life Group Development & manufacturing – Milan, Italy UK Sales & Marketing Office - Berkshire Page 3 2014 Final Results Presentation March 2015
Slide 5: The ageing population opportunity
The ageing population opportunity • Set to double over next 35 years Cognitive • Higher aspirations than previous generations function Pain Cholesterol World population of persons 60+ ('000)1 Diabetes & 3,000,000 obesity Eyes 2,500,000 2,000,000 Skin & Immune system Ageing hair 1,500,000 1,000,000 V
Slide 6: Characteristics of an ageing population
Characteristics of an ageing population Projected growth of global food supplement market (2005-2015)1 Difficult to Focus on self change medication – 80 $68Bn diet and growing lifestyle OTC sector 70 $53Bn 60 $ Billions THE 50 $35Bn WORRIED WELL 40 30 Healthcare 20 Prepared budgets under to pay pres
Slide 7: Human bodies deteriorate over time
Human bodies deteriorate over time • 40% of adult population have elevated cholesterol • 50% of adults globally suffer from age-related memory loss • Diabetes affects 285 million worldwide • Half a billion adults worldwide are estimated to be obese • 50% of US population will suffer from haemorrhoid
Slide 8: NHS strategy
NHS strategy • NHS recent strategy • Directing patients to self care and pharmacy BEFORE going to GP Page 7 2014 Final Results Presentation March 2015
Slide 9: Our products
Our products • We seek to occupy the middle ground between prescription pharmaceutical products and unregulated health foods • That is the regulated OTC environment • Sold through the pharmacy with pharmacists recommendation • Medical devices, food supplements, dermo-cosmetics • Regulated health cla
Slide 10: LDL cholesterol reduction
LDL cholesterol reduction • Approx. 40% of adults globally have high cholesterol 1 • Benecol brand – est. €200m • Contains patented ingredient, one of the world’s top 10 nutritional innovations2 • Clinically proven – 70 published clinical studies • Venture Life granted exclusive rights to develop an
Slide 11: Brain function and memory
Brain function and memory • Global food supplement market (cognitive health) is valued at $1.39bn (2012) – 23% growth from 2007 • More than 50% of adults over 60 years globally suffer from Age Related Memory Loss • Cognitive decline is already evident by middle age (45-49 years) – British Medical Jo
Slide 12: Skin care
Skin care • Lissio range – for skin ageing: hyper pigmentation, fine lines, sensitive skin • Lubatti – luxury skincare brand, with history and heritage • Original Bioscalin – for the treatment of hair loss, hair thinning • ZipClear – for the treatment of herpes simplex (known as cold sores) Page 11
Slide 13: Pain management
Pain management • Procto-eze – for the relief of symptoms associated with haemorrhoids • Guma-eze – for the relief of gum inflammation • Ox-eze – for the management and relief of muscular aches and joint pain Page 12 2014 Final Results Presentation March 2015
Slide 14: Leverage to sales success
Leverage to sales success EU MENA USA LATAM FAR EAST NeuroAge ✓✓✓✓✓✓✓ ✓✓ Benecol ✓ ✓ Lubatti/Lissio ✓✓✓ ✓✓ Procto-eze ✓✓✓✓✓✓ Hair loss ✓ ✓ Vonalei Others… • NPD strategy - new products (developed/acquired) Page 13 2014 Final Results Presentation March 2015
Slide 15: Prospects for 2015
Prospects for 2015 • Launch of 4-6 new products developed in Women’s Health including: – Vaginal atrophy – Bacterial vaginosis – Candida – Intimate cleansing wash • Complete development of Benecol sachet • Other new products in development for a variety of customers Page 14 2014 Final Results Presen
Slide 16: Leverage to sales success
Leverage to sales success • Under utilised development and Manufacturing scalability manufacturing facility in Italy 25 • Currently running at less than 50% 9m capacity 20 Million Units 15 • Incremental margin circa 45% 4m 10 • Significant profitability upside from 11m 5 increased revenues 0 • GMP,
Slide 17: Impact of higher sales - illustrative
Impact of higher sales - illustrative Future 2014 Page 16 2014 Final Results Presentation March 2015
Slide 18: Financial highlights
Financial highlights • Successful fund-raisings totalling £8.2m (net of expenses) and admission to AIM • Acquisition of Biokosmes, an Italian development and manufacturing business • Revenues of £7.2m (2013: £0.49m) • Pro forma revenues of £8.9m (2013: £10.5m) • EBITDA loss of £0.4m (2013: loss of £
Slide 19: Reported Group Income Statement
Reported Group Income Statement All amounts expressed Year ended Year ended as £’000 under IFRS 31 December 2014 31 December 2013 Revenue 7,189 486 Cost of sales (4,535) (301) Gross profit 2,654 185 Gross margin 37% 38% Administrative expenses (3,373) (1,122) Amortisation of intangibles (508) (56) O
Slide 20: Segmental contribution
Segmental contribution Year ended 31 Brands Manufacturing Consolidated December 2014 (after i/co £’000 elimination) Revenue 675 6,514 7,189 Cost of sales (338) (4,197) (4,535) Gross profit 337 2,303 2,654 Gross margin 50% 35% 37% Page 19 2014 Final Results Presentation March 2015
Slide 21: Pro forma Group Income Statement - 2014
Pro forma Group Income Statement - 2014 2014 £’000 Revenue 8,938 Cost of sales (5,834) Gross profit 3,104 Gross margin 35% Administrative expenses (4,226) Other income 73 Operating loss before exceptionals (1,049) Exceptional items (449) Net finance costs 71 Loss before tax (1,427) Tax (46) Loss for
Slide 22: 2014 final results – income statement
2014 final results – income statement Headline Comment • Revenue increased to £7.2m (2013: £0.49m) Brands growth of 38%, plus Biokosmes acquisition • Gross profit increased to £2.7m (2013: £0.19m) As above, plus improved Brands margin • Gross margin achieved of 37% (2013: 39%) Impact of Manufacturin
Slide 23: Reported Group balance sheet
Reported Group balance sheet £’000 31 December 2014 31 December 2013 Fixed assets Intangibles 12,982 457 Property, plant & equipment 975 10 AFS assets - 31 Fixed assets - total 13,957 498 Current assets Inventories 1,856 174 Trade and other receivables 3,257 874 Other debtors 52 - Cash and cash equi
Slide 24: 2014 final results – balance sheet
2014 final results – balance sheet Balance sheet • Cash at 31 December 2014: £4.9m (31 December 2013: £0.5m) • Total debt at year end of £3.9m (2013: £0.3m; £1.8m on pro forma basis) – Acquisition-related convertible loan notes of £1.6m issued – Biokosmes debt of £2.3m • Net assets of £15.6m at year
Slide 25: Developments since September 2014
Developments since September 2014 • 30 year exclusive license deal in China for Lubatti – minimum purchase obligations of £5.7m in first five years • Recent manufacturing agreement and trademark sale • Two additional new partner deals signed across the range • 10 new product registrations and eight
Slide 26: Summary
Summary • Ageing population with deteriorating health • We offer a series of scientifically validated products • Under-utilised manufacturing capacity gives substantial earnings leverage • Strong balance sheet after recent equity raise • Significant recent deals giving momentum into 2015 Page 25 201
Slide 27: Management team
Management team Jerry Randall Gianluca Braguti Chief Executive Officer Manufacturing Director jrandall@venture-life.com gbraguti@venture-life.com Sharon Collins James Hunter Commercial Director Chief Financial Officer scollins@venture-life.com jhunter@venture-life.com Venture Life Group plc Venture