Comvita Limited · NZX:CVT
Comvita — FY2014 Earnings Presentation
25 slides from Comvita's earnings presentation, June 2014
Slide 1: Comvita Limited Investor Presentation 2013
COMVITA LIMITED INVESTOR PRESENTATION 2013 Neil Craig, Chairman, Ph. 021 731 509 Brett Hewlett, Chief Executive Officer, Ph. 021 740 160
Slide 2: Key Achievements
Key Achievements • Sales and profit guidelines achieved despite honey costs and high NZD • Sales growth of 11%. Second half year 24% up on second half of prior year • Strategy successfully deployed for addressing honey supply shortages • Investments made in building production capacity and systems i
Slide 3: Comvita Results in line with Guidance
Comvita Results in line with Guidance Financial results for 2014 2013 Change the year to 31 March $M $M % Revenue 115.3 103.5 11.4% EBITDA* 16.4 14.7 11.4% Net profit after tax 7.6 7.4 3.3% Earnings per share (cents) 24.95 25.71 (3.0%) Dividends (cents) 12.0 13.0 (7.7%) *EBITDA: Earnings Before Inte
Slide 4: Balance Sheet
Balance Sheet • Strong position, significant borrowing headroom for possible acquisitions and for capital expenditure • Any such acquisitions would need to be demonstrably earnings positive per share in the short-term Key Ratios 31-03-2014 Shareholder equity ratio 62% Net debt 26m Net debt to EBITDA
Slide 5: Financial Performance
Financial Performance $115m Group Revenue EBITDA** $16.4m $103m $15.5m $14.7m $96m $85m $82m $11.2m $71m $65m* $6.3m $5.3m $39m $4.8m $31m $4.1m $0.4m* 2005 2006 2008 2009 2010 2011 2012 2013 2014 2005 2006 2008 2009 2010 2011 2012 2013 2014 * 15 month period, due to change in balance date. ** EBITD
Slide 6: Sales by Region, Sales by Category
Sales by Region Sales by Category $47.5m ASIA 32% HEALTHCARE $28.4m AUSTRALIA 56% $25.0m FUNCTIONAL FOODS NEW ZEALAND 4% $7.0m PERSONAL CARE UK/EUROPE 7% $7.4m MEDICAL NORTH AMERICA 1% OTHER 6
Slide 7: Market Segments
Market Segments Comvita manufactures, markets and distributes natural health and beauty products across four key broad market segments 32% 56% 4% 7% HEALTHCARE FUNCTIONAL FOODS PERSONAL CARE MEDICAL Variety of healthcare Worlds largest Comprises eczema care, Medical-grade products including Fresh ma
Slide 8: Outlook
Outlook • Focus on earnings growth • Continued strong growth in key Asian markets • Online and retail sales developments • Increased marketing activities to support the launch of new products • Further diversification of ingredient platform leading to exciting new business development opportunities
Slide 9: Value Added
Value Added Generic Comvita branded health honey Medical Skincare $7.5* $24.5 $134 $330 $500 * Retail selling price per 250g equivalent of raw Manuka honey 9
Slide 10: The Comvita Value Model
The Comvita Value Model Bottom Standard Layout Without Frond 10
Slide 11: Building a Premium Global Brand
Building a Premium Global Brand • Brand reputation in Asia allows significant price premium over nearest competitors • Brand offer on focussed, differentiated ingredient Bottom Standard Layout platforms • Brand story has great level of meaning with customers Without Frond • Source and efficacy of pro
Slide 12: Diversity and Reach of Direct Channels a Real Strength
Diversity and Reach of Direct Channels a Real Strength • Asia 78% direct to consumers Bottom Standard Layout • 35 dedicated stores and a total of 400 branded retail locations in China • 78 Comvita retail locations, 44 in Hong Kong, Without Frond 13 in Taiwan, 16 in Korea, 1 in Japan, 1 in UK and 3 i
Slide 13: Research
Research • Circa $2.9m p.a. in research and development • Isolation and identification of lead bioactive compounds • Clinical trials Bottom Standard Layout • New product development • Regulatory approvals for health claims Without Frond • Development of tests for honey quality and authenticity • Pla
Slide 14: Natural Health Innovators
Natural Health Innovators • FDA approved and CE marked medical devices • A total of 71 patents or patents pending covering 21 different unique innovations around wound care, Bottom Standard Layout product analysis, quality control and selected product health claims Without Frond • Global licensing a
Slide 15: Consumer Needs Focus Design
Consumer Needs Focus Design • Large scope to further broaden product offering - Foods, healthcare, personal care, medical • Very large global natural products sector Bottom Standard Layout - Asian focus • Global trends support growth Without Frond - Ageing populations - Growing preference to self-me
Slide 16: Specialist Manufacturing
Specialist Manufacturing • Centre of excellence in honey testing capability • Australasia’s most advanced in-house laboratory Bottom Standard Layout • Ethanol and water extraction for bio-actives • Honey processing, liquid formulations and Without Frond packing • Exclusive third-party relationships
Slide 17: Manuka Honey
Manuka Honey • The worlds largest processor of Manuka honey • 2014/15 honey season: 30,000 hives, specialist Manuka honey producer Bottom Standard • Soon Layout to have 85,000 hives under contracted supply Without Frond • >50% of Comvita’s honey supply now under full ownership or contract through-ou
Slide 18: Fresh Olive Leaf
Fresh Olive Leaf • Approximately one million olive trees on two plantations based in South QLD, Australia • Specialised on-site extraction facility enables Bottom Standard Layout rapid extraction of freshly harvested olive leaf • Plant variety selection and screening programme Without Frond • Only t
Slide 19: Bottom Standard Layout
Bottom Standard Layout Without Frond 19
Slide 20: Manuka Honey
Manuka Honey Without Frond 20
Slide 21: Propolis & Royal Jelly
Propolis & Royal Jelly Without Frond 21
Slide 22: Winter Wellness
Winter Wellness Without Frond 22
Slide 23: Fresh Olive Leaf Complex
Fresh Olive Leaf Complex Guns, OLIVE LEAF EXTRAC'* HUDREN UEAFEXTI OLIVE LEAF EXTRACT PBB : ‘tsar (anwar Share Nature. Share Life. COMVITA
Slide 24: Medihoney
Medihoney Comuiray MEDIHONEY® . Natural Comms ia SsEplice MEDIHONEY ® bite Body Wash LOL ia +, pee ; Natural Cosy 2g (@) Se Moisturising Lotion MEDIHONEY® ay. 20 ¢ "4 = = MEDIHONEY® yz 2] ©) oy Eczema Cream Woundel™ =) C@& Se FORMULATED FOR SENSITIVE, DRY —_ AND ECZEMA PRONE SKIN " FORMULATED FOR SE
Slide 25: Share Nature. Share Life.
Share Nature. Share Life.