Spc Global Holdings Ltd · ASX:SPG
Spc Global — Investor Presentation (October 2020)
38 slides from Spc Global's investor presentation, Oct 27, 2020
Slide 1: Investor Presentation
Investor Presentation Tony Rowlinson CEO and Managing Director October 2020
Slide 2: Who we are
Who we are An Australian beverage and wellness supplement company, specialising in the development of innovative health focused products for retail in Australia and Asia. Our Ambition To be a leading provider of beverages, functional foods, nutraceuticals and wellness supplements that improve the qu
Slide 3: The revolution in food
The revolution in food Shift to healthy Healthy living Obesity eating and lifestyles – concerns have consumption of exercise, diet, exploded myths more natural work/balance about sugar products Covid-19 drives Increased Formal consumer focus consumer mealtime on hygiene and choice replaced by “on he
Slide 4: Markets we operate in and our share
Markets we operate in and our share Growth
Slide 5: Our product portfolio
Our product portfolio Premium fresh juice All natural wellness Premium health & beauty OBL Superfoods & plant based Marine Collagens 100% Australian juice ingredients Australian superfood with OJC Immunity Shots Collagen Cold pressed range Wellness beverages Plant based range Adaptogen powders Quenc
Slide 6: Product Capabilities
Product Capabilities Fruit Juices Manufacturing capabilities Sports Drinks • Juice Extraction & beverage • Bottling (50m litres p.a) packaging • Functional gels, sachet, oil pressing Functional Drinks • Cold storage and distribution • Quality assurance and compliance • Technology & micro-dosing Hydr
Slide 7: 2020 Financial performance
2020 Financial performance x a
Slide 8: 2020 impacts
2020 impacts • Acquired Original Juice Co. • OJC brand relaunch delivers growth • Drought and fires impact supply by 40% • No grower contracts • Retailer service levels from 98% to 85%
Slide 9: 2020 financial review
2020 financial review FY20 Gross Gross Profit EBITDA loss Non COGs Cash Sales Margin Expenses +17% 15% $5.5m -32% $2.9m To $42m in FY20 25% in FY19 Loss of $11.6m To $10.3m in in FY19 FY20 50 37.5 25 12.5 0 2017 2018 2019 2020 Gross Sales Gross Profit
Slide 10: Significant internal momentum in the past 6 months
Significant internal momentum in the past 6 months EBITDA & SALES GROWTH CHINA ENTRY PRICE INCREASES 1st quarter turnaround, now Eridani brand has been launched Effective 14th September 2020, trading profitably and secured a $1 million order to prices with all Australian retailers supply the Chinese
Slide 11: Overall strategy & delivery
Overall strategy & delivery
Slide 12: Overall strategy
Overall strategy Build Brand Drive performance Expand into China portfolio Improvements Fast-track product Lead Player in Security of Supply roll-out Functional Foods
Slide 13: Our objectives
SALES CAGR OF 16% Our objectives DIVISIONALISE PER ANNUM OBL TO ACHIEVE 15% BUSINESS SHARE OF AUSTRALIAN IN BEST SERVICING JUICE MARKET NEW MARKETS TO BE A LEADING PROVIDER LAUNCH ERIDANI CHINA OF BEVERAGES, FUNCTIONAL ALL NATURAL HEALTH TO ACCOUNT FOR & BEAUTY BRAND FOODS, NUTRACEUTICALS AND 30% OF
Slide 14: First quarter results
First quarter results Juice sale: $9.6 million EBITDA +28% $1,5m VS P.Y ($438k)
Slide 15: Orange juice & functional benefit strategy
Orange juice & functional benefit strategy
Slide 16: Orange Juice Co. Strategy
Orange Juice Co. Strategy Leverage brand Commit to Build out loyalty, heritage remaining a offering under and trust quality brand OJC label Juice ‘Black Label’ Pressed Original Juice Seasonal Probiotic
Slide 17: Orange Juice Co. growth map
Orange Juice Co. growth map 01 New channels, Expand into new channels (3,000+ stores) wider distribution of Route current range Petrol & Convenience Export 02 Product range Product differentiation Current range and Fermented Beverages distribution On-the-go offering (2,500 stores) Better-for-you bev
Slide 18: Wellness range offer
Wellness range offer Launch a range of products containing all natural ingredients WRSURWHFW\RXULPPXQHV\VWHPDQGGHOLYHU´UHDOµIXQFWLRQDOEHQHÀWV Wellness shots Functional beverages Recover Relax Calm Immunity Antioxidant Gut health Renew Brain power Purify Antioxidant Focus Digestion Immunity Energy Dig
Slide 19: All natural ingredients
All natural ingredients GINSENG GRAPESEED IMMUNITY ANTIOXIDANTS ENERGY oer FM SPIRULINA | Focus TURMERIC | orrox FOCUS IMMUNITY DETOX oy ONG wg i * ’ GINKGO ACACIAFIBRE | COLLAGEN FOCUS DIGESTION RENEW PROBIOTICS HEMP SCR GLEE DIGESTION CALM ae THE FOOD REVOLUTION GROUP
Slide 20: Launch of Juice Lab range of Wellness Shots and Beverages
Launch of Juice Lab range of Wellness Shots and Beverages Wellness Shots Range of 9 SKU’s utilizing all natural superfoods, plant based ingredients Wellness Beverages Range of 6 SKU’s all natural, plant based ingredients
Slide 21: Australian retailer plan
Australian retailer plan • FOD now producing Coles-branded Iced Tea and • Plan to roll out Juice Lab Wellness beverages in Seasonal Juices January 2021 • Extensive ranging of Original Juice Co with over • Tendering for $5m Coles Housebrand Orange range 14 lines listed 12% Price increase • Developing
Slide 22: Wellness supplements
Wellness supplements
Slide 23: The global market for collagen
The global market for collagen FOD’s initial focus is on the collagen market, which is currently worth $4.6 billion, anticipated to exceed $6 billion by 2026. Other areas being developed include adaptogenics, fibres and plant based supplements.
Slide 24: Marine Collagen range aimed at the Chinese market
Marine Collagen range aimed at the Chinese market
Slide 25: Marine Collagen range aimed at the Chinese market
Marine Collagen range aimed at the Chinese market
Slide 26: Juice Lab range of plant based wellness powders (Australia)
Juice Lab range of plant based wellness powders (Australia)
Slide 27: Chinese distribution strategy
Chinese distribution strategy
Slide 28: Extensive channel focus in China
Extensive channel focus in China Careline/C-mart Network Utilising e-commerce platform which has 10 000 distributors today. Careline will be an active distribution channel for new products from FOD’s plant upgrade e-Commerce FOD plans to establish JD and Tmall e-commerce shops/presence Potential ver
Slide 29: Driving operational efficiency
Driving operational efficiency
Slide 30: Planned activity to deliver $1.5 million in savings per annum
Planned activity to deliver $1.5 million in savings per annum Current inefficiencies Poor fruit > $200k Conversion inefficiency > $2 million Downtime, waste, overfill > $500k PASTEURIS- PULP PASTEURIS- RECEIVING SQUEEZING BATCHING BOTTLING PACKING ATION REMOVAL ATION 1 2 OEE monitoring downtime and
Slide 31: Security of supply
Security of supply 80% of annual volume is now under contract to our growers TRANSPORT & GROWERS PACKAGING RAW MATERIALS TECHNOLOGY • Fruit and vegetable products • Packaging inputs sourced • Aus Chilli • Reliable and efficient sourced from industry- from quality manufacturers transport contractors
Slide 32: Outlook
Outlook
Slide 33: 2020 and beyond
2020 and beyond Leverage the OJC brand Position Original Juice Co. Mill Park upgrade will to maximise value from in China through boost product variety and new product development distribution partners capabilities Leverage domestic Adapt customer centric Seek juice acquisition/ partners through new
Slide 34: Appendix
Appendix
Slide 35: Our strategy
Horizon 3 Establish leadership position in wellness supplements • Launch Obtain substantial share in categories we operate in Our strategy • Extend availability into new markets • Enter new categories building off brands platforms • Progress juice acquisition/consolidation Horizon 2 Launch wellness
Slide 36: Careline/Norman Li Strategic Investment
Careline/Norman Li Strategic Investment Final Tranche of $20.25m Strategic Investment Final Performance Shares Summary Tranche 1 – 18.5 million ordinary shares, an investment of A$1,000,000, on or before 28 September 2018. Performance Milestone Shares Tranche 2 – 46.5 million ordinary shares, an inv
Slide 37: Corporate snapshot
Corporate snapshot Capital Structure Substantial Holders (as at 30 Septembet 2020) Share Price $0.045 Norman Li 35.57% Shenzhen Youngheng Market Capitalisation $32.61m 7.59% Biotechnology Co Limited Shares on Issue 724.68m Cash at bank A$1.53m
Slide 38: Contact
Contact Tony Rowlinson Craig Sainsbury CEO & Managing Director Investor Relations +61 3 9982 1451 craig.sainsbury@marketeye.com.au +61 428 550 499
Spc Global Holdings — Investor Presentation (October 2020) on 6ix