Phibro Animal Health Corporation · NASDAQ:PAHC
Phibro Animal Health — Bank of America Merrill Lynch 2017 Health Care Conference
21 slides from Phibro Animal Health's conference presentation, May 18, 2017
Slide 1: Phibro Animal Health Corporation 2017 Health Care Conference
Phibro Animal Health Corporation 2017 Health Care Conference May 18, 2017
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This communication contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical or current fact included in this report are forward-looking statements. Forward-looking statements d
Slide 3: A Global Leader in Animal Health
A Global Leader in Animal Health Global animal health company concentrating on food animals Dedicated to helping meet the growing worldwide demand for animal protein Value-based products and solutions to enhance health, nutrition and productivity Sell >1,400 product presentations in >65 countries to
Slide 4: Our Company
Our Company $759mm Net Sales $119mm Adjusted EBITDA Mineral Nutrition Animal Health Performance Products $216mm Net Sales $495mm Net Sales $48mm Net Sales $17mm Adjusted EBITDA $130mm Adjusted EBITDA $2mm Adjusted EBITDA Trace minerals for animals Poultry, swine, dairy, cattle, aquaculture Specialty
Slide 5: Net Sales and Adjusted EBITDA
Net Sales and Adjusted EBITDA Net Sales Adjusted EBITDA 114 119 749 752 759 692 51 49 48 110 653 8 59 91 65 217 216 227 76 102 202 203 385 431 471 486 495 14% 15% 16% 12% 13% 2013 2014 2015 2016 LTM 2017 2013 2014 2015 2016 LTM 2017 Licensing Revenue Margin Animal Health Mineral Nutrition Performanc
Slide 6: Net Sales
Net Sales Species Regions Performance Products $49 Mineral Nutrition Animal Health Other 15% $235 $217 United States Cattle 13% United States & Canada Poultry 39% & Canada Dairy 19% Brazil & Latin MACIE America Swine 13% China & Asia Animal Health $104 Pacific Animal Health $86 $ in millions Animal
Slide 7: Phibro's Competitive Strengths
Phibro’s Competitive Strengths Strong participation in key macro trends - Products aligned with need for increased protein production - Global presence with infrastructure in high growth regions - Leading positions in high growth segments Products and capabilities to drive customers’ success - Produ
Slide 8: Drivers of Phibro's Growth
Drivers of Phibro’s Growth Increasing Wealth, Food Supply Becoming Producer Productivity Population, Protein Limited Natural Resources Global Pressure Consumption Animal Health and Animal Welfare Bank of America 2017 Health Care Conference May 18, 2017 8
Slide 9: Animal Health Segment
Animal Health Segment Bank of America 2017 Health Care Conference May 18, 2017 9
Slide 10: Animal Health Segment
Animal Health Segment Overview Animal Health Segment Highlights Net Sales 60% of 8.8 billion U.S. broiler chickens receive Phibro product(s)(1) 471 486 495 25% of 10mm U.S. and Canada dairy cows use 385 431 OmniGen(1) 463 53% of Phibro’s sales are ex-U.S. & Canada Highly diversified customer base 20
Slide 11: Diversification and Expanding Margins
Diversification and Expanding Margins Nutritional Specialties and Vaccines Animal Health Segment Net Sales Operating Margin 172 146 26.2% 26.3% 135 23.3% 24.2% 64 21.6% 82 104 52 45 52 63 81 41 108 29 108 94 82 94 63 82 52 63 52 2013 2014 2015 2016 LTM 2017 2013 2014 2015 2016 LTM 2017 Nutritional S
Slide 12: Nutritional Specialties
Nutritional Specialties Animal Health Segment Key Products Net Sales Solutions for changing customer demands Products help improve health and 108 94 performance 82 63 Focus on dairy and poultry 52 2013 2014 2015 2016 LTM 2017 Key Proprietary Product – OmniGen-AF® Growth Opportunities Non-antibiotic
Slide 13: Vaccines
Vaccines Animal Health Segment Key Products Net Sales Poultry and swine vaccines 64 53 52 8 41 45 29 2013 2014 2015 2016 LTM 2017 Product Revenue Licensing Revenue Key Proprietary Product - TAbic ® Growth Opportunities Technology for formulation / delivery of vaccines Drive share gains through strai
Slide 14: MFAs and Other
MFAs and Other Animal Health Segment Key Products Net Sales Antibacterials 327 336 340 324 304 Anticoccidials 2013 2014 2015 2016 LTM 2017 Ethanol processing aids Key Proprietary Product - Virginiamycin Growth Opportunities Remedy for range of bacterial infections and enteric diseases Growth in emer
Slide 15: Mineral Nutrition Segment
Mineral Nutrition Segment Bank of America 2017 Health Care Conference May 18, 2017 15
Slide 16: Mineral Nutrition Segment
Mineral Nutrition Segment Key Products Net Sales Trace or macro mineral products including copper, zinc, cobalt, iron, selenium, manganese, magnesium, iodine and molybdenum 203 227 217 216 Customers use these products to fortify the daily feed 202 requirements of their livestock and maintain an opti
Slide 17: Our Competitive Strengths & Growth Strategies
Our Competitive Strengths & Growth Strategies Bank of America 2017 Health Care Conference May 18, 2017 17
Slide 18: Global Presence with Infrastructure in Key Growth Geographies
Global Presence with Infrastructure in Key Growth Geographies Direct Presence in 14 Countries and Distribution Network Covering 65 Countries Countries with Local / Direct Presence Countries where Phibro is Represented through Third-Party Distributors Phibro Manufacturing Locations Bank of America 20
Slide 19: Specialized Sales Force and Technical Staff
Specialized Sales Force and Technical Staff Sales force interacts with customers at Phibro Statistics corporate and producer level Total Employees >1,300 Frequent and close interactions Sales, Marketing and Technical Support >300 Technical support and research Field Service, Quality Control and Qual
Slide 20: Phibro's Competitive Strengths
Phibro’s Competitive Strengths Strong participation in key macro trends Products aligned with need for increased protein production Global presence with infrastructure in high growth markets Leading positions in high growth markets Products and capabilities to drive customers’ success Produc
Slide 21: Trademarks and copyright notice
© 2017 Phibro Animal Health Corporation, Teaneck, NJ 07666 Phibro; Healthy Animals. Healthy Food. Healthy World.; OmniGen-AF; Animate; Gemstone; AB20; Magni-Phi; Stafac; Terramycin; Neo-Terramycin; TM; Mecadox; Nicarb; Aviax; Lactrol; TAbic; MJPRRS; Cellerate Yeast Solutions; PAQ-Gro; V-Max; and oth
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