Vita Life Sciences Limited · ASX:VLS
Vita Life Sciences — Shareholder Meeting (May 2007)
20 slides from Vita Life Sciences's shareholder meeting presentation, May 31, 2007
Slide 1: Shareholder Presentation Annual General Meeting
Shareholder Presentation Annual General Meeting 31 May 2007 0
Slide 2: Agenda
Agenda 1. Welcome 2. Report: Chairman’s Report Executive Report 3. Ordinary and Special Business: Resolutions 1 - 8 4. Question Time 5. Close 1
Slide 3: Voting Summary
Voting Summary Res Business For Against Abstain 1 Adoption of Remuneration 24,208,294 : 99.9% 21,336 : 0.1% 8,452 Report 2 Election of Mr H G Townsing 15,563,004 : 99.9% 2,007 : 0.1% 8,673,071 3 Consolidate shares and options 24,218,409 : 99.9% 17,621 : 0.1% 2,052 4 Establish Investment Division 24,
Slide 4: Restoring Shareholder Value & Liquidity
Restoring Shareholder Value & Liquidity Directors primary objectives for the past 3 years have been to: Restore shareholder value; and Return liquidity of shareholders investment in Vita Life by re-listing. Distribution of Cyclopharm shares to shareholders in early ‘07 valued Cyclopharm at only $5.3
Slide 5: Operating Structure
Operating Structure Vita Life Health division Investment division Brands Investment in and funding of projects Vita Health Mitre Focus: loan to fund Herbs of Gold Malaysian housing project Vita Science Future investment projects will be determined on merit Vita Life Pharma Direct Marketing Channels
Slide 6: Consolidated Financials 2006
Consolidated Financials 2006 Performance $million Y/E Dec 06 Sales 11.1 Earnings before interest and tax 10.1 Net Profit after tax * 9.8 Position $million Y/E Dec 06 Assets 13.0 Liabilities 15.1 Shareholders Funds -2.1 * Includes profit from divestment of Cyclopharm Ltd. 5
Slide 7: Normalised Operating Performance
VITA LIFE Normalised Operating Performance $ Million 2005 2006 Sales from continuing operating activities # 11.1 11.1 Cost of sales (5.4) (5.2) Gross Profit 5.7 5.9 Distribution and marketing (2.1) (1.6) Employees and consultants (3.7) (3.7) Net finance expense* (0.6) (0.3) Other expenses* (1.2) (1.
Slide 8: Summary of cash flow 2006
Summary of cash flow 2006 $ Million Cash flow from operations 0.52 Cash flow from financing 16.11 Cash flow from investing -15.65 Movement in 2006 Cash Position 0.98 7
Slide 9: herbsofgold
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Slide 10: Normalisation of Health Division's Performance
Normalisation of Health Division’s Performance Year End 31 December 2005 2006 $ Million Net Sales from continuing operations 11.1 11.1 Direct selling and operating expenses (12.1) (11.0) * Adjusted earnings before interest, depn, amort and tax (1.0) 0.1 * Excludes costs of a one time nature relating
Slide 11: Health Division 2005 – 2006: A period of rebuilding
Health Division 2005 – 2006: A period of rebuilding Established systems, controls and new marketing initiatives for existing OTC business to become profitable Recruited key new executives Developed platform to leverage established OTC market position in South East Asia established MLM established Ph
Slide 12: Health Division: Platform for 2007 – 2009
Health Division: Platform for 2007 – 2009 2007 Two thirds of budgeted revenue growth from traditional OTC business One third of budgeted revenue growth from MLM and Pharma Direct businesses 2008 – 2009 Expected more than half of revenue and profit growth from MLM and Pharma Direct businesses 11
Slide 13: Investment Division
Investment Division Vita Life is a small company with negative assets of $2.0m at Dec 2006. The Company needs to build its asset base to re-establish itself and become financially sound. Vita Life has the skill set within its management to avail itself of investment opportunities that can produce su
Slide 14: Investment Division
Investment Division Vita Life group loaned $1.1 million to Mitre Focus which has a 61.7% interest in Land Co. Vita Life effectively controls Mitre Focus. Land Co is developing 372 dwellings in 3 phases over 3 years. Land Co gross development value: $30.0 million. Vita Life group entitled to 32.6% of
Slide 15: Legal update
Legal update Vita Life has no “liability” cases. It’s only cases are where it is making claims Vita Health Malaysia case against former employees and a contract manufacturer Arthur Anderson Singapore case for negligence in auditing financial records of VitaHealth Contingent case against Pan Pharmace
Slide 16: Annual General Meeting Key Shareholder Resolutions
Annual General Meeting Key Shareholder Resolutions Consolidate shares at 4:1. 51,357,651 shares to 12,839,413 Establish Investment division CVC Venture Managers to underwrite $4.5m of possible $6.7m capital raising via shareholder rights issue For Mr. Tie, the Company’s managing director, to be enti
Slide 17: Shareholder Rights Issue and IPO
Shareholder Rights Issue and IPO Post consolidation 13.66m shares on issue including LTIP shares At 20c / share, implied market cap pre rights issue: $2.7m Enterprise value: ($2.7m + debt $3.5m) $6.2m Forecast earnings in prospectus 6 months ending 30 June 2007 Rights issue 2:1 to shareholders and o
Slide 18: Rights Issue Proceeds
Rights Issue Proceeds Use of proceeds Minimum subscription Fully subscribed $4.5 million $6.7 million $million Health division 2.0 2.0 Investment division 1.1 1.6 Repayment of borrowings 0.9 2.5 Offer costs 0.5 0.6 Total 4.5 6.7 17
Slide 19: Summary
Summary Vita Life has completed it’s restructure phase Vita Life is now building a profitable business and is planned to have financial structure befitting a listed company in 2-3 years Listing on ASX now To give liquidity to the shareholders To give shareholders the opportunity to invest at an attr
Slide 20: Thank You
Thank You