Nuchev Pty Ltd · ASX:NUC
Nuchev Pty — H1 FY2020 Earnings Presentation
23 slides from Nuchev Pty's earnings presentation, Feb 27, 2020
Slide 1: Nuchev Limited FY20 Half Year Results
For personal use only Nuchev Limited FY20 Half Year Results February 2020
Slide 2: Food for a better life
For personal use only Food for a better life 2
Slide 3: Agenda and today's presenters
Today’s presenters For personal use only Agenda Ben Dingle CEO, Executive Director and Founder Business Strengths 4 1H20 Financial and Business Highlights 5 1H20 Financial Performance 6 Outlook 8 Strategy and Business Positioning 10 Darryl Lasnitzki Appendix 19 CFO and Company Secretary 3
Slide 4: Business strengths
Business strengths For personal use only Significant global market opportunity Premium, differentiated product, Oli6® is a premium, trusted, supported by science Australian made and owned brand Goat milk based infant formula (GIF) is a rapidly growing segment of the infant formula (IF) market GI
Slide 5: 1H20 Financial and Business Highlights
1H20 Financial and Business Highlights For personal use only Volumes (Metric Tonnes) Record half year revenue and volumes 1H20 Volume of 265.7 MT, up 257% on previous corresponding period (PcP) 265.7 240.5 1H20 Revenue of $8.1 million, up 219% on PcP 74.4 Revenue and Volumes exceed 1H20 Prospe
Slide 6: 1H20 Financial Performance
For personal use only 1H20 Financial Performance 6
Slide 7: Key financial and operational metrics
Key financial and operational metrics For personal use only Prospectus Commentary 1H20 % Change 1H19 % Change forecast5 Continued strong volume and revenue growth in 1H20 compared with PcP - Volume up 257%; Revenue up 219% Volume (MT)1 265.7 240.5 10% 74.4 257% Volume and revenue exceeded half y
Slide 8: Outlook
For personal use only Outlook 8
Slide 9: 2H20 Outlook
2H20 Outlook For personal use only 1H20 Revenue and volumes exceeded 1H20 Prospectus forecast Expect benefit of operating leverage from increased scale to continue COVID-19 virus creating market uncertainty: － Nuchev strongly supports and stands with those impacted in this global tragedy and c
Slide 10: Strategy & Business Positioning
For personal use only Strategy & Business Positioning 10
Slide 11: Nuchev's Oli6 GIF range
Nuchev’s Oli6® GIF range For personal use only The product range covers the full age spectrum and development requirements Stage 1 formula Stage 2 formula Stage 3 formula Stage 4 formula Goat Milk Powder (0-6 months) (6-12 months) (1-3 years) (3-7 years) (adult) 11
Slide 12: Oli6's value proposition is differentiated and compelling to end consumers
Oli6’s value proposition is differentiated and compelling to end consumers For personal use only Health benefits Oli6® offers credible, differentiated health benefits supported by research Scientific laboratory research on the health benefits associated with oligosaccharides in Oli6®1 Peer-to-pe
Slide 13: Business model focuses on quality, security and scalability
Business model focuses on quality, security and scalability For personal use only Supply chain (primary strategic partners) Distribution chain Imported goat Blending, canning and ingredient sourcing packaging End consumers Base powder Distribution via multiple manufacturing sales channels Supply red
Slide 14: Flexible supply chain delivers competitive advantage
Flexible supply chain delivers competitive advantage For personal use only Supply Chain 1 2 3 Highest quality materials Flexibility Quality control Direct goat ingredient supply from the Goat materials imported in stable powder form Stage gated quality control and stringent Netherlands, the ce
Slide 15: Multiple sales channels ensures efficient routes to market and reduces risk
Multiple sales channels ensures efficient routes to market and reduces risk For personal use only Australian-specification China-specification 1. Australian retailers 2. CBEC 3. Other markets 4. Offline retail in China Subject to SAMR registration, potential upside Year 1 volumes based on contracts
Slide 16: Oli6 is an attractive value proposition to distribution channel partners
Oli6 is an attractive value proposition to distribution channel partners For personal use only Distribution chain 1 GIF is a premium and 2 Growing consumer awareness is 3 Oli6®is a premium, trusted, differentiated IF product driving end consumer demand Australian-made and owned brand Oli6® has dif
Slide 17: Strategy – key pillars
Strategy – 3 key pillars For personal use only Brand positioning Product quality and Multi-channel sales & awareness nutritional development strategy and channel support Invest in building brand equity amongst Laser focus on quality of product, through Leveraging existing distributor relations
Slide 18: For personal use only
nuchev food for a better life ~— he 2 = S) a 2) = © ‘= e) D — ® a. = S) LL
Slide 19: Appendix
For personal use only Appendix 19
Slide 20: Statutory profit and loss (1H20 and 1H19)
Statutory profit and loss (1H20 and 1H19) For personal use only Statutory Results for the 6 months ending: Commentary Statutory Statutory $ millions Notes 1HFY20 % of Revenue 1HFY19 % of Revenue 1H20 Distribution related expenses 6% of Revenue (1H19: 9%; full year Prospectus 7%) Revenue 1 8.1 2.5
Slide 21: Statutory balance sheet (31/12/19 and 30/06/19)
Statutory balance sheet (31/12/19 and 30/06/19) For personal use only Consolidated statement of financial position as at: Commentary Nuchev has $15.2 million cash as at 31 December 2019 $ millions 31 December 2019 30 June 2019 Cash and short-term deposits 15.2 10.3 With the first-time adoption o
Slide 22: Reconciliation from statutory NPAT to pro forma NPAT
Reconciliation from statutory NPAT to pro forma NPAT For personal use only Pro Forma adjustments from Statutory NPAT to Pro forma NPAT Commentary Pro forma adjustments include: Notes 1HFY20 Statutory NPAT (7.8) Additional estimated public company costs that would have been incurred Public company
Slide 23: Disclaimer
Disclaimer For personal use only This presentation is provided by Nuchev Limited (ACN 163 225 090) (Nuchev) to provide summary information about Nuchev and its respective subsidiaries (together, the Group). Statements in this presentation are made as at the date of the presentation and the informati