Venture Life Group Plc · LSE:VLG
Venture Life — H1 2019 Earnings Presentation
27 slides from Venture Life's earnings presentation, September 2019
Slide 1: The partner of choice for self-care products
The partner of choice for self-care products Venture Life Group plc Interim results presentation September 2019
Slide 2: Disclaimer
This document (the "Presentation") is being provided to a limited number of parties who have previously expressed an interest in acquiring an interest (the "Investor Interest") in Venture Life Group plc (the "Company"). If you are in any doubt about the investment to which the Presentation relates,
Slide 3: About Venture Life
About Venture Life • International consumer self-care group - founded 2010 Head Office and • Portfolio of marketed products, growing partner base, Commercial product pipeline (London) 16 staff • Products sold in 40+ countries, 100+ partners R&D and Manufacturing Facility (Milan) 88 staff Venture Lif
Slide 4: Our market opportunity
Our market opportunity The population is ageing and growing rapidly¹ Self-medication market annual change 2014-15³ 3.2 3 2 2.1 Billion 1 0.9 0.5 0 1990 2015 2050 2100 Population aged 60+ Healthcare budgets are under increasing pressure² £4.3bn 66% £14.9bn Sources: 1. United Nations (2017). Net defic
Slide 5: Our platform for sustainable growth
Our platform for sustainable growth Strategy: Our growth strategy aims to leverage the scalable platform built at Venture Life Our Brands Our Distribution Network Our Manufacturing Opportunity Capability • 58% Utilised in 2018* Earnings positive • No significant CAPEX requirements Cash positive Orga
Slide 6: H1 2019 Highlights
H1 2019 Highlights • 7 new international partnering agreements signed • Dentyl brand growth with new business • Acquisitive strategy to continue to accelerate profitability • Strong balance sheet, with cash for further acquisitions • Global partners, global reach • Built growth platform that can be
Slide 7: Six months ended 30th June 2019 financial highlights
Six months ended 30th June 2019 financial highlights • Revenues up +14% to £9.4 million (H1 2018: £8.3 million) • Gross profit increased +18% to £3.5 million (H1 2018: £3.0 million) • Gross margin increased to 37.3% (H1 2018: 36.0%) • Adjusted EBITDA increased 5.5% to £0.7 million1 (H1 2018: £0.7 mi
Slide 8: Our fully integrated model
Our fully integrated model Research & Manufacturing Distribution Development • Innovation • Quality • Commercial control expertise • Agility Consumer • Excellent • Capital light Consumer • Regulatory and demand Technical customer service distribution supply model expertise • Global accreditation • P
Slide 9: Global distribution network
Global distribution network UK Partners International Partners Venture Life Group plc 9
Slide 10: Self-care product portfolio
Self-care product portfolio Key Self-care Categories Oral Health Proctology Dermatology Brain Function & Memory Venture Life Group plc 10
Slide 11: Delivering growth through focus on strategic drivers
Delivering growth through focus on strategic drivers Partners M&A Operational Innovation Strategic Leverage Drivers Existing and new Accelerated profitability New products Unloved brands that can distribution partners developed in-house be leveraged through increased throughput Group revenue (£m) Gr
Slide 12: Financial Highlights
Financial Highlights
Slide 13: H1 2019 profit and loss account
H1 2019 profit and loss account £ million H1 H1 % 2019 2018 change Revenue 9.4 8.3 14% Comments: Gross Profit 3.5 3.0 18% • Revenue growth up Gross Margin 37.3% 36.0% 3.5% +14% Total admin expenses 3.6 3.0 18% • Gross profit +18% Adjusted EBITDA 0.75* 0.71 5.5% • Adjusted EBITDA* Operating Profit/(L
Slide 14: Revenues H1 2019
Revenues H1 2019 • Revenues increased 14% to £9.4 million (H1 2018: £8.3 million) CAGR Growth 27% 14% 2014-2018 H1 2019 v H1 2018 £m £m Revenue spilt between Revenue split between Customer Brands Customer Brands and Venture Life Brands and Venture Life Brands Full Year 10000 Half Year 20,000 18,000
Slide 15: Balance sheet
Balance sheet £ million June 2019 December 2018 Fixed assets 24.9 25.1 Cash 10.9 9.6 Comments: Other current assets 10.7 10.9 • Strong balance sheet Total assets 46.5 45.6 • Cash balance more than £10 million Total debt (excluding finance 4.5 3.8 leases) • Additional €1m of low cost long-term debt O
Slide 16: Commercial Highlights
Commercial Highlights
Slide 17: Brand highlights H1 2019 - UltraDEX
Brand highlights H1 2019 - UltraDEX UltraDEX - UK • Waitrose delist, slow NPD uptake • New business – ASDA, Well Pharmacy, AAH • Existing business - Superdrug • Marketing campaign launched – #youneverknow UltraDEX - international • 2 line extensions launched in 2 markets • China – launched UltraDEX,
Slide 18: Brand highlights H1 2019 - Dentyl
Brand highlights H1 2019 - Dentyl UK - Dentyl • Growth with new business - Lloyds pharmacy, Morrisons • Existing business - Superdrug • Marketing campaign – #ifitsnotinthesinkitsinyourmouth • Legacy delists/one-offs – Waitrose, Wilko, discounters International markets - Dentyl • China – issues hampe
Slide 19: International Highlights H1 2019
International Highlights H1 2019 Venture Life brands • 7 long term distribution agreements completed, including Myco Clear in France Performance • Clinical study for Myco Clear – Q2 2020 completion • 14 new product launches in H1 2019 • Procto-eze performing well – good case study • Lubatti/China –
Slide 20: Our Manufacturing Scalability
Our Manufacturing Scalability Capacity 80 Units per year (million) 60 40 70 20 40 21 23 0 Actual 2017 Actual 2018 £1m £4m Additional Capex (£million) 2018 Group revenue £18.8m Utilisation (as % of 40m units per year 58% capacity) No. of products produced in 2018 23m Anticipated capacity with £1m add
Slide 21: Strategic priorities
Strategic priorities • Acquisition of small to medium sized assets Acquisition • Earnings enhancing • In-house development of Dentyl asset Innovation • UltraDEX line extensions • Continued development of R&D projects Development • Continued development of manufacturing projects • Continued organic g
Slide 22: Summary
Summary • Self-care market growing • VLG platform for sustainable growth • Circa £10m free cash available, plus debt facilities for further acquisitions • Impact of further acquisitions NOT in market forecasts • Proven track record in M&A • Dentyl – manage, integrate, China opportunity • VLG + brand
Slide 23: Appendices
Appendices
Slide 24: An experienced management team
An experienced management team Jerry Randall Sharon Collins Gianluca Braguti Andrew Waters Chief Executive Officer Chief Commercial Officer Chief Manufacturing Jerry Randall Chief Financial Officer Officer • Experienced executive • Over 20 years experience • Chartered Accountant director in internat
Slide 25: Award winning
Award winning We are extremely proud to have been awarded several awards, recognising both our fast and dynamic business growth and our strong leadership 25 Venture Life Group plc
Slide 26: Net Debt/(Net Cash) position
Net Debt/(Net Cash) position £’M June 2019 December Comments 2018 Italian term loans 3.4 2.6 €4.1m principal Invoice financing 1.1 1.2 On-going facility Cash 10.9 9.6 Net Cash/(Net debt) 6.4 5.8 Well strengthened net cash + Venture Life Group plc 26
Slide 27: Shareholder register
Shareholder register Major Shareholders The percentage of shares that are not in public hands is 26.1%. Shareholder Number of shares held % issued share capital JO Hambro Capital Management Limited 8,370,717 9.9% BGF Investment Management Limited 7,880,000 9.4% Mr Gianluca Braguti* and associated ho