FY18 RESULTS PRESENTATION 29 August 2018 ASX: BWX
Disclaimer This presentation has been prepared by BWX Limited ACN 163 488 631 (BWX) The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. This presentation is provided to you on the basis that you are a "sophisticated investor" (in accordance with subsection 708(8) or (10) of the Corporations Act 2001 (Cth) (Corporations Act)) or a “professional investor” (in accordance with subsection 708(11) of the Corporations Act), to whom his presentation has been prepared by BWX Limited ACN 163 488 631 (BWX). The information contained in this presentation is for information purposes only and has been a disclosure document is not required to be given under the Corporations Act. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Please note that, in providing this presentation, BWX has not considered the objectives, financial position or needs of any particular recipient. BWX strongly suggests that investors consult a financial advisor prior to making an investment decision. This presentation is strictly confidential and is intended for the exclusive benefit of the institution to which it is presented. It may not be reproduced, disseminated, quoted or referred to, in whole or in part, without the express consent of BWX. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of BWX, its related bodies corporate, shareholders or respective directors, officers, employees, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation. This presentation may include “forward looking statements”. Forward looking statements can generally be identified by the use of the words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” “guidance” and other similar expressions. Indications of, and guidance on, future earning or dividends and financial position and performance are also forward looking statements. These forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of BWX and its officers, employees, agents or associates, that may cause actual results to differ materially from those expressed or implied in those statements. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward looking statements and BWX assumes no obligation to update that information. This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this presentation nor anything contained in it forms the basis of any contract or commitment. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities of BWX have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended ( Securities Act ) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. 1
FY18 result highlights Net revenue 105% vs pcp $148.7m Underlying EBITDA 52% vs pcp $40.3m Underlying NPAT 38% vs pcp $24.2m Full year dividend 11% vs pcp of 7.45 cents per share 1 Note: 1. Including interim and final dividends. 2
Strong performance in a transformational year FY17 – FY18 net revenue bridge (AUD million) 1 Summary Group net revenue growth of 105% 18.6 — Acquired businesses improving in H2 post 148.7 30.3 integration process 30.3 (7.0) 3.8 72.7 — Sukin organic growth of 6.1% through expansion into domestic grocery channel and ongoing international expansion — $79m sales contribution from acquisitions FY17 Sukin Mineral Fusion Andalou Nourished Third party FY18 Naturals Life and other with significant upside potential Sukin gross margin increased during the period notwithstanding dilutive impact of Underlying EBITDA (AUD million) 2,3 acquisitions — Andalou and Mineral Fusion products manufactured by third parties with resultant 22.8 lower margins 17.5 — Capacity at Dandenong plant provides 13.6 opportunity to internalise select products in 12.8 the near-term 10.4 9.8 8.4 — Nourished Life gross margins reflective of 6.4 business model – structural work on supply chain provides opportunity for expansion Entry into Coles has not been dilutive to Sukin 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 Australia gross margins Note: 1. Net of intercompany eliminations. 2. Excludes restructuring and acquisition expenses. 3. 1H15 and 2H15 shown on pro forma basis. 3
Acquired businesses are broadly performing in line with expectations at the time of acquisition Andalou Naturals Mineral Fusion Nourished Life FY2018 net revenue (USD million) 1,2 CY2017 net revenue (USD million) 1,2 FY2018 net revenue (AUD million) 1,2 35.0 50.0 70.0 41.0 40.2 30.0 60.0 24.0 40.0 22.0 25.0 50.0 30.0 20.0 40.0 25.0 15.0 23.4 30.0 20.0 10.0 20.0 10.0 5.0 10.0 - - - Estimate Actual Estimate Actual Estimate Actual FY2018 EBITDA (USD million) 1,2 CY2017 EBITDA (USD million) 1,2 FY2018 EBITDA (AUD million) 1,2 5.0 15.0 10.0 3.0 - 4.0 4.0 8.0 8.8 8.5 10.0 2.6 3.0 6.0 4.0 2.0 4.0 2.6 5.0 1.0 2.0 - - - Estimate Actual Estimate Actual Estimate Actual Performing in line with expectations Slightly below expectations Slightly below expectations (focus applied to brand refresh in (focus applied to operating platform advance of channel and geographic and supply chain to facilitate long expansion push) term growth) Note: 1. Pre-acquisition figures included in “estimates” and “actuals” are unaudited and have not been restated using BWX accounting policies. 2. Estimates and actuals were provided on pro forma standalone basis. 4
FY18 Group performance overview Financial highlights Summary AUD million FY17 FY18 Change FY18 net revenue growth driven by organic growth including expansion into new channels and geographies and supported by strategic Underlying figures acquisitions Net revenue 72.7 148.7 104.6% Gross profit 47.6 88.3 85.6% Gross profit margin reduction result of acquisition of beauty brands which Gross profit margin 65.4% 59.4% (606 bps) are not vertically integrated and lower margin e-commerce platform EBITDA 26.4 40.3 52.4% EBITDA margin 36.4% 27.1% (928 bps) Multiple initiatives initiated in FY18 to deliver further operating leverage EBIT 25.6 38.4 50.0% in FY19 EBIT margin 35.2% 25.8% (939 bps) NPAT 17.6 24.2 37.5% Strong underlying EPS growth of 15.0% Earnings per share 18.7 21.5 15.0% Dividends per share 6.7 7.45 11.2% One-off costs of $5.0 million relate to expenses associated with the acquisitions of Andalou, Mineral Fusion and Nourished Life and Reported figures 1 restructuring costs One-offs (4.2) (5.0) EBITDA including one-offs 22.2 35.3 58.5% Final dividend of 4.2 cps with FY18 total dividend of 7.45 cps Statutory NPAT 13.4 19.2 42.9% Statutory earnings per share 2 14.3 17.0 18.9% Note: 1. Includes acquisition and restructuring expenses. 2. Comparative period EPS has been adjusted to reflect the bonus element in the renounceable entitlement offer which occurred during October and November 2017. 5
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