I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 1 6 CHIEF - PowerPoint PPT Presentation

I N V E S T O R P R E S E N T A T I O N A U G U S T 2 0 1 6 CHIEF EXECUTIVE IVE OFFICE ICER, R, SCOTT COULTER, R, 021 386 988 CHIEF FINA NANCIA NCIAL OFFICE CER, R, MARK SADD, 027 707 9698

Investor Presentation August 2016 1 I M P O R T A N T N O T I C E This presentation is given on behalf of Comvita Limited. Information in this presentation: ● Should be read in conjunction with, and is subject to, Comvita’s Annual Reports, Interim Reports and market releases on NZX; ● Is from audited financial statements for the 15 months ended 30 June 2016; ● May contain projections or forward-looking statements about Comvita. Such forward- looking statements are based on current expectations and involve risks and uncertainties. Comvita’s actual results or performance may differ materially from these statements; ● Includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; ● Is for general information purposes only, and does not constitute investment advice; ● Is current at the date of this presentation, unless otherwise stated. While all reasonable care has been taken in compiling this presentation, Comvita accepts no responsibility for any errors or omissions. All currency amounts are in NZ dollars unless otherwise stated.

Investor Presentation August 2016 2 Comvita announces 15 month result, delivering on guidance

Investor Presentation August 2016 3 K E Y A C H I E V E M E N T S $231m $18.5m (15 Months) (15 Months) Operating earnings Extended supply Peer reviewed, CAGR Strategic of $17.1m in line security via strategic published, clinical March 15-16 investment in with guidance alliances in both NZ research studies on of 32% SeaDragon and Australia Olive Leaf Extract driving sales growth S A L E S R E C O R D S U P P L Y C L I N I C A L E X T E N D E D G R O W T H E A R N I N G S S E C U R I T Y S T U D I E S I N G R E D I E N T P L A T F O R M

Investor Presentation August 2016 4 25 % 65 % $ 149 m $ 60 m OF TOTAL AL REVENU ENUE OF TOTAL AL REVENU ENUE F U N C T I O N A L F O O D S H E A L T H C A R E 4 % $ 8 m 6 % $ 14 m M A R KE T S EG MENT S OF TOTAL AL REVENU ENUE OF TOTAL AL REVENU ENUE P E R S O N A L C A R E M E D I C A L Figures are based on 15 months audited results to 30 June 2016.

Investor Presentation August 2016 5 UNITED ED KINGDO DOM $1 $10m USA 4% of total sales $1 $14m ASIA 6% of total sales $75m $7 33% of total sales SALES FOR THE 15 MONTHS TO AUSTRALI RALIA 30 JUNE 2016 $7 $74m 32% of total sales NEW ZEALAND LAND $5 $57m 7m 25% of total sales Figures are based on 15 months audited results to 30 June 2016.

Investor Presentation August 2016 6 Financial al result ults s for the 30 June 31 March 31 March Change period od ended 2016 2016 2015 Mar 15-16 16 $ ’ 000 $ ’ 000 000 $’000 000 % 15 Months hs 12 Months hs 12 Months hs Revenue 230,743 202,155 152,702 32% EBITDA* 39,445 36,416 22,950 59% EBITDA % of operating 17.1% 18.0% 15.0% 3% revenue K E Y Net profit after tax 18,477 17,204 10,244 68% F I N A NCI AL H I G H L IGH T S Earnings per share 46.91 43.36 29.88 45% (cents per share) Dividends (cents per 18.00 16.00 13.00 23% share)** Return on Capital 14.3% 15.3% 12.0% 28% Employed (ROCE) *EBITDA: earnings before interest, tax, depreciation and amortisation. ** Includes final dividend of 2 cents to be paid September 2016

Investor Presentation August 2016 G R O U P R E V E N U E $71m 2009 * EBITDA – earnings before interest, tax, depreciation and amortisation. $85m 2010 $82m 2011 $96m 2012 $103m 2013 $115m 2014 $153m 2015 $202m U N A U D I T E D 1 2 M O N T H S 2016 $231m A U D I T E D 1 5 M O N T H S $5.3m E B I T D A * 2009 $11.2m 2010 $6.3m 2011 $15.5m 2012 $14.7m 2013 $17.0m 2014 $23.0m 2015 $36.4m U N A U D I T E D 1 2 M O N T H S 2016 A U D I T E D 1 5 M O N T H S $39.4m P ER F ORMANCE F I N A NCI AL 7

Investor Presentation August 2016 8 N E T D E B T A N D G E A R I N G 80% 95.3 90 84.0 70% 80 64% 60% 70 $ m i l l i o n s 50% 60 50 40% 44.5 N ET D E B T 29% 31% 22% 40 26% 30% A N D G EA R ING 27.2 30 26.5 26.1 18% 25.3 20% 16.5 20.8 19.2 18.9 20 13.4 10% 10 0 0% 2011 2012 2013 2014 2015 2016 Inventory net debt gearing ratio (net debt)

Investor Presentation August 2016 9 Key Balance Sheet t Ratios atios 30 June 31 March Change as at at 2016 2015 % $ ’ 000 $ ’ 000 000 000 Total assets 243,268 199,722 22% Raw material inventory 64,509 27,722 133% Net debt 84,020 26,093 222% K E Y Net debt to equity ratio 63.7% 22.0% 190% B A L A NC E S H E E T Weighted average shares on issue 39,386 34,285 15% R A T I O S Net debt to EBITDA 2.1x 1.1x 91% Interest cover 6.8x 6.0x 13%

Investor Presentation August 2016 10 S T R A T E G I C I M P A C T O N I N V E S T M E N T A L I G N M E N T F I N A N C I A L S S EA D R A GON Part of 5 year • Shares • Option valuation • strategic plan • Options • Forecasts Customer demand • Convertible note • Share of • for NZ source • Further rights profits/losses Innovation by way of offerings • extension of current ingredient platform Security of source •

Investor Presentation August 2016 11 S T R A T E G I C I M P A C T O N I N V E S T M E N T A L I G N M E N T F I N A N C I A L S D ER M A S C I EN C E • Continuation of • Value appreciation/ • 1.1 million shares Manuka honey story depreciation of • Market value at • Efficacy of Manuka 30 June $6.1m shares • honey via R&D Liquid asset • Growth opportunities from new innovative delivery mechanisms

Investor Presentation August 2016 12 S T R A T E G I C I M P A C T O N I N V E S T M E N T A L I G N M E N T F I N A N C I A L S I N V E S TM E N T S • Security of supply • Protection of current • Medibee Apiaries Pty • Increased value and future earnings Ltd (Capilano) creation • Putake Group • Longevity of earnings Holding Ltd • Greater proportion • Makino Station Ltd of high UMF honey • Kaimanawa Honey Ltd Partnership

Investor Presentation August 2016 13 B O A R D O F D I R E C T O R S Alan an Bouge gen David id Cullwic lwick Neil il Craig ig Independent Director Non-executive Director Non-executive Chairman & Deputy Chairman Sarah h Ottr trey Luke ke Bunt Sarah h Kennedy dy Murray y Denye yer Independent Director Independent Director Independent Director Independent Director

Investor Presentation August 2016 14 E X P E R I E N C E D L E A D E R S H I P Scott tt Coulte lter Chief Executive Officer Mark Sadd dd Patr trick ick Brus Colin in Baskin skin Sharon on Holle lenst stein in Ben Shaw Simon on Pothecar thecary Chief Financial Chief Corporate Chief Supply Chief Innovation Chief Marketing Chief Sales Officer Services Officer Chain Officer Officer Officer Officer

Investor Presentation August 2016 15 KIWI BEE KERIKE KERI RI 6,400 0 hives KIWI BEE WAIKATO 4,000 hives es KIWI BEE EAST COAST 3,500 hi hives es KAIMANAWA WA C O MVI T A A P I A R IES (50% % owned Joint nt Venture) e) I N N EW Z EA LA ND 4,000 hives es KIWI BEE HAWKES BAY 5,800 00 hives es KIWI BEE WHANGANU NUI 5,300 hives es PUTAKE KIWI BEE WAIRARA RAPA (50% % owned Joint nt Venture) e) 3,500 hives es 4,000 hives es * Hive numbers can fluctuate. These numbers are approximate.

Investor Presentation August 2016 16 C O M V I T A V A L U E M O D E L C R E A T E A D D C A P T U R E ‘NQ’ CHANNELS PRIMARY SCIENCE PRODUCTS INGREDIENTS TO MARKET PRODUCTION Unlock Natural Work closely with Significant Selected ingredient science to our health products our consumers to producer/partner in platform, optimise ingredient platform that work enhance value primary production of nature’s intelligence our ingredients

Investor Presentation August 2016 17 C O M V I T A S T R A T E G Y $400m by FY21 S E C U R I T Y I N N O V A T I O N A C Q U I S I T I O N S E A R N I N G S C O N S U M E R - F O C U S E D O F S U P P L Y F O C U S B U S I N E S S M O D E L Concentr centrate e on Continue inued Optimi mise se and Incre rease ase market rket Focus cus on earni rnings s earn rning ings s growth wth development lopment diversi rsify fy ingre redie dient spend, d, grow ow direct ect- accre cretive ive of supply ply chain in platforms forms and to-co to consu sumer mer acqui quisi sitio ions strat rategi egies es channel el channels els and added ed and partnersh ership ips performa formance value lue product duct lines