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

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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

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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

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SLIDE 1

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

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SLIDE 2

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.

1

Investor Presentation August 2016

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.

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SLIDE 3

Investor Presentation August 2016

2

Comvita announces 15 month result, delivering on guidance

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SLIDE 4

K E Y A C H I E V E M E N T S

$18.5m $231m

Extended supply security via strategic alliances in both NZ and Australia Peer reviewed, published, clinical research studies on Olive Leaf Extract driving sales growth

S A L E S G R O W T H R E C O R D E A R N I N G S S U P P L Y S E C U R I T Y C L I N I C A L S T U D I E S

Strategic investment in SeaDragon

E X T E N D E D I N G R E D I E N T P L A T F O R M

Investor Presentation August 2016

3

Operating earnings

  • f $17.1m in line

with guidance CAGR March 15-16

  • f 32%

(15 Months) (15 Months)

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SLIDE 5

M A R KE T S EG MENT S

65%

OF TOTAL AL REVENU ENUE

4%

OF TOTAL AL REVENU ENUE

6%

OF TOTAL AL REVENU ENUE

$149m $8m $14m

Figures are based on 15 months audited results to 30 June 2016.

Investor Presentation August 2016

4

H E A L T H C A R E F U N C T I O N A L F O O D S P E R S O N A L C A R E M E D I C A L

25%

OF TOTAL AL REVENU ENUE

$60m

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SLIDE 6

SALES FOR THE 15 MONTHS TO 30 JUNE 2016

USA

$1 $14m

6% of total sales UNITED ED KINGDO DOM

$1 $10m

4% of total sales ASIA

$7 $75m

33% of total sales AUSTRALI RALIA

$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.

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Investor Presentation August 2016

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SLIDE 7

K E Y F I N A NCI AL H I G H L IGH T S Financial al result ults s for the period

  • d ended

30 June 2016 $’000 000 15 Months hs 31 March 2016 $’000 12 Months hs 31 March 2015 $’000 000 12 Months hs Change Mar 15-16 16 % Revenue 230,743 202,155 152,702 32% EBITDA* 39,445 36,416 22,950 59% EBITDA % of operating revenue 17.1% 18.0% 15.0% 3% Net profit after tax 18,477 17,204 10,244 68% Earnings per share (cents per share) 46.91 43.36 29.88 45% Dividends (cents per share)** 18.00 16.00 13.00 23% Return on Capital Employed (ROCE) 14.3% 15.3% 12.0% 28%

*EBITDA: earnings before interest, tax, depreciation and amortisation. ** Includes final dividend of 2 cents to be paid September 2016

Investor Presentation August 2016

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SLIDE 8

* EBITDA – earnings before interest, tax, depreciation and amortisation.

G R O U P R E V E N U E $82m $96m $103m $115m $85m $71m $153m

2009 2010 2011 2012 2013 2014 2015 2016

U N A U D I T E D 1 2 M O N T H S

$202m E B I T D A * $6.3m $15.5m $14.7m $17.0m $11.2m $5.3m $23.0m

2009 2010 2011 2012 2013 2014 2015 2016

$36.4m F I N A NCI AL P ER F ORMANCE

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Investor Presentation August 2016

$231m

A U D I T E D 1 5 M O N T H S

$39.4m

A U D I T E D 1 5 M O N T H S U N A U D I T E D 1 2 M O N T H S

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SLIDE 9

N ET D E B T A N D G EA R ING

Investor Presentation August 2016

8

19.2 16.5 20.8 27.2 44.5 95.3 18.9 13.4 25.3 26.5 26.1 84.0 26% 18% 31% 29% 22% 64% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2011 2012 2013 2014 2015 2016 10 20 30 40 50 60 70 80 90 Inventory net debt gearing ratio (net debt)

N E T D E B T A N D G E A R I N G

$ m i l l i o n s

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SLIDE 10

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

Investor Presentation August 2016

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SLIDE 11

S EA D R A GON

S T R A T E G I C A L I G N M E N T

  • Part of 5 year

strategic plan

  • Customer demand

for NZ source

  • Innovation by way of

extension of current ingredient platform

  • Security of source

I N V E S T M E N T

  • Shares
  • Options
  • Convertible note
  • Further rights
  • fferings

I M P A C T O N F I N A N C I A L S

  • Option valuation
  • Forecasts
  • Share of

profits/losses

Investor Presentation August 2016

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SLIDE 12

D ER M A S C I EN C E

S T R A T E G I C A L I G N M E N T

  • Continuation of

Manuka honey story

  • Efficacy of Manuka

honey via R&D

  • Growth opportunities

from new innovative delivery mechanisms I N V E S T M E N T

  • 1.1 million shares
  • Market value at

30 June $6.1m I M P A C T O N F I N A N C I A L S

  • Value appreciation/

depreciation of shares

  • Liquid asset

Investor Presentation August 2016

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SLIDE 13

I N V E S TM E N T S

S T R A T E G I C A L I G N M E N T

  • Security of supply
  • Increased value

creation

  • Longevity of earnings
  • Greater proportion
  • f high UMF honey

I N V E S T M E N T

  • Medibee Apiaries Pty

Ltd (Capilano)

  • Putake Group

Holding Ltd

  • Makino Station Ltd
  • Kaimanawa Honey

Ltd Partnership I M P A C T O N F I N A N C I A L S

  • Protection of current

and future earnings

Investor Presentation August 2016

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SLIDE 14

B O A R D O F D I R E C T O R S

Neil il Craig ig Non-executive Chairman Sarah h Ottr trey Independent Director Alan an Bouge gen Non-executive Director & Deputy Chairman David id Cullwic lwick Independent Director Luke ke Bunt Independent Director Sarah h Kennedy dy Independent Director Murray y Denye yer Independent Director

Investor Presentation August 2016

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SLIDE 15

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 Chief Financial Officer Patr trick ick Brus Chief Corporate Services Officer Colin in Baskin skin Chief Supply Chain Officer Sharon

  • n Holle

lenst stein in Chief Innovation Officer Ben Shaw Chief Marketing Officer 14 Simon

  • n Pothecar

thecary Chief Sales Officer

Investor Presentation August 2016

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SLIDE 16

C O MVI T A A P I A R IES I N N EW Z EA LA ND

KIWI BEE KERIKE KERI RI

6,400 0 hives

15

KIWI BEE WAIKATO

4,000 hives es

KIWI BEE EAST COAST

3,500 hi hives es

KIWI BEE HAWKES BAY

5,800 00 hives es

KIWI BEE WHANGANU NUI

5,300 hives es

KIWI BEE WAIRARA RAPA

3,500 hives es

KAIMANAWA WA

(50% % owned Joint nt Venture) e)

4,000 hives es

PUTAKE

(50% % owned Joint nt Venture) e)

4,000 hives es

Investor Presentation August 2016

* Hive numbers can fluctuate. These numbers are approximate.

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SLIDE 17

C O M V I T A V A L U E M O D E L

PRIMARY PRODUCTION

Significant producer/partner in primary production of

  • ur ingredients

Investor Presentation August 2016

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INGREDIENTS

Selected ingredient platform, optimise nature’s intelligence

SCIENCE

Unlock science to our ingredient platform

PRODUCTS

Natural health products that work

CHANNELS TO MARKET

Work closely with

  • ur consumers to

enhance value

‘NQ’

C R E A T E A D D C A P T U R E

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SLIDE 18

C O M V I T A S T R A T E G Y

C O N S U M E R - F O C U S E D B U S I N E S S M O D E L Incre rease ase market rket spend, d, grow

  • w direct

ect- to to-co consu sumer mer channels els and added ed value lue product duct lines S E C U R I T Y O F S U P P L Y Continue inued development lopment

  • f supply

ply chain in strat rategi egies es and partnersh ership ips I N N O V A T I O N Optimi mise se and diversi rsify fy ingre redie dient platforms forms and channel el performa formance E A R N I N G S F O C U S Concentr centrate e on earn rning ings s growth wth A C Q U I S I T I O N S Focus cus on earni rnings s accre cretive ive acqui quisi sitio ions

$400m by FY21

Investor Presentation August 2016

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