Shareholder Presentation February 2016
DISCLAIMER • This presentation has been prepared by BWX Limited ACN 169 015 838 (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 169 015 838 ( 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 not subject to, the registration requirements of the Securities Act and any other applicable securities laws. • Page 2 Company Presentation February 2016
ABOUT US ASX listed, BWX Limited is a vertically integrated developer, manufacturer, distributor and marketer of branded skin and hair care products with an emphasis on the ‘Natural’ segment of the beauty and personal care market. BWX strives to consistently build shareholder value through the timely and efficient execution of its strategies which are designed to maximize EPS growth over the medium to long term whilst minimising risk. Page 3 Company Presentation February 2016
STRATEGIES Increasing domestic & international distribution of BWX’s brands Developing range extensions for BWX’s brands Identifying suitable brands and businesses for acquisition Developing new proprietary brands and products for distribution to new and existing markets Identifying further opportunities for integrating business functions Further developing existing service relationships with BWX’s major customers Page 4 Company Presentation February 2016
Company Highlights
COMPANY FINANCIAL OVERVIEW & ACHIEVEMENTS • Successful ASX November Listing IPO • IPO offering raising $39.3 million. Oversubscribed • Basic EPS of 8.01 cents per share • $27.6m revenue is a 25.5% increase in pro-forma corresponding period • $9.8m EBITDA is a 53.1% increase in pro-forma corresponding period Half Year 2016 • $9.5m EBIT is a 53.2% increase in pro-forma corresponding period Financial • $6.3m NPAT is a 61.5% increase in pro-forma corresponding period Highlights • $3.9m net cash position at 31 December 2015 following repayment of debt facility on IPO during the period • BWX pro-forma Revenue of $45.1m in FY15 is forecast to increase by 18.8% to $53.6m in FY16 • BWX pro-forma EBITDA of $14.8m in FY15 is forecast to increase by 28.4% to $19.0m in Attractive FY16 Financial • BWX pro-forma NPAT of $9.6m in FY15 is forecast to increase by 29.2% to $12.4m in FY16 Profile • BWX pro-forma gross margins in FY15 of 56.8% are forecast to increase to 62.9% in FY16 • Low debt and capital light operating model 2 • Target dividend payout ratio of 35% to 50% FY16 forecast 1 Dividends 1 Subject to financial conditions the BWX board intends to pay a final full year FY16 dividend. Page 6 Company Presentation February 2016
COMPANY OVERVIEW & ACHIEVEMENTS • Australia’s No.1 selling ‘natural’ skin care brand in pharmacies Market leading • Growing at 36.3% MAT in Australian pharmacy brand – Sukin • Successful roll out of Super Greens range • New products remain on schedule for launch in 2 nd half FY16 Range extensions • Refreshment of the Edward Beale product range and brand Management • Continued investment in management as a platform for growth • Completion of expansion of production capacity Production • $500k capex spend has resulted in approximately 50% increased production capacity of the Sukin range • The ‘Natural’ segment of the skin care market grew 29% in the 12 months to June 2015 Substantial • Sukin’s total revenue is forecast to grow 40+% in FY16 growth • Sukin’s export revenue is forecast to grow 43% in FY16 opportunities Page 7 Company Presentation February 2016
Overview Industry
GLOBAL AND DOMESTIC BEAUTY AND PERSONAL CARE MARKET Australian Beauty and Personal Care BWX operates in the beauty Market by Segment and personal care market in Australia and internationally 8% Other 9% 32% Hair Care • BWX and its flagship brand Sukin operate Skin Care predominantly in the skin care segment of the 14% Colour Cosmetics broader beauty and personal care market. Oral Care Men's Grooming • In 2015 the global beauty and personal care 13% 24% market generated sales in excess of USD$465 billion. • The Australian beauty and personal care market generated sales in excess of A$6.7 billion in 2015 of which skin care products accounted for approximately 25% of the total market. Euromonitor International 2015 Page 9 Company Presentation February 2016
SKIN CARE MARKET AUSTRALIA PHARMACY CHANNEL BWX’s flagship brand Sukin operates in the skin care segment of the beauty and personal care market • The majority of Sukin products are sold through pharmacies. • Australian consumers spent A$5.6 billion on non- prescription over the counter products in pharmacies in FY15, growing at 12.7% on a moving annual total basis. • Sales of skin care products in Australian pharmacies for the 12 months ending 13th December 2015 grew by 16.8% from the previous corresponding 12-month period. Nielsen and Euromonitor 2015 Page 10 Company Presentation February 2016
‘NATURAL’ SKIN CARE MARKET SEGMENT The Sukin brand targets the ‘natural’ segment of the beauty and personal care market • The ‘natural’ skin care segment outperformed the broader skin care market with year on year growth of 38% in the 12 months ending the 13th of December 2015. • Strong awareness about the efficacy of natural and organic personal care products and lifestyle drive the market. Consumers are making cleaner, greener lifestyle choices for themselves and their families. • Rising concerns for health and safety, increases green consciousness. Growing awareness about the hazards of synthetic chemicals have fuelled the demand for natural and organic personal care products. Nielsen and Euromonitor 2015 Page 11 Company Presentation February 2016
Business Overview
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