For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch...

15
Investor Presentation January-February 2017 ASX: BDA For personal use only

Transcript of For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch...

Page 1: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Investor Presentation January-February 2017

ASX: BDA

For

per

sona

l use

onl

y

Page 2: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Investment Summary

Focused on delivering natural, evidence based solutions for the

body – Inside & Out

Brands positioned across skin care, baby skin care, brain health,

superfoods, antioxidants & immune support segments

Develops, manufactures, markets, imports & exports products

across Australia & Asia

Commencing rapid growth phase

Aggressively building distribution channels with initial focus on

pharmacy

Further products launching during March and June quarters

2

For

per

sona

l use

onl

y

Page 3: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Key Management

JO PATTERSON – CEO

A strategic marketing & business executive & winner of key awards with more than 20 years’ experience including international exposure

Demonstrated business acumen evidenced by success of own start-up as well as driving established organisations towards growth

Winner – Sydney Business Review Business Woman of Year

Finalist – Telstra Business Woman of Year

Multiple CEO & Managing Director roles over her career

CRAIG WELLER – COO

20 years in the nutritional & pharmaceutical sectors working in general management, senior sales & marketing roles

Five years in evidence based natural medicines – particular focus on mainstream medical market

Extensive Asian experience with Greenfield roles for China, Korea, Indonesia & other countries in Southeast Asia

JOHN GILDER – Head of Sales

Sales manager for Bellamy’s Organic for eight years

27 years experience in FMCG & pharmacy sales

18 years of sales management experience spread over numerous organisations

3

For

per

sona

l use

onl

y

Page 4: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Bod Australia Strategy

4

1. Build distribution channels - Pharmacy channel focus – leveraging into other distribution channels

- Pursuing additional channels inc travel, spa, e-commerce markets

- International expansion underway ahead of schedule

2. Grow sales of existing portfolio of products - Dr Roebucks & BIOEFFECT sales building in stores inc David Jones, Sephora

- Bod branded products Pinpoint & Flexfytol pre-ordered, sales in March

- Natural products with quality edge on competing brands

3. Add new & complementary product lines - Identifying & developing natural medicine opportunities

- Adding complementary, high quality skin care brands to portfolio

- Moving into additional verticals e.g. baby skin care

For

per

sona

l use

onl

y

Page 5: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Distribution Strategy

Leveraging existing relationships of ex Bellamy’s sales team

Focus on ‘direct to store’ pharmacy distribution in effort to establish a foothold & gain credibility

Currently selling products direct to store via department stores, pharmacies & the professional spa market

Highly efficient sales team across the eastern seaboard of Australia

The sales team operates with tablet technology to activate & process orders that can be uploaded to the financial systems in real time, allowing delivery in 48 hours

Expanding Dr Roebuck’s ‘Everyday Range’ through pharmacies

22%

26%

19%

5%

14%

6%

8%

Grocery Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty

5

For

per

sona

l use

onl

y

Page 6: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Distribution Progress

6

Bod gaining significant traction in the pharmacy channel – in over 100 pharmacies already

Growth to be expedited as pharmacy banner group review period now commencing

Success being leveraged into other distribution channels domestically and internationally

Further product launches to drive increases in revenue per store

Bod also exhibiting at the APP Pharmacy conference in early March

Over 4,000 pharmacy delegates attend For

per

sona

l use

onl

y

Page 7: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Bod leveraging success in Pharmacy into

other current distribution channels

7

Travel Specialty Retailers

Department Stores

Online

Export

Grocery

For

per

sona

l use

onl

y

Page 8: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Existing Products Overview

8

Product Description Channels to Market Market Size / Commentary Unique & effective 30 year old family

formula

Natural & active ingredients, evidence

based & Australian made

16+ different products with more to be

released in 2017

Product range includes anti-ageing, face,

exfoliators, baby care, body, cleanse

tone & lips

No parabens, BPA’s or other harsh

chemicals

Currently:

• Pharmacies

• Online

• Department stores

Prospective:

• Specialty retailers

• Professional spa market

• Health food stores

• Travel market

The Australian skin care market achieved sales of almost

$1.85 billion in 2015

Small, premium brands rapidly gaining market share

Pharmacy remains the largest channel to market with 26%

of all sales, closely followed by grocery & department

stores

82% of the skin care market is comprised of facial

treatments

Product quality well received from customers and

appropriately priced

Pharmacy channel primary focus for the product currently

BIOEFFECT is a premium, innovative skin

care brand born in Iceland

Based on ten years research & developed

by bio-scientists it offers a unique

efficacy & purity

The world’s first skincare brand to

contain cellular activators made from

plants

Results clinically proven in independent

clinical trials

Currently:

• Department stores

• Online

• Professional spa market

• Specialty retailers

Prospective:

• Duty free

Premium product

Positioned at high end of the market – Department Stores,

speciality retail and high end pharmacy

Good traction being achieved in Sephora and David Jones

For

per

sona

l use

onl

y

Page 9: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Launching March Quarter under own brand –

Pinpoint & Flexofytol

9

Product Description Channels to Market Market Size / Commentary Developing a natural remedy for

memory & improved concentration, to

be known as Pinpoint.

Based on the extract Bacopa Monnieri,

offers enhanced concentration in times

of particularly stressful situations such

as exams

The active ingredient, an aruvedic herb,

has significant data to support the

products efficacy & indications

First product to be released under the

Bod Australia brand

Currently:

• Pharmacies

• Online

Prospective:

• Health food stores

• Travel market

• Export

• Pinpoint can be positioned across a number of segments

including brain health, multi vitamins and Nutritional

Oils. Combined market size of $326M.

• Total Natural Medicines market valued at $1.5b in 2016

• 3 SKU’s to be launched. Students, Elderly and Teens.

• Communication is focused around brain health/focus

and brightness

• Available for sale in market in March 2017 with first SKU

for Students.

Flexofytol – natural anti-inflammatory

targeting arthritis, joint pain, brain

health

Turmeric-based product licensed from

Belgian herbal medicine leader Tilman

S.A

#1 selling joint care product in

Belgium – ~A$10.4m annual sales

Currently:

• Pharmacies

• Online

Prospective:

• Health food stores

• Travel market

• Export

Bod will leverage the equity in the Flexofytol brand

overseas

Multi indications, positioning will be on the broad

category of Anti-inflammatory

Combined market size across Arthritis, Muscular support,

Bone Health, Antioxidant is $338M

Launching March 2017

Bod to leverage relationship with Tilman S.A for

additional product launches and cross border distribution

For

per

sona

l use

onl

y

Page 10: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

In Development - new & complementary

product lines

10

Product Description Channels to Market Market Size / Commentary

BABY SKIN CARE

Developing an all natural, gentle,

clinically trialed baby skincare solution

using Australian olive butter & bush

flowers

Launching with 6+ SKU’s covering body

wash, nappy rash, massage serum,

shampoo, conditioner & creams

Significant resources allocated for

research & development of this new

range

Expected channels to market include

department stores, pharmacies, online

& specialty retailers

• Pharmacies

• Online

• Department stores

• Specialty retailers

• Health stores

• Travel market

• Baby care is the next largest segment behind infant

formula which is valued at over $60 million in 2016

and growing at 15%

• There is demand for a natural or organic baby range

• Direct to store allows immediate insights to consumer

trends and the competitive space

• Forms a perfect test market to launch new brands and

product ranges

Bod actively identifying & developing opportunities to leverage growing distribution infrastructure and consumer demand / trends

Moving into additional verticals

Baby skin care (product strategy outlined below)

Natural remedies for treatment of menopause (market to be updated in due course)

Natural remedy for sinusitis (market to be updated in due course)

For

per

sona

l use

onl

y

Page 11: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Aztec Data – Natural Health Market

$977,073,408

$1,307,739,264

$1,452,997,376

2014 2015 2016

Total Natural Health Market ($)

Natural Heath market showing significant growth over the last three years

Total market size ~$1.5b in 2016 ~50% larger than 2014

For

per

sona

l use

onl

y

Page 12: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Corporate

Capital structure

Shares on issue 46.0 million

Share price $0.175

Market capitalisation $8.0 million

Low/high price $0.17-$0.30

Bod listed on the ASX on 27 October 2016 after raising

A$6 million in its Initial Public Offering (IPO), issuing

30m shares at A$0.20 with indicative market

capitalisation upon listing of A$9.1m.

The company achieved cash receipts of $233,000 to 31

December 2016, which is already 232% growth on full

year FY16 ($140,442) on an annualised basis

Cash balance of $4.45 million at 31 December 2016

Approximately 7m options issued as part of IPO

12

Shareholders Shares

(m)

Jo Patterson 5.7

Noir Ted Pty Ltd (Craig Weller) 5.0

JP Morgan Nominees 3.7

UBS Nominees 1.8

Citicorp Nominees 1.5 For

per

sona

l use

onl

y

Page 13: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Summary

Driving strategy focused on building distribution channels and sales of existing product portfolio while adding complementary product lines

Distribution secured in more than 100 pharmacies already

Significant distribution growth anticipated in the second half – meetings with various banner groups representing a combined ~1,700 stores underway

Early traction achieved – distribution with Good Price Pharmacy Warehouse, with 45 stores

International sales commence – distribution channels secured in China to allow export of Bod Australia products ahead of schedule

Existing brands Dr Roebuck’s and BIOEFFECT continue to gain traction in the market

Sales of Natural Remedy products commence in current March quarter into growing distribution platform after initiating manufacturing in December quarter

Further products launching this half into growing distribution platform

13

For

per

sona

l use

onl

y

Page 14: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Board

JO PATTERSON CEO

A strategic marketing & business executive & winner of key awards with more than 20 years’ experience including international exposure

Demonstrated business acumen evidenced by success of own start-up as well as driving established organisations towards growth

Winner – Sydney Business Review Business Woman of Year

Finalist – Telstra Business Woman of Year

Multiple CEO & Managing Director roles over her career

SIMON O’LOUGHLIN

CHAIRMAN

Founder of O’Loughlins Lawyers, an Adelaide based, specialist commercial law firm

He has extensive experience in the corporate & commercial law fields while practising in Sydney & Adelaide, & also holds accounting qualifications

Extensive experience & involvement with companies in the small industrial & resources sectors

He has also been involved in the listing & back-door listing of numerous companies on the ASX, most recently the back-door listings of The Food Revolution Group Limited (formerly Crest Minerals Limited) & Xref Limited (formerly King Solomon Mines Limited)

He is a former Chairman of the Taxation Institute of Australia (SA Division) & Save the Children Fund (SA Division)

SIMON TAYLOR

NON EXECUTIVE DIRECTOR

Simon is a resource executive with over 25 years’ experience in geology, management at CEO & Board levels & in the finance sector

He has had a diversified career as a resources professional providing services to resource companies & financial corporations . This has been at both a technical & corporate level

He has also been involved in the listing & back-door listing of numerous companies on the ASX, most recently the back-door listing of Xref Limited (formerly King Solomon Mines Limited) . Whilst having experience in Australia, a majority of his projects have also been in countries such as Brazil, Turkey, Uganda, Tanzania, Mali, China, the United Kingdom & North America

Mr Taylor is currently an executive director of Oklo Resources Limited & a non-executive director of Chesser Resources Limited & TW Holdings Limited

14

For

per

sona

l use

onl

y

Page 15: For personal use only - Home - Australian Securities ... Pharmacy Department Stores Mass Merch Direct Selling Internet Health & Beauty 5 For personal use only Distribution Progress

Contact

Management Investor Relations

Jo Patterson Matt Wright

Bod Australia NWR Communications

+61 2 9199 5018 [email protected]

+61 451 896 420

For

per

sona

l use

onl

y