2015 ANNUAL SHAREHOLDER MEETING - Manuka Honey, Olive …€¦ · chronic wounds:! Supporting healing of stalled wounds!! Promoting autolytic debridement! Method of Action ! High

2015 ANNUAL SHAREHOLDER MEETING

Annual Shareholder Meeting 2015

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WELCOME AND AGENDA 1.  Welcome / Apologies – Neil Craig 2.  Chairman’s Review – Neil Craig 3.  CEO Review – Bre@ Hewle@ 4.  ResoluDon 1: Reports and Financial Statements 5.  ResoluDon 2: Appointment and RemuneraDon of Auditors 6.  ResoluDons 3 – 5: Director’s ElecDons 7.  ResoluDon 6: Director’s RemuneraDon 8.  General Business 9.  Director farewell 10.  ASernoon Tea


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KEY ACHIEVEMENTS LONG TERM

•  Establishment of a business model and strategy designed to get us to $400m in Revenue by 2020, with sustained earnings growth

•  Strong Leadership; Management and Board

•  VerDcal IntegraDon Strategy to be@er control source of supply

•  Sell to end customer to maximise value-‐add

•  InvesDng capital wisely -‐ acquisiDons and building of infrastructure


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FINANCIAL PERFORMANCE Group Revenue

2006

2008

2009

2010

2011

2012

2013

2014

2015

2006

2008

2009

2010

2011

2012

2013

2014

2015

* 15 month period, due to change in balance date, ** EBITDA – Earnings before interest, tax, depreciaKon and amorKsaKon

EBITDA**

$39m

$82m

$96m

$103m

$115m

$85m

$71m

$57m

*

$153m

$15.5m

$14.7m

$6.3m

$11.2m

$5.3m

$0.4m

*

$4.8m

$17.0m

$23.0m


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SHAREHOLDER COMMUNICATIONS

•  NZX Announcements

•  Investor PresentaDons

•  Investor Newsle@ers

•  Annual Report


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Thank You to shareholders for your continued support


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Financial results for the year to 31 March

2015 $M

2014 $M

Change %

Revenue 152.7 115.3 32.4%

EBITDA* 23.0 17.0 35.1%

Net profit aVer tax 10.2 8.0 27.5%

Earnings per share (cents per share) 29.88 26.12 14.4%

Dividends (cents per share) 13.0 12.0 8.3%

Return on capital employed 12.0 10.8 11.1%

*EBITDA: Earnings before interest, tax, depreciaKon and amorKsaKon

FINANCIAL HIGHLIGHTS Consistent delivery of earnings growth


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KEY BALANCE SHEET RATIOS

Total Assets $200m $149m

Raw material inventory $28m $15m

Net debt $26m $26.5m

Net debt to EBITDA 1.1x 1.6x

Net debt to equity raKo 22% 29%

2014

2015

As at 31 March


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KEY ACHIEVEMENTS

Sales growth of 32%

Record net earnings of $10.2m up 28%

Secured honey supply with

significant honey stocks available

to realise earnings objecKves

Sales through direct digital channels

increased 55%

Successful Renounceable Rights issue -‐

$24.4m capital raising


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SALES BY REGION

USA $8m ASIA

$47m

AUS $40m

NZ $48m

UK/EU $10m


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Year ended March 2015

SALES BY REGION & CATEGORY

* Personal Care ** Medical


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•  Clearly defined consumer target of ‘Premium Rebalance’-‐ common to Asian and Western origins

•  Highly moDvated to achieve wellness goals via natural health soluDons

•  Willingness to pay a premium for brands

that demonstrate integrity and have a trusted source of supply

•  Brand reputaDon in Asia “super premium”

•  Retail and Digital environment affords a richer brand experience

CONSUMER ENGAGEMENT


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INNOVATION •  Circa $2.8m p.a. in R&D

•  Partnership with The University of Auckland and part of global science network

•  Pioneers of advanced wound care applicaDons for medical grade honey

•  IdenDficaDon of key, bioacDve compounds

•  New product & process development – Olive Leaf and Marine fish oils

•  Development of tests for honey floral variety authenDcity and quality


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OWNING AND OPTIMISING MANUKA HONEY

•  Plant breeding programme, leading Manuka culDvar development

•  Advanced agronomic research leading to large scale planDng of Manuka

•  30,000 hive apiary operaDon

•  Apiarist training programme

•  Bespoke Apiary Management System (AMS)

•  Industry leading, in-‐house laboratory capability •  Yield, quality & purity standards focussed


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•  Approximately one million olive trees

•  100% Australian grown, natural fresh olive leaf; fully integrated same day harvest to process

•  Natural pest management systems

•  Established plant selecDon processes and on site nursery

•  ‘Gentle’ proprietary harvesDng technique

•  In-‐house bioacDve tesDng capability

SUPPLY CHAIN EXCELLENCE FRESH OLIVE LEAF


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•  Community engagement

•  Sponsorship programmes

•  90% of waste from Paengaroa site is

recycled, reused or composted

•  40,000 naDve trees planted

•  Bio-‐waste water system based on

crushed seashells and floaDng reed beds

•  Research into bee health

•  Sustainable farming pracDses

•  PlanDng Manuka on marginal and

erosion prone land

TAKING THE LONG VIEW


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OUTLOOK 2016

Focus on earnings growth

>35% over prior

year

ConDnued development of supply chain strategies and partnerships

OpDmising market and channel

performance

Increased investment in markeDng to align consumer opportuniDes to deliver company

objecDves


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OUR STORY


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Thank You

A TISSUE REGENERATION COMPANY 22

Advancing Wound Care!

July 2015


Derma Sciences Company Overview

Caring for paDents across the

enDre wound care spectrum

Drugs

Devices

Dressings


Worldwide exclusive license to novel, patented dressings comprised of a high percentage of Active Leptospermum Medical-Grade Honey

Multiple peer reviewed studies – validate the efficacy and versatility of MEDIHONEY® in chronic wounds:Ø  Supporting healing of stalled wounds!Ø  Promoting autolytic debridement!

Method of ActionØ  High osmotic potential can increase the outflow of

wound fluid, helping to liquefy and remove necrotic tissue from the wound bed!

Ø  Lowering pH on a wound’s surface has been shown to have wound healing benefits!

Investment in Comvita (CVT.NZ) supports honey supply


A $20 Million brand and growing - Engaging HCPs to Continue MEDIHONEY®’S SUCCESS

Ø  MEDIHONEY® Novel Power Webinars:!¯  Global webinar program lead by leading KOLs!¯  Attracting 100’s of HCPs !¯  Impact to Business:!

•  Agile Strategic Targeting to grow brand!

•  Over 30% growth year on year!

•  Partnered with GPOs to expand reach!

•  Online Library for continued sales effect!

Ø  Major Presence in Leading Wound Journals:!¯  KOL authored “A Clinical Minute” in OWM!

Ø  Publications Anticipated Q4!¯  RCT outcomes: Manuka Honey vs other wound

dressings!¯  Partial Thickness Burns: MEDIHONEY® vs Collagenase!

Ø  Product Pipeline:!¯  MEDIHONEY® HCS line extension!


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RESOLUTIONS 1 Reports and Financial Statements

2 Appointment and RemuneraDon of Auditors

3-‐5 Director’s ElecDons: Re-‐elect Alan John Bougen Re-‐elect Sarah ChrisDne O@rey Elect Sarah Jane Kennedy

6 Director’s RemuneraDon


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Maurice Pendergast Independent Director

Since 31 July 2008


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Thank You to shareholders for your continued support

Documents

2015 ANNUAL SHAREHOLDER MEETING - Manuka Honey, Olive …€¦ · chronic wounds:! Supporting healing of stalled wounds!! Promoting autolytic debridement! Method of Action ! High