Comvita Limited · NZX:CVT
Comvita — Shareholder Meeting (July 2011)
33 slides from Comvita's shareholder meeting presentation, July 2011
Slide 1: The Future Is Healthy
KEEPING YOU WELL EVERY DAY THE FUTURE IS HEALTHY
Slide 2: Agenda
2011 ANNUAL MEETING OF SHAREHOLDERS Agenda KEEPING YOU WELL EVERY DAY KEEPING YOU WELL EVERY DAY WELCOME TO COMVITA LTD 1. Welcome / Apologies – Neil Craig 2011 ANNUAL MEETING OF 2. Chairman’s Review – Neil Craig SHAREHOLDERS. 3. CEO Review – Brett Hewlett 4. Derma Sciences – Ed Quilty 5. Reports &
Slide 3: Chairman's Report
2011 ANNUAL MEETING OF SHAREHOLDERS Chairman's Report KEEPING YOU WELL EVERY DAY KEEPING YOU WELL EVERY DAY
Slide 4: Summary Report
2011 ANNUAL KEEPING YOU WELL MEETING OF SHAREHOLDERS Summary Report EVERY DAY KEEPING YOU WELL EVERY DAY Year ending Year ending Year ending March 2011 March 2010 December 2006 • Sales $82m $85m $39m • Gross Margin 56% 51% 43% • EBITDAF(i) $6.7m $11.0m $4.8m • Normalised Net Profit After Tax $3.6m $
Slide 5: Chairman's Report
2011 ANNUAL KEEPING YOU WELL MEETING OF SHAREHOLDERS Chairman’s Report EVERY DAY KEEPING YOU WELL EVERY DAY • What global financial crisis? • Too high a cost structure • Invest for long term rather than curtail • Expensive defence of medical woundcare patent • Out of Court settlement likely • Positi
Slide 6: Our Story So Far
OUR STORY SO FAR 1974 + Humble beginings Claude Stratford established his company (Comvita) in Bay of Plenty, New Zealand, with a mission to “produce natural products that improve the community's health” 1988 + Pioneered ‘Raw’ Kanelise s + Adding Value + UK Export + Hong Kong Y Product range expansi
Slide 7: Chief Executive's Report
2011 ANNUAL MEETING OF SHAREHOLDERS Chief Executive's Report KEEPING YOU WELL EVERY DAY
Slide 8: Agenda
Agenda CLAUDE = top STRAFORD & bottom line growth – COMVITA FOUNDER KEEPING YOU WELL EVERY DAY
Slide 9: Evolving Sales Trend
EvolvingPROGRESS SalesSTRAFORD CLAUDE Trend TOWARDS–LONGER COMVITA FOUNDER KEEPING YOU WELL EVERY DAY TERM OBJECTIVES HAS BEEN RELENTLESS
Slide 10: Evolving business
EvolvingPROGRESS business CLAUDE TOWARDS–LONGER STRAFORD COMVITATERM FOUNDER OBJECTIVES HAS BEEN RELENTLESS KEEPING YOU WELL EVERY DAY ?? Global Recession Derma Sciences OPA Medihoney Kiwi Bee NZ Natural Foods (UK) GreenLife (HK)
Slide 11: Sustainable value chain
Sustainable value chain KEEPING YOU WELL EVERY DAY
Slide 12: Supply chain security
Supply chain security KEEPING YOU WELL EVERY DAY • 5,000 hive specialist medical honey producer • PVRs from 5 year Manuka breeding programme • 560,000 tree olive leaf plantation • Land development projects • Specialist bioactive extraction facilities • Control and ownership of source of supply = sus
Slide 13: Grasp of key technologies
Grasp of key technologies KEEPING YOU WELL EVERY DAY • Pioneers of medical technology for honey • Patents for wound care applications and others • Circa $2.5m p.a. in R&D • Partnership with University of Auckland • Tapped into global science network • Clinical evidence can lead to health claims
Slide 14: Uniquely differentiated products
Uniquely differentiated products KEEPING YOU WELL EVERY DAY • Price premium, value add • Focused and differentiated ingredient platform 7.4% • Broadening product offering – Foods, 2.3% Healthcare, Personal care, Medical • Very large and growing 41% natural healthcare products sector 46% • Tightening
Slide 15: Global path to market
Global path to market KEEPING YOU WELL EVERY DAY • Established wholesale business in UK, Australia, NZ • Asia 90% direct to consumers •400 branded retail locations in China •54 in HK, 12 in Taiwan, 6 in Korea • Web sales – large scale investment
Slide 16: Sustainable value chain
Sustainable value chain KEEPING YOU WELL EVERY DAY
Slide 17: Derma Sciences
Medical CLAUDE – Results TAKING RESOLUTIONS OUR to date STRAFORD BRAND –TO COMVITA THE WORLD FOUNDER KEEPING YOU WELL EVERY DAY • American licensing deal 2006 Derma Sciences • Global licensing deal with Derma Sciences Jan 2010 • $7.5 million up front • $1.25 million milestone payment expected this f
Slide 18: Derma Sciences July 2011
DERM A S CiimbeN C ES Advancing Wound Care July 2011
Slide 19: Company Overview
Company Overview Derma Sciences (Nasdaq: DSCI) is a medical technology company developing and delivering solutions for advanced wound care management Pharmaceutical – Drug candidate DSC127 reported a successful Phase 2 study in Diabetic Foot Ulcer healing. Indications can span from chronic wounds to
Slide 20: Investment Highlights
Investment Highlights • Game-changing upside from DSC127, an angiotensin analog for accelerated wound healing and scar reduction – Positive Phase 2 data met primary and secondary endpoints – Large addressable market opportunity for diabetic foot ulcers (“DFUs”) of ~$3.0 bln annually in the US – Derm
Slide 21: Advanced Wound Care
Advanced Wound Care A Newly Formed Strong Growth Business Advancing Wound Care 21
Slide 22: About Advanced Wound Care
About Advanced Wound Care Global Advanced Wound Care market is almost $5 billion of the total $15 billion wound care market Growth is being driven by multiple factors: • Increased incidence of diseases such as diabetes and vascular insufficiency • Increased life expectancy • Introduction of technolo
Slide 23: Advanced Wound Care
Advanced Wound Care AWC revenues are growing rapidly $ (000) Five new products grew 83% 1Q11 over 1Q10. AWC $2,947 $4,494 $7,617 $11,532 $2,282 $3,585 % Growth 52.5% 69.5% 51.4% 57.1% Advancing Wound Care 23
Slide 24: Advanced Wound Care successful product launches
Advanced Wound Care ($ in thousands) 5 successful product launches Product Launched 2009 2010 1Q10 1Q11 Oct-06 $1,416 $1,306 $259 $375 Oct-07 2,746 5,380 885 1,809 Sep-08 390 769 146 314 Nov-08 439 997 214 302 Jun-09 635 1,250 306 502 Sub-Total New Products $5,626 $9,702 $1,808 $3,303 Note: product
Slide 25: Medical-Grade Honey exclusive license
Worldwide exclusive license to novel, patented dressings comprised of a high percentage of Active Leptospermum Medical-Grade Honey Multiple peer reviewed studies – validate the superior efficacy of MEDIHONEY® in chronic wounds by: •Providing antimicrobial activity; effective against virulent bacteri
Slide 26: Strategic Position
Strategic Position CURRENT POSITION Leading global brand 1st mover advantage Derma Sciences’ deepest product offering & pipeline Advancing Wound Care 26
Slide 27: Potential to Transform Derma Sciences
Potential to Transform Derma Sciences
Slide 28: Diabetic Foot Ulcer Market Overview
Diabetic Foot Ulcer Market Overview • Of the nearly 26 million people with diabetes in the US, 15% - 25% will develop DFU in their lifetime(1) – DFU affects ~900,000 people in the US annually(2) – Addressable market opportunity of ~$3 billion annually • Of those patients who develop DFU, 14% to 24%
Slide 29: DSC127: Product Overview
DSC127: Product Overview • Patented, topically applied novel angiotensin analog licensed from USC in 2007 • Targets receptors that are up-regulated upon injury to tissue • Application of drug to wounded skin has been shown to improve epitheliazation and granulation - Accelerating wound healing in a
Slide 30: Phase 2 Top-line Results
Phase 2 Top-line Results Difference Odds Treatment Group from Ratio Population 0.03% 0.01% Placebo Placebo Analysis(1) Intent to Treat (ITT) 12 weeks 54% 30% 33% 21 points 2.3x 24 weeks 73% 48% 46% 27 points 3.2x Per Protocol (PP) 12 weeks 65% 28% 38% 27 points 3.0x 24 weeks 85% 50% 52% 33 points 5.
Slide 31: Balance Sheet Data
Balance Sheet Data ($ in thousands) As of Pro Forma as Use of Proceeds March 31, Adjusted for 2011 Offering(1) • Initiate Phase 3 trial for DSC127 Cash and cash equivalents $827 $25,672E • Hire salespeople for advanced wound care Total debt 2,375 -- products Convertible preferred stock 3 3E • Repay
Slide 32: Resolutions
2011 ANNUAL MEETING OF SHAREHOLDERS Resolutions DIRECTOR TAKING CLAUDE OUR STRAFORD ELECTIONS BRAND –TO COMVITA RESOLUTIONS THE WORLD FOUNDER 3 KEEPING YOU WELL EVERY DAY 1. To receive the Annual Report 2. Auditor’s appointment and remuneration 3. Director’s Election: Re-elect Neil John Craig Re-ele
Slide 33: Thank You
Thank You TAKING OUR CLAUDE STRAFORD BRAND –TO COMVITA THE WORLD FOUNDER KEEPING YOU WELL EVERY DAY THE FUTURE IS HEALTHY