Innature Bhd · MYX:INNATURE

Innature Bhd — FY2022 Earnings Presentation

28 slides from Innature Bhd's earnings presentation, Feb 23, 2023

  1. Slide 1: FY2022 Results

    FY2022 RESULTS 23 February 2023 A constituent of FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Syariah Index since June 2022

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation contains certain forward looking statements with respect to InNature Berhad’s (“InNature”) financial condition, results of operations and business, and management’s strategy, plans and objectives for InNature. These statements include, without limitation, those that expr

  3. Slide 3: Business Review

    BUSINESS REVIEW

  4. Slide 4: 4Q2022 Business Highlight

    4Q2022 BUSINESS HIGHLIGHT Seasonally stronger 4Q2022 Continue to expand physical POS strategically - Net addition of 1 store in 4Q2022 - Opened 3 pop-up stores in Vietnam Aeon Mean Chey Phnom Penh Thiso Mall HCMC Exited Natura business in Oct 2022 Saigon Center HCMC Gold Coast Nha Trang Vincom Bien

  5. Slide 5: 4Q2022 Performance Snapshot

    4Q2022 PERFORMANCE SNAPSHOT A seasonally stronger quarter amid macro uncertainties & high-base effects -1.6% +69.5% +128.5% RM40.8m Overseas Strong Market in improvement Revenue Limited core PAT recorded decline YoY, backed by corestrong PAT core +15.7% QoQ, -6.6% YoY PAT rebound YoY reported margin

  6. Slide 6: FY2022 Performance Snapshot

    FY2022 PERFORMANCE SNAPSHOT Year of strong resurgence, highest growth in 7 years RM149.4m Growth in all Steady rebound in Markets +125.7% revenue +13.8% Malaysia Strong improvement in +13.2% reported, +8.0% Vietnam core PAT, doubling of +12.3% constant forex, +1.3% Cambodia margin to 14.2% +15.6% sa

  7. Slide 7: Financial Review

    FINANCIAL REVIEW

  8. Slide 8: FY2022 Financials at a Glance

    FY2022 FINANCIALS AT A GLANCE FY2022 Revenue FY2022 GP Margin Shareholders’ equity Net gearing ratio (1) RM149.4m 66.2% RM148.7m Net Cash  13.2% reported FY2021: 64.4% as at 31.12.2022 as at 31.12.2022  15.6% same store FY2022 PAT FY2022 EPS RM23.0m RM21.2m RM21.3m 3.02 sen FY2022 Net operating Di

  9. Slide 9: FY2022 Revenue Breakdown

    FY2022 REVENUE BREAKDOWN By Brand By Market By Channel Natura, 1% Cambodia, 3% Digital & Remote, 16% Vietnam, 19% The Body Shop, 99% Malaysia, 78% Retail Stores, 84% Refocus on The Body Shop brand Overseas contribution above 2019 Digital & remote channels 6 times following the disposal of Natura lev

  10. Slide 10: FY2022 Profitability

    FY2022 PROFITABILITY % of Revenue GP to operating profit FY2022 FY2021 Change Higher operating profit margin supported by: Gross profit margin 66.2 64.4 +1.8 • Improved GP margin following lesser discounting, Rent (13.2) (12.2) +1.0 lower inventory write-off & price increase • Lower Distribution & D

  11. Slide 11: FY2022 Profitability (Cont'd)

    FY2022 PROFITABILITY (CONT’D) % of Revenue RM’000 Operating profit to PAT Core PAT by Market FY2022 FY2021 Change 2022 2021  106% 20,459 Operating profit margin 17.6 14.7 +2.9 Other income 0.9 0.0 +0.9 Finance income (net) 0.6 0.9 -0.3 9,941  264%  55% MFRS 16 impact 0.0 (0.1) -0.1 913 -556 427 2

  12. Slide 12: Quarterly Financials

    QUARTERLY FINANCIALS RM’000 RM’000 Quarterly financial results 4Q Core Revenue by Market 50,000 MCO 3.0 & 80.0%  6% 2022 2021 MCO 2.0 Omicron GE15 45,000 FMCO 70.0% 32,181 34,209 40,000 67.2% 64.9% 63.2% 66.6% 66.2% 65.1% 66.9%  2%  5% 61.7% 60.0% 35,000 7,688 7,816 50.0% 950 1,002 30,000 25,000

  13. Slide 13: Healthy Balance Sheet

    HEALTHY BALANCE SHEET RM’000 NAV per share (sen) 21.06 20.42 19.65 2020 2021 2022 • Asset-light & net cash financial position • Continuous growth in NAV per share

  14. Slide 14: Cash Generative Business

    CASH GENERATIVE BUSINESS RM’000 RM’000 Net Operating Cashflow, Dividend & Capex Paid Dividend Declared 2 sen 22,993 14,118 20,262 1.5 sen 18,306 17,647 17,647 1 sen 1 sen 10,588 1 sen 7,059 7,059 7,059 0.5 sen 7,059 6,181 3,529 3,910 1,677 2020 2021 2022 2020 2021 2022 Net operating cashflow Dividen

  15. Slide 15: Business Outlook

    BUSINESS OUTLOOK

  16. Slide 16: Business Outlook

    BUSINESS OUTLOOK Cautious for the lingering macro headwinds but optimistic because the beauty market is growing Demand for The Body Shop products is strong with the rise of the conscious customer Priorities in FY2023 1. 2. 3. Strategic growth of Continue to focus Continue to invest physical retail s

  17. Slide 17: Annexes

    ANNEXES

  18. Slide 18: Retail Store Count

    RETAIL STORE COUNT 114 stores as at 31 Dec 2022, 73 Malaysia 38 Vietnam 3 Cambodia Malaysia Vietnam Cambodia Group Retail stores at 1 Jan 77 39 2 118 2022 New 2 2 1 5 Reopen 1 - - 1 Closure (6) (3) - (9) Natura (1) - - (1) Retail stores at 31 Dec 73 38 3 114 2022 Pop-up stores at 31 Dec - 3 - 3 2022

  19. Slide 19: Revenue by Market

    REVENUE BY MARKET 4Q2022 Annual Change FY2022 Annual Change 4Q2022 % Same store Constant FY2022 % Same store Constant Reported Reported RM’000 contribution sales forex RM’000 contribution sales forex Malaysia 32,181 78.8% -4.4% -7.7% -7.7% 117,058 78.4% +18.3% +13.8% +13.8% Vietnam 7,688 18.8% -2.9%

  20. Slide 20: Revenue by Channel

    REVENUE BY CHANNEL 4Q Full Year Retail Conversational Social Retail Conversational Social Ecommerce Ecommerce Stores Commerce Selling Stores Commerce Selling 2022 86.0% 10.5% 3.5% - 87.0% 8.3% 3.9% 0.8% 2021 86.4% 6.6% 5.8% 1.2% 69.2% 16.3% 13.0% 1.5% Digital & remote channels Digital & remote chann

  21. Slide 21: Profit & Loss – 4Q2022

    PROFIT & LOSS – 4Q2022 % change As a % As a % 4Q2022 RM'000 4Q2022 of revenue 4Q2021 of revenue vs 4Q2021 Revenue 40,819 100.0% 43,697 100.0% -6.6% GP 27,308 66.9% 27,615 63.2% -1.1% Rent (4,606) -11.3% (4,394) -10.1% 4.8% Staff (9,377) -23.0% (7,859) -18.0% 19.3% Depreciation (725) -1.8% (1,593) -3

  22. Slide 22: Profit & Loss – FY2022

    PROFIT & LOSS – FY2022 % change As a % As a % FY2022 RM'000 FY2022 of revenue FY2021 of revenue vs FY2021 Revenue 149,398 100.0% 131,920 100.0% 13.2% GP 98,943 66.2% 85,019 64.4% 16.4% Rent (19,652) -13.2% (16,030) -12.2% 22.6% Staff (36,330) -24.3% (30,406) -23.0% 19.5% Depreciation (4,378) -2.9% (

  23. Slide 23: Balance Sheet

    BALANCE SHEET RM'000 31.12.2022 31.12.2021 % change RM'000 31.12.2022 31.12.2021 % change Non-current assets Non-current liabilities Goodwill 50,436 50,436 0.0% Lease liabilities 10,410 9,699 7.3% PPE & IA 10,396 (50,374) -120.6% Hire puchase liabilities - 27 -100.0% Right-of-use assets 19,922 19,74

  24. Slide 24: Cashflow

    CASHFLOW RM'000 31.12.2022 31.12.2021 % change Cash generated from operations 44,747 34,707 28.9% Income tax paid (7,043) (5,179) 36.0% Net cash generated from operating activities 37,704 29,528 27.7% Capex (3,904) (1,677) 132.8% Movement in fixed income funds and fixed deposits 26,613 (13,046) 304.

  25. Slide 25: Segment Profit & Loss – 4Q2022

    SEGMENT PROFIT & LOSS – 4Q2022 4Q2022 4Q2021 RM'000 Malaysia Vietnam Cambodia Group Malaysia Vietnam Cambodia Group Segment Revenue The Body Shop 32,181 7,688 950 40,819 34,209 7,816 1,002 43,027 Natura - - - - 670 - - 670 32,181 7,688 950 40,819 34,879 7,816 1,002 43,697 Segment PAT The Body Shop 5

  26. Slide 26: Segment Profit & Loss – FY2022

    SEGMENT PROFIT & LOSS – FY2022 FY2022 FY2021 RM'000 Malaysia Vietnam Cambodia Group Malaysia Vietnam Cambodia Group Segment Revenue The Body Shop 115,618 28,698 3,642 147,958 100,580 25,652 3,436 129,668 Natura 1,440 - - 1,440 2,252 - - 2,252 117,058 28,698 3,642 149,398 102,832 25,652 3,436 131,920

  27. Slide 27: Segment Balance Sheet

    SEGMENT BALANCE SHEET 31.12.2022 31.12.2021 RM'000 Malaysia Vietnam Cambodia Group Malaysia Vietnam Cambodia Group Segment assets The Body Shop 134,932 33,588 5,860 174,380 119,691 33,327 5,135 158,153 Natura - - - 3,689 - - 3,689 134,932 33,588 5,860 174,380 123,380 33,327 5,135 161,842 Investment

  28. Slide 28: Thank You

    THANK YOU

InNature Berhad — FY2022 Earnings Presentation on 6ix