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Investor Presentation January-February 2017
ASX: BDA
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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
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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
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Bod Australia Strategy
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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
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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
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Distribution Progress
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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
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Bod leveraging success in Pharmacy into
other current distribution channels
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Travel Specialty Retailers
Department Stores
Online
Export
Grocery
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Existing Products Overview
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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
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Launching March Quarter under own brand –
Pinpoint & Flexofytol
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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
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In Development - new & complementary
product lines
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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)
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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
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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
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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
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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
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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
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Contact
Management Investor Relations
Jo Patterson Matt Wright
Bod Australia NWR Communications
+61 2 9199 5018 [email protected]
+61 451 896 420
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