investor update - asx · industry & market size • tfg operates within the non-invasive...
TRANSCRIPT
INVESTOR UPDATESEPTEMBER 2016
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CORPORATE OVERVIEW
Capital Structure Board of Directors
Total Shares on Issue1 121.38
Joanne Hannah
Managing Director & CEO
Share Price
@ 15.03.16$0.22
Paul Fielding
Executive Chairman
Market Capitalisation 26.7Dr Vilma Di Maria
Non executive Director
Cash2 $4.0m
John Conidi
Non executive Director
Borrowings2 $1.5m
Enterprise Value $25.6m Top Shareholders
Paul Fielding 10.5%
Perpetual Limited 6.6%
Regal Funds Management Pty Ltd 5.8%
Tiga Trading Pty Ltd 5.7%
Notes:1 32.1m (26.4%) of total shares on issue are escrowed for
up to 2 years from listing2 June 30 2016 Accounts
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FY16FY15
(Proforma1)
FY15
Revenue $7,917,645 $5,940,641 $2,293,694
Gross Profit $5,654,016 $3,708,274 $1,644,735
Gross Profit Margin 71% 62%
Clinical Profit $1,458,140
Clinic Profit Margin 18%
Underlying EBITDA2 -$132,668 -$193,694 -$744,261
Underlying EBITDA Margin -1.7% -3.3% -32.4%
Less Depreciation $557,570
Less Net Interest Expense $134,619
Underlying Net Loss2 -$824,857
Borrowings $1,491,237
Cash $2,601,306
Notes:1 FY15 Pro forma reflects the audited 2015 Total Face Group and Heber Davis financial results as
disclosed in the Company’s prospectus2 Excludes $0.8m in non-recurring costs relating to acquisition and integration costs
FY2016 RESULTS
• LFL Revenue growth of 9% compared to the pro-
forma prior year 2015
• Heber Davis achieved year on year revenue growth
of 6%
• The acquisitions of Face Today and Rejuven8, as
disclosed in the Company’s prospectus, contributed
$1.2m to FY16 group revenue
• During the period CoolSculpting® contributed 11% to
revenue an increase of >300% on the prior period
• FY16 gross profit margin increased to 71% (FY15
pro forma 62%)
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POST JUNE 30
• Successful $10m capital raising @ $0.25 attracting
key institutions onto the register
• Successfully completed the acquisition of
COZMedics, Facial Artistry & Endless Solutions
• Taken delivery of 8 of 20 CoolSculpting® systems
• Held 8 Cool Events with a further 40 scheduled
throughout FY17
• Signed a strategic partnership with Business Chicks
Australia for an initial 12 month period
• Launched our new branding on 11th September 2016
THERE ARE LOOKS,
THEN THERE ARE
GOOD LOOKS
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COMPANY OVERVIEW
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• Operates in the medical aesthetic industry providing non-invasive
cosmetic treatments
• Three core modalities – Cosmetic Injectables, Skin Solutions and
Body Fat Reduction using CoolSculpting®
• TFG operates 14 clinics – 3 in QLD, 3 in NSW, 1 in ACT & 7 in VIC
with 1 Skin Solutions retail shop in VIC
• TFG currently has a team of 18 doctors and 36 clinicians
• Largest provider of CoolSculpting® in Australia with ~18% of all
systems
• Vision to become the most respected, influential and successful
organisation in the medical aesthetic market
OVERVIEW OF TFG
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INDUSTRY & MARKET SIZE
• TFG operates within the non-invasive cosmetic
industry which is approximately 42% of the total
cosmetic industry
• Spending on minimally or non-invasive cosmetic
treatments more than doubled from an estimated
$300m in 2008 to $645m over the five year period to
2013 (16.5% CAGR)1
• Since 2013, spending on minimally or non-invasive
cosmetic treatments grew to an estimated $890m in
20152
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OUR MARKET SEGMENT• Targeting the premium non-invasive treatment market
• Several important features distinguish non-invasive
modalities from plastic surgery….
• Non-invasive treatments have lower risk of complication
• Less costly and are temporary in nature
• Treatments fade with time and require re-treatment 3-4 times per
year creating reoccurring revenue streams which underwrites
future business growth
• TFG has a strong focus on training with all clinics
operating with highly qualified and trained doctors,
registered nurses and dermal clinicians
• Our growth is anticipated to be unpinned by three strong
and growing market segments….
• Anti-ageing
• Skin Solutions
• CoolSculpting®
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OUR COMPETITVE ADVANTAGE
Our competitive advantage is driven by attracting the best talent
and building partnerships with the industry’s leading suppliers
• Attracting the best clinicians and therapists in the industry (4 of
Australian’s top Allergan training doctors within the group and
multiple representations in the Cosmetic Physician College of
Australia)
• Partnership with Lumenis and Zeltiq at a global level for
consumables, capital equipment and co-operative marketing of
CoolSculpting® within Australia
• High levels of patient outcomes through excellence in customer
service, products and technology with an exemplary patient safety
record across all clinics
• Branding that moves away from focusing on the treatment to one
that addresses the human truths about why consumers participate
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OUR GROWTH STRATEGY
• Creation of an industry brand – connecting to the
emotion and not the treatment itself
• Further acquisitions with the objective to – enhance our
geographic presence, strengthen our clinical team
further, and increase the treatments we deliver
• Continue to invest in our proprietary application –
TESSA – to maintain clinical excellence, operational
control and even greater insights to our clients
• Maintain market leadership in body fat reduction using
the CoolSculpting® technology
• Further strengthen our relationships with industry
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OUR BRAND
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FOR GOOD LOOKS
• On 11th September 2016 we launched our brand
• A brand that gives the emotional reason for people to
connect with us beyond our product and the rational
aspects of our business
• A brand that moves away form describing the treatment
itself
• Enables better marketing of our services in a highly
regulated environment
• Created marketing and campaign collateral
• Created collateral for our clinics
• Released our manifesto on YouTube -https://www.youtube.com/watch?v=zSV1pfgGJkQF
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Clinic Imagery
BRAND & IMAGERY
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OUTLOOK
• Made a solid start to FY17 and remain confident on previous guidance provided in the capital raising
presentation released to the market on 9 June 2016
• Revenue forecast to reach $25.5m delivering an EBITDA of $2.75m
• CoolSculpting revenue expected to contribute significantly to financial performance as we bring online
20 new systems during FY17 – with 8 already installed
• Assessing further acquisitions
• On track to open a new greenfield site by end of September in the coveted Chatswood Chase
shopping complex in North Sydney
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DISCLAIMER
This presentation was not prepared for and should not be relied upon to provide all necessary information for investment
decisions. Some of the information contained in this presentation contains “forward-looking statements” which may not
directly or exclusively relate to historical facts. Although great care & diligence has been taken to ensure the accuracy of this
presentation, Total Face Group Limited gives no warranties in relation to the statements and information contained herein
and disclaims all liability arising from persons acting on the information and statements in this presentation.
Due to the dynamics and changing risk profiles of investment markets, Total Face Group Limited reserves the right to
change its opinion at any time. All investors are strongly advised to consult professional financial advisors whose role it is to
provide professional financial advice, taking into account an individual investor’s investment objectives, financial situations
and particular needs
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CONTACTS
Total Face Group LimitedACN 169 177 833
Jo Hannah
CEO
Liza Juegan
CFO
Paul Fielding
Executive Chairman
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“we believe in a world where compliments and acceptance can come naturally”
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