gli presentation 24-05 v3
TRANSCRIPT
Gerhard Naude CEO Go Life International Limited
Dr. Wolfgang Schoenfeld CEO Go Life Global
Greg Gilbert Research & Business Development
Dr. Lana Du Plessis Research & Development
Marthinus Wolmarans CFO Go Life International
KEY TEAM MEMBERS
Extensive experience in management of people and companies Strong financial and operational background
Scientific excellence
Go Life International - a class leading multinational, nutraceutical and cosmeceutical company
According to Frost & Sullivan (leading market research and analyst company) – the nutraceutical and cosmeceutical industry is expected to reach USD 500 billion in 2018
Our products are formulated using unique patent protected technology and know-how
Go Life has the required skills and experience to significantly increase its share of the domestic market, and launch / establish its product range in key international markets
Go Life has experienced exponential sales growth since 2005
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY (continued)
Our fully integrated business model encompasses in-house research, product development, superior quality products with global appeal
Go Life listed on the Stock Exchange of Mauritius in 2011
Go Life has received approval from the Advisory Committee of the Johannesburg Stock Exchange for listing on the AltX by Q3 of 2015
MILESTONES
2011 Listing of Go Life on the Stock Exchange of Mauritius
2008 Gerhard Naudé - Establishment of Go Life Health Products rebranding, and market expansion
2006 Robert Matzner – Founder of Gotha - exclusive distribution of Gotha products
2005 Dr. Henry Davis – Inventor of Gotha products –widely acknowledged efficacy - unique patented products
2011 Dr Wolfgang Schoenfeld founded Solmic Research based on a unique technology and range of products – marketed through Sodocos GmbH
MILESTONES (continued)
2015 Approval for Listing of Go Life on AltX of the Johannesburg Stock Exchange
2014 Negotiations with German counterparts in the nutraceutical field
2013 Signed subscription in shares with a German AG Start of listing process on Frankfurt Stock Exchange
October-December 2014 Formation of new Go Life International Group
COMPANY STRUCTURE
Research Development Manufacturing
Distribution
100%
100%
22%
78%
100%
100%
100%
50%
Go Life US
THE BUSINESS
Health Sector
Life Sciences focus on Nutraceuticals and Cosmeceuticals
Fully integrated company covering research, development, manufacturing, marketing of high quality health products
IP : strong patent portfolio and proprietary know-how
Medical care and frail centres
Operational Sites: South Africa, EU and USA
MARKETS: Nutraceuticals Cosmeceuticals
More than food and cosmetics, natural extracts, vitamins, co-factors, essential oils
Efficacy closer to pharmaceuticals, safety closer or identical to food and cosmetics
Provide health and medicinal benefits including prevention and treatment of diseases
Increase life expectancy and quality of life - a daily necessity for an active and healthy lifestyle
Scientific knowledge and proven data and processes necessary for product efficacy, marketing success and regulatory approvals
Combined market size to reach 500 Bill USD by 2018
Nutraceuticals Compound annual growth of 7%
Cosmeceutical market increasing annually by approx. 8% Fredonia Marketing Research 2011
Cosmetics Growth of cosmeceuticals will outperform growth of cosmetics
MARKETS
Market for health supporting products growing significantly faster than Global GDP
Phenomenon the result of increased health awareness, aging population and rapid expansion of global middle class
TECHNOLOGY BACKGROUND
Go Life’s success is founded on:
Patented technologies, products, ingredients and proprietary formulas
Extensive knowledge and exceptional product innovation
Established marketing routes and distribution networks
Key proprietary advantage – technology to dramatically increase Bioavailability and absorption of compounds
TECHNOLOGY BACKGROUND (continued)
Without water, there is NO life: Evolution has optimized the uptake of substances into the body based on water soluble ingredients
Fat soluble ingredients, e.g. vitamins A, D, E, Cofactor Q10 and essential Omega 3-fatty acids are poorly absorbed by the intestinal tract: uptake lower than 10% ; 90% excreted
Low bioavailability = High dosing required, thus increase in costs, taste problems and gastrointestinal issues
Many products overdosed, poor tasting with little efficacy
Many natural ingredients and extracts are unstable and insoluble
INCREASING BIOAVAILABILITY
Making active ingredients water soluble e.g. Vitamin A, D, E, CoQ10, resins, extracts
Mimicking the natural process of food absorption based on bile salt mediated uptake (“Micellation”)
More efficient and versatile than competitor technologies
THE CHALLENGE EXAMPLE - Vitamin D
Winter depression low vitamin D levels due to low sun exposure
Vitamin D more than a bone hormone, 80% of all cells react to Vitamin D – yet 70% of entire population Vitamin D deficient
Host defence enhancement of natural resistance to infection
Cardiac function enhancement of heart function
Cancer clear evidence of activity in certain cancers e.g. breast cancer
OUR CORE ASSETS
Know-How and IP - patent portfolio covering Go Life’s technology - internal know-how on technologies and unique formulations
Strong expertise in research and development - understanding biochemistry and medicine - understanding the mechanism of action between ingredients - expertise in preclinical and clinical trials - strong link to scientific community
Extensive experience in manufacturing - in-house preparation of extracts - production of intermediates and final products
OUR ASSETS
Close contact with Customers and the Medical Community (Pharmacists, Therapists, Physicians, Health Care Workers)
Thorough understanding of regulatory environment in EU, US and SA - in SA all products are registered with MCC
Extensive experience in medical product marketing (flyers, background literature, brochures etc.)
THE FINANCIALS
The basis of our projections
Products currently marketed in SA and EU
Experience in the US market
Production and product costs clearly established
Cost of company acquisitions are fixed
Company overhead-structure costs in SA, EU and US in-line with historical cost
Setting up solid base for future projections
THE FINANCIALS (continued)
Extrapolation of existing market values
Addressing individual marketing channels e.g. US: direct marketing; SA: major retail chains
Addressing initial significant marketing costs
Addressing continuous development of products
Conservative growth estimates
Testing sensitivity of the model Identifying key parameters and go´s and no go´s for EBIT/Cashflow P/L
Financials
0
10
20
30
40
50
60
2014 2015 2016 2017 2018 2019
US
$ M
ill
YEAR
Total Revenues
Financials
0
1
2
3
4
5
6
7
8
2014 2015 2016 2017 2018 2019
US
$ M
ill
YEAR
Operating Profit
0
2500
5000
7500
10000
12500
2014 2015 2016 2017
Mill
US$
Year
Sales by Region
Africa
Asia
EU
US
Financials
Financials
2014 2015 2016 2017 2018 2019
Revenues 3,4 3,2 6,4 15,8 34,3 55,7
Cost of sales 0,7 0,5 1,6 4,2 9,5 15,7
Gross profit 2,7 2,7 4,8 11,5 24,7 40,0
Operational expenses 1,6 1,4 3,5 9,0 16,9 21,9
Pre tax income 1,3 0,8 0,8 2,1 9,3 17,7
RATIONALE FOR LISTING
Global investors would prefer to invest into a more liquid and wider recognised Stock Exchange like the AltX of the Johannesburg Stock Exchange
South African investors are precluded from investing in current offshore structure
The new dual listing will accommodate South African and International investors
PROSPECTS
Existing registration at local authorities will pave the way for marketing new products and entering new markets
Continous research and development of products will be boosted by existing and newly established laboratories in Germany and South Africa
Marketing spend i.r.o the globalisation of the existing brands will provide benefits across the group
Production will be decentralised – close to individual distribution and marketing channels
Close interaction beween the sites will ensure highest product quality and global sustainability
CONTACTS
Gerhard Naude Mobile: +27 82 495 4647 Email: [email protected]
Wolfgang Schoenfeld Mobile: + 43 664 197 5342 Email: [email protected]