Company Presentation
Eqology
Eqology was established in 1998 in Norway, now operating inmore than 20 European countries
Distributor of supplement products online, such as Omega3,multivitamins, collagen, shakes and skincare
Products developed in collaboration with leading herbalists,homeopaths and biochemists with focus on natural ingredients
Distribution via independent distributors and direct salesMember of the Norwegian DSA
Company Facts
Executive Summary
Present in severalEuropean countries,including Scandinavia,Netherlands, Austria,Switzerland andGermany
Key Financials (1000 NOK)
-20%
-15%
-10%
-5%
0%
5%
10%
-15 000
-10 000
-5 000
-
5 000
10 000
2016 2017 1H 2018*
EBITDA EBITDA-margin
* 1H 2018 numbers not revised/audited
In recent years, Eqology has outsourced large parts of itsoperational operations. There are 6 employees who hold keyroles in the company directly, and there are another 30 peoplewho work full time for the company with customer service, ITand accounting. In addition, warehouses and distribution havebeen outsourced to partners. The sales channel consists ofseveral hundred independent distributors.
Eqology has the ambition to expand the concept into furtherEuropean countries than the existing 20 markets. The ambitionis to become Europe's leading company in health fooddistributed through direct sales.
Revenues by country (1000 NOK)Organizational structure
Business model
- 10 000 20 000 30 000 40 000 50 000 60 000 70 000
Norway
Sweden
Denmark
Finland
Estoponia
Netherlands
Austria
Hungary
Romania
Other euro countries
2017 2016
Sales Channel
• Eqology offer a business opportunity that is popular withpeople looking for part-time, flexible business with a lowupfront investment
Marketing takes place through a network of independentdistributors who recruit new customers, and distributors
Eqology has one of the industry's best commission systems anda well-functioning support device
In Eqology the company focus on products and customers.Eqology has 37 months with consecutive growth in number ofcustomers who have an active monthly subscription
Management
Børre GjersvikCEO
Asgeir NaalsundCOO
Dr. Hogne VikProduct- and
Research Director
Børre Gjersvik has worked as Director ofInternational Business in Eqology since January2014, and became CEO in Eqology November2014.
Børre’s background is in finance, also acertified nutritionist with 20 year’s experiencein the nutrition, cosmetics and skin careindustry.
Børre has also worked as CEO at Dermanor,been the director of the health department atMidelfart AS and was Senior Country Directorat Herbalife Nordics for eight years.
Asgeir Naalsund has worked in Eqology sinceFebruary 2017.
Education in Finance & Business administrationand logistics.
Asgeir has previously worked 7 years as aController and Business AdministrationManager in Norsk Gjenvinning Industri AS.
Additional 20 years of experience in thecomputer industry as a controller in companiessuch as GPI AS, Contempus AS, Affecto AS andaffiliated companies.
Dr. Hogne Vik has an MBA and a uniqueinternational industrial background fromNycomed/Nycomed Amersham, PronovaBioPharma and Aker Biomarine.
As a physician and professor, he has published over 80 international scientific papers.
Long experience in product development ofdietary supplements and pharmaceuticals.Has been responsible for documentation ofknown Omega-3 products, and participated indeveloping vitamin K2 supplements.
Balance sheet (consolidated 1000 NOK) Income statement (consolidated 1000 NOK)
Financials
Income statement (1000 NOK) 2016 2017
Revenues 83 161 132 470
Total operating income 83 161 132 470
Cost of goods 33 814 46 234
Personnel expenses 9 346 8 902
Depreciation 782 128
Other operating expenses 52 267 73 436
Total operating expenses 96 209 128 701
EBIT -13 047 3 770
Net financial posts -1 492 -499
Ordinary result before taxes -14 539 3 270
Net income -14 539 3 270
Key figures 2016 2017
EBITDA -12 265 3 898
EBITDA-margin -14,7 % 2,9 %
Revenue growth 59 %
Gross profit margin -14,8 % 4,5 %
Assets 2016 2017
Total fixed assets 160 1 000
Inventories 4 193 8 175
Accounts receivables 743 886
Other short-term receivables 1 865 5 341
Cash and cash equivalents 8 476 5 143
Total current assets 15 276 19 544
Total assets 15 437 20 545
Equity
Total paid-up capital 67 214 67 214
Retained equity -90 888 -87 619
Total equity -23 674 -20 405
Liabilities
Convertible bonds 9 487 -
Other long term debt - 9 487
Total other long term debt 9 487 9 487
Debt to financial institutions 4 675 3 575
Overdraft facility 7 034 3 547
Accounts payable 3 933 5 616
Public taxes 4 149 5 189
Other short term debt 9 832 13 535
Total short term debt 29 623 31 463
Total liabilities 39 111 40 950
Total equity and liabilities 15 437 20 545
EBITDA (1000 NOK) Revenues (1000 NOK)
Financials
-20%
-15%
-10%
-5%
0%
5%
10%
-15 000
-10 000
-5 000
-
5 000
10 000
2016 2017 1H 2018*
EBITDA EBITDA-margin
-20%
-15%
-10%
-5%
0%
5%
10%
-
20 000
40 000
60 000
80 000
100 000
120 000
140 000
2016 2017
Revenues Gross profit margin
Revenues increased by NOK 49 309’ from 2016 to 2017representing a growth of 59%
Revenues 1H 2017 was NOK 57 739’, which has increased toNOK 89 831’ in 1H 2018* representing a growth of 56% in 1Hrevenues from 2017 to 2018
EBITDA turned from negative NOK 12 265’ in 2016 to positive NOK 3 898’ in 2017
During 1H 2018* this has almost doubled, to NOK 6 766’
The EBITDA-margin has gone from -14.7% in 2016, to 2.9% in 2017 and 7.5% 1H 2018
* 1H 2018 numbers not revised/audited
83 161
132 470
SharesInvestors
Ownership structure
Nicoline Invest AS Kg Investment comp AS
Banque lombard odier & cie SA Børre Gjersvik
Momentum Consult & Invest AS John Andrew Youmans
Banque Pictet & Cie SA Remaining
109 million ordinary shares (one share class)
Nominal value of NOK 0,05 per share
Approx. 80% is owned by board members and CEO
ISIN: NO0010585144
Ownership structure Number of shares In %
Nicoline Invest AS* 58 895 429 53,7 %
Kg Investment comp AS 23 293 728 21,2 %
Banque lombard odier & cie SA 6 802 710 6,2 %
Børre Gjersvik 5 152 930 4,7 %
Momentum Consult & Invest AS 3 325 938 3,0 %
John Andrew Youmans 1 313 337 1,2 %
Banque Pictet & Cie SA 1 248 834 1,1 %
Others 9 650 968 8,8 %
Total 109 683 874 100 %
*Nicoline Invest AS has sold 5 million shares to Rhumb Line AS, but this transaction is not yetreflected in the official VPS-register.
Main Products
Primary products
K2+Omega 3Multivitamin
Contains a full range of vitamins, minerals, and super fruit extracts
Subsea development withthree horizontal wells
Anti-age vitamin for healthy bones and blood vessels
Secondary products
ShacaiShakeCollagen
Anti-age, reduces wrinkles and strengthens the skin
Meal replacement containing 50% protein, vitamins and minerals
Tablet with Acai and antioxidants, strengthens immune system
Eqology best selling product
Eqology Omega-3 Test Kit
Omege-3 results from test
Coming Soon!
Eqology test kits