Lark Distilling Co. Ltd. · ASX:LRK
Lark Distilling — Investor Presentation (October 2023)
62 slides from Lark Distilling's investor presentation, Oct 17, 2023
Slide 1: Lark Distilling Co. Investor Briefing
LARK DISTILLING CO. INVESTOR de ie
Slide 2: Introduction & Welcome
INTRODUCTION & WELCOME
Slide 3: Welcome
& WELCOME “eS S SASH SHARMA BILL LARK CHRIS THOMSON JASON WHALLEY GREIG EWEN MARIEPIORu CEO FOUNDER & MASTER HEAD OF HEAD OF CFO BRAND AMBASSADOR BLENDER MARKETING PRODUCTION
Slide 4: Lark will be a leader in New World whisky
LARK WILL BEA LEADER IN NEW WORLD WHISKY. bN
Slide 5: Lark will lead Tasmanian whisky
LARK WILL LEAD TASMANIAN WHISKY... as the next epicentre of quality Whisky, following in the footsteps of Scotch and Japanese LARK IS PROUDLY AUSTRALIA'S . LARK is best positioned to lead the rise: NO. 1 LUXURY SINGLE MALT a TORY, ABILITY TO INNOVATE. STORY, 30 YEARS OF CLIMATE AND HISTORY AS SCALE
Slide 6: First Days
FIRST 150 DAYS
Slide 7: First Days
FIRST 150 DAYS PEOPLE & ORGANISATION 1. Defined vision, purpose and values 2. Restructure and org design 3. CFO appointment 4. Regional Director Asia appointment PRODUCTION FINANCIAL & PROCESS 1. Whisky inventory segmentation 1. NAB funding structure 2. Wood program analysis 2. Acquired inventory ec
Slide 8: Strategic Priorities
STRATEGIC PRIORITIES BUILD LONG TERM BRAND VALUE LARK will build a globally recognised and differentiated luxury brand CASH & CAPITAL DISCIPLINE INTERNATIONAL SALES MOMENTUM & DOMESTIC LEADERSHIP POSITION Creation of repeatable and diversified (geography and channel) revenue streams LARK will priori
Slide 9: Format for the Day
FORMAT FOR THE DAY 11:00am Brand & Category 11.30am Break 11.45am Architecture & Go-to-Market Q&A 12.30pm Light Lunch 1.30pm Production, Finance, Milestones Q&A | 2.30pm Close 3.00pm Optional Transfer to Airport
Slide 10: The Lark Origin
THE LAR ORIGIN BILL LARK, FOUN & BRAND AMBASSADOR
Slide 11: Chris Thomson, Master Blender
\ fi CHRIS THOMSON, MASTER BLENDER 1
Slide 12: What is Single Malt?
12 WHAT IS SINGLE MALT? ) i) ) SINGLE MALT SINGLE MALT SINGLE MALT WHISKY WHISKY WHISKY Made at Cambridge Acquired malt made at Made at Bothwell Distillery from 100% one distillery from Distillery from 100% malted barley 100% malted barley malted barley BLENDED MALT WHISKY A blend of two or more Sin
Slide 13: Lark will be a luxury brand on the global stage
LARK WILL BE A LUXURY BRAND ON THE GLOBAL STAGE
Slide 14: Press play
Press play.
Slide 15: Australia's No. 1 Luxury
15 AUSTRALIA'S No. 1 LUXURY
Slide 16: Award Winning
AWARD WINNING BUILDING A REPUTATION ON THE WORLD STAGE FOR QUALITY AND INNOVATION GLOBAL SPIRITS MASTERS DARK LARK SINGLE MALT WHISKY ’ x 3 F = LARK TASMANIAN PEATED See Siva: OTe Ty MASTERS SYMPHON! BLE LARK CLASSIC CASK SINGLE MALT WHISKY DECODED : = ne AWARDS
Slide 17: Brand Character
17 BRAND CHARACTER A spirit of experimentation, creating an excepti spirit. We are bold, fri and fearless, a little madn method.
Slide 18: Reason to Believe
REASON TO BELIEVE Australia’s No.1 Luxury Single Malt Whisky Made of Tasmania: = Ideal “Goldilocks” climate = The purest water and air = Fabric of community BRAND POSITIONING A celebration of craft from grain to glass. Made by those who dare to dream, harnessing the wild Tasmanian environment with u
Slide 19: Strategic Target
STRATEGIC TARGET # f CURIOUS “a EXPLORERS — THE ai : fl
Slide 20: Distinctive Brand Assets
20 DISTINCTIVE BRAND ASSETS STANDOUT RECOGNITION SIMPLICITY CONSISTENCY Ron o We will optimise our suite of assets as part of our brand evolution. & LARK TASMANIAN SINGLE MALT WHISKY MADE OF TASMANIA
Slide 21: Creative Direction
CREATIVE 7 DIRECTION mone NE THE LARK SIDE; ce a a whole new world of whisky. the LARK Side A realm where those who challenge tradition live, and the only thing you can expect is the unexpected.
Slide 22: Lark competes in an attractive & dynamic category
22 LARK COMPETES IN AN ATTRACTIVE & DYNAMIC CATEGORY > ‘ Bi, a g | = yo oe a Win. 7
Slide 23: Identified source of business is significant other malt whisky
OUR IDENTIFIED SOURCE OF | BUSINESS IS SIGNIFICANT OTHER MALT WHISKY = We currently compete within Prestige & Prestige / Plus price tiers = There is a significant opportunity in the Ultra- Premium price tier al uid SCOTCH MALT WHISKY PRESTIGE PLUS (c.$350+ / 70cl) SCOTCH MALT WHISKY ULTRA PREMIUM (c
Slide 24: Enter the Right Regions
PRESTIGE PLUS PRESTIGE ULTRA PREMIUM ENTER THE RIGHT REGIONS ASIA NORTH AMERICA. EUROPE GIR AUSTRALASIA MIDDLE EAST AFRICA cls. LATIN AMERICA Indicative scale of source of business by region = We will prioritise our build in Asia, USA and GTR while protecting our domestic Leadership = Completion of
Slide 25: Play to Our Strengths
PLAY TO OUR STRENGTHS = LARK is unique, has the scale, capacity and brand fundamentals to grow internationally = Large Global Spirits players continue to TASMANIAN DISTILLERY GROWTH invest heavily with the backdrop of positive category momentum Hf Distilling Licenses = Similar dynamics in Tasmania —
Slide 26: We will evolve Lark's architecture
26 WE WILL EVOLVE LARK’S ARCHITECTURE...
Slide 27: Investor Briefing - LARK Distilling Co.
▪ ▪ ▪ ▪ 27 27Investor Briefing - LARK Distilling Co.
Slide 28: Important attributes as we scale globally
28 IMPORTANT ATTRIBUTES AS WE SCALE GLOBALLY... = ~60%+ of our source of business utilises age statements for = Re-assurance = Navigation = Optionality = Gives spine greater credibility = Therefore: = Wewill set aside up to 30% of our Single Malt stock for aging which will also increase flexibility
Slide 29: Lark Future Brand Propositions
LARK FUTURE BRAND PROPOSITIONS & LARK TASMANIAN SINGLE MALT WHISKY FORTY SPOTTED TASMANIAN GIN *NOT TO SCALE
Slide 30: Lark Single Malt: Long Term Architecture
LARK SINGLE MALT: LONG TERM ARCHITECTURE HALO = LARK Single Malt Ladder PINNACLE $TBA = Core Domestic and GTR Range will differ ara = Age statements to be introduced in future RARE & REMARKABLE PREMIUMISE . ~$1 000 + & COLLECT 70cl format required for long term This transition will take time are TIE
Slide 31: Limited and Exclusive Releases
LIMITED AND EXCLUSIVE RELEASES OCCASION LED AND SCALABLE INNOVATION PIPELINE
Slide 32: Supporting Master Brand
32 SUPPORTING MASTER BRAND The House of Lark Whiskies = Shene and Bothwell stock to create House of Lark whiskies = Purpose to build scale, generate cash and increase trade relevance = Flexibility allows: = Tasmanian Blended Malt(s) = Single Malt(s) from our stable of distilleries Forty Spotted Gin
Slide 33: International Sales Momentum & Domestic Leadership Position
33 INTERNATIONAL SALES MOMENTUM & DOMESTIC LEADERSHIP POSITION
Slide 34: Investor Briefing - LARK Distilling Co.
▪ ▪ ▪ ▪ ▪ ▪ ▪ 34 34Investor Briefing - LARK Distilling Co.
Slide 35: Investor Briefing - LARK Distilling Co.
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Investor Briefing - LARK Distilling Co. 35 35
Slide 36: Investor Briefing - LARK Distilling Co.
36 36Investor Briefing - LARK Distilling Co.
Slide 37: Investor Briefing - LARK Distilling Co.
37Investor Briefing - LARK Distilling Co.
Slide 38: Q&A: Brand, Category, Architecture, Go to Market
Q&A BRAND, CATEGORY, ARCHITECTURE, GO TO MARKET
Slide 39: Distilling Operations
od Z c _ O =) am) © a o DISTILLING OPERATIONS
Slide 40: Where Art & Efficiency Collide
WHERE ART & EFFICIENCY COLLIDE = Our role is to ensure we craft, produce, and manage our inventory to support our ambition of seeing LARK being a leader in New World Whisky. = Weare constantly improving our ways of working to ensure we manage costs however never compromising on quality, while partne
Slide 41: Stable of Assets: Cambridge Distillery
STABLE OF ASSETS: CAMBRIDGE DISTILLERY Coal River Valley, 18km from Hobart 41 2 hectares land area Distilling Capacity: Pot still -300k L@43% ABV (167.5kLAL) pa. Column still- 300k L@43%ABV (167.5kLAL) pa. Gin Still-382k L@ 40% ABV (152kLAL) p.a. 2x Silos (1x peated, 1x non peated malt) Mash Tun Pea
Slide 42: Stable of Assets: Bothwell
STABLE OF At BOTHWEL if Central Highlands 81km from Hobart. 76 Hectares land area Distilling Capacity: 150k L@43% ABV (83.8k LAL) p.a. ao 1x Grain Silo _—- az =i I Mash Tun & Mill Liquid use: Blended Malt, Offering under ‘The House of LARK’ 5x 3000L SS Fermenters 1800L Wash Still 60OL Spirit Still H
Slide 43: Distilling Capacity
Distilling Capacity: 300k L@43% ABV (167.5k LAL) p.a. ERY 1x Grain Silo Mash Tun Onsite Cooperage Pe a | 2 Manual Bottling Lines Bagdad Valley, 33km from Hobart 15 Hectares land area 43 Liquid use: Blended Malt, Offering under ‘The House of LARK’ 8 x 8000L SS Fermenter 4500L Wash Still 2000L Spirit
Slide 44: Future Pontville Distillery Build
FUTURE PONTVILLE DISTILLERY BUILD * Council DA approved April 23 = Detailed design phase now complete with total capital spend estimated at $19m = Total build period including lead times likely to take 18 months from start date
Slide 45: Our Pontville Vision
45 OUR PONTVILLE VISION = Provide capacity up to 1m Litres of Absolute Alcohol (LAA) in a state-of-the-art Distillery with 6 Stills = Transition to be the LARK Single Malt distillery with design of stills replicating Cambridge = Will be highly automated and offer operational efficiency = Allow conso
Slide 46: Financial & Capital Considerations
46 FINANCIAL & CAPITAL CONSIDERATIONS
Slide 47: Financial & Capital Considerations
47 FINANCIAL & CAPITAL CONSIDERATIONS Our ambition is to make LARK a leader in New World Whisky Our financial decisions will be focussed, disciplined, and committed to this ambition by: = Building the Brand Equity of LARK, and = Supporting international sales expansion While doing this, cash generat
Slide 48: Long Term Brand Value & International Sales Momentum
LONG TERM BRAND VALUE & INTERNATIONAL , SALES MOMENTUM -
Slide 49: Profit before brand marketing
▪ ▪ ▪ ▪ Profit before Brand Marketing Direct Overhead & Selling Costs COGS & Shipping Distribution Margin Excise / Wholesale & Retailer Margin 49 49
Slide 50: Net Sales Contribution after A&P
3,400,000 100% 90% 2,900,000 80% 2,400,000 70% 60% 1,900,000 50% 1,400,000 40% 900,000 30% 20% 400,000 10% -100,000 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Net Sales Contribution after A&P A&P % NSV 50 ▪ ▪ ▪ ▪ ▪
Slide 51: 60,000,000 100% ▪ 90% 50,000,000 80% 70% 40,000,000 60% ▪ ,000,000 50% 40% 20,000,000
60,000,000 100% ▪ 90% 50,000,000 80% 70% 40,000,000 60% ▪ 30,000,000 50% 40% 20,000,000 ▪ 30% 20% 10,000,000 10% - 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 51 51
Slide 52: 52
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Slide 53: Self Produced Acquired Whisky Inventory
▪ ▪ ▪ Self Shene ▪ ▪ SELF PRODUCED ACQUIRED 53 WHISKY INVENTORY
Slide 54: Production flexibility, with ability to scale
PRODUCTION FLEXIBILITY, WITH ABILITY TO SCALE TO ABILITY TO SCALE PRODUCTION SUPPORT BRAND GROWTH pcs conose MM ries rowvaie | Quality Whisky Bank supports international expansion and current production levels (c.100k Litres @43% p.a.) 1,600k . . Paerry . ., ® Distillery Output (Litres @43% t AS) Pr
Slide 55: Investor Briefing - LARK Distilling Co.
▪ ▪ ▪ ▪ 55Investor Briefing - LARK Distilling Co.
Slide 56: Strategic Priorities & Milestones
STRATEGIC PRIORITIES & MILESTONES
Slide 57: Strategic Priorities
57 STRATEGIC PRIORITIES BUILD LONG TERM BRAND VALUE LARK will build a globally recognised and differentiated luxury brand CASH & CAPITAL DISCIPLINE INTERNATIONAL SALES MOMENTUM & DOMESTIC LEADERSHIP POSITION Creation of repeatable and diversified (geography and channel) revenue streams LARK will pri
Slide 58: Investor Briefing - LARK Distilling Co.
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 58 58Investor Briefing - LARK Distilling Co.
Slide 59: Investor Briefing - LARK Distilling Co.
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 59 59Investor Briefing - LARK Distilling Co.
Slide 60: Lark will...
LARK WILL... 1. EVOLVE AND INVEST IN THE LARK TRADEMARK 2. BUILD OUR INTERNATIONAL GROWTH THROUGH DISTRIBUTION PARTNERS 3. DELIVER HIGHEST QUALITY WHISKY FROM OUR PRODUCTION SITES 4. GENERATE 50% OF REVENUE THROUGH EXPORT SHIPMENTS BY FY27 5. EXERCISE CASH AND CAPITAL DISCIPLINE AND IMPROVE OPERATIN
Slide 61: Q&A
Q&A
Slide 62: For more information contact
62 For more information contact: Peter Kopanidis +61 412 171 673 investors@larkdistilling.com LARK TASMANIAN SINGLE MALT WHISKY
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