Elixinol Wellness Ltd · ASX:EXL
Elixinol Wellness — Investor Presentation (October 2024)
28 slides from Elixinol Wellness's investor presentation, Oct 3, 2024
Slide 1: Strategic Acquisition and Capital Raising
Strategic Acquisition and Capital Raising Investor Presentation | 3 October 2024 1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The following material is for general information purposes only and should not be relied on for the making of any investment decision. Any investment in Elixinol Wellness Limited ACN 621 479794 (Elixinol Wellness) is subject to a number of investment risks including t
Slide 3: Acquisition Overview & Strategic Catalyst
Acquisition Overview & Strategic Catalyst 3
Slide 4: A Sustainable Nutrition Company
A Sustainable Nutrition Company We create clean and healthy products and ingredients that improve our customers’ lives. The Healthy Chef acquisition is the catalyst for accelerating high-margin growth through synergistic opportunities. 4
Slide 5: Acquisition Overview
ACQUISITION OVERVIEW Elixinol Wellness Ltd. (”EXL”) has entered into a binding agreement to acquire 100% of the business assets from the entities ("Acquisition") that together form The Healthy Chef business ("Healthy Chef"). • The aggregate total Purchase Price will be between $3.1 million - $5.5 mi
Slide 6: Acquisition Rationale
ACQUISITION RATIONALE The Healthy Chef acquisition advances EXL’s path to positive cash flow and EBITDA growth, with diversified revenue streams aligned with the Company’s core principles of sustainable nutrition. ● EXL is building a profitable ‘House of Brands’ in clean nutrition, with record reven
Slide 7: EXL Group: Pillars for Growth
STRATEGIC IMPERATIVES EXL GROUP: 4 PILLARS FOR GROWTH SCALING D2C FOR GROWTH UNLOCK UNTAPPED CONSUMER SEGMENTS • Leverages EXL’s digital expertise to drive D2C expansion. • Fill gaps in the customer journey, targeting ‘Leaders’ and ‘Learners’. • Targets older, less price-sensitive health demographic
Slide 8: Acquisition Impact on EXL Group Projections
ACQUISITION IMPACT ON EXL GROUP PROJECTIONS The Healthy Chef acquisition is margin accretive, with synergistic cost savings increasing margins to 14% and offering rapid scale potential. EXL 3-YEAR 2025 2026 2027 FORECAST EXL $24.4M 87% $30.1M 86% $38.8M 84% REVENUE HEALTHY CHEF $3.5M 13% $5.0M 14% $
Slide 9: A New Era for Elixinol Wellness
BOARD OF DIRECTORS A NEW ERA FOR ELIXINOL WELLNESS DAVE FENLON PAULINE GATELY NATALIE BUTLER INDEPENDENT CHAIR & NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR • Over 30 years’ experience in FMCG and • Extensive Board experience in FMCG, mining, • Over a decade of strategic leaders
Slide 10: The Healthy Chef Business Overview
The Healthy Chef Business Overview 10
Slide 11: A chef inspired Australian functional clean foods brand
A chef inspired Australian functional clean foods brand for women’s health, inner beauty and wellbeing. 11
Slide 12: Business Overview
MARGIN ACCRETIVE BRAND IMPACT PROVEN FINANCIAL PERFORMANCE BUSINESS OVERVIEW Healthy Chef’s 62%1 gross margin FY24 $3.3M1 revenue, positive cashflow improves EXL’s blended margin to and adjusted EBITDA2 of $318k offer 51%, enhancing overall profitability. immediate low-risk financial benefits. ESTAB
Slide 13: Healthy Chef at a Glance: EXL Growth Blueprint
HEALTHY CHEF AT A GLANCE EXL Growth Blueprint: Driving Expansion MARKET SIZE $3.3M Australian Wellness market is FY24 Revenue US$84BN, ranked 6th globally. REVENUE PROJECTIONS $7.5M BRAND TRUST $7.5M $5.0M A decade of earned brand goodwill 2027 Revenue $4.5M Forecast with trusted reputation for qual
Slide 14: USA Upside Potential
USA UPSIDE POTENTIAL The Healthy Chef acquisition accelerates EXL’s entry into the booming U.S. wellness market, securing a guaranteed $220k minimum annual royalty and tapping into a high-growth eCommerce opportunity. ON TREND: BETTER-FOR-YOU Consumers globally spend USD 1.5 trillion on products to
Slide 15: Steady Revenue & Strong Gross Margin
¹ HEALTHY CHEF FINANCIAL OVERVIEW & PROJECTIONS Steady Revenue & Strong Gross Margin 2 PROJECTED REVENUE DRIVERS Revenue Gross Profit EBITDA $7.5m ✓ USA Licence Agreement ✓ Enhanced D2C performance marketing $5.0m 62% $4.5m ✓ Growth in app and product subscriptions $3.2m $3.3m $3.3m 62% 62% ✓ Appoin
Slide 16: Key Product Verticals
8 KEY PRODUCT VERTICALS The Healthy Chef range caters to the highest growth demand segments for women’s health and wellness. Weight Loss GUT HEALTH HEALTH & FITNESS INGESTIBLE BEAUTY DE-sTRESS SLEEP Immunity MENOPAUSE 16
Slide 17: 360° Personalised Customer Experience
360° PERSONALISED CUSTOMER EXPERIENCE Multiple brand touchpoints with 28 products to connect with women on their personalised health and wellness journey. 17
Slide 18: Completing the Consumer Journey to Fuel Growth
Completing the Consumer Journey to Fuel Growth 18
Slide 19: Synergistic Acquisition Highlights
ACQUISITION HIGHLIGHTS A Transformative Acquisition STRATEGIC STRATEGIC FIT PORTFOLIO ENHANCEMENT LOW-RISK, HIGH-RETURN Strengthens EXL’s portfolio, enabling Fills the gap in EXL’s existing product Payment tied to future revenue, scalable growth with no added costs. offering and customer journey. of
Slide 20: Segmented Brand Strategy
SEGMENTED BRAND STRATEGY • Targeting Consumer Segments: Our portfolio addresses 3 groups; Leaders (early adopters), CONSUMER JOURNEY* Convenience Leaners (trend followers), and Learners (mass market) to engage all consumers on their health and wellness journey. Grocery • Building Influence: Leaders
Slide 21: Projected Gross Margin for EXL Group Post Acquisition
PROJECTED GROSS MARGIN FOR EXL GROUP POST ACQUISITION Healthy Chef’s premium pricing and Direct-To-Consumer (D2C) model delivered 62% gross margin in FY24, forecast to raise EXL Group blended margin to 44%. FORECASTED BLENDED GROUP GROSS MARGIN HEALTHY CHEF MARGIN DRIVERS +3% ✓ Product Mix: 55-65% a
Slide 22: A Strategic Asset Across All Brands
TERESA CUTTER Co-Founder of The Healthy Chef & A Strategic Asset EXL Global Brand Ambassador Across All Brands “ We are passionate about health and wellbeing. We love clean food, and our aim is to inspire, nourish and delight.” - Teresa Cutter Teresa Cutter will be retained as Chief Innovation Offic
Slide 23: Scalable Growth Potential
2024 Sales Mix 13% SCALABLE GROWTH POTENTIAL 16% 39% $16M • Acquisitions and Innovation: Targeted acquisitions, plus innovative new products, 1% unlock new consumer segments and boost market share. 10% • Scalable Growth: 21% Our diverse portfolio is set to drive revenue and profit growth over the ne
Slide 24: Equity Raising Overview
© Elixinol Wellness Equity Raising Overview
Slide 25: Equity Raising Overview
EQUITY RAISING OVERVIEW • EXL is raising approximately $1.1 million via an institutional Placement, comprising the issue of up to approximately 244 million New Shares, equivalent to up to 18.5% of total EXL existing issued share capital. • Share purchase plan to eligible shareholders to raise up to
Slide 26: Indicative Capital Structure and Use of Funds
INDICATIVE CAPITAL STRUCTURE AND USE OF FUNDS “Investing for growth” • The Healthy Chef business provides us with the opportunity to expand into the D2C premium consumer segment. We will expand the existing marketing investment to deepen the basket and attract new consumers. • We will utilise Teresa
Slide 27: Indicative Timetable
INDICATIVE TIMETABLE EVENT DATE1 Record Date 7.00pm Wednesday 2 October 2024 SPP and Placement announcement Thursday 3 October 2024 Company resumes trading Friday 4 October 2024 Lodgement of Prospectus with ASX and ASIC Monday 7 October 2024 Despatch of Prospectus and SPP Offer opens Thursday 10 Oct
Slide 28: Contact
Contact Dave Fenlon Non-Executive Chair dave.fenlon@elixinolwellness.com Pauline Gately Non-Executive Director pauline.gately@elixinolwellness.com 28
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