Star Combo Pharma Ltd. · ASX:S66
Star Combo Pharma — Shareholder Meeting (November 2020)
24 slides from Star Combo Pharma's shareholder meeting presentation, Nov 24, 2020
Slide 1: Star Combo 2020 AGM – CEO Presentation (ASX announcement)
STAR COMBO PHARMA LTD ABN 38 6157 283 75 171 -177 Woodpark Rd Smithfield NSW 2164 P: +61 2 9756 6555 sales@starcombo.com.au 24 November 2020 ASX Announcement For personal use only Star Combo 2020 AGM – CEO Presentation _________________________________________________________________________________
Slide 2: Annual General Meeting CEO Presentation
For personal use only ASX: S66 Annual General Meeting CEO Presentation 24 November 2020
Slide 3: Disclaimer
DISCLAIMER For personal use only The information in this presentation is not a prospectus or other form of disclosure document prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act) and will not be lodged with the Australian Securities and Investments Comm
Slide 4: Company Overview
For personal use only COMPANY OVERVIEW 3
Slide 5: Star Combo Pharma Snapshot
STAR COMBO PHARMA SNAPSHOT For personal use only Star Combo Pharma (ASX:S66) is a Sydney-based contract manufacturer of vitamins and health products with a portfolio of its own brand products and distribution capabilities Established revenue-generating business Clear path to profitability $38.8M in
Slide 6: Corporate Overview
CORPORATE OVERVIEW For personal use only • TGA licensed manufacturing facility in Sydney • Contract manufacturing capabilities for a broad range of vitamin and wellness brands. • In-house R&D capabilities to develop new products • Multiple distribution channels: • Wholesaler distributors – China, Vi
Slide 7: COVID-19 Update
COVID-19 UPDATE For personal use only COVID-19 had minimal impact on operations • Maintained staff numbers • Continuous operations at Smithfield facility • No facility closure Increased demand for health and wellness products • COVID-19 had heightened awareness for specific health products among con
Slide 8: FY2020 in Review
For personal use only FY2020 IN REVIEW 7
Slide 9: FY2020 Snapshot
FY2020 SNAPSHOT For personal use only REVENUE EBITA (exc. significant one-off costs) $38.8M $1.8M +81% on FY19 $0.3M in FY19 NEW STRATEGIC TRANSITIONING INVESTOR: STRATEGY GOLDENMAX Focus on high value contract $33.32M placement manufacturing 8
Slide 10: FY2020 Activities
FY2020 ACTIVITIES For personal use only Key activities in FY2020 Transition and implementation of contract manufacturing strategy • Higher margins (7% vs 5% retail division) Growth in new contracts • 14 new OEM clients worth approx. $1M+ • Orders from new clients and increased orders from existing c
Slide 11: FY2020 Results
FY2020 RESULTS For personal use only Revenue FY15 – FY20 Company revenue up 81% Revenue breakdown: A$ ‘000 • 66% from online platform sales (e-commerce & retail) 34% p.a CAGR • 19% contract manufacturing • 15% from own brand sales Strong performance from each division • Star Combo revenue up 19% • F
Slide 12: Current Operations
For personal use only CURRENT OPERATIONS 11
Slide 13: Integrated Business Model
INTEGRATED BUSINESS MODEL For personal use only There are currently six companies in the Star Combo Pharma Limited group Star Combo Pharma Ltd ASX:S66 Costar Pharma Star Combo Australia Austoyou.com Koala Mall Chinese subsidiary Laboratory Own product brands: Services include contract • Costar Austr
Slide 14: Current Manufacturing Facility
CURRENT MANUFACTURING FACILITY For personal use only Current manufacturing facility at Smithfield, Sydney Key facility facts: • A 15,000m² purpose-built facility - established in 2004 with the capacity to expand production significantly • Commercialisation of 26 new formulations in 2020, with more i
Slide 15: Own Brands & Product Portfolio
OWN BRANDS & PRODUCT PORTFOLIO For personal use only Star Combo owns four branded vitamin and health supplement brands: Living Healthy, Costar, Amax and J&K. All Living Costar Amax J&K manufactured at the Smithfield facility. Healthy Overview of products Health Health Supplements Skincare and supple
Slide 16: B2C Touchpoints: E-commerce & Retail Stores
B2C TOUCHPOINTS: E-COMMERCE & RETAIL STORES For personal use only Austoyou.com e-commerce platform • E-commerce platform provides direct access to Chinese consumers, with over 5,000 product lines (includes non-S66 products) • Star Combo products available on AustoYou.com since May 2019 • Supports B2
Slide 17: Growth Strategy – Pillars
GROWTH STRATEGY – 6 PILLARS For personal use only Strengthen focus on R&D • Commercialise new products for clients, via contract manufacturing and OEM service • Establish in-house testing laboratory function Invest in production capacity • 13 new production lines to be set up to improve production t
Slide 18: OEM Expansion Strategy
For personal use only OEM EXPANSION STRATEGY 17
Slide 19: Growth Strategy: Contract Manufacturing (OEM)
GROWTH STRATEGY: CONTRACT MANUFACTURING (OEM) For personal use only Aim: To become Australia’s market leader in the health supplement manufacturing sector Contract manufacturing competency with focus on OEM • Operational since 2004, long history of revenue-generation and recognised in the industry •
Slide 20: Capital Investment from Goldenmax
CAPITAL INVESTMENT FROM GOLDENMAX For personal use only Significant investment expedites Star Combo Pharma’s growth strategy to become Australia’s market leader in the health supplement manufacturing sector Investment plan A$M Expand manufacturing facility at current location ~11 New site developmen
Slide 21: Manufacturing Capabilities Expansion
MANUFACTURING CAPABILITIES EXPANSION For personal use only Transformational investment into Smithfield manufacturing facility (expected completion Sep Pathway to return to 2022) profitability • Substantial investment to enhance production to facilitate contract manufacturing plans • $5M to upgrade e
Slide 22: Manufacturing Capabilities Expansion - Timeline
MANUFACTURING CAPABILITIES EXPANSION - TIMELINE For personal use only Expected timeline Key features of completed upgraded site Activity Date Progress • TGA-licensed Commencement of acquiring 13 Sep 2020 ✓ • GMP compliant new production lines • NSW Food Authority compliant Commencement of upgrading
Slide 23: Looking Ahead: FY21 & Beyond
LOOKING AHEAD: FY21 & BEYOND For personal use only Contract manufacturing • Contract manufacturing revenue was 23% of total Q1 FY21 revenue (vs 19% in FY20) strategy on track • New agreement with Chemist warehouse signed – first orders received • Expedited growth strategy from capital investment fro
Slide 24: Thank You
For personal use only Investor relations Su Zhang, CEO investors@starcombo.com.au THANK YOU 23
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