Lark Distilling Co. Ltd. · ASX:LRK
Lark Distilling — Investor Presentation (September 2020)
17 slides from Lark Distilling's investor presentation, Sep 18, 2020
Slide 1: Capital Raising Presentation
Capital Raising Presentation 18 September 2020 Lark Distilling Co. Limited
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Important information Past performance information (including past share price performance of LARK) given in this presentation is given for illustrative The information contained in this presentation dated 18 September 2020 has been prepared by Lark Distilling Co. Lim
Slide 3: Executive Summary
EXECUTIVE SUMMARY FUNDING REQUIRED TO HIT TARGET OF 1.5 MILLION LITRES UNDER MATURATION BY END OF F22 BRAND AND BARRELS – “THE ROAD TO WHISKY RICHES” Whisky Under Maturation at 30 June 2020 - 711,313 Litres - $16.7 million Cost - $99.0 million Market Value Lark Has Meaningful Scale in Terms of Rev
Slide 4: Recap on Strategy Roadmap and Progress to Date
RECAP ON STRATEGY ROADMAP AND PROGRESS TO DATE 1. Understand The Whisky Landscape - Domestic and Abroad ✔️ Completed in F20 2. Clean Up The Mess / Reset The Foundations ✔️ Completed in F20 3. Define and Articulate a Proven Strategy That Maximises Shareholder Value ✔️ Completed in F20 4. Build “Lark”
Slide 5: Lark at a Glance
LARK AT A GLACE Net Sales ($m) Forecast to Double in F21 Geoff Bainbridge – CEO $14.0 10+ Years at Fosters / Ex-MD Spirits $12.0 Ex-Founder of Grill’d, Bounce $10.0 $8.0 $6.0 David Dearie $4.0 Independent Non-Exec Chair $2.0 Ex-CEO Treasury Wine Estates $- F18A F19A F20A F21F DIRECT SELLING
Slide 6: What Is Going to Drive the Share Price in F21?
WHAT IS GOING TO DRIVE THE SHARE PRICE IN F21 ? 1. F21 Maiden Profit (EBITDA) Driven by E-Commerce and Direct Mainland Sales 2. Continued Increase in Whisky Under Maturation 3. Launch Lark Portfolio Strategy To Address Multiple Occasions and Multiple Price Points 4. Reboot Of Forty Spotted Gin 46% S
Slide 7: F21 Share Price Drivers
F21 SHARE PRICE DRIVERS REVENUE MOMENTUM WITH COST CONTROL DRIVING PROFIT Revenue Forecast to Grow by Over 100% in F21 E-Commerce Sales in First Two Months of F21 Are More Than All of F20 at a 6 Fold Increase New Limited Online Releases Are Selling Out Within Hours / Days Lark Symphony No1 T
Slide 8: F21 Share Price Drivers: Maturation Asset
F21 SHARE PRICE DRIVERS SIGNIFICANT MATURATION ASSET TO BE MONETISED We Are Presently Making Approx. 4,300 litres per Week @ 63.4% ABV Since 1 July 2019 Increase on Litres Under Maturation 54% to 711,313 Litres Represents The Equivalent of $1.81 Per Share in Whisky Inventories 1.16m Litres Und
Slide 9: Lark Portfolio: Multiple Occasions / Multiple Price Points
F21 SHARE PRICE DRIVERS LARK PORTFOLIO: MULTIPLE OCCASIONS / MULTIPLE PRICE POINTS SYMPHONY Series Classic Cask Range Ltd Release Series Rare Cask Series 1 x Annual Release 3 x Core Range & Monthly Release Schedule FREQUENCY 2 – 3 Releases Per Year every July 1-2 Ltd. Releases Per Year (up to12 per
Slide 10: Forty Spotted Gin Summer'20 Reboot
F21 SHARE PRICE DRIVERS FORTY SPOTTED GIN SUMMER’20 REBOOT – PACK / PRICE / VARIANTS 10
Slide 11: Equity Raising Overview
EQUITY RAISING OVERVIEW ▪ A non-underwritten institutional placement of up to $8.9 million (“Placement" or "Offer"). Offer Structure ▪ Up to 8.1 million new fully paid ordinary shares in Lark ("New Shares") to be issued under the Placement, representing up to 14.8% of existing Lark shares on issue.
Slide 12: Sources and Uses of Funds
SOURCES AND USES OF FUNDS Over the past 12 months Lark has successfully put in place the building blocks of its vision. The Capital Raising will assist Lark to continue on the path to becoming a globally consumed, recognized and loved Tasmanian Icon Sources $ million Equity raising $8.9 Total $8.9 U
Slide 13: Pro Forma Balance Sheet
PRO FORMA BALANCE SHEET Offer Balance Sheet ($’000’s) June 2020 Pro-Forma Proceeds Assets Cash at Bank and On Hand 6,119 8,457 14,576 Deferred Tax 0 0 Other Assets 40,178 40,178 Total Assets 46,297 8,457 54,754 Total Liabilities 8,920 8,920 Net Assets 37,377 8,457 45,834 Equity Share Capital / Reser
Slide 14: Offer Timetable
OFFER TIMETABLE Event Date Trading Halt 9:00am, Thursday, 17 September 2020 Placement Offer opens 10:00am, Thursday, 17 September 2020 Placement Offer closes 4:00pm, Thursday, 17 September 2020 Completion of the Equity Raising announced Friday, 18 September 2020 Settlement of Placement Tuesday, 22 S
Slide 15: Foreign Selling Restrictions
FOREIGN SELLING RESTRICTIONS This document does not constitute an offer of new ordinary shares of LARK ("New Shares") in any Please note that this document is not a regulated document. In particular, this document is not a jurisdiction in which it would be unlawful. In particular, this document may
Slide 16: Key Risks
KEY RISKS Effect of COVID-19 Product liability The COVID-19 pandemic has had and continues to have an impact on LARK's business and the food and LARK may not be able to obtain product liability insurance, or may not be able to obtain such insurance beverage sector across Australia. In particular, Au
Slide 17: Key Risks Cont.
KEY RISKS CONT. Macroeconomic and socioeconomic factors The performance of LARK will continue to be influenced by the overall condition of the economy in Australia and any deterioration in employment or economic growth could adversely affect LARK's business. In light of recent Australian and global
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