Hydration Pharmaceuticals Company Limited · ASX:HPC
Hydration Pharmaceuticals — The Hydration Pharmaceuticals Company — Shareholder Meeting (May 2023)
18 slides from Hydration Pharmaceuticals's shareholder meeting presentation, May 5, 2023
Slide 1: Our purpose and ambition: own hydration in the family home
1 For personal use only Low Sugar More Electrolytes Our purpose To make better hydration solutions and Hydration make a difference doing it Acceleration Formula Our ambition To own hydration Doctor Approved, in the family home Rapid Rehydration
Slide 2: An experienced Board, management and advisory team
2 An experienced Board, management and advisory team D isciplined governance and extensive expertise in growing consum er products com panies For personal use only Oliver Baker George Livery Adem Karafili Gretta Van Riel CEO Chairman NED NED Former General Manager of Former Director of Strategy & Fo
Slide 3: A North American focused company with Australian heritage
3 A North American focused company with Australian heritage For personal use only Founded in Australia 2001 with liquid products HYDRALYTE GLOBAL TERRITORIES Powder products launched 2006 Tablet format products launched Hydralyte North America 2010 (ASX: HPC) 2012 Launch in Canada 2014 Formation of
Slide 4: Corporate overview
4 Corporate overview Corporate snapshot Major shareholders (as at 3 February 2023): For personal use only ASX code: HPC Woobinda Nominees Pty Ltd (Mr Dan O’Brian) 9.16% Shares on issue: 163.8m HSBC Custody Nominees (Australia) Limited 8.73% Market capitalisation (at $0.062 per share): ~A$10.2m Super
Slide 5: Overview and investment highlights
5 Overview and investment highlights Established market presence, significant sales growth and proven star in Canada. For personal use only Established operations Significant Sales Growth Proven Canadian business • Strong sales growth across all • FY222 revenue hits ~US$9.1m • #2 Hydration brand in
Slide 6: FY2022 Financial Highlights (and Jan Record)
6 FY2022 Financial Highlights (and Jan Record) For personal use only Total FY2022 revenue: Q4 FY2022 revenue: FY22 Gross margin: US$9.09m US$2.52m 52% é é é é +49% on PCP é +45% on PCP é +6% on PCP (unaudited) Amazon US subscriber growth: Canadian retail sales: Record Sales in Jan Up 108% é Up 69% é
Slide 7: Revenue growth continues despite reduction in marketing expenditure
7 Revenue growth continues despite reduction in marketing expenditure Trailing 12 month net sales For personal use only • Trailing 12 month revenue of US$9.7m up 36% on same period last year 12 ,000 • Q1 FY2023 revenue growth driven by: • Sales to Canadian retailers: up 63% on PCP to US$1m 10 ,000 •
Slide 8: Q1 FY2023: 44% decrease in cash used with 34% revenue growth
8 Q1 FY2023: 44% decrease in cash used with 34% revenue growth For personal use only • Q1 FY2023 highlighted a 44% reduction in net cash Net expenditure Q4 FY2022 vs Q1 Net sales vs net cash expenditure used in operating activities compared to last quarter FY2023 (US$m) Q1 FY23 vs Q1 FY22 (US$m) $2.
Slide 9: Functional beverage companies command high multiples
9 Functional beverage companies command high multiples Extensive M & A in recent years highlights the growing dem and for established com panies sim ilar to For personal use only Liquid IV Nuun License for Hydralyte Australia/NZ Pure Boost • US-based health science, nutrition • US-based consumer goo
Slide 10: Canada alone presents a major market opportunity with huge US upside potential
10 Canada alone presents a major market opportunity with huge US upside potential Canadian category has doubled in size – led by Pedialyte (m arket leader) and H ydralyte Canadian m arket is undersized and will grow organically – providing significant opportunity For personal use only US Hydration c
Slide 11: Bricks & Mortar highlights: Growth with Canada's leading pharmacy chain
11 Bricks & Mortar highlights: Growth with Canada’s leading pharmacy chain Shoppers Drug Mart retail sales last 4 years ($CAD) For personal use only • Shoppers Drug Mart is Canada’s number one pharmacy chain • YTD sales grew 135% with the group on the prior quarter Shay M it • March 2023 saw peak su
Slide 12: International expansion opportunities and UK sales upside
12 International expansion opportunities and UK sales upside Wholefoods London Amazon UK sales growth For personal use only • Sales opportunities outside North America being pursued • Products now being sold in leading retailers Wholefoods and Chemist Warehouse across expanding USA stores • Amazon U
Slide 13: Gross margin remains strong
13 Gross margin remains strong For personal use only Gross margin • Gross margin of 48% in Q1 FY2023 • Slightly decreased on last quarter (Q4 FY2022: 49%) due to air freight costs and increased inventory reserves prior to peak sales period in North American summer Include updated graph • Product pro
Slide 14: Partnership with brand ambassador and co-owner, Shay Mitchell
14 Partnership with brand ambassador and co-owner, Shay Mitchell • Ms Mitchell is a Canadian Actress and entrepreneur with ~35.4m Instagram followers For personal use only • Co-branded product launched in December 2022 through HPC ecommerce channels and Amazon USA – with Canadian launch pending • Fo
Slide 15: Major product launches planned for Q2 FY2023
15 Major product launches planned for Q2 FY2023 expected to deliver additional sales #1 SKU launch of 2022 was Hydralyte Liver Detox which delivered ~US$300,000 of incremental sales, For personal use only now sells $3k per day Best selling stick pack Shay Mitchell Lemon Launching imminently in bulk
Slide 16: Thank You
Thank You For personal use only Stay Hydrated Contact: Oliver Baker Chief Executive Officer Oliver.baker@ hydraly te.com H enry Jordan Six Degrees Investor Relations H enry.jordan@ sdir.com.au +61 (0) 431 271 538
Slide 17: Appendix 2: Product health benefits
Appendix 2: Product health benefits For personal use only Hydralyte is the most advanced rapid rehydration Rapid Rehydration Requires Sugar. We Only Use What solution in the market designed for the whole family. is Needed. Nothing More. With more electrolytes and less sugar, Hydralyte can be used da
Slide 18: Appendix 3: Product Range
Appendix 3: Product Range HydraLyte is now leading industry innovation. Intersection of daily rehydration and drinkable vitamins For personal use only ORIGINAL RAPID REHYDRATION HYDRATION PLUS 2 in 1 Best Selle r! Ready to Liver Support Portable, Stick-style drink compact packets tablets Product Hyd
The Hydration Pharmaceuticals Company — Shareholder Meeting (May 2023) on 6ix