Elixinol Wellness Ltd · ASX:EXL
Elixinol Wellness — Elixinol Global — Investor Presentation (September 2018)
25 slides from Elixinol Wellness's investor presentation, Sep 6, 2018
Slide 1: Elixinol Global Limited Investor update: September 2018
For personal use only DRAFT Elixinol Global Limited Investor update: September 2018 ASX: EXL | www.elixinolglobal.com
Slide 2: Disclaimer
Disclaimer This presentation contains summary information about Elixinol Group Limited (Elixinol) and its subsidiaries and their activities. The information in this For personal use only presentation does not purport to be complete. It should be read in conjunction with Elixinol’s other periodic and
Slide 3: Investment highlights
Investment highlights • Elixinol Global (ASX: EXL) listed in January 2018 with strong institutional support For personal use only • EXL is a diversified business with two established consumer product brands in fast growing markets: • Elixinol – US based seller of cannabidiol-based dietary supplement
Slide 4: Board and management team and market data
Board and management team and market data A senior team, experienced in complex regulatory operating environments For personal use only Board and management team Elixinol Global (ASX: EXL) market data Andrew Duff | Non-Executive Chairman Share price1 $1.50 Experienced ASX listed company director. Ex
Slide 5: Diversified portfolio
Diversified portfolio 1H FY2018 revenue by business unit For personal use only Consumer Products Pharmaceutical Dietary Supplements Hemp Foods Medicinal Cannabis Revenue $12.54m (84%) Revenue $2.34m (16%) Seeking licence and permit Submitted licence applications for cultivation and manufacture to Au
Slide 6: Diversified across three rapidly growing markets
Diversified across three rapidly growing markets Businesses positioned within major growth themes For personal use only Hemp derived CBD – US market Hemp derived foods – global market Medicinal cannabis – Australian size and projections size and projections+ market projections Developing multi-billi
Slide 7: Hemp and cannabis – rapidly evolving landscape
Hemp and cannabis – rapidly evolving landscape A tide of change is sweeping through hemp and cannabis industries, led by global governments For personal use only 2018 onwards Hemp industry awaits 2014 US Farm Bill signing Agricultural Act of 2017 2014 (Farm Bill) Hemp as a food passed, authorising l
Slide 8: Hemp and cannabis – rapidly evolving landscape
Hemp and cannabis – rapidly evolving landscape A tide of change is sweeping through hemp and cannabis industries, led by global governments For personal use only 2018 onwards Hemp industry awaits 2014 2014 US Farm Bill signing Agricultural Act of Elixinol starts 2017 2014 (Farm Bill) trading in the
Slide 9: Key financial highlights for 1H FY2018
Key financial highlights for 1H FY2018 1 Revenue 1H FY2018 $14.9m vs 1H FY2017 $7.1m, 110% growth H1 FY18 – EXL isUnderlying positioned for strong, EBITDA continued growth 1H FY2018 $0.8m vs 1H FY2017 ($0.1)m loss For personal use only Group results 1H FY2018 Underlying NPAT 1H FY2018 $0.6m vs 1H FY
Slide 10: Strong growth trajectory across key metrics
Strong growth trajectory across key metrics EXL has maintained a strong growth trajectory and delivered a maiden profit in 1H FY2018 For personal use only Revenue Underlying EBITDA ($m) A$ million, 31 December year end 1H A$ million, 31 December year end 1H 16.5 2H 2H 9.4 0.8 14.9 110% 7.1 0.02 0.10
Slide 11: Revenue growth by consumer products segment
Revenue growth by consumer products segment Growth across all revenue segments with a clear strategy to drive higher margin products For personal use only Elixinol USA Hemp Foods Australia A$ million, 31 December year end 1H FY2017 A$ million, 31 December year end 1H FY2017 1H FY2018 1H FY2018 5.0 2
Slide 12: Elixinol Global 1H FY2018 growth initiatives
Elixinol Global 1H FY2018 growth initiatives Disciplined approach to drive future growth For personal use only • Investment in farming and production capabilities to facilitate future growth • Key sales hires focused on retail distribution which is higher margin • Continued focus on core products an
Slide 13: Elixinol Global international footprint
Elixinol Global international footprint An established platform that can be leveraged for consumer products For personal use only Global platform for growth • Avenues to market established in 40 countries with mix of direct sales and via distribution partners • Facilities (pins) in: • Sydney and Ban
Slide 14: Elixinol USA: positioned for future growth
Elixinol USA: positioned for future growth Increased capacity and product development to drive earnings and margin improvement For personal use only • Elixinol USA is relocating to a new facility in Colorado, USA, designed to be GMP certified and will more than double the usable capacity for process
Slide 15: Elixinol USA: focus for next months
Elixinol USA: focus for next 12 months Focus on strong growth in home markets, new product development and marketing For personal use only • Grow market share in US; deliver growth in attractive markets (Europe, Asia) • Scale teams to support expanded business • Deploy and optimize new US-based plan
Slide 16: Hemp Foods Australia: industry leader
Hemp Foods Australia: industry leader Focus on growth of core products and new product offerings For personal use only • Core product range includes hemp oils, flours, seeds, protein • currently sold via e-commerce and health food shops • Hemp Foods Australia supplying to major FMCG brands including
Slide 17: Hemp Foods Australia: focus for next months
Hemp Foods Australia: focus for next 12 months Strong growth in Australia, driving raw and finished product sales via multi-channel approach For personal use only • Grow Australian market share and secure top 1 position for hemp food branded products • Select Hemp Foods Australia owned brands to be
Slide 18: Elixinol Australia (medicinal cannabis)
Elixinol Australia (medicinal cannabis) Advanced development plans are prepared For personal use only • Strategy to enter Australian medicinal cannabis market and develop export capability • Submitted licence applications for cultivation and manufacture to the Office of Drug Control (ODC) in Awaitin
Slide 19: Strategic outlook: delivering on our corporate strategy
Strategic outlook: delivering on our corporate strategy Capturing substantial global growth opportunity in hemp-CBD and medicinal cannabis For personal use only FY2021 • Global top 3 leadership FY2020 position in CBD FY2019 • Globally diversified, consumer products vertically integrated CBD consumer
Slide 20: For more information
For personal use only For more information: Paul Benhaim Ron Dufficy Chief Executive Officer Chief Financial Officer DRAFT paul@elixinolglobal.com ron.dufficy@elixinolglobal.com +61 407 767 709 +61 428 881 718
Slide 21: Appendix
For personal use only Appendix DRAFT
Slide 22: Financial summary
Financial summary Growth across all revenue segments to achieve maiden profit For personal use only 1H 1H Commentary ($m) FY2018 FY2017 Revenue • growth across all revenue segments has enabled Elixinol Group Revenue 14.9 7.1 revenues to increase 110% vs PCP Cost of goods sold (6.5) (2.6) • dietary s
Slide 23: Cash flow
Cash flow Re-investment to facilitate expected future growth For personal use only 1H 1H Commentary ($m) FY2018 FY2017 Operating cash flow • working capital expenditure to facilitate expected future Operating activities (1.3) (1.2) growth • deposits to secure raw material for FY2019 harvest • income
Slide 24: Strong financial position
Strong financial position Strong cash position and minimal debt For personal use only 30 June 31 Dec Commentary ($m) 2018 2017 Current assets Strong cash position Cash and cash equivalents 14.2 18.8 • strong cash position of $14.2m Trade & other receivables 1.8 1.2 • increase in inventories to suppo
Slide 25: Reconciliation to 1H FY2018 underlying EBITDA and NPAT
Reconciliation to 1H FY2018 underlying EBITDA and NPAT For personal use only ($m) 1H FY2018 Statutory NPAT 0.1 Tax expense 0.2 Depreciation & amortisation 0.4 Interest income/finance costs (0.2) Statutory EBITDA 0.6 Share based payment expense 0.2 Underlying EBITDA 0.8 Statutory NPAT 0.1 Share based
Elixinol Global — Investor Presentation (September 2018) on 6ix