Ezz Life Science Holdings Ltd. · ASX:EZZ
Ezz Life Science — H1 FY2022 Earnings Presentation
28 slides from Ezz Life Science's earnings presentation, Mar 16, 2022
Slide 1: 1H FY22 Results Presentation
1H FY22 Results Presentation Wednesday, 16 March 2022
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by EZZ Life Science Holdings Limited ACN 608 363 604 (Company). By accepting a copy of this document you warrant and undertake to the Company that you agree to be bound by the terms and conditions set out below. This document is not a prospectus, product di
Slide 3: Agenda
AGENDA Section Topic Presenter Page 1 Executive summary Mark Qin, Interim CEO, COO and co-founder 01 – 03 2 Company overview Mark Qin, Interim CEO, COO and co-founder 04 – 07 3 Financial information Anthony Guarna, CFO 08 – 12 4 Growth strategy Mark Qin, Interim CEO, COO and co-founder 13 – 17 5 Out
Slide 4: 1. Executive Summary
1. EXECUTIVE SUMMARY Mark Qin, Interim CEO, COO and co-founder, EZZ Life Science Holdings Limited Section Topic Page 1.1 Operating and financial overview 01 1.2 Value creating strategy 02 1.3 Delivering returns to shareholders 03
Slide 5: 1.1 Operating and Financial Overview
1.1 OPERATING AND FINANCIAL OVERVIEW Revenue EBITDA 1 NPAT EPS $6.2M $0.1M $0.1M 0.24c Down by 50.5% from 1H FY21 Down by 95.6% from 1H FY21 Down by 91.8% from 1H FY21 Down by 94.1% from 1H FY21 Gross Margin Cash & Cash Equivalents Debt 2 Interim Dividend Per Share 47.9% $8.9M Nil Nil Down from 58.1
Slide 6: 1.2 Value Creating Strategy
1.2 VALUE CREATING STRATEGY Enable new verticals through value-accretive opportunities Capture growth opportunities through entrepreneurial initiatives Strengthen existing operations through performance excellence 02
Slide 7: 1.3 Delivering Return to Shareholders
1.3 DELIVERING RETURN TO SHAREHOLDERS Employ strong management teams to drive long-term earnings growth, and deploy best practice principles in operational execution. Continuously improve working capital efficiency. Ensure a highly disciplined approach in capital expenditure, and invest only in oppo
Slide 8: 2. Company Overview
2. COMPANY OVERVIEW Mark Qin, Interim CEO, COO and co-founder, EZZ Life Science Holdings Limited Section Topic Page 2.1 Who we are 04 2.2 What we do 05 2.3 Our history 06 2.4 Share information 07
Slide 9: 2.1 Who We Are
2.1 WHO WE ARE An Australian life science company Vision Improve quality of life and human health Mission Become one of top life science companies within Australia and New Zealand Values Accelerate innovation to market 04
Slide 10: 2.2 What We Do
2.2 WHAT WE DO We formulate, produce, market and distribute health supplements under the We are an exclusive wholesale distributor of skin care products under the brand of EZZ, with a focus on products with significant demand from the EAORON brand in Australia and New Zealand to pharmacies, supermar
Slide 11: 2.3 Our History
2.3 OUR HISTORY Started operations as a Commenced development, Became an exclusive Listed on the Australian Continue to grow … wholesale distributor of the production and marketing distributor of the EAORON Securities Exchange EAORON branded of the EZZ branded health branded products in (ASX) via an
Slide 12: 2.4 Share Information
2.4 SHARE INFORMATION Share Information ASX code: EZZ Close on 11 March 2022 $0.32 Shares on Issue: 42.8M Market capitalisation on 11 March 2022 $13.3M 52-week price range: $0.300-$0.965 Top Five Shareholders Macquarie Holdings Pty Ltd 39.8% JNJ Mok Pty Ltd 26.5% Yong Cao 4.1% Haitao Zheng 1.1% Jing
Slide 13: 3. Financial Overview
3. FINANCIAL OVERVIEW Anthony Guarna, CFO, EZZ Life Science Holdings Limited Section Topic Page 3.1 Revenue 08 3.2 Gross margin 09 3.3 Financial position 10 3.4 Working capital 11 3.5 Cash flows 12
Slide 14: 3.1 Revenue
3.1 REVENUE Revenue of EZZ branded products from domestic markets increased, while The revenue of total EZZ revenue brandeddecreased for adomestic products from number of reasons: markets increased, while total revenue decreased for a number of reasons: cooling down of Tmall Global’s transaction v
Slide 15: 3.2 Gross Margin
3.2 GROSS MARGIN Gross margin decreased from 58.1% to 47.9% due to the revenue mix towards The gross the EZZ branded margin decreased products from 58.1% with a to 47.9% lower duemargin. to the revenue mix towards the EZZ branded products with a lower margin. The average gross margin on the EZZ br
Slide 16: 3.3 Financial Position
3.3 FINANCIAL POSITION The Company allowed for balance sheet flexibility to act when opportunities Allowed arisesheet for balance maintained balance flexibility sheet strength to act when with: opportunities arise and maintained balance sheet strength with: a strong cash position of $8.9 million,
Slide 17: 3.4 Working Capital
3.4 WORKING CAPITAL Working capital is well maintained to support revenue growth. Our working capital is well maintained to support revenue growth. Trade and other receivables dropped due to the decrease Trade andin sales. other receivables dropped due to the decrease in sales. Inventory incre
Slide 18: 3.5 Cash Flows
3.5 CASH FLOWS Cash Flows Cash Flows Cash Flows from Operation from Investing from Financing +$7.3M +0.1M $8.9M $8.9M -$7.0M -$0.0M -$0.1M -$0.0M -$0.1M -$0.2M -$0.0M Cash,30 Receipts from Government Payments to InterestPaid Income Tax Paymentfor Paymentof Dividends Movementin Cash, 31 June 2021 Cus
Slide 19: 4. Growth Strategy
4. GROWTH STRATEGY Mark Qin, Interim CEO, COO and co-founder, EZZ Life Science Holdings Limited Section Topic Page 4.1 Strategic focus 13 4.2 Research and development 14 4.3 Manufacturing 15 4.4 Sales and marketing 16 4.5 Technology 17
Slide 20: 4.1 Strategic Focus
4.1 STRATEGIC FOCUS Science Technology People Consumers Product development Online store and data Ongoing investment in Creating greater brand pipeline to increasingly backed analytical capability people and talent to awareness through omni- feature healthcare solutions to enable data driven support
Slide 21: 4.2 Research and Development
4.2 RESEARCH AND DEVELOPMENT Applications Supplements Precision nutrition Areas Longevity Human papillomavirus Weight management Helicobacter pylori Technology Genomics Enzyme 14
Slide 22: 4.3 Manufacturing
4.3 MANUFACTURING A decision has been made to accelerate the plan to have good manufacturing practice (GMP) compliant manufacturing facility by the end of 2022. Enhance control over end-to-end supply Improved operational efficiency chain Reduce material and production costs EBITDA growth over and ab
Slide 23: 4.4 Sales and Marketing
4.4 SALES AND MARKETING Region Brand Online E-commerce E-retailer Grocery Speclist Pharmacy / Supermarkets / Store Platform Retailer Retailer Chemist Hypermarkets There are more than 980 distribution points for the EAORON branded products and more than 1,280 Australia & EZZ distribution channe
Slide 24: 4.5 Technology
4.5 TECHNOLOGY Invest in future growth through the ongoing development of technology capacity, expansion of in- house e-commerce capability and data backed analytical capability to enable data driven decision making and unlock scale efficiencies. Invest in future growth through the ongoing developme
Slide 25: 5. Outlook
5. OUTLOOK Mark Qin, Interim CEO, COO and co-founder, EZZ Life Science Holdings Limited Section Topic Page 5.1 Outlook 18
Slide 26: 5.1 FY22 Outlook
5.1 FY22 OUTLOOK New distribution points 7,000+ Growth in new jurisdictions Growth with new distribution points SKUs 10+ Growth with new products Growth by acquisition 18
Slide 27: Q&A
Q&A
Slide 28: EZZ Life Science Holdings Limited
EZZ LIFE SCIENCE HOLDINGS LIMITED [ASX: EZZ] EZZ Life Science Holdings Limited ABN 83 608 363 604 104 Derby Street, Silverwater NSW 2128 T: 02 9160 2305 E: ir@ezzlife.com.au EZZLifescience linkedin.com/company/ez EZZAustralia EZZ_Australia www.ezzlife.com.au z-life-science-holdings
EZZ Life Science Holdings — H1 FY2022 Earnings Presentation on 6ix