Star Combo Pharma Ltd. · ASX:S66
Star Combo Pharma — Non-Deal Roadshow (September 2020)
20 slides from Star Combo Pharma's roadshow presentation, Sep 8, 2020
Slide 1: Investor Roadshow Presentation September 2020
For personal use only ASX: S66 INVESTOR ROADSHOW PRESENTATION September 2020
Slide 2: 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 3: FY20 Results
For personal use only FY20 RESULTS 3
Slide 4: Star Combo Pharma Snapshot
STAR COMBO PHARMA SNAPSHOT For personal use only Star Combo Pharma (ASX:S66) is a Sydney- REVENUE EBITA (exc. significant based contract manufacturer of vitamins one-off costs) $38.8M $1.8M and beauty products with a portfolio of own brands and distribution capabilities +81% on FY19 $0.3M in FY19 •
Slide 5: FY20 Results & Highlights
FY20 RESULTS & HIGHLIGHTS For personal use only Revenue FY15 – FY20 FY20 activities • $33.32M private placement via Goldenmax • Shenzhen-listed company; Market cap of CNY 6 billion • Pharma division in China – access to sales/marketing 34% p.a CAGR expertise and distribution network • Minimal COVID-
Slide 6: Current Operations
For personal use only CURRENT OPERATIONS 6
Slide 7: Corporate Overview
CORPORATE OVERVIEW For personal use only Star Combo Pharma (ASX:S66) is a Sydney-based contract manufacturer of vitamins and beauty products with a portfolio of 1 Year Share Price Chart own brands and distribution capabilities • Founded in 2004 and listed in May 2018 $0.50 • TGA licensed manufacturi
Slide 8: 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 Owned product brands: Services include contract • Costar Aus
Slide 9: 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 capacity to expand production significantly • Commercialisation of 26 new formulations in 2020 with more in the
Slide 10: Owned Brands & Product Portfolio
OWNED 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 manufactured at Living Costar Amax J&K Smithfield facility. Healthy Overview of products Health Health Supplements for Skincare and supp
Slide 11: B2C Touchpoints: E-commerce & Retail Stores
B2C TOUCHPOINTS: E-COMMERCE & RETAIL STORES For personal use only Austoyou.com e-commerce platform (acquired Feb 2019) • E-commerce platform provides direct access to Chinese consumer sales pipeline, with over 5,000 product lines (includes non-S66 products) • First Star Combo products available on A
Slide 12: 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 ODM service • Establish in-house testing laboratory function Invest in production capacity • 13 new production lines to be set up to improve production t
Slide 13: OEM Expansion Strategy
For personal use only OEM EXPANSION STRATEGY 13
Slide 14: Growth Strategy: Contract Manufacturing
GROWTH STRATEGY: CONTRACT MANUFACTURING 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 Licenses & approvals • TGA, GMP and da
Slide 15: 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 16: Expansion of Manufacturing Capabilities
EXPANSION OF MANUFACTURING CAPABILITIES For personal use only ~$11M transformational investment into Smithfield manufacturing facility Pathway to return to • Substantial investment to enhance production to facilitate profitability contract manufacturing plans • $5M to upgrade existing facility • $6M
Slide 17: Expansion of Manufacturing Capabilities - Details
EXPANSION OF MANUFACTURING CAPABILITIES - DETAILS For personal use only Expansion of production capacity set to increase volume and range of products for OEM clients • 13 new production lines set to increase manufacturing capabilities • Equivalent to approx. 300% increase in production capacity • Ap
Slide 18: Expansion of Manufacturing Capabilities - Timeline
EXPANSION OF MANUFACTURING CAPABILITIES - TIMELINE For personal use only Expected timeline Key features of completed upgraded site Activity Date • TGA-licensed Commencement of acquiring 13 new Sep 2020 • GMP compliant production lines • NSW Food Authority compliant Commencement of upgrading existing
Slide 19: Why Invest in Star Combo Pharma?
WHY INVEST IN STAR COMBO PHARMA? For personal use only Established revenue- • 16 years of operation generating business • Revenue-generating business with vertical business model; control over supply chain • Expedited growth strategy from capital investment from strategic investor Clear growth strat
Slide 20: Thank You
For personal use only Su Zhang – CEO suzhang@starcombo.com.au Investor relations investors@starcombo.com.au THANK YOU 20
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