Elixinol Wellness Ltd · ASX:EXL
Elixinol Wellness — Elixinol Global — Shareholder Meeting (May 2018)
47 slides from Elixinol Wellness's shareholder meeting presentation, May 15, 2018
Slide 1: AGM presentation, May 2018
For personal use only DRAFT Elixinol Global Limited AGM presentation, May 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 For personal use only Publicly listed on Australian Securities Exchange (ASX) with ticker code: EXL in January 2018, with strong institutional interest Diversified global business: • Elixinol USA: CBD-based dietary supplements products business with A$13.3m revenues in FY2017.
Slide 4: Investment highlights (continued)
Investment highlights (continued) For personal use only • Vertically integrated: cultivation, manufacturing, distribution and sales channels within each business • Strongest revenue position of all ASX-listed cannabis stocks • Established solid revenue trajectory – proven track record with three yea
Slide 5: For personal use only
For personal use only Page 5 Company Presentation February 2018
Slide 6: Elixinol's Addressable Markets
Elixinol’s Addressable Markets Global markets – $700bn+ market potential by 2025 For personal use only Dietary Supplements Organic Food & Medicinal Cannabis Market1 Beverage Market2 Market3 4 Expected to reach Expected to reach Valued up to $278 b $320.5 b $98.5 b By 2024 (USD) By 2025 (USD) by 2025
Slide 7: Elixinol Global Segment Channels
Elixinol Global Segment Channels The Elixinol Group operates in three distinct segments within the industrial hemp and medicinal cannabis sectors For personal use only Elixinol Global Limited Australian Securities Exchange (ASX) Listed USA Australia Australia Dietary Supplements Hemp Foods Medicinal
Slide 8: FY17 Reporting Highlights
For personal use only FY17 Reporting Highlights DRAFT Elixinol is on a 31 December year end (FY = CY) Page 8
Slide 9: Elixinol Global lists on ASX - January 2018
Elixinol Global lists on ASX - January 2018 For personal use only Page 9 Company Presentation February 2018
Slide 10: Company financial overview and achievements
Company financial overview and achievements FY2017 results are shown on a pro forma basis For personal use only ▪ Successful ASX listing in January 2018 IPO ▪ Oversubscribed Initial Public Offering (IPO) raising A$20m ▪ Revenue of A$16.5m up 62% vs FY2016* ▪ Gross profit improved to 64% exceeding pr
Slide 11: Solid revenue growth
Solid revenue growth First quarter produced revenues which exceeded expectations For personal use only Q1 FY18 Revenue A$6.6m Elixinol Global Limited Revenue (A$ million) 94% Revenue growth vs prior year Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Historical revenues are shown on a pro forma basis Q1 FY
Slide 12: Best revenues of all ASX-listed cannabis stocks
Best revenues of all ASX-listed cannabis stocks Chart below shows March quarter revenues EXL largest revenue producer of all ASX listed cannabis stocks For personal use only March December 6-month ASX quarter quarter price Price Market Code Company receipts receipts change May 1 Cap CAN CANN GROUP 0
Slide 13: Business overview
For personal use only Business overviewDRAFT Page 13
Slide 14: Elixinol USA
Elixinol USA For personal use only • Colorado-based CBD dietary supplements manufacturer and global supplier, established 2014 • A$13.3m revenue in FY2017 with 86% revenue growth vs FY2016 • Growing existing distribution network to 40 countries with ability to scale • One of the top five Hemp CBD bu
Slide 15: Elixinol USA – dietary supplements and foods
Elixinol USA – dietary supplements and foods For personal use only • Elixinol USA sells whole plant dietary supplements / products based on cannabidiol (CBD) oil • CBD oil is derived from the flowers, leaves and stalks of the hemp plant • CBD is a natural botanical concentrate which contains less th
Slide 16: Set up for scalability and growth through farming operation
Set up for scalability and growth through faming operation • In April, Elixinol USA announced a farming JV called Northern Colorado High For personal use only Plains Producers (NCHPP) • NCHPP will utilise up to 700 acres of farmland • Land and water rights secured by five-year lease term, extendable
Slide 17: Colorado hemp farm
Colorado hemp farm For personal use only DRAFT Page 17
Slide 18: Medical applications of hemp-derived CBD
Medical applications of hemp-derived CBD For personal use only Growth of the hemp-derived CBD nutraceutical market is expected to accelerate as products become more popular for treatments for various medical applications across a range of indications, such as: • Chronic pain • Post-traumatic stress
Slide 19: Current Products
Current Products For personal use only DRAFT Page 19
Slide 20: Elixinol USA - Scaling GMP manufacturing
Elixinol USA - Scaling GMP manufacturing For personal use only Expansion of US production centre: • GMP – ISO certified, purpose designed facility • Elixinol USA has purchased neighbouring land to use for expansion as needed • New production facility will have double the DRAFT capacity of our curren
Slide 21: Elixinol USA
Elixinol USA Our vision is to be a leading global supplier of premium hemp products For personal use only USA – Strategy To Market • SEO Blog • Social media • Paid ads • Retargeting campaigns • Product launches • Tradeshows • Sponsorships • Print advertising • Direct mail • Public relations • Inboun
Slide 22: Elixinol USA – building a global footprint
Elixinol USA – building a global footprint Our vision is to be a leading global supplier of premium hemp products For personal use only Page 22 Company Presentation February 2018
Slide 23: Elixinol USA – educating the market through influencers
Elixinol USA – educating the market through influencers Dr. Philip Blair For personal use only Senior Medical Advisor Andrew Leone MMA Fighter Leonard Marshall NFL Retired Alumni V - PaleoBoss Tedx Speaker | BAM Van “Sherpa” John Lacroix Human Potential Running Page 23 Company Presentation February
Slide 24: US Lobbying Efforts
US Lobbying Efforts US Senate Majority Leader, Mitch McConnell (R-Ky) supports Hemp Farming Bill For personal use only • Bill seeks to remove any existing legislative discrepancies for the Hemp industry in the US • To promote large scale industry growth across all elements of the existing and develo
Slide 25: For personal use only
For personal use only Page 25 Company Presentation February 2018
Slide 26: Hemp Foods Australia
Hemp Foods Australia Australia’s market leader since 1999 providing high quality hemp food products to the masses For personal use only Aussie Grown Page 26 Company Presentation February 2018
Slide 27: Hemp Foods Australia
Hemp Foods Australia For personal use only • Australian-based hemp foods and skincare manufacturer, distributor and exporter • Australia’s first hemp food company and current market leader • $3.2m revenue in FY2017 • Growing FMCG product range • Hemp classified as legal food from November 2017 Page
Slide 28: Health benefits of hemp foods
Health benefits of hemp foods For personal use only ✓ Essential Fatty Acids with an ideal ratio of Omega-6 to Omega-3 DRAFT ✓ Protein rich, more protein per 100g than flaxseed ✓ Gluten free ✓ Easy to digest ✓ Naturally grown ✓ GMO free Page 28
Slide 29: Hemp Foods Australia's established operation
Hemp Foods Australia’s established operation For personal use only DRAFT • Located in Northern Rivers, NSW • Distributes both bulk and finished product via wholesale and retail channels domestically and in South Korea, Japan and the USA • Hemp is grown using specialised broadacre farming in NSW, Qld
Slide 30: Hemp Foods Australia – market leadership continues
Hemp Foods Australia – market leadership continues Current product range consists of flours, seeds, oils, protein, snacks and skincare For personal use only DRAFT Page 30
Slide 31: Hemp Foods Australia supplying to major FMCG brands
Hemp Foods Australia supplying to major FMCG brands Leading restaurants and FMCG brands are adopting hemp, due to its superfood properties For personal use only ▪ Grill’d Healthy Burger Chain ▪ Alpine Breads (launch: Coles) ▪ Mayver’s Protein Peanut Butter with Hemp (launch: Woolworths) ▪ Emma & Tom
Slide 32: Hemp Foods Australia launches SATIVA skincare
Hemp Foods Australia launches SATIVA™ skincare After four years in the making, SATIVA™ hemp-based skincare range (10) launched in April 2018 For personal use only Page 32 Company Presentation February 2018
Slide 33: Exclusive shareholder offer
Exclusive shareholder offer For personal use only In celebration of the launch of our SATIVA Skincare range, we'd like to offer you an exclusive 15% discount on our products. Simply visit www.sativaskincare.com and enter the code "SUPPORT15" at checkout. Offer valid through to 30 May 2018. Page 33 C
Slide 34: New Essential Hemp snack bars range coming next
New Essential Hemp snack bars range coming next… Move over chia… hemp is coming to town through HFA and other major FMCG brands For personal use only Page 34 Company Presentation February 2018
Slide 35: Educating the market through direct sales and influencers
Educating the market through direct sales and influencers For personal use only Page 35 Company Presentation February 2018
Slide 36: Elixinol Australia
For personal use only Elixinol Australia DRAFT Page 36
Slide 37: Elixinol Australia
Elixinol Australia For personal use only Striving to be Australia’s provider of safe, stable and effective medical cannabis products • Australian-based, establishing a pharmaceutical grade medicinal cannabis business • Pursuing licenses with Office of Drug Control (ODC) – license applications submit
Slide 38: Setting up to enter the Medicinal Cannabis market
Setting up to enter the Medicinal Cannabis market For personal use only • Medicinal cannabis refers to pharmaceutical grade products (or medicines) using the cannabis plant or chemical compounds contained within to treat medical conditions • Elixinol Australia intends to cultivate in high tech green
Slide 39: Elixinol Australia – staged approach to Australian market
Elixinol Australia– staged approach to Australian market For personal use only Stage 1 Stage 2 Business model Education of Research & “Authorised Extraction and Import development and Cultivation Prescribers” – manufacturing clinical trials patients ▪ Import finished product ▪ Roll-out educational ▪
Slide 40: Elixinol Australia: executing its Medicinal Cannabis strategy
Elixinol Australia: executing its Medicinal Cannabis strategy For personal use only Cultivation and Manufacturing License Submissions with the Office of Drug Control (ODC) ✓ Site selected ✓ Operational plan for integrated state-of-the art cultivation and pharma grade manufacture facility ✓ Proprieta
Slide 41: Elixinol Australia: educating the market
Elixinol Australia: educating the market For personal use only Within allowed limits Elixinol Australia will develop a strategy to communicate the efficacy of our products by creating a professional influencer strategy: • University and medical institutions • Specialist associations and agencies • D
Slide 42: Looking forward
For personal use only Looking forward DRAFT Page 42
Slide 43: Industry and thought leadership position
Industry and thought leadership position Across Elixinol businesses we are: For personal use only • Called upon regularly to provide keynote speakers to global conferences and trade fairs • Asked to comment in media on industry matters • Seen as industry leaders, following 25 years of experience, op
Slide 44: See us at all of these events!
See us at all of these events! Ongoing engagement with customers and influencers through global conferences and events For personal use only USA - CANADA – AUSTRALIA - GERMANY – GREECE – POLAND +++ Adv Med Academy & InnoVision/Pain Practitioner IDEA World(fit) Big Industry Show Lyme Summit (online)
Slide 45: Expected news flow
Expected news flow Significant corporate milestones achieved in first half to date For personal use only ✓ Successfully listed on ASX with oversubscribed IPO ✓ Exceeded revenue expectations for Q1 FY2018 ✓ Elixinol Australia submitted cultivation and manufacturing license applications with Office of
Slide 46: Summary
Summary Elixinol Global is positioned to take advantage of the growing markets for hemp and medical cannabis For personal use only • $13.3m revenue FY17 - exceeding prospectus forecasts • $6.6m revenue Q1 FY18 - 94% revenue growth vs prior year • Strong balance sheet • 3 diverse businesses: dietary
Slide 47: For more information
For personal use only For more information: Paul Benhaim Ron Dufficy Chief Executive Officer DRAFT Chief Financial Officer paul@elixinolglobal.com ron.dufficy@elixinolglobal.com +61 407 767 709 +61 428 881 718