Candy Club — Investor Presentation (April 2021)
36 slides from Candy Club's investor presentation, Apr 14, 2021
Slide 1: Investor Presentation April 2021
For personal use only INVESTOR PRESENTATION APRIL 2021 AUTHORISED BY THE BOARD OF DIRECTORS 1
Slide 2: Disclaimer
DISCLAIMER This presentation (the Presentation) is provided by Candy Club Holdings Ltd ACN 629 598 778 (ASX.CLB) (Candy Club or CLB). For personal use only LIMITED PURPOSE OF THE PRESENTATION NO INVESTMENT ADVICE The Presentation does not purport to contain all information the recipient of the Pres
Slide 3: Contents
For personal use only 1 Executive summary 2 Financial summary 3 Growth strategy CONTENTS 4 Company overview 5 Capital raise 6 Appendix 3
Slide 4: Executive Summary
For personal use only SUMMARY EXECUTIVE 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY For personal use only ABOUT US FINANCIAL HIGHLIGHTS CAPITAL RAISING Candy Club Holdings Limited (ASX: CLB) is a US In 2020, Candy Club nearly doubled its revenue to Candy Club has undertaken a private placement of based confectionery company that is focused on its US$8.7 million fr
Slide 6: Financial Summary
For personal use only SUMMARY FINANCIAL 6
Slide 7: B2B Revenue Growth
B2B REVENUE GROWTH For personal use only B2B YEAR OVER YEAR REVENUE 2019 2020 2021 ** 1400k In FY20, Candy Club nearly doubled 1200k its revenue to US$8.7 million from US$4.7 million in 2019 1000k More impressive was the growth in its key B2B segment, which saw revenue 800k grow 6x to US$6.8 million
Slide 8: Historical Profit and Loss
HISTORICAL PROFIT AND LOSS For personal use only PROFIT & LOSS ($000'S) FY 2019 FY 2020 Q1 2021 B2B revenue has grown from US$0.65 million in ACTUAL ACTUAL ESTIMATE Q1FY20 to over US$3.4 million (estimated) in Q1FY21, a 5x increase B2B Wholesale 1,096 6,646 3,400 B2C Subscription & E-Comm 3,610 2,02
Slide 9: Growth Strategy
For personal use only GROWTH STRATEGY 9
Slide 10: Candy Club Growth for FY21 & Beyond
CANDY CLUB GROWTH FOR FY21 & BEYOND For personal use only OVERVIEW BRICKS AND MORTAR STRATEGY • Candy Club’s strategy is to acquire prominent • New business development selling partnerships Due to the COVID-19 pandemic national retail accounts, as well as small and to assist in scaling our customer
Slide 11: Company Overview
For personal use only COMPANY OVERVIEW 11
Slide 12: Company Background
COMPANY BACKGROUND For personal use only Founded in 2015, Candy Club started as a pureplay business-to-consumer business. (B2C) subscription-only +500% 17,000* B2B revenue growth Total retail doors Candy Club pivoted its strategy in 2019, to focus on FY19 to FY20 selling its products to brick and mo
Slide 13: Key Benefits of the Candy Category to Retailers
KEY BENEFITS OF THE CANDY B2B MARKET CATEGORY TO RETAILERS OPPORTUNITY For personal use only Reliable gross Long Defensive margins shelf life product Increases average High ROI & lack High turnover order value of markdowns rate Candy Club has identified a massive untapped opportunity in this sector.
Slide 14: White Space Strategy
WHITE SPACE STRATEGY For personal use only In September 2019 Candy Club identified under-utilised counter Candy Club offers retailers and eCommerce websites the space at premium retailers across the US as a growth opportunity to offer their customers a “premium candy store opportunity and an untappe
Slide 15: Distribution Strategy
DISTRIBUTION STRATEGY For personal use only CANDY CLUB HAS BUILT A ROBUST B2B CUSTOMER ACQUISITION NATIONAL AND REGIONAL B2B STRATEGY THAT INCLUDES MULTIPLE REVENUE STREAMS INCLUDING: CUSTOMERS INCLUDE: Dedicated internal sales 3rd party selling agents & brokers (3) staff (6) which focuses on with e
Slide 16: Product Differentiation Is Candy Club's Strength
PRODUCT DIFFERENTIATION IS CANDY CLUB’S STRENGTH For personal use only Confetti Drops Gummy Dinos Sour Pink Cadillacs Rainbow Sour Belts Chocolate Pretzels Blue Razz Laces 16
Slide 17: Building Brand Awareness
BUILDING BRAND AWARENESS For personal use only Candy Club’s experienced management team use its vast network of contacts to secure major media coverage in many of America’s top celebrity publications cost free, as evidenced by this Easter’s media coverage 9.6M Weekly Audience | 4/5/2021 4.5M Weekly
Slide 18: Why We Are Winning
WHY WE ARE For personal use only WINNING – RETAILERS AND CONSUMERS LOVE OUR PRODUCTS Faire and Tundra are two of the most prominent online wholesale platforms that carry Candy Club’s products. Candy Club’s retailer satisfaction ratings are outstanding as Faire averages at 4.9 out of 5 while on Tundr
Slide 19: Raise Capital
For personal use only RAISE CAPITAL 19
Slide 20: Capital Raise for Accelerated Growth
CAPITAL RAISE FOR ACCELERATED GROWTH For personal use only To date, Candy Club has With a refined business model With the capital that Candy grown significantly utilising that clearly is gaining traction, Club will secure through the several smaller capital raisings scaling revenues and strong ~A$10
Slide 21: Use of Proceeds
USE OF PROCEEDS For personal use only USE OF PROCEEDS (AUD)* Acquisition of Inventory $4.4 million Customer Acquisition Lead Gen campaigns $1.0 million CAPEX $0.5 million Increased Sales Staff $0.5 million General Working Capital (including significantly higher AR balances) $3.8 million Costs of the
Slide 22: Capital Structure & Director Ownership
CAPITAL STRUCTURE & DIRECTOR OWNERSHIP For personal use only CAPITAL STRUCTURE DIRECTOR OWNERSHIP 92,397,309 (includes 7,785,865 shares to be issued at A$0.22 per Shares PRE-MONEY POST-MONEY JAMES share subject to shareholder approval) BAILLIEU (& Listed options 25,161,506 JCKB LTD) Fully Paid Conve
Slide 23: Balance Sheet (US$000's)
BALANCE SHEET (US$000’S)** PROFORMA For personal use only Dec. 31, 2020 Mar. 31, 2021 Actual Proforma (unaudited) BALANCE ASSETS Cash^ 2,019 10,060 SHEET Accounts Receivable 449 845 Inventory 3,555 4,880 Post Equity Capital raise of ~A$10.7 Other Current Assets 293 501 million, the Company will have
Slide 24: Summary Debt Terms
SUMMARY DEBT TERMS For personal use only The debt funding is from SUMMARY TERMS OF DEBT OFFER OTHER DETAILS Venture Lending & Leasing IX Inc, which is a A commitment of US$7.5 million in two tranches by - WTI granted Warrant to purchase Western Technology Investment. First draw is for part of Wester
Slide 25: Thank You
For personal use only THANK YOU 25
Slide 26: Appendix
For personal use only APPENDIX 26
Slide 27: Our Story
OUR STORY For personal use only Our Founder saw an opportunity to bring the fun of an old-fashioned candy store directly to people’s homes. After some research and lots of questions asked, he began offering monthly subscription boxes of cute jars filled with fun candy — and Candy Club was born. As t
Slide 28: Candy Club Timeline
CANDY CLUB TIMELINE For personal use only 2015 2016 2017 2018 2019 2020 • Founded by Keith • Focused on adding • Customer • Australian roadshow • IPO on ASX • B2C turns profitable Cohn scale and validating experience and pre-IPO rounds; on lower scale • Launched B2B all KPI metrics enhancements subs
Slide 29: Executive Board: Keith Cohn
EXECUTIVE BOARD only More than 20 years of experience in the consumer industry, a 4x serial entrepreneur and use startup executive. Founder & CEO, Vendare Media, a leading adtech company with 300 employees and annual personal sales of US$150 million. Founder & CEO, Bardon Advisors, a boutique adtech
Slide 30: Executive Board: James Baillieu
EXECUTIVE BOARD only Mr Baillieu brings a wealth of corporate experiences to Candy Club, having previously served as Non-Executive Chairman of use BidEnergy Limited (ASX: BID), which was the best performing stock on ASX under his leadership. Mr Baillieu was also an early investor in Aconex Limited (
Slide 31: Executive Board: Andrew Clark
EXECUTIVE BOARD only Mr Clark joined Candy Club Board with a wealth of knowledge gained in executive and senior leadership positions whilst use working for more than 20 years in the Consumer Goods sector. Domestic and global roles held in large multinational and national public businesses and smalle
Slide 32: Executive Board: Kan Tang
EXECUTIVE BOARD only Founding Partner of Asia Summit Capital, a private equity firm focused on consumer growth and the technology sector in use Indonesia and Southeast Asia. Kan co-founded Asianlogic which was listed on UK’s AIM stock exchange in 2007 raising over US$100 million and successfully per
Slide 33: Executive Management: Nicholas Giordano
EXECUTIVE MANAGEMENT only Financial Executive and CPA with 20+ years of experience in high growth start-ups in the consumer goods industry. use Proven track record of achieving strategic, financial and operational goals driving corporate profitability. personal Recently held positions prior to joini
Slide 34: Executive Management: Chad Burbach
EXECUTIVE MANAGEMENT only Executive with 20+ years of overall experience; 17+ years in marketing, business development and use operations roles within high growth eCommerce start ups. Prior to Candy Club was Head of Marketing & personal Partnerships at The Bouqs Co., overseeing all aspects of market
Slide 35: Executive Management: Tracey Moses
EXECUTIVE MANAGEMENT only Bringing over 20+ years in Marketing and General Management, focused on branding and consumer experience, Ms. Moses joined use Candy Club with experience in a variety of sectors including CPG, Med Device, Retail and eCommerce. Tracey owned her own consulting practice for 7
Slide 36: Executive Management: Ivana Placko
EXECUTIVE MANAGEMENT only Ms. Placko joined Candy Club with over 15 years of experience working with stakeholders, vendors and use clients around the world implementing Technology solutions. She spent 10 years in London with the Gallup Organization managing technology roadmap and personal internatio
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