Anagenics Limited · ASX:AN1
Anagenics — Cellmid — Shareholder Meeting (November 2020)
22 slides from Anagenics's shareholder meeting presentation, Nov 30, 2020
Slide 1: AGM Presentation
AGM Presentation 30 November 2020 ASX: CDY 1
Slide 2: Forward looking statements
Forward looking statements This presentation has been prepared by Cellmid Limited ACN 111 304 119 (CDY) for information purposes only. The presentation may contain forward-looking statements that are not guarantees of future performance and are subject to uncertainties. Such forward looking statemen
Slide 3: Company description and agenda
A health and beauty-tech business growing shareholder value through the global distribution and sales of its brands of differentiated, clinically validated anti-aging solutions AGENDA • Operational Progress • Financial Overview • Growth Strategy FY2021-FY2023 • Lyramid Divestment • Outlook
Slide 4: Operational Progress
OPERATIONAL PROGRESS 4
Slide 5: FY2020 Highlights
FY2020 HIGHLIGHTS FY2020 OPERATIONAL HIGHLIGHTS ONLINE PARTNERSHIPS WITH AMAZON, LAUNCHED ON NEW PRODUCT 20 NEW B2B ADOREBEAUTY, QVC USA, QVC LAUNCHES CHANNELS DERMSTORE, GERMANY & (DRY SHAMPOO, MACYS.COM, QVC UK MASK) DOUGLAS.COM FY2020 FINANCIAL HIGHLIGHTS $7.48 MILLION IMPROVING NET ASSETS UP NET
Slide 6: Substantial operational progress since 2019
SUBSTANTIAL OPERATIONAL PROGRESS SINCE 2019 2019 Diversify sales Expand Expand Secure supply Invest in Prepare for GROWTH channels e-commerce leadership team chain operational separation of STRATEGY efficiency businesses OBJECTIVES ✓ Geographic ✓ Launched new évolis® ✓ Appointed senior ✓ Secured raw
Slide 7: Financial Overview
FINANCIAL OVERVIEW 7
Slide 8: Product revenue stable through COVID-19
PRODUCT REVENUE STABLE THROUGH COVID-19 AUD$M FY2020 FY2019 Revenue from Product Sales 7.48 7.39 • Stable revenue: Product sale related revenue increased by 1% to $7.48* million in FY2020. Strong Other Income 1.07 0.96 positive momentum in 1H FY2020 was capped in 2H due to COVID-19 business disrupti
Slide 9: Improved balance sheet
IMPROVED BALANCE SHEET AUD$M FY2020 FY2019 ASSETS • Strong balance sheet: In FY2020, Cellmid raised a Cash & Cash Equivalents 6.97 3.08 total of $8.9 million, including $6.3m in April 2020 Trade & Other Receivables 1.87 2.28 and $2.5m in October 2019, which boosted the end of year cash balance to $6
Slide 10: Improving operating cashflow in FY2020
IMPROVING OPERATING CASHFLOW IN FY2020 AUD$M FY2020 FY2019 Net Loss After Tax (4.91) (5.91) • Improving operating cashflow: In FY2020 operating cashflow improved by 29% and cash Income Tax Expense (0.09) (0.02) burn reduced to $4.01 million. In Q1 FY2021, cash Depreciation and Amortization (0.52) (0
Slide 11: Growing inventories for new distribution channels
GROWING INVENTORIES FOR NEW DISTRIBUTION CHANNELS Inventory • Investing in inventory: In FY2020, inventories ($'000) increased by $1 million to $2.61 million, primarily $3,000 due to an increase in finished goods. $2,500 • Pipeline building: In 1H FY2020, Cellmid was $657 preparing orders for expect
Slide 12: Growth Strategy FY2021-FY2023
GROWTH STRATEGY FY2021 -FY2023 12
Slide 13: Shifting value drivers in beauty
SHIFTING VALUE DRIVERS IN BEAUTY BRAND + CUSTOMER BRAND CUSTOMER DATABASE DATABASE Independent brands with direct to Traditional brands are losing market The significant shift to ecommerce consumer business control their brand share online and offline to independent produced large online retailers t
Slide 14: Cellmid's three year growth strategy: FY2021 to FY2023
CELLMID’S THREE YEAR GROWTH STRATEGY: FY2021 to FY2023 1. GROW 2. ACHIEVE 3. FOCUS ON REVENUE PROFITABILITY BRAND Optimise deployment of Focus on product capital by focusing on innovation leveraging Grow recurring revenue strong cashflow expertise in hair and by increasing direct generating opportun
Slide 15: 1. Grow revenue through e-commerce
1. GROW REVENUE THROUGH E-COMMERCE 2. Maintain portfolio of high quality, efficacious and differentiated products to nurture customer trust and loyalty 3. Build direct 1. Build customer relationship database cost- through social effectively by utilising online B2B PRODUCT QUALITY IS media, personali
Slide 16: 1. Grow revenue in new geographies
1. GROW REVENUE IN NEW GEOGRAPHIES FY2018 FY2020 FY2023 TOTAL REV: TOTAL REV: TOTAL REV: $5.6M $7.4M $22M-$25M* 4% 8% 21% 28% 16% 42% 75% 76% 14% Japan Australia USA 17% Japan Japan Australia USA Australia USA China, Europe and Rest of Asia *Revenue projections are subject to risks and uncertainties
Slide 17: 1. Revenue: underlying assumptions
1. REVENUE: UNDERLYING ASSUMPTIONS • Exploit salon distribution in the USA - FY2021 onwards • Launch Amazon Europe and Amazon Australia - FY2021 • Launch evolis T-mall store in China with Aeon and successfully execute on joint marketing strategy - FY2011 onwards • Exploit Jo-Ju and Lexilis import pe
Slide 18: 2. Achieve profitability
2. ACHIEVE PROFITABILITY Optimise capital Continue to improve Take advantage of deployment supply chain economies of scale • Invest in opportunities • More strategic ingredient • Continue to explore with strong cash sourcing to improve cost opportunities for large generating potential of goods scale
Slide 19: 3. Focus on brand – innovation and new technologies
3. FOCUS ON BRAND – INNOVATION AND NEW TECHNOLOGIES Maintain leadership in hair biology through ongoing research and publications and new intellectual property Grow product portfolio, launch anti-aging skin care range and supplements Launch only first in class and/or best in class clinically validat
Slide 20: Outlook: Lyramid divestment
OUTLOOK: LYRAMID DIVESTMENT 1. Cellmid is likely to retain patent and other intellectual property ownership • A license between Lyramid and Cellmid will be agreed • There will be a likely share of future IP revenue through royalties • Lyramid will be responsible for the costs of research and develop
Slide 21: Outlook: Diagnostic assets
OUTLOOK: DIAGNOSTIC ASSETS Supply Agreement: Cellmid signed supply, introducer and distribution agreements for a range of SARS-CoV-2 antibody, antigen and PCR tests Test validation: Wondfo SARS-CoV-2 antibody kits were successfully listed on the Australian Register of Therapeutic Goods (ARTG) New pr
Slide 22: Outlook: FY2021 milestones
OUTLOOK: FY2021 MILESTONES Expand in China: Increased market penetration and sales in China through cross border ecommerce, social commerce and import permits USA and Australia sales growth: Through existing channels (Priceline, Amazon, Dermstore, Tru Beauty), new salon distribution partnerships and