ATLAS PEARLS LTD — AGM Information 2021

Oct 24, 2021

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AGM Presentation 25 October 2021 ASX : ATP

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ATLAS PEARLS AGM 2021

Important Information

PRESENTATION BY ATLAS PEARLS

This presentation has been issued by Atlas Pearls Limited (“the Company”) and is based on information obtained by the Company. This presentation should be considered as preliminary only and does not purport to contain all the information that you (“the Public”) may desire. In all cases, the Public should conduct its own investigations and analysis. The Company’s advisers and auditors have not been involved in the preparation of, and have not authorised, permitted or caused the issue, lodgement, submission, dispatch or provision of this presentation and do not make or purport to make any statement in this presentation and the recipient acknowledges that there is no statement in this presentation which is based on any statement made by the advisers. The Company, its officers and employees, advisers and auditors and their affiliates, and their officers and employees, to the maximum extent permitted by law, exclude and disclaim all liability for any expenses, losses, damages or costs that may be incurred by the recipient as a result of the information and /or representations contained in this presentation being inaccurate or incomplete in any way for any reason.

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ATLAS PEARLS AGM 2021

About Atlas Pearls Global leaders in the sustainable production of white and silver South Sea pearls, certified from the source.

Over the past 25 years, Atlas Pearls has become one of the world’s largest producers and distributors of the highly sought-after, white & silver South Sea pearls. Operating across 7 farming locations throughout the South Seas the Company employees more than 1,000 people & in 2021 harvested more than 560,000 pearls.

7 FARMING OPERATIONS 1,000+ EMPLOYEES 560,000+ PEARLS HARVESTED 1,645,465

JUVENILE & MATURE OYSTERS

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ATLAS PEARLS AGM 2021

Key Operational Locations

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ATLAS PEARLS AGM 2021

Atlas Pearls Board

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Mr. Geoff Newman

EXECUTIVE CHAIRMAN B. Ec. (Hons), M.B.A, F.C.P.A ,F.A.I.C.D. Commencing as Director for Atlas Pearls in 2010 Geoff became Chairman in 2015 and Executive Chairman in 2019. Geoff has more than 11 years experience in the pearling industry.

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Mr. Cadell Buss INDEPENDENT NON-EXECUTIVE DIRECTOR M.B.A, M.P.M, G.A.I.C.D. Appointed as a Director of Atlas Pearls in 2018, Cadell has more than 3 years pearl industry experience.

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Mr. Tim Martin NON-EXECUTIVE DIRECTOR B.A., M.B.A, G.A.I.C.D.

Appointed as Director of Atlas Pearls in 2013, Tim has more than 8 years experience in the pearling industry.

ATLAS PEARLS AGM 2021

Innovative Changes to Distribution

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Map showing increase in company’s reach by location from fy20 to FY21

A notable impact to the business during this financial year were the continued restrictions placed on traditional distribution network.

Prior to the pandemic sales and distribution had predominantly relied on face-to-face auctions.

As a result of COVID the Company was impacted by government restrictions and international travel disrupted people and pearl movements.

Consequently, the Company needed to find immediate alternative methods of selling pearls to ensure that delays to the Company’s revenue stream was minimised.

In response to the immediate need for alternative distribution paths, the Company developed an online auction platform for the exclusive sale of Atlas Pearls.

The Company launched its online auction platform in November 2020 and hosted the first full harvest online auction in December 2020.

The online platform proved to be highly successful with clients participating from all over the world including Australia, New Zealand, Japan, China, the USA and Spain.

The online platform, which is supported by an Atlas App, has generated sales from Customers that traditional sales networks did not reach.

It forms a key part of a multi-faceted approach to sales and its success reflects the agile nature of Atlas Pearls in harnessing opportunities in FY21. Customer diversification is increasing with the Company increasing its customer base and reach.

The Company was able quickly adjust the product profiles to meet new customers requirements such including smaller bag sizes and offering different goods in different sales channels.

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ATLAS PEARLS AGM 2021

Sales & Distribution Achievements

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ONLINE PLATFORM

ATLAS PEARLS APP.

The Company has launched it’s first loose pearls sales app. The app supports the online loose pearls trading website, making the collection of loose pearls easily accessible to trade customers for viewing and purchase.

The online loose pearl trade website was successfully launched in November of 2020. This channel has seen an increase in customer reach and diversity as well as achieved the strategic marketing objective of increasing competitive tension.

FY 2021

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ONLINE SALES EVENTS

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82,067 PEARLS SOLD ONLINE

$3.3m DIRECT ONLINE REVENUE

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ATLAS PEARLS AGM 2021

Financial Highlights

COST OF GOODS

Costs of goods sold for the financial year remained consistent to prior year at $8.4m (30 June 2020: $8.5m).

CURRENCY DIVERSIFICATION

During the financial year considerably;	the revenue make-up changed	the revenue make-up changed	the revenue make-up changed
		FY20	FY21
	¥ Yen	97%	48%
	$ USD	-%	27%
	Other	3%	24%

FY 2020 ($8.1m) LOSS AFTER TAX $13.7m REVENUE ($1.3m) NET CASH OUTFLOW FROM OPERATIONS $178K EBITDA

FY 2021 $6.7m[*]

PROFIT AFTER INCOME TAX

• Includes an accounting adjustment in relation to the oysters of $4.0m that relates to the valuation of oysters in the water.

$18.3m

REVENUE

$3.8m

NET CASH INFLOW FROM OPERATIONS

$5.6m

EBITDA

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ATLAS PEARLS AGM 2021

Operational Achievements SEEDING

With seeding levels between 800,000-850,000 the Company foresees the production of 500,000-550,000 pearls per annum. Oysters seeded; FY21: 801,000 - FY20: 821,000

ADDITIONAL SEA LEASE

A sea lease was acquired in the nutrient rich waters of West Lembata. The location provides shelter from volcanic activity and increases geographic diversity.

HATCHERY REFORMS

The hatcheries continue to focus on two key areas, being food availability for spat (baby oysters) and antibiotics used in the early stages of an oysters life.

FY 2020

1,385,583 JUVENILE & MATURE OYSTERS 1,260,437 NUCLEATED OYSTERS 462,530 PEARLS HARVESTED

FY 2021

1,645,465 JUVENILE & MATURE OYSTERS 1,333,045 NUCLEATED OYSTERS 562,872

JUVENILE & MATURE OYSTERS

PEARLS HARVESTED

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ATLAS PEARLS AGM 2021

Impact of COVID-19

IMPACT ON OPERATIONS

Travel Restrictions

Movement of oysters between farm sites. Movement of skilled staff between farm sites. Movement of pearls post grading for sale. International travel for the purpose of sales.

IMPACT ON EMPLOYEES

Health Care Access to health care in remote locations. Vaccine Access to vaccine supplies. Over 75% of staff are currently vaccinated.

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ATLAS PEARLS AGM 2021

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Thank You

Atlas peals would like to thank the company’s loyal and dedicated shareholders, Employees, customers and stakeholders for their continued support and commitment during the year. We remain focused on the production and distribution of the highest quality, safely and sustainably produced, luxurious pearls in the world.