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HOLISTA COLLTECH LIMITED AGM Information 2019

May 29, 2019

65044_rns_2019-05-29_240e9da0-5ede-4291-a30a-040e4e0d7004.pdf

AGM Information

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HOLISTA COLLTECH LIMITED FOCUSING ON A BRIGHTER FUTURE (ASX:HCT) ANNUAL GENERAL MEETING FY2018 30 May 2019

Opening Remarks: Good Morning everyone. Welcome to Holista CollTech’s Annual General Meeting of FY2018. I, Rajen Manicka, Founder and CEO of Holista, am pleased to provide you an update of the all the exciting developments made during the year in review along with future corporate strategy for 2019 and beyond.

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UNLOCKING VALUE OF OUR R&D THE
TIME IS NOW
The "4S Tsunami"& our R&D response Low-GI suite (patented)
Starch & sugar: low-GI carbs Low-GI noodles
Sugar: Low-GI and low-calorie sugar Low-GI pasta
Saturated Fat - Low-fat fried chips Low-GI bread
Salt – Low-sodium salts Low-GI and low-calorie sugar – 80Less
Holista has a suite of products that can address major global health pandemics
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1.While working on my Doctoral thesis in the early 2000s, I described the confluence of sugar, starch, saturated fat and salt as the 4S Tsunami.

2.Holista has committed to R&D investment over the last 7 years to solve the 4S Tsunami, and has successfully created then ramped up the low-GI business by its suite of low-GI products that provide healthy yet tasty alternatives to the 4S Tsunami.

3.Holista’s 4S Tsunami products consist of low-GI carbs for sugar and starch, low-GI and low-calorie sugar which are already launched, and yet to be launched are low-fat fried chips and low-sodium salts.

4.Holista’s low-GI suite includes low-GI versions of noodles, pasta, bread and lowcalorie sugar.

5.This is an exciting period for Holista now, since it is time to unlock the value of our R&D investment by focusing on commercialising these products in different markets.

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LOW-GI FLOUR PRODUCTS SALES ORDERS PLACED

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Low-GI Noodle Low-GI Spaghetti Low-GI Pasta Low-GI Flatbread
Received orders from Sold on Amazon and Appointed Hilary's Before the end of 2019.
• Wing's Group of featured under Amazon’s for exclusive distribution
Canada – to supply Choice. in Canada
noodle mix.
• Express Trading – to
export noodles to
China – world's largest
consumer of noodles
with first delivery in
June.
Holista has a suite of products that can address major global health pandemics
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1.The Company have already kick-started the commercialising our low-GI flour products.

2.The Company started with low-GI noodles, for which we received two major orders this year –

•The first one being Wing’s Group of Canada to supply the noodle mix – have a signed commitment from a Chinese customer effective July 2019

•Another was for Express Trading Canada to export noodles to China – world’s largest consumer of noodles with first delivery expected in June.

3.The next one was Holista’s low-GI spaghetti - which is already selling on Amazon and within six months, was featured under Amazon’s Choice.

4.The Company ended the financial year by appointing Hilary’s for exclusive distribution of Holista’s low-GI pasta in Canada

5.Subsequent to year end, the Company also collaborated with Malaysia’s Kawan Food to produce low-GI Asian flatbreads. It is expected to hit the market before the end of 2019.

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LOW CALORIE SUGAR – BEATING THE SUGAR TAX
Proprietary Made of No after- Can replace Many 80Less In
formula - sucrose taste and sugar in countries addresses discussions
80% fewer (table same every have/are the diet with a
calories. sugar) sensory application. proposing issue of Malaysian
and very effects as sugar tax. consumers. company
low levels sugar. for collabor
of sucralose ation.
(an
intense
sweetener
derived
from
sugarcane).
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1.This year the Company added yet another feather to our low-GI hat - 80Less, our low-GI sugar with 80% fewer calories.

2.It is made from completely natural ingredients such as sucrose and sucralose, leaving no after taste and yet tastes same as sugar.

3.While many countries have or are proposing sugar tax, 80Less is the perfect solution that addresses the diet issue of consumers.

4.Being able to replace sugar in all applications, 80Less has the ability to open many opportunities for Holista in FY2019. In fact, the Company is already in talks with a Malaysian company for collaboration to introduce 80Less into its formula.

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OTHER LOW-GI PRODUCTS PIPELINE
Low-GI breads Low-GI tortillas Low-GI biscuits
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  1. As mentioned before, the Company has already entered into one collaboration with Kawan Food of Malaysia to produce low-GI flatbreads.

  2. Holista is working on some prospective collaborations for this year relating to

  3. low-GI breads, low-GI tortillas and low-GI biscuits.

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DIETARY SUPPLEMENTS UPDATE
Still a major revenue generator- Pending launch of range for kids Launched patented proprietary
A$ 7,699,489. and personal care. products in the U.S.
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  • •1.Holista’s dietary supplement business continues to be the main revenue generator, making total sales of A$7,699,489 this year.

  • •2.This year, Holista launched patented proprietary products in the U.S. via a multilevel company called iGalen.

  • •3.Additionally, Holista has plans to launch a range of kids and personal healthcare, which is planned for the second half of this year in Malaysia.

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COLLAGEN UPDATE
Completed plant ISO 9002 certification. Completion of pilot
renovation. scale food-grade
collagen plant.
Already have orders
worth more than AUD
600,000 in 2019.
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  • •1.In FY2018, the collagen plant was renovated, back in operation and generated revenue of A$215,000.

  • •2.The Company has also received ISO 9002 certification and completed a pilot-scale food-grade collagen production run.

  • •3.Lastly, in FY2019 Holista has received orders for the year in the order of

  • A$600,000, which is a significant rise from FY2018 revenue.

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WHAT'S NEXT FOR COLLAGEN
Medical-grade collagen will offer better Cosmetic-grade collagen is getting good Reviewing a strategic fit for our collagen
margins but this will require capex. traction & we are increasing our specifications business and how best to unlock value for
to deliver higher value-added products. this asset.
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  1. Until now, Holista’s main focus was on food and cosmetic grade collagen, however there is opportunity for the Company in medical-grade collagen which will require additional amounts of capex.

  2. Holista’s cosmetic-grade collagen is getting good traction and by increasing the specifications it should deliver higher value-added products.

  3. The Board is also reviewing a strategic fit for the collagen business and how best to unlock value for this asset.

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FINANCIAL SNAPSHOT
Narrowed losses; several food ingredients deals commenced after FY2018.
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This is a financial snapshot of the Company’s improvement in 2018 revenue as well as a significant reduction in net loss.

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THE ROAD AHEAD
Accelerate market reach for low-GI Collaboration agreements since start Review options to unlock value of
products, focusing on flour and of 2019 should contribute to higher collagen business so as to focus on
sugar. revenue. food ingredients.
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  1. Holista’s current focus is to accelerate market reach for low-GI products, focusing on flour and sugar.

  2. Holista’s collaboration agreements since start of 2019 should contribute to higher revenue.

  3. Meanwhile, the Company will also be reviewing options to unlock value of collagen business so as to focus on food ingredients.

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THANK YOU!

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