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HOLISTA COLLTECH LIMITED — Investor Presentation 2021
Apr 11, 2021
65044_rns_2021-04-11_a0ad9b30-ff98-4457-98ee-fbd49b724ce4.pdf
Investor Presentation
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Investor Presentation April 2021
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Disclaimer
This document has been prepared by Holista Colltech Limited and comprises written material/slides for a presentation concerning Holista Colltech Limited and its subsidiaries.
The presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dispose of, or issue, or any solicitation of any offer to sell or otherwise dispose of, purchase, or subscribe for, any securities, nor does it constitute investment advice, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.
Certain statements in this presentation are forward looking statements. You can identify these statements by the fact that they use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “target”, “may”, “assume” and words of similar import. These forward looking statements speak only as at the date of this presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performance or achievements expressed or implied by such forward looking statements.
No representation, warranty or assurance (express or implied) is given or made by Holista Colltech Limited that the forward looking statements contained in this presentation are accurate, complete, reliable or adequate or that they will be achieved or prove to be correct. Except for any statutory liability which cannot be excluded, Holista Colltech Limited and its respective officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the forward looking statements and exclude all liability whatsoever (including negligence) for any direct or indirect loss of damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom. Subject to any continuing obligation under applicable law or any relevant listing rules of the ASX, Holista Colltech Limited disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any forward looking statements or any change of events, conditions, or circumstances on which any statement is based. Nothing in these materials shall under any circumstances create an implication that there has been no change in the affairs of Holista Colltech Limited since the date of this presentation.
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2
Company Overview (ASX: HCT) World-leading technologies & global reach
Holista Colltech is an emerging Australian developer of unique health and wellness products in the US$4.5 trillion Global Health and Wellness Industry
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Global reach with customers in Asia, US and Australia
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Successfully commercialised portfolio of patentprotected/proprietary technologies
| Key Market Stats* | |
|---|---|
| Market Cap | $16.2m |
| 52-week Trading Range | 5.5¢ - 27.5¢ |
| Average Daily Vol. | 591,632 |
| No. of Shares on Issue | 275.4m |
| Top 20 Shareholders | 61% |
- Established track record with ~$7m in annual sales
• Key products include low-GI food ingredients used by leading food manufacturers, all-natural sanitisers for consumer and industrial applications, market leading dietary supplements and disease free ovine Collagen.
*As of 09/04/21
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3 Investor Presentation April 2021
Investment Proposition Well-positioned for growth
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Multiple growth avenues with defensive revenue streams Global reach with proven products sold around the world Large addressable and growing markets in health/wellness Well-funded to grow with cash holdings of ~$3m Positive 2021 outlook with improved results expected
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4 Investor Presentation April 2021
Business Division Growth engines
| Healthy Food Ingredients | Infection Control Solutions |
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•Largest sales/profit contributor •Recovering strongly from COVID-19 impact •Market leading vitamin brand in Malaysia
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•1[st] to produce ovine collagen from Australian Sheep •Patented processes •Australian collagen highly sort after due to disease-free status •Product sold to cosmetics manufacturers
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5 Investor Presentation April 2021
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Healthy Food Ingredients Fast Growing and Underpenetrated Global Markets
Large & Growing Problem
Diabetes & Obesity: the next pandemic with no vaccine
What is low GI?
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Global obesity and weight loss market forecast to grow 7.1% CAGR (2019-2027)[1]
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One-in-10 adults predicted to develop diabetes by 2040 (642 million)[2]
The Glycemic Index (GI) is a tool that measures how carbohydrates affect blood glucose levels based on a scale of 0-100.
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Low GI food recognised as being is part of solution to the health crisis
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Current low GI foods have poor taste and mouthfeel
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Australia is the world leader in low GI research
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Holista have a full range of low GI foods, tested and validated by the University of Sydney
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1 Coherent Market Insights: https://www.coherentmarketinsights.com/market-insight/weight-loss-and-obesitymanagement-market-3448
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2 Diabetes Australia: https://www.diabetesaustralia.com.au/about-diabetes/diabetes-globally/
Foods with high GI readings causes blood sugar levels to spike. Low GI foods release sugars more slowly and is more beneficial to the body as it helps to manage weight, diabetes and other health issues.
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Investor Presentation April 2021
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Attractive Market Opportunity GI Lite[TM] filling an unmet need – healthy & same great taste
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Patented GI Lite[TM] is a Low GI-Certified, non-GMO, clean label (all-natural) premix
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All ingredients sustainably harvested in natural conditions
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Can be added to all white flour-based products (e.g. all bread, pizza, muffin/cake and pasta doughs)
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Unique as it’s made from four plant-based ingredients: Okra, Fenugreek, Lentils and Barley
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Does not affect taste or mouthfeel of original food product
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Independent testing by University of Sydney showed GI Lite[TM] lowered the GI in food by 30% to 40%
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Muffins, white breads and pasta made with GI Lite[TM] scored a GI reading of 48, 46 and 38 respectively – the lowest in the world
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Investor Presentation April 2021
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Better Sugar Substitute 80Less[TM] extra sweet opportunity
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Low GI and low-calorie sugar substitute used in food manufacturing
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Five times stronger than regular sugar and lowers calories by 80%
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No artificial aftertaste and taste like sugar at all temperatures
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Easy reformulation and shelf stable in liquids or solids
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Can be used in desserts, tapioca pearls (bubble tea) and sweet drinks
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Drinks using 80Less[TM] can be labelled “sugar free” and avoid potential sugar taxes (<0.5g FDA)
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Storage and transportation cost savings for F&B manufacturers
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9 Investor Presentation April 2021
Unique Properties of 80Less[TM] Full Sugar Reduction Solution
Products using 80Less[TM] use five times less to sugar achieve the same level of sweetness
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Unique ingredients that give 80Less[TM] its advantages over other sugar substitutes
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Sugar stevia (3D* balanced)
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Sugar sucralose (3D* balanced)
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Allulose (not labelled as a sugar in the US)
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Tagatose
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Arabinose
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Sugar/ Starch blocker (seaweed)
*3D = 3 Dimension means Taste, Sight and Aroma of food
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10 Investor Presentation April 2021
Commercial Partnerships Global sales set to accelerate
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Costanzo’s Bakery
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•A leading North American supplier of baked goods to major supermarkets
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•Signed 3-year agreement (Nov 2020) to buy minimum ~US$2m a year of GI Lite[TM]
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•GI Lite[TM] white breads to be sold at supermarket chains like Piggly Wiggly, Wegmans, Tops, etc
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Kawan Food
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•Listed on the Malaysia Stock Exchange
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•Using GI Lite[TM] to make healthier Asian flatbreads (chappati & roti canai)
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•Developing low-GI tortillas with Holista
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Rex Industry
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•Signed five-year deal to purchase 80Less[TM] in 2020
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•80Less[TM] to be used in ~8 sugar-free beverages for Singapore and Malaysia markets
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Investor Presentation April 2021
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Infection Control Solutions Continued growth post COVID-19
NatShield[TM] and PathAway® All-natural, gentle, effective and long lasting
NatShield[TM] uses PathAway® as the active ingredient PathAway® is a plant-based, alcohol-free and non-toxic
Independently tested to kill 99.9% of SARS-CoV-2 within two minutes
Also effective against H1N1, Mycobacterium tuberculosis, MRSA, Clostridium difficile, etc. Gentle on skin and safe for all age groups, including expectant and nursing mothers
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Investor Presentation April 2021
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Partnership with GICC Pathway to global markets
Global Infection Control Consultants LLC (GICC) is a South Carolina US-based that company developed PathAway® and the M3® System
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Signed exclusive distribution rights for PathAway® to Asia, Oceania and Europe
Forming a JV with GICC to manufacture and sell M3® outside of the US
Acquired Protectene® (gentler version of PathAway® for nasal balm) from GICC in 2020
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Investor Presentation April 2021
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M3® HVAC System Explained Controlling airborne viruses
M3® can be used in HVAC and fogging systems to disinfect indoor/outdoor areas
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M3® attaches easily to the central air-conditioning system of a building
M3® dispenses botanical disinfectant (PathAway® or Bioesque*) into the ventilation system at pre-set intervals
M3® measures monitors & contains airborne (aerosol) viruses, pathogens and other biological contaminants
Cost effectively limits the spread of COVID-19 in hotels, offices, factories and other high density built-up environments
*Bioesque is a “List N” certified disinfectant supplied by Laboratoire M2. PathAway® is currently undergoing List N certification and Holista/GICC will stop using Bioesque once PathAway® is on the US EPA’s List N.
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15 Investor Presentation April 2021
Nasal Balm Development Protecting the nose - the weakest link to viruses
The nose is the most common entry point for viruses and bacteria (including the COVID-19 virus) to get into our cells
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Patented balm that protects the nose for up to 12 hours
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Made from all-natural ingredients
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• Balm is odorless and colorless
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Non-irritant and no known side-effects
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Formulation stable at wide range of temperatures and under sunlight
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Expected to launch in Q3 2021 pending final testing and approvals
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16 Investor Presentation April 2021
US Sales Rebounding Strongly iGalen restructure and relaunch
iGalen is Holista’s global distribution partner
iGalen Month-to-Month Sales (US$)
- iGalen relaunched in August 2020
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200,000
Sales growing
140,000
by 45% CAGR
70,000
50,000
40,000
20,000
15,000
Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
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Strong sales recovery with good margin driven by creative marketing and use of key influencers (e.g. former world boxing champions)
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Holista’s products appeared on popular Podcasts in the US including “Live with Les Brown” Monthly sales growth of 45% CAGR >US$500k (~A$655k) total revenue from iGalen alone in just seven months
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17 Investor Presentation April 2021
Solid Platform for Growth Stronger sales expected in 2021
2021
Introduction of new Protectene[TM] nasal balm product
FY2020 sales totalling $665k consisting of NatShield[TM] hand sanitisers sold in North America and Asia
Launch into government/enterprise market with M3® solution outside of North America Continuing strong growth momentum for North America via iGalen
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18 Investor Presentation April 2021
Dietary Supplements Strong Cash Generator
Market Leader
Healthy market dynamics
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One of the largest supplements supplier in Malaysia with market leading brands Business generates ~70% of group revenue (FY20: $5.2m)
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Best selling and market leading products include LACTO-5® and Pristin® Launching pro immunity products including precursor and chewable gummies for children this year Global market growing at 8.6% CAGR* from 2021-2028
- Source: https://www.grandviewresearch.com/industry-analysis/dietary-supplements-market
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20 Investor Presentation April 2021
Improving Outlook Solid base to fund growth in other divisions
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COVID-19 enhancing online sales
Demand rebounding since start of 2021 (Q1 2021 growth ~30%)
Improved sales expected as pandemic eases
“Cash cow” division for the group
Consumers’ continued focus on health & wellbeing post COVID are positive trends
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21 Investor Presentation April 2021
Ovine (Sheep) Collagen Unlocking value in the business for shareholders
Unique Collagen Offering Why Holista’s product is highly prized globally
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Australia is certified disease free by the US Department of Agriculture (USDA)
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Disease free status is very important in medical grade collagen
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The Company extracts collagen from sheepskins via patented technology
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Production has recommenced post COVID-19
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New interest in China due to changes in Chinese regulatory environment in banning unsafe synthetic substances for use in cosmetic application.
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Total production capacity at WA plant is to expand to 48 tonnes/year
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23 Investor Presentation April 2021
Unlocking Value Options under review
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Sustain
Continue to produce and market unique collagen offering to the world
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Upgrade
Produce medical-grade collagen (market price ~A$540k per kg vs. cosmetic grade at ~A$75 per kg) to capitalise on large new markets
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Undertaking
strategic review
of the business to
unlock value for
shareholders
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Licence
Develop food grade collagen and licence out production to leading industry players
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24 Investor Presentation April 2021
Outlook Roadmap to growth
Milestones The next 12-months
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New immunity
Costanzo’s to enhancing Completing
launch world’s Launch nasal supplements – Launch of development
lowest GI white balm and wipes Pristin® 80less™ cocoa of water
bread using GI chewable milk soluble
Lite [TM] omega-3 Vitamin D
gummies
Q4
Q2 Q3
FY21
FY21 FY21
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26 Investor Presentation March 2021
Building Future Value Next-generation of innovative products
Water Soluble Technology
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Vitamin D
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Water Soluble Turmeric and Cinnamon
Nano Collagen
Food Grade Collagen
NatShield™cannister sanitiser delivery
Test-kits and mobile APPs (for track and trace)
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27 Investor Presentation April 2021
The path forward An improved FY21 outlook
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✓ Trading conditions in start of FY21 showing marked improvement over FY20
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✓ Global trends supportive of further growth over medium- to longer-term
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✓ Profit margins expected to improve on FY20 due to cost optimisation
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✓ Significant one-off impact in FY20(e.g. provisioning) not expected to be repeated
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✓ Strong growth momentum in Healthy Food Ingredients and Infection Control Solutions to continue
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✓ Sufficiently funded to execute on current growth plans
Healthy Food
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US sales growing via Costanzo’s
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Orders from Rex and Kawan to accelerate post COVID
Dietary Supplements
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Expected recovery from COVID impact
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Additional growth from launch of new product
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Will remain significant cash generator
Infection Control
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Sales of sanitisers expected to continue to grow
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Additional growth opportunities from new products (M3, Nasal Balm)
Ovine Collagen
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Improved results in FY21 expected
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New opportunities to be finalised in 2021
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Reviewing strategic market and product options to unlock value for shareholders
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28 Investor Presentation April 2021
Board of Directors & Advisors Expertise to lead the group forward
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Daniel O’Connor
Chan Heng Fai Non-Executive Director
Rajen Manicka MD & CEO
Non-Exec Chairman
Over three decades in Dr Rajen spent nine Restructured over 35 the commercialisation years working for Big companies in the past of intellectual property Pharma including 40 years. In 1987, he and has worked with Roche and CIBA acquired American R&D teams across Asia, Pharmaceuticals in Pacific Bank, a fullNorth America, and various capacities service commercial Australia. He is the including product and bank, out of Consultant Principal of marketing manager. bankruptcy. He the on-line coaching He is a prominent recapitalized and and mentoring group figure in the Malaysian grew the bank’s Incubate IP and is a biotech industry and is operations. Under his member of the UN Task a member of the guidance, it became Force on Innovation Malaysian Ministry of a NASDAQ high asset and Competitiveness. Health Standing quality bank before it Committee for was merged into Traditional Medicine. Riverview Bancorp Inc.
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Blair Michelson Non-Executive Director
Over 30 years experience as a consultant in the areas of risk, compliance, governance and asset management across a several industries in Australia and overseas. He is currently the Director/Proprietor of two boutique consultancies, and has previously consulted to Government, Not-ForProfit and public clients.
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Arthur Martin Advisor
Roscoe Moore Advisor
Founder and President Dr Moore served as of GICC. Dr Martin Assistant US Surgeon invented PathAway® General, Rear Admiral and has conducted of U.S. Public Health over 4,000 assessments Service, Chief for chem biological, Epidemiologist with the bacterial and viral Center for Device and contamination. He Radiological Health at pioneered the the U.S. FDA and Senior concept of Epidemiologist within “Prophylactic Air the National Institute Management for for Occupational Pathogen Control” Safety and Health, and has an extensive Center for Disease list of publications and Control (CDC). peer reviewed awards.
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Investor Presentation April 2021
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Thank You
For further information, please contact: Corporate Matters: [email protected] General Enquiries: [email protected] Investor/Media Relations: Brendon Lau (m: 0409 341 613, e: [email protected])
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