LARK DISTILLING CO. LTD — Investor Presentation 2021

Jul 5, 2021

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Valuation of Litres Under Maturation

ASX Announcement – 6 July 2021 Lark Distilling Co. Limited

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VALUE OF WHISKY IN BARRELS
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EXECUTIVE SUMMARY

• } THE PURPOSE OF THIS PRESENTATION IS TO PROVIDE GUIDANCE ON THE VALUE OF WHISKY UNDER MATURATION

• } LRK RESTATES THE PHYSICAL LITRES OF WHISKY UNDER MATURATION QUARTERLY (4C)

• } BUT ONLY RESTATES THE VALUE OF THOSE INVENTORIES ANNUALLY BASED ON A PRIOR YEAR CLOSING NSR PER LITRE CALCULATION

• } AT 30 JUNE 2021, LRK HAD A TOTAL OF 1,093,073 LITRES OF WHISKY UNDER MATURATION @ 43% ABV (UP 54% YOY)

• } AT 30 JUNE 2021, LRK ACHIEVED AN AVERAGE NET SALES VALUE OF $216 PER LITRE (UP 55% YOY)

• } THEREFORE THE VALUE OF WHISKY UNDER MATURATION AT THE END OF ……

• } F21 ACTUAL = $236,103,719 (UP 139% YOY)

• } F22 FORECAST = $388,800,00 (UP 55% YOY)

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VALUE OF WHISKY IN BARRELS
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WHISKY UNDER MATURATION AS AT 30 JUNE 2021

• } At 30 June 2021, LRK Had a Total of 1,093,073 Litres of Whisky Under Maturation @ 43% ABV

} LRK is Forecasting to Grow to Over 1,800,000 Ltrs by the End of F22 (Up 65% from F21)

• } Historical Increases Have Been Largely Through Capex and Efficiency Gains At Bothwell and Cambridge Distilleries

} In F22 Over 350,000 Litres Will Be Produced Externally Under Contract and the Supervision of LRK

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VALUE OF WHISKY IN BARRELS
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F21 NET SALES VALUE PER LITRE

} Arguably The Most Important Metric At LRK is the Net Sales $ per Litre We Generate From Our Whisky

} The Board Has Engaged KPMG to Validate the Methodology Used to Derive the Updated Net Sales per Litre

} In An Environment of Limited Mature or Finished Whisky LRK Must Strategically Maximise It’s NSR $ per Ltr

• } This is Achieved by How We Manage Two Factors:

1. Channel Mix; and/or

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2. Product SKU Type / Pricing Mix

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VALUE OF WHISKY IN BARRELS
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F21 SALES CHANNEL MIX

• } During F21 The Following Changes Were Implemented to Improve Channel Mix

• } Replaced Mainland Distributor With Our Own Sales Team (Still Ongoing)

• } Upgraded Our Capability in Online and Hospitality : People, Process, Experience, Infrastructure

• } Navigated Through a COVID Shutdown of All Hospitality Venues For Most of H1 F21

• } Designed Product / Developed Brand Experiences for Direct to Consumer (DTC) Execution

• } The Above Has Resulted in DTC Moving to 42% of the NSR (From 32%) From Only 24% of the Litres Sold

• } We Expect in F22 That The % of Ltrs and Value for DTC Will Be Constant

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VALUE OF WHISKY IN BARRELS
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F21 PRODUCT SKU TYPE / PRICING MIX

• } During F21 The Following Changes Were Implemented to Improve Product SKU Type / Pricing Mix

• } Expansion of the Lark Limited Release Programme (New Releases and Upscaled Anniversary Releases)

• } Expansion of Core Programme to 3 SKU’s (Classic, Cask Strength, Double Tawny)

• } Launch of Lark Legacy @ $1,800 + per Bottle

• } Launch of Lark Rare Cask Series @ $500 + per Bottle

• } Elimination of Distributor Margin (Offset By Increased Sales Related Overheads)

• } The Lark Portfolio Has Addressed Both The Entry Price Point (Symphony @ $139) While Successfully Introducing Collections Starting at $250 and Above

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$299.00 $299.00 $99.00 $279.00 $1200.00
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VALUE OF WHISKY UNDER MATURATION AS AT 30 JUNE 2021

} In F21 Lark Has Achieved a Net Sales Value Per Litre of $216 (In F20 This Was $139 per Litre)

F21 ACTUAL	Closing Litres Under Maturation @ 30 June 2021 1,093,073 Multiplied by the NSR $ per Litre for F21 $216 % Change in $’s per Litre YOY + 55% YOY Valuation of Whisky At Maturity @ 43% ABV $236,103,791
me No Price Increases / No Change in Channel Mix / No Change in Product SKU Price Mix esents a 55% Improvement on the Previously Reported $139 per Ltr 2 the Business Will Produce Approximately 13,000 Ltrs per Week and Reach 1.8m Litres Under
F22 FORECAST	Closing Litres Under Maturation @ 30 June 2022 Forecast 1,800,000 est. Multiplied by the NSR $ per Litre for F21 $216 % Change in $’s per Litre YOY No Change Est. Valuation of Whisky At Maturity @ 43% ABV $388,800,000

} Assume No Price Increases / No Change in Channel Mix / No Change in Product SKU Price Mix

} Represents a 55% Improvement on the Previously Reported $139 per Ltr

} In F22 the Business Will Produce Approximately 13,000 Ltrs per Week and Reach 1.8m Litres Under Maturation

• } This Equates to An Additional $3m per Week of Whisky Value Based on an NSR of $216 at Maturity

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VALUE OF WHISKY IN BARRELS
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VALUE OF WHISKY UNDER MATURATION AS AT 30 JUNE 2021

} Before Assigning Any Value to Brand or Goodwill, The Lark Whisky Under Maturation is Valued Today at $236m

} Assuming LRK Maintains $216 NSP/Ltr The Value of Whisky Under Maturation At The End of F22 Will Be $388m

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DISCLAIMER

The information contained in this presentation has been prepared by Lark Distilling Co. Limited (“LARK”). This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any securities in LARK. This presentation has been made available for information purposes only and does not constitute an offering document of any type.

This presentation may contain certain forward looking statements, projections, strategies and corporate objectives. Such forward looking statements/projections are estimates for discussion purposes only and should not be relied upon as representation or warranty, express or implied, of LARK. They are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors many of which are beyond the control of LARK. The forward looking statements/projections are inherently uncertain and may therefore differ materially from results ultimately achieved.

While the information contained in this presentation has been prepared in good faith, neither LARK, nor any of its respective directors, officers, agents, employees or advisors make any representation or give any warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information, forward looking statement, opinions and conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law, LARK nor any of its respective directors, officers, employees, agents or advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of the information or for any of the opinions contained in this presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this presentation. LARK disclaims any obligation to update or revise any forward looking statements based on new information, future events or otherwise except to the extent required by applicable laws.

Investors should exercise caution when dealing in the securities of LARK. In the case of any doubt, they should seek their own professional advice and consult with their own bank manager, stockbroker, solicitor, accountant, tax adviser or other professional adviser.

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LARK INVESTOR WEBINAR

Investors are invited to join a live webinar for information purposes hosted by Managing Director Geoff Bainbridge on Tuesday 6[th] July at 5pm Australian Eastern Standard time.

Please follow this link :

https://us02web.zoom.us/j/82811260109?pwd=cFljMWx2eVRMM2ZUV0d5YklDcjVlZz09

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