PEAK PROCESSING LIMITED — Investor Presentation 2021

Jul 26, 2021

ALTHEA GROUP HOLDINGS LTD (ASX:AGH)

==> picture [105 x 61] intentionally omitted <==

==> picture [201 x 47] intentionally omitted <==

==> picture [145 x 47] intentionally omitted <==

==> picture [159 x 35] intentionally omitted <==

INVESTOR PRESENTATION

OVERVIEW

==> picture [113 x 66] intentionally omitted <==

Althea Group Holdings Ltd (ASX:AGH) is a global leader in the manufacturing, sales and distribution of cannabis-based medicines and recreational cannabis products

CANNABIS-BASED MEDICINES

==> picture [73 x 43] intentionally omitted <==

==> picture [142 x 34] intentionally omitted <==

• The only Software as a Medical Device included on the Australian Therapeutic Goods Register by a medicinal cannabis company licensed by the Australian Office of Drug Control

• Althea is a global leader in the sales and distribution of cannabisbased medicines

• Operating in 6 markets across the globe

• More than 19,250 registered patients

• Pivotal to Althea’s product positioning, with thousands of users accessing the platform

• Growing patient base, generating recurring revenue

Althea is a global leading medicinal cannabis brand

==> picture [96 x 31] intentionally omitted <==

• 100% owned AGH subsidiary

• One of the UK’s leading medicinal cannabis clinics with more than 560 registered patients

• Online telehealth consultations, supporting patients with Chronic Pain, Anxiety, Sleep Disorders and more

RECREATIONAL CANNABIS PRODUCTS

• 100% owned AGH subsidiary

• Peak is a contract manufacturer of legal adult-use cannabis products, based in Canada

• Peak offers brand partners the opportunity to innovate through its industry leading cannabis product development, processing and manufacturing capabilities

• Servicing the USD$2.5B[1] legal cannabis market in Canada

• Peak manufactures selected Althea medicinal cannabis products

One of Canada’s largest recreational cannabis product manufacturers

O V E R V I E W

1. The North American Cannabis Report 2nd Edition, 2020 Prohibition Partners p77 (viewed 20/05/21)

GLOBAL OPERATIONS

markets worth USD$20.5B[1]

==> picture [112 x 152] intentionally omitted <==

----- Start of picture text -----

Cannabis-based
Medicines
Recreational
Cannabis Products
Manufacturing
----- End of picture text -----

1. Global Cannabis Market (2020 to 2026) - Emergence of Cannabis Legalization in Asia-Pacific Presents Opportunities - ResearchAndMarkets.com Global Cannabis Market (2020 to 2026) - Emergence of Cannabis Legalization in Asia-Pacific Presents Opportunities - ResearchAndMarkets.com February 16, 2021 (viewed 20/05/21)

O V E R V I E W - P R O D U C T S

Cannabis-based Medicines

Althea offers a comprehensive range of full-spectrum medicinal cannabis products, including cannabis oil and dried flower preparations

==> picture [145 x 181] intentionally omitted <==

==> picture [80 x 168] intentionally omitted <==

==> picture [76 x 168] intentionally omitted <==

==> picture [77 x 169] intentionally omitted <==

Overseas products shown (not Australian products) for illustration purposes only

==> picture [55 x 41] intentionally omitted <==

Recreational Cannabis Products

Peak offers expert formulation and manufacturing of adult-use cannabis products, including cannabis-infused beverages, concentrates, vapes, powders, topicals and creams

==> picture [480 x 204] intentionally omitted <==

O V E R V I E W – B U S I N E S S M O D E L

Cannabis-based Medicines

Althea operates a pharmaceutical business model, with a focus on:

==> picture [55 x 41] intentionally omitted <==

Recreational Cannabis Products

Peak has the tools and resources to help our customers get unique, high-quality cannabis products onto retail shelves quickly:

Research & Development

Distribution

• Delivered to and sold via Pharmacy (Rx)

• Product development

• Targeting specific illnesses

Medical Affairs

• Quality and Regulatory compliance

• Medical Education

Commercial

• Althea’s own in-field pharmaceutical representatives engaging with doctors

• Patient prescription (Rx) generation

==> picture [110 x 27] intentionally omitted <==

----- Start of picture text -----

Market insights &
Category analysis
----- End of picture text -----

Product Development

==> picture [225 x 171] intentionally omitted <==

Warehouse &

• In-house formulation expertise

Distribution

Quality & Regulatory support

Mass Production

• 3,716 square metre state-of-the-art cannabis processing & manufacturing facility

• To ensure products meet highest standards

I N V E S T O R P R E S E N TAT I O N

STRATEGY

==> picture [113 x 66] intentionally omitted <==

S T R AT E G Y

Cannabis-based Medicines

Medicinal cannabis products are supplied to patients via prescription

Recreational Cannabis Products

Manufacturing recreational cannabis products to be purchased by adult consumers in retail stores

› SALES & MARKETING

Increasing patient numbers via:

• Our experienced pharmaceutical representatives engaging with doctors in the field

• Our wholly-owned private medicinal cannabis clinic, MyAccess Clinics

› SCALED FOR GROWTH

• Leverage global footprint and early mover advantage in key markets

› HIGH MARGINS & RETURNS

• Deliver premium margins, recurring revenue and consistent revenue growth

• › CONSUMER PACKAGED GOODS

Generate substantial revenue from the rapidly growing, high margin, Canadian legal cannabis market

• › LEVERAGE LEADING BRAND EQUITY

Establish partnerships with legacy Consumer Packaged Goods (CPG) companies to launch blockbuster brands

• › PRODUCT DEVELOPMENT &

COMMERCIALISATION

Unique production capabilities required to bring to market highly innovative products

BRAND BUILDING

A big pharma approach

==> picture [221 x 41] intentionally omitted <==

----- Start of picture text -----

MEDICAL EDUCATION
----- End of picture text -----

Althea’s expert pharmaceutical representatives educating doctors in the field

==> picture [259 x 239] intentionally omitted <==

----- Start of picture text -----

DATA
----- End of picture text -----

Althea Concierge™an industry leading medical app to manage doctor and patient relationships PRODUCT QUALITY

Pharmaceutical grade products, readily available for patients

Althea Concierge™reports real world evidence about the patient's treatment back to the doctor

Doctors write prescriptions for Althea products

Consistent and reliable supply chain - important to doctors and patients

S T R AT E G Y

HEALTHCARE PROVIDER

Medicinal cannabis clinic

==> picture [244 x 178] intentionally omitted <==

----- Start of picture text -----

OFFERING MORE
----- End of picture text -----

Millions of people across the UK suffer from illnesses such as Chronic Pain, Anxiety and Sleep Disorders

UNIQUE PATIENT EXPERIENCE

DELIVERING RESULTS

MyAccess Clinics qualified Healthcare Professionals providing simplified access to medicinal cannabis treatments

Over 560 patients currently registered, with strong monthly growth

• A panel of Specialists treating patients with

• medicinal cannabis for Creating a platform Chronic Pain, Anxiety, for recurring revenue PTSD, Sleep Disorders and more

• Online telehealth consultations leading to prescriptions for Althea products

• Medicines delivered directly to the patient’s door

Simple end to end process Large addressable market

Revenue growth

S T R AT E G Y

IN A RECREATIONAL CANNABIS MARKET

MARKET ANALYSIS

• Supporting customers with identifying the Canadian recreational cannabis market opportunity

• CPG companies looking to diversify their primary businesses (i.e. big alcohol, big tobacco, food and beverage, cosmetics etc.)

• Assisting licenced cannabis producers with product innovation

PRODUCT DEVELOPMENT

• Expertise in developing unique cannabis product formulations

• Mass production capabilities

COMMERCIALISATION

• Canadian provincial board (wholesaler) listing support

• Distribution throughout Canada

Delivering complete cannabis product solutions

S T R AT E G Y

I N V E S T O R P R E S E N TAT I O N

RECENT HIGHLIGHTS

==> picture [113 x 66] intentionally omitted <==

R E C E N T H I G H L I G H T S

Cannabis-based Medicines

• Continued patient growth: Australia 17,650+ patients | UK 1,600+ patients

• Althea Concierge™fuelling Healthcare Professional (HCP) growth: Over 1,100 prescribing HCPs

• Sales team expansion: Expert pharmaceutical representatives continuing to expand reach and education of doctors across all jurisdictions

• Global expansion: Germany initial patients prescribed - May 2021| South Africa initial product shipment - June 2021

• Portfolio growth: Launch of 20ml “flexi” range in Australia | Solid New Product pipeline

==> picture [184 x 343] intentionally omitted <==

Recreational Cannabis Products

• A Leading Contract Manufacturer: Offering an innovative portfolio of cannabis-infused beverages, cannabis extracts & concentrates, powders, topicals and small liquids for brands looking to enter the legal cannabis market

• Growing Brand Partner Portfolio: Commercial manufacturing agreements entered with Cronos, 48North (Hexo), WeedMD, Tinleys, Collective Arts, EKS and more

• Ontario Cannabis Store: Peak has already achieved 7 product listings with the Ontario Cannabis Store, Canada’s largest province by cannabis sales and population[4]

I N V E S T O R P R E S E N TAT I O N

INVESTOR UPDATE

==> picture [129 x 76] intentionally omitted <==

Ending 30 JUNE 2021 STRONG GROWTH

==> picture [950 x 412] intentionally omitted <==

----- Start of picture text -----

+128%
12,000,000
1 1
10,000,000 $11.55M +128% $1.55M
On FY 2020
Revenue Record revenue
8,000,000 FY 2021 in June 2021
6,000,000
4,000,000
GROSS MARGIN
2,000,000
Cannabis-based medicines Recreational cannabis
products
-
FY19 FY20 FY21
1 1 2
A U S T R A L I A C A N A D A 52% 49% 43%
Actual Actual Expected FY22
U N I T E D K I N G D O M G E R M A N Y
https://wcsecure.weblink.com.au/pdf/AGH/02272938.pdf 1. Based on unaudited FY21 results 2. Expected in FY22 based on current forecast
----- End of picture text -----

Australia - Continued Growth

==> picture [892 x 377] intentionally omitted <==

----- Start of picture text -----

Annual Revenue - Australia
CONTINUED GROWTH UNDERPINNED BY BIG PHARMA APPROACH
$9,000,000
•
First sale May 2018
$8,000,000
• $8.5M [1] revenue FY2021
•
52% Gross margin
$7,000,000
• Over 25% Market share
• Growing and sustainable revenue base, via large prescriber network $6,000,000
•
Althea Concierge™providing competitive advantage and leading to
enhanced brand loyalty $5,000,000
$4,000,000
$3,000,000
$2,000,000
52% $8.5M1 +25%
$1,000,000
Gross FY2021 Market
Margin Revenue Share $0
FY2018 FY2019 FY2020 FY2021
----- End of picture text -----

I N V E S T O R U P DAT E

1. Based on unaudited FY21 results

– United Kingdom A Strong Base

EARLY MOVER ADVANTAGE PRIMED FOR ACCELERATED GROWTH

• First sale late 2019

• $1.1M[1] revenue FY2021

• 49% Gross margin

• 32% Market share

• UK operations have continued to expand steadily

• Underpinned by ongoing education of UK Specialists

• Experienced pharmaceutical representative team

• UK localisation of Althea Concierge™

• Expansion of second channel – MyAccess Clinics

MYACCESS CLINICS GROWTH

==> picture [320 x 83] intentionally omitted <==

----- Start of picture text -----

Expanded patient
560+ capacity with more
Specialist prescribers
Registered
Patients
----- End of picture text -----

==> picture [68 x 40] intentionally omitted <==

==> picture [413 x 416] intentionally omitted <==

----- Start of picture text -----

Annual Revenue - United Kingdom
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
FY2019 FY2020 FY2021
UK patient growth reflecting similar growth pattern to the
Australian experience
17% 65%
Average MoM patient booking Returning patients, establishing
to prescription growth recurring revenue stream
----- End of picture text -----

I N V E S T O R U P DAT E

1. Based on unaudited FY21 results

==> picture [585 x 102] intentionally omitted <==

----- Start of picture text -----

–
Canada Rapid Growth
----- End of picture text -----

• First sale October 2020

Annual Revenue - Canada

• $1.52M[1] revenue FY2021

• Granted its Standard Processing license from Health Canada in September 2020

• Peak has already executed several contract manufacturing agreements with a selection of well-known cannabis and consumer brands

• Peak manufactures selected Althea medicinal cannabis products

==> picture [61 x 61] intentionally omitted <==

==> picture [54 x 56] intentionally omitted <==

==> picture [82 x 46] intentionally omitted <==

==> picture [65 x 51] intentionally omitted <==

==> picture [76 x 38] intentionally omitted <==

==> picture [78 x 41] intentionally omitted <==

==> picture [374 x 217] intentionally omitted <==

----- Start of picture text -----

$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
FY2020 FY2021
----- End of picture text -----

==> picture [283 x 78] intentionally omitted <==

----- Start of picture text -----

Gross margins of
approximately Peak is expected to
become EBITDA positive
by the end of 2021
43%
----- End of picture text -----

50+ SKUs either ranged or under development

I N V E S T O R U P DAT E

1. Based on unaudited FY21 results

I N V E S T O R P R E S E N TAT I O N

GROWTH DRIVERS

==> picture [129 x 76] intentionally omitted <==

G R O W T H D R I V E R S

Cannabis-based Medicines

• Deliver incremental growth in current and nascent markets – Australia, UK, Germany and South Africa

• A measured push into new markets, focusing on a widening Europe

• Extensive new product development program underway designed to increase uptake

Recreational Cannabis Products

• Peak Processing Solutions has a strong pipeline of new customers

• Peak Processing Solutions to develop and produce a portfolio of ‘in-house’ cannabis brands

• Scope for more countries to legalise recreational cannabis use, including the USA

• Scaled for growth – bottom line profitability improves as sales increase

MEDICINAL CANNABIS IN EUROPE

==> picture [117 x 384] intentionally omitted <==

----- Start of picture text -----

United
Kingdom
Market forecast
£1.3B [1]
by 2024
Germany
Estimated market
value will be
€840M [2]
by 2024
France
Total
Population
67.06M
----- End of picture text -----

==> picture [526 x 540] intentionally omitted <==

----- Start of picture text -----

EUROPEAN MARKET IS RAPIDLY GROWING
•
Europe will be the world’s largest medicinal
cannabis market in next 5 years
ADDRESSABLE MARKET
•
Forecasted addressable market of 10.2M patients with a
total addressable market of €3.2B [3] by 2025
• Projected CAGR of 29.6% [3] in 2025 from 2021
FRENCH MEDICINAL CANNABIS TRIAL
•
Althea and Laboratoires Bouchara Recordati (LBR) selected to
supply the French National Agency for Medicines and Health
Products Safety (ANSM), with second source products for their
national pilot program
ALTHEA PERFECTLY POSITIONED
•
Althea established a European headquarters in London in 2019
•
CEO relocated to the UK in 2020 to oversee expansion
•
Althea has an early mover advantage in Europe, with existing
operations in its three largest markets: Germany, UK and France
1. The UK Cannabis Report 2019, Prohibition Partners p46 (viewed 20/05/21)
2. The European Cannabis Report Edition 6, 2021 p94 Prohibition Partners (viewed 20/05/21)
3. The European Cannabis Report Edition 6, 2021 p93 Prohibition Partners (viewed 20/05/21)
----- End of picture text -----

G R O W T H D R I V E R S

==> picture [87 x 88] intentionally omitted <==

Andrew Newbold | Chairman & Independent Non-Executive Director

• Extensive experience as director of numerous private companies and notfor-profit organisations

• 20 years’ experience as a commercial lawyer and has played an integral role in the development of various businesses.

Joshua Fegan | Chief Executive Officer & Founder

• Founder of Althea Group with extensive experience in business building, sales and marketing

• Proven business and strategy skills and previously held numerous senior management roles at national value-based retailer, Strathfield Group

Penny Dobson | Independent Non-Executive Director

• Accomplished business executive in healthcare industry and trained pharmacist in New Zealand, three decades at global pharma Merck & Co, in a variety of commercial roles

• Currently Deputy Chair of the Australian Nuclear Science and Technology Organisation Board, and a non-executive director at Invetus Pty Ltd

Alan Boyd | Independent Non-Executive Director

• Chief Financial Officer and Company Secretary of Ridley Corporation, an ASX-listed provider of high-performance animal nutrition solutions

• Alan has occupied the same position with listed biotechnology companies Avexa Limited and Zenyth Therapeutics Limited

I N V E S T O R P R E S E N TAT I O N

==> picture [52 x 41] intentionally omitted <==

Legal Disclaimer

Althea Group Holdings Limited ACN 626 966 943 (Company) has prepared this presentation (Presentation) dated 27 July 2021 to provide current and prospective investors in the Company with an update in relation to the Company, its subsidiaries and their activities. The information in this Presentation discusses the Company’s operations and product range. It is not intended as a promotion of the Company’s products. This Presentation contains summary information about the Company, its subsidiaries and their activities which is current as at the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in the Company or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth). This Presentation has not been and will not be filed with or approved by any regulatory authority in Australia, including the Australian Securities and Investments Commission (ASIC), or any other jurisdiction. The historical information in this Presentation is, or is based upon, information that has been lodged with the Australian Securities Exchange (ASX) and released on the ASX Market Announcements Platform. This Presentation should be read in conjunction with the Company's other periodic and continuous disclosure announcements which are available at www.asx.com.au (Company Code: AGH) or www.althea.life.

This Presentation does not constitute and should not be considered as an offer, invitation or recommendation to subscribe for or purchase any security in the Company in any jurisdiction. In particular, this presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The Company’s securities have not been, and will not be, registered under the U.S. Securities Act of 1993 (Securities Act) or the securities laws of any state or other jurisdiction in the United States and may not be offered or sold in the United States without registration except in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and any other applicable U.S. State securities laws. Neither this Presentation nor anything contained in it forms the basis of any contract or commitment and no agreement to subscribe for securities will be entered into on the basis of this Presentation. This Presentation does not take int o account any recipient’s individual investment objectives, financial situation or particular needs. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own investment objectives, financial situation and needs and seek legal, accounting and taxation advice appropriate to their jurisdiction. The Company is not licensed to provide financial product advice in respect of any security in the Company.

To the maximum extent permitted by law, no representation, warranty or undertaking (express or implied) is made, and no responsibility is accepted by the Company or any of its affiliates, related bodies corporate, partners, shareholders, directors, officers, employees, representatives, consultants or advisers or any other person (Parties) as to the adequacy, accuracy, completeness or reasonableness of any statement or any of the information contained in or referred to in this Presentation or as to any other related matter. To the maximum extent permitted by law, none of the Parties takes any responsibility for any loss or damage suffered as a result of any inadequacy, incompleteness or inaccuracy in any such statement or information. To the maximum extent permitted by law, the Parties do not accept any liability to any person for any direct, indirect or consequential loss or damage arising from the use of this material. This Presentation is not a recommendation by any of the Parties that any recipient invest in the Company.

Past performance information provided in this presentation may not be a reliable indication of future performance. This Presentation contains certain forward-looking statements and comments about future events. Forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies, and other factors, many of which are outside the control of the Company, are subject to change without notice, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct, and which may cause the actual results or performance of the Company to be materially different from any results or performance expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this Presentation. Forward looking statements should not be relied on as an indication or guarantee of future performance. No representation, warranty or undertaking is made that any projection, forecast, assumption or estimate contained in this Presentation should or will be achieved. Recipients must conduct their own independent investigation, evaluation and analysis of the matters and data set out in this Presentation and rely entirely on such investigation and analysis. Recipients must form their own opinion as to whether or not to enter into any arrangements with the Company. The distribution of this document in jurisdictions outside Australia may be restricted by law. If you are outside Australia, you may not be a person to whom an offer of securities in the Company may lawfully be made under the applicable laws in the jurisdiction in which you are situated without registration, lodgment or approval of a formal disclosure document or other filing in accordance with the laws of that foreign jurisdiction. Any such restrictions should be observed. By accepting this Presentation, you agree to be bound by the foregoing limitations and conditions.