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ROOLIFE GROUP LTD — AGM Information 2022
Nov 28, 2022
65712_rns_2022-11-28_ca7e1fc1-54c5-4fa5-be37-6ea5828f8485.pdf
AGM Information
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ANNUAL GENERAL MEETING PRESENTATION
ASX:RLG 29 November 2022
ASX:RLG 1
DISCLAIMER
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This document has been prepared by RooLife Group Limited ACN 613 410 398 (Company). This document does not constitute an offer, invitation, solicitation or recommendation to acquire shares in the Company. The information contained in this document is not intended to be relied upon, or as advice or a recommendation to investors and does not take into account the investment objectives, financial situation, taxation situation or needs of any particular investor. An investor should not act on the basis of this document but must make its own assessment of the Company and conduct its own investigations and analysis. Investors should assess their own individual financial circumstances and consider talking to a financial adviser, professional adviser or consultant before making any investment decision. Neither the Company nor any of its directors, officers, employees, contractors, agents or advisers (Party) makes any representations or warranties, express or implied, as to or takes responsibility for, the accuracy, reliability, completeness or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in this document. No Party represents or warrants that this document is complete or that it contains all information about the Company that a prospective investor may require in evaluating a possible investment in the Company. To the maximum extent permitted by law, each Party expressly disclaims any and all liability, including, without limitation, any liability arising out of fault, negligence or omission on the part of any person, for any loss or damage arising from the use of, or reliance on, information contained in this document or otherwise arising in connection with it. Certain statements in this document constitute forward looking statements and comments about future events, including with respect to the financial condition, results of operations and business of the Company and certain plans and objectives of the management of the Company. Such forward looking statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company and which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Forward looking statements are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. Given these uncertainties, you are cautioned to not place undue reliance on any forward-looking statement. Past performance is not indicative of future performance and no guarantee of future returns is implied or given. Nothing contained in this document, nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of the Company. No Party or any other person makes any representation as to the accuracy or likelihood of the fulfilment of any forward-looking statements, or gives any assurance or guarantee that the occurrence of the events expressed or implied in any forward -looking statements in this document will occur.
This is authorised for release by the Board of RooLife Group Limited.
ASX:RLG 2
RLG - CONNECTING GLOBAL BRANDS TO GLOBAL CUSTOMERS
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A well-established, leading e-commerce platform operator
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Selling lucrative food, health and well being products into high growth markets
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Global client base and sales into 7 Countries
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Own high margin health brand – VORA “Good for you” Food Brand Launched October 2022
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Market Focus – Australia, South East Asia & other emerging and expanding markets
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- Proven expertise and experience providing competitive advantage
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RLG - CONNECTING GLOBAL BRANDS TO GLOBAL CUSTOMERS
Compelling indemand service:
Proven e-commerce & sales platforms selling food, health and wellbeing products. demand service: Platforms designed Strong international product range from NZ, UK, Europe, USA, South America, for scale: Australia. Market leading China team, Australia team, logistics, warehousing, translation, marketing and e- infrastructure: commerce support strong market penetration and distribution. Established Established sales channels and China networks enable RLG to fully leverage the channels: continued growth of this market Strong Revenue Mix of stable recurring revenues and product sales with track record of growth – Growth: from $700k (FY19) to $9.6m (FY21) to $16.9m (FY22). Company Owned VORA – “Good for you” health food range; selling directly into high growth sectors Health Brand: with margin benefits and enabling RLG to response rapidly to demand shifts
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FY2022 FINANCIAL PERFORMANCE KEY METRICS Revenue for FY2022 of $16.9m
RLG achieved strong sales growth and improvement in key business performance metrics in FY2021.
85% $16.93m REVENUE IMPROVEMENT vs. FY2021
$12.92m 118% PRODUCT / PLATFORM IMPROVEMENT SALES vs. FY2021
$(2.53m) 49% COMPREHENSIVE P/L IMPROVEMENT vs. FY2021
58% $14.06m CASH RECEIPTS FROM IMPROVEMENT CUSTOMERS vs. FY2021
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RLG MULTI-CHANNEL REVENUE MODEL
REVENUE FROM PRODUCT SALES + RECURRING SERVICES FEES
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Ecommerce – prominent and established channels for sales
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Social commerce – influencers livestreaming and selling direct to consumers
Social Commerce:
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B2B Distributors – Influencers livestreaming and secure network connecting retailers across selling direct to consumers
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China
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This multi channel approach, combined with established market expertise, provides RLG with a strong competitive advantage B2B Distributors:
Network connecting with retailers across China
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RLG REVENUE PROFILE FY22
$16.9m
3%
24%
73%
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Food, Health & Wellbeing Products Services
Personal care Products
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ASX:RLG OVERVIEW
SELLING FOOD, HEALTH AND WELLBEING PRODUCTS ONLINE AND VIA SUB DISTRIBUTION CHANNELS
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Ability to match consumer demand with brands via multiple channels
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RLG drives online and in-market sales of international brands
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China is the largest e-commerce market globally, generating almost 50 percent of the world’s transactions, valued at $USD2.3 trillion and providing access to 940 million online shoppers*
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The size of the addressable market and RLG’s established platform for accessing this market provides a solid foundation to drive toward future growth and profitability
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* www.trade.gov/country-commercial-guides/china-ecommerce, www.statista.com/statistics/663464/alibaba-cumulative-active-mobile-users-taobao-tmall/
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RLG MARKETPLACE FOR FOOD & HEALTH PRODUCTS
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RLG’S ESTABLISHED MARKET ACCESS
SIZE OF THE ADDRESSABLE MARKET
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Ability to provide clients with all branding required to penetrate this significant & growing market
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China is the world’s largest importer of agricultural food & second largest food importer
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The Food Market in China is expected to grow annually by 9.5% (CAGR 2022-2027)
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Online channels management to drive sales
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In the China Food market, 33.6% of total revenue will be generated through online sales by 2022
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From 2020-2030, China is expected to deliver 25-30% of the world's GDP growth
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Digital marketing solutions to drive conversion
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Inventory sync for optimal customer acquisition and growth
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Managed logistics and order fulfillment
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Improving relations between China and Australia anticipated to produce a new period of trade growth
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Exceptional customer service – high level & professional with valuable local market knowledge
Source: www.statista.com/outlook/cmo/food/china https://media-publications.bcg.com/BCG-Executive-Perspectives-2021-Version1.pdf
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RLG’S MARKETPLACE FOR HEALTH & WELLBEING PRODUCTS
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ACCESSING HIGH GROWTH SECTORS Matching Products with High Consumer Demand 70% of Chinese internet users consumed more health products during the pandemic 76% of affluent millennial Chinese consumers focus more on wellness than their parents do
Percentage of consumers who claimed they purchased more expensive brands or products due to the COVID-19 virus. Fresh & Organic Foods: 40% Vitamins / Supplements: 32% Preventative Healthcare: 17%
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Source. April 2020 report by iiMedia Research; 2019 survey by Singapore-based market research firm Agility Research & Strategy media-publications.bcg.com/BCG-Executive-Perspectives-2021-Version1.pdf
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RLG – SERVICING DEMAND FOR HEALTH & FOOD PRODUCTS DRIVES GROWTH
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GROWTH PROFILE FOR RLG FY2019 – FY2022 + 188% CAGR IN REVENUE
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OPERATIONAL HIGHLIGHTS SO FAR IN FY2023
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RLG launched the first New Zealand OTC (Over The Counter, without prescription) online pharmacy store in China - enabling the Company to directly service the strong Chinese demand for international OTC products
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RLG appointed by Santander Bank UK, one of the largest banks in the world, as the China entry provider for Santander clients
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RLG entered into $1m finance facility, at an interest rate of 0.83% per month on amounts drawn down. This enables RLG to directly drive revenue and demonstrates the strength of the Company balance sheet
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Launch of RLG’s own new Health & Wellness Brand – VORA – “Good for You, Good for the Planet. Good Business” in October 2022, providing the opportunity for increased margins
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RLG & SANTANDER BANK (UK) OVERVIEW
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Santander is one of the largest banks in the world and the 4[th] largest bank in Europe
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Santander UK selected RLG as the China and Australia market entry provider for its clients - validating RLG’s credibility and expertise in the sector
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Business development activities with Santander U.K. were launched in October 2022.
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Online webinar hosted by RLG for Santander customers to support entry to these markets
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Meetings with Santander customers interested in China entry were held in October 2022 generating a pipeline of qualified, mature prospects for new market entry
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The Santander Navigator programme is an ideal fit to RLG’s Marketplace platform to assist UK businesses entering new markets such as China.
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RLG OWN BRAND
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RLG launched own new Health & Wellness Brand: VORA – “Good for you, Good for the Planet, Good Business”
ASX:RLG
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RLG OWN BRAND CULMINATION OF 12 MONTHS PRODUCT & SALES CHANNEL DEVELOPMENT
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RLG THE VORA PRODUCT JOURNEY TO SALES LAUNCH
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VORA Brand and product ranges launched in response to identified demand
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Product range to service growing global demand for healthy, sustainable, food products
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VORA is a range of Australian products leveraging the high regard for Australia’s agricultural and food products
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RLG PRODUCT JOURNEY TO SALES LAUNCH
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Brand ownership to provide RLG increased margins on products sold under own brand and ability to service identified demand rapidly
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VORA products deliver improved margins for these products sold by RLG
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RLG to leverage the customer databases built in China over time to sell VORA products to a qualified customer base
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VORA launches with vegetable protein products to service high-demand and high growth markets in China and South East Asia
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VORA forms a key part of the strategy to increase product sales margins
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MACRO DRIVERS FOR 2023 FOR RLG
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- Stabilising relations with China expected to be beneficial for cross border commerce
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RLG was able to demonstrate significant revenue growth over the last 2 years, so is extremely well placed to capitalise from this strong base
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The global food crisis continues to escalate – creating unprecedented demand for agricultural and food related products
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Demand for plant based and environmentally conscious foods is forecast to experience particularly high growth due to consumer lifestyle changes and growing demand
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73% of RLG’s revenue is derived from the food, health and wellbeing sectors, ideally positioning the company to benefit from these evolving market conditions
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RLG INVESTMENT POSITIONING & OPPORTUNITY
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Established infrastructure, sales channels and global networks providing a competitive advantage for market entry and penetration
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Booming food, health and well being sector and improving China/Australia relations to provide a new phase of expansion opportunities
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Partnership with Santander UK offering an additional channel for revenue growth
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RLG’s market experience has enabled the Company to refine ranges to offer improved product margins
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- Launch of own food, health and wellbeing brand (VORA) also providing the opportunity for higher margin products
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ASX:RLG Twitter $RLG_Investors LinkedIn RooLife Group Website www.roolifegroup.com.au www.roolifegroup.com.au
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