STAR COMBO PHARMA LIMITED — AGM Information 2021

Nov 22, 2021

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STAR COMBO PHARMA LIMITED Annual General Meeting 23 November 2021 CEO Presentation

Key Themes FY21

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Resilience in contract manufacturing division despite COVID headwinds

• Positive operating cash flow of $332K, up from an operating outflow of $1.02M (FY20)

• Negative COVID impact on earnings with $6.3M non-cash asset write-down of Austoyou and Koala Mall

• Construction and upgrade of multimillion dollar manufacturing facilities to increase capacity, $7.3m investment in Smithfield manufacturing facilities on track

• Strong cash position of $17.3M

• Benefiting from macro trends with strong demand for Australian Made health and wellness products

Our people

People

Our team have demonstrated agility and tenacity in guiding the business through the uncertain COVID environment and have continued to execute on our strategy of becoming Australia’s leading nutraceutical manufacturer.

Safety

As a manufacturing business, we are dedicated to ensuring we have a safe workplace. The company has in place a comprehensive occupational health and safety program which all staff are required to follow.

COVID

A comprehensive COVID safety plan has been implemented at Star Combo. Significant precautions and additional protocols are in place to safeguard the health and wellbeing of our employees.

No safety incident has been reported at Star Combo YTD 2021.

Business Division Update

 Manufacturing Division (OEM and Branded)

• OEM division performed ahead of expectations with increasing volume of bulk orders manufactured due to new customers

• 76 new customer accounts acquired with the strongest order book in place for 2022

• Through new product development process commercialised 86 new products

• Continued expansion into new territories with $1.0M distribution agreement signed with Vietnam based distributer,

  • for supply of Costar products throughout the country

• New product launched under Living Healthy Hemp Seed Oil through the Terry White Chemmart network

• Retail Division (online platform business Austoyou.com and Koala Mall retail stores) – Physical retail store was closed in August with all sales transferred online. Only one physical retail store left open

• – Newly formed customer service team to improve customer retention

Q1 FY22 Trading Update

 Q1 FY22 Revenue of $5.8M (Q4 FY21 $6.0M) – OEM division performed ahead of expectations – Supply chain limitations, expected to ease as travel restrictions lift – Retail division continues to be impacted by COVID related restrictions  Q1 FY22 Customer cash receipts of $5.3M  One off receipt of $0.3M government grant and COVID related financial support  Development Approval received for the R&D facilities at 165 Woodpark Road, Smithfield  Expansion and development of manufacturing facilities at 171-177 Woodpark Road, Smithfield on track

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Increase in production volume Q1 FY22

• Manufacturing division continues to perform strongly

• A good start in Q1 FY22, production volume increased by 24% when compared with Q1 FY21

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Units Manufactured
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Q1 FY21 production
volume increased by 24%
to Q1 FY22
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Qty: million
250
200
150
100
50
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Q1 FY21

Remaining FY21

Q1 FY22

Achievements & Outlook

FY21 Achievements	Continued growth in contract manufacturing division	Operating cash flow positive with $17.3M in cash in bank	Construction of multimillion-dollar, manufacturing facilities to increase capacity	Contract manufacturing business remains resilient in face of COVID pandemic
	Contract manufacturing
2022 Outlook	sector remains main area of strategic focus – expect immediate and significant growth in	Contract manufacturing outlook remains resilient benefiting from strong macro	New market development opportunities providing potential for growth	Manufacturing upgrade expected to be finalised in 2022
	2022	trends

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Investor relations investors@starcombo.com.au

DISCLAIMER

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