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ZOONO GROUP LIMITED — AGM Information 2023
Nov 26, 2023
66124_rns_2023-11-26_4bb33267-763e-4e87-8708-b4e834501b89.pdf
AGM Information
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ZOONO GROUP LIMITED (ASX:ZNO)
Annual General Meeting
SYDNEY Monday, 27[th] NOVEMBER 2023
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AGENDA
CHAIRMAN’S OPENING COMMENTS
INTRODUCTIONS AND FORMALITIES
ITEMS OF BUSINESS
EXECUTIVE PRESENTATION
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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WHO WE ARE
Board members
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Don Clarke
NON-EXECUTIVE DIRECTOR
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Elissa Hansen
NON-EXECUTIVE DIRECTOR/COMPANY
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Paul Hyslop
GROUP MANAGING DIRECTOR
SECRETARY
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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ZOONO GROUP LIMITED
Executive Presentations -
Paul Hyslop – Strategy and Outlook
Paul Ravlich – Financial Results
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ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
FY23 REVIEW
Full Year FY23 Performance Snapshot
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REVENUE GROSS PROFIT EBIT
$3.3M $1.7M ($0.6)M
-63.0% -66.2% 95.0%
vs FY22 vs FY22 vs FY22
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EBITDA
($0.4)M
97.0%
vs FY22
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ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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FINANCIAL REPORT
Full year FY23 profit and loss summary
Revenue
- Down 63.0% in face of COVID-19 impacts and reduced trading in most geographies around the globe.
Gross margin
- Gross margin percentage still remains strong at 51.3%, but negatively impacted by some volume sales at lower gross margins compared to the prior corresponding period.
Operating costs
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Lower overheads of NZ$10.5M due to one-off US entity Goodwill impairment of NZ$6.4M and Sky Scraper legal settlement costs of NZ$1.7M all in the PCP.
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Restructuring savings of NZ$2.4M including employee costs down NZ$723k
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Decrease in marketing costs of NZ$629k as a result of reduced sales
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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FINANCIAL REPORT
Balance Sheet & Cash Flow
Working capital management and Cash Flow
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Efficient management of receivables
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Strong cashflow management with NZ$4.2M of cash receipts despite sales of NZ$3.3M
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Operating cash outflows of NZ$3.9M impacted by lower cash receipts from lower sales but assisted by the restructuring savings of NZ$2.4M
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Margins remain strong but negatively impacted by some volume sales at lower gross margins compared to the prior corresponding period
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No external bank debt
Balance Sheet
- Net assets up NZD$787k with no external bank debt
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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ZOONO GROUP LIMITED AGM PRESENTATION
Strategy, operations & outlook
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STRATEGY, OPERATIONS & OUTLOOK
The Challenges
ECONOMIC
Global recession where interest rates and costs of living are high has reduced demand.
COMPETITIVE
New entrants as a result of the pandemic have increased the competitive landscape in our traditional hand and surface disinfectant segments putting pressure on prices and margins.
SUPPLY CHAIN
Disinfectant supply chains have improved but with excess stock ordered during the pandemic, impacting both sell through and pricing.
VALUE PROPOSITION
The value proposition of keeping someone ‘safe’ works well when they are in danger but is less compelling when there is no immediate threat.
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ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
STRATEGY, OPERATIONS & OUTLOOK
The Solution
NEW MARKET SEGMENTS
Zoono has pivoted towards developing and commercialising solutions in new market segments (Food Packaging and OTC Products) and will continue to look at new opportunities.
STRENGTHEN STRATEGIC PARTNERSHIPS
As part of the revised strategy, Zoono has continued to enter into and explore relationships with organisations in critical markets and segments.
This structure allows Zoono greater access to markets at a lower overhead cost.
MORE SUSTAINABLE SOLUTIONS
We believe our technology fundamentally offers a more sustainable and more costeffective solution than incumbent offerings.
The Board and Management are clear that we need to focus on and drive revenue growth as the number one priority while carefully managing cash and our overhead structure as we return to profitability.
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ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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ZOONO GROUP LIMITED AGM PRESENTATION
Segment Initiatives
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SEGMENT INITIATIVES
Food Packaging
| Rationale | This is a massive market and there is limited apparent competition. Zoono will increase the shelf-life and assist in reducing wastage in the world of 1.4 billion* tons of food every year. The global flexible produce food packaging market is currently US$16.6B and is expected to grow to US$20.6B by 2025 at a CAGR of 5.5%. There is US$2.6 trillion of food waste each year. Nearly 25% of fruits and vegetables are lost globally through food waste. |
| Value proposition | Using our product increases shelf-life and reduces food waste. The economic benefits of these outcomes far outweigh the cost of application. |
| Key activities completed | • Completed further market research on the opportunities within this segment. • Ongoing trials globally. |
| Next steps | • Continue to work through to commercialisation and then launch in our key markets and target large packaging companies and retailers. • Revenues expected in this market segment by Q4. |
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
Source*: Food and Agriculture Organisation of the United Nations: Food Packaging Market Size, Share & Growth Report 2030
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SEGMENT INITIATIVES
OTC Products
| Rationale | Our technology has not previously been used in OTC applications and initial tests have been incredibly compelling. |
| Value proposition | Different for each product. |
| Key activities completed | • Completed initial testing, and have core team resources in place. • Signed a co-development agreement with Douglas Pharmaceuticals. |
| Next steps | • Continue commercialisation efforts. • Presently have patents pending in key markets. • Engage Global pharma company to exclusively license the product worldwide. |
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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SEGMENT INITIATIVES
Animal Health
| Rationale | Our technology naturally lends itself to this segment, and we are continuing trials in the UK and China in pigs and chicken farms to improve the environment for the animals in these areas. |
| Value proposition | Creating healthier and safer environments – using long-lasting antimicrobials in conjunction with a regular hygiene program can increase the weight of the animals, reduce the amount of feed required and reduce the stress levels of the animals. |
| Key activities completed | Establishing partnerships with significant players in this market with a number of successful trials already undertaken. |
| Next steps | Ensuring orders are placed based on the results achieved and continue to perform trials with leading farms in our key markets. |
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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ZOONO GROUP LIMITED AGM PRESENTATION
Outlook
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BUSINESS GAINED
Business progressing and gained since July 1 2023
New Business Progressing and Gained
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Exclusive pig contract signed in China following outstanding test results. First order and payment received November 2023.
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New product registration in the USA now complete and is now on the EPA List N which will allow us to make anti-viral and bacteria claims, opening up a much larger marketplace including healthcare.
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Major textile customer in China has now completed all bacteria and virus testing and after 50 washes Zoono easily exceeded all China and Japanese national standards. Orders now imminent.
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In India we have set up a new company, Zoono Global Private Limited. We have been successful in eliminating fungus and mould on mango trees, custard apple trees and pomegranate trees over a 30 day plus period.
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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OUTLOOK
Outlook over the next 3 years
YEAR 1
Solidify, stabilize and grow
YEAR 2
Build Momentum
YEAR 3
Rapid Expansion
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More focus on direct client relationships strategy
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Put more resources into key non-pandemic related segments (Food Packaging and Shelf-life extension)
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Roll out food packaging and shelf-life extension across the globe to global players
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Doubling down on successful growth initiatives
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Further penetration with key customers in China and ROW
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Increased investment in R&D.
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Maximising successful growth initiatives
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Introducing new products into existing markets (via existing distribution channels)
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Exploring JV activities with strategic partners, distributors and entities closely related to our core business.
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Continue to build penetration into the Chinese market.
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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Questions?
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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ZOONO GROUP LIMITED | ANNUAL GENERAL MEETING
Important Notice & Disclaimer
Commercial in Confidence
Zoono has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Whilst provided in good faith, to the maximum extent permitted by applicable laws, Zoono makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for (1) the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this presentation and (2) without prejudice to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or other forward looking information contained or referred to in this presentation.
This overview of the Company does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of Zoono’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.
Future Performance
This presentation contains forecasts, projections and forward looking information. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of Zoono’s control. Actual results and developments will almost certainly differ materially from those expressed or implied.
Zoono disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and other similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forwardlooking statements due to the inherent uncertainty therein.
ZOONO GROUP LIMITED AGM PRESENTATION NOVEMBER 2023
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Company Directory
GLOBAL HEAD OFFICE
ZOONO LIMITED Unit 3 / 24 Bishop Dunn Place Botany South Auckland 2013 New Zealand Phone: +64 9 600 1188 [email protected]
USA
AUSTRALIA
ZOONO GROUP LIMITED Level 8 210 George Street Sydney NSW 2000 Australia Phone: +61 (2) 8042 8481
UAE
UK & EUROPE
ZOONO HOLDINGS LIMITED Unit 15, Bunting Road, ss Bury St Edmunds, United Kingdom IP32 7BX Email: [email protected]
CHINA
SOUTH AFRICA
ZOONO SOUTH AFRICA PTY LTD F W De Klerk Boulevard & Lower Heerengracht Street Unit 29 Foregate Square Cape Town, Western Cape 8001 South Africa Email: [email protected]
INDIA
ZOONO HOLDINGS USA LLC 1151 Broad Street, Suite 115 New Jersey 07702 Phone: +1 732 722 8757 [email protected]
Email: [email protected] Phone: + 971 50940 2903
ZOONO (SHANGHAI) BIOTECH CO. LIMITED New Zealand Centre, 190 Madang Road Xin Tiandi Shanghai, China Wechat: wudi64000
ZOONO GLOBAL PRIVATE LIMITED 207B 2[ND] Floor, G Block, C70, Bandra Kurla Complex, Bandra (East) Mumbai, Maharashtra 400051, India Email: [email protected] Phone: +91 928 489 6878
WWW.ZOONO.COM