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STAR COMBO PHARMA LIMITED

Annual General Meeting

23 November 2021

CEO Presentation

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Key Themes FY21

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

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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.

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

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.

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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

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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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Star Combo Pharma Ltd. published this content on 22 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 November 2021 00:08:13 UTC.