Announcement PDF Investor P re s e nta tion (AS X: FFF) CEO presentation Annual General Meeting November 2023 ---- 1 Important notices and disclaimer This presentation has been prepared by Forbidden Foods Ltd ACN 616 507 334 ("Company" or “Forbidden Foods”). This presentation is dated August 2023 and the information in it is subject to change without notice. The information contained in this presentation has been prepared in connection with a proposed capital raising by Forbidden Foods and includes information regarding an institutional placement and issue of new shares in Forbidden Foods ("Offer"). This presentation is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. It is intended only for those persons to whom it is delivered personally by or on behalf of Forbidden Foods. It should be read in conjunction with Forbidden Foods' most recent financial report or other periodic and continuous disclosure announcements lodged with ASX available at www.asx.com.au. The information contained in this presentation is of a general nature, does not purport to be complete and does not purport to contain all of the information that an investor should consider when making an investment decision. This presentation is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or the law of any other jurisdiction, and does not contain all of the information which would be required in such a document. The information contained in this presentation does not constitute investment or financial product advice (nor taxation or legal advice) nor a recommendation to acquire Forbidden Foods' shares. It is not intended to be used as the basis for making any investment decision. In providing this presentation, Forbidden Foods has not considered the objectives, financial position or needs of any particular recipients. Before making an investment decision in connection with the Offer detailed in this publication, investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek appropriate advice, including financial, legal and taxation advice appropriate to their jurisdiction. No representation or warranty, express or implied, is made as to the accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this presentation. None of Forbidden Foods, its officers, employees or advisers ("Limited Parties") guarantees or makes any representations or warranties, express or implied, as to or takes any responsibility for the accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this presentation. Forbidden Foods does not represent or warrant that this presentation is complete or that it contains all material information about Forbidden Foods or which a prospective investor may require in evaluating a possible investment in Forbidden Foods or acquisition of Forbidden Foods shares. To the maximum extent permitted by law, each Limited Party expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of information contained in this presentation including in relation to the accuracy or completeness of the information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation including, without limitation, any financial information, any estimates or projections and any other financial information derived therefrom. This presentation contains certain forward looking statements and comments about future events, including Forbidden Foods’ expectations about the performance of its businesses in FY2023, FY2024 and beyond. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, “anticipate”, “likely”, “intend”, “should”, “could”, “may”, “predict”, “plan”, “propose”, “will”, “believe”, “forecast”, “estimate”, “target” and other 1 guidance or outlook on, future earnings or financial position or performance are also forward looking statements. Forward looking statements involve inherent risks and uncertainties, both general similar expressions. Indications of, and and specific, and there is a risk that such predictions, forecasts, projections and other forward looking statements will not be achieved. A number of important factors could cause Forbidden Foods’ actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward looking statements, and many of these factors are beyond Forbidden Foods’ control. Forward looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks and other factors, many of which are outside the control of Forbidden Foods. As such, undue reliance should not be placed on any forward looking statement. 2 Corporate overview Forbidden Foods Limited is focused on delivering premium products to health-conscious consumers. Its major focus is on its leading brand, Blue Dinosaur. The company helps its brands scale production, distribution and sales whilst striving to offer innovative products which can be sustainably procured, efficiently manufactured, and supplied to a global customer base. MAJOR SHAREHOLDERS CORPORATE SNAPSHOT Shares on issue: 186.9m Tuwhera Te Rangi Ltd 10.12% Market capitalisation (as at $0.016 per share): $3.0m Legal Toolbox Pty Ltd 6.69% Options on issue: 48.54m Milani Family Investments Pty Ltd 5.33% 52 week low-high: $0.012 - $0.050 Debt: Cash at bank (as at 30 Sep 2023): Nil $0.70m MKB Family Investments Pty Ltd 5.30% Top 20: 54.98% Board & Management 14.02% 3 A newly defined strategy strategy to drive sales 01 – Focus on Blue Dinosaur as hero brand • Communicate Blue Dinosaur's key points of difference & develop community • Develop a competitive range across diverse channel mix including key retail groups • Drive volume of best performing SKUs to maintain and improve margins • Expand range to focus on functional benefits inc. protein, occasion-based consumption and nootropics 02 – Accelerate growth and US market penetration • De-risk the domestic market by diversifying the channel mix • Expand distribution points in Australia, APAC and the Middle East • Fast Track US roll out and considerably increase door count with majors and independents • Leverage entrenched relationships with our retail partners, brokers and distributors 03 – Drive efficiencies through scale and production • Centralise back-office support globally for Finance, Procurement, Supply Chain & New Product Development • Outsource certain tasks to keep costs low and controlled • Reduce headcount to increase staff costs savings while utilising available skill sets for growth initiatives • Scale with local manufacturing partners in Australia and USA 4 Defined near term opportunities 01 - AUSTRALIA Major supplier networks established in Australia across the $2.2bn health snack market, with opportunity to extend current points of availability in 1 supermarkets and petrol & convenience stores. 02 - USA Established US base with manufacturing and sales team to capitalise on the estimated3 $450bn Wellness Market in the US along with Blue 1,2 Dinosaur SKUs directly submitting into the $3.8bn wellness bar market. 03 - LEADER MINDSET Setting the standard for Healthy Bars globally - with further investment into the quality of range and the brand position. 04 - INNOVATION Extensive new product pipeline into other Healthy Snacking opportunities & occasions, tapping into the Health & Wellness market. 05 – NEW MARKETS Spearheading an effective push into new regional markets with the appointment of Dominic Douglas as Head of Sales & Marketing; emerging sales leads across the APAC & Middle East regions 1. McKinsey & Company - Still Feeling Good: The US wellness market continues to boom - 19th of September, 2022 2. SPINS Expo West 2023 / SPINS Wellness Bar Category - Total US Outlets ending 4th of September, 2022 3. IBIS World - Health Snack Food Production In Australia - 2008 - 2029 5 Recent financial results show a step change Q1 FY24 revenue: Q1 FY24 US sales: $0.8m $163,000 +41% on last quarter (unaudited) +58% on FFF’s annual sales for FY23 Q1 FY24 cash outflows: November 2023 ecommerce sales: $300,000 ~$81k Reduced significantly on last quarter Highest ever monthly sales and up 42% on Oct 2023 6 Strategic growth initiatives for FY24 and beyond High margin ecommerce sales New product development Cost effective, strategic marketing initiatives • Higher emphasis on developing eCommerce business with focus on branding and awareness on flagship Blue Dinosaur range and higher margin sales • Australia: Blue Dinosaur products being onboarded to the Chemist Warehouse online marketplace • USA: Commissioned dedicated US-based agency to drive growth on Amazon • Launch of Blue Dinosaur Protein Water –collagen & whey-based formulation readily digestible, low-carb and low-sugar with a complete BCAA profile • Extensive pipeline of additional launches planned for coming months – products to be tested online to gauge feedback prior to stocking with large retail groups • Direct-to-market strategy for new product testing through integrated website / social media channels • Strong traction on ecommerce will inform product ranging strategy for established bricks & mortar networks • Multiple event activations with brand ambassadors at events including Noosa Triathlon, & many other events currently being negotiated to increase focus with key demographics 7 International expansion opportunities Forbidden Foods is actively pursuing sales growth in other large international markets through strategic distribution agreements to further diversify revenue and increase brand awareness MENA region opportunity New Zealand sales growth • Strategic agreement signed with Raw Distribution – a leading natural products distributor based in Dubai with a strong track record in health and wellness • Raw Distribution has established relationships throughout Jordan, Kuwait, Saudi Arabia, the UAE, Oman, Bahrain and Egypt • Minimum sales volumes built into agreement to retain exclusivity – provides sales security • Unlocks access to UAE market snack bar market – valued at US$1.4Bn in 2023 • Whole Harry appointed as NZ distributor – Group is a large, established partner in the region • Currently expanding into major online supplement stores and national grocery retailers through new relations • Chemist Warehouse NZ (Bricks & mortar) being onboarded next quarter – expected to underpin sales growth • Leveraging localized marketing content and event activations to drive growth Shaded area represents the broader MENA region 8 Australia- Business Overview A growing mix of sales channels Blue Dinosaur is a leading healthy snacking brand that is capital-light and has dedicated resources to innovation, sales and marketing. It has outsourced manufacturing and supply chain which enables immediate and sustainable rapid growth. B2B Ec o m m e rc e Dis t rib u t o rs The market size of the Health Snack Food Production in Australia is $2.2bn in 2023 and anticipated to grow at 1.1% during 2023. A revised growth strategy: • Focused on de-risking the company’s reliance on large retail outlets and diversifying channel mix to multiple growing revenue streams 100% • While bricks and mortar sales will continue to underpin operations, the Company continues to expand its revenue streams 75% • Relaunch of ecommerce channels highlights shift in business model to reduce reliance on national retail outlets and large supermarkets 50% • Company has multiple initiatives underway to grow customer base, including event sponsorship and brand ambassadorships 25% • Strong pipeline of new product development to further expand company’s reach into new categories to further diversify revenue Channel Mix (based on unaudited sales figures) 7% 1% 19% 7% 92% 75% 0% FY23 FY24 YTD (Nov) B2B Export eCommerce 9 Blue Dinosaur unlocks a major US opportunity Penetration in high growth market Opportunity to take an established brand with a proven track record to capture a share of the projected US$3.8Bn wellness bar market. • US Wellness Bar Category sales up 13.9% year on year • Wellness bars are penetrating 43% of US households and growing • Wellness bar category has grown +5.9% to 54.5m buyers • USA has 28x more supermarkets and grocery stores than Australia 1 1 1 1 2 Unique competitive position with scalable business model Sales networks and local manufacturing capabilities have already been established to minimise working capital and increase speed to market. Imminent value catalysts Significant pipeline sales opportunities already identified in US which will materially grow revenue - opportunities being pursued across traditional retail and eCommerce channels Board and management team with US market experience Board with experience scaling global brands and penetrating US market. • SPINS Wellness Bar Category - Total US Outlets ending 4th of September, 2022 2. IBIS 2022 - Supermarkets & Grocery Stores 10 Near term value drivers The company expects to benefit from several near-term catalysts to underpin significant sales growth in the coming quarters New international market entries through costeffective, strategic distribution agreements Ongoing expansion of product pipeline – including multiple new launches to expand verticals and customer base Increased focus on higher margin ecommerce sales by leveraging established customer base and refreshed website Strategic, cost-effective marketing and promotional initiatives including brand ambassadors and events to drive sales Expansion through key bricks and mortar stores and large retail groups, domestically and internationally Ongoing optimisation of internal structures and supply chains to reduce capital expenditure in push toward profitability 11 Investment summary Revised strategy Strong financial growth Optimised team Ongoing domestic growth US traction • Channeled internal resources to focus on the global expansion of flagship Blue Dinosaur product range; high-margin and high-growth • Divested non-care assets and product lines • Result is a streamlined business with strong operating momentum • Disciplined execution of the strategic pivot outlined above has immediately resulted in significant improvement in key financial metrics • Demonstrated by a 41% increase in q/q revenue growth in Q3 CY2024, alongside added balance sheet strength via a $1.03m capital raise • New CEO Alex Aleksic has led the strategic turnaround • Restructure of management team with key hires in sales & distribution • Staff changes have resulted in a streamlined team of specialists who are working in pursuit of clearly-defined performance targets • Blue Dinosaur revenue is accelerating across the Australian market • De-risk business thru channel diversification program, becoming more nimble & ability to pivot • Focus on expanded distribution and prime in-store product placement • 58% uplift on annual US sales for FY23 in Q1 2024 alone • US market now represents a major blue-sky opportunity • Recent results highlighted by conversion of long-term distribution agreements into sales across leading US store networks 12 Contact Alex Aleksic Chief Executive Officer alex.aleksic@forbiddenfoods.com.au Henry Jordan Investor & Media Enquiries henry.jordan@sdir.com.au 13