Australia’s leading regenerative food & agriculture company ASX: WOA FRA: 2WO
COMPANY SNAPSHOT ONLY LISTED REGENERATIVE FOOD FAST GROWING CUSTOMER BASE AND AGRICULTURE COMPANY IN SEEKING HEALTHY, ETHICAL FOOD FAST GROWING FOOD SECTOR AND PLANT-BASED PROTEINS (A$1.1 TRILLION P.A REVENUE*) WA’S LEADING HEALTHY, EXPANDING DOMESTIC AND GLOBAL ETHICAL FOOD BRAND WITH PRESENCE BEGINNING IN ASIA MULTIPLE SALES CHANNELS 2 Statistic – Global health and wellness food market value
CORPORATE & Cash at bank (25 August 2020) $6.87m CAPITAL STRUCTURE Shares on issue 91.7m Current price per share* $1.08 Loyal and committed shareholder base Enterprise value (EV) $91.7m Current Top 20 hold ~69% of issued capital Market Capitalisation $98.6m Highly motivated Board with financial, branding and farming expertise Growing despite challenging macroeconomic conditions presented by COVID-19 * Share price close @ 3 September 2020 3
COMMERCIAL STRATEGY GROW DIVERSIFY INNOVATE Corporate & Commercial Focus Low cost product development potential Low capital intensive research development PLANT-BASED REGENERATIVE OAT MILK PROTEIN MEAT A$3 BILLION 2 A$13 BILLION 1 A$13 BILLION 3 Australia + US Australia Global 4 See ‘Disclaimer’ slide for sources
ONLINE Established specialised, direct distribution platform 100% GRASS-FED FOOD SERVICE 55 premium restaurants REGENERATIVELY FARMED and 2 meal kit companies LIVESTOCK, OATS & LUPINS RETAIL Stocked in 30 TRANSPARENT SOURCING supermarkets including IGA 5
EXPERIENCING EXPANSION OPPORTUNITIES FOR EAST REVENUE GROWTH COAST OF AUSTRALIA & ASIAN MARKETS WOA has delivered four consecutive quarters of revenue growth, with Q4 FY20 revenue increasing to AUD$571,928 JAPAN: 126M CHINA: 1.4Bn Current sales only in Western Australia with limited marketing and a large opportunity to penetrate new domestic territories and launch globally VIETNAM: 97M MALAYSIA: 32M Sales momentum anticipated to continue across INDONESIA: 273M 2020 as demand for healthy food items increase SINGAPORE: 5.8M Q4 BRISBANE: 2.4M $571,928 PERTH: 2.1M SYDNEY: 5.0M Q3 MELBOURNE: 4.8M $383,696 Q2 $291,076 Q1 $199,937 Australian population figures – population.net.au | Asia population figures - Worldmeter 6
PLANT-BASED PROTEIN OPPORTUNITY
INDUSTRY PLANT-BASED MEAT US$12.1 billion 2020 2 OVERVIEW US$28 billion 2025 2 Global protein consumption ros ose 40 40% % between 2000 and 2018. NON-DAIRY MILK More than 50% of this increase was driven by Asia. 1 US$21.4 billion 2020 6 Climate change, animal-welfare concerns, and greater US$38 billion 2024 3 interest in wellness are driving consumers to look for alt lternati tive so sources of pr prot otein in in their diets. PLANT-BASED SNACKS This shift is providing companies with a lar arge com ommercia ial l US$31.8 billion 2018 4 opp pportu tunit ity to develop and launch plant-based alternatives US$73 billion 2028 4 within the meat, dairy, beverage and egg sectors. Plant-based protein products have proven to be EGG ALTERNATIVES highly nutritious and are now wi wide dely ly availa ilable le across supermarkets globally. US$1.6 billion 2025 5 8 FIAL, 2019 (1) Markets and Markets (2) PV Plant Milk Report (3) Future Market Insights (4) Zion Market Research (5) Markets and Markets (6)
INTRODUCING AUSTRALIAN SWEET LUPIN WOA has a fir irst t mov mover advantage to develop a lupin-based protein that can be used to create alternative meat, dairy, beverage and convenience food products. Lupin is one of the hi highest sou sources of f pl plan ant pr prot otein ins available (40%) combined with a high source of dietary fibre (37%). 1 No Non-GMO, low GI, easily digestible, high in essential amino acids and cholesterol free. Current market valued at AUD~$200mill ill wi with th 96 96% consumed by by k and 60% of global supply produced in Western Australia. 2 liv ivestock Eco-fr frie iendly ly, low carbon foot-print, low water pollution and critical to regenerative farming systems. 9 lupinfoods.com.au (1) Department of Primary Industries and Regional Development (2)
TECHNOLOGY TO UNLOCK LUPINS POTENTIAL Previous barriers for lupin to be used in LUPIN TODAY the food sector relate to its texture and UNLOCKING LUPINS POTENTIAL its capacity for gelling and thickening Lupins are used by Less than 4% of global A stable 3-D network is formed stockfeed manufacturers production is currently that allows for stable interactions for animal feed consumed by humans 1 with other food ingredients WOA’s novel technology Lupin then becomes suitable WA is effectively the sole exporter unfolds the constituent for new applications in a wide of lupins into international range of food sectors protein in Lupin to form a gel markets for plant-based proteins and increase solubility across the livestock industries 10 Department of Primary Industries & Regional Development (1)
COMMERCIAL STRATEGY LAUNCH PRODUCTS BUILD SUPPLY CHAIN SUPPLY OTHER BRANDS PLANT-BASED PROTEIN RETAIL: AUSTRALIAN SWEET LUPIN: PLANT-BASED PROTEIN ISOLATE: AUD$35,000 PER TONNE 3 AUD$400-500 PER TONNE 1 AUD$4-6k PER TONNE 2 Sign n su supp pply ly agreements with Develop, launch and market plant- Secure com ommercial l quan quantitie ities of established plant-based protein based protein products under the Lupin from farmers committed to brands and offer lupin as the regenerative farming principles. Dirty y Clean Foo Food br bran and. key ingredient. Develop a processing facility and Offer products to customers Food manufactures can then logistics infrastructure to become across our fully operational direct- develop and launch their own a gl glob obally lly com ompetiti itive plant-based to-consumer online portal, retail products globally. food brand from WA. and distribution network. 11 pulseaus.com.au (1) Financial Times estimates pea protein isolate ranges from US$4,200-$4,600 a tonne and soyabean protein isolate US$3,500 a tonne (2) $35,000 per tonne estimated based on protein sales at retail stores for AUD$35kg (3)
DEVELOPMENT SELECTION OF VIABLE PLANT- BASED FOOD SOURCE PROCESS PROCESS OPTIMISATION & 2 200kg’s of regeneratively produced lupin has been purchased REFINEMENT OF TECHNOLOGY for upcoming production trials and ongoing discussions have commenced to secure future supply for commercialisation. Preparatio ion of f lupi upin und underway for CSIRO to produce a PRODUCT TESTING 3 food grade commercial quantity of lupin protein isolate & DEVELOPMENT to be used in plant-based product development. Scaling and refining of the production process is advancing, with the pilot trial on schedule for SALES AGREEMENTS WITH 4 commencement in September 20 2020 20. FOOD MANUFACTURERS 5 CO-VENTURE FOR LARGE- SCALE MANUFACTURING 12
OAT MILK
NON-DAIRY MILK MARKET U.S $2bn AUSTRALIAN CONSUMPTION Current AUD$300 m market for soy and almond milk in Australia (3). U.S $1.9bn ALMOND – 65% U.S plant-based milk sales 1 SOY – 10% U.S $1.8bn COCONUT – 4.6% $3.7BN GLOBAL MARKET OAT – 4.2% The global oat milk market was estimated at USD 3.7 billion in 2019 OTHER – 16% and is expected to grow at a compound annual growth rate (CAGR) of 9.8% 2019 from 2020 to 2027. 2 14 Good Food Institute (1) Grand View Research (2) Ibisworld (3)
GROWTH OAT MILK BENEFITS / CHARACTERISTICS DRIVERS Developed to have High capacity for frothing identical calcium and for use by baristas and Partnership with European fat levels as dairy milk home coffee machines manufacturer with unique IP developed for taste and nutritional characteristics WA’s oats have a global Ranked in top plant- Oat milk is increasingly being used in reputation for taste, quality based beverages for numerous food products including ice- and eco-credentials eco-credentials cream and yoghurts WA’s oats have reputation for OAT MILK HAS BEEN IDENTIFIED AS A SUSTAINABLE excellence in South East Asia ALTERNATIVE TO ALMOND, SOY, COCONUT AND DAIRY MILK 1 15 The Guardian (1)
2020 STRATEGIC PRIORITIES
ONE: REVENUE GROWTH GROW & RETAIN PENETRATE NEW CUSTOMER BASE DOMESTIC MARKETS Sales and marketing activity Consolidate and grow local market to increase online traffic and share in WA and launch into new build B2B customer base. states across Australia. EXPAND PRODUCT EXPORT TO OFFERING ONLINE ASIAN MARKETS Allow more ethical, regenerative food Sign supply agreements brands to use DFC as a sales channel with South-East Asian food to increase product diversity across distributors. multiple food categories. 14
TWO: LAUNCH NEW PRODUCTS & BUILD MANUFACTURING CAPABILITY BENEFITS: AUD$5,000,000 AUD$3,500,000 Improved op operational effi ficiency and margins LUPIN PLANT-BASED Transparent pr provenance and OAT MILK PROTEIN traceability with 'grown and made in Australia' branding Protect and build ne new IP in plant- based milk and protein industries Construct and operate a food Construct and operate >18m litre grade, lupin protein pilot-scale capacity p.a. oat milk manufacturing Opportunity to align with Federal manufacturing facility. facility in Western Australia. and State government tailwinds for foo ood in industry de development in in Aus Australia Both projects align to WOA’s corporate focus to grow current revenue base 20
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