investor information 2021
TRANSCRIPT
INVESTOR INFORMATION 2021
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CONFIDENTIALNew Shareholders June 2021
EXECUTIVE SUMMARYWHAT WE DO
▪ PERKii Probiotic is a probiotics company, using Patent-Protected Technology to create better performing and tasting probiotic products for probiotic aware consumers
▪ With 50% of probiotic consumers aware that stomach acid is harmful to probiotics,
▪ PERKii’s technology is highly relevant and effective by delivering probiotic survival through to the gut by factor of x10,000
▪ Range of functional probiotic drinks – Still 350ml and Sparkling 330ml
▪ Ability to extend technology into other chilled food and drink categories such as shots, non-dairy drinks, diary products and functional foods
▪ Focusing on growth in Australia as proof of concept for future export into the UK, US and premium Asian markets, with a combined market size of over US$24.8b
STATUS
▪ Business is growing and tracking to become net cash movement positive in 2022
▪ Raising AU$1.0m to achieve this and fund working capital to provide flexibility over the next 12 months
GLOBAL RELEVANCE
PATENTEDTECHNOLOGY
MULTI-CATEGORY
SCALABLE
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F16 F18 AF17 A F19 A F20 A
2018 OctWoolworths
Launch 150
supermarkets
2019 FebColes Launch
800 stores
2018 AprManassen Foods Australia
distributor to IGA and independent retail stores
2018 SepNew
Zealand Launch
2016 OctWoolworths Metro
Launch
2019 OctColes Express &
Aldi Launch 1,200 stores
2018 MayCaltex Launch +500 stores
$3.5m
$2.5m
$1.5m
Net Revenue (AUD)
2016 AprSeries-A
Cap. Raise$5.5m
2015 JunPerkii
Formed$0.2m $0.7m +250% $1.1m +57% $2.3m +109%
2018 JulFollow-onCap. Raise
$3.1m
F21 F
$3.4m +48%
2020 JunWoolworths Expand into
773 supermarkets
F22 F $5.0m +47%
2020 NovSparkling
range launched
Invest to accelerate growth, build scale and continue to innovate Product – Channel FitProduct – Market Fit
Product – Language FitProblem – Solution Fit
Fin. Year
Stages of the Business Evolution
2020 AprConv. NoteCap. Raise
$2.0m
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2020 NovSparkling range in
700 Coles Express stores
nationally
2021 FebSparkling
range accepted by
Coles Supermarkets
nationally
THE JOURNEY SO FAR
COVID -19
CURRENT STATUSBusiness
▪ Based in Brisbane, currently at the University of Queensland, where the technology was developed
▪ Employing 16 people in sales, marketing, logistics, production and finance
▪ Perkii has exclusive license to encapsulate probiotics globally using the patented ProGel® technology
▪ PERKii also owns patents covering the formulation of the encapsulated probiotics
Financials
▪ Strong Sales Growth. Net Revenue + 1050% over 3 years: $0.2m in F17 to $2.3m in F20 and expectation to achieve $3.4m in F21
▪ Improving Product Gross Margin^ : 38% NSV H1 F21 vs 19% H2 F20
▪ The business is not yet profitable and is building scale with new products and aims to reach breakeven by end 2022
▪ With the launch of the Sparkling range in 2021 and acceptance by national retail chains, the business can continue to grow over next 12 months
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^ Product Gross Margin = Net Revenue less COGS excluding Royalties
CURRENT STATUSProduction
▪ One probiotic encapsulation site in Brisbane with production controlled by PERKii employees
▪ Three co-bottling sites across Brisbane, Toowoomba and Melbourne with two further sites in Sydney and Ballarat under review
▪ Two step production process with encapsulation in batches by PERKii; transferred to co-bottlers for bottling
▪ Process has been successfully commercially scaled and can support planned future production demand for the ANZ markets
Warehousing and Logistics
▪ Perkii uses several approaches to make product available in retail fridges for consumers;
▪ Direct to distribution centers via 3PL (Third Party Logistics) for large retail customers
▪ Sub-distributors in Australia and NZ to reach café’s, airports, convenience stores and independent supermarkets
▪ Direct to store (DTS) capability to be able to quickly test new products
▪ Direct to consumer (DTC) capability to support regular eCommerce and subscription sales direct to consumers
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CURRENT STATUSRoute to Market
▪ PERKii controls the sales function and contact with key customers to deliver greater control, better customer
relationships, and a quicker response to changing needs of consumers and customers to accelerate sales revenue growth
▪ During 2020, the business has built effective relationships with major supermarket and retail chains to expand its range
and successfully promote its products to drive trial and repeat sales
▪ Perkii is available nationally across Coles and Woolworth’s supermarkets, Coles Express, Quick Service Restaurants, Petrol
& Convenience and other stores
▪ Perkii now has over 11000 Points of Distribution (POD) in ANZ (POD = 1 stock keeping unit (SKU) in 1 store)
▪ Over the last 12 months, Perkii has built PODs by +50% despite the challenges of COVID-19 lockdown measures.
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CURRENT STATUSConsumer Communication and Marketing
▪ PERKii is in the better probiotics business through its globally patented technology. It is not just another drinks company or product.
▪ In 2020 the business focused on communicating the benefits of its ‘PERKii Science’ to probiotic aware consumers
▪ Brand communication talks about ‘Targeted Release Probiotics’ and validated with consumers through research
▪ Brand building activity has focused on social media, influencer, and sampling marketing
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PERKii uses micro-shield technology for a targeted in-gut release of effective probiotics.
Developed at the University of Queensland. Australia’s leading institution for scientific innovation.
Protected and nourished inside a natural alginate shield, each probiotic is equipped to resist stomach acid and survive the journey to your gut. For a difference you can feel and taste.
CURRENT STATUS
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1. Probiotic survival through to the Gut
▪ Central benefit of PERKii’s patented encapsulation technology
▪ Simulated stomach trials show PERKii encapsulated probiotics have 10,000x the survival rate of non encapsulated probiotics
▪ Highly relevant with 50% of probiotic consumers aware that probiotics don’t survive the journey to the gut
▪ Supermarket decision-makers now proactively recognize this as a consumer benefit
2. Health benefit of the Probiotic
▪ Whilst adhering to the appropriate regulations, PERKii can talk about the general health benefits of the probiotics that it uses.
▪ Publicly available clinical trials support the benefits of probiotics:
▪ L. Casei – may support the bodies immune and digestive functions and response to vaccines
▪ Bifidobacterium – may support the bodies immune and digestive functions and response to vaccines
▪ PERKii is investing in R&D to improve its ability to make stronger health claims within regulations
Marketing communication focuses on two key benefits for consumers:
CURRENT STATUS - Market Traction NATIONAL DISTRIBUTION
EXPANDING FOOTPRINT
11,000 +Points of
Distribution
+50% since Jan 2020
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CURRENT STATUSSales Performance
▪ PERKii is regularly ranked in top 25% of all products in the Functional drink category in Coles and Woolworths
▪ At an individual stock keeping unit (sku) level, it outsells kombucha brands owned by global multi-national companies which are ranged in the same category in the fridge
▪ PERKii has successfully invested in promotional activity in-store to drive trial and is seeing repeat purchase growing when not on promotion
Source: Coles and WW Store scan data 19th Jan ‘21
PERKii 350ml Weekly Sales – WW Supermarkets
CURRENT STATUS
New Product Development
▪ PERKii has a pipeline of new products in development with different strains of
encapsulated probiotics and different drink ‘carriers’
▪ In market now – functional Probiotic water in both Still and Sparkling
(Sparkling launched in Oct 2020)
▪ Ready to launch – Probiotic Shots with 6b Bifidobacterium Probiotics
▪ These can be launched with existing resource and probiotic encapsulation
capacity
▪ Each new range being developed to match sales of the current still range –
therefore Sparkling and Shots ranges have potential to grow total annual
revenue x2-3 when ranged
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CURRENT RANGE
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▪ Naturally Flavoured Probiotic Drink
▪ Bottled with 1.2b+ live and protected Lactobacillus Casei probiotic
▪ 3 core Flavours – no fermentation, great taste
▪ Two pack sizes – 350ml and 1L
▪ Low in Sugar
▪ Only 37 Calories
▪ 16 Week Shelf Life – attractive supply chain benefits
▪ Naturally Flavoured Sparkling Probiotic Drink
▪ Bottled with 1b live and protected probiotics
▪ Vegan - 100% plant based strain of Bifidobacterium probiotic
▪ 3 core Flavours – no fermentation, great taste
▪ One pack size – 330ml
▪ Only 45 Calories
▪ 24 Week Shelf Life
PERKii Stilluses clinically proven strain
*LACTOBACILLUS CASEI
431® [LC431]
▪ Improved immunity
▪ Shortens symptoms of cold and flu
▪ Protection from virus infections
▪ Reduced incidence of upset
stomach
PERKii Sparklinguses clinically proven strain
*BIFIDOBACTERIUM
BB12® [BB12]
▪ Improved immunity
▪ Reduced incidence of upset
stomach
▪ Improves bodies response
to vaccines
COMPETITIVE ADVANTAGE
PERKii350ml
YakultShots
Remedy Kombucha
Mojo Kombucha
▪ Years on Australian Market 2 25 6 10
▪ Non-Dairy Water & Juice (15%) Beverage
▪ Specific Strain of Probiotic
▪ Low Sugar and Energy Count
▪ Non-Fermented All-Natural Fruit Flavours
▪ Lactose / Gluten / GMO Free
▪ Non-Carbonated
▪ +3month Shelf Life
▪ RRP (in Supermarkets) $11.42/L $12.12/L $12.31/L $9.76/L
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▪ Naturally Flavoured Probiotic Drink
▪ Two Key ‘gut health’ alternatives on the market;
dairy-based Yakult and kombucha brands
controlled by CCA and Lion, Mojo and Remedy
▪ Key incremental sales offer for retailer: PERKii
provides a different taste profile in a non-
carbonated, non-dairy based and bitter-free drink.
▪ Sparkling offers a better tasting and higher
probiotic count to Kombucha’s
▪ Attractive for retailer and offer category growth
opportunity with a different offer to just ‘another’
kombucha
THE PROBLEM WITH PROBIOTICS
• Retailers and consumers limited in taste and efficacy
Format & Ingredients
Dried Pills & Powders
Fermentated Milks & Beverages
Lactose & High Sugars Content
Probiotics Shelf Instability
Live culture short shelf-life
Unregulated and misleading labelling
Minimally qualified strains
Inefficient chilled Supply Chain with high wastage
Digestive Track Stability
Limited dose per serve
High mortality ratein stomach acids
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Probiotic coating technology created at
the University of Queensland
Controlling acid production, creating stability on
shelf and enhancing survival through the stomach
environments, delivering more probiotic to the gut
Probiotics Made Better LEAD PATENT APPROVED US, JAPAN, EUROPE, NZ AND AUS
PERKii SOLUTION &POINT OF DIFFERENCE !
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APPLICATION & ADVANTAGE
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Micro-shield with Macro impact: 10,000 times the survival rate of non micro-shield probiotics in a low pH
environment! Ensuring our probiotics survive better in the stomach.
Time (minutes) Difference (CFU survival)
30 34,500x
60 10,500x
90 10,000x
120 10,300x
PERKii simulated stomach trials
▪ pH trial to mimic the acidic environment in the stomach - pH 2, over a 2 hour period (a typical time for stomach digestion trials)
▪ Trial to measure the survival rate of micro-shield and non micro-shield probiotics.
▪ Numbers taken as average over multiple trials.
GLOBAL MARKET SIZE - OVER US$50B
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Probiotics Market by Application End User, and Region – Global Forecast to 2023 Market and Markets Published Date: Jan 2019 | Report Code: FB 2269
GLOBAL BUSINESS MODEL
DIRECT BRAND SALES
Current Category : Better-for-you beverages
New categories: Dairy, Juice, Non-Dairy, Functional Foods
Route to Market: Sell own brand through own sales team, co-manufacture and 3PL
Supply Chain
Focus Market: Australia and New Zealand
EXPORT OPPORTINITIES UNDER Perkii
CONTROL
Production: Partnerships to export the proven production process for both
probiotic encapsulation and application to the drink/food with co-manufacturers
in key export markets
Go to Market: Engage local distributors and sales companies to sell direct to key
customers
Focus Markets: UK, USA, SEA
TECHNOLOGY SUB-LICENSE
Non – Competitive categories
Wide Probiotic Application:
(Dairy, Juice, Non-Dairy, Functional Foods)
$PRIMARY
$TERTIARY
MULTIPLE CURRENT & POTENTIAL
REVENUE STREAMS
$SECONDARY
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GLOBAL OPPORTUNITY
2019 - 2020
Australia distribution & acceleration
Prove scalability of production process and bottling
2020-22
Priority on building scale in Australia with NPD
Identify suitable Export market opportunities for finished products
(Asia) and with partners to co-manufacturer and distribute in US,UK
2023+
Export development with high quality local production and Go-to-market partners if
business case is warranted
Continued Australia scalewith NPD
Secondary Focus Markets with consolidators or licensee agreements
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ANTHONY DAVIE
CHIEF EXECUTIVE OFFICER 2010- 2014 - Managing Director – Asia Treasury Wine Estates
2015-2016 - General Manger – Coles Liquor
2017-2019 - CEO Sabrands Group
Anthony has a significant record of achievement across channel
management, route to market, sales/marketing, production and retail
disciplines. He has global brands and global leadership experience with
senior experience at Chairman, CEO and Managing Director level in
Asia, including China, Australia, New Zealand, UK and Europe. Has
worked successfully for global multinationals, domestic retailers and
private /family-owned companies
Andrew KellyMARKETING DIRECTOR
Vanessa PintoBUSINESS AND LOGISTICS
MANAGER
CARL RYAN
HEAD OF SALES (ANZ)1997- 2016 - Coca-Cola Amatil
Carl is a highly experienced sales and route-to-market
manager. As state and national business manager, he
developed field teams and drove large scale national
account acquisition. Carl is responsible for regional
sales teams and national direct distribution accounts.
MANAGEMENT TEAM
Richard SymonsCHIEF FINANCAL OFFICER
Emily PaffPRODUCTION MANAGER
Su ChingTECHNICAL MANAGER
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Peter Devine [Chairman] – Capital Investment & Tech Start-Up
Peter Devine is CEO of Uniseed. He has extensive experience in the commercialisation of early stage technologies, with exits in excess of $1.75Bill
Sarah Jones [NED] – FMCG Business
Seventeen years in brand building and innovation roles with Sanofi and leading FMCG business, has experience on China expansion in the heath consumer goods
Michael Angliss [NED] – Commercialisation Intellectual Property
Chief Intellectual Property Officer of UniQuest. Provides over 20yrs in IP management
and commercialisation.
Jim Kalokerinos [NED] – Capital Investment & Tech Start-Up
Over thirty years’ experience in business development and sales, Jim has co-founded three companies and has experience in M&A, capital raising and IPO (PanBio)
Providing a wealth ofexpertise, guidance andindustry networks for the PERKii team.
TEAM AND
ADVISORS
Peter Devine [Chairmen] –Capital Investment & Biotechnology
Peter Devine is CEO of Uniseed. He has extensive experience in the
commercialisation of early stage technologies, with exits in excess of $1.75Bill
Adrian Popek [NED] – FMCG Business
Strong sales and marketing experience over 15 years, including Trade Marketing and
International Business Manager at nudie foods during its meteoric drive to acquisition
Sarah Jones [NED] – Business in Asia & BioPharmacuetical
Seventeen years in brand building and innovation roles with Sanofi and leading
FMCG business, has experience on China expansion in the heath consumer goods
Cameron Turner [Advisor] –Commercialisation
Food technology Entrepreneur and CEO of ProGel. Experience in identifying and
fostering multinational licensing opportunities.
Jim Kalokerinos [NED] – Capital Investment & Biotechnology
Over thirty years’ experience in business development and sales, Jim has co-found
three companies and has experience in M&A, capital raising and IPO (PanBio)
Geoff Cockerill [NED] –FMCG Business
Senior Executive with International and domestic experience. A track record
for driving revenue and profit with senior positions Diageo and Lion
Providinga wealth of expertise,guidance andindustry networks for the PERKii team.
TEAM AND
ADVISORS
Peter Devine [Chairmen] –Capital Investment & Biotechnology
Peter Devine is CEO of Uniseed. He has extensive experience in the
commercialisation of early stage technologies, with exits in excess of $1.75Bill
Adrian Popek [NED] – FMCG Business
Strong sales and marketing experience over 15 years, including Trade Marketing and
International Business Manager at nudie foods during its meteoric drive to acquisition
Sarah Jones [NED] – Business in Asia & BioPharmacuetical
Seventeen years in brand building and innovation roles with Sanofi and leading
FMCG business, has experience on China expansion in the heath consumer goods
Cameron Turner [Advisor] –Commercialisation
Food technology Entrepreneur and CEO of ProGel. Experience in identifying and
fostering multinational licensing opportunities.
Jim Kalokerinos [NED] – Capital Investment & Biotechnology
Over thirty years’ experience in business development and sales, Jim has co-found
three companies and has experience in M&A, capital raising and IPO (PanBio)
Geoff Cockerill [NED] –FMCG Business
Senior Executive with International and domestic experience. A track record
for driving revenue and profit with senior positions Diageo and Lion
Providinga wealth of expertise,guidance andindustry networks for the PERKii team.
BOARD OF DIRECTORS
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USE OF FUNDSPERKii will use these funds for the following activities:
Working Capital
▪ Working Capital to build scale in Australia and reach profitability
▪ Continued investment in price promotional activity in-store with key supermarket chains to maintain/grow sales rates
▪ Launch activities to drive consumer awareness and trial of new NPD using existing route to market network
▪ Business has renegotiated material commercial arrangements to improve cash management and is using Receivables Financing on a
monthly basis
Technical Development
▪ Ongoing R&D to support stronger health claims and competitive point of difference for use in marketing communications
▪ Investment in technical resource to accelerate New Product Development for ANZ and Export
▪ Small investment in encapsulation equipment to improve efficiency and reduce COGS
Export Development
▪ Engagement with export markets such as USA and UK put on hold during COVID-19 but further technical development work is needed to
prepare the inoculum for export
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THE OFFER
We are seeking $1.0m via an extension of the 2020 Convertible Note to fund working capital needs and will considerinvestments above this amount if oversubscribed
▪ First close on April 16 2021
▪ The Offer will remain open until August 27 2021 unless fully subscribed earlier, available for existing and new shareholders on ‘first in” basis.
Convertible Note Terms: (same as the terms offered in 2020)
▪ Converts at a 30% discount to the lower of either:
▪ Share price of next financing round (including ‘exit’ share price if no next financing); or
▪ Share price of previous financing round of $3.66 (=$2.562)
▪ Accrues 8% p.a. coupon convertible to shares as above ending two years after first close.
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OVER NEXT 3-4 YEARS …
The business aims over the next 2 years;
▪ Net Revenue of $6-7m in ANZ
▪ Cashflow positive
▪ Improve margins from lower costs as scale builds
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The business aims over the next 3-4 years;
▪ Net Revenue of $10-15 m in ANZ and selected global markets
▪ Positive Net profit while still investing in sales, marketing and R&D technology
▪ Positioned for a Trade sale or IPO
CONTACT DETAILS
Anthony Davie
CEO, PERKii
+61 407 872 054
Peter Devine
Chairman, PERKii
+61 409 631 581
For more information about PERKii Probiotics, our products and the opportunity to invest, contact either:
www.PERKii.com /perkiiprobiotics 26
INVESTOR INFORMATION 2021
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