INVESTOR CALL 16 FEBRUARY 2022 PAUL PEROS - HotCopper
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INVESTOR CALL 16 FEBRUARY 2022 PAUL PEROS
DISCLAIMER This presentation contains certain “forward-looking statements” concerning Wellfully. Where Wellfully expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. Forward-looking statements provided in this announcement are based on assumptions and contingencies which are subject to change without notice. Such forward-looking statements including statements regarding intentions, planned events and potential results are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements, and there are risks associated with Wellfully and the industry which may affect the accuracy of the forward-looking statements. Wellfully does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. ASX:WFL – Feb 2022 2
WELLFULLY CORPORATE SNAPSHOT
AN INNOVATIVE WELLNESS COMPANY WITH GLOBALLY DISRUPTIVE PRODUCTS
About Wellfully Limited (ASX:WFL) Share Price Performance
Wellfully Limited (‘Wellfully’ or ‘the Company’) is the world’s first fully-integrated,
25 0.2
science-based wellness company. Over the past two years, the Company has
leveraged its vast enhanced drug deliveries technology inventory and developed
industrial infrastructure and its own product portfolio. 0.18
Wellfully is active in the highly attractive beauty and personal care, beauty device, as
well as the health and pain relief markets delivering innovative products through 20 0.16
collaborations with industry majors spanning licensing, joint development and OEM.
Additionally, the Company has launched its own global cosmetic and healthcare
0.14
brands, RÉDUIT and SWISSWELL, which are positioned to disrupt blockbuster global
markets.
Share Price (A$/Sh)
15 0.12
Supported by a highly experienced Board and Management, Wellfully is poised to
Volume (M)
deliver notable and sustainable results.
0.1
Corporate Snapshot*
10 0.08
Share Price $0.068
0.06
Shares on Issue ~249.8m
5 0.04
Options on Issue ~165.1m
Market Capitalisation ~$17.0m 0.02
Top 20 35.9% 0 0
Board & Management 9.3%
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Volume Share Price
*Share price, market capitalisation, share holdings as at 15 February 2022
ASX:WFL – Feb 2022 3AGENDA
INVESTOR CALL
INTRODUCTION
ASX:WFL – Feb 2022 4INTEGRATED BUSINESS DEVELOPMENT
TOP LINE DEVELOPMENT FOR THE FY 2020-2021 AND 2022 YTD PERIOD
Revenues, k$ Own brands and products
1'600
Without R&D subsidies, the revenues in
1'200 577 the first 6 months of FY2022 were
205
dominated by own product and brand
258
800
sales, surpassing the total revenues of
1'195
the past two years combined by over
907
400 740
20%
0 54
FY 2020 FY 2021 FY 2022 YTD* Note: the R&D subsidies for FY2022 are
R&D subsidies Tech licensing Own products & brands expected H2.
The shift from technology licensing to own brands and products is gaining momentum
*Non-audited revenues for the 6 months from July 1 to December 31, 2021
ASX:WFL – Feb 2022 5FY2022 OPERATIONS CASH PERFORMANCE (1/3)
COMPARISON WITH FY2021
Q2 Customer Receipts ($200k) Increase in external digital advertising costs
Across the sector, industry customer acquisition prices have
increased by 3x between Jan and Dec 2021
Seeking top line performance beyond the $200k would
have been excessively expensive
Actions taken to limit exposure to ad costs
Deferring ad spend in Nov to Dec 2021 until ROI metrics are
more favorable in 2022
Migrate to product-focused (Boost and Kickstarter) and
earned (PR) communication channels
Move Boost Kickstarter campaign itself to Feb 2022 (lower
costs outside holiday season)
COVID-19-driven shift from B&M to digital channels led to an explosion in online advertising costs
More competitive channels and campaigns should allow for better performance on B2C cash receipts in Q3
ASX:WFL – Feb 2022 6FY2022 OPERATIONS CASH PERFORMANCE (2/3)
COMPARISON WITH FY2021
Q2 Outflows ($3.130k) Material costs for key projects (+$201k)
• Sourcing the components for the go-live of RÉDUIT
Boost for March 2022
• Pipeline filling for SWISSWELL Lubricen B2B launch now
possible with the EU product registration
• Sourcing of materials for the second order of Bork
expected to be delivered in Q3 FY2022
Marketing costs (+$326k)
• Increase in the prices of advertising as above,
• Continuation of upfront investments needed to ensure
growth in future – specific cycle typical to high-
innovation products (as compared to mature products)
Staff costs (+$297k)
• Over half of the increase are one-time costs – the
remainder is in line with the expected development
(about 15%)
Q2 outflows include costs needed for the commercial development in Q3 and beyond
In addition, greater cost-efficiency is expected on both marketing and staff costs in Q3
ASX:WFL – Feb 2022 7FY2022 OPERATIONS CASH PERFORMANCE (3/3)
COMPARISON WITH FY2021
Q1 vs Q2 (vs Q3) Customer Receipts Cash flows in a rapid growth environment
The Q1 receipts had a significant positive impact from
the initial order and pipeline filling inflows from Bork
Fulfillment and payment were completed mid-
September with a large portion of the receipts
recorded in Q1, not Q2
B2C receipts for both RÉDUIT in Q2 vs Q1, as well as
SWISSWELL Q3 (YTD/already) vs Q2 have both more
than doubled
Day-to-day operations seek efficiency in cash
deployment across all operations and marketing
activities
WELLFULLY is a fully-integrated company focused on building a solid foundation for value capture with
highly innovative and differentiated products and brands in a complex and competitive environment
ASX:WFL – Feb 2022 8ENSURING CONTINUED DEVELOPMENT
FOCUS ON CASH FLOW
Operations CF Optimization of discretionary spent in digital advertising
Efficient scaling of B2C activities – and alternative comms channels
Focus on larger inflows (collaborations, R&D subsidies)
Investing CF Opportunities to significantly reduce sourcing costs for SWISSWELL by
insourcing and integration into industrial infrastructure
Financing CF Evaluating access to capital through a wider spectrum of options
including strategic partnering and investments
WELLFULLY has developed and evolved its operations rapidly over the last two years
The investment and financing strategies are continuously being aligned accordingly
ASX:WFL – Feb 2022 9AGENDA
INVESTOR CALL
INTRODUCTION
ASX:WFL – Feb 2022 10BOOST Get The Most Out of Your Favorite Skincare with 1st SMART PERSONALIZED SKIN CARE DEVICE
RÉDUIT BOOST PRODUCT EFFECTIVENESS DEMO VIDEO
BOOST
THE NEW STANDARD IN PRECISION BEAUTY
SUPERIOR FOR A REASON:
ULTIMATE PERSONALIZATION - takes into consideration
your age, gender, skin type, skin concerns and climate,
connecting it with active ingredients and matching LED light
to form a unique profile just for you
ENHANCED DELIVERY TECHNOLOGY - identifies active
ingredients in your skincare product, pushing them deeper
into skin, where they work the best
LED LIGHT THERAPY - matches your skincare product with
specific LED light color for an even more personalized,
complementary LED treatment
SMART DESIGN - fits the palm of your hand perfectly;
minimal, ergonomic, lightweight - an ideal travel companionKICKSTARTER LAUNCH CAMPAIGN INTRO VIDEO
KICKSTARTER LAUNCH CAMPAIGN ETA E-O-THIS WEEK
RETAIL COLLABORATIONS
BOOST AT THE POINT-OF-SALE (POS)
UNIQUE RETAIL VALUE PROPOSITION
Universal – any skincare product
Differentiated – without equal
Complimentary – add-on sales
ATTRACTIVE POS CONCEPT
Experience – product discovery
Engagement – POS configuration
Flexibility – different display formats
Reach – w/o the burden of the app
Extremely positive feedback in multiple early collaboration
discussions. Beyond the WOW Madrid POS (in execution)
the in-store digital presentation and configuration concept
will be adopted for new placements across both RÉDUIT
and possibly Bork brands (discussions in progress).CRM AND BEYOND
CONSUMER POINT-OF-USE INSIGHT
INFORMATION
Users – age, location, skin type, concerns
Products – categories, brands, products
Usage – frequency, routines, satisfaction
VISIBILITY
1.5 M uses/month - 25k units in market scenario
Presence at point of use – not site/app
Ability to directly engage through the app
VALUE
Continuous optimization – waveforms, user interface/content
Conversions to RÉDUIT applicators and Skinpods
Peer group and category recommendations
Efficient coops with retail partners and 3rd brands
3rd party product sampling and commercial collaborationsAGENDA
INVESTOR CALL
INTRODUCTION
ASX:WFL – Feb 2022 18GO-TO-MARKET
IMPORTANT MILESTONES IN PROGRESS
B2C ACTIVITIES
Feedback from consumers extremely positive – solving problems
Subscription, referrals and loyalty program live
2022 orders already surpassed the total in 2021
Scaling in preparation – testing messaging, keywords, …
B2B ACTIVITIES
Distribution collaborations possible with the EU registration
Trade marketing content perimeter defined
Distribution partners WIP/in execution in: Spain, Italy, Croatia,
Slovenia, Romania and Bulgaria
PRODUCT SOURCING
Trade marketing content perimeter defined
2nd production batch received
3rd (Feb) and 4th (Apr) in arrival
ASX:WFL – Feb 2022 19GOING FORWARD
KEY FOCUS AREAS FOR 2022
B2C ACTIVITIES
Secure product-in-hand and sampling opportunities
Advance and accelerate efficient scaling and growth
B2B ACTIVITIES
Distribution: rest of European markets, MEA
Retail collaborations: UK and US
PRODUCT SOURCING
Product cost reduction
Insourcing of key processes
Integration into existing infrastructure
ASX:WFL – Feb 2022 20COMPANY Email: henko.vos@nexiaperth.com.au ADVISORS Matthew Wright – NWR Communications Email: matt@nwrcommunications.com.au Phone: +61 451 896 420 Alastair Murray – Candour Advisory Email: alastair@candouradvisory.com.au Phone: +61 415 629 977 ADDRESS Wellfully Ltd - 284 Oxford Street, WA, 6007, Leederville Australia ASX:WFL – Feb 2022 21
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