Announcement PDF 5 February 2024 ASX RELEASE FY24 Results Highlights and Investor Roadshow The Calmer Co. International Limited (ASX:CCO), a health and wellness company focussing on natural products that promote calmness, support mind & muscle relaxation and improve sleep, advises that CCO will attend investor meetings on 6 February 2024 in Brisbane. Anthony Noble CEO will deliver a presentation highlighting the preliminary half-year results and financial pathway to breakeven analysis. This announcement has been approved by the Board of Directors of The Calmer Co International Limited ends The Calmer Co International Limited ACN 169 441 874 96 Victoria Street, West End Qld 4101 for further information Investor & Media Relations Matthew Reede Dominion Communications matt@dominion.partners +61 414 483 054 about The Calmer Co. The Calmer Co. International Limited (ASX:CCO), provides natural solutions to calm nerves, support mind and muscle relaxation and induce sleep. The product range includes drinking powders, teas, shots, concentrates and capsules. Sold under our house of brands: Fiji Kava, Taki Mai and Danodan Hempworks in markets including USA, Australia, China New Zealand and Fiji. The company is also the distributor of Leilo kava drinks in the Fiji Islands. forward looking statements This ASX release includes certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Fiji Kava. These factors may cause actual results to differ materially from those expressed in the statements contained in this announcement. 2 ASX:CCO d is cla imer This presentation and any Materials provided (materials) have been prepared by The Calmer Co. International Limited (CCO) and contain general information about CCO’s activities. By accepting the Materials and attending the CCO presentation, you agree to be bound by the below terms and conditions. Terms and Conditions This presentation is provided for information purposes only. The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should assess their own individual financial circumstances and consider talking to a financial adviser or consultant before making any investment decision. Certain statements in this presentation may constitute forward looking statements. Such statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company and which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. While all reasonable care has been taken in relation to the preparation of this presentation, none of the Company, its subsidiaries, or their respective directors, officers, employees, contractors or agents accepts responsibility for any loss or damage resulting from the use of or reliance on the presentation by any person. Past performance is not indicative of future performance and no guarantee of future returns is implied or given. Some of the information in this presentation is based on unaudited financial data which may be subject to change. All values are expressed in Australian currency unless otherwise stated. All intellectual property, proprietary and other rights and interests in this presentation are owned by the Company. v is ion Our vision is a happier world where people take better care of themselves p u r p os e We exist to provide powerful natural solutions to reduce stress and anxiety and support sleep and recovery mis s ion To lead the market for natural products that bridge the therapeutic and recreational space to become globally synonymous with calm Corporate Snapshot FY24 RESULTS HIGHLIGHTS Revenue Growing $1.45m (+91%) H1 Revenue Vs 746k H1FY23 Profitability Improving ($1.6m) (+32%) H1 EBITDA Vs. (2.37m) H1FY23 .006 ASX Ticker Code Share Price 30Jan2024 857,495,182 $5.1m Shares on Issue >$8,000/day (5x increase over 2023) Daily e-commerce sales globally in Dec 23 $4.7m Annualised sales based on December 23 [>390k] ASX OVERVIEW CCO.ASX HIGHLIGHTS Market Capitalisation 35% Gross Profit Margin 34% Reduction in Net Cash Used in Operations ($1.2m in H1FY24 vs $1.9m in H1FY23) Preliminary unaudited H1FY24 figures presented ou r b r a n d s : f iji k av a ou r b r a n d s : t a k i ma i ou r b r a n d s : d a n od a n Tr a n s p a r en t , Fa ir t r a d e Su p p ly Ch a in is ou r cor e comp et it iv e a d v a n t a ge • Over 10 years and $10m has been invested to build a supply chain that would be especially difficult to replicate for any other company in the industry. • Commercial supplier relationships across the 8 major provinces in Fiji. • Partnership with iTaukei Trust Fund Board & Tutu Agricultural College provides a conduit to 60-70% of kava farmers in Fiji (via Cakaudrove Province) • Digitisation of supply chain with Traceable Solutions being rolled out • Partnership with KaiMing Agricultural Processing (KAP) in place for coprocessing, new product development and envisages corporate acquisition • Facility and supply-chain working towards 5x in the coming year with modest Cap-Ex upgrading key production steps (drying, milling and pouch-fill) Operating Highlights 2023 Ecommerce growth Fiji Kava is now the number 1 instant kava brand selling on Amazon.com1 sales exceed $3,000/day. Global ecommerce sales are now over $8,000 per day CJ Patel distribution deal Targeting AUD11m over initial 3-year term with one of the Pacific region’s most recognised distribution partners across 17 countries. First sales orders valued at FJD $300k (AUD $210k) received and shipped in July. Leilo global partnership The Calmer Co. signed a deal to distribute Leilo ready to drink beverages in a number of global markets. Distribution has commenced in tourist and resorts channels in Fiji . Coles Australia – Profitable Retail Strategy Sales of 50g pouches of powdered drinking kava grew strongly in 2023 Coles has now listed the Taki Mai 50mL kava-shot from Q1 2024 Coles has added the larger 150g Drinking Kava SKU to around half of all stores in the next planogram changeover in 2024 1 Acosta/OeP Amazon data 2023 ECOMMERCE FOCUS IN 2024 Global Daily Ecommerce Sales AUD 8,500 Global ecommerce sales $8500/day in January AUD 7,500 Ecommerce sales grew 86% from Q1 to Q2 FY24! USA Fiji Kava Instant Kava remains the #1 on Amazon USA Sales are consistently above USD2000/day Shopify USA will deliver more than 30% greater profitability vs. Amazon USA and will be a focus in 2024 AUD 6,500 AUD 5,500 AUD 4,500 AUD 3,500 AUD 2,500 Australia Meaningful investments in SEO, Organic Search and Meta has shown good results since April on www.fijikava.com.au China Fiji Kava Global Flagship Store is now live on Alibaba’s Tmall AUD 1,500 PROFITABLE RETAIL Coles Australia First major Australia retailer to launch drinking kava following the announcement of the commercial importation pilot. Sales through Coles are profitable and growing . Taki Mai Cold Pressed Kava 50mL Shots and 150g SKU will be ranged in Coles nationally in March. CJ Patel – Taki Mai® • Fiji and 12 Pacific Islands Launched in May 2023 • New Zealand Launched June 2023 Jack’s of Fiji – Leilo® First orders of Leilo for the Fiji resorts and tourist channel has shipped from USA, arriving in Fiji end of month. Leilo launched into tourist stores and resorts! USA KAVA BAR MARKET Rapidly Growing Direct & B2B Sales An untapped opportunity • Hundreds of kava bars now operating in the USA and numbers growing fast • The supply of kava to these retailers is unreliable • Demand is estimated to be 70MT per year Ready to start in 2024 • 1.5MT of Fiji Kava bulk kava has arrived in the USA • Sales and Marketing activation is completed • Faire.com B2B Sales platform enabling repeat purchase • First orders are now being taken from kava bar clients Additional Value adds to Kava Bar Clients • Bulk sales for Danodan CBD tinctures products • Taki Mai Juice Shots are an ideal long life take-away • Merchandise and Shopfitting products Gr ou p Per f or ma n ce s h ow s t u r n a r ou n d Key Performance Indicators (H1 FY24) $500,000.00 Sales Overheads Gross Profit $450,000.00 $400,000.00 All numbers trending in right direction $350,000.00 • Revenue growth accelerating over H1 • Expenses on steady downward trend • Gross Profit improving month on month $250,000.00 • Growth only limited by capital required to $200,000.00 rapidly expand inventory Segmental performance improving • US business now profitable on monthly basis • Fiji business largely self-sustaining • Australia business has been transformed with massive sales uplift on www.fijikava.com.au and focus on profitable smaller SKUs at Coles (50g and single shots) to support consumer trial $300,000.00 $150,000.00 $100,000.00 $50,000.00 $July August September October November December 13 Pa t hw ay t o Br ea k ev en Strong Sales growth in defined channels demonstrates path to breakeven at sales of $1m per month • • • Grow Australian ecommerce to 500k per month from base of 150k in December (3x) • Monthly average growth rate was 15% in 2023 globally. • 2023 growth was >10x in the Australian market2 USA ecommerce to 300k per month from base of 100k per month in December (3x) • Amazon grew 2x in 2023, we add our own Shopify channel in 2024 with learnings from Australia • USA market size is significantly larger than Australia! Retail and B2B Sales globally to 200k per month from average of 90k per month in H1 of FY24 (2x) • Coles Australia, USA Kava Bars channel, CJ Patel Pacific Distribution, Fiji Tourist Channel, IMCD, Alibaba Tmall China 2 sales average 7k in Q1 (Jan-Mar) to 140k in Q4 (Oct – Dec) Breakeven Analysis* 14 *Analysis is based on current gross margins (cost base), kava prices, Cost of Acquisition and ROAS ou r t ea m Vin a k a (t h a n k y ou )