Candy Club : AGM Presentation

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ANNUAL GENERAL MEETING

MAY 2022

AUTHORISED BY THE BOARD OF DIRECTORS

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DISCLAIMER

This presentation (the Presentation) is provided by Candy Club Holdings Ltd ACN 629 598 778 (ASX.CLB) (Candy Club or CLB).

LIMITED PURPOSE OF THE PRESENTATION​

The Presentation does not purport to contain all information the recipient of the Presentation (Recipient) onlymay require or consider material in respect of evaluating its potential participation in a transaction. The Recipient must rely on its own independent enquiries in respect of all information contained in the Presentation. The Presentation is not, and does not purport to be, a recommendation or the making of an offer to the Recipient to participate in a transaction. Certain information has not been included in the Presentation although the Recipient may consider such information to be necessary to its decision as to whether to participate in a transaction. The information contained in the Presentation is of a general nature only. It has been sourced from publicly available information as well as non-public information. Candy Club nor any of its other advisors has verified or conducted an independent appraisal of the information contained in the Presentation (including the Forward Looking Statements discussed below) and none of

them is under any obligation to correct, update or revise the Presentation or any information in it.

useNO LIABILITY, REPRESENTATIONS OR WARRANTIES

Neither Candy Club nor any of its directors, officers, employees and advisors shall have any liability for direct, indirect or consequential loss or damage suffered by any person (whether arising from negligence or otherwise) arising from or in connection with any representations or warranties (expressed or implied) or any information contained in or any omissions from, the Presentation (including Forward Looking Statements) or any written or oral communications transmitted to the Recipient in the course of its evaluation of any transaction, and does not make any representations or warranty, expressed or implied as to the accuracy, completeness or thoroughness of any information contained in the Presentation or any other information provided to the Recipient.

ersonalFORWARD LOOKING STATEMENTS​

The Presentation may also contain quantitative statements of anticipated future performance such as projections, forecasts, calculations, forward-looking statements or estimates all of which are based on certain assumptions (Forward Looking Statements). The Forward Looking Statements involve subjective judgements and are based on a large number of assumptions and are subject to significant uncertainties and contingencies, many of which are outside the control of Candy Club and may not prove to be correct. No representation or warranty is made that any Forward Looking Statements will be achieved or occur or that the assumptions upon which they are based are reasonable or the financial calculations from which they have been derived are correct. Actual future events may vary significantly from the Forward Looking Statements. Each Recipient should undertake its own independent review of the Forward Looking Statements, including the assumptions on which they are based and the financial calculations from which they are derived.

NO INVESTMENT ADVICE

The information in this presentation does not constitute investment advice or a recommendation to acquire Company securities and has been prepared without taking into account the objectives, financial situation or needs of particular investors. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. Candy Club is not licensed to provide financial product advice in respect of its securities or any other financial products. Candy Club assumes that the Recipient is capable of making its own independent assessment, without reliance on this document, of the information and any potential investment and will conduct its own investigation.

EXCLUSION OF LIABILITY

Candy Club and its directors, officers, employees, advisors and agents expressly disclaim any and all liability (including, but not limited to, negligence) for, based on or related to any information, statement or opinion (including any Forward Looking Statements) contained in or omitted from this Presentation, or for any errors in this Presentation or any written or oral communications transmitted to the recipient in the course of the Recipient's evaluation of Candy Club, except for any liability which cannot be excluded as a matter of law.

RISK FACTORS​

An investment in Candy Club is subject to risks. "Risk" refers both to the variability and volatility of an investment return (the possibility of a fluctuation or decrease in the amount of income generated, or a lower than expected rate of return) and the likelihood of incurring a loss on your investment (the possibility that you will lose some or the entire initial amount invested). There are a number of risk factors that may have a material adverse effect on Candy Club's future operating and financial performance.

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CONTENTS

1. Executive summary
2. Financial summary
3. Company updates
4. Company overview
5. Appendix

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onlyEXECUTIVE useSUMMARY

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EXECUTIVE SUMMARY

ABOUT US

onlyCandy Club Holdings Limited (ASX: CLB) is a US based confectionery company that is focused on its fast-growing B2B wholesale business which has grown out of a long running B2C subscription business. Candy Club's strategy is to acquire prominent national retail accounts, as well as small and mid-sized brick and mortar accounts and

useeCommerce websites of all sizes, in order to own the under-utilised retail space at point-of-sale.

CLB utilises best of breed contracted confectionery manufacturers globally and controls its own branding and distribution strategy.

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FINANCIAL HIGHLIGHTS

In the FY2021, Candy Club nearly doubled its net revenue to US$16.5 million from US$8.7 million in FY2020, an increase of 91% or 1.9x

This was mainly driven by its B2B segment which posted $14.5 million in gross revenue, representing an impressive YoY growth of 118% or 2.2x.

Candy Club expanded its gross margins to 40% for FY2021.

In 1Q FY2022, Candy Club total net revenue reached US$4.3m, a growth of 10% as compared to 1Q FY2021, mainly contributed by its B2B segment, which grew 16% on a YoY basis. Gross margins continued to improve, recording 45% for the quarter (1Q FY2021: 43%).

OPERATIONAL HIGHLIGHTS

Candy Club continued to meet or exceed all operating KPI expectations.

As at 1Q FY2022, Candy Club's total number of retail doors continued to grow to more than 31,000 and the number of B2B customers exceeded 19,000.

The Company's quarterly reorder rates from its top 25 customers once again achieved an impressive 92%.

With the Company's recent national account wins, Candy Club will be on a growth trajectory in the coming quarters as these new and existing direct selling accounts continue to scale.

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