Corum Group Limited

FY22 Results
5 September 2022
Important Notice & Disclaimer
This presentation has been prepared by Corum Group Limited (COO or the assurance that the results, performance or achievements expressed or implied by
Company or Corum). It should not be considered as an offer or invitation to the forward-looking statements contained in this document will actually occur or
subscribe for, or purchase any shares in COO, or as an inducement to purchase that the assumptions on which those statements are based are exhaustive or will
any shares in COO. No agreement to subscribe for securities in COO will be prove to be correct beyond the date of its making.
entered into on the basis of this presentation or any information, opinions or
conclusions expressed in the course of this presentation. Readers are cautioned not to place undue reliance on these forward-looking
statements. Except to the extent required by law, the Company has no intention
This presentation is not a prospectus, product disclosure document, or other to update or revise forward-looking statements, or to publish prospective financial
offering document under Australian law or under the law of any other jurisdiction. information in the future, regardless of whether new information, future events or
It has been prepared for information purposes only. This presentation contains any other factors affect the information contained in this presentation.
general summary information and does not take into account the investment
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not a financial product advice and the Company is not licensed to, and does not take their own independent professional advice in relation to the information and
provide, financial advice. any proposed action to be taken on the basis of the information. To the
maximum extent permitted by law, the Company and its professional advisors and
This presentation may contain forward-looking statements which are identified by their related bodies corporate, affiliates an each of their respective directors,
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management. affect any matter referred to in the presentation.

Although the Company believes that the expectations reflected in the forward-
looking statements included in this presentation are reasonable, none of the
Company, its Directors or officers can give, or gives, any

2
FY22 Financial Highlights
Financials

Metric FY22 Result Vs pcp H2 vs H1

Health Services revenue $12.0m + 1% (4)%

Underlying EBITDA $3.7m(1) (15)%(2) + 16%

Underlying NPAT $1.1m(1) (47)%(3) + 86%

Operating cashflow excl net R&D tax incentive $1.7m + 18% + 24%

Cash on hand $5.8m (11)% (10)%

(1) Excluding PharmX legal costs / restructuring / corporate advisory consulting $(1.1)m
(2) Excluding PharmX + BAMM legal costs / restructuring / redundancy $(1.3)m
(3) Excluding PharmX + BAMM legal costs / restructuring / redundancy $(1.3)m, BAMM Settlement $(1.5)m, fair value adjustments +$1.7m

3
FY22 Operational Highlights
PharmX expansion and growth
• PharmXchange platform launched – a digital sales and marketing solution for suppliers that improves efficiency in
pharmacies

• FY22 supplier-to-pharmacy connections growth of 15%

Pharmacy software progress

• Group wins in the period include Go Vita, a chain of 120 health and vitamins stores who are piloting our new Point of
sale solution

• Cyber Defence launched in H1 FY22. This “whole of market” cyber protection product is designed to prevent
increasingly prevalent ransomware attacks and ensure pharmacy patient data is protected.

Real Estate eCommerce divestment

• Our non-core e-commerce business unit was disposed of during the year.

• Consideration received of $0.5m cash

Organisational development
• Upskilling of workforce, new positions to drive new initiatives and upgrading of key roles

• Restructuring to improve business efficiency

4
PharmX- Connecting the pharmacy
industry
What is PharmX?

• Trusted & reliable pharmacy electronic order & invoicing gateway since
2006

• Key component of the Australian pharmacy supply chain

• Connects over 99% of Pharmacies with their Wholesalers and Direct

Suppliers

• Developing presence and network in New Zealand

• Handled over $15bn of transactions in FY22

• Corum moved to 100% ownership in September 2020

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Delivering our strategy for PharmX

Increase the number of suppliers

• Make it easier for suppliers to connect

• Deepening our engagement with suppliers

• Continue to add new suppliers, now with 65 suppliers using the platform.
This is YoY growth of 10%, and growth since acquisition of PharmX of
16%.

• Long term agreements signed with key wholesalers – Sigma, Symbion,

Clifford Hallam as well as key supplier DHL.

6
Delivering our strategy for PharmX
Improving pharmacy utilisation rates

• Incentivising pharmacies to increase usage – average pharmacy has 6 supplier connections.

• Retail group agreements signed with key retail pharmacy groups to drive utilisation. Agreements signed in FY22
represent approximately 900 pharmacies including Pharmacy Platform, TerryWhiteChemmart, Blooms the Chemist and
Direct Chemist Outlet will drive utilisation rates and future revenue.

7
PharmX Growth
New Retail Group and Supplier Agreements are beginning to deliver an uplift in utilisation rates,
and an increase in the number of supplier-to-pharmacy connections.
Current active connections
Lead indicator – total existing (excluding certain customer
Pharmacy to supplier volume reductions)1 have grown:
connections have grown:
• 13% YTD (4% pcp)
• 15% YTD (8% pcp) • 16% since acquisition
• 23% since acquisition

1Including industry structural change, total active connections have grown +6% since acquisition, and +3% YTD
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Delivering our strategy for PharmX

Developing new functionality - PharmXchange

• An Opportunity presents because the current PharmX business model

doesn’t resonate with small suppliers and therefore doesn’t resolve all the
manual processing issues at pharmacy level

• In addition, the current business model doesn’t meet all the needs of the
large suppliers such as product and promotion information, payments and
supply chain inventory

• Resolving these issues allows PharmX to access significant revenues

• PharmXchange has been developed to address these gaps

• PharmXpay payments solution integrated into the PharmXchange

platform to drive ease of transaction

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PharmXchange – Enabling pharmacy
trade

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PharmXchange – Enabling pharmacy
trade
• Launched in June 22 to provide additional
services to Pharmacies & Suppliers
• Highly integrated with the industry proven
PharmX gateway
• Opportunity to develop incremental
earnings stream leveraged to platform
sales

Key Benefits for Pharmacies Key Benefits for Suppliers

• A feature rich tailored platform assisting • Digital Sales and Marketing solution for Brands
Pharmacy efficiency and Products
• A central, convenient platform to access a range • Effective method to access and market to a large
of Supplier Promotions number of Pharmacies
• Fast & secure Supplier Payments using • Allows field sales personnel to focus on high
PharmXpay value opportunities and tasks
• Opportunities to reduce manual processing • Efficient way to access regional and new Pharmacy
through automation customers

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PharmXchange – progress to date
PharmXchange Progress To Date
• Pilot Program announced end of June 2022

• Initial Pilot included 15 Pharmacies and 10 Suppliers

• Initial Pilot Suppliers include leading global pharmacy Suppliers Haleon (previously
GSK Consumer Healthcare) and Revlon

• Haleon launched full brand and product range in early August

• Pilot Program recently expanded to uplift to 100 Pharmacies

• Pharmacy interest across a broad range of Banners & Independents

• Pipeline of over 20 Suppliers either now live or in provisioning

PharmXchange Scaling Strategy

• Currently executing controlled rollout ahead of initial plan

• Near term focus on Controlled Rollout and Platform Operation Validation

• Extensive Supplier engagement across a broad base of Suppliers

• Progressive Pharmacy engagement with both Groups and Independents

• Opportunity to extend into other geographies and adjacent markets

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Pharmacy software progress
Transitioning from legacy to new

• Strategy to increase market share by targeting groups

through our relationships and market leading Head Office
product
• Build on Dispense, Point of Sale and other product
opportunities through these partnerships
• Transition from LOTS Dispense to Corum Clear Dispense
• Transition from LOTS POS to Corum Clear Retail
• Notable Group win in the period was Go Vita, a chain of
120 health and vitamins stores partially offset by loss of a
50 store group
• Go Vita piloting our new POS Corum Clear Retail
• Launched Cyber Defence a cyber protection product, in
the year

13
Other matters - update

CEO search Court Case M&A

Recommenced after being paused Mediation in September 2022 Now having disposed of
temporarily pending a review of the eCommerce, we are a fully focused
business structure With full hearing currently healthtech business looking to
scheduled for October 2022 supplement our organic growth
with value creating M&A

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Financials
FY22 Financial Snapshot
Revenue growth continues, EBITDA remains positive
Results1 H1 FY22 H2 FY22 FY22 FY21 ∆ PCP ∆ H1'22

Revenue $6,101 $5,850 $11,951 $11,875 1% -4%

Underlying Expenses ($4,404) ($3,877) ($8,281) ($7,539) 10% -12%

EBITDA (reported) $1,385 $1,159 $2,544 $2,995 -15% -16%

EBITDA (underlying)2 $1,697 $1,973 $3,670 $4,336 -15% 16%

EBITDA Margin
28% 34% 31% 37% -6% 6%
(Underlying)

• Health revenue growth driven by PharmX.

• Operating expenses have increased this year in
line with expectations as a result of additional
investment into people and skills. There has been
an effort in H2 to rationalise costs where possible
as can be seen in the HoH improvement of a 12%
reduction in underlying costs.
• Revenue growth and trajectory continues, strong
EBITDA margin of 31%

1Referto Page 23 in the appendix for detailed financial statements. Excludes eCommerce segment now held as a discontinued operation
2Adjusted to exclude one-off costs – see Page 23 Profit & Loss for detail on underlying calculations 16
3FY21 and FY22 adjusted to remove eCommerce revenue. FY16-FY20 is as reported, including eCommerce
Underlying EBITDA and NPAT Bridge
Revenue growth continues, investment into people and increased amortisation
drives decline in profit

1Referto Page 23 in the appendix for detailed financial statements. Excludes eCommerce segment now held as a discontinued operation. Adjusted to exclude one-off costs – see
Page 23 Profit & Loss for detail on underlying calculations
17
Continued Positive Cashflow
Net cash from / (Used in) Operating Activities ($'000)1

• Operating cashflow of +$1,726k

excluding R&D benefit, and +$3,281
$903 $956 including net R&D tax incentive
$770 received.
$559
$191
• Receipts from customers have grown
3% YoY driven by the contribution from
PharmX. The decline HoH is mainly due to
revenue decline in H2 and an increase in
($1,315) debtors at 30 June.
• Investment into new hires and the right
H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22 H2 FY22
skill sets to drive future revenue growth
has been offset by other operational
savings such as rent and travel costs
Receipts from Customers ($m)
resulting in improved operating cashflows
of +4% YoY.
$6.7
• Investment into our Clear Suite of
$6.5
products and PharmX assets has
continued to be a core focus to drive
$5.9 future revenue growth.
$5.7

• Closing cash on hand of $5.8m at 30 June

H1 FY21 H2 FY21 H1 FY22 H2 FY22 2022.

1Adjusted
18
to remove the impact of a net R&D tax incentive credit received
FY22 Summary

Revenue growth & generating

PharmX Growth Healthtech Focus
cash
Revenue growth of 1%, below our PharmXchange launched Now having disposed of
aim of 15% growth. eCommerce, we are a fully focused
Strategy in place to super charge healthtech business looking to
Healthy EBITDA margin of 31% returns from this valuable industry supplement our organic growth
combined with positive operating asset. with value creating M&A
cash flows.

19
Questions
Appendix
Corporate Overview
Corum Group Limited (ASX:COO) at 26 Aug 22 Capital Structure
Share Price 4.0cps Shares on Issue (m) 596.8

Market Capitalisation $23.87m Options / Perf Rights (m) 2.5

Enterprise Value (Cash 30/06/22) $18.11m Diluted Issued Capital (m) 599.3

Share Price Performance

12c 8

Volume (m)
8c

4c

0c 0
Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21 Feb-22 Apr-22 Jun-22 Aug-22

Volume Share Price

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Profit & Loss
Profit & Loss (A$000's) H1'22 H2'22 FY'22 H1'21 H2'21 FY'21 ∆ PCP ∆ H1'22

Revenue $6,101 $5,850 $11,951 $5,862 $6,013 $11,875 1% -4%

Health $6,101 $5,850 $11,951 $5,862 $6,013 $11,875 0.6% -4.1%

Expenses
Materials and consumables ($828) ($571) ($1,399) ($867) ($732) ($1,599) -12.5% -31.0%
Employee Benefits ($3,098) ($2,940) ($6,038) ($2,881) ($3,188) ($6,069) -0.5% -5.1%
Marketing ($135) ($129) ($264) ($58) ($103) ($161) 64.0% -4.4%
Technology, communication and cloud costs ($466) ($389) ($855) ($345) ($485) ($830) 3.0% -16.5%
Legal ($334) ($558) ($892) ($384) ($347) ($731) 22.0% 67.1%
Consulting - ($227) ($227) ($42) ($44) ($86) 164.0% #DIV/0!
Other ($25) ($117) ($142) ($65) $46 ($19) 647.4% 368.0%
Share based payments ($37) $16 ($21) - - - n.a. -143.2%
R&D tax benefit $207 $224 $431 $197 $418 $615 -29.9% 8.2%
Total Expenses ($4,716) ($4,691) ($9,407) ($4,445) ($4,435) ($8,880) 5.9% -0.5%

Statutory EBITDA $1,385 $1,159 $2,544 $1,417 $1,578 $2,995 -15.1% -16.3%

EBITDA (Underlying) $1,697 $1,973 $3,670 $2,189 $2,147 $4,336 -15.4% 16.3%
Depreciation and amortisation ($996) ($1,179) ($2,175) ($746) ($1,028) ($1,774) 22.6% 18.4%

EBIT (Underlying) $701 $794 $1,495 $1,443 $1,119 $2,562 -41.6% 13.3%
Finance costs ($40) ($31) ($71) ($18) ($116) ($134) -47.0% -22.5%
Income tax (expense) / benefit ($261) ($19) ($280) $91 ($359) ($268) 4.5% -92.7%

NPAT (Underlying) $400 $744 $1,144 $1,516 $644 $2,160 -47.0% 86.0%

One-off Items
BAMM & PharmX Legal Cost & Termination Payments ($312) ($814) ($1,126) ($772) ($569) ($1,341)
Fair value adjustment of investments - - - $1,727 - $1,727
BAMM Cloud-based Head Office Solution - - - ($1,468) - ($1,468)

Contribution from discontinued operations

eCommerce contribution ($1) $235 $234 ($15) $28 $13 1700.0%

Statutory NPAT $87 $165 $252 $988 $103 $1,091 -76.9% 89.7%

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Balance Sheet
Balance Sheet (A$000's) 30 June 22 - FY22 30 June 21 - FY21
Current assets
Cash and cash equivalents $5,759 $6,478
Trade and other receivables $1,085 $848
Inventories $42 $34
Income tax receivable $1,549 $1,548
Other assets $151 $298
Assets related to discontinued operations - $1,210
Total $8,586 $10,416

Non-current assets
Property, plant and equipment $291 $494
Right of use assets $312 $296
Intangibles $20,725 $19,285
Deferred tax assets $707 $804
Security deposits $148 $51
Assets related to discontinued operations - $1
Total $22,183 $20,931

Total assets $30,769 $31,347

Current Liabilities
Trade and other payables $3,828 $3,528
Provisions $900 $932
Lease Liability $303 $280
Deferred revenue $83 $152
Liabilities related to discontinued operations - $1,495
Total $5,114 $6,387

Non-current liabilities
Other payables $1,305 $726
Provisions $106 $109
Lease Liability $23 $41
Deferred Tax liability $1,018 $1,143
Liabilities related to discontinued operations - $11
Total $2,452 $2,030

Total Liabilities $7,566 $8,417

Net assets $23,203 $22,930

Equity
Issued capital $98,366 $98,366
Reserves $39 $18
Accumulated losses ($75,202) ($75,454) 24
Total equity $23,203 $22,930
Cashflow
Cash flow (A$000's) H1 FY22 $'000 H2 FY22 $'000 FY22 $'000 H1 FY21 $'000 H2 FY21 $'000 FY21 $'000

Cash flows from operating activities

Receipts from customers $6,682 $5,900 $12,582 $5,742 $6,487 $12,229
Payments to suppliers and employees ($5,990) ($4,849) ($10,839) ($5,329) ($5,614) ($10,943)
Interest and other revenue received $13 $16 $29 $91 $17 $108
Income tax paid ($433) $1 ($432) ($273) $1 ($272)
Research and development incentive $1,987 - $1,987 $1,973 - $1,973
Cashflows from discontinued operations $65 ($111) ($46) $55 $12 $67
Net cash from operating activities $2,324 $957 $3,281 $2,259 $903 $3,162

Cash flows from investing activities

Payments for property, plant and equipment ($62) ($34) ($96) ($178) ($122) ($300)
Payments for intangible assets ($2,199) ($1,680) ($3,879) ($2,099) ($1,690) ($3,789)
Acquisition of subsidiary - - - ($2,097) - ($2,097)
Cashflows from discontinued operations $25 $311 $336 - - -
Net cash used in investing activities ($2,236) ($1,403) ($3,639) ($4,374) ($1,812) ($6,186)

Cash flows from financing activities

Proceeds from issue of ordinary shares - - - $8,936 - $8,936
Share issue transaction costs - - - ($392) - ($392)
Distributions paid - - - ($896) - ($896)
Principal paid to lease liabilities ($169) ($149) ($318) ($213) ($189) ($402)
Interest paid on lease liabilities ($16) ($11) ($27) ($20) ($13) ($33)
Cashflows from discontinued operations - ($16) ($16) - ($34) ($34)
Net cash from financing activities ($185) ($176) ($361) $7,415 ($236) $7,179

Net increase/ (decrease) in cash and cash equivalents ($97) ($622) ($719) $5,300 ($1,145) $4,155
Cash and cash equivalents at beginning of the period $6,478 $6,381 $6,478 $2,323 $7,623 $2,323

Cash and cash equivalents at the end of the period $6,381 $5,759 $5,759 $7,623 $6,478 $6,478

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Share Registry
Top holders as of 2 August 2022
Rank Name Units % Units
1 LUJETA PTY LTD <MARGARET A/C> 95,746,043 16.0
2 ARROTEX INVESTMENTS HOLDING 1 PTY LTD 60,000,000 10.1
3 NATIONAL NOMINEES LIMITED 38,742,512 6.5
4 MERSAULT PTY LTD <THE ENGLAND FAMILY S/F A/C> 26,766,667 4.5
5 MR DAVID GERALD MANUEL & MS ANNE ELIZABETH LEARY <MANUEL SUPER FUND A/C> 18,666,667 3.1
6 LYELL PTY LTD <GENESIS SUPER FUND A/C> 17,388,974 2.9
7 BENKI PTY LTD 17,105,748 2.9
8 SANDHURST TRUSTEES LTD <CYAN C3G FUND A/C> 15,761,905 2.6
9 MR JOHN LAGANA 15,621,734 2.6
10 GINGA PTY LTD <THOMAS G KLINGER FAMILY A/C> 14,414,488 2.4
11 MRS PENELOPE KING 13,333,334 2.2
12 SEVENIRON PTY LTD <SEDGWICK SUPER A/C> 12,000,000 2.0
12 MR GRANT POVEY 12,000,000 2.0
14 LYELL PTY LTD <HAYMAN A/C> 10,666,666 1.8
15 CANCELER PTY LTD <CLARENCE SUPER FUND A/C> 9,900,000 1.7
16 MR DAVID GERALD MANUEL & MS ANNE ELIZABETH LEARY <MANUEL FAMILY A/C> 8,000,000 1.3
17 MR TYSON WELLMAN 8,000,000 1.3
17 GABODI PTY LIMITED <GABODI PTY LTD S/F A/C> 7,197,334 1.2
19 LINK ENTERPRISES (INTERNATIONAL) PTY LTD 7,009,480 1.2
20 GC RETIREMENT FUND PTY LTD <GC RETIREMENT FUND A/C> 6,666,667 1.1
Total Top 20 holders of FULLY PAID ORDINARY 414,988,219 69.4%
Total issued capital of FULLY PAID ORDINARY 596,756,789 100.00%

26
Corum Group Limited
Contact:

[email protected]