2020 Annual Meeting of Shareholders and Business Update

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Annual Shareholders Meeting,
Friday, 11am 24th July 2020
Art Gallery, Dunedin.








Good morning, and welcome everyone to the Blis Technologies Limited Annual
Shareholder Meeting for 2020. My name is Tony Offen, and I am Chair of the
Board for Blis Technologies.


On behalf of your directors, our Chief Executive, Mr. Brian Watson and all the Blis
team it is my pleasure to welcome you all here today in person and for the first time
to those of you attending online.


This is the first time we have provided an online option for shareholders, so I will
take a little time now to cover how the online meeting platform will be integrated
into today’s meeting.

When it comes to voting: For our shareholders in attendance here you may vote as
usual on the voting card provided to you at the registration desk when you arrived.
For shareholders online you will be able to cast your vote online by pressing the
“Get a voting card” button and validating yourself using your shareholder or proxy
number. Please note that only shareholders, proxy holders or shareholder
company representatives may vote.
Slide 3: Chair – Voting and Asking Questions
Slide 1: Chair – ASM welcome
Slide 2: Chair – Chairperson’s address

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Please refer to the virtual meeting online portal guide or contact the team at Link
on 0800 200 220 if you require any assistance.

Shareholders online will also be able to ask questions by clicking the “Ask a
Question” button. I encourage shareholders who have questions relating to the
business of the meeting, to send their questions through as soon as possible.

I am pleased to say that the meeting has been properly called and there is a
quorum present.


We will be using some slides during the meeting. For those of you online you will
be able to see these and follow along. They have also been posted to the NZX at
the start of this meeting and are available on Blis’ website

As you know, health and safety is a priority for Blis and in the unlikely event of an
emergency during the meeting we want to ensure everyone’s safety. If the building
needs to be evacuated for any reason, please evacuate via the fire exit doorways
indicated and follow the signs to main staircase to the front entrance and nearest
assembly point.





The agenda for this morning will include an overview from myself of the company’s
performance for the year to 31 March 2020. Brian Watson, our CEO, will then
provide you with a deeper review of the results, progress against our objectives
and what shareholders should expect to see over the remainder of the current
financial year.

There will then be an opportunity for shareholders to ask questions. We will first
take questions from the those in attendance here today and then any questions
posted online that have not already been covered by previous answers.

Following this we will move to the formal business of the meeting. At that point I will
outline the process for the discussion and voting on the resolutions as set out in
the agenda.

Slide 4: Chair - Agenda

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And of course, at the meeting’s conclusion, for those of you here with us you are
invited to join directors and the Blis team for light refreshments and further
discussions.





As we now move to an overview of the results which include some forward-looking
comments, it is important to highlight the disclaimer included in the presentation
and which is now being displayed.





Before reviewing the company’s performance, I would first like to introduce your
Board. Their profiles are available online as part of the governance page on the
company’s website and are also included within the annual report. You will have
received the Annual Report for the year ended 31 March 2020, either by post or
electronically, depending on your choice, and there are additional hard copies
available in the room here today if you would like one.


Geoffrey Plunket. Geoff joined the board early in 2018 and is Chair of the Audit
and Risk Committee. Geoff brings a strong commercial focus and experience in
leading a large organisation with expertise in logistics, supply chain, human
resource, health & safety and risk management. Geoff had a long career with Port
Otago Limited, including as CFO culminating in his appointment as CEO from 2004
until his retirement in 2017.


Dr Barry Richardson. Barry joined the board in 2018 and sits on Audit and Risk
Committee. Barry has a science background and brings both Blis specific and
international biotechnology and nutritional dairy industry experience to the board.
Barry was formerly CEO of Blis between 2007 – 2016 leading the company’s
transition from predominately research based to being commercially focused.

Slide 6: Chair – Board Introductions
Slide 5: Chair – Disclaimer

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Dr Alison Stewart. Alison joined the board in September 2018 and is Chair of the
Remuneration Committee and lead member on the Blis Scientific Advisory Group.
Alison brings to the board substantial experience as an innovation and research
leader who has a clear understanding of the drivers for successfully
commercialising biotechnology lead research internationally. Alison is currently
CEO of the Foundation for Arable Research.

Tony Balfour. Tony was invited to join the board in April this year following a
professional search process. Tony brings to the board strong governance
experience following a successful executive career as an international marketing
and brand management leader building consumer goods businesses globally. Tony
has a diverse background of international experience in driving FMCG through
retail channels and e-commerce from the leadership roles he held for Nike Inc,
Icebreaker, Seek.com and Monster Worldwide. Tony holds current directorships
with The Warehouse, Les Mills International and Wayfare Ltd (trading as Real
Journeys). Tony is standing for election today. The board recommends Tony’s
election to you and unanimously supports his election as a director. You will have
the opportunity to hear from Tony a little later.

Graeme Boyd. Graeme joined the board in 2014 and is currently deputy chair.
Graeme sits on the remuneration committee and has also served on the audit &
risk committee. Graeme, who was up for re-election by rotation today, advised
earlier that after two terms he would not be seeking re-election this year. At this
point I would like to acknowledge and convey to Graeme our gratitude for his
contribution. Graeme brought to the board a high level of commercial acumen and
shared strong strategic and international brand management perspectives which
have helped guide the company onto to its current growth path.
Graeme, on behalf of the board I would like to thank you for your full contribution,
for your governance wisdom and for the resolution you showed when it came to
prioritising the importance of brand value. A big thank you from us all and all the
very best.

It is worth noting here that each year as part of the board’s annual review process
the director’s capability mix is assessed against the Company’s future growth plan
requirements. And when the Board’s succession planning anticipates an upcoming
vacancy or if further director capability has been identified, then professional
search services are engaged to assist the Board in identifying suitable candidates
for nomination.

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And in terms of myself, I have been a director and shareholder since 2009 and
chair since August 2017. I am currently on the audit and risk and remuneration
committees and a member of the Scientific Advisory Group. Previously I have
served as deputy chair, chair of audit and risk and also for a short time as an
executive director for the company. I have an accounting, finance and business
investment background and since 2009 through the various Blis roles have gained
a good understanding across all aspects of the Company.












It is my pleasure to present you with an overview of the company’s performance.

Performance Overview.
I am pleased to report that 2020 saw Blis continue to deliver against the objective
of producing sustainable profitable growth.
Our revenues were up 29% for the year, providing a 33% CAGR over the last 5
years and our EBITDA of $2.1m was up 130% on last year.

Through the year we have continued to strengthen our revenue base with solid
growth across our existing markets and consolidation of key new markets for our
BLIS branded product range. This is the second consecutive year that we have
delivered profitable growth, and this has further strengthened the Company’s
resilience and its working capital position.

Your board views maintaining underlying profitable growth as an important
objective. This provides a focus for us on how to effectively continue to deliver
attractive profitable revenue growth when balanced by the investment required to
drive this growth and the value of accelerating our exciting pipeline opportunities.
Slide 7: Chair – Results Overview

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I am pleased to report that during the year, as well as recording a profit, the
Company continued to build strong foundations for future growth; we have
continued to invest in the BLIS Probiotics Brand, we have strengthened our R&D
pipeline while enhancing our IP position and we have delivered both increased and
alternative supply capacity.

It is also pleasing to see the share market acknowledge the company’s improved
performance with the market capitalisation now reaching around $90m, at 8.2cps.
With over 1.1 billion shares on issue the share price is still recorded as cents per
share which can add unnecessary volatility to share price movements. With
underlying profitability now being delivered, consolidating the number of shares on
issue is a capital management option open to us. The timing and scale for that are
still under consideration.

It is also worth highlighting that under our current strategy of fully retaining profits
for reinvestment into growth initiatives and pipeline development that there is no
plan in the near term to declare a dividend.

Notwithstanding the pleasing result, there remains a high level of uncertainty going
forward. As you will be aware the COVID-19 pandemic continues to impact
globally, and we reported at the time of the New Zealand lock down the impact on
the Company. I would like at this point to acknowledge the additional work and
increased flexibility demonstrated by Brian and the full Blis staffing team during this
period, which has served the Company very well. It is clear that the global impacts
of the COVID-19 pandemic are ongoing, and under various stages of control
throughout different parts of the world. Our current view is whilst managing the risk
we do have a real opportunity to strengthen the Company by building an even
stronger brand and accelerating our market presence based on heightened
consumer interest in solutions to maintain health and wellbeing. Brian will cover
this further in is his presentation.

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The Company’s Vision is: “ to deliver health benefits to global consumers by
unlocking the potential of the microbiome”

The company has four strategic priorities: Positioning; Pipeline, Supply Chain and
People and Performance. And we have reported for the year good progress
against all of these.

These priorities recognise the Company’s integrated business model. They focus
us on developing core expertise and knowledge internally as we continue to build a
global leadership position for innovation and commercialisation of BLIS Probiotics.

There remains significant international growth potential for our products and we will
continue to prioritise investment for the future by growing markets with existing
partners, growing the Company’s on-line sales presence, accelerating our pipeline
development and IP positions and by bringing on internal resourcing where
required.

Brian will cover the achievements and progress across these areas in his address
as well as the first quarter results for this year and the outlook for 2021.
On behalf of the board, management and the all of the Blis team I would like to
thank you our shareholders for your continued support and ongoing interest in the
company.
Thank You.
I will now pass over the Brian for his address, after which there will be an
opportunity to ask questions before we then move to the formal part of the meeting.
Brian, over to you.



Slide 8: Chair – Company vision and strategy

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Thank you Tony.
On behalf of management team I would like to welcome the shareholders in the
room here in Dunedin and those online and thank you for your interest and support
of the company. It is my pleasure to and introduce the Blis leadership team.
Detailed profiles of the team are available online on the company’s governance
page and have been included within the annual report.

Richard Wingham is our Chief Financial Officer (CFO)
Richard is responsible for our finance function as well as having oversight for
production and key operational functions within the company.
Dr John Hale is our Chief Technology Officer (CTO)
John leads our scientific services function which covers both research and
development as well as the comprehensive lab services.
Our Chief Marketing Officer (CMO) is Julie Curphey
Julie heads up our marketing function which includes marketing strategy and
promotional planning.Julie also has reponsibility for the new product development
function within the business.
Frank Spiewack is our Commercial Director
Frank is the newest member of the leadership team having joined Blis in November
2019. Frank leads our new market development and supports our existing
partnerships with distributors and key customers.
As for myself, my focus continues to be delivering on our growth and profitability
objectives while ensuring a healthy pipeline of new innovation to drive our long
term growth aspirations.

Slide 9 - CEO Address
d hh ld
Slide 10: CEO – Leadership team introduction

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As Tony highlighted 2020 financial year saw Blis continue to deliver on its objective
of sustainable profitable growth.
We have continued to strengthen our revenue base delivering revenue of $10.6 m
which was 29% growth over the previous year.
On the back of this revenue result we have been able to continue solid investment
into brand and new market development along with investment in our R & D
pipeline yet maintain our profitability objective and deliver an EBITDA of $2.1 m, up
130% on the previous year and a Profit of $1.6 m.
Other financial highlights included an increase in working capital to $4.1 m, up $1.8
m from the prior year, providing us a solid base to continue investment in line with
our growth plans.
These results have further strengthened our balance sheet and cash flow providing
financial resilience leading into the current COVID pandemic we face and the
econiomic uncertainties this presents.





During FY20 we delivered on key non financial milestones that complement our
financial resilience and build a strong company for future growth.
We have broadened our revenue streams by continuing to grow our Amazon sales
and launching UltraBLIS. I will talk more about UltraBLIS later but we see this as
an important new product within our portfolio.
We have continued to strengthen our Regulatory base – of note are the Canada
approvals that will enable effective claims in that market when we launch later this
financial year.
Supply chain capacity has been increased through the successful transfer of our
technology to establish a second supplier of our probiotic ingredient offshore.
Slide 11: CEO – Financial summary
Slide 12: CEO – Operational summary

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Key Senior management appointsments in the year included the commercial
director role and senior appointments within our R & D function aimed at
accelerating the output of this probiotic centre of excelllence.
I am particularly proud of the overall staff response to the COVID-19 pandemic. We
effectively navigated the changed working conditions of Alert level 4 as an
essential business supplying the pharmacy channel. This included increasing
finished product output to meet Pharmacy and online demand as well as delivering
on branded ingredient orders during challenging logistics conditions.
Along with this the team implemented a free product offer to frontline pharmacy
and GP medical staff which was hugely appreciated with over 400 individuals
taking up this offer.







We have continued to make strong progress across our strategic priorities of
Positioning, Supply chain, Pipeline and People and performance.
Under positiong we are focused on marketing activity ensuring our product offers
have strong value propositions and strengthening the BLIS PROBIOTICS brand.
Our new market opportunities include launching in Canada this finacial year and
building our China Cross Border eCommerce channel revenue. We have been
encouraged by the response to the online launch of UltraBLIS and will move ahead
with a Pharmacy retail launch in NZ as well as further online launches including on
Amazon.
We will also move our skincare R & D programme into a commercialisation phase,
more about this later in my talk.

Our focus on Supply chain is to ensure the right quality and capacity throughout
our entire supply chain. Our alternative ingredient supply will support the market
growth we are seeing offshore and provide further risk mitigation in our supply
chain. Along with this working with finished product contract manufactures we
continue to build further capacity to respond effectively to increased finished goods
demand in our plans .
Slide 13: CEO – Strategic priorities

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We are excited by the progress we are making in a number of R & D priorities, our
skin programme has reached market validation phase and we have initiated a new
programme of research to build on early promissing data related to virus tragets.
Along with this we have made excellent progress in formulation innovation with
promising new opportunities in the dental space. Across these R & D programmes
we have strong new IP opportunities which will further strengthen our intangible
asset base.
Our focus on People and Performance is ongoing and we recognise this is at the
core of our business. We are continuing to build a high-performance culture,
ensuring we have the right internal capability and processes to support our growth
goals.





A strategic priority for the company is to build consumer awareness of the BLIS
PROBIOTICS brand. Through FY20 and ongoing we are investing is this through
multiple channels including sponsorship, advertising and online activity both in NZ
and globally. We have a strong and attractive brand along with a product range
that is innovative and credible. To date it is acknowledged we have been
underinvesting in marketing activity, however in line with our revenue growth we
will continue to build this investment globally.






Looking at trading revenue in more detail we saw strong results across all regions.
In North America we continue to grow our BLIS branded finished product sales
within the Amazon US platform. Of the 2020 growth in North America Amazon
BLIS finished goods sales represented around on third of this growth. With
changing consumer behaviour toward online purchase and strong interest in
immunity boosting products we see this as a key contributor to ongoing growth.
Slide 15: CEO – Regional performance North
America
Slide 14: CEO – Building the BLIS PROBIOTICS
brand

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Along with this the region has also seen strong growth in our branded ingredient
sales . The majority of our ingredient customers in the US focus on online sales so
have not been impacted by changing customer behaviour and in several cases
have seen a positive upswing in demand.

For FY21 our focus will be:
Continuing to grow Amazon sales including the launch of UltraBlis on this platform.
Canada launch of BLIS finished products targeting the Canadian winter.




Europe/ Middle East
Steady year on year growth in this important market continues to deliver a solid
return. Our distribution partner in Europe and the Middle East, Bluestone Pharma
has been successfully implementing a strategy focused on launching consistent
value propositions to health professionals ensuring a broad acceptance and
recognition within the medical community.
This is a region that has been hit hard by COVID-19, with regional lockdowns
restricting some of the activity that has driven robust sales in the past such as
sales activity directly with health professionals and the pharmacy channel .

Focus
With our distribution partner and the customer base we will be looking at online
promotional programmes to continue engagement with health professionals such
as webinars, as well as further developing online sales in the region.




Slide 16: CEO – Regional performance Europe
Middle East

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In Asia Pacific we reported an over all 8% decline in revenue, however if you
exclude the Australia revenue the region grew by 31%. The Australia market prior
year comparison is skewed by a one off pipeline fill at the end of FY19 to support
the Australian Pharmacy launch.
In our home market, NZ, revenues grew by 39% and ThroatGuard Pro remains the
highest selling Throat lozenge in Pharmacy
Forward focus:
As a consequnce of changed consumer behaviour and an anticipated moderate
cough and cold season in both NZ and Australia we will continue our build of the
online sales channel in this region.
Over the year we will also ramp up our activity in the China Cross-border e
commerce channel having recently hired a dedicated staff member to support this
with chinese laungauge skills, but also partnering with a specialist agency
anddistribution partner for this channel. Next phaes of investment include working
towards establishing our own Alibaba TMall flagship store to drive B2C sales within
this channel.
UltraBLIS will represent a key new asset for this region with a NZ Pharmacy retail
launch planned and inclusion as a key part of our CBEC portfolio.





Like most businesses the COVID pandemic has impacted many aspects of our
business, however I want to focus on 3 relevant impacts that represent both
upsides and challenges for us.

Shifting preference to online sales
Consumer focus on Health and wellbeing
Supply chain and logistics challenges
Slide 18: COVID impacts
Slide 17: CEO – Regional performance Asia Pacific

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Retail foot traffic has been impacted globally whereas there has been a clear swing
towards the online channel.

In a recent Euromonitor report on consumer trends they highlighted that many of
the habits developed during the crisis such as online shopping and working from
home will continue post lockdowns.

Over several years we have been building our capability and presence within the
online sales channel and are well placed to respond to this change. We have a
solid base of online sales already and will focus on further building this. China
Cross Border eCommerce, the Canada launch and our skin care commercialisation
plans are well aligned to take advantage of this trend.

These opportunities will be important to offset some of the pressure on pharmacy
retail sales as the impacts of global lockdowns and changes in consumer
behaviour continue to flow through.







The COVID pandemic has clearly driven interest in general wellbeing but in
particular driven demand for immune boosting solutions.
Google data has shown a significant lift in online searches for immunity solutions
as a result of the COVID-19 outbreak. We have a product portfolio that is well
positioned to provide immune support and the launch of UltraBLIS further
strengthens our position related to this health need.

Longer term we will continue to build our presence in the immunity space taking
advantage of a strong position we have related to this health target.


Slide 20: CEO – Consumer focus on health and
wellbeing
Slide 19: CEO – Online channel importance

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Early in the COVID-19 outbreak we encountered challenges across our supply
chain. Not only did we see lifts in demand for both our Branded Finished products
and Branded ingredients putting pressure on our capacity to meet this demand but
also the normal supply channels came under pressure.
We are pleased that we managed to meet this demand through a lot of hard work
from the team but in some cases, there have been delays in order fulfillment
outside of our control.

We have a high value product that relies on air freight to supply global markets,
with the reduced passenger airlines scheduling the freight capacity they provided
was also reduced. This has impacted costs of airfreight but also restricted
availability of established supply routes. Over time these pressures have eased
however logistics management will need to continue to be actively managed.







Key new market initiatives this financial year are the planned launch in Canada and
our next phase of CBEC sales development.

In Canada we have attractive regulatory approvals that allow significant health
claims for our product range. Over the last year or so we have worked with NZTE
on an extensive market validation program that has provided insight and
confidence in the market opportunity.
Prior to lock down we were fortunate to have several of the team travel to Canada
and meet with our preferred partners to support our launch as well as presenting
our products to the trade with positive engagement.

From this point forward we are finalizing the last elements of the launch plan and
are targeting a launch in line with the Northern hemisphere winter.

The other key new market initiative in this financial year will be the significant build
of activity to support our China Cross Border eCommerce (CBEC) channel
opportunity. This channel allows international brands to target Chinese consumers,
supply product via free trade zones and the Daigou, also known as the reseller
Slide 21: CEO – Supply chain challenges
Slide 22: CEO – New Market entry

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market. To date we have been building an early presence for the brand supporting
early Daigou sales and developing a social media presence for the portfolio.
Key new investment includes the hire of a dedicated resource with Chinese
language skills internally to support this channel and we are late stage negotiations
with an agency and logistics partner to support our activity and ultimately the
launch of a Alibaba TMall flagship store.









During the 2020 financial year we delivered significant milestones out of our
scientific services function.
In the regulatory area we have achieved favorable approvals in both USA and
Canada. Along with this we have made key submissions in Japan and India
regulatory authorities and are awaiting outcomes which will provide new business
opportunities.
Our ongoing and increased investment in R & D is delivering positive output.
Highlights include the launch of UltraBLIS. Development of a skincare prototype
which has tested positively in market research and exciting new dental health
formulations which we believe will be well received by both everyday consumers
and dental health professionals in the future.
From this R & D output we have enhanced our IP portfolio.




This slide highlights our health target priorities and the ongoing R & D priorities into
the future.
The promising new priority we have established for the team is a programme of
work looking at the anti viral activity of our probiotic strain library. This research will
further validate early experimental data .
Slide 23: CEO – Scientific services
Slide 24: CEO – Ongoing R & D priorities

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In the areas where we already have a commercial presence – ENT, Immunity and
Dental health we see the opportunity to continue to innovate with formats and
formulations but also to build the evidence base supporting the benfits of our
product range.
In the next couple of slides I will cover skincare in more detail as this represents a
programme of work that is moving into a commercialisation phase.







Skincare respresents an attractive Market for Blis. Not only is it a huge market, but
we see that the cosmetic market is one that is extremely open to new innovation.
Our R & D programme has delivered brekthrough technology to unlock the
probiotic potential in skincare.
We have developed a skincare solution that combines and unique patented
probiotic strain with an innovative formulation.
The team have developed leading technology to overcome formulation challenges
developing a “live probiotic serum for skin care”
To inform our late stage commercialisation planning we have completed extensive
market research on the product concept including consumer usgae in both NZ and
USA and we have recently hired a dedicated Brand manager to develop the go to
market plan and drive early stage implementation of this plan.



This slide highlights some of the exciting results from this consumer research
which included one month use of the product prototype.
The concept was well recived by research particpants and was viewed as unique,
credible, relevant and exciting.
Some of the key cosmetic parameters tested in the research included skin quality
measures such as hydratiion, glow, clarity and overall health.
We look forward to sharing more details of our launch in the future.
Slide 25: CEO – Breakthrough technology in
skincare
Slide 26: CEO – Consumer validation

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Under our strategic priority of delivering a high performance culture. We will
continue to focus on building the right internal capability to support the growth
aspirations of the company. Key functions we will continue to invest in include:
e Commerce
New Product Development
Brand management
Research & Development
Commercial and sales support
Production.




As already discussed the COVID pandemic represents both upside and downside
for us as a business.
Because of the consumer interest in immunity we have the opportunity to continue
to strengthen the BLIS probiotics brand. We will also continue to build our online
presence to align with changes in consumer behaviour and offset the likely ongoing
impact on retail foot traffic globally.
Revenue growth opportunities for us include online sales channels in general –
with Amazon and CBEC as critical, but also the new launch in Canada which will
include the online channel.
At the same time we will continue to invest in our R & D pipeline moving our first
skincare product to commercialisation and accelerating our dental format
innovation and the virus research programmes.



Slide 28: CEO – Outlook
Slide 27: CEO – People and performance

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We are pleased to share the 2021 financial year quarter one unaudited results.
Total revenue for the quarter was $2.9m up compared with $2.7m in the same
quarter last year. EBITDA for the quarter was $0.4 m.

As presented we see both upsides and risks in the current COVID-19 environment.
However on balance looking at our first quarter performance and reviewing the
market conditions globally we are forecasting continued revenue growth.
Moving through the year we will continue to invest in both new market opportunities
but also our R & D pipeline to ensure this growth is sustainable into the future. In
line with this investment our full year guidance is to deliver sustained profitable
growth and an EBITDA similar to FY20.
Thank you for your interest and I look welcome any questions you may have.

Slide 29: CEO – Outlook continued

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Thank you, Brian.

We now have an opportunity to take questions on the company’s financial
statements and reports for the year ended 31 March 2020, and the presentations
you have heard from Brian and myself.

For those of you here in person, before asking your question, could you please
state your name and if you are a shareholder, proxy holder or shareholder
representative. Shareholders participating online please select the “Ask a
Question” button and select the relevant heading, be it for the Chair/CEO
presentation or one of the 3 formal resolutions.

Thank you, ladies and gentlemen for your questions.

Formal Business of Meeting
I now move to the formal part of the meeting, the resolutions.

All items of business are ordinary resolutions and are required to be passed by a
simple majority – being more than 50% – of the eligible votes cast.

The resolutions that we will be voting on today are as follows:
Resolution 1: That Mr. Antony Balfour be elected as a director of the Company.
Resolution 2: That pursuant to NZX Listing Rule 2.11.1, the maximum aggregate
amount of remuneration payable by the Company to Directors be increased from
$265,000 per annum to $309,000 per annum.
Resolution 3: That the Directors be authorised to fix the remuneration of the
auditors for the ensuing year.

As stated in the Voting/Proxy Form, all voting at today’s meeting will be by way of
poll and, accordingly, in my capacity as Chair I require that a poll be held for each
of the resolutions.
Slide 20: Questions

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Shareholders on Link’s virtual meeting platform will be able to cast their vote using
the electronic voting card received when online registration is validated – voting will
be open until the close of the meeting. Please refer to the virtual meeting portal
guide or use the helpline 0800 200 220.

To vote, you will need to click “Get Voting Card” within the online meeting platform.
You will be asked to enter your Shareholder or Proxy Number to validate. Please
then mark your voting card in the way you wish to vote by clicking “FOR”,
“AGAINST” or "ABSTAIN" on the voting card. Once you have made your selection
please click “Submit Vote” on the bottom of the card to lodge your vote. Voting will
remain open until five minutes after the conclusion of the meeting and the results of
the vote will be announced via a market announcement to NZX.


Shareholders may ask questions after each formal item has been put forward to
the meeting. Questions raised by those in attendance will be answered first before
moving to any questions that have been submitted online.
Your Board supports each of the resolutions and intends to vote undirected proxies
in favour of all resolutions.
I will now introduce each of the resolutions in turn for discussion.

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Director Election Resolution

Ordinary Resolution 1 proposes to consider, and if thought fit, pass an ordinary
resolution appointing Mr Tony Balfour as a director.

I now move the ordinary resolution “that Mr Antony (Tony) Balfour, be elected
as a director of the company”.

The Board has determined Tony is standing as an independent director.

The Board recommends Tony to you as a director of Blis Technologies Limited and
unanimously supports his re-election.

I now invite Tony to address the meeting.
Is there any discussion on this resolution from the floor?
Is there any discussion on this resolution from shareholders online?
There appears to be no further discussion.

Please mark your voting cards in the way you wish to vote by ticking “FOR”,
“AGAINST” or "ABSTAIN" in the appropriate place on the voting card.

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Ordinary Resolution 2 proposes to consider, and if thought fit, pass an ordinary
resolution approving the director remuneration pool:

I now move, as an ordinary resolution "That pursuant to NZX Listing Rule
2.11.1, the maximum aggregate amount of remuneration payable by the
Company to Directors be increased from $265,000 per annum to $309,000 per
annum."

Is there any discussion on this resolution from the floor?

Is there any discussion on this resolution from shareholders online?

There appears to be no further discussion.

Please mark your voting cards in the way you wish to vote by ticking “FOR”,
“AGAINST” or "ABSTAIN" in the appropriate place on the voting card.


Ordinary Resolution 3 proposes: To record that Deloitte are reappointed as
auditors of the Company in accordance with section 207T of the Companies Act
1993 and if thought fit, to pass the ordinary resolution fixing their remuneration:
I now move as an ordinary resolution “That the Directors be authorised to fix the
remuneration of the auditors for the ensuing year.”

Is there any discussion on this resolution from the floor?
Is there any discussion on this resolution from shareholders online?
There appears to be no further discussion.
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24
Collecting of voting cards.
Thank you, we will now take a short moment while our registry, Link Market Services
will now move through the room to collect your voting cards. Shareholders attending
online may now use this time to submit your electronic voting card or to submit any
general business questions you may have.

Other Business
That brings us to any other business.
Is there any other business a shareholder from the floor wishes raise?
Is there any other business a shareholder online wishes raise?

Close
That brings us to the end of the meeting, as mentioned earlier, for those of you here, you
are all invited to join us for further discussion and questions over some light
refreshments.

Thank you all, I now declare the meeting closed.

---

ANNUAL
SHAREHOLDER
MEETING
24 July 2020

Anthony (Tony) Offen
Chair, Independent non-executive director
Chairperson’s
Address.

Voting and Asking Questions.
The voting boxQuestion box

Meeting
Agenda.
Business of the Meeting
Chairperson’s Address
• Tony Offen
Chief Executive Officer’s Address
• Brian Watson
Ordinary Resolutions
• Election of Tony Balfour as a director.
•
Dir
ector remuneration
•
R
e-appointment of Deloitte as Auditor
Other Business

Information
The information in this presentation is an overview and
does not contain all information necessary to make
an investment decision. It is intended to constitute
a summary of certain information relating to the
performance of Blis Technologies Limited (“Company”
or “Blis”). The information in this presentation is of a
general nature and does not purport to be complete.
This presentation should be read in conjunction with the
Company’s other periodic and continuous disclosure
announcements, which are available at nzx.com.
Not financial product advice
This presentation is for information purposes only and is
not financial or investment advice or a recommendation
to acquire Blis securities, and has been prepared without
taking into account the objectives, financial situation
or needs of individuals. The Company, its directors and
employees do not give or make any recommendation or
opinion in relation to acquiring or disposing of shares.
In making an investment decision, investors must rely
on their own examination of the Company, including the
merits and risks involved. Investors should consult with
their own legal, tax, business and/or financial advisors in
connection with any acquisition of securities.
Future performance
This presentation may contain certain ‘forward-looking
statements’, for example statements concerning the
development and commercialisation of new products,
regulatory approvals, customer adoption and results of
future clinical studies. Forward-looking statements can
generally be identified by the use of forward-looking
words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘could’,
‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’,
‘estimate’, ‘target’, ‘outlook’, ‘guidance’ and other similar
expressions. The forward-looking statements contained
in this presentation are not guarantees or predictions of
future performance and involve known and unknown
risks and uncertainties and other factors, many of
which are beyond the control of the Company and may
involve significant elements of subjective judgement
and assumptions as to future events which may or may
not be correct. There can be no assurance that actual
outcomes will not materially differ from these forward-
looking statements. A number of important factors could
cause actual results or performance to differ materially
from the forward-looking statements. The forward-
looking statements are based on information available
to the Company as at the date of this presentation.
Except as required by law or regulation (including the
NZX Main Board Listing Rules), the Company undertakes
no obligation to provide any additional or updated
information whether as a result of new information, future
events or results or otherwise.
No representation
This presentation may contain information from
third-parties believed to be reliable, however, no
representations or warranties are made as to the accuracy
or completeness of such information.
Disclaimer.

Board of
Directors.
Graeme Boyd
Deputy Chair, Independent
non-executive director
Geoffrey Plunket
Independent non-executive director
Chair of Audit and Risk Committee
Anthony (Tony) Offen
Chair, Independent
non-executive director
Dr Alison Stewart
Independent non-executive director
Chair of Remuneration Committee
Antony (Tony) Balfour
Independent
non-executive director
Dr Barry Richardson
Independent non-executive director
Member of Audit Committee

5 Year Growth Trend
FY16
NZ$ Millions
12
10
8
6
4
2
0
F Y17F Y18F Y19FY20
$
5.6m
$
6.5m
$
5.3m
$
8.2m
$
10.6m
5 Year CAGR +33%
Revenue
FY16
NZ$ Millions
F Y17FY18F Y19FY20
EBITDA
$
-0.3m
$
-0.4m
$
0.6m
$
0.9m
$
2.1m
FY16
NZ$ Millions
F Y17FY18F Y19FY20
Net Profit
$-
1.0m
$-
0.02m
$
0.4m
$
1.6m
$
-0.8m
Results FY 20.

Strategy.
Company vision
Delivering health benefits to global consumers
by unlocking the potential of the microbiome.
PEOPLE
AND
PERFORMANCE
Build internal
capability and
a high-performance
cultur
e
PIPELINE
Innovative R & D output
to underpin future value
and growth
SUPPLY
CHAIN
Ensure quality, capacity
and IP protection within
our supply chain
POSITIONING
Deliver strong value
propositions and
strengthen the BLIS®
probiotics brand
Our strategic
priorities
Value proposition
Blis Technologies is a leader in the manufacture of advanced
probiotic strains that go beyond the gut. We combine innovation
with a strong evidence base and the highest quality controls to
deliver probiotic solutions for specific health targets.

Brian Watson
Chief Executive Officer (CEO)
CEO
Address.

The BLIS
Leadership Team.
Brian Watson
Chief Executive Officer (CEO)
Richard Wingham
Chief Financial Officer (CFO)
Julie Curphey
Chief Marketing Officer (CMO)
Dr John Hale
Chief Technology Officer (CTO)
Frank Spiewack
Commercial Director

up 320
%
Reported profit
for the year
$
1.6m
EBITDA
$
2.1m
up 13 0
%
Revenue
$
10.6m
up 29
%
Working capital
at year end
$
4.1m
up
$
1.8m
FY20 Financial Summary.
FY19 FY20 Change Change
($000) ($000) ($000) %
Revenue 8,239 10,642 2,402 +29%
Net Surplus before interest expense, tax,
depreciation and amortization (EBITDA)
922 2,119 1,197 +130%
Ne
t Surplus
381

1,602

1,221

+320%

Validation of
alternative
second supplier
of probiotics
ingredient
Key regulatory approvals
BLIS M18™ US GRAS
No Objection status
BLIS M18™ Health
Canada approval
BLIS K12™ Health
Canada expanded
approval
Covid-19
Response
Find out more at
Covid19.govt.nz
Be kind. Check-in on the
elderly or vulnerable.
Make a difference by:
• checking-in on any elderly or vulnerable people you know
• dropping supplies to those at home sick.
• Free product provided
to Pharmacy and GP
frontline staff
•

Essential Business
supplying the
Pharmacy channel
•

Incr
eased production
to meet demand
New senior management
appointments
Commercial
Director
Science Manager
– Research
Senior Science
Manager
- Development
FY20 Operational Summary.
Continued strong sales
growth on the Amazon US
online platform
Launch of UltraBLIS™

Strategic
priorities.
PEOPLE
AND
PERFORMANCE
PIPELINE
SUPPLY
CHAIN
POSITIONING
Ongoing priorities:
Positioning
• New markets – Canada, CBEC
• UltraBLIS next phase launch activity
•

C
ontinue to expand online presence
•
BLIS Q24 skincare
Supply chain
• Alternative offshore ingredient supply
• Finished product capacity expansion
Pipeline
• Dental innovation
•
V
irus research
People and performance
• Meeting the needs of a growing business

Building the BLIS
PROBIOTICS brand.

FY20 Regional
Sales Performance.
$
3.0m
+14 2
%

North
America
• Strong growth of BLIS branded ingredient sales
to North America – Customer base with an online
presence performing well
•
Continued t
o expand the customer base through
new customer launches
•
BLIS finished g
oods sales on Amazon platform
delivered five-fold sales growth in FY20 which was
approximately one third of overall regional revenue
growth
Outlook
• Ongoing strength in online sales
•
Canada launch during FY21

• Steady FY20 growth in new and existing
markets
Outlook
• COVID restrictions have impacted Pharmacy
channel and health professional selling
•
T
ogether with our distributor we are
supporting greater online activity
FY20 Regional
Sales Performance.
$
4.0m
+33
%

Europe/
Middle East

• Excluding Australia, revenue up 31%
•
Prior y
ear comparison skewed by one-off pipeline fill to
support the Australia launch at end of FY19.
•
Jap
an continues to deliver strong sales performance
•
NZ sales + 35% - No1 selling thr
oat lozenge in pharmacy*
Outlook
• Reduced foot traffic in Pharmacies in both Australia and
New Zealand
•

Continue t
o offset this through online sales focus and
building on immunity awareness
•
Ne
xt phase of CBEC activity during FY21
FY20 Regional
Sales Performance.
$
3.7m
-8
%

Asia
Pacific
* ThroatGuard Pro – IRI sales data

COVID-19 WORKPLACE HEALTH & SAFETY
ESSENTIAL PRODUCTS
TO HELP YOU RESTART YOUR BUSINESS
Key COVID-19
Impacts.
• Increased importance of online sales channel
•
Consumer f
ocus on health and wellbeing including immunity solutions
•

Supply chain challeng
es

Online Sales Channel
Importance.

• The COVID pandemic
has clearly had a global
impact on retail foot traffic
including the pharmacy
channel
•

Off
setting this there has
been a swing towards
purchasing online
•
Bo
th our finished goods and
branded ingredient sales
have traditionally been
strong online
Existing market capability
• BLIS online web sales
•
Amaz
on USA platform
•

S
trong customer base in USA with a primary focus of
online sales
Future investment
• Build on existing online strength
•
China Cr
oss Border eCommerce
•
Canada bo
th eCommerce and retail launch
•

Online as a k
ey channel for skincare
Habits developed
during the crisis
- including online
shopping, remote learning,
streaming entertainment,
working from home - will
likely continue to take place
at higher rates post COVID.
Euromonitor - How COVID-19
is shaping global
consumer trends.

New Product Launch:
UltraBLIS™: Probiotic Immune
Support for Optimal Performance
Consumer Focus on
Health and Wellbeing.
Our portfolio of products are well positioned to provide
immune support through periods of high need including:

Winter
T
ravel
Int
ensive sport and exercise
Back t
o school
Busy and s
tressful lifestyles
Consumer interest in immunity products.
2019 saw a strong increase in online
searches for “immunity”, but these
numbers tripled within the first two
months of the COVID-19 outbreak.
1
1. Google trends data

Supply Chain
Challenges.
• Increased freight costs
•
R
estricted airfreight availability causing delays and changes to normal supply routes
•
V
olatile demand requiring flexibility and the need for increased capacity

New Market
Entry FY21.

Canada
• Market validation exercise has provided insight and confidence
•
T
rade presentations and partner engagements made prior to travel restrictions
•

F
uture plans will be implemented by inmarket partners
China Cross Border e-Commerce
• New hire to support market development – gives us internal Chinese language skills
•
Ong
oing brand building activity
•
La
te stage negotiations on an agency and distribution partner to implement next phases

RegionApprovalStatus
USA
• M18 No Objection GRASCompleted
Canada
• K12 Masterfile
•
M18 Mas
terfile
Completed
Completed
Japan
• M18
•
F
ood with Function Claims (FFC)
Submitted
India
• K12 & M18
•
F
ood Safety and Standards Authority of
India (FSSAI)
Submitted
Key Scientific
Services Output.
Regulatory
Research and
Development Highlights
• UltraBLIS launched
•
B
LIS Q24 Skincare prototypes developed
•
N
ew dental prototypes developed
New IP
• Anti viral R&D programme initiated
•
U
nique oral and skin format capability

Health TargetsStage in Commercial Development
Early ResearchDevelopment/ NPDCommercialised
Upper
respiratory,
E NT, I mmunity
Finished product innovation,
Expanding the evidence base
BLIS Range: ThroatGuard, Daily
Defence, DailyDefence Junior,

UltraBLIS., TravelProtect, ElitePro.
BLIS branded ingredient.
Anti Viral
Validating early
experimental data
Dental
Finished product innovation,
Expanding the evidence base
BLIS Range: ToothGuard, ToothGuard
Junior, Fresh Breath Kit.
BLIS branded ingredient.
Skincare
Therapeutic screening
Cosmetic format refinement
Ongoing R & D Priorities.

Breakthrough Technology to Unlock
Probiotic Potential in Skincare.
1. Statista.com
The global skin care products
market size is projected to reach
US$183 billion by 2025
expanding at CAGR of 4.5%
1
Product prototype
market research
completed in
NZ and market
research field work
completed in USA
Hire of a dedicated brand
manager to progress
commercialisation plans
Breakthrough technology
• Combining a unique strain with an innovative formulation
•
P
atented probiotic strain – BLIS Q24®
•
T
argeting the cosmetic market: a live topical probiotic serum for skincare

Before receiving
the product my skin
was dry and rough, it
affected my confidence.
After using for a month
I noticed a healthy natural
glow. I have grown confidence
and I’m ready to attack the
day without letting my
skin get me down.
Market Research Quote
Consumer Validation.

Key consumer research highlights
• The concept was very well received - it was viewed as
unique, credible, relevant and exciting.
•
“Pr
obiotics for the skin make sense”
•
The pr
oduct delivered across several key parameters:
»All day hy
dration
»He
althy glow
»Cle
arer, smoother skin
»Skin tha
t felt and looked healthier

People and
Performance.

Positive staff response to
COVID impacts
• Maintained momentum across business
•
Adap
ted to new working conditions
•

Finished pr
oduct capacity increases
•
Agility t
o navigate impacts on supply chain
and logistics
Meeting the needs of a growing
business – ongoing capability build
• e-commerce
•
Ne
w Product Development
•

China mark
et (Cross border e-commerce)
•
Br
and management
•

R & D
•

Commer
cial/sales
•

Pr
oduction staff increases

Outlook
• COVID impact will continue to be monitored
»Represents both risks and opportunities for the company
•
We have the opportunity to continue to strengthen the BLIS
PROBIOTICS brand through acceleration of our new market
priorities and leveraging the consumer interest in health and
wellbeing
• Our on-line sales presence and capability will be utilised to
respond to changes consumer purchasing behaviour including
decreased foot traffic in Pharmacies.
•
Key growth opportunities for FY21 include online sales platforms
(Amazon and regional alternatives), Cross Border e-Commerce and
Canada
•

K
ey R & D pipeline investment
»Commer
cialisation BLIS Q24 for skincare
»Ne
w dental formats for everyday consumers and dental health
professionals
»Virus r
esearch

Q1 FY21
Update.
Investment in new markets
and R &D pipeline
• Market launch Canada
•
China Cr
oss Border eCommerce (CBEC)
•

Ultr
aBLIS expanded launch – Amazon USA,
NZ Pharmacies, CBEC
•
Skinc
are
•

Virus R & D
Full Year guidance
• Sustained profitable growth,
delivering an EBITDA similar
to FY20
Unaudited results for the quarter ending 30 June 2020 (Q1 FY21).
($2.7m for Q1 FY20)($0.5m for Q1 FY20)
Total revenue for the quarterEBITDA surplus
$
2.9m
$
0.4m

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a shareholder or proxy holder.
Questions.

Attendees Question Process.
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a shareholder or proxy holder.
Resolutions.

Attendees Voting Process.
The voting boxQuestion box

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State your name and whether you are
a shareholder or proxy holder.
That Mr Antony Balfour be elected
as a director of the Company.
Resolution 1.

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a shareholder or proxy holder.
That pursuant to NZX Listing Rule 2.11.1, the maximum aggregate
amount of remuneration payable by the Company to Directors be
increased from $265,000 per annum to $309,000 per annum.
Resolution 2.

That the Directors be authorised to fix the
remuneration of the auditors for the ensuing year.
Resolution 3.
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a shareholder or proxy holder.

General
Business.