Rua Bioscience ASM Presentation and Speeches

Annual Shareholders Meeting
October 2021

Rua Bioscience Limited (Rua) is a New Zealand pharmaceutical company aiming to be
a leading producer of cannabinoid derived medicines. This presentation and the
information contained in or accompanying this presentation are not, and are under no
circumstances to be construed as, an invitation to subscribe for, or an offer of, shares,
securities or financial products to any person, in any country or the basis for a
contract, financial advice, other advice or recommendation to conclude any
transaction for the purchase or sale of any security, loan or other instrument. This
presentation has not been independently verified.Neither Rua nor any of its directors,
officers, shareholders, advisors, agents or employees make any representation or
warranty as to the accuracy or completeness of the information contained in this
presentation and those parties shall have no liability for any statement, opinion,
information or matters arising out of, contained in, or for any omissions from, or failure
to correct or update any information in, this presentation or any other communications
transmitted to you in relation to this presentation.
2

Company
Overview and
Chair’s Address
3

4
Panapa Ehau
Ngāti Uepohatu, Ngāti
Porou
Director, Co-Founder
Manu Caddie
Ngāti Pūkenga, Ngāti Hauā
Kaihautu -Innovation and
Regulation, Co-Founder

Our vision at Rua Bioscience is
simple –to create cannabinoid-
derived medicines that change
people’s lives; from right here in
Te Ta i rāwhiti.

•Createunique,sustainableandprotectedIP,cultivation techniques
•Develop commerciallyviablevarietiesofcultivars
•UseresearchpartnerstodevelopIP
CreatingUniqueProductand
PlantIP
DevelopingNewProductsand
Markets
•Createnew,protectedproduct formulations
•Developnew,attractivemarkets
•Achievesustainablerevenue
OptimisingCultivationand
Processing
•Achieveexcellenceincultivation &processing techniques
•Develop cultivation partnershipstoexpandproduction
•Obtainlicencesandapprovalsforall processes,products, markets
DevelopingourPeople
•Buildacapableandcommittedteam
•CreateemploymentpathwaysforTeTa i rāwhitiresidents
Te Rautaki o Rua
Our Strategy –Focus and Objectives

7
Independent
Chairman
Heamana
WhakatūPū
Wehe Kē
Appointed
August 2019.
Te Paori Ringatohu
Board of Directors
Independent
Director
Ringatohu
WhakatūPū
Pehe Kē
Appointed
May 2019.
Independent
Director
Ringatohu
WhakatūPū
Pehe Kē
Appointed
Nov 2018.
Director
Ringatohu
WhakatūPū
WeheKē
Appointed
December
2019.
Director,
Co-Founder
Kaiwhakaū/
Ringatohu
Ngāti
Uepohatu,
Ngāti Porou
Appointed
October 2017.

8
Māwhiti mai ki ngā Whakatutukitanga
Achievements at a Glance
Successfully
listed on NZX.
Built new
facilities in
Ruatorea and
Tūranga
/Gisborne.
Signed
exclusive New
Zealand
supplier sales
agreement
with Nimbus
Health in
Germany.
Received
commercial
licence to grow
and supply
cannabis-
derived
medicines.
Exported first
sample
medicinal
cannabis
flower to
Germany.

9
Māwhiti mai ki ngā Whakatutukitanga
Achievements at a Glance
Attracted key
staff critical to
the
commercialisat
ion of Rua
operations.
Announced
hyperspectral
imaging
project with
the University
of Waikato.
Developed the
Rua
Sustainability
Framework.
Received
commercial
licence to grow
and supply
cannabis-
derived
medicines.
Received GMP
Certification of
our Gisborne
manufacturing
facility and
first product.

10
Auckland
l20.58% of our
shareholders
lHold 17.37% of
Rua’s shares
Canterbury
l6.48% of our
shareholders
lHold 14.54% of
Rua’s shares
Bay of Plenty
l6.45% of our
shareholders
lHold 23.74% of
Rua’s shares
Te Tairāwhiti
l37.23% of our
Shareholders
lHold 19.47% of
Rua’s shares
Wellington
l8.69% of our
shareholders
lHold 17.51% of
Rua’s shares
Nga Kaipupuri Hea
Our Shareholders
GEOGRAPHICAL SPREAD OF
OUR SHAREHOLDING
AS AT 30 JUNE 2021
As at 30 June 2021:
•2,901 shareholders
•97.59% of our
shareholders reside in
New Zealand
•37.23% reside in Te
Ta i rāwhiti

11
Top 10 Holders
1.Fang Group Investment Ltd
2.Hikurangi Bioactives Ltd Partnership
3.Ta i l o r s p a c e C a p i t a l L t d
4.NZ Depository Nominee Ltd
5.Andrew Charles Williams
6.FNZ Custodians Ltd
7.Ridings Brothers Ltd
8.Custodial Services Ltd
9.Wakaroma A/C
10.Forsyth Barr Custodians Limited
Nga Kaipupuri Hea
Our Shareholders

Chief Executive
Officer’s
Presentation
12

13
Good Manufacturing Practice (GMP) Certification
Globallyrecognisedminimumstandardsforthe
manufactureofmedicines.
Prerequisiteforcommercialproduction.
Keysteponthepathtorevenue.
RuabeganauditinNovember2020
andachieved GMP certification of the Gisborne
Manufacturing site on 28th September 2021.
Hanga Wāriu
Creating Value

Progress on Cultivation Optimization and
Capacity
Well advanced in establishing our
commercial cultivars.
Rua has signed three supply agreements
with grower partners and an R&D supply
agreement.
Tri al st arted w i t h t h e East Co ast Can n ab i s
Company on site in October 2021.
Successful export of the first.
14
Hanga Wāriu
Creating Value

Hanga Wāriu
Creating Value
Research and Development
Rua announced a ground-breaking, two-
year research programme to investigate
the application of hyperspectral
technology to the cultivation and
assessment of medicinal cannabis, paving
the way for Rua to enter New Zealand's
booming agritech sector.
Successful export of the first.
15

16
Ngā Pou Matua
Senior Management
Chief
Executive
Officer
Kaiwhakahāere
Matua
Innovation and
Regulation,
Co-Founder
Kaiwhakaū/
Kaihautu
Ngāti Pūkenga,
Ngāti Hauā
Chief Financial
Officer
Āpiha
Kaiwhakahāere
Pūtea
Ngāti Ruanui
Chief
Commercial
Officer
Āpiha Kaihoko
Matua
Chief
Operations
Officer
Āpiha
Kaitohutohu
Matua
Chief Research
Officer
Āpiha
Kairangahau
Matua

Len Walker
Ng
ā
ti Porou, Aitanga-a-Hauiti, Te Wh
ā
nau-a-Apanui
Kaiwhakah
ā
ere hangahanga
Cultivation Manager
MBA
Len returns home having carved out an impressive
management career in the Dairy industry that takes in Tui
Co-operative Dairy Company, the NZ Dairy Research
Institute, Edendale, Open Country Miraka, and Westland
Milk Product.
17
Ngā Whakaurunga Āmua
Recruiting for the Future

18
New Zealand is growing rapidly off a
small base.
The number of packs of CBD products
supplied in New Zealand in the year to
30 June 2021 was over 31,000.
This compares to just 2,000 in 2018.
CBDPRODUCTSSUPPLIED
PERANNUMTOTHENZ
MARKET
201920202021
6,993
21,964
31,000
Te Matapae o te Mākete o Aotearoa
New Zealand Market Forecast
Source: Ministry of Health, 2021

19
Germany is currently the largest single market
for GMP (pharmaceutical) grade cannabis
globally.
Public health insurance coverage of
prescriptions reached €90M in the first half of
2021.
With over €45M reimbursed in Q2 2021, it was
a record quarter, increasing 2.5% over Q1 2021
and up 13% from Q2 2020.
184,499 cannabis prescriptions were covered
by the public health system in H1 2021
(average of €487 per prescription).
MARKETSHAREOF
CANNABIS DRUGSIN
GERMANY
50%
40%
30%
20%
10%
JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC
Flower
Full Spectrum Extract
Other-Pharmaceuticals
Ngā mea Angitū o te Mākete ki
Tiāmana
German Market Opportunities
Graph Source: Prohibition Partners, 2021
Data Source: German National Association of Statutory Health
Insurance Funds

20
CANNABISLEGALISATIONTOMARCH2021
*Inexceptional circumstances
† Includes countrieswith potential
upcominglegalisationor upcoming
pilot programme
Medical and Recreational adult
uselegalised†
Availableviaimport*
Productionlegalised
Tre at m e n tlegalised
Ngā mea Angitūo te Mākete o te Ao
Global Market Opportunities
Source: The Economist, 2021

21
Ārahitanga Whakahāere
Guidance on Timing
Dec
2023
Late Q1 Early Q2
2022
Q1
2022
New Markets
Expanded export
strategy
First
Export Revenue
Product made
available to German
patients through
Nimbus Health.
Self-Sustaining
Revenue
With
approximately
three products
in the market.
First
Domestic Revenue
Product available
for New Zealand
patients as a
prescription-only
medicine.
End of Cash
Runway
Based on our
predicted cash burn
rate (excluding
revenue).
Q4
2022

Opportunities
•Markets opening around the world
•Growing body of clinical evidence
Challenges
•Decades of stigma
•Meeting Minimum Quality Standards
•Expansion of foreign markets
22
Ngā mea Angitū me ngā Wero
Opportunities and Challenges

Whai Hua mo Apōpō
Towards Sustainability
23
Hamish Harris
Ngāti Porou, Nga Puhi
Plant Health Specialist

24
Whakapā atu ki te Iwi Whānui
Community Engagement

Annual Results
25

26
Māwhiti mai ki ngā Hua Nui
Results at a Glance
Loss after
Ta x
-$4.42M
Funds
Raised
$20M
Other
Income
$451K
Investment
in R&D
$1.9M
Investment
in Property,
Plant and
Equipment
$6.17M
Cash and
Investments
$16.4M

27
Loss after
Ta x
-$4.42M
Māwhiti mai ki ngā Hua Nui
Results at a Glance –Profit and Loss
Lossbefore tax$6.17M
Investment in R&D$1.90M
Other income$451K
Income Tax Credit$1.75M
Loss after tax$4.42M

28
Māwhiti mai ki ngā Hua Nui
Results at a Glance –Balance Sheet
Net Assets
$28.8M
Cash & Investments $16.4M
Investment in property, plant and equipment $6.17M
To t a l a s s e t s $30.8M
To t a l l i a b i l i t i e s $2M
Net assets $28.8M

29
Māwhiti mai ki ngā Hua Nui
Results at a Glance -Cashflow
Net Cash
Inflow
$18.3M
Net cash outflow from operating activities $4.48M
Net cash outflow from investing activities $14.43M
Net cash inflow from financing activities $18.3M

Ngamihi, e noho rā

---

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com



Rua Bioscience Ltd (NZX: RUA)
Annual Shareholder Meeting
12:00pm, 19 October 2021


CHAIRMAN'S COMMENTARY

Welcome to the Annual

Shareholder Meeting of Rua Bioscience. Thank you for joining us. It's a pleasure and a
privilege to be here to deliver an update on our operations over FY 2021 and to provide some insight into what
the future holds for us at Rua Bio.


A Year of Transformation (slide 3)

FY2021 has been a transformational year for Rua Bioscience, set against a challenging backdrop of the industry's
evolving regulatory environment. We have achieved a number of major milestones, such as listing on the NZX,
signing a sales agreement with a distributor in Germany, securing our commercial licence and supplier partners,
developing our people, building facilities, working toward regulatory compliance and developing IP.


Rua's Kaupapa (slides 4-5)

Rua Bioscience was born out of a desire to increase the wellbeing of whānau and the whenua by providing
sustainable, safe, well-paid employment to the people of Te Tairāwhiti, particularly Ruatorea. The company was
founded by Panapa Ehau and Manu Caddie, with the support of the local community, initially as Hikurangi
Enterprises.

Our vision is simple – to create cannabinoid-derived medicines that change people's lives; from right here in Te
Tairāwhiti. We aim to be a leading NZ pharmaceutical company so that we think like a pharmaceutical
company, and we will operate like a pharmaceutical company. This aspiration has a huge impact on the
standards to which we operate and the skill and capability of the people we employ.


Rua's Strategy (slide 6)

Our strategy is based on four key pillars.

Firstly, creating unique product and plant IP:
• We aim to create unique, sustainable and protected IP in plants and cultivation techniques.
• We will differentiate ourselves by developing commercially viable unique cultivars using notable
research partners to develop this IP.

Secondly, taking our IP and developing new products and markets:
• Creating new, protected product formulations.
• Develop new and attractive markets for these products and achieving sustainable revenue to become a
successful and sustainable company.

Thirdly, a focus on optimising cultivation and processing:
• Achieving excellence in cultivation and processing techniques.
• Using a network of capable grower partners to expand our production.
• To deliver this, we need to obtain licences and approvals for all processes, products, markets.

And finally, developing our people:
• Building a capable and committed team, flexible enough to operate on a global stage and across
multiple locations and business relationships.
Chair and CEO Commentary

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com
• And creating employment pathways for Te Tairāwhiti residents so that they can develop skills and
create careers.


Our Board (slide 7)

To oversee this strategy, we have a very capable Board of Directors who possess a wealth of domestic and
international expertise, all of whom are heavily invested in the Rua kaupapa.

Panapa Ehau
was appointed to the Board in October 2017.
As well as co-founding Rua Bioscience, Panapa established New Zealand's first tertiary training course for
cannabis cultivation via the Eastern Institute of Technology. From Ruatorea, with a degree in management,
Panapa is a co-founder of numerous social enterprises and holds governance roles across numerous for-profit
and charitable organisations. Panapa lives in Te Tairāwhiti and has a focus on developing economic
opportunities alongside his people.

Brett Gamble
was appointed in December 2019.
Brett is an investment and finance specialist with global connectivity, having lived and worked in the USA, UK,
Australia, and New Zealand. He is currently CEO of Tailorspace and Executive Director of Alvarium Investments
(NZ). Brett is also a current Director of Alvarium Investments Australia, Mike Greer Homes, Mojo Coffee and
Mobile Medical Technologies and was previously Chair of Enable Networks and a Director of Southbase
Construction. Brett also Chairs a South Island-based cancer charity Chalky Carr Trust.

Anna Stove
was appointed in May 2019.
Anna has a successful 25+ year track record leading and driving transformational change within the
pharmaceutical sector. She has held various senior executive roles within NZ, the Asia Pacific and Europe, most
recently as NZ General Manager for GlaxoSmithKline. She has a strong passion for improving the quality of life
for all and to improve the outcome of businesses through driving strategic growth and best practice governance.
Anna is a Director of Pacific Edge Ltd and Deputy Chair of TAB New Zealand. Her previous governance roles
include Chair of Global Women NZ, Director of Medicines New Zealand, Vice-Chair of Pukekohe Park and Vice-
Chair of Shooting Star Hospice built in London, UK.

Martin Smith
was appointed to the Board in November 2018, retires at the AGM and is seeking reappointment.


Building Solid Foundations for Growth (slides 8-9)

I would summarise FY21 as the year Rua has built the solid foundations for growth – developing the
partnerships, places, processes, and people we need to create a sustainable medicinal cannabis business model.
Our commitment to creating shareholder value has seen us working on two fronts - preparing to enter local and
global medicinal cannabis markets in 2022 and developing long-term opportunities across the medicinal
cannabis value chain.

× Arguably our largest milestone to date was achieved in October 2020, when the company was listed on the
NZX. We became
the only NZX-listed company headquartered in Te Tairāwhiti
and the first founded by a
Māori community. The IPO was oversubscribed and raised $20m of new capital to fund the company's next
stage of development, support the achievement of sustainable revenue and accelerate growth.

× We
commissioned our cultivation centre in Ruatorea
as well as our manufacturing and processing facility
here in Gisborne.

× Rua was one of the first medicinal cannabis companies in New Zealand to be
granted a

commercial licence
by the Ministry of Health to grow and supply cannabis-derived medicines. This was a
key step in fully operationalising our cultivation and manufacturing facilities in Ruatorea and Gisborne.

× Rua became the exclusive New Zealand supplier of pharmaceutical-grade medicinal cannabis products
German pharmaceutical wholesaler
Nimbus Health,
and
we successfully exported our first medicinal cannabis flower sample to Germany. We were effectively testing
and proving our supply chain to that market.

× We have
attracted key staff
critical to the commercialisation and development of Rua operations, and
recently joining us have been Andi Grant, Dawn Smith & Len Walker. Rob will cover the capabilities and
experience that they bring us in his address.

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com

× We announced our potentially ground-breaking
Hyperspectral Imaging project
with the University of
Waikato, targeting entry into the $2.5b Global cannabis testing industry. This could be a significant
opportunity for Rua as we develop this leading-edge technology.

× We have developed and begun the implementation of our
Rua Sustainability Framework
. The pathway to
ensure that we meet and exceed all requirements on our sustainability roadmap that we have produced.

× Of course, our recent and most significant milestone was the
achievement of GMP certification
of our
Manufacturing facility in Gisborne on 28 September 2021 and the announcement of our first product that we
will take to market.

× The team also took out an award at the
Gisborne Westpac Business Awards
for Manufacturing and
Technology Excellence, recognising how far we have come as a business.


Our Shareholders and our Connection to Place (slide 10)

We are on a journey to create a successful and sustainable pharmaceutical company based here in Te
Tairāwhiti, and it's important to recognise those who have joined us on that journey and the investment they
have made. So I wanted to give you a brief summary of our shareholder base and those who are supporting the
Rua kaupapa.

Firstly, we have 2,901 shareholders in total. Not surprisingly, most are New Zealand-based, with 97.59% of our
shareholders residing in New Zealand.
The interesting thing is the concentration of shareholders in this region, Te Tairāwhiti, where 37.23% of our
shareholders by number reside and account for almost 20% of our shareholding by value.
We have a deep connection to this region and its people, and we recognise the history of support for Rua from
the hundreds of local shareholders all through the coast.
We have a diverse range of shareholders, with some large institutions and funds through to individuals around
the country, many of whom had never invested in listed company shares before and were the original supporters
of the Hikurangi Cannabis Company.


Recognising our top ten Shareholders (slide 11)

Here is the list of our top ten shareholders and I briefly want to recognise some of them.

1.
Fang Group Investment Ltd
– our largest single shareholder and a very strong supporter has been
Fang Lui, who has consistently backed the original vision of Manu and Panapa
2.
Hikurangi Bioactives Limited Partnership –
The foundation of Rua today is due to HBLP and the vision
they have had, and it's great to see that a successful listing of Rua last year has enabled HBLP's vision
to create economic opportunities for locals. Thank you, Damian, in particular.
3.
Tailorspace Capital Ltd
– has been an investor since the beginning and are committed to the journey
with Rua, and they provide us with a great resource in our board director Brett Gamble
4. NZ Depository Nominee Ltd.
5.
Andrew Charles Williams –
Andrew has also backed the company since its early days and, through his
business of Alvarium, has provided us with an Auckland office base which is greatly appreciated by the
Rua team
6. FNZ Custodians Ltd
7. Ridings Brothers Ltd
8. Custodial Services Ltd
9. Wakaroma A/C
10. Forsyth Barr Custodians Limited

These top 10 shareholders represent around 63% of the 141.7m shares on issue, about 89m shares. The balance,
about 52m shares, is held by roughly 2,900 very diverse shareholders.

Diverse you all may be; however, the one common theme has been the connection to the Rua Kaupapa. I am
proud to share that, although the business is still young, our shareholding turnover has been relatively small. It
seems you are all on the journey with us, that you understand we are building long-term resilience and that this
will take some time.

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com
I would like to thank all our investors for their continued confidence in our business and express my gratitude for
your ongoing support.


CEO'S COMMENTARY

Our focus at Rua Bioscience over the last 12 months has been on developing new products and markets,
optimising our cultivation and processing capabilities, creating unique plant and product IP, all while developing
the capability and capacity of our team.


GMP and Rua's First Product (slide 13)

In September, Rua received Good Manufacturing Practice (GMP) certification from Medsafe, enabling us to
manufacture our first medicinal cannabis product, a cannabinoid (CBD) oil.

GMP certification is the global standard for all pharmaceuticals and certifies that Rua can manufacture a
consistently safe product of acceptable quality. GMP is a prerequisite for both domestic and export sales. It is, of
course, focused on quality but requires Standard Operating Procedures (SOPs) for every action, equipment
validation, process validation, cleaning validation, computer system validation, product quality reviews. The list
goes on.

This is a significant milestone for the company.

Gaining certification just 12 months after commissioning our facilities and listing on the NZX was a massive
achievement and a testament to the great work being done here in Tairāwhiti by a highly-experienced, talented
and tenacious team.

Put simply, GMP certification means we've moved a long way down the path to being allowed to manufacture
products. The next stage is to submit a New Medicinal Cannabis Product Application to the Medicinal Cannabis
Agency who will undertake an assessment against the Minimum Quality Standards.

While it is unclear how long the application review process will take, we anticipate supplying product for the
domestic market by early 2022.


Progress on Cultivation and Optimisation Capacity (slide 14)

In FY21, our cultivation team has been focused on establishing the commercially viable varieties we will use to
create world-class products. The first step in the process was the selection of potential commercial cultivars.

The Mangaoporo-based team began commercial crop trials in November with a selection of 45 plants. Those
plants were extensively tested - assessed for their agronomic and phytochemical characteristics with a view to
selecting one or two to go through to commercial production.

In March, we selected two vigorous cultivars with strong flowering potential that perform well in our unique
indoor environment. These two cultivars will likely become the backbone of our dried flower business.

In April, the cultivation team began to grow the first of many engineering and validation crops. These crops are a
critical part of our commercialisation process and are designed to test the production systems at Mangaoporo.
Rua aims to grow indoor to Good Agricultural and Collecting Practices (GACP) standards and dry to GMP
standards from this facility.

Discussions continue with potential grower partners to expand cultivation capacity and increase biomass
supplies. We have three supply agreements, including one with our first local grower Porourangi Tawhiwhirangi
from the East Coast Cannabis Company. We also have an R&D supply agreement in place as we look to test
and develop different cannabinoid products.


Research and Development – Targeting the $2.5B Cannabis Testing Industry (slide 15)

R&D is the lifeblood of all pharmaceutical companies and is an area upon which Rua has focused in FY21.

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com
In June, we announced a ground-breaking, two-year research programme to investigate the application of
hyperspectral technology in the cultivation and assessment of medicinal cannabis, paving the way for Rua to
enter New Zealand's booming agritech sector.

Primarily driven by global demand for medicinal cannabis, commentators expect the cannabis testing industry
to be worth around $2.5bn (US $1,806 million) by 2025. However, current analytical methods present significant
challenges for commercial cannabis growers.
Testing requires the destruction of product, is expensive, and the turn-around of results means delays in decision-
making. Our researchers anticipate real-time monitoring using hyperspectral imaging will transform how the
global medicinal cannabis industry qualifies, assesses, and manages its crops.

If the technology works the way we expect it will, hyperspectral imaging will revolutionise our internal cultivation
practices and position us well to lead in the development and marketing of world-class agritech for the global
cannabis industry.


Our Senior Management Team (slide 16)

I'd like to take a moment to acknowledge our senior management team, who are collectively responsible for the
company's deliverables.
× Manu Caddie (Ngāti Pūkenga, Ngāti Hauā), Kaihautu - Innovation and Regulation, Co-Founder
× Hamish White (Ngati Ruanui) - Chief Financial Officer
× Paul Naske - Chief Operations Officer
× Dr Jessika Nowak - Chief Research Officer

In FY21, our recruitment strategy focused on two equally critical components; building a capable and committed
team that will propel the company towards commercialisation; creating highly skilled, well-paid jobs for the
people of Te Tairāwhiti. One of our key hires was that of our Chief Commercial Officer, Dr Andi Grant.

In June, Andi joined the Senior Management team from Janssen Cilag Pty NZ (the pharmaceutical business of
Johnson & Johnson), where she was the Market Access Manager commercialising innovative medicines to New
Zealand patients.

Her global experience includes senior business development roles at Incyte and Galapagos, as well as
Management Director of Living Cell Technologies and at Roche as Government Affairs and Public Policy
Manager.

Andi did her PhD in Molecular Neurobiology. As part of her thesis, she developed a genetic technology that
enabled researchers to turn genes on and off in specific areas of the brain, in particular in the region of the brain
responsible for memory and most susceptible to diseases such as Epilepsy and Alzheimers (the hippocampus).
She transferred the technology to Glaxo Smith Kline (GSK) in her first role post-PhD, where it was used to identify
new drug targets in both disease areas.


Recruiting for the Future (slide 17)

Our focus on recruiting the best naturally creates excellent opportunities for people within the region as well as
whānau looking for the chance to return home.

Of the company's 30 team members at FY21 year-end, 15 had whānau connections or whakapapa to Te
Tairāwhiti iwi. These team members work at all levels of the organisation.

Len Walker (Ngāti Porou, Aitanga-a-Hauiti, Te Whānau-a-Apanui) is a great case in point.
Though his family moved away for work, the East Coast has been a constant for the Walker family, Len's parents
– Ginger and Jackie – eventually retiring to Parera.

Len, however, stayed away from a little longer, raising his own family and carving out a career in the dairy
industry, first at the Tui Co-operative Dairy Company, then with the NZ Dairy Research Institute (now Fonterra
Research) then Edendale. After completing his MBA at Massey University, Len moved to Open Country Miraka
and then Westland Milk Product.

With us since October, Len initially oversaw our Tūranga-based manufacturing facility; his role was key to our
GMP journey. Len is now based at our Ruatorea facility as Cultivation Manager.

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com


The New Zealand Market (slide 18)

Now we thought we'd give you a little insight into the markets within which we're operating.
The New Zealand market is not something we've spoken a lot about as a market but is one that we've been
committed to, given the heightened demand for medicinal cannabis products.

Reliable data on the use of medicinal cannabis in Aotearoa is limited. However, data released by the Ministry of
Health under the Official Information Act shows that the number of packs of medical cannabis prescribed and
supplied in New Zealand is growing at an average rate of 250% annually. The number of packs supplied in New
Zealand in the year to 30 June 2021 was over 31,000, compared to just 2,000 in 2018.

This growth is despite access to medicinal cannabis being constrained by a lack of available products, limited
prescriber understanding of the clinical benefits, and the absence of government reimbursement.

While we won't be the first New Zealand Medicinal Cannabis company to enter the New Zealand market, the
growth in the New Zealand market shows there's room for several players.


German Market Opportunities (slide 19)

In March 2020, Rua Bioscience became the first New Zealand company to announce a binding export
agreement, becoming the exclusive New Zealand supplier of medicinal cannabis products to German distributor
Nimbus Health

As we build toward our first export revenue, the German market remains Europe's most mature medicinal
cannabis market. Seventeen countries currently export to Germany – a market that is highly restricted with
limited domestic supply.

Clinicians can prescribe medicinal cannabis for various conditions, and a significant number of these
prescriptions are paid for (reimbursed) by Statutory Health Insurers. It is currently the largest single market for
GMP (pharmaceutical) grade cannabis globally.

According to data just published by the German National Association of Statutory Health Insurance Funds (GKV-
Spitzenverband), public health insurance coverage of medical cannabis in Germany reached €90 million in the
first half of 2021. With over €45 million reimbursed in Q2 2021, it was the record quarter so far, increasing 2.5%
over Q1 2021 and up 13% from Q2 2020.

184,499 cannabis prescriptions were covered by the public health system in H1 2021 (at an average of €487 per
prescription).

Note these numbers only include what was reimbursed by statutory health insurers. Private prescriptions sales
are not included - these are particularly meaningful in the flower category.


Global Market Opportunities (slide 20)

Consumption of medicinal cannabis is now legal in over 40 countries. The market is expected to be worth over
$62.6b by 2024.

Rua has a clear path to revenue and an export-led strategy targeting major high-standard GMP medicinal
cannabis markets. As well as ensuring New Zealand patients are amongst the first to access our medicines,
Germany remains a core focus. Still, Rua is also actively exploring other international markets where our high
quality, GMP-grade medicinal cannabis products have the potential to be market leaders.

It's a challenging environment. Whilst there has been immense progress in the legalisation of medical cannabis
in countries around the world, there is no "one size fits all" approach to what activities and product types are
permitted in each country, which medical conditions cannabis may be used for, who can prescribe medicinal
cannabis and who pays for it. At the same time, rules and regulations are changing rapidly.

Rua works with a small group of international advisors to stay ahead of market developments internationally
and has positioned itself to capitalise on revenue-generating opportunities. In particular, we are focused on

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com
other European and Asia Pacific countries where regulations require any imported products to meet high-quality
GMP standards. In addition to our unique cultivars, it is the achievement of this GMP standard that will set our
products apart from the other, lower value products available in non-GMP countries.

We have stratified our target markets into Tier 1, and Tier 2 opportunities and are executing our business
development plans in order to extend our distribution beyond Germany and New Zealand in the medium term.


Guidance on Timing (slide 21)

Rua anticipates having its first product available for New Zealand patients as a prescription-only medicine early
in calendar year 2022 and our first export products available for German patients late in calendar year 2022.

This is later than originally anticipated and for a number of reasons beyond our control. For example, while we
were working on GMP, validation samples destined for Melbourne and Canada were held up in international
Customs for 51 days, delaying GMP certification progress for domestic and export products.

The next step for domestic sales is completing Medsafe's New Medicines Application process and the Ministry of
Health's Quality Standard assessment. It's difficult to know how long it will take to navigate that process, but we
are confident these time frames are appropriate, taking into account the lessons we have learned to date.

In terms of being self-sustaining, we believe we'll need three products in the market; however, timeframes
depend on the uptake of products in the market, sales margins and our ability to create a diverse product
offering.

At the moment, we're comfortable with our cash reserves and the rate of cash burn, and while we show the end
of cash runway by Dec 2023, this excludes any revenue, which of course, will begin in early 2022.


Opportunities and Challenges for the Sector (slide 22)

The opportunities for Rua and the sector more broadly are quite significant:
1. we're operating in a sunrise industry – markets are opening up around the world
2. The growing body of clinical evidence – there's lots of work being done on medicinal cannabis efficacy
in treating a broad range of conditions from anxiety to juvenile epilepsy

The challenges we face:
1. Decades of stigma and the political ramifications that sit alongside that. We're starting to see this
change in the US and across the globe as markets open up. Germany is one of the most advanced
European markets. But the UK, Australia and Denmark are all in various stages of development.
2. Meeting the minimum quality standards. We've just proven that we can meet exacting industry
standards in the manufacturing space, and we expect to do the same with our product standards.
3. Expansion of foreign markets – until they all open up, many will be competing in the few open markets.
Rua's strategy is to compete on our unique kaupapa, the New Zealand Story and with differentiated
product grown from superior genetics.


Towards Sustainability (slide 23)

In 2019, Rua Bioscience became a member of the Global Cannabis Partnership - an initiative designed to make
the cannabis industry equitable, sustainable and accountable, cementing our commitment as an ethical and
sustainable cannabis business with the development of the Rua Sustainability Framework.

As well as aligning with the United Nations Global Compact Sustainable Development Goals (SDGs), our
bespoke Sustainability Framework will take our practice and our responsibility to the community a step further,
underpinning our goal to lead the global industry in sustainability. It will shape the way we engage with
stakeholders, support sustainable decision-making processes at all levels of the company, shape business
strategy, guide innovation; drive better performance; create value and attract investment.

Our work for FY22 includes projects around:
× Carbon transition
× Sustainable packaging
× Job creation and community impact

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com
× Ethics
× Diversity and inclusion

A more comprehensive overview of the Rua Sustainability Framework is available in our Annual Report, and we
look forward to regularly reporting against our targets.


Community Engagement (slide 24)

In 2020, Rua Bioscience launched our Community Engagement and Capability Development Programme,
establishing a new role - Kaiārahi Community Development Coordinator – and engaging Darylene Rogers to
design and lead the programme with the support of Manu and Panapa.

Local rangatahi are a key focus of the programme because we know local employment opportunities are
limited.

Rua has allocated $50,000 in this financial year. Trust Tairāwhiti also backed our programme with a contribution
of $50,000 to support our work over 2021 and 2022.

Last November, we launched our scholarship programme for rangatahi residing on the East Coast. We
supported five students from Te Tairāwhiti to undertake Tertiary study in 2021. We also provided an internship in
partnership with the NZ Institute of Plant & Food Research for a Māori student going into her third year of
university study in plant biology.

This year, we have put in place the building blocks for a number of other exciting initiatives.

We're looking to encourage rangatahi into STEM study (Science, Technology, Engineering and Maths). Rua will
soon launch our medicinal cannabis Industry Career Guide for locals interested in acquiring the relevant skills
and experience to enter the industry. And we'll be active within the East Coast school community – attending
careers expos and school visits, as well as hosting visits to our facilities.

We're also building a programme of visits to Tertiary education providers and research institutes for the next
generation of East Coast scientists, researchers, inventors and entrepreneurs.

So, what I hope you'll take away from this is that Rua has a focused and realistic export strategy, with a clear
path to revenue and a view extending along the medicinal cannabis value chain.
We are excited by the next phase of our journey and what lies ahead, possible because of our committed
stakeholders and partners. In particular, thank you to the entire Rua team: the Board for your guidance and
support, the team for your dedication and commitment, and the unwavering support of your whānau.


ANNUAL RESULTS

Results at a Glance (slide 26)

From a financial perspective the FY21 year was very much focused on the development of our business as we
work towards commercialisation of our first products.

Our cultivation team has been busy progressing our plant discovery project as we test and analyse our genetic
stock ready for selection of our commercial varieties. The team has been working through the nuances of the
new facility which has been refined and further developed over the year. The manufacturing teams has been
working on product development and the processes required to manufacture our first medicines. Our Quality
team has been extremely busy ensuring that we have high quality standards in place and all the work required
to obtain our GMP license from Medsafe.

Rua completed the year with net assets of $28.8m, this includes $16.4m of cash and investments. So, we are well
capitalised heading into the next financial year.
We raised $20M at the IPO in October 2020 – these funds have allowed us to continue our growth and progress
the development of our products and potential markets as we start to move into commercialisation.

Our FY21 results are in line with expectations as we continue to invest in the development of our product
portfolio as well as establishing the systems and processes in both our cultivation and manufacturing operations.

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com

Notable Figures from the Profit and Loss (slide 27)

In FY21, Rua recorded a loss before tax of $6.17m. Consistent with being an early-stage pharmaceutical
company, our R&D component of this loss was $1.90m.

The other income received was $0.45m, predominantly made up of R&D grants related to our planned
projects. This is down slightly on the previous year as, being a listed company, we are not entitled to cash out our
tax losses.

Our income tax credit was $1.75m This brings our total loss after tax to $4.42m for FY21.


Notable Figures from the Balance Sheet (slide 28)

In terms of our balance sheet, Rua is currently well capitalised and does not have any emphasis on matters
around going concern.
The total cash and investments at the end of FY21 was $16.4m.
Our total investment in property, plant and equipment to date is $6.17m. The key areas of this investment have
been into our cultivation centre in Ruatorea and our extraction and manufacturing facility in Gisborne.
Our total assets were $30.8m with total liabilities of $2m, bringing our net assets to $28.8m at 21 June.


Notable Figures from the Cashflow (slide 29)

Net cash
outflow
from operating activities $4.48m, which was made up of grant income received of 691k and
payments to suppliers and employees of $5.1m.
Cash
outflow
from investing activities was $14.4m. These cashflows are related to our term deposits being
entered into and maturing. In line with our treasury policy, all investments are in bank term deposits.
Our cashflows from financing activities focused on the successful IPO, which raised $20m for the company.


SUMMARY

Rua has a focused and realistic export strategy, with a clear path to revenue and a view extending along the
medicinal cannabis value chain.
We are excited by the next phase of our journey and what lies ahead, possible because of our committed
stakeholders and partners.
We look forward to the year ahead, delivering key milestones across the seed to sale journey.

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PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com




FOR PUBLIC RELEASE
NZX Limited
Wellington

Tuesday 19 October, 2021

Presentation Slides and Commentary Available for Rua Bioscience Ltd Annual Shareholder
Meeting

The attached ‘Presentation Slides’ and ‘Chairman and CEO Commentary’ will be presented at the
Rua Bioscience Annual Shareholders Meeting.

The meeting will be a hybrid meeting held at 12.00pm (New Zealand time) on 19 October 2021 at
Waikanae Surf Club, 280E Grey Street, Awapuni, Gisborne and online via Computershare Investor
Services Limited’s (
Computershare
) meeting platform https://meetnow.global/nz, commencing at
12:00 p.m.

Please note that, due to Covid 19 impacts on travel, some members of the Rua Board will be
attending virtually.

ENDS

For more information, please visit www.ruabio.com or contact:
Media
Kerry Donovan
Communications Manager
+64 (21) 128 7689
kerry.donovan@ruabio.com

Investors
Hamish White

Chief Financial Officer

+64 (21) 050 5795
Hamish.white@ruabio.com

About Rua Bioscience
Rua Bioscience is a New Zealand pharmaceutical company aiming to produce cannabinoid derived
medicines for both export and local markets. Rua has been an early mover in the sector and was the
first private company in New Zealand to receive a licence to cultivate Cannabis for research
purposes. Founded in 2017 in Ruatorea as a subsidiary of charitable company Hikurangi Enterprises
Limited, Rua is underpinned by its mission to heal the people and heal the land. It is committed to
New Zealand's Te Tairāwhiti (East Coast) region and its local community. The Company has
completed facilities for cultivation and manufacturing and is currently going through the GMP
certification process. www.ruabio.com




Chairman and CEO Commentary