Ann: FY20 June Quarter Update and Cash Commentary, page-2

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*Net cash for the quarter increased US$1,247k, compared to -US$621k burn pcp. The cash
increase was due mainly to operations +US$582k, including government grants, and FX gains
of US$681k.

Q4 FY20 June Quarter Cash Review

• Yowie Group’s cash position at 30 June 2020 was US$11.8 million.
• For the June quarter, Yowie reported US$2.03m of cash receipts from customers.
• US$1.63m was spent on administration, manufacturing and operating costs.
• US$0.016m was spent on investing activities and there was a foreign exchange gain of
US$0.681m and interest earned of US$0.013m.
• US$0.17k grants and incentives from the US and Australian governments for payroll
protection during COVID.
• Net cash gain for the quarter was US$1.25m.


Outlook

Though the current market environment presents a high level of uncertainty, we have seen some
encouraging results in June and trending into July. The competition continues to invest heavily and
launching new products to market. Our focus remains on the following:

1. Focus on fiscal discipline and cash management, to keep margins healthy and allow us to
invest in the trade where appropriate.

2. Distribution in the US and Australia across all channels of trade, including Ecommerce and
Club stores, to expand buying opportunities for consumers. Retailers have begun to slowly
start reviewing category sets for adding new items.

3. Develop and bring to market new items consistent with our brand mission to educate
consumers about conservation and endangered species.

4. We are in direct discussions with several potential strategic partners to better position Yowie
to compete in the highly competitive US and Australian confection categories.


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