Anagenics : Appendix 4C and Quarterly Activity Report

For personal use only

ASX ANNOUNCEMENT

ANAGENICS LIMITED (ASX: AN1) - Q4 FY2022 BUSINESS ACTIVITY REPORT

• Adding revenue opportunities
• Operational cost savings improving cashflow
• AN1 actively pursuing M&A opportunities

SYDNEY, Tuesday, 26 July 2022

Commentary on Q4 FY2022 group financials

Total revenue and other income in Q4 FY2022 for the Group was $2.97 million1, an increase of 11% from the corresponding period in FY 21. The BLC business in Australia and New Zealand continued to drive revenue growth in the quarter from sales made by major key brands - Thalgo, Hydro Peptide and Priori. Revenue gains from the BLC business will annualise next financial year and continue to grow with the onboarding of a new brand, INIKA Organic, from 1 July 2022.

Revenue gains in the quarter were however partly offset by underperformance from the existing Advangen business, primarily Japan, which recorded lower volumes on the prior corresponding period - $1.12 million (FY21: $1.79 million). The suspension of business activity in China due to COVID-19 imposed lockdown restrictions limited traditional buying activity whilst in the Japanese domestic market QVC TVS (annual television sale promotion) was unexpectedly cut short due to an earthquake thereby reducing total promotional air-time.

Sales volumes for the remaining Advangen businesses (Australia and US) have performed largely consistent to the prior corresponding period in FY21, benefiting from an increase in activity sourced from cross border ecommerce into China and improvement in website (direct to consumer) traffic volumes generally.

Net operating cash outflows in Q4 reduced to $0.1 million due mainly to the timing of collections on Japan's QVC sales. Cost saving measures implemented under the new leadership team in Q3 commenced realisation in Q4 (YTD: $0.2M)

As noted in the Q3 FY2022 Activity report, all Directors of the AN1 Board have also agreed to a temporary 6 month freeze in their Director fees. Payments to related parties in Q4 of $0.2M relate to PAYG income tax liabilities remitted to the Australian Tax Office in relation to salaried remuneration which was paid to certain Directors in Q3.

1 All figures quoted in the Business Activity Report are preliminary and subject to any year end audit adjustments.

ANAGENICS LIMITED ACN 111 304 119 ASX I AN1

Suite 204, 55 Clarence Street, Sydney NSW 2000 AUSTRALIA

TELEPHONE [phone] FACSIMILE [phone]

www.anagenics.com

For personal use only

Building revenue, optimizing cost base and pursuing M&A

As previously announced, AN1's losses narrowed in the second half with revenue growth and cost saving initiatives commenced in the last quarter of FY22 which are expected to annualise up to $1.2M over FY23. Continued growth in BLC's revenue and profit and a full year contribution are also expected to drive AN1 profit growth in FY23. AN1 is also in active discussions to simplify business operations to focus on profitable growth. Despite a difficult period, AN1 remains committed to achieving run-rate profitability before acquisitions during the FY23 year.

During Q4 AN1 signed an exclusive distribution agreement with Total Beauty Network Pty Ltd for the distribution of its INIKA Organic make-up and skincare brand, to the Australian salon and spa market.

As recently announced2 the Group welcomed the appointment of Scott Greasley, Executive Director, to the Board of AN1. Scott and the senior leadership team have now partnered to continue exploring and identifying various existing M&A and brand distribution opportunities designed to immediately introduce new revenue, drive economies of scale needed achieve profitable growth.

Approved for release by the Board of Directors.

Sandy Beard Chairman

[phone] [e-mail]

Anagenics Limited (ASX: AN1)

Anagenics is a health and beauty-tech business growing shareholder value through the global distribution and sales of its proprietary and licensed brands of differentiated, clinically validated anti- aging solutions. BLC Cosmetics Pty Ltd is Anagenics' wholly owned subsidiary focused on sales and distribution of leading Australian and international brands of cosmetic and wellness products. Advangen Pty Ltd is Anagenics' wholly owned subsidiary engaged in the development and sale of proprietary first in class, best in class, clinically validated products for hair, skin and body. For further information, please see www.anagenics.comand www.evolisproducts.com.au.

Forward looking statements

This announcement may have forward-looking statements that are subject to risks and uncertainties. Such statements involve known and unknown risks that may cause the actual results, performance or achievements of Anagenics to be materially different from the statements in this announcement. Actual results could differ materially depending on factors such as, amongst other, the availability of resources, regulatory environment, the results of marketing and sales activities and competition.

2 Refer ASX 08 July 2022 - "Appointment of Executive Director, Corporate and Trading Update".

ANAGENICS LIMITED ACN 111 304 119 ASX I AN1

Suite 204, 55 Clarence Street, Sydney NSW 2000 AUSTRALIA

TELEPHONE [phone] FACSIMILE [phone]

www.anagenics.com

For personal use only

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

ANAGENICS LIMITED
ABN	Quarter ended ("current quarter")
69 111 304 119	30 JUNE 2022

Consolidated statement of cash flows	Current quarter	Year to date
			(3 months)	(12 months)
			$A'000	$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	3,181	10,803
1.2	Payments for
	(a)	research and development	(11)	(111)
	(b) product manufacturing and operating	(771)	(3,890)
		costs
	(c)	advertising and marketing	(358)	(1,444)
	(d)	leased assets	-	-
	(e)	staff costs	(1,102)	(4,664)
	(f) administration and corporate costs	(1,031)	(3,844)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	13	28
1.5	Interest and other costs of finance paid	(6)	(26)
1.6	Income taxes paid	(8)	(28)
1.7	Government grants and tax incentives	-	623
1.8	Other	-	-
1.9	Net cash from / (used in) operating	(93)	(2,553)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities (net)	-	(932)
	(b)	businesses	-	-
	(c) property, plant and equipment	-	(79)
	(d)	investments	-	-
	(e)	intellectual property	-	-
	(f)	other non-current assets	-	-

ASX Listing Rules Appendix 4C (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter	Year to date
			(3 months)	(12 months)
			$A'000	$A'000
2.2	Proceeds from disposal of:
	(a)	entities	-	-
	(b)	businesses	-	-
	(c)	property, plant and equipment	24	24
	(d)	investments	-	-
	(e)	intellectual property	-	-
	(f)	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	24	(987)
	activities

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of	-	-
	equity securities or convertible debt
	securities
3.5	Proceeds from borrowings	-	979
3.6	Repayment of borrowings & leasing	(68)	(861)
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)
3.10	Net cash from / (used in) financing	(68)	118
	activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

	period	3,422	6,728
4.2	Net cash from / (used in) operating	(93)	(2,553)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	24	(987)
	(item 2.6 above)

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

For personal use only

Consolidated statement of cash flows	Current quarter	Year to date
		(3 months)	(12 months)
		$A'000	$A'000
4.4	Net cash from / (used in) financing activities	(68)	118
	(item 3.10 above)
4.5	Effect of movement in exchange rates on	-	(21)
	cash held
4.6	Cash and cash equivalents at end of	3,285	3,285
	period
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	2,821	2,958
5.2	Call deposits	136	136
5.3	Bank overdrafts	328	328
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	3,285	3,422
	quarter (should equal item 4.6 above)
6.	Payments to related parties of the entity and their	Current quarter
	associates		$A'000
6.1	Aggregate amount of payments to related parties and their	177
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their	-
	associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

ASX Listing Rules Appendix 4C (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.