for personal use only - australian securities exchange to use these rights to outsource the...

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Tempo Offices, Unit B9, 431 Roberts Road, Subiaco WA 6008 T 9287 4600 F (08) 9287 4655 ABN 98 084 370 669 1 July 2013 ASX Compliance Pty Ltd Level 8 Exchange Plaza 2 the Esplanade Perth WA 6000 Clarification on Investor Presentation Yowie Group Ltd (the “Company” or “Yowie”) wishes to clarify statements made in its Investor Presentation that was released to the market on 8 May 2013 (Investor Presentation). The Investor Presentation contained statements that the Australian Securities and Investments Commission (ASIC) have indicated could be interpreted as prospective financial information or could imply that the Company has taken independent expert advice on its product launch into the United States. The Company wishes to clarify that any such statements were made after members of the Board had met and discussed potential sales of the Company’s products with confectionary industry participants in the US. The Company did not imply that these parties were independent and wish to clarify that no report was commissioned by the Company or prospective financial information prepared in accordance with ASIC Regulatory Guide 170. Given these concerns and to avoid any confusion, the Directors have resolved that it is appropriate that they retract any statements made in the Investor Presentation and to issue a revised investor presentation. Attached, is a revised Investor Presentation addressing these concerns of the ASIC. The Company is in the process of finalising a supplementary prospectus to be lodged with ASIC. The Board advises that it was never the intention of the Board to mislead or confuse shareholders and investors, and apologises if any confusion was caused by these statements. Yours sincerely, Wayne Loxton Executive Chairman Yowie Group Ltd ABN 98 084 370 669 For personal use only

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Page 1: For personal use only - Australian Securities Exchange to use these rights to outsource the manufacturing and distribution of the Yowie chocolate confectionery product, digital platform

Tempo Offices, Unit B9, 431 Roberts Road, Subiaco WA 6008 T 9287 4600 F (08) 9287 4655

ABN 98 084 370 669

1 July 2013 ASX Compliance Pty Ltd Level 8 Exchange Plaza 2 the Esplanade Perth WA 6000

Clarification on Investor Presentation

Yowie Group Ltd (the “Company” or “Yowie”) wishes to clarify statements made in its Investor Presentation that was released to the market on 8 May 2013 (Investor Presentation). The Investor Presentation contained statements that the Australian Securities and Investments Commission (ASIC) have indicated could be interpreted as prospective financial information or could imply that the Company has taken independent expert advice on its product launch into the United States. The Company wishes to clarify that any such statements were made after members of the Board had met and discussed potential sales of the Company’s products with confectionary industry participants in the US. The Company did not imply that these parties were independent and wish to clarify that no report was commissioned by the Company or prospective financial information prepared in accordance with ASIC Regulatory Guide 170. Given these concerns and to avoid any confusion, the Directors have resolved that it is appropriate that they retract any statements made in the Investor Presentation and to issue a revised investor presentation. Attached, is a revised Investor Presentation addressing these concerns of the ASIC. The Company is in the process of finalising a supplementary prospectus to be lodged with ASIC. The Board advises that it was never the intention of the Board to mislead or confuse shareholders and investors, and apologises if any confusion was caused by these statements. Yours sincerely, Wayne Loxton Executive Chairman Yowie Group Ltd

ABN 98 084 370 669

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Tempo Offices, Unit B9, 431 Roberts Road, Subiaco WA 6008 T 9287 4600 F (08) 9287 4655

ABN 98 084 370 669

About Yowie Yowie Group Ltd is a brand licensing company that owns intellectual property rights and intends to use these rights to outsource the manufacturing and distribution of the Yowie chocolate confectionery product, digital platform and Yowie branded licensed consumer products. The Company’s vision for the Yowie brand is to distribute the Yowie product initially in North America with further expansion planned into Australia, New Zealand and the Asia Pacific region where the Yowie brand is known and brand equity remains strong even with the brand not having been active in the market for around eight years.

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YOWIE GROUP LIMITED

Investor Presentation July 2013

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Copyright YGL 2

Disclaimer This Presentation (the “Presentation”) has been prepared for use by prospective acquirers in considering their interest in an investment (the “Transaction”) in Yowie Enterprises Ltd (or the “Company”). By accepting a copy of this Presentation, the recipient acknowledges and agrees as follows: • This document should be used solely to assist them in conducting their own evaluation and investigation of the Company and does not purport to contain all

of the information that may be required or relevant to a recipient’s evaluation of any Transaction. In all cases, recipients will be responsible for conducting their own investigations and analysis.

• Neither the Company or any of its affiliates or representatives makes any representation, warranty or guaranty of any kind, express or implied, as to the accuracy, completeness or reasonableness of the information contained herein or any other written or oral communication transmitted or made available to any recipient. The Company and its affiliates and representatives expressly disclaim any and all liability based on or arising from, in whole or in part, such information, errors therein or omissions therefrom.

• Representations are made on a reasonable basis contained herein. The purpose of this presentation is to give the recipient a reasonable basis for investment and the evaluation of the transaction by the person to whom this presentation has been delivered has not taken into account any of that persons personal circumstances for investment. In addition, the company prohibits any use of this and any other related materials accompanying this document without prior consent from the Company itself.

• In addition, this Presentation may include certain projections and forward-looking statements provided by the Company with respect to the anticipated future performance of the Company. Such projections and forward-looking statements reflect various assumptions of management concerning the future performance of the Company, and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company. Accordingly, there can be no assurance that such projections or forward-looking statements will be realized. Actual results may vary from anticipated results and such variations may be material. No representations or warranties are made as to the accuracy or reasonableness of such assumptions or the projections or forward-looking statements based thereon.

• Each recipient should make an independent assessment of the merits of pursuing a Transaction and should consult its own professional advisors. This presentation should be read in conjunction with the prospectus document for this investment.

Kinder Surprise is copyright of Ferrero 2009 and a licensed trademark of the FERRERO INTERNATIONAL S.A. Cadbury Schweppes PL and Cadbury PLC mentioned in this document are now owned by the Kraft Foods Inc. Nestle Magic Ball is a licensed trademark of the Nestle Ltd. Confidential Prepared for Yowie Enterprises Pty Ltd for the Yowie TM Label

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Yowie Group Limited A new global brand owner

and licensing company

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Copyright YGL 4

YGL Capital Structure Issued Capital • Market capitalization AUD $9million • 59,236,535 fully paid Ordinary shares • 29,799,052 Listed Options - exercise price 20c – expiry Dec 15,

2015 • Top 40 Shareholders control over 80% of Yowie Securities

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Copyright YGL 5

New Capital Structure incl. $5m Top 5 Shareholders Shares %

K. P. Hudson 12,034,353 21

Daleford Way 4,500,000 8

C&L. Lubich & Family PF 2,750,000 5

Seefeld Investments 2,700,001 5

Loxton Investment 2,354,000 4

Total 24,338,354 42

Related Party Shares Options

Wayne Loxton 5,290,667 3,050,000

Bob Watson 4,500,000 2,250,000

Mark Avery 1,350,000 675,000

Patricia Fields 300,000 150,000

Total held by Directors 11,440,667 6,125,000

Total Shares Options on issue 59,236,535 29,799,052

% held by Directors 20% 21%

Effect of Capital Raising Shares Options

Total shares/options on issue currently 59,236,535 29,799,052

$5 mill Capital raising (assuming shares issued at 15 cents per share) = 36% of total

33,333,333

Expanded Capital Post Raising 91,569,868 29,799,052

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Copyright YGL 6

$5 million Capital Raising Use of Funds The use of funds for the $5m raising is as follows: • Purchase 2 wrapping machines – $1,000,000 • Initial inventory (6 million units) – $2,000,000 • US rollout marketing – $500,000 • First fill chocolate, foil, cartons, trays – $500,000 • Working capital – $1,000,000

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Copyright YGL 7

Board & Management Team • Executive Chair : Wayne Loxton • Executive Director COO : Mark Avery • Non Executive Director : Bob Watson • Non Executive Director : Patricia Fields

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Copyright YGL 8

Director Bios Executive Chairman: Wayne Loxton – extensive corporate executive experience spanning over 30 years at M.D. & Director level across companies, disciplines and international markets Executive Director: Mark Avery – a former CEO of ThemeSTAR (AEGIS), division of Anschutz Entertainment Group who operate 100+ venues globally with revenues of $1bill annually. Over 30 years experience in the entertainment industry across global market operations and leveraging entertainment intellectual properties Non Executive Director: Bob Watson – a successful CEO, Company Director and entrepreneur with over 30 years experience building, managing & directing private and public companies globally. Director of Seek for 14 years from initial investor to active Director and Chairman. The Seek business grew to ASX Top 100 with $3.5bill market capitalization Non Executive Director: Patricia Fields – led the development & commercialization of the Yowie brand for Cadbury Schweppes Asia Pacific into $100mill retail brand. 20+ years commercial and brand experience in FMCG industry, an ex Global Director for Cadbury Schweppes Plc.

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Copyright YGL 9

Yowie Brand History • First launched in ANZ market in 1995 • 31 million units sold in 20 weeks (surpassed FY projection) • 65 million units sold in first full year ($100 million retail) • Over 2 million children's books sold • Yowie achieved No 1 in sales in children’s book category • Yowie rolled out into Singapore, Japan & UK markets • Extensive licensing program – across food & non-food • Yowie stole 30% market share from global and local established

market leader Kinder Surprise • In less than two years Yowie achieved 36.2% value share

of Australian’s childrens confectionery market • Yowie became the No 1 selling single unit confectionery

line in the ANZ market

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Copyright YGL 10

Yowie - An Award Winning Brand 1997 Sial D’or International Industry Trade Show • Best new global supermarket product • Best new global confectionery product Australian Market Awards • Best in the Business - Business Review Weekly • Best New Aus. Supermarket Product • Best New Product - Safeway Food Stores • Most Innovative & Best New Product - Foodweek Magazine

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Copyright YGL 11

• 1992 Partnership formed between Kidcorp (creators) & Cadbury • Cadbury owned parts of Asia Pacific (only) – excluding China/India • Kidcorp retained ownership to the rest of world including key growth

opportunity markets of India, China & US

Yowie Brand Ownership F

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Copyright YGL 12

Yowie Brand Ownership • Cadbury were not interested in non food licensing opportunities

(non-core business) • Licensing was key to Yowie award winning success • Cadbury investment and interest focused on company owned

core brands and investment in Yowie was not supported • Kidcorp finally secured full buyback in 2012 with Kraft takeover

of Cadbury • YGL now pursuing Yowie global brand potential – worldwide

confectionery rollout plus extensive licensing & digital program

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Copyright YGL 13

Yowie Brand Profile • Outstanding international award winning brand • Highly differentiated best in class creative • Global market potential • Worldwide appeal across gender, age and culture • Cross category licensing growth opportunity • Relevant and timely ecology/environmental positioning • Collector cult following • Play & Learn proposition

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Copyright YGL 14

Yowie Key Objectives • Build a global confectionery led brand

• Launch a broad range of licensed products worldwide

• Establish a commercially successful digital platform

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Copyright YGL 15

The Yowie US Opportunity • Yowie has exclusive rights to US Patents #5,925,321 &

#6,099,872 valid until 2019 • Patents allow FDA approved production of non imbedded

chocolate toy product • US market opportunity represents 315 million people

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Copyright YGL 17

US Agreements in Place • Manufacturing : Whetstone Chocolate Company • Patent : Hank Whetstone /Secure until 2019 • Manufacturing Technology: Hank Whetstone/Secure until 2020 • *Inclusions : Perfect Productions Hong Kong Ltd • *US Market Distribution: Ferrara Candy Company • Digital Development: The Little Big Partnership * At final draft

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Copyright YGL 18

US Launch Key Dates 2013 On Schedule Program April: Factory acceptance packaging trials in Germany May: Factory commissioning wrapping machine in Florida US June: 90 Day US production trial commences Aug: Inclusion/capsule production commences in China Sept: US production commences Nov: First shipment leaves factory for retail distribution

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Copyright YGL 19

Growth Strategy

Yowie New Licensees & Categories /

New Digital Apps

Yowie Licensing & Digital Expansion

Program

Yowie US Confectionery Launch

Licensing & Digital Launch

Yowie Confectionery ANZ Market Launch

Yowie Confectionery Market Expansion

into Canada & Mexico

Yowie Confectionery ROW Global Rollout incl. India & China

$ YOWIE VALUE CREATION

2013 2014 2015 2016

Yowie Licensing, Digital Development

& Confectionery Global Rollout

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Copyright YGL 20

Yowie Strengths • Experienced Board with unique experience – key capability in

entrepreneurial start-ups, global brand management, international markets, digital & licensing development

• Yowie proven brand with strong equity still remaining in ANZ market plus internet fan base

• Patent protection in the US market • Strong, experienced manufacturing & distribution alliances identified and

in place • Capital structure highly leveraged to share price with Top 40 controlling

over 80% of securities • Following capital raising YGL fully funded for U.S. full market Yowie rollout • Board is committed to initially reinvest earnings for growth with an

aggressive dividend policy once cash flow allows • Short lead time to commence Yowie rollout in world’s biggest consumer

market

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Copyright YGL 21

Yowie Challenges • Need to secure faster acceleration of manufacturing output to

realize full value of US market patent • Growth and expansion to outpace competition • New investment to increase manufacturing capacity and allow

expansion into new markets – ANZ/Canada/Mexico/China/India…

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Copyright YGL 22

Key Competitive Advantage • US exclusive rights Patent • Award winning proven brand • Product offer and experience advantaged vs. worldwide market

leader (Kinder Surprise) • Global brand licensing opportunities • Global digital platform including Mobile Apps

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Copyright YGL 23

Yowie Confectionery Product F

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Copyright YGL 24

Yowie vs. Kinder Surprise on shelf F

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1. High Speed Foiling & Wrapping 2. Series 1 Inclusions 3. Confectionery Manufacturing

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Brand Strategy

• Extensive launch sampling program • Off location power wing displays to build

stock weight in store • Limited edition natural replica inclusions • Mobile app & digital platform • Cross category licensing program • Environmental play & learn

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Copyright YGL 27

Licensing & Digital – Core Value Drivers in Yowie Growth Strategy

Food Licensing For

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Copyright YGL 28

Non-food Licensing

Music CDs & Games

Body Boards

Jocks n Socks

Garden Seeds

Puzzles & Games

Pencil Case & Satchel For

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Copyright YGL 29

Non-food Licensing

Bubble Bath & Shampoo

Caps

Beanies & Danglers

Publishing

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Copyright YGL 30

Digital Apps F

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Copyright YGL 31

Yowie Brand Success • A Winning Formula: • Six endearing Yowie characters • Portion controlled at 27gms • Consumer preferred Cadbury chocolate • High definition character foils for market impact & shelf standout • Token inclusion with ecology story & trading value • Premium natural replica collectable creature inclusions • Yowie Power Supporters Club • Collector cult following • Extensive licensing and digital program • Core proposition – Play & Learn - ecology and the natural world

resonated strongly with consumers For

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Copyright YGL 32

Invest in Yowie Today! Yowie is a significant new value creating growth opportunity • Exclusive patent rights to US market • Global brand licensing opportunity • Worldwide digital platform including mobile apps opportunity • Global new markets/product expansion and growth opportunity • Yowie is a proven brand winner ready to take its place on

the world stage

Invest for success ………..in Yowie today!

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Coming soon to a store near you!

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