Elixinol Wellness Annual Report 2021

Financial Highlights Cost base reduction 35 % Operational and corporate cost reduction initiatives have significantly reduced operating expenses FY21 compared with FY20. Well funded** With improving cash flow, approximately five quarters of funding based on latest quarter. $ 14.7 m vs $27.7m in FY20 -16 -14 -12 -10 -8 -6 -4 -2 0 H1 FY20 H2 FY20 H1 FY21 H2 FY21 (15.2) (8.0) (7.1) (4.4) Elixinol Americas Corporate Europe & UK Hemp Foods Australia Adjusted EBITDA* Improved significantly between FY21 and FY20, despite lower revenues with a reduced cost base supporting a simplified strategy. Cost reduction program and higher margin business driving performance improvements. H2 FY21 includes $1.6m non-recurring income fromUS Employee Retention Credit program. Adjusted EBITDA by Half A$ million, 31 December year end Revenue by channel Divested lowmargin business to focus on higher margin branded products. Driving margin improvement as business mix shifts towards e-commerce and branded consumer goods channels. Key markets impacted by COVID-19 through the period. 0 2 4 6 8 10 12 14 16 FY20 15.0 9.3 FY21 Hemp Foods Australia Elixinol e-Commerce Elixinol Retail Europe & UK CBD Bulk/Private label Revenue by Channel A$ million, 31 December year end 11.4 75% 8.6 92% * Excluding non-cash impairments and share-based payments. ** $12.6m Cash and cash equivalents at the end of the reporting period plus $2.1m expected to be received from one-ož US COVID-19 relief measures ($1.6m from ERC program plus $0.5m refund of taxes paid in prior financial years). 5 Quarters With a strong cash position Elixinol Wellness is in the best EBITDA it has been over recent periods. 9 Company Overview Financial Report Shareholder Information Key Achievements and Milestones FY2021 Highlights F Y202 1 HIGHL IGHTS