Else Nutrition (BABY) investor relations material

Strategic positioning and product innovation

• Introduced the first whole plant-based, dairy- and soy-free early life nutrition range using almonds and buckwheat, targeting a significant portion of the $100 billion global infant nutrition market.

• Products offer improved health benefits, reduced allergen risk, and are modeled to meet human milk nutritional standards, supported by a scientific advisory board and proprietary technology.

• Achieved over 60% lower carbon footprint compared to dairy products and are Clean Label certified, appealing to health- and environmentally-conscious consumers.

• Product line includes baby cereals, toddler and kids nutrition, and expansion into adult nutrition, with strong distribution partnerships in North America and revived direct-to-retail sales in Canada.

Financial turnaround and operational highlights

• Achieved significant margin and cost improvements in 2025, with a plan to reach profitability by early 2027.

• Improved Q3 gross margins to 34% through cost reduction and supply chain efficiencies, and reduced operational expenses by nearly 70% year-over-year.

• Cash burn reduced from $1.15 million to under $200,000, now at approximately $50,000, supporting financial sustainability.

• Maintained stable revenue despite marketing and inventory constraints, with strong demand for unique products.

• Secured funding to support operations until reaching cash flow positivity.

Regulatory and industry landscape

• U.S. infant nutrition market has faced outdated FDA regulations, allergen risks, contamination incidents, and supply shortages, highlighting the need for innovation.

• Operation Stork Speed launched by the U.S. government to modernize regulations, increase contaminant testing, and support new formula innovation.

• NASEM recommended modernizing protein evaluation methods, enabling fair assessment of plant-based proteins.

• Legislative breakthrough in November 2025 directed the FDA to streamline approval for non-dairy, non-soy formulas.