Go Vita 2021 Annual Report

GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021

“We are a co-operative and each of our stores is individually owned and operated, each is unique and this, we truly believe, is one of our greatest strengths. Through the collective efforts of the co-operative, our stores are able to offer better prices, extensive product offerings and more services to all customers.”

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CONTENTS

Who we are

About Us

6 7 8 9

Key events in Go Vita’s History

Our Purpose and Vision Our Strategic Pillars

Our Brands

2 3

2020-2021 Year in review

Chairman’s Report

14 17

Managing Director’s Report

The Go Vita Executive Team

The Board of Directors

24 26

The Executive Leadership Team

The 2020-21 Go Vita Group Limited Financial Report 29 Directors’ Report 30 Auditor’s Independence Declaration 35 Corporate Governance Statement 36 Consolidated Statement of Profit and Loss and Comprehensive Income 42 Consolidated Statement of Financial Position 43 Consolidated Statement of Changes in Equity 44 Consolidated Statement of Cash Flows 45 Notes to the Financial Statements 46 Directors’ Declaration 67 Independent Auditor’s Report to the members 68

GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 3

“For more than 30 years, Go Vita health food stores have led the health and wellness industry in Australia, helping people in communities across the country to embrace health and wellness through awareness, education and support.”

I GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 4

About Us WHO WE ARE 1 Key events in Go Vita’s History

6 7 8 9

Our Purpose and Vision Our Strategic Pillars

Our Brands

GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 5

ABOUT US

For more than 30 years, Go Vita health food stores have led the health and wellness industry in Australia, helping people in communities across the country to embrace health and wellness through awareness, education and support. We are a co-operative and each of our stores is individually owned and operated, each is unique and this, we truly believe, is one of our greatest strengths. Through the collective efforts of the co-operative, our stores are able to offer better prices, extensive product offerings and more services to all customers. We love what we do and are proud of the reputation we have built for Go Vita – the place to go for trustworthy, professional and personalised health and wellness advice, and an extensive range of products and services. We have over 300 natural health practitioners working across our stores nationwide. Go Vita operates a modern warehouse and distribution centre in Sydney, from where we distribute to health food shops around Australia. We are committed to making a positive difference in this world. Our focus is on promoting health and wellbeing for all. And in all that we do, preserving the planet is critical – whether looking at packaging for new products or execution of promotional campaigns we consider the impact on the environment and community as a whole.

The Business Council of Co-operatives and Mutuals (BCCM) : Australia’s only peak body for co-operatives and mutuals across all industries.

The National Retail Association (NRA) : A not-for-profit organisation that represents the interests of retailers across Australia. Australian Packaging Covenant Organisation (APCO): A not-for-profit organisation leading the development of a circular economy for packaging in Australia.

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KEY EVENTS IN GO VITA’S HISTORY

1987 Go Vita Distributors Limited (GV) listed with ASIC

1999 GV launches NutriVital Supplements

2015 GV expands distribution to all health food stores Australia-wide GV purchases Organic Road brand

2016 GV expands into larger warehouse at Wetherill Park

2019 Company name changes to Go Vita Group Limited(GVGL)

2020 GVGL adopts a new constitution as a Co-Operative

2021 GVGL convertsto a public company limited by shares owned by Co-Operative Members

GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 7

OUR PURPOSE “To provide relevant and innovative products and services which enable our Members to operate successful and sustainable health and wellness businesses.”

OUR VISION “To be the pre-eminent health and wellness group, valued by our customers for our trusted and personalised wellness advice, products and therapies.”

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OUR STRATEGIC PILLARS

1 2 3 4 5 6

Membership We will grow the footprint and quality of the membership base by demonstrating the value of member services and support. Product Portfolio We will have a readily accessible portfolio of products and services that meet the current and emerging needs of our members and their customers. Brand We will have brands that are relevant and recognised as delivering to our customers’ needs. Marketing We will invest wisely in effective marketing activities which drive profitable revenue to our company and members. Financial Performance We will have the funding model and financial performance that ensures returns to members and investment in our ongoing success. Organisation We will have fit-for-purpose organisation assets, resources and capability that enables us to deliver on our strategies.

GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 9

OUR BRANDS

At Go Vita, we have our own range of health supplements that we create, distribute and market under the NutriVital brand name. The NutriVital health supplement range has been available in Australia for around 20 years and is recognised as a premium range of practitioner formulated health supplements. In recent years focus has been put behind expanding this range to ensure it is a significant player in the health supplement space. It is a health food channel exclusive range.

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Go Vita also owns the Organic Road brand of certified organic foods – purchased in 2015, though the brand was established in 2006.

Organic Road products are sourced from leading organic and biodynamic suppliers in Australia and all over the world. While we would love a world where organic food was not a choice but the only option, there are still some high quality products that we have access to that are not available organically in sufficient and sustainable quantities so we introduced the Natural Road brand to provide high quality natural products with no nasties. These ranges also continue to grow and expand with new products.

We recognised a gap in the apple cider vinegar market and launched Cleopatra’s Apple Cider Vinegar in 2018, a certified organic apple cider vinegar produced from fresh New Zealand apples with the “Mother”.

GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 11

CHAIRPERSON’S REPORT “2020–2021 was a challenging year for all of our communities as we navigated a COVID affected world ... despite these challenges, Go Vita Group Ltd continued to reliably deliver products and services to you, its customers, and deliver a reassuring company performance for you, its shareholders.”

We are members of: Complementary Medicines Australia (CMA) - The peak industry body for the complementary medicines industry representing manufacturers, raw material suppliers, distributors, consultants, retailers, allied health professionals and educators. The Business Council of Co-operatives and Mutuals (BCCM) : Australia’s only peak body for co-operatives and mutuals across all industries. The National Retail Association (NRA) : A not-for-profit organisation that represents the interests of retailers across Australia. Australian Packaging Covenant Organisation (APCO): A not-for-profit organisation leading the development of a circular economy for packaging in Australia.

Trish Ridsdale, Chairman

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CHAIRPERSON’S REPORT 2020-21 YEAR IN REVIEW 2 Chairman’s Report 14 Managing Director’s Rep rt 17

Go Vita Woden wins CMA Vince Russell Retailer of the Year 2020

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CHAIRPERSON’S REPORT CHAIRMAN’S REPORT

It is my privilege to provide the first Chairman’s Report in the company’s first Annual Report. 2020–2021 was a challenging year for all of our communities as we navigated a COVID affected world. Our year was characterised

by mounting uncertainties regarding our own health and the health of our families, customers and staff; government decisions regarding lockdowns, border closures and vaccination plans; supply chain issues

“The Board and management team have worked very hard to improve the financial performance of the Company over the past three years, and the 2021 end of year results are a testament to that focus.” Trish Ridsdale, Chairman.

regarding product access and distribution bottle- necks; and, for many of us, the requirement to run the company remotely. Despite these challenges, Go Vita Group Ltd continued to reliably deliver products and services to you, its customers, and deliver a reassuring company performance for you, its shareholders. I will report on the issues affecting you as shareholders of Go Vita and leave it to Clinton Hayes to report on the issues affecting you as customers. Overall Company Performance The Board and management team have worked very hard to improve the financial performance of the Company over the past three years, and the 2021 end of year results are a testament to that focus. The Company produced a net profit before tax and rebates of $1,042,661. Member rebates of $198,587 were paid and $630,991 earnings retained on the balance sheet. As a result of paying down debt and reducing expenses, the company has strong liquidity, good borrowing capacity and the ability to respond to

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CHAIRPERSON’S REPORT CHAIRMAN’S REPORT

people generally about the governance obligations of the Board and enable people considering standing for the Board to be fully informed as to what they are taking on.

short to medium term uncertainties as they may arise. This is the strongest position the Company has been in for many years. Incorporation & Constitution During the year, we converted the company from a public company limited by guarantee to a public company limited by shares and developed a new constitution to reflect this. The incorporation change and new constitution were approved by the members at an EGM held in February 2021. This means that the members of the co-operative can become the owners of the shares of the co-operative and, in the future, have the potential to obtain the benefit of dividends as shareholders in addition to rebates as customers. The new constitution also creates the opportunity to raise equity in the future using MCI’s (Mutual Capital Instruments) while still retaining the characteristics of a co-operative. While there is currently no intention to utilise this provision, the inclusion of it in our constitution enables future Boards and shareholders to consider it as an option. Director Pipeline Project The Board introduced a Director Pipeline Project to engage with members who may have an interest in serving on the Board at some stage in the future, or who simply want to understand in more detail how we do governance at Go Vita. As a Director Educator for the Australian Institute of Company Directors, it was considered appropriate that I run these sessions. The session covered the topics of governance relationships, the responsibilities and liabilities of Directors on a public company board, the functions of the Board, the interface with the management team and the expectations of Directors on the Go Vita board. It is hoped that these sessions will inform

Governance Standards As part of the

governance education of the Go Vita Group as a whole, the Board has developed a Corporate Governance Charter which details how we do governance at Go

Vita. It is available to all shareholders on VitaCloud and explains for the Go Vita Board effectively conducts its functions, how it efficiently conducts its business and explains the policies and practices we have in place to ensure the ethical performance of the Board in its decision-making and in its behaviour. In addition, in this our first annual report, we have included a Corporate Governance Statement which considers our governance practices relative to the BCCM CME Governance Standards. The BCCM is the Business Council of Co-operatives and Mutuals of which Go Vita Group is a member. The BCCM in 2018 developed a set of governance standards appropriate to CME’s (Co-operative and Mutual Enterprises). These have been modelled on the ASX Corporate Governance Principles but nuanced to reflect the special nature of co-operative and mutuals. We work diligently to govern your co-operative professionally and ethically and are keen for all Go Vita shareholders to have a better understanding of how we do that on your behalf.

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CHAIRPERSON’S REPORT CHAIRMAN’S REPORT

While the challenges of our environment may continue throughout this year, one of the things I know to be true is that the power of the co-operative is in working together to achieve results that would not be possible working alone. Now, more than ever before, we must leverage the power of the co-operative, work together and navigate a successful path forward for the Group and its members. Recognition On behalf of the Board, I would like to extend our thanks to all of the Go Vita staff for their dedication, professionalism and diligence throughout the year in very trying circumstances. We are grateful for the excellent leadership that Clinton Hayes and the Executive Team have provided and look forward to working with them in the year ahead. I would also to extend thanks, on behalf of myself and the shareholders, to the Directos on the Go Vita Board. The Member Directors - Simon Becher, John Bylicki, Harry Karabalis and Alison Harris – take time away from their businesses every month to make your businesses more successful. They have diligently and professionally performed their director duties and make decisions in the best interest of the co-operative not their own businesses. They are a credit to member directors. My thanks also to Independent Director, Bob Peterson, who challenges us regularly to not accept the status quo and to think creatively regarding the strategic options available to Go Vita. And finally to our Managing Director, Clinton Hayes, who has delivered significant projects and overall company performance despite the challenging times. It has been my pleasure to serve with you all.

Strategic Framework The Board and management team reviewed the strategic framework of the organisation in February and March to consider whether it was still providing a good platform for us to plan for a sustainable and viable future. We confirmed our support for our current strategies being: Broadening our focus and services to improve Members’ businesses. Refreshing the Go Vita Value Proposition and broadening the communities it serves. Significantly growing and diversifying revenue streams and profit performance for Members and the Group. Embracing purpose, people, planet and profit in our decision making for a sustainable future. Investing in people, technology and digital capability to improve the efficiency and performance of the business. We will continue to update you on our progress throughout the year. 2021-2022 It is clear that the 2021-2022 year is a continuation of uncertainty at scale. The Board and management team will be forensically monitoring the trends and company performance throughout the year and will take corrective action if need be. I would encourage all of you to carefully monitor your own cashflow forecasts as we see how the 2021-2022 year unfolds.

Trish Ridsdale, Chairman 6 October, 2021.

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CHAIRPERSON’S REPORT MANAGING DIRECTO ’S REPORT

“You should never view your challenges as a disadvantage. Instead, it’s important for you to understand that your experience facing and overcoming adversity is actually one of your biggest advantages.” Michelle Obama

definitive management roles and a fit for purpose structure on which to build our future. The relationship between board and management is now clearly defined and enables the business to function in a way that properly protects the viability of the entity, it’s vision and future strategy and the provision of products and services to our Members and the broader health and wellness sector. We have a new structure, a new

What a year! As mentioned in our Chair’s Report, this has certainly been a challenging time both for our businesses and for us all, individually. And whilst the headline quote speaks more broadly to worldwide challenges far more significant than those with which we’ve had to deal, it’s nonetheless been a tough time for many. We’ve had to deal with the uncertainty of COVID and various restrictions on business operations that saw us move very quickly into a strategy of protection for our business

constitution, a new name and a solid basis on which to build our future growth. Both the Board and the Executive Leadership Team (ELT) are working in unity, with the board overseeing the delivery of our Strategic Objectives within the Strategic

operations and most importantly, the consideration of the safety of our team. Despite this and a new way of doing business with much less face to face interaction, we finished the year on a sound footing, declaring a healthy profit for the second year in a row. I want to acknowledge that for some of our Members, the year was

Framework and the ELT executing that strategy through the Business Plan and budget, thoroughly developed by the team and with clearly defined outcomes expected for the Financial Year and beyond. During the year, we sought to increase communication with our Members and undertook programs to demystify some of the work of the board and to be as transparent and engaged as possible with our Member base. This was reflected in the greater number of Member meetings as well as regular communication through EDM’s and our Facebook Community page and the advent of vitabites. We will continue our work in this area to build a more cohesive relationship with our Members.

extremely tough and whilst doing all we could to support them, the vastly changed retail shopping environment, especially in the capital cities, had a profound impact on their viability. One of the most significant aspects of the last twelve months or so is how much Go Vita Group Limited as a business has “grown up”! We have entered a new phase in the development of the business that has seen us evolve from humble beginnings and the forming of a public company to a more mature and professional organisation, with

GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 17

MANAGING DIRECTOR’S REPORT

conditions, and prudent governance by management with oversight by the board ensures we do that. Whilst numbers of Members have remained largely static, Member purchases through the warehouse have shown some decline but we have bolstered this with the broadening of our service to select independent health and wellness businesses. As you can see from the graph, Independent business had grown by the end of the financial year to represent 14.3% of our sales and over $5 million in revenue. It’s also important to note that purchases by Independents generate a higher gross profit as they don’t benefit from the favourable buying price enjoyed by our Members. Overall, we’ve been able to achieve a small 1%

Our results After returning a rebate to Members in 2019-2020 for the first time in 5 years, we were able to deliver an even stronger result in 20-21, exceeding even our own budget numbers. Before taxes and rebate, our profit increased by 3% of the previous years profit. This enabled us to return double the rebate this year

Profit 3%

Rebate $198,587

compared to last year while retaining earnings to ensure we have provision for not only the uncertain economic and retail climate ahead, but to allow us to invest in additional services to support our Members. This aligns with our stated objective over the past few years of shoring up our Balance Sheet, reducing debt and improving liquidity. In times of great volatility and some uncertainty, it’s important that the organisation has the buffer to be able to withstand sudden changes in market

increase in overall revenues compared to 2019-2020 so with better margins and very slightly decreased costs, we were able to achieve an increase in trading profit.

Total Revenue $35,433,743

50,000,000

38,825,942

50,000,000 4 , ,

33,593,064

30,421,935

30,137,015

38,825,942

30,354,393

Member and Non-Member Contribution

40,000,000 30,000,0

33,593,064

30,421,935

30,137,015

30,354,393

30,000,000 2 , ,

20,000,000 1 , ,

5,222,829

3,936,717

3,737,942

5,079,350

744,926

10,000,000 —

5,222,829

3,936,717

3,737,942

744,926 2017

2018

2019

2020

2021

5,079,350

—

Member contribution

Non-Member contribution

2017

2018

2019

2020

2021

Member contribution

Non-Member contribution

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MANAGING DIRECTOR’S REPORT

6,000,000

4,991,269

4,716,447

4,284,172

4,248,881

3,919,050

Private Label Sales

4,000,000

2,000,000

–

2017

2018

2019

2020

2021

Private Label sales, which includes our brands Nutrivital, Organic Road (OR) and Natural Road (NR) and Cleopatra’s have performed well. NutriVital sales 20-21 year versus prior year finished 5% ahead despite unprecedented sales in the March-June 2020 period. Launching new products during 20-21 was not without its challenges with difficulties in securing raw materials, delays in manufacturing, lockdowns and freight delays all pushing out lead times. Despite this we still managed to launch 12 new SKUs – 6 new product SKUs and 6 product SKU formula upgrades. Total sales for NPD represented 6% of sales for 20-21 year. The continuous work on bringing new products to market and refreshing the range, particularly with their better margins, has helped to significantly lift our profit performance. Additionally, after the loss of some major brands from the warehouse this year due to supplier consolidation and diversification into other channels, our buying team have diligently pursued new and unique products to complement our already significant offering.

Sixteen new suppliers have been added to our warehouse generating $500K in revenue, which helps mitigate the drop in revenue from the brands lost to the warehouse. We also consolidated the range and 35 suppliers were reviewed and exited the warehouse. Organic Road and Natural Road ranged 18 new SKU’s generating an additional $200K in revenue. Overall revenue for OR and NR increased by $120K with a decrease in margin due to stores taking advantage of bulk buys.

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MANAGING DIRECTOR’S REPORT

Looking forward Whilst rigorously monitoring our financial position and focussing on continuity of the supply of goods and

services to our Members and customers, we also worked hard on our forward plans. There were a number of initiatives that we were determined to complete or to make a substantial start. Chief amongst those was the delivery of Phase 1 of our e-Comm solution on behalf of the group and, as I write this, we have successfully launched and already achieved strong

“A currently evolving document is the Member Value Proposition, which articulates the suite of services that are offered to the Member/ shareholder and will be made available to Members on a regular basis, summarising the value in their membership of the group.”

results. It was disappointing that we couldn’t “go live” by the end of the Financial Year but the enormity of the challenge just proved a little more than anticipated. The importance to safeguard Members market areas and not cannibalise sales but rather ensure that online sales were an adjunct to Members’ businesses, was one of the complexities that delayed our launch. Some incredible work was done by members of our team and I especially want to thank Sophie Higgins, Ann Cattelan and Aura Chan for their enormous effort in getting us across the line. Kristie Monk was tireless in her work liaising with suppliers and coordinating the product data enhancement and enrichment in our ERP system (JIWA) and Yousaf Saifuddin was instrumental in ensuring that he and his team’s resources were coordinated to assist the project. We’re well on the way with our Retail Refresh journey, a program working with a small group of Go Vita Members to create strategies, utilise data and develop programs designed to focus on the “front end” of our business, the Members Go Vita retail stores. A currently evolving document is the Member Value Proposition, which articulates the suite of services

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MANAGING DIRECTOR’S REPORT

To the Executive Leadership Team - Tim Penney, Sophie Higgins, Ann Cattelan, Greig Shanley, Yousaf Saifuddin with additional input from Leisa Coupar - thank you for your hard work and absolute passion and dedication to delivering for our Members. During the government mandated COVID restrictions and lockdowns, our essential workers at Wetherill Park have done an amazing job, enduring changed conditions of work, COVID tests and other inconvenience but continued on, such is their support and commitment to Go Vita. We salute them.

that are offered to the Member/shareholder and will be made available to Members on a regular basis, summarising the value in their membership of the group. The long and protracted search for a Common POS solution has led us down many paths but throughout the work we’ve done to date, we’ve learnt more and more about Member requirements and the advantages we may be able to bring to each Member and the group as a whole. We are continually striving to bring new and unique products to our Members, both within our Private Label stable and with other suppliers. We have some exciting plans to for the 2021-2022 FY and plan to announce these at Conference in March. From a compliance and governance point of view, together with the board, we have delivered a new constitution, modernising the company, allowing us to grow and develop as a true Cooperative, adhering to the International Co-operative Alliance (ICA) principles. There is still much work to do and many more challenges ahead, which the Board and ELT have recognised in the development of our Strategic Priorities and the subsequent Business Plan and Budget for the year ahead. Before signing off, I’d like to acknowledge two members of the Go Vita family who were lost to us this year. Richard Challinor, a long time member of our warehouse team unfortunately succumbed to illness and John Baker, former Chair and long term director of Go Vita and an industry icon has recently passed. We are indebted for the contribution of these two men to our business and the industry. I’d like the thank the Chair of our Board, Trish Ridsdale for her support and encouragement and together with her calm and reasoned approach has assisted with some of the more difficult challenges we’ve faced this year. Likewise to the other members of the board who have made themselves available to me for counsel and support. Thank you.

The entire Go Vita Group Team, those at Wetherill Park in the warehouse and office, Liz Chan who works so studiously in the background on our TGA compliance matters and Michael McGeorge our NutriVital brand manager, remote in Brisbane, on behalf of the entire group, we thank you for your continued dedication, effort and support of Go Vita. And lastly to all our Members; thank you for your continued support and embrace of the cooperative that is Go Vita.

Clinton Hayes, Managing Director 6 October, 2021.

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CHAIRPERSON’S REPORT “We have entered a new phase in the development of the business that has seen us evolve from humble beginnings and the forming of a public company to a more mature and professional organisation, with definitive

management roles and a fit for purpose structure on which to build our future.”

Clinton Hayes, Managing Director.

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CHAIRPERSON’S REPORT GOVITA EXECUTIVE TEAM 3 The Board of Directors 24 26 The Executive Leade hip Te m

WEAREOPEN FOR ALL YOUR NATURAL PRODUCT NEEDS AND PERSONALISED HEALTH AND WELLNESS ADVICE

Go Vita State Retailers of the Year 2019

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THE BOARD OF DIRECTORS

Patricia (Trish) Ridsdale Chair and Independent Director

Bachelor of Arts | Fellow of the Institute of Company Directors

Trish Ridsdale has been a Company Director for the past 16 years on the Boards of co-operatives, public companies, private companies, statutory authorities and not for profits. She has been a Director Educator for the past 25 years with the Australian Institute of Company Directors (AICD) and is a Fellow of the AICD. She currently serves also on the Board of the Rapid Group Co-operative Ltd and runs a consultancy practice called Board Business which specialises in strategy facilitation, board performance reviews, risk management and executive coaching. Trish is a member of the Audit & Risk Committee. Director since 28 October 2020 | Associate Director since 28 October 2019

Harilaos (Harry) Karabalis BE(Hons), BCom Member Director Harry Karabalis has experience working as a management consultant focusing on strategy and project management. Harry purchased Go Vita Woden (ACT) in 2015 from his parents and in 2019 he opened Go Vita Canberra City (ACT). Harry is a member of the Audit & Risk Committee. Director since 2019

Simon Becher

Alison Harris DipMgt Member Director

Member Director

Simon has held positions with GE Healthcare including the service operations leader for the Asia Pacific region. Simon owns Go Vita Stanhope Gardens (NSW) and Go Vita Windsor (NSW).

Alison has a strong retail background of 32yrs including 16yrs in Pharmacy and 16yrs in Health Food. She is a part owner and manager of both Go Vita Marion (SA) and Go Vita Colonnades (SA) stores and is responsible for keeping the books of account. Married for 24 years, with a daughter and two border collies, her personal hobbies include racing mountain bikes. Alison is a member of the Sustainability Committee. Director since 2017

Simon is the Chair of the Sustainability Committee. Director since October 2017

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THE BOARD OF DIRECTORS

Clinton John Hayes DipFP MAICD Managing Director

John Bylicki DipFinPlan Member Director

Robert (Bob) Peterson MEI (Hons) Independent Director Bob Peterson holds multiple roles as Non-Executive Director / Chair in the broader healthcare sector, across medical clinics, medical devices, pharmacy and many modalities in allied health services, and he is experienced in a number of other retail networks across different industries and sectors. Bob has served on a total of seven additional Go Vita Group Limited Board Sub Committees including most recently Ecommerce and the Company Constitution. Bob serves as Chair/Non-Executive Director on a number of other non-conflicting private companies. Bob is a member of the Sustainability Committee. Director since 28 October 2020 Associate Director since 16 October 2017

Clinton Hayes has substantial retail experience, previously owning retail businesses including Go Vita Coffs Harbour (NSW). He was international Managing Director for an Australian company, responsible for an overseas start-up. He has worked in the banking and financial services industry and is a licensed financial planner and mortgage broker. Clinton is a member of the Australian Institute of Company Directors and is currently completing the Company Directors Course. Former Chairman of the Board, Clinton was appointed as interim CEO in February 2020 and then subsequently as Managing Director in April 2021. Clinton is a member of the Audit & Risk Committee and the Sustainability Committee. Director since 2015

John Bylicki has had an extensive career in banking, insurance and financial planning as a Board Director, senior manager and business owner. He is a current Director of the Complementary Medicines Australia Limited (CMA). Including a Diploma in Financial Planning, John has an All Associate Diploma, Securities Institute of Australia Financial Planning Certificate and UNSW Business School Marketing Financial Services Certificate. John and his wife Linda own Go Vita Stanthorpe (QLD) and Go Vita Warwick (QLD). John is the Chair of the Audit & Risk Committee. Director since 2017

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THE EXECUTIVE LEADERSHIP TEAM

Greig Shanley

Sophie Higgins MBA

Ann Cattelan BSc

National Buyer & Category Manager

General Manager, Retail Operations

Marketing & Communications Manager

Greig Shanley has over 30 years’ experience in the health and wellness industry having owned his own businesses in importing, food manufacturing and retailing. His vast experience in supplier relations, pricing negotiations and product sourcing, including developing his own brand, is invaluable understanding for his current role. He negotiates with over 200 suppliers and has developed Go Vita’s own food brand – Organic/ Natural Road. Greig joined Go Vita over four years ago, though his association with Go Vita spans two decades as a Go Vita Member owning four successful Go Vita health food stores in Northern NSW (which he sold four years ago). During this time, he was a Go Vita Board Director for 13 years, the final year as Deputy Chairman.

Sophie Higgins is a passionate retail professional with over 20 years’ experience in buying,

Ann Cattelan is a complementary healthcare specialist with broad experience spanning 36 years. She’s worked with Go Vita for over 20 years and currently heads up marketing, communications and new product development. With a Science Degree in Biochemistry, and post graduate qualifications in Nutritional and Environmental Medicine and Marketing, Ann has worked in leadership roles in marketing and professional education capacities with a number of natural health brands, including Blackmores. As well as owning her own consulting and publishing business she is a passionate contributor to industry. Ann was awarded the complementary medicine industry’s most prestigious accolade in 2010, the Lady Cilento Award for outstanding contributions and service to industry.

digital, marketing and operations. She started her career with ABC Retail as a buyer before moving to the Dymocks franchise group as Merchandise Manager and performed a number of roles before becoming General Manager in 2018. Having completed her Executive Masters in Business Administration in 2020 at the University of Technology Sydney, she is delighted to have joined the Go Vita team in 2021 as General Manager, Retail Operations. Sophie says – “The nature of the cooperative has been recognised as one of the most resilient and it is wonderful to be able to learn more about Go Vita member businesses, as well as the health and wellness industry more generally”. Sophie looks forward to working with the team to further improve business , member performance and sustainability into the future.

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THE BOARD OF DIRECTORS THE EX CUTIVE LEADERSHIP TEAM

Leisa Coupar

Sarah Roxby

Yousaf Saifuddin

Finance Manager – Human Resources

Membership Services Manager

Supply Chain Manager

Leisa Coupar has worked with Go Vita Group Limited for over 13 years, the past six years in her current role. With a Certificate in Human Resources, Leisa continues to keep up to date in this area with ongoing training courses. She is a qualified book-keeper, who set up her own business from home when her children were young. She also spent 25 years with the ATO in the superannuation section. Leisa was the first recipient of the Go Vita Employee of the Year Award in 2016.

Sarah Roxby joined Go Vita in October 2021. The key purpose of her role is to grow the retail membership presence in the market and improve the uptake and quality of the services provided to Members by Go Vita. Sarah was previously Health Food Channel Manager with Blackmores Group where she worked to champion the creation and implementation of strategy for the Fusion Health brand. She is well known for her ability to nurture long lasting and valued relationships. The Member Services Manager role in FY22 replaces the Business Development Manager role as of October 2021 and we are grateful to Pierre Farrugia for all he has done for membership during his 10 years with Go Vita.

Yousaf Saifuddin graduated in 2010 from RMIT Melbourne, completing a Degree in Aerodynamics and Aviation Management. During this time, he developed a strong passion for logistics and supply chain which led to a career focusing on delivering significantly improved business processes, technology and organisational capability, with companies including Swisse Wellness, Manassen Foods and Jaycar Electronics. Yousaf started work at Go Vita in December 2020, and is keen to ensure Go Vita Members receive the best service, providing the stock they need, when they need it. His current focus is on continuous improvement across supply chain and keeping up to date with technology. He prides himself on the ability to consistently set and achieve ambitious targets within a culture of growth while driving a people first culture across the business.

Tim Penney BCom, CA CFO and Company Secretary

Tim Penney is a qualified Chartered Accountant and has been employed by Go Vita Group Limited for eleven years. Tim has been the company secretary for seven years. Tim has previously held positions with several professional accounting firms and has a degree in Commerce (accounting and finance).

GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 27

XXXXX

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

“After returning a rebate to Members in 2019- 2020 for the first time in 5 years, we were able to deliver an even stronger result in 20-21, exceeding even our own budget numbers. Before taxes and rebate, our profit increased by 3% of the previous years profit.”

Clinton Hayes, Managing Director

I GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 28

XXXX 2020-21 GO VITA GROUP LIMITED

Directors’ Report FINANCIAL REPORT 4 Auditor’s Independence Declaration Corporate Governance Statement

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

30 35 36

Consolidated Statement of Profit and Loss and Comprehensive Income 42 Consolidated Statement of Financial Position 43 Consolidated Statement of Changes in Equity 44 Consolidated Statement of Cash Flows 45 Notes to the Financial Statements 46 Directors’ Declaration 67 Independent Auditor’s Report to the members 68

GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 29

XXXXX DIRECTORS’ REPORT

The Directors of Go Vita Group Limited present their report together with the financial statements of the Consolidated Entity, being Go Vita Group Limited and its controlled entities (the Group) for the year ended 30 June 2021. Director details The following persons were Directors of Go Vita Group Limited during or since the end of the financial year.

Director since 2015

Clinton John Hayes

Managing Director

Director since 2019

Harilaos (Harry) Karabalis

Member Director

Director since 2017

John Bylicki

Member Director

Director since October 2017, resigned 28th October 2020

Aidan Wood

Member Director

Director since October 2017

Alison Harris

Member Director

Director since October 2017

Simon Becher

Member Director

Associate Director since 28 October 2019

Patricia (Trish) Ridsdale

Chair and Independent Director

Director since 28 October 2020

Robert (Bob) Peterson

Independent Director

Refer to page 24 for Board of Director details

Directors’ Meetings The number of meetings of Directors held during the year and the number of meetings attended by each director is as follows:

Audit and Risk Committee Meetings

Sustainability Committee Meetings

Directors’ Meetings

Eligible to attend

Number attended

Eligible to attend

Number attended

Eligible to attend

Number attended

Clinton Hayes

Harilaos Karabalis

John Bylicki

Aidan Wood

Alison Harris

Simon Becher

Patricia Ridsdale

Robert Peterson

I GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 30

XXXX DIRECTORS’ REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021

Directors’ Interests The relevant interest of each Director in the shares of the Company are:

Principal Activities During the year, the principal activities of entities within the GVGL group were to offer to supply Member/ shareholders services from a suite of multi-dimensional services. Members are both customers and shareholders of GVGL. Irrespective of the numbers of shares held, each member/ shareholder has one vote on matters reserved for shareholders. A suite of services are offered to the member/ shareholder and are referred to as the MVP (member value proposition). MVP services include: an experienced national buying & category management team: centrally negotiating on behalf of all member/shareholders to deliver the best possible pricing with maximum flexibility; a national distribution centre (DC) staffed with a dedicated logistics team of supply chain experts offering products from over 200 suppliers across approximately 4,000 SKUs; providing a centralised one-payment service to member/shareholders on the DC products supplied; access to private-label products and other exclusive ranges to the health food channel; support from an experienced multi-channel marketing team to drive customer awareness of the brand nationally and to support local marketing efforts; an e-commerce solution that broadens Go Vita’s brand awareness and customer base and shares profits with the member/shareholders; advice on leasing and shop refit plans as well as liaison with member organisations like the National Retail Association and Complementary Medicines Association on legislative changes (invaluable during the FY21 financial year with the ever-evolving

Member Shares

Clinton Hayes

–

Harilaos Karabalis

200

John Bylicki

200

Aidan Wood

Alison Harris

2,000

Simon Becher

200

Patricia Ridsdale

Robert Peterson

Share options No options over issued shares or interests in the Company were granted during or since the end of the financial year and there were no options outstanding at the date of this report. Dividends and trading rebates There were no dividends paid to shareholders during the financial year. A trading rebate was paid totalling $198,587. Committee Membership As at the date of this report, the Group has an Audit and Risk Committee. Members acting on this committee at the date of this report were: John Bylicki (Chair), Clinton Hayes, Harilaos Karabalis, Patricia Ridsdale and Christopher Mobbs (Chris is a Go Vita Member but not a Director of the Company). As at the date of this report, the Group has a Sustainability Committee. Members acting on this committee at the date of this report were: Simon Becher (Chair), Clinton Hayes, Alison Harris and Robert Peterson.

GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 31

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