Slide 1: FY 2013 Results
For personal use only FY 2013 Results Res lts 18 September 2013
Slide 2: Delivering on Expectations
For personal use only DELIVERING ON EXPECTATIONS • Strategic vision & business description • 2013 financial performance • Operational review • p Clover’s competitive strengths g • Research & Development • Priorities • FY2014 Outlook 2
Slide 3: Strategic Vision
For personal use only STRATEGIC VISION Clover Corporation seeks to: • Identify, develop and commercialise speciality functional and nutritional ingredients in the growing nutraceutical market • Develop and commercialise leading edge proprietary and patented delivery technology including encapsulatio
Slide 4: Company Description
For personal use only COMPANY DESCRIPTION • Focus on two business units: – Clover Corporation focuses on innovation, obtaining the optimal return from proprietary technology and developing new business opportunities – Nu-Mega Ingredients (100% owned subsidiary) commercialises proprietary ingredient
Slide 5: Overview of Nu-Mega Operations
OVERVIEW OF NU-MEGA OPERATIONS For personal use only Maximize the use of proprietary bioactive delivery technology Algal & Tuna oil Other bioactives other oils Purchase from various sources Refine Medical & infant Emulsion formulations Tuna oil Infant formula, functional Microencapsulated foods & Po
Slide 6: Clover FY2013 Results
CLOVER FY2013 RESULTS For personal use only year ended 31 July 2013 AUD million 4E Reported 4E Normalised* 4E Reported PCP 31 July 2013 31 July 2012 31 July 2012 1 Aug’10 – 31 Jul ‘11 Revenue $44.1 $38.4 $38.4 $32.0 Profit before tax $8.5 $7.4 $6.4 $5.2 Depreciation/Amort ($0.50) ($0.51) ($0.51) ($0
Slide 7: Clover Results for the Past Half Years
CLOVER RESULTS For personal use only for the past 4 half years AUD million 1 February 2013 to 1 August 2012 to 31 1 February 2012 to 1 August 2011 to 31 31 July 2013 January 2013 31 July 2012 January 2012 Revenue $23.9 $20.2 $20.5 $17.9 Cost of Goods Sold ($15 9) ($15.9) ($12 7) ($12.7) ($12 6) ($12
Slide 8: Historical Financial Performance
HISTORICAL FINANCIAL For personal use only PERFORMANCE FP2011 AUD million FY2013 FY2012 FY2010 FY2009 FY2008 FY2007 (13 months) Shares on issue 165.2 m 165.2 m 165.2 m 165.2 m 165.2 m 165.2 m 165.2 m Total contributed $32.4 $29.9 $32.9 $32.9 $28.3 $27.0 $23.7 equity Net cash total $8.3 $9.7 $7.4 $12
Slide 9: Cash Flow
CASH FLOW For personal use only Year ended 31 July 2013 AUD million Reported Notes From Continuing Ops 31 July 2013 EBITDA 8.8 Working Capital Movement (4.1) Increased inventory including for raw material evaluation and approval. Net Interest 0.2 Tax Paid (2.1) Cash Flow from Operations 2.8 Financin
Slide 10: Balance Sheet
BALANCE SHEET For personal use only Year ended 31 July 2013 AUD million Reported Reported Movement 31 July 2013 31 July 2012 Cash 8.3 9.7 (1.4) Trade Receivables 12.0 9.7 2.3 Inventories 14.0 12.3 1.7 Total Current Assets 34.7 31.8 2.9 PPE/Intangible Assets 5.3 5.5 (0.2) Total Assets 41.5 38.6 2.9 T
Slide 11: FY2013 Operational Review – Delivering on Expectations
FY2013 OPERATIONAL REVIEW – For personal use only DELIVERING ON EXPECTATIONS • Strong growth in organic sales revenue (+14.9% from 2012). • Focus on higher value infant formula & children applications (2013: 98%). • C ti Continued d expansion i off sales l ini Oceania O i (2013: (2013 +67%). 67%) •
Slide 12: Continued Focus on Growth Markets & Value Added Products
CONTINUED FOCUS ON GROWTH MARKETS & VALUE ADDED For personal use only PRODUCTS Geographic sales by revenue • Sales revenue increased with the strongest performance in Oceania. FY2013 FY2012 • Focus has been on infant formula, Oceania 38% 26% follow-on formula, growing-up-milks and special diets in s
Slide 13: Delivery Systems Based on a Variety of Nutritional Bioactives
DELIVERY SYSTEMS BASED ON A VARIETY OF NUTRITIONAL BIOACTIVES For personal use only • Product portfolio includes refined tuna Sales Revenue based on oil and encapsulated powders containing Diversified Bioactives in FY2013 marine oil oil, algal oils, oils other specialty oils and important micronutri
Slide 14: Competitive Strengths – A Culture of Commercial Innovation
COMPETITIVE STRENGTHS – A CULTURE OF COMMERCIAL INNOVATION For personal use only • Clover’s core strengths; – Focus on value added markets – Proprietary & patented technology – C Commercial i l focus f on innovation i ti program – High quality differentiated products – Excellent reputation with clie
Slide 15: Research & Development Expenditure
RESEARCH & DEVELOPMENT EXPENDITURE For personal use only (FULLY EXPENSED IN YEAR OF ACTIVITY) million ($) 3.50 # 3 00 3.00 2.50 2.00 1.50 * 1.00 0.50 0.00 FY09 FY10 FP11 FY12 FY13 FY14 R&D Expenditure * FP11 represents 13 months # FY14 Budget estimate 15
Slide 16: Sponsored Research in 2008 - 2013
SPONSORED RESEARCH For personal use only IN 2008 - 2013 16 16
Slide 17: Priorities
For personal use only PRIORITIES • Continued focus on the infant formula and children’s food market. – Specialist delivery systems. – Targeted multiple bioactive delivery systems. – Improved bioactive protection. – Provision of improved value. • Focus 1: Focus on expanding the sales of existing prod
Slide 18: FY2014 Outlook
For personal use only FY2014 OUTLOOK • Outlook for sales is challenging due to: – Reduction in infant formula sales resulting from the milk powder contamination i id t in incident i New N Zealand Z l d ini August A t 2013. 2013 – Consolidation of the infant formula market in China. – Continued press
Slide 19: Thank You
For personal use only THANK YOU Questions? 19
Slide 20: Disclaimer
For personal use only DISCLAIMER The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe s