Slide 1: FY 2012 Results
For personal use only FY 2012 Results 19 September 2012
Slide 2: New Growth Horizons
NEW GROWTH HORIZONS For personal use only • Strategic vision & business description • 2012 financial performance • Operational review • Clover‟s competitive strengths • New growth horizons • Outlook & priorities 2
Slide 3: Strategic Vision
STRATEGIC VISION For personal use only 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 encapsulat
Slide 4: Business Description
BUSINESS DESCRIPTION For personal use only • Focus on two business units: – Clover Corporation focuses on innovation & obtaining the optimal return from proprietary technology – Nu-Mega Ingredients commercialises proprietary ingredient delivery and encapsulation technology in targeted value added ma
Slide 5: Overview of Nu-Mega Products
OVERVIEW OF NU-MEGA PRODUCTS For personal use only Maximize the use of proprietary bioactive delivery technology Tuna oil Algal & other oils Other bioactives Refine Purchase from various sources Emulsion Tuna oil Microencapsulated Powders 5
Slide 6: Clover FY2012 Results
CLOVER FY2012 RESULTS For personal use only year ended 31 July 2012 AUD million 4E Reported 4E Normalised* PCP 4E Reported# 31 July 2012 31 July 2012 1 Aug‟10 – 31 Jul „11 31 July 2011 Revenue $38.4 $38.4 $32.0 $35.6 Profit before tax $6.4 $7.4 $5.2 $6.1 Depreciation/Amort ($0.51) ($0.51) ($0.36) ($
Slide 7: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE For personal use only FP2011 (13 AUD million FY2012 FY2010 FY2009 FY2008 FY2007 months) Shares on issue 165.2 m 165.2 m 165.2 m 165.2 m 165.2 m 165.2 m Total contributed $29.9 $32.9 $32.9 $28.3 $27.0 $23.7 equity Cash total $9.7 $7.4 $12.2 $9.2 $10.8 $11.0 Sales Reve
Slide 8: Cash Flow
CASH FLOW Year ended 31 July 2012 For personal use only AUD million Reported From Continuing Ops 31 July 2012 EBITDA 6.7 Working Capital Movement 3.4 Net Interest 0.3 Tax Paid (2.4) Cash Flow from Operations 8.0 Financing Activities (3.8) Capex (1.9) Free Cash Flow 6.1 Net Increase in Cash Held 9.7
Slide 9: Balance Sheet
BALANCE SHEET For personal use only Year ended 31 July 2012 AUD million Reported Reported Change % 31 July 2012 31 July 2011 Cash 9.7 7.4 +31% Trade Receivables 9.7 10.5 -9% Inventories 12.3 8.7 +41% Total Current Assets 31.8 27.1 +17% PPE/Intangible Assets 5.5 4.1 +34% Total Assets 38.6 32.3 +20% T
Slide 10: FY2012 Highlights – Strong Underlying Growth
FY2012 HIGHLIGHTS – STRONG For personal use only UNDERLYING GROWTH • Strong growth in organic sales revenue (20.7% normalized pcp). • Focus on infant formula & children applications (2012: 97.4%). • Continued expansion of sales in Oceania and Asia. • Increase in proportion of sales from high value e
Slide 11: Continued Focus on Growth Markets & Value Added Products
CONTINUED FOCUS ON GROWTH MARKETS & VALUE ADDED PRODUCTS For personal use only FY2012 Geographic • Sales revenue increased in all regions with the strongest performance in Australia/New Zealand 26% Australia/New Zealand and Asia. Asia 64% • Focus has been on infant formula & children‟s food applicat
Slide 12: Multiple Growth Drivers & Delivery
MULTIPLE GROWTH DRIVERS & DELIVERY For personal use only • Maintaining a position at the forefront of Product mix in FY2012 technical development for bioactive delivery and encapsulation technology – 2 patent applications filed in FY2012 • Working with our customers to develop & provide market relev
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 FY2012 marine oil, algal oils, other specialty oils and important micronutrients. • E
Slide 14: Competitive Strengths – A Culture of Commercial Innovation
COMPETITIVE STRENGTHS – A CULTURE OF COMMERCIAL INNOVATION For personal use only • Clover‟s core strengths; – Growing share in value added markets – Proprietary & patented technology – Commercial focus with high returns on R&D – High quality products & excellent reputation with clients – Dedicated a
Slide 15: Research & Development Expenditure
RESEARCH & DEVELOPMENT EXPENDITURE (EXPENSED IN YEAR OF ACTIVITY) For personal use only million ($) 2.00 * 1.50 1.00 0.50 0.00 FY07 FY08 FY09 FY10 FP11 FY12 R&D Expenditure * FP11 represents 13 months 15
Slide 16: Example of Product Life Cycle
EXAMPLE OF PRODUCT LIFE CYCLE personal use only Continual product improvement to increase sales Increased sales Development Introduction Growth Maturity Decline 2005 Replacement Encap. 50% oil Apply Infant Formula 2011 2001 Final shipment Apply in Infant Customer changes to ForSales 1999 Formula imp
Slide 17: Innovation Leads to New Products & Revenues
INNOVATION LEADS TO NEW PRODUCTS & REVENUES For personal use only Company Form Bioactive rights Application TECH 1 (OWNED) ENCAPSULATION Omega 3 lipids Infant formula # Carbohydrate based encapsulation system for foods. Infant formula / TECH 2 (LICENSED) ENCAPSULATION Omega 3 &/or 6 lipids Functiona
Slide 18: Sponsored Research in 2012
SPONSORED RESEARCH IN 2012 For personal use only 18 18
Slide 19: New Growth Horizons
NEW GROWTH HORIZONS For personal use only • 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. • Develop medical food opportunities – products
Slide 20: FY2013 Outlook & Priorities
FY2013 OUTLOOK & PRIORITIES For personal use only • Outlook is promising for FY2013 following the good performance in FY2012 . • Continued organic growth with emphasis on Oceania, Asia and the Americas. • Initial sales from products provided for customer evaluation in 2011. • Advance the innovation
Slide 21: Thank You
For personal use only THANK YOU Questions? 21
Slide 22: Disclaimer
DISCLAIMER For personal use only 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