Clover Corporation Limited · ASX:CLV
Clover — Shareholder Meeting (November 2012)
25 slides from Clover's shareholder meeting presentation, Nov 30, 2012
Slide 1: Chairman's Address 2012
For personal use only CLOVER CORPORATION LIMITED Chairman’s Address 2012 The 2012 financial year has seen significant value added for Clover Corporation Limited (“Clover”), its staff, customers and shareholders. Clover has reported a net profit after tax for the 12 months ended 31st July 2012 of $4.
Slide 2: Chairman's Address (continued): sales and strategy
For personal use only Sales revenue for 2012 was $38.4m, compared to $35.6m reported in the previous year, an increase of 7.9%. Adjusting for the extra month of trading in 2011, sales increased by 20%. Consistent with what we have outlined to shareholders before, the company’s strategy in our core b
Slide 3: Chairman's Address (continued): cash flow and industry
For personal use only in Europe and the USA which has delayed, in some cases, the launch of new products which carry our ingredients. However the company’s innovation program and customer evaluation of new products continues, creating a platform for future growth. The usual customer approval process
Slide 4: Chairman's Address: conclusion
For personal use only In conclusion, Clover’s core business of delivering bioactive ingredients using proprietary encapsulation technology is in good shape. The outlook for 2013 is promising following the solid performance in 2012. We will continue to focus on growth markets and new value add applic
Slide 5: Managing Director Report for AGM November 2012
For personal use only Managing Director Report for AGM 30 November 2012
Slide 6: 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
Slide 7: Managing for Growth
For personal use only MANAGING FOR GROWTH • Who is Clover • What Wh t h happened d in i the th pastt year • Clover’s competitive position and challenges • Clover’s strategy – Focus on the core business – Developments in medical foods • FY2013 – the year so far 3
Slide 8: 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” & medical markets • Develop and commercialise leading edge proprietary and patented delivery technologies includi
Slide 9: 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 10: Key Company Developments
KEY COMPANY DEVELOPMENTS For personal use only 2012- • Building business plan for medical related 2007-2012 opportunities arising from core • Nu-Mega Ingredients 100% competencies subsidiary of Clover Corp. • Enters Phase 3 preterm • 2008 - New Innovation & infant formula trial – Sales facility in B
Slide 11: 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 Refine Purchase from various sources Medical & infant Emulsion formulations Tuna oil Infant formula, functional Microencapsulated foods & Po
Slide 12: Clover FY2012 Results
CLOVER FY2012 RESULTS For personal use only year ended 31 July 2012 AUD million Year Ended Normalised* Unaudited 13 Months Ended # 31 July 2012 31 July 2012 1 Aug’10 – 31 Jul ’11 31 July 2011 Revenue ($m) $38.4 $38.4 $32.0 $35.6 Profit before tax ($m) $6.4 $7.6 $5.2 $6.1 Depreciation/Amort ($m) ($0.
Slide 13: Historical Financial Performance
HISTORICAL FINANCIAL For personal use only PERFORMANCE FP2011 AUD million FY2012 FY2010 FY2009 FY2008 FY2007 (13 months) Shares on issue (m) 165.2 165.2 165.2 165.2 165.2 165.2 Total contributed equity $29.9 $28.1 $25.6 $28.3 $27.0 $23.7 ($m) Cash total ($m) $9.7 $7.4 $12.2 $9.2 $10.8 $11.0 Sales Re
Slide 14: Historical Sales Revenue Performance FY2008 to FY2012
HISTORICAL SALES REVENUE PERFORMANCE FY2008 to t FY2012 For personal use only CAGR since ASX listing = 13.9% p.a.# million ($) 40 30 20 10 0 FY08 FY09 FY10 FP11* FY12 Sales Revenue # Source: Pitt Capital Partners Limited * 13 month period 10
Slide 15: FY2012 Highlights – Strong Underlying Growth
FY2012 HIGHLIGHTS – For personal use only STRONG UNDERLYING GROWTH • Strong growth in organic sales revenue (20.7% normalized PCP). • Focus on infant formula & children applications (97% of total sales). • Continued expansion of sales in Oceania and Asia. • Increase in proportion of sales from high
Slide 16: Continued Focus on Growth Markets & Value Added Products
CONTINUED FOCUS ON GROWTH MARKETS & VALUE ADDED For personal use only PRODUCTS FY2012 Geographic • Sales revenue increased in all regions with the strongest performances during Oceania 26% th year in the i Oceania O i andd Asia. A i Asia 64% • Focus has been on infant formula & children’s food appli
Slide 17: 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 oil, algal oils, oils other specialty oils and important micronutri
Slide 18: 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 • Product first sales in 2010 achieved $6.5 million sales in FY12. – Hi
Slide 19: Research & Development Expenditure
RESEARCH & DEVELOPMENT EXPENDITURE For personal use only (EXPENSED IN YEAR OF ACTIVITY) million ($) 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 20: Focus on the Growth of the Core Business
FOCUS ON THE GROWTH OF THE CORE BUSINESS For personal use only Core business: • 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. • Currently
Slide 21: The Opportunities for Medical Applications
THE OPPORTUNITIES FOR MEDICAL APPLICATIONS For personal use only Medical & Pharmaceutical applications: • Clover has supported pp strategic g clinical studies for many y years y and this assists in identifying new commercial opportunities. • Medical issues that affect preterm infants include: – Cogn
Slide 22: Preterm Infant Formulation
PRETERM INFANT FORMULATION For personal use only • Clover developed a specialty formulation for hospital use: – Licence agreements signed & patent applications filed. – Finalised formulation and manufacturing requirements. – Successful clinical testing of the formulation and delivery system. – Produ
Slide 23: Sales Revenue Growth of +5.9% in the First Months of FY2013
SALES REVENUE GROWTH OF +5.9% 5.9% IN For personal use only THE FIRST 3 MONTHS OF FY2013 million ($) Unaudited management results Sales Revenue Sales revenue from August August, September & October 19
Slide 24: FY2013 Outlook & Priorities
For personal use only FY2013 OUTLOOK & PRIORITIES • Modest revenue growth in first half of FY2013. • Continued organic growth with the emphasis on Oceania & Asia including China. • Initial sales from products provided for customer evaluation in 2011. – Customer approval pp of new products p can take
Slide 25: Thank You – Questions?
For personal use only THANK YOU Questions? 21