Vita Life Sciences Limited · ASX:VLS
Vita Life Sciences — Shareholder Meeting (July 2006)
34 slides from Vita Life Sciences's shareholder meeting presentation, Jul 6, 2006
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING 6 July 2006
Slide 2: Agenda
AGENDA 1. Welcome 2. Reports • Chairman’s introduction • Executive Directors Report 3. Business • Receiving the Resolutions in relation to the meeting 4. Question Time 5. Close 1
Slide 3: Underlying Operating Performance 2005
VITA LIFE SCIENCES Underlying Operating Performance 2005 (AUD $ Million) 2005 2004 2003 2002 Sales from operating activities 21.6 22.8 23.2 14.1 Direct selling and operating expenses (18.6) (19.8) (21.0) (29.0) Profit from operations 3.0 3.0 2.2 (14.9) Legal (1.0) (1.3) (1.3) (2.8) Provisions & writ
Slide 4: Summary of cash flow
VITA LIFE SCIENCES Summary of cash flow 2005 Cash Movement AUD$ Million Cash flow from operations (0.4) Cash flow from financing 1.3 Cash flow from investing (0.3) Movement in 2005 Cash Position 0.6 3
Slide 5: Profit & Loss 2005
VITA LIFE SCIENCES Profit & Loss 2005 (AUD$ Million) Cyclopharm VitaHealth Corporate VLS Gross Sales 8.8 12.8 0.0 21.6 EBITDA 2.7 (0.8) 0.6 2.5 Audited PBT 2.3 (1.4) (1.1) (0.2) 4
Slide 6: Announcement – New COO & Director of Science
CYCLOPHARM Announcement – New COO & Director of Science • We can announce that Dr Nabil Morcos will join Cyclopharm as Chief Operating Officer and Director of Science • Dr Morcos has – B.A in Chemistry and Mathematics from Andrews University in the USA and – Ph.D Nuclear Chemistry / Radiochemistry,
Slide 7: Announcement – New COO and Director of Science
CYCLOPHARM Announcement – New COO and Director of Science Dr Morcos was the former head of Radiopharmaceutical Research at ANSTO and is – a world expert in the production of radioactive isotopes and nuclear medicine – credited with being the author / inventor of several patents – has published more
Slide 8: Announcement - New business initiative
CYCLOPHARM Announcement - New business initiative • Cyclopharm will enter into the field of Molecular Imaging and the production of radioactive isotopes • Cyclopharm has entered into a HOA to license new Technology from Cyclopharma and Thallis – first new Cyclotron developed in many years and we bel
Slide 9: Announcement - New business initiative
CYCLOPHARM Announcement - New business initiative • Cyclopharm aims to be a leading company within Nuclear Medicine • In doing so, Cyclopharm will become – a world class radiopharmaceutical company with a suite of proprietary products – its Molecular Imaging division will be responsible for the prod
Slide 10: Announcement – Corporate restructure
CYCLOPHARM Announcement – Corporate restructure • Corporate restructure completed • Offer to convert VLS Notes into Cyclopharm shares closed approximately three times oversubscribed • 28.6 million shares in Cyclopharm were issued to Note holders at an average price of $0.21 cents • Cyclopharm has 10
Slide 11: Industry Outlook - Nuclear Medicine
CYCLOPHARM Industry Outlook - Nuclear Medicine Experiencing strong growth world wide as new technologies and applications are introduced. PET Imaging is the growth sector - strong growth in USA and France - emerging growth in Australia, Europe and UK 10 Cyclopharm Limited
Slide 12: Industry Outlook of Nuclear Medicine
CYCLOPHARM Industry Outlook of Nuclear Medicine The growth potential for Cyclopharm’s two business units, Molecular Imaging and Technegas, is reflected in the level of professional interest in their respective radiopharmaceutical sub-sectors: • Medical publications written on: • Technegas averages 1
Slide 13: Molecular Imaging
CYCLOPHARM – Molecular Imaging What are PET Radiopharmaceuticals? PET radiopharmaceuticals are difficult to produce and have a short half life, eg FDG 110 minutes. They require just in time delivery to staff PET radiopharmaceuticals indications – FDG - cancer tumours – Fluoro Chlorine - prostate can
Slide 14: Industry Outlook – Radiopharmaceuticals in Australia
CYCLOPHARM Industry Outlook – Radiopharmaceuticals in Australia The market for FDG and other PET Radiopharmaceuticals is poised for 5 – 7 years of exponential growth. Australian Government is cautiously accepting PET for the diagnosis and monitoring of cancer. – 18 - 20 PET Cameras to be installed b
Slide 15: Molecular Imaging – components of a central pharmacy
CYCLOPHARM Molecular Imaging – components of a central pharmacy Cyclopharm has entered into a Heads of Agreement to license sophisticated proprietary hardware to facilitate high volume dose production, ie up to 100 doses per day. Cyclotron Synthesiser Dispenser 14 Cyclopharm Limited
Slide 16: Industry Structure
CYCLOPHARM Industry Structure Cyclopharm Ltd 100% 100% Technegas Molecular Radiopharma (World) Imaging Drugs (Australia/Asia) Licensed from Cyclopharma SA France Nano- Customer Central Pharmacies particulates Melanoma Nuclear FDG Technegas MAA Medicine Fluoro Chlorine ThromboTrace Others Departments
Slide 17: Outlook - Technegas
CYCLOPHARM Outlook - Technegas • New Technegas Plus launched in fourth quarter 2005 • Scientific advisory board establishment in process • Strong pre orders for Technegas Plus (30 already delivered) • New software being developed by leading software house to increase market acceptance of Technegas •
Slide 18: Outlook - Technegas
CYCLOPHARM Outlook - Technegas • Strong growth budgeted for 2006 – refurbished generators • Aggressive strategy to place refurbished generators in UK and Germany • Strong cash flow expected • Outlook is very positive 17 Cyclopharm Limited
Slide 19: Underlying Performance 2005
CYCLOPHARM Underlying Performance 2005 (AUD$ Million) 2003 2004 2005 Sales 7.7 8.7 8.8 PBIT 1.8 2.8 2.4 Generator Sales & Placements PAS Unit Sales 120 3500 3000 100 2500 80 Forecast 2000 Forecast 60 Actual 1500 Actual 40 1000 20 500 0 0 2003 2004 2005 2006 2003 2004 2005 2006 18 Cyclopharm Limited
Slide 20: Underlying Performance 2005
CYCLOPHARM Underlying Performance 2005 • Revenue is up • Growth in new markets – China and Canada – Canadian PAS growth is 65%, and China PAS growth is 33% (yoy) • Operating costs down yoy • Total costs are up due to one off expenses e.g. investment in NDA (written off), new tooling and renewal of p
Slide 21: Technegas Plus
CYCLOPHARM Technegas Plus 20 Cyclopharm Limited
Slide 22: Pro forma group structure
CYCLOPHARM Pro forma group structure 21 Cyclopharm Limited
Slide 23: New Drug Application
CYCLOPHARM New Drug Application • Commenced the trials in December 2005. • 3 Canadian hospitals signed up – Toronto General, Memorial University, CDHA Halifax • 1 Australian hospital signed to perform additional studies • Program expected for completion in 2006 early 2007 – Depends on patient collec
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Slide 25: Vita Health Announcement
Vita Health Announcement We are pleased to announce that for the first time in many years, Vita Health has recorded 4 consecutive quarters of profits (July 05 to June 06). 24
Slide 26: Vita Health Highlights 2005
Vita Health Highlights 2005 Singapore market continues to improve • Initiatives in Malaysia beginning to show returns • Heavy investment and focus on Australia, to make Herbs of Gold a leading player in the Australian market • Significant investment into new product development in all markets • 49 n
Slide 27: Vita Health Highlights 2005
Vita Health Highlights 2005 Overall result an improvement on 2004 • Sales slightly down on last year – deliberate review of trading partners • Operating costs lower than 2004 • Complete review of every product in every country by margin and market share completed • Vita Health continues to face chal
Slide 28: Initiative to improve business going forward
Vita Health Initiative to improve business going forward • Improve supply chain and inventory lifecycle • Aggressively recruit product development team • New sets of Standard Group Operating Policies and Procedures – implemented. • Diversify from traditional distribution channels • Set up direct sal
Slide 29: The future focus
Vita Health The future focus • Rebuilding our brand • Introducing new products • Opening new markets – Thailand, • Changes to our business model • Aggressive negotiations with trading partners • New distribution channels • Heavy investment in product development • Two new business initiatives well u
Slide 30: Underlying Operating Performance 2005
Vita Health Underlying Operating Performance 2005 (AUD $ 000) 2005 2004 2003 Sales Malaysia 3.9 5.7 6.0 Singapore 3.2 4.4 5.1 Australia 5.7 4.9 4.4 12.8 15.0 15.5 Direct selling costs (9.2) (10.6) (9.5) Operating expenses (5.0) (6.6) (11.9) Profit before tax (1.4) (2.0) (5.9) 29
Slide 31: Legal update
VITA LIFE SCIENCES Legal update • The company continues to defend its position re Nordion, case heard in May, decision expected in September / October 2006 • The company settled with Kate Fraser • The company continues its suit against Arthur Anderson • Legal actions substantially cleaned up. • TIME
Slide 32: Unsecured Convertible Notes - Update
VITA LIFE SCIENCES Unsecured Convertible Notes - Update • 19.2 million Notes on issue at April 2006 • 17.6 million Notes applied for conversion into Cyclopharm shares (approximately 3 times oversubscribed) • 6.0 million Notes were converted into 28.6 million Cyclopharm shares • 0.52 million Notes we
Slide 33: Questions
| VITA LIFE SCIENCES Questions
Slide 34: Thank You
| VITA LIFE SCIENCES Thank You