Clover Corporation Limited · ASX:CLV
Clover — Select Equities doing business in China (October 2019)
19 slides from Clover's conference presentation, Oct 31, 2019
Slide 1: Clover Corporation Limited – Select Equities doing business in China
For personal use only Clover Corporation Limited 31 October & 1 November 2019 Peter Davey- CEO & Managing Director presentation Select Equities doing business in China 1
Slide 2: Vision and Mission Statement
Vision and Mission Statement For personal use only Vision To optimise the health and development of adults, infants and children. Mission To deliver science based bioactives which provide health benefits to adults, infants and children. 2
Slide 3: Clover 2017-19 Average Daily Trading Price
Clover 2017-19 For personal use only Ave r a g e d a i l y t r a d i n g p r i c e A S X : CLV Average Daily Clover Corporation Share price January 2, 2017 to October 21, 2019 Select Equities doing business in China 31 October & 1 November 2019 3
Slide 4: Omega Ingredients Value Chain
Omega Ingredients Value Chain For personal use only Omega 3 – EPA / DHA Omega 6 - ARA Product source Fish Single Cell Other Marine Crude processors Market Participants Refiners Clover primarily operates in this sector of the supply chain Encapsulation Sales and distribution Applications / Markets Di
Slide 5: Encapsulation Technology
Encapsulation Technology For personal use only ▪ Patented Microencapsulation Technology with best in class application performance: ‒ Protection against oxidation and provides superior sensory stability ‒ Suitable for a wide range of food applications ‒ Benefits of non-refrigerated storage with a sh
Slide 6: Overview of Melody Dairies investment
Overview of Melody Dairies investment For personal use only What is it? Melody Dairies is a separate company that is building and operate a nutritional spray dryer in Hamilton, New Zealand (NZ) Hamilton The Rationale Clover manufactures its nutritional powders on spray dryers The company has i
Slide 7: Overview of Melody Dairies investment cont.
Overview of Melody Dairies For personal use only investment cont. Solution and results Melody Dairies will be owned by four partners who will also have access to the dryer’s capacity equivalent to their share of the business The dryer has a capacity of 1.2 metric tonnes Melody Dairies Ownership
Slide 8: China IF Market Update
China IF Market Update For personal use only Market changes Outcomes for Clover ▪ Slowing of SAMR registrations for ▪ Clover’s customers are waiting for audits, International brands to sell in China the SAMR License allows sale through the retail channel ▪ Consumers preference for non-China ▪ Clover
Slide 9: Financial Review 2015-2019
Financial Review- 2015-2019 For personal use only Revenue (A$) ▪ Clover has experienced significant revenue growth since 2015, complemented by improved profitability providing an increased Return On Equity ▪ The infant formula sector has continued to rally with little change in Chinese regulations a
Slide 10: Total Dividend Paid FY'15-19
Total Dividend Paid FY’15-19 For personal use only ▪ Clover has consistently increased its total dividend payout to shareholders in line with growth in profitability Select Equities doing business in China 31 October & 1 November 2019 10
Slide 11: Full Year Performance Highlights
Full Year Performance Highlights For personal use only ✓Total full year Revenue ✓New products delivering growth in new segments $76.7m up 22% and countries on FY18 $62.9m driven by improved demand ✓Inventory at $27.7m up $7.9m on FY18 full year ✓Net Profit $10.1m up 33.1% on FY18 ✓EBITDA covers net
Slide 12: Full Year Results
Full Year 2018 Results For personal use only AUD million 4E Reported 4E Reported 22% year on year revenue 31 Jul 2019 31 Jul 2018 growth Revenue $76.7 $62.9 High growth rates in Asia, EU EBITDA $14.0 $10.9 & USA, whilst Australia/NZ still key sales region NPBT $14.0 $10.6 Tax ($3.9) ($3.0) EBI
Slide 13: Balance Sheet July 2019
Balance Sheet 31 July 2019 For personal use only AUD million Reported Reported Movement 31 Jul 2019 31 Jul 2018 Cash $8.3 $7.9 +$0.4m Net debt of $5.2m as compares to Trade Receivables $18.4 $15.3 +$3.1m EBITDA of $14.0m Inventories $27.7 $19.8 +$7.9m Total Current $55.4 $43.6 +$11.8m Trade rece
Slide 14: Sales by Geography & Product
Sales by Geography & Product For personal use only Sales across all key regions have grown during FY19 compared to FY18 Asia key growth area for IF for the Chinese market, whilst USA growth in non IF sector FY 2019 Product F Y 2 0 1 82018 Product Other Products, 30% Tuna Powder, 70% Encapsulat
Slide 15: An Update on Growth Platforms
An Update on Growth Platforms For personal use only Focus on Infant Formula New New Product Market Development Development Select Equities doing business in China 31 October & 1 November 2019 15
Slide 16: Growth Platform: New Product Development
Growth Platform For personal use only New products driving future growth Clover’s new products have won new business in food fortification across different segments The highly concentrated DHA powder delivering a 60% oil loading is used across health bars, powders and gummies Clover has releas
Slide 17: Growth Platform: New Markets Development
Growth Platform For personal use only New markets development Clover has grown sales in USA, Europe, Asia and ANZ The USA has delivered sales growth across food, drink and nutraceutical applications Clover has sales staff across Europe, China, New Zealand and dedicated staff for SE Asia and Au
Slide 18: 1HFY20 Outlook & Priorities
1HFY20 Outlook & Priorities For personal use only Growth in European markets driven by the requirement to increase DHA levels in infant formula Build completion of spray drying facility in Hamilton, New Zealand Development of new products targeting sports nutrition, children’s and seniors’ hea
Slide 19: 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
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