Slide 1: Investor Presentation
For personal use only Investor Presentation 26 March 2014
Slide 2: Progress FH FY2014
For personal use only PROGRESS FH FY2014 • Who is Clover • Historical performance • Progress of the business in FY2014 • g Progress on business development p in FY2014 • What happened in 1H FY2014 • Clover’s competitive strength • Clover’s priorities – Focus on the core business & new product pipeli
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 & medical markets • Develop and commercialise leading edge proprietary and patented delivery technologies including
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: Historical Financial Performance
HISTORICAL FINANCIAL For personal use only PERFORMANCE FP2011 AUD million FY2013 FY2012 FY2010 # FY2009 FY2008 FY2007 (13 months) Shares on issue (m) 165.2 165.2 165.2 165.2 165.2 165.2 165.2 Total contributed $32.4 $29.9 $28.1 $25.6 $28.3 $27.0 $23.7 equity ($m) Cash total ($m) $8.3 $9.7 $7.4 $12.2
Slide 6: Historical Performance
HISTORICAL PERFORMANCE For personal use only First Half Financial Year (as reported) Period end Period end Period end Period end Period end Period end AUD $ million 31/1/14 31/1/13 31/1/12 * 31/12/10 31/12/09 31/12/08 Sales Revenue $14.9 $20.2 $17.9 $14.0 $16.4 $9.1 Cash total $8.7 $9.7 $7.1 $9.2 $8
Slide 7: Progress of the Business in FY2014
PROGRESS OF THE BUSINESS IN For personal use only FY2014 Focus areas Status Comment Decrease in sales revenue due to 26.3% pcp decrease in first half No loss of customers. Fonterra incident sales Speed of recovery dependent on customer performance. Potential for 20% - 40% decrease in sales revenue f
Slide 8: Progress on Business Development in FY2014
PROGRESS ON BUSINESS For personal use only DEVELOPMENT IN FY2014 Focus areas Status Comment Geographic expansion of Increased in the America’s by +96% pcp Canadian novel food approval, sales and in Europe +21% pcp. pcp developing opportunities in Central & South America and Europe. Distribution agre
Slide 9: Clover Half Year FY2014 Financial Results
CLOVER HALF YEAR FY2014 For personal use only FINANCIAL RESULTS AUD $ million 1H FY2014 1H FY2013 % Change vs Notes to 31 January 2014 to 31 January 2013 pcp Revenue ($m) $14.9 $20.2 -26.8% Impact of ‘Fonterra incident’ Gross margin ($m) $5.1 $7.5 -32.8% Due to reduced sales Operational expenditure
Slide 10: Review of Revenue Trends
REVIEW OF REVENUE TRENDS For personal use only Geographic (by % of sales revenue) • The majority of sales are still in Asia and Oceania. Change in sales FH FY14 FH FY13 revenue (%) • However there has been Oceania 23% 39% -56% significant growth in both sales revenue and percentage in both Asia 57%
Slide 11: Competitive Strengths – A Culture of Commercial Innovation
COMPETITIVE STRENGTHS – For personal use only A CULTURE OF COMMERCIAL INNOVATION • 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 12: Priorities for Clover
For personal use only PRIORITIES FOR CLOVER • Continued focus on the growing infant formula and children’s food market. – Specialist delivery systems. – Targeted multiple bioactive delivery systems. systems – Improved bioactive protection and delivery. – Provision of improved value. • Focus 1: Focus
Slide 13: Preterm Medical Food Project
PRETERM MEDICAL FOOD For personal use only PROJECT Medical & Pharmaceutical applications: • Clover has supported strategic clinical studies for many years and this assists in identifying new commercial opportunities. • Medical issues that affect preterm infants include: – Respiratory impairment . –
Slide 14: Business Plan for Preterm Infant Formulation
BUSINESS PLAN FOR PRETERM For personal use only INFANT FORMULATION • Clover has developed a specialty formulation for hospital use: – Successful clinical trial to test high DHA emulsion & delivery system completed in 2011. – Licence agreements signed & patent applications filed. • US Patent for “Pro
Slide 15: Thank You
For personal use only THANK YOU Questions? 15
Slide 16: 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