Clover Corporation Limited · ASX:CLV
Clover — Shareholder Meeting (November 2013)
29 slides from Clover's shareholder meeting presentation, Nov 29, 2013
Slide 1: 2013 Annual General Meeting ASX Announcement
For personal use only Clover Corporation Limited ABN 85 003 622 866 ASX ANNOUNCEMENT 29 November 2013 The Manager Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 2013 ANNUAL GENERAL MEETING Enclosed are transcripts of the Chairman’s Address and the Managing Director’s Repor
Slide 2: Chairman's Address 2013
For personal use only CLOVER CORPORATION LIMITED Chairman’s Address 2013 Despite a challenging trading environment, Clover Corporation Limited (Clover) reported a credible result for 2013. Net profit after tax increased by 39% to $6.1m during the period. Adjusting the 2012 result for expenses totall
Slide 3: Chairman's Address: Preterm medical foods and DINO study
For personal use only associated with new encapsulated products, encapsulation enhancing agents and the Medical Foods initiative around Pre-Term infant medical foods. Clover has developed a pipeline of new products. Some of these are well advanced in customer appraisal and approval processes. Events
Slide 4: Chairman's Address: Clinical trial and trading update
For personal use only The clinical trial is due to be completed by the end of 2014 with the results of the trial to be available mid 2015. This study is an important milestone for the project. Given our progress, we are now developing the strategy and business model to commercialise the initial medi
Slide 5: Chairman's Address: Sales outlook and China market
For personal use only conditions. We expect the disruption to sales to be temporary but caution that it may take up to twelve months for normal market conditions to return. Sales for the full year could be down by between 20-30% compared to last year. Senior staff have visited all major customers an
Slide 6: Chairman's Address: Dividend and CEO succession
For personal use only Based on this more than satisfactory performance for the year, your directors have declared and paid a fully franked final dividend of 1.5 cents per share. Together with the interim dividend of 0.5 cents per share paid in March 2013 the total dividend for the financial year was
Slide 7: Chairman's Address: New stage of growth
For personal use only Clover is positioning for a new stage of growth. We will continue to execute our strategy of commercialising our intellectual property. No doubt there will be challenges too. The search for a new Managing Director to lead us going forward is well advanced and shareholders will
Slide 8: Managing Director Report for AGM November 2013
For personal use only Managing Director Report for AGM 29 November 2013
Slide 9: Positioning for Growth
For personal use only POSITIONING FOR GROWTH • Strategic vision & business description • Contaminated whey protein concentrate in New Zealand • 2013 financial performance • p Operational review • Clover’s competitive strengths • Infant formula in China • Research & Development • Priorities • Preterm
Slide 10: 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 11: 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 12: 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 13: Contaminated Milk Powder Incident in New Zealand
CONTAMINATED MILK POWDER For personal use only INCIDENT IN NEW ZEALAND • August 2013 Fonterra New Zealand announced they had produced and distributed microbiologically contaminated whey protein concentrate. • Fonterra manufactured infant formula and supplied whey protein concentrate to other infant
Slide 14: Clover FY2013 Results
CLOVER FY2013 RESULTS For personal use only year ended 31 July 2013 AUD million Year ended Year Ended Normalised* 31 July 2013 31 July 2012 31 July 2012 Revenue ($m) $44.1 $38.4 $38.4 Profit before tax ($m) $8.5 $6.4 $7.6 Depreciation/Amort ($m) ($0.50) ($0.51) ($0.51) Interest ($m) $0.21 $0.29 $0.2
Slide 15: Historical Financial Performance
HISTORICAL FINANCIAL For personal use only PERFORMANCE FP2011 AUD million FY2013 FY2012 FY2010 FY2009 FY2008 FY2007 (13 months) Shares on issue 165.2 m 165.2 m 165.2 m 165.2 m 165.2 m 165.2 m 165.2 m Net cash total $8.3 $9.7 $7.4 $12.2 $9.2 $10.8 $11.0 Sales Revenue $44.1 $38.4 $35.6 $34.9 $21.1 $21
Slide 16: FY2013 Operational Review - Delivering on Expectations
FY2013 OPERATIONAL REVIEW – For personal use only DELIVERING ON EXPECTATIONS • Strong growth in organic sales revenue (+14.9% from 2012). • Focus on higher value infant formula & children applications (2013: 98%). • C ti Continued d expansion i off sales l ini Oceania O i (2013: (2013 +67%). 67%) •
Slide 17: Continued Focus on Growth Markets & Value Added Products
CONTINUED FOCUS ON GROWTH MARKETS & VALUE ADDED For personal use only PRODUCTS Geographic sales by revenue • Sales revenue increased with the strongest performance in Oceania. FY2013 FY2012 • Oceania supports infant formula exports. Oceania 38% 26% • Focus has been on infant formula, Asia 52% 64% fo
Slide 18: 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 FY2013 marine oil oil, algal oils, oils other specialty oils and important micronutri
Slide 19: 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 – High quality differentiated products – Excellent reputation with clie
Slide 20: Infant Formula in China
For personal use only INFANT FORMULA IN CHINA • 2008 melamine contamination of infant formula in China resulted in improvements in safety standards and a significant increase in imported infant formula. • China has identified infant formula as a matter of national importance and recently there have
Slide 21: Priorities for Clover
For personal use only PRIORITIES FOR CLOVER • Continued focus on the 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 on expa
Slide 22: The Preterm Medical Food Project
THE PRETERM MEDICAL FOOD PROJECT For personal use only 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 23: Plan for Preterm Infant Formulation
PLAN FOR PRETERM INFANT FORMULATION For personal use only • Clover has developed a specialty formulation for hospital use: – Successful clinical trial to test high DHA emulsion & delivery system in 2011. – Licence agreements signed & patent applications filed. • US Patent for “Promoting respiratory
Slide 24: Research & Development Expenditure
RESEARCH & DEVELOPMENT EXPENDITURE For personal use only (EXPENSED IN YEAR OF ACTIVITY) million ($) 3 00 3.00 2.00 * 1.00 0.00 FY08 FY09 FY10 FP11 FY12 FY13 FY14 * FP11 represents 13 months R&D Expenditure Estimate for FY14 with additional R&D expenditure for Preterm medical food project. 17
Slide 25: Sales Revenue Decline by 19.9% in the First Months of FY2014
SALES REVENUE DECLINE BY 19.9% IN For personal use only THE FIRST 3 MONTHS OF FY2014 million ($) Unaudited management results 14 12 10 8 6 4 2 0 FP12 FY13 FY14 Sales Revenue Sales revenue from August, September & October 18
Slide 26: FY2014 Outlook
For personal use only FY2014 OUTLOOK • Estimate 20% - 30% decrease in sales revenue in FY2014 due to NZ “milk powder contamination” incident. • Impact appears to be temporary with strong bounce back anticipated in FY2015 from existing customers. • M Managing i the th impact i t off temporary t reduc
Slide 27: Thank You - Questions?
For personal use only THANK YOU Questions? 20
Slide 28: 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 29: Thank you for attending
For personal use only Thank you for attending Annual General Meeting 29 November 2013