Clover Corporation Limited · ASX:CLV
Clover — Investor Presentation (September 2010)
22 slides from Clover's investor presentation, Sep 10, 2010
Slide 1: Investor Presentation September 2010
For personal use only Investor Presentation September 2010
Slide 2: 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 3: Introduction
INTRODUCTION For personal use only Clover Corporation Limited provides nutritional and functional ingredients for use in infant formula, foods and specialty applications using proprietary t h l technology. Future Food I Ingredients di ((100%)) ((50%))
Slide 4: Company Overview
For personal use only COMPANY OVERVIEW • Mission is to identify, develop and commercialise specialty functional and nutritional ingredients. • Consistentlyy profitable, p , strong g cash p position & zero debt. • Competitive position in the growing “nutraceutical” market. g technical,, manufacturing
Slide 5: Summary of Financial Performance FY2010
SUMMARY OF FINANCIAL For personal use only PERFORMANCE FY2010 FY2010 FY2009 Shares on issue 165.2 million 165.2 million Total contributed equity $32.9 million $32.9 million Market capitalization $49.6 million (# as at 9/9/10) $32.2 million (as at 23/11/09) Cash at year end $12.1 million $9.2 million
Slide 6: Summary of Financial Performance FY2010
SUMMARY OF FINANCIAL For personal use only PERFORMANCE FY2010 FY2010 FY2009 Profit before tax $1.57 million $4.47 million P fit after Profit t * ft tax ($0 97 million) ($0.97 illi ) $3 08 million $3.08 illi EPS (0.59 cents/share) 1.87 cents/share Major shareholder WHSP & Co. Ltd (28.55%) WHSP & Co.
Slide 7: Full Year Ended June 2010
FULL YEAR ENDED For personal use only 30 JUNE 2010 % Change Amount of $'000 Change $'000 Revenue from ordinary Up 56.6% 12,960 to 35,851 activities Profit before tax Up 48.8% 2,394 to 7,292 (excluding FFI) Profit before tax Down 35.1% 2,901 to 1,567 (including FFI) Profit (loss) from ordinary Down -
Slide 8: FFI - Full Impairment and Divestment
FFI- Full Impairment p and For personal use only Divestment • Full impairment of Clovers’ 50% investment in FFI. • FFI developed a range of debittered functional soy ingredients that were sold to food manufacturers. • Marginal impact on top-line sales revenue • Low margin and competitive markets • C
Slide 9: Full Year Ended June 2010 - Dividends
FULL YEAR ENDED For personal use only 30 JUNE 2010 Dividends/distributions increased This period Amount per Franked Final dividend Security % (subject to amendment of the Company’s constitution) 1 25 cents 1.25 t 100% Interim dividend Nil Nil Previous corresponding period Final dividend 1 cent 100%
Slide 10: 65.4% Increase in Sales Revenue During FY10
65.4% % INCREASE IN SALES For personal use only REVENUE DURING FY10 Revenue up 65.4% to $34.94 m (2009: $21.12 m) 40 30 million (($) 20 10 0 FY2009 FY2010 Sales Revenue 10
Slide 11: FY10 Key Milestones
FY10 KEY MILESTONES For personal use only • Strong growth in Clovers’ core business. • Sales increased by 65.4%. • Increased cash generation with $12.15 million (2009: $9.10million) in cash reserves at the end of the period. • Decision to exit Future Food Ingredients Pty Ltd Joint Venture specialisi
Slide 12: For personal use only
For personal use only 12
Slide 13: Nu-Mega Ingredients Pty Ltd
For personal use only NU-MEGA INGREDIENTS PTY LTD Overview • Australian producer & international supplier of microencapsulated powders. • Encapsulation process is patented in many countries. • Current specialties include omega-3 & omega-6 oils (marine C ( & algal sources). • Process p protects oil f
Slide 14: FY10 Key Milestones for Nu-Mega Ingredients
FY10 KEY MILESTONES FOR NU-MEGA INGREDIENTS For personal use only • Sales increased by 67.6%. • Increased market reach with sales in China increasing by 90%. • Expanded use of non marine nutritional oils and other bioactive materials in encapsulated products. • y ((expenditure Increased R&D activity
Slide 15: A Global Market: Nu-Mega Sales & Distribution Network
A GLOBAL MARKET: NU-MEGA SALES & DISTRIBUTION NETWORK For personal use only Focus on market growth in Europe Establishing products and distribution in high growth Asian markets Building on the GTC distribution in The Americas Consolidating a strong market position in domestic markets SALES OFFICE MA
Slide 16: Nu-Mega Ingredients Sales in FY2010
NU-MEGA INGREDIENTS For personal use only SALES IN FY2010 Geographic Applications Australia/New Zealand 11% Asia 78% Europe 6% USA 5% Products Oil 9% Powder 87% Soy 4%
Slide 17: Diversifying Encapsulated Products & Introducing New Products
DIVERSIFYING ENCAPSULATED PRODUCTS & INTRODUCING NEW For personal use only PRODUCTS IN FY2010 Revenue from Existing Products 50% Revenue from New Products (released in the past 4 years) 50% 17
Slide 18: Nu-Mega Technical Cooperation Agreement with CPI
NU-MEGA – TECHNICAL COOPERATION AGREEMENT For personal use only WITH CPI Heart Bone Immune Glycemic Digestive Cognitive H lth Health H lth Health H lth Health H lth Health H lth Health H lth Health
Slide 19: Support for Clinical Research
SUPPORT FOR CLINICAL RESEARCH For personal use only 19
Slide 20: Outlook 2011
For personal use only Outlook 2011 Clover Corporation p 20
Slide 21: Outlook FY2011
For personal use only OUTLOOK FY2011 • Clover exit from the FFI Joint Venture. • Focus on core business. • Continued strong sales of ingredients for infant formula and foods. • Capitalise on expanded sales & distribution network. • Expand the customer base. • Increase opportunities in food applicati
Slide 22: Thank You
For personal use only THANK YOU Questions? 22