Clover Corporation Limited · ASX:CLV

Clover — Select Equities doing business in China (October 2018)

17 slides from Clover's conference presentation, Oct 23, 2018

  1. Slide 1: Clover Corporation Limited

    For personal use only Clover Corporation Limited 25 & 26 October 2018 Peter Davey- CEO & Managing Director presentation Select Equities doing business in China

  2. Slide 2: Vision and Mission Statement

    For personal use only Vision and Mission Statement 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 Select Equities doing business in China 25 & 26 October 2018

  3. Slide 3: Clover 2015-18

    For personal use only Clover 2015-18 Av e 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 July 31, 2015 to October 9, 2018 3 Select Equities doing business in China 25 & 26 October 2018

  4. Slide 4: Omega Ingredients Value Chain

    For personal use only Omega Ingredients Value Chain 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

  5. Slide 5: Encapsulation Technology

    For personal use only Encapsulation Technology  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

  6. Slide 6: Market Update

    For personal use only Market Update Market changes Outcomes for Clover  Slowing of CFDA registrations for  Clover’s customers are cautious around International brands to sell in China inventory, as when CFDA licence awarded new cans are required  New EU regulation requiring the mandatory  EU inf

  7. Slide 7: Financial Review 2015-2018

    For personal use only Financial Review- 2015-2018 80 25% 10 70 21% 20% 60 5.5 50 Revenue (A$) 2.9 15% 40 12% 30 0.1 63 10% 7% 47.9 20 42.9 29.9 5% 10 0% 0 0% 2015 2016 2017 2018 Revenue EBIT ROE  Clover has experienced significant revenue growth since 2015, complemented by improved profitability pr

  8. Slide 8: Total Dividend Paid FY'15-18

    For personal use only Total Dividend Paid FY’15-18 3.5 3 2.5 Dividend Paid (A$) 2 1.5 1 0.5 0 FY15 FY16 FY17 FY18 H2 0.824 0.824 1.239 2.064 H1 0 0.412 0.412 0.824  Clover has consistently increased its total dividend payout to shareholders in line with growth in profitability 8 Select Equities doi

  9. Slide 9: Full Year 2018 Performance Highlights

    For personal use only Full Year 2018 Performance Highlights Total full year Revenue New products delivering $62.9m up 32% on FY17 growth in new segments $47.9m driven by improved and countries demand Inventory at $19.8m up Net Profit $7.6m up 109% $1.0m on FY17 full year upon forward demand on F

  10. Slide 10: Full Year 2018 Results

    For personal use only Full Year 2018 Results A$m 4E Reported 4E Reported  32% year on year revenue 31 Jul 2018 31 Jul 2017 growth Revenue $62.9 $47.9  Australia/NZ key growth region EBITDA $10.9 $6.1 NPBT $10.6 $5.0  EBITDA $10.9m (PY $6.1m) Tax ($3.0) ($1.4)  Fixed costs managed $8.3m (PY $6.1m

  11. Slide 11: Balance Sheet July 2018

    For personal use only Balance Sheet 31 July 2018 A$m Reported Reported Movement  Cash balance 31 Jul 2018 31 July 2017 strong $7.9m Cash $7.9 $5.9 +$2.0m  Trade receivables Trade $15.3 $12.1 +$3.2m up on FY17 reflects Receivables sales increase Inventories $19.8 $18.8 +$1.0m Total Current $43.6 $3

  12. Slide 12: An Update on Growth Platforms

    For personal use only An Update on Growth Platforms Infant Market formula Development customers Product Development Select Equities doing business in China 25 & 26 October 2018

  13. Slide 13: Growth Platform Market: Infant formula maintains growth

    For personal use only Growth Platform Market Infant formula Development customer s Infant formula maintains growth Product Development  Chinese consumer sentiment for Western brands is driving growth for customers  Awarding of CFDA licenses to market and sell product in China has slowed, the CBEC

  14. Slide 14: New products driving future growth

    Market Infant formula For personal use only Development customers Growth Platform Product Development New products driving future growth  Clover’s Hypoallergenic DHA product continues to win new customers and applications in speciality segments  A highly concentrated DHA product which delivers 60%

  15. Slide 15: New markets development

    For personal use only Growth Platform Market Development Infant formula customers New markets development Product Development  Clover has grown sales in USA, Europe, Asia and ANZ  Australia & New Zealand has experienced significant growth servicing the Asian market with several new facilities star

  16. Slide 16: 1HFY19 Outlook & Priorities

    For personal use only 1HFY19 Outlook & Priorities  Growth in European markets driven by the requirement to increase DHA levels in infant formula  Clover intends entering into a contract to purchase a share of a spray drying facility in Hamilton, New Zealand  Development of new products targeting

  17. Slide 17: 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

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