Clover Corporation Limited · ASX:CLV
Clover — Shareholder Meeting (February 2016)
29 slides from Clover's shareholder meeting presentation, Feb 11, 2016
Slide 1: 2013 Annual General Meeting
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 Report to be delivered at t
Slide 2: Chairman's Address 2013
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 totalling $1.22m in respect
Slide 3: Chairman's Address: new products and preterm Phase 3 study
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 in New Zealand, of wh
Slide 4: Clinical trial timing and trading update
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 medical food product, incl
Slide 5: Sales outlook and China infant formula market
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 and understand what they
Slide 6: Dividend and Managing Director succession
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 2.0 cents per share,
Slide 7: Positioning for a new stage of growth
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 be advised as soon as
Slide 8: Managing Director Report for AGM
Managing Director Report for AGM 29 November 2013
Slide 9: Positioning for Growth
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 medical food project
Slide 10: Strategic Vision
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 the utilisation of
Slide 11: Company Description
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 delivery and encapsula
Slide 12: Overview of Nu-Mega Operations
OVERVIEW OF NU-MEGA OPERATIONS 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 & Powders medical applicat
Slide 13: Contaminated Milk Powder Incident in New Zealand
CONTAMINATED MILK POWDER 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 formula manufacturers.
Slide 14: Clover FY2013 Results
CLOVER FY2013 RESULTS 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 $0.29 EBITDA ($m) $8.8 $6.
Slide 15: Historical Financial Performance
HISTORICAL FINANCIAL 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 $21.6 $16.5 Profit before
Slide 16: FY2013 Operational Review – Delivering on Expectations
FY2013 OPERATIONAL REVIEW – 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%) • Re-signed 5 year suppl
Slide 17: Continued Focus on Growth Markets & Value Added Products
CONTINUED FOCUS ON GROWTH MARKETS & VALUE ADDED 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% follow-on formula, growi
Slide 18: Delivery Systems Based on a Variety of Nutritional Bioactives
DELIVERY SYSTEMS BASED ON A VARIETY OF NUTRITIONAL BIOACTIVES • 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 micronutrients. • Encapsulation
Slide 19: Competitive Strengths – A Culture of Commercial Innovation
COMPETITIVE STRENGTHS – 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 clients – Dedicated and sk
Slide 20: Infant Formula in China
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 been reports about the
Slide 21: Priorities for Clover
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 expanding the sales of exi
Slide 22: The Preterm Medical Food Project
THE PRETERM MEDICAL FOOD 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 . – Cognitive g or men
Slide 23: Plan for Preterm Infant Formulation
PLAN FOR PRETERM INFANT FORMULATION • 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 development of an infa
Slide 24: Research & Development Expenditure
RESEARCH & DEVELOPMENT EXPENDITURE (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 3 Months of FY2014
SALES REVENUE DECLINE BY 19.9% IN 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
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 reduced d d sales l on inve
Slide 27: Thank You
08 CLOVER CORPORATION THANK YOU Questions? NEXT GENERATION
Slide 28: Disclaimer
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 such restrictions. This
Slide 29: Thank you for attending
Thank you for attending Annual General Meeting 29 November 2013