Blis Technologies Limited · NZX:BLT
Blis Technologies — Shareholder Meeting (August 2007)
29 slides from Blis Technologies's shareholder meeting presentation, Aug 1, 2007
Slide 1: 2007 Annual General Meeting
Agenda Review of issues related to business development 2007 Annual General Meeting •OCK presentation •Review of Strategic Product Developments BLIS Technologies Ltd. 1. Current retail products 2. Proposed products and applications Centre for Innovation, University of Otago •Review of Strategic Mark
Slide 2: Agenda
Agenda Welcome and introductory remarks P Fennessy Apologies Minutes of AGM July 2006 Annual Report, Financial Statements and Audit Report 2007 Annual Accounts and discussion Adoption of Financial Statements Audit Report Annual Report CEO Presentation B Richardson Election of Directors Appointment o
Slide 3: Business Review
Business Review Key Points: Dec 06 BLIS Business Plan Internationally, the probiotics market is growing annually at 10-20%, depending on the market sector Food applications represent the major use for probiotics Currently few oral probiotic competitors, but interest is increasing Good potent
Slide 4: Why Oral Care?
Why Oral Care? U.S. Prevalence of Gingivitis and Periodontitis – 2000 Gingivitis Periodontitis Severe Periodontitis ~70 ~20 ~110 million million million Source: EA analysis, CDCP (NHANES III), Census 2000, EA interviews Example of potential application
Slide 5: Business Review…
Business Review… Key Points: Dec 06 BLIS Business Plan Probiotics are becoming more heavily regulated Hence the need to demonstrate safety and efficacy This is driving global probiotic companies to seek niche applications with good science and IP Competition is expected to increase significa
Slide 6: Aging Population (US)
Aging Population (US) Source: Congressional Budget Office based on Bureau of the Census, U.S. Interim Projections by Age, Sex, Race, and Hispanic Origin, Table 2a, "Projected Population of the United States, by Age and Sex: 2000 to 2050" (March 2004), available at www.census.gov/ipc/www/usinterimpro
Slide 7: Business Review…
Business Review… Key Points: Dec 06 BLIS Business Plan BLIS has previously focused mostly on the NZ market which is too small to develop a sustainable and profitable business International relationships mostly formed with small locally-based partners, or small international companies These sma
Slide 8: Business Review…
Business Review… BLIS Strategy and Business Plan - 1 The 5-10 year financial forecasts are promising – they are currently being further reviewed The highest priority for BLIS is to break even - and to achieve revenues of > $NZ 2M The future business of BLIS is in the ingredients sector - based
Slide 9: Business Review…
Business Review… BLIS Strategy and Business Plan - 2 The core competencies of BLIS Technologies are: product and applications development; and the ability to deliver these to potential customers The immediate and ongoing R&D focus is on product development and key technical issues Essential fo
Slide 10: 2007/08 Strategies
2007/08 Strategies A break-even budget for 2007/08 Achieve positive cash flow through development of new business and R&D contracts Improve cash reserves of BLIS to fund ongoing product and market development in specific international markets ... achieving cash reserves of >$NZ 3M
Slide 11: 2007/08 Strategies…
2007/08 Strategies… Seek strategic and equity global partners involved in probiotics – to develop commercial applications – with access to regulatory expertise – with access to production, distribution and marketing resources Focus immediate product development activities on projects related to
Slide 12: Financial Update
Financial Update Cash reserves have improved …BLIS has no debt Operating costs were reduced by $150K in 06/07 Continuing to tightly manage expenditure BLIS has written down redundant inventory ($200K), but some further inventory to be written off ($50K)
Slide 13: Financial Update …
Financial Update … Major priority is break-even by 31 March, 2008 and to be trading profitably. This will be based on R&D revenue (40%) and sales (60%) Financial management and reporting systems have been improved to better manage the business. No hedging of foreign currency at present but t
Slide 14: Operations Update
Operations Update Inventory management is an issue in the development phase …operations reviewed and changes are being implemented to reduce inventory costs BLIS will have a need for production & storage facilities in the future Expect to relocate facilities within a year Existing product ra
Slide 15: Marketing Update
Marketing Update Nestle Licensing and Research Agreement – Milestone and research payments to provide > $NZ 1M in the next 3 years Potential royalty stream on products after 3 years is significant but still too early to quantify Other International Partners – Discussions with several potential p
Slide 16: Marketing Update…
Marketing Update… New Zealand – Pharmabroker markets & distributes. Enables BLIS to focus on international market development and product development Australia – Good progress is being made by Breezecare; expect to significantly increase sales this year. Taiwan – Product development with a maj
Slide 17: Marketing Update…
Marketing Update… Germany –Small company partner withdrew in final stages despite approval to market Fresh Breath Kits – business decision Spain – Small company partner – BLIS disappointed in slow progress despite approval to market oral health products – under review Ireland – A major retail
Slide 18: Marketing Update…
Marketing Update… USA – Dr Katz/Therabreath - sales increasing but slow Major company – current delays with launch of product due to ongoing stability trials Other - considerable interest from major healthcare companies in developing & marketing specific oral health applications Stability of the
Slide 19: Regulatory Update
Regulatory Update International Regulatory situation is now tighter & more complex with need to demonstrate safety and efficacy BLIS has conducted several safety studies on S salivarius and is in a strong position European Approvals – Germany for Fresh breath Kit as cosmetic Fresh Breath Kit,
Slide 20: Regulatory Update…
Regulatory Update… USA - Currently considering the most appropriate strategy Australia - Registration process with TGA has been delayed; currently reviewing strategy Asia - Varies but can now proceed in Hong Kong & some applications in Taiwan, Japan & Singapore Need to commence approval proces
Slide 21: Research & Development Update
Research & Development Update Current R&D focus is on commercial objectives …Especially improving stability & colonisation (without antiseptic mouthwash) – significant progress has been made recently …Food applications – yogurt, yogurt drinks, nutrition bars and others …New gum product requires fu
Slide 22: Research & Development Update…
Research & Development Update… Maintaining international scientific profile – Professor John Tagg visited several companies and R&D groups in the USA, Europe, Australia …also presented at major probiotics conference in St Petersburg BLIS focus on applications developments and strategic developme
Slide 23: Intellectual Property Update
Intellectual Property Update Lantibiotic patent EU - Final examination accepted awaiting grant in various countries Dental Caries (Mia) patent NZ - granted August 06 US - granted June 07 Policy to continue submitting patent applications Also have extensive IP in trade secrets
Slide 24: Organization
Organization Restructured BLIS team includes: Corporate Administration Business Development & Marketing Production & Quality Control Technical Product Development Strategic Research Expect to contract 2-3 technical people for research Staff levels the same as last year but some positions red
Slide 25: R&D Agreement - DSM Nutritional Products
R&D Agreement - DSM Nutritional Products Dec 06: Confidentiality agreement with DSM Nutritional Products 1 Aug 07: BLIS and DSM Nutritional Products enter into Letter of Intent to explore R&D opportunities and potential marketing arrangements Stage 1: Proposed R&D agreement, jointly funded by
Slide 26: About DSM Nutritional Products
About DSM Nutritional Products DSM is a major Dutch company formed in 1902 and active worldwide in nutritional and pharma ingredients, performance materials and industrial chemicals DSM’s Vision 2010 strategy focuses on market-driven growth and innovation; and growth in emerging markets The gr
Slide 27: About DSM Nutritional Products
About DSM Nutritional Products DSM Nutritional Products serves the animal nutrition, human nutrition, and personal care industries, mainly on a business-to- business basis DSM Nutritional Products employs about 6,000 people and has sales of 2 billion Euros DSM Nutritional Products owns researc
Slide 28: Slide 28
Slide 29: Funding the future – Rights Issue
Funding the future – Rights Issue BLIS requires additional capital for working capital, product development, regulatory, infrastructural requirements and market development Directors wish to announce a rights issue with details to be provided in the near future. EGM will seek approval from sha
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