Advance ZincTek Limited · ASX:ANO
Advance ZincTek — Antaria — Investor Presentation (August 2011)
31 slides from Advance ZincTek's investor presentation, Aug 24, 2011
Slide 1: Antaria Limited – Platform for Profitability
Antaria Limited – Platform for Profitability For personal use only 24 AUGUST 2011 ANTARIA LIMITED 1
Slide 2: Antaria – past and present (1)
Antaria – past and present (1) For personal use only • In the beginning… – Materials technology applicable across a broad range of industries and products – R&D at the University of Western Australia – Scaled up in JV with Samsung Corning 2000-2004 – Nano products launched in 2003 – ASX listing in 2
Slide 3: Antaria – past and present (2)
Antaria – past and present (2) For personal use only • Total product sales A$m ZinClear-IM ZinClear-nano Alusion Cercat NanoZ / other Antaria Sales $5.0 $4.0 $3.0 $2.0 $1.0 $- FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Launch of Distribution License Final sales Supply final ZinClear-IM commenced A
Slide 4: Antaria – past and present (3)
Antaria – past and present (3) For personal use only • Now we have the right framework in place – Partners and products – Manufacturing and experience • Now is the time to invest in new revenue streams – New powder product for suncare – Industrial opportunities • Now we need capital – To accelerate
Slide 5: Investment Highlights
Investment Highlights For personal use only Opportunity to participate in the growth of an Australian technology company Novel proprietary technology with broad applications PLATFORM Control of particle size, shape and structure Successfully commercialised two leading products which are already PROD
Slide 6: Technology & IP
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Technology & IP For personal use only • Platform technology delivering advanced materials from concept to production – Applicable across a wide range of materials and applications – Delivering unique properties – Control of particle size, shape and structur
Slide 7: Product Portfolio
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Product Portfolio For personal use only ® ® ZinClear-IM Alusion • Transparent, zinc oxide based • Functional filler or pigment that broad spectrum UV absorber provides a “soft focus” effect that • Suncare and cosmetics market hides lines and wrinkles segmen
Slide 8: ZinClear-IM® – our flagship product
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT ZinClear-IM® – our flagship product For personal use only • ZinClear-IM® is a market leading suncare product with a unique combination of features Attribute Chemical UV absorbers Titanium dioxide Zinc Oxide Broad spectrum protection (UVA and UVB) In combina
Slide 9: ZinClear-IM® – market drivers
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT ZinClear-IM® – market drivers For personal use only • All-natural/mineral sector is fuelling growth in suncare and cosmetics – Superior transparency of ZinClear-IM® means all zinc (all natural) sunscreens without addition of any chemical absorbers • Regulat
Slide 10: ZinClear-IM® – a growing market (1)
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT ZinClear-IM® – a growing market (1) For personal use only • Global retail suncare market estimated to be worth $7.9 billion by end of 2014 (1) (1) Source: Datamonitor, Global Suncare Industry Profile. Reference Code: 0199-0259. Publication Date: September 2
Slide 11: ZinClear-IM® – a growing market (2)
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT ZinClear-IM® – a growing market (2) For personal use only • Substantial revenue growth Global Market for UV Absorbers (2009) Source: Confidential Report potential Japan US$52m 13% – Large untapped markets China • Japan $27m 7% • China – Opportunities in Eur
Slide 12: ZinClear-IM® – global brand endorsement
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT ZinClear-IM® – global brand endorsement For personal use only North America Australia Europe Estee Lauder Cancer Council Melvita Sun Cream Origins Youthtopia SPF 15 Classic, Natural Laboratoires Phyt's Victoria’s Secret Ganehill/Valeant Phyt Solaire VS Make
Slide 13: ZinClear-IM® – commercialisation pipeline
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT ZinClear-IM® – commercialisation pipeline For personal use only Number of Accounts (Cumulative) Repeat Orders Revenue for Antaria Commercial Launch Formulating Time from initial discussions to commercial launch Initial discussions typically 1-3 years 0 50 1
Slide 14: Alusion® – licensed technology
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Alusion® – licensed technology For personal use only • Plate-like aluminium oxide functional filler – Cosmetics and anti-ageing products – Superior feel and adhesion – Delivers a ‘soft focus’ effect • Exclusively licensed to Merck KGaA since 2009 – Marketed
Slide 15: Committed Partners
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Committed Partners For personal use only • Major global • Partners since April 2009 companies demand • Exclusive license/distribution for and endorse cosmetic and industrial applications • A$2.6 million licence fee Antaria’s key • Toll manufacturing revenue
Slide 16: Global Distribution Network
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Global Distribution Network For personal use only Product Distributor Region Date commenced ZinClear® Antaria Australia 2008 ZinClear® Dow Chemical Company Americas April 2008 ZinClear® Comercial Quimica Masso France, Spain, Eastern Europe December 2008 Zin
Slide 17: Strong Innovation Pipeline
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Strong Innovation Pipeline For personal use only • Platform technology • UV absorption plastics – Broad applications Polymers • Antimicrobial materials • Textiles Electronics • Market focused • Semiconductors Structural innovation strategy • Polishing slurr
Slide 18: ZinClear-IM® – the next generation
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT ZinClear-IM® – the next generation For personal use only ZinClear ZinClear ZinClear IM ZinClear IM Nano IM Higher Loading Range Extension • 50% zinc oxide • 50% zinc oxide • 60% zinc oxide • 100% zinc in dispersion in dispersion in dispersion oxide powder •
Slide 19: ZinClear-IM® – new powder product (1)
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT ZinClear-IM® – new powder product (1) For personal use only • Key market drivers demand the launch of a ZinClear-IM® powder product – Increased market size – Significantly improves likely success with mass market/high volume customers • Client interest in p
Slide 20: ZinClear-IM® – new powder product (2)
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT ZinClear-IM® – new powder product (2) For personal use only US Market for Zinc Oxide (2005) • Increased access to regional markets 16% – North America • Powder market approx. 4 x size of dispersion market – Europe • 1.8 x North American market value 84% • F
Slide 21: ZinClear-IM® – new powder product (3)
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT ZinClear-IM® – new powder product (3) For personal use only • Low risk extension of existing product range with established market access • Development and launch progress: Proof of concept Complete Raw material optimisation Ongoing Laboratory to pilot scal
Slide 22: Industrial market opportunities
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Industrial market opportunities For personal use only • Aluminium oxide (Alusion® extension) – Licensed to Merck in 2009 • Potential applications – Coatings, printing, plastics and/or decorative applications – For example, pearlescent paint pigments for hig
Slide 23: Current research focus (1)
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Current research focus (1) For personal use only • Conventional zirconia • Antaria’s zirconia nanoparticle ceramics nanoparticles – Deliver superior mechanical – Existing ceramics often properties in finished too brittle for use in the components: fracture
Slide 24: Current research focus (2)
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Current research focus (2) For personal use only • Zirconia ceramics project progress: Proof of concept Complete Feasibility Complete Process scale-up Complete Benchmarking vs commercial zirconia Ongoing Market potential/partner evaluation Pending • Evaluat
Slide 25: Platform for Profitability
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Platform for Profitability For personal use only • Positioned for strong global sales growth, higher margins and profitability Australia North America A$m Europe & other – Grow ZinClear-IM® $4.5 EU sales revenues increase substantially $4.0 Revenues • Next
Slide 26: Capital raising – outline
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Capital raising – outline For personal use only • Capital required to accelerate development and capture revenue opportunities – Solid foundation in place – Now is the time to invest in new revenue streams • Proposed capital raising from a combination of: –
Slide 27: Capital raising – use of funds
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Capital raising – use of funds For personal use only Product Project Use of Funds ZinClear-IM® powder Powder product development $0.4m ZinClear-IM® powder Powder plant and equipment $1.1m New products Ceramics (Phase 1 only) $0.3m Existing products Investme
Slide 28: Corporate Overview
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Corporate Overview For personal use only As at 19 August 2011 Shares on Issue 235,169,575 Top 20 shareholders 72.8% Substantial shareholders University of Western Australia (19.5%) Ankla Pty Ltd (14%) Nayan Jagjivan (13.4%) Options on Issue Energenics 9,090
Slide 29: Profit & Loss
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Profit & Loss For personal use only 2010 2011 Full Year Full Year Revenue 4,481k 5,354k Cost of Goods Sold 3,702k 4,277k Gross Profit 779k 1,077k As at % of sales 17% 20% Other income 736k 391k R&D expenses 1,113k 875k Sales & marketing expenses 463k 355k C
Slide 30: Balance Sheet
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Balance Sheet For personal use only 30 June 2010 30 June 2011 Cash 2,127k 2,339k Inventories 1,757k 813k Receivables and other current assets 797k 717k Total Current Assets 4,681k 3,869k Property, plant and equipment 1,750k 1,491k Other non-current assets 9
Slide 31: Forward Looking Statements
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT Forward Looking Statements For personal use only This presentation includes forward-looking statements that involve risks and uncertainties. These forward-looking statements are based upon Antaria's expectations and beliefs concerning future events. Forward