Clover Corporation Limited · ASX:CLV

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

17 slides from Clover's conference presentation, Oct 25, 2018

  1. Slide 1: Clover Corporation Limited

    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

    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

    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

    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 Dietary Food and Clinica

  5. Slide 5: Encapsulation Technology

    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 shelf life of 24 months,

  6. Slide 6: Market Update

    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 infant formula manufactur

  7. Slide 7: Financial Review 2015-2018

    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 providing an increased R

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

    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 doing business in China 2

  9. Slide 9: Full Year 2018 Performance Highlights

    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 FY17 $3.6m. Balance Sh

  10. Slide 10: Full Year 2018 Results

    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), resourcing for NPAT

  11. Slide 11: Balance Sheet 31 July 2018

    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 $37.6 +$6.0m  Inventory

  12. Slide 12: An Update on Growth Platforms

    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: Infant formula maintains growth

    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 (Cross Boarder Electro

  14. Slide 14: Growth Platform: New products driving future growth

    Market Infant formula 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% oil loading in a powd

  15. Slide 15: Growth Platform: New markets development

    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 starting production  Clov

  16. Slide 16: 1HFY19 Outlook & Priorities

    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 sports nutrition, chil

  17. Slide 17: 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

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