Advance ZincTek Limited · ASX:ANO
Advance ZincTek — Antaria — Shareholder Meeting (November 2010)
25 slides from Advance ZincTek's shareholder meeting presentation, Nov 22, 2010
Slide 1: Annual General Meeting
For personal use only Annual General Meeting Antaria Limited 22 November 2010 Copyright 2010 Page 1
Slide 2: Index
For personal use only Index 1. Overview 2. Goals for 2010 3. Achievements ¾ Financial ¾ Operational ¾ Corporate 4. Strategy 5. Goals for next 1‐2 years 6. Summary Copyright 2010 Page 2
Slide 3: Overview
For personal use only Overview ¾ Antaria Limited is a specialist developer and manufacturer of advanced materials used by the cosmetic, chemical and industrial sectors. ¾ With ZinClear‐IM® Antaria has demonstrated successful commercialisation through a global distribution network. ¾ Further revenue
Slide 4: Goals for 2010
For personal use only Goals for 2010 Our objective as stated at 2009 How we have fared Annual General Meeting Enhance plant and supply chain to support Achieved high volume product launches based on Plant de‐bottlenecked ZinClear‐IM® Raw materials supply fine‐tuned Further support existing ZinClear‐
Slide 5: Index
For personal use only Index 1. Overview 2. Goals for 2010 3. Achievements ¾ Financial ¾ Operational ¾ Corporate 4. Strategy 5. Goals for next 1‐2 years 6. Summary Copyright 2010 Page 5
Slide 6: Financial Achievements – P&L
For personal use only Financial Achievements – P&L Year ended Year ended Product volume growth up 30‐Jun‐09 30‐Jun‐10 70%; prices sharpened to address higher volume Revenue 3,723,152 4,480,966 segments Cost of goods sold (2,859,544) (3,701,741) Gross profit 863,608 779,225 Reflects a fixed cost base
Slide 7: ZinClear-IM - Driving Revenue Growth
For personal use only ZinClear‐IM® ‐ Driving Revenue Growth A$m Australia North America Europe & other • Antaria has tripled $4.0 ZinClear‐IM® $3.5 revenues from $3.0 FY08 to FY10 $2.5 • North American $2.0 sales have now $1.5 started to grow $1.0 since joining forces $0.5 with The Dow $- Chemical C
Slide 8: Operational Achievements
For personal use only Operational Achievements • Completed first phase of ZinClear‐IM® plant upgrade • Demonstrated manufacture at higher volumes • Successful ramp up and inventory build in anticipation of high‐volume product launch in next 1‐2 years • Expansion of market opportunities for existing
Slide 9: ZinClear Achievements
For personal use only ZinClear® Achievements Growing volume and customer base across key regions Australia Europe • 1Q FY11 sales $570k compared to • 1Q FY11 sales $230k compared to 1Q FY10 sales of $386k 1Q FY10 sales of $31k • Volumes up from lead customers • Growing number of new • Introduction o
Slide 10: ZinClear-IM - Growing Customer Base in North America
For personal use only ZinClear‐IM® ‐ Growing Customer Base in North America Estee Lauder Origins Youthtopia SPF 15 (ZinClear-IM 50AB) Transparency – Inorganic UV filter Victoria’s Secret – VS Makeup (ZinClear-IM 50AB) Launched in July 2009, key product benefit of ZinClear is the transparency and tha
Slide 11: Corporate Achievements
For personal use only Corporate Achievements • Secured $2m Energenics placement at 22 cents per share • Strengthened relationships with distribution partners in USA and Europe • Funded Phase 1 of capacity expansion Copyright 2010 Page 11
Slide 12: Index
For personal use only Index 1. Overview 2. Goals for 2010 3. Achievements ¾ Financial ¾ Operational ¾ Corporate 4. Strategy 5. Goals for next 1‐2 years 6. Summary Copyright 2010 Page 12
Slide 13: Strategy Overview
For personal use only Strategy Overview • Grow revenues from existing products ¾Continue penetration in major markets with distribution partners ¾Strengthen distribution footprint in new markets • Enhance product range to drive further sales, e.g. for ZinClear: – Next generation of performance enhan
Slide 14: Strategy – Distribution Network
For personal use only Strategy – Distribution Network • Global distribution network established in the Americas, Europe and parts of Asia • Strong evidence of increasing sales momentum from distribution partners • Medium term goal to expand distribution partnerships into Asia, including China - stro
Slide 15: Strategy – Deepen Merck relationship
For personal use only Strategy – Deepen Merck relationship • Alusion® is Antaria’s second commercialised major product family • Since April 2009, licensed and distributed exclusively by Merck KGaA • Sales growth strong, currently examining options for capacity increases • Additional product offering
Slide 16: Strategy – Capture opportunity for ZinClear-IM
For personal use only Strategy – Capture opportunity for ZinClear‐IM® • Drivers of ZinClear‐IM® revenue opportunity – Growing consumer and regulatory awareness of need for broad spectrum protection (UVA & UVB) – Concern over safety and efficacy of chemical UV absorbers – Growing demand for all‐natur
Slide 17: Strategy – Plant Upgrades – Reduce unit costs
For personal use only Strategy – Plant Upgrades – Reduce unit costs • Phase 1 of ZinClear‐IM® plant upgrades completed • Prepares Antaria for expected demand increase • Investment impacted FY10 margins but will deliver longer term margin improvement • Other opportunities to further increase capacity
Slide 18: Strategy – Commercialise new products
For personal use only Strategy – Commercialise new products • Antaria is now looking to launch and commercialise new product lines from its pipeline, these could include: – UV protection and antibacterial properties for plastics & films – Ceramics for high strength mechanical components • Potential
Slide 19: New Products example – Advanced Ceramics
For personal use only Strategy ‐ New Products example – Advanced Ceramics • Structural ceramics powder developed by Antaria R&D • Unique particle properties deliver: ¾ High strength/hardness and high fracture toughness ¾ Near net‐shape forming, little finishing required ¾ High value uses in industri
Slide 20: Index
For personal use only Index 1. Overview 2. Goals for 2010 3. Achievements ¾ Financial ¾ Operational ¾ Corporate 4. Strategy 5. Goals for next 1‐2 years 6. Summary Copyright 2010 Page 20
Slide 21: Goals for the next 1-2 years
For personal use only Goals for the next 1‐2 years • Drive strong revenue growth from new and existing products: • Economies of scale to lead to margin improvement • Work towards delivering positive cash flow and overall profitability • Ongoing management of capital requirements Copyright 2010 Page
Slide 22: Summary
For personal use only Summary ¾Delivering increasing profit contribution from today’s lead products ¾Expected continued sales growth ¾Margin improvement as volumes increase ¾Strong relationships with strategic partners ¾Will continue to drive revenue growth ¾New product development underway ¾We are
Slide 23: Annual General Meeting
For personal use only Annual General Meeting Antaria Limited 22 November 2010 Copyright 2010 Page 23
Slide 24: Contacts
For personal use only Contacts Deborah Cooper Managing Director [email protected] tel +61 (8) 6253 5300 Deana Cesari Chief Financial Officer [email protected] Tel +61 (8) 6253 5300 Gemma Young FD [email protected] Tel + 61 (8) 92386 1233 3 Brodie Hall Drive, Bentley WA 6102 www.anta
Slide 25: Forward Looking Statements
For personal use only Forward Looking Statements 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‐looking statements are necessarily subject