Post on 17-Feb-2018
24 AUGUST 2011 1ANTARIA LIMITED
Antaria Limited – Platform for Profitability
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24 AUGUST 2011 2ANTARIA LIMITED
• 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 2005
• More recently…– Over the last 2 years focus has been on the 2nd
generation of suncare products, ZinClear-IM®
• Transition from nano to micron sized particle • Securing world class partners and distributors• Building manufacturing capacity and capability• Providing a stable platform on which to grow our
business
Antaria – past and present (1)
Antaria believes the ZinClear-IM® range can deliver revenue growth and provide the platform for profitability
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24 AUGUST 2011 3ANTARIA LIMITED
Antaria – past and present (2)
• Total product salesAntaria Sales
$-
$1.0
$2.0
$3.0
$4.0
$5.0
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
A$m ZinClear-IM ZinClear-nano Alusion Cercat NanoZ / other
Supply final prepaid order to
Energenics
Distribution commenced
The Dow Chemical Co
Final sales of nano-
sized ZinClear
License Alusion tech
to Merck (Germany)
Launch of ZinClear-IM
(micron sized
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24 AUGUST 2011 4ANTARIA LIMITED
Antaria – past and present (3)
• 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 development – To capture revenue and provide the platform
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24 AUGUST 2011 5ANTARIA LIMITED
Investment HighlightsOpportunity to participate in the growth of an Australian technology company
Novel proprietary technology with broad applicationsControl of particle size, shape and structure
Successfully commercialised two leading products which are already delivering solid revenue growth
Established relationships with significant international partners such as Merck KGaA, Germany and The Dow Chemical Company, USA
Strong suite of products in development with a wide variety of market applications
Positioned for strong global sales growth, higher margins and with platform for profitability in place
PLATFORM
PRODUCTS
PARTNERS
PIPELINE
PROFIT
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24 AUGUST 2011 6ANTARIA LIMITED
Technology & IP• 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 structure
• IP protected by a portfolio of patents– Granted in some regions and applications lodged/under
examination in other regions
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
• Strong manufacturing capability significantly de-risking Antaria’s products for its partnersFor
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24 AUGUST 2011 7ANTARIA LIMITED
Product PortfolioPLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
• Functional filler or pigment that provides a “soft focus” effect that hides lines and wrinkles
• Colour cosmetic applications
Alusion®
• Nanoparticulate cerium oxide dispersions
• Diesel fuel catalysts
CercatTM
• Coated zinc oxide nanopowder• Antibacterial applications• UV protection in coatings, plastics
& films
NanoZ®
• Transparent, zinc oxide based broad spectrum UV absorber
• Suncare and cosmetics market segments
ZinClear-IM®
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24 AUGUST 2011 8ANTARIA LIMITED
ZinClear-IM® – our flagship productPLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
• ZinClear-IM® is a market leading suncare product with a unique combination of features
• Transparent (even at high loadings)• Micron sized (non-nano particulate)• Suitable for sensitive skins
Attribute Chemical UV absorbers Titanium dioxide Zinc Oxide
Broad spectrum protection (UVA and UVB) In combination
UVA protection Only one approved for US market, limited
All natural (certified natural)
ZinClear-IM’s competitive advantageF
or p
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24 AUGUST 2011 9ANTARIA LIMITED
ZinClear-IM® – market driversPLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
• 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
• Regulatory focus on broad spectrum cover– FDA delivered final ruling on sunscreen labelling,
broad spectrum coverage required to make claims of reducing risk of skin cancer and premature ageing
– Zinc oxide is one of only two UVA absorbers approved for use in the United States by the FDA
– Significant opportunity in Europe with favourable regulatory outcome
– Regulatory change also pending in Australia
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24 AUGUST 2011 10ANTARIA LIMITED
ZinClear-IM® – a growing market (1)
• 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 2010. www.datamonitor.com
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
Average annual growth rate CY05 to CY09
6% 7%
1%
19%
0%
5%
10%
15%
20%
All UVAbsorbers
Chemical UVabsorbers
Titanium dioxide Zinc oxide
• Global UV absorbers market of US$420m(2)
• Growth rate of zinc oxide significantly exceeds growth rate for other UV absorbers(2)
(2) Source: Confidential Report
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24 AUGUST 2011 11ANTARIA LIMITED
ZinClear-IM® – a growing market (2)
• Substantial revenue growth potential– Large untapped markets
• Japan• China
– Opportunities in Europe with favourable regulatory outcome
• Market for UV absorbers 1.8 x North America
• Positive industry feedback re timing of regulatory outcome
Global Market for UV Absorbers (2009)
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
Source: Confidential Report
North AmericaUS$118m
28%
China$27m
7%
EuropeUS$218m
52%
JapanUS$52m
13%
Europe North America China Japan
Source: Confidential Report
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24 AUGUST 2011 12ANTARIA LIMITED
Estee LauderOrigins Youthtopia SPF 15Victoria’s SecretVS MakeupMelaleucaSun ShadesDesert EssenceMineral SunScreen
Melvita Sun CreamLaboratoires Phyt'sPhyt SolaireNouvea Lovea BioLea Nature NatessanceC. L. Tech DermathermPur Sun Pacifique SudCosmetiqueMonoi de Tahiti
Australia
Cancer CouncilClassic, Natural Ganehill/Valeant Pharmaceuticals Invisible ZincNatural Instinct Micro-Mineral Sunscreen
ZinClear-IM® – global brand endorsementPLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
North America Europe
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24 AUGUST 2011 13ANTARIA LIMITED
Number of Accounts (Cumulative)
0 50 100 150 200 250
Initial discussions
Formulating
Commercial Launch
Repeat Orders
ZinClear-IM® – commercialisation pipelinePLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
Time from initial discussions to commercial launch typically 1-3 years
Revenue for Antaria
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24 AUGUST 2011 14ANTARIA LIMITED
Alusion® – licensed technology• 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 by Merck as “RonaFlair™ White Sapphire”
• Represented 15% of total FY11 revenue– Toll manufacturing for Merck since 2009
• Alusion® sales exceeding expectations• Increasing capacity to meet demand
– Funded R&D services also provided to Merck
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
“RonaFlair” is a Trade Mark of Merck KGaA
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24 AUGUST 2011 15ANTARIA LIMITED
• Global suncare market as a strategic, growth opportunity
• Distribution since April 2008• Expanded July 2009 (Japan, India)• Extended to 2015 Feb 2011
• Dow’s extensive technical, regulatory, marketing and distribution capabilities are driving growth of ZinClear-IM® revenue
Committed PartnersPLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
• Major global companies demand and endorse Antaria’s key products
• Model is working: sales and revenue growth has visibly increased since relationships established
• Strong opportunity to leverage these key relationships
• Partners since April 2009• Exclusive license/distribution for
cosmetic and industrial applications• A$2.6 million licence fee
• Toll manufacturing revenue for cosmetic applications
• Funded R&D for industrial applications
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24 AUGUST 2011 16ANTARIA LIMITED
Global Distribution Network
2008WorldwideAntariaNanoZ®
July 2007WorldwideEnergenics Pte LtdCercatTM
April 2009Exclusive GlobalMerck KGaAAlusion®
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
ZinClear® Bregaglio Italy, Greece March 2009
ZinClear® Dow Chemical Company Japan, India July 2009
ZinClear® IMCD Germany, UK, Scandinavia August 2009
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
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24 AUGUST 2011 17ANTARIA LIMITED
Strong Innovation PipelinePLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
• Platform technology– Broad applications
• Market focused innovation strategy– ZinClear-IM®
enhancement– ZinClear-IM® new
powder product –significant revenue potential
– Industrial market opportunities
– Earlier stage product development
• Abrasion resistant coatings & plastics
• Advanced ceramics
• Composite materials
• Thermal spraying
Structural
• Water purification
• Filtration
• Photocatalytic materials• Industrial effect pigments
• Conductive pigments
• Cosmetic fillers
• Inks
• Fuel cells
• Photovoltaic materials
• Battery materials
• UV absorption plastics
• Antimicrobial materials
• Textiles
• Dental implants
• Orthopaedic implants
Biomedical
Decorative/ Functional Pigments
TECHNOLOGY
Clean Energy
Polymers
Environmental
Electronics
• Semiconductors
• Polishing slurries
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24 AUGUST 2011 18ANTARIA LIMITED
ZinClear-IM® – the next generationPLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
ZinClear Nano
ZinClear IM Range Extension
ZinClear IM
ZinClear IM Higher Loading
• 50% zinc oxide in dispersion
• Niche markets• Nano concerns
in some markets
• Higher cost
• 50% zinc oxide in dispersion
• Micron sized particle
• Lower cost base
• Modular capacity investment
• 60% zinc oxide in dispersion
• Improved quality
• Increased performance
• Higher SPF, higher UVA effectiveness
• Reduced cost of sunscreen
• Formulation flexibility
• 100% zinc oxide powder
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24 AUGUST 2011 19ANTARIA LIMITED
ZinClear-IM® – new powder product (1)
• 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 powder product• Formulation flexibility and control• Reduced cost of final sunscreen
– Access new product segments– Maintain key competitive attributes
• E.g. transparency
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
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24 AUGUST 2011 20ANTARIA LIMITED
North AmericaUS$118m
28%
China$27m
7%
EuropeUS$218m
52%
JapanUS$52m
13%
ZinClear-IM® – new powder product (2)
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
Global Market for UV Absorbers (2009)
US Market for Zinc Oxide (2005)• Increased access to regional markets– North America
• Powder market approx. 4 x size of dispersion market
– Europe• 1.8 x North American market value• Favoured by large multinationals
– Japan• Predominantly a powder market with
significant zinc oxide penetration– Other Asia
• Less sophisticated but developing market• Timing is right for market entry
16%
84%
Dispersions Powders
Source: Confidential Report
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24 AUGUST 2011 21ANTARIA LIMITED
ZinClear-IM® – new powder product (3)
• Low risk extension of existing product range with established market access
• Development and launch progress:
• Funding required to meet above timetable– Product development– Plant and equipment
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
PendingConcept samples produced
CompleteProof of conceptOngoingRaw material optimisation
OngoingLaboratory to pilot scale-up
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24 AUGUST 2011 22ANTARIA LIMITED
Industrial market opportunities• Aluminium oxide (Alusion® extension)
– Licensed to Merck in 2009• Potential applications
– Coatings, printing, plastics and/or decorative applications – For example, pearlescent paint pigments for high-end
auto applications
• Zinc oxide (NanoZ®) • Antimicrobial applications
– Household products– Food contact materials– Medical dressings– Textiles
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
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24 AUGUST 2011 23ANTARIA LIMITED
Current research focus (1)
• Conventional zirconia nanoparticle ceramics– Existing ceramics often
too brittle for use in the engineering and biomedical sectors and therefore have only had limited use
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
• Antaria’s zirconia nanoparticles– Deliver superior mechanical
properties in finished components: fracture toughness, bending strength, hardness
– Sinter at reduced temperatures– Deliver near net shape ceramic
components
Irregular-shaped primary particles loosely packed into agglomerates
Arching effectDifficulty in particle rearrangementLeaving large pores
Spherical primary particles densely packed intoweak agglomerates
Inter-agglomerate pores easily collapse under pressure
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24 AUGUST 2011 24ANTARIA LIMITED
Current research focus (2)
• Zirconia ceramics project progress:
• Evaluation partner identified– Samples preparation underway– Project needs funding
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
CompleteProcess scale-up
PendingMarket potential/partner evaluation
CompleteProof of concept
CompleteFeasibility
OngoingBenchmarking vs commercial zirconia
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24 AUGUST 2011 25ANTARIA LIMITED
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
FY07 FY08 FY09 FY10 FY11
A$m Australia North America Europe & other
Platform for ProfitabilityPLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
• Positioned for strong global sales growth, higher margins and profitability– Grow ZinClear-IM®
revenues• Next generation products• UVA solution• Regulatory change
– Launch ZinClear-IM®
powder product– Capitalise on opportunities
for industrial applications– Develop ceramics product
and secure lead partner for commercialisation
New EU partners
build stock
Dow commences
Product launched
EU sales increase
substantiallyRevenues
tripled FY08 to FY10
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24 AUGUST 2011 26ANTARIA LIMITED
Capital raising – outline• 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:– Rights issue to raise approximately $3m
• 1 for 1 @ 1.3 cents per share• Lead underwriter KTM Capital (existing and new shareholders)
– Additional placement up to $1.5m• Existing and new shareholders• Subject (in part) to shareholder approval post rights issue
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24 AUGUST 2011 27ANTARIA LIMITED
Capital raising – use of funds
$0.6mInvestment in capacity, quality, cost reductionExisting products
$0.6mWorking capitalAll products
A$3.0mTotal
$0.4mPowder product developmentZinClear-IM® powder
$1.1mPowder plant and equipmentZinClear-IM® powder
$0.3mCeramics (Phase 1 only)New products
Use of FundsProjectProduct
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24 AUGUST 2011 28ANTARIA LIMITED
Corporate OverviewAs 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 Energenics9,090,910 expiring 30 June 2012 @ 30.8cEmployees1,000,000 expiring 30 June 2012 @ 20c
Market Capitalisation A$9.6 m @ 4.1 cps 17Aug11
52 week range 2.5 to 4.3 cents
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24 AUGUST 2011 29ANTARIA LIMITED
Profit & Loss
1,553k1,956kLoss < amortisation, impairment, tax
2,179k11,356kLoss > tax (refer note)
1,895k
463k
1,113k
736k17%
779k3,702k
4,481k
2010Full Year
1,791kCorporate expenses (excl. amortisation)
355kSales & marketing expenses
875kR&D expenses
391kOther income20%As at % of sales
1,077kGross Profit4,277kCost of Goods Sold
5,354kRevenue
2011 Full Year
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
Note:2010: Includes amortisation expense $607k, impairment expense $3,902k, tax expense $4,891k2011: Includes impairment expense $626k
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24 AUGUST 2011 30ANTARIA LIMITED
Balance Sheet
9595kOther non-current assets
3,791k4,721kTotal Liabilities
1,337k1,761kOther Liabilities & Provisions
1,664k1,805kNet Tangible Assets
2,454k2,960kDeferred income
0.71 cps0.80 cpsNet Tangible Assets per share
Nil
1,845k
Nil
1,750k
4,681k
797k
1,757k
2,127k
30 June 2010
NilDebt
1,586kTotal Non-Current Assets
NilIntangibles & deferred tax assets
1,491kProperty, plant and equipment
3,869kTotal Current Assets
717kReceivables and other current assets
813kInventories
2,339kCash
30 June 2011
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24 AUGUST 2011 31ANTARIA LIMITED
Forward Looking StatementsThis 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 to risks, uncertainties and other factors, many of which are outside the control of the Company, which could cause actual results and events to differ materially from such statements.
Antaria makes no undertaking to subsequently update or revise the forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation.
PLATFORM PRODUCTS PARTNERS PIPELINE PROFIT
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