Antaria Limited – Platform for Profitability For personal ... · PDF file• Total product sales Antaria Sales $-$1.0 $2.0 $3.0 $4.0 ... Chemical Co Final sales of nano-sized ZinClear

24 AUGUST 2011 1ANTARIA LIMITED

Antaria Limited – Platform for Profitability

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• 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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• 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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• 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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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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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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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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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

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nly


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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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


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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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)


Source: Confidential Report

North AmericaUS$118m

28%

China$27m

7%

EuropeUS$218m

52%

JapanUS$52m

13%

Europe North America China Japan


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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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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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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


“RonaFlair” is a Trade Mark of Merck KGaA

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• 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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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


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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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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


• Micron sized particle

• Lower cost base

• Modular capacity investment


• Improved quality

• Increased performance

• Higher SPF, higher UVA effectiveness

• Reduced cost of sunscreen

• Formulation flexibility

• 100% zinc oxide powder

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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


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North AmericaUS$118m

28%

China$27m

7%

EuropeUS$218m

52%

JapanUS$52m

13%



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


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• 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


PendingConcept samples produced

CompleteProof of conceptOngoingRaw material optimisation

OngoingLaboratory to pilot scale-up

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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


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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


• 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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Current research focus (2)

• Zirconia ceramics project progress:

• Evaluation partner identified– Samples preparation underway– Project needs funding


CompleteProcess scale-up

PendingMarket potential/partner evaluation

CompleteProof of concept

CompleteFeasibility

OngoingBenchmarking vs commercial zirconia

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$-

$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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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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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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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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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


Note:2010: Includes amortisation expense $607k, impairment expense $3,902k, tax expense $4,891k2011: Includes impairment expense $626k

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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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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.


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Documents

Antaria Limited – Platform for Profitability For personal ... · PDF file• Total product sales Antaria Sales $-$1.0 $2.0 $3.0 $4.0 ... Chemical Co Final sales of nano-sized ZinClear