ersonal use only

Managing Director Report

6 Months to 31 Jan

2022

16 March 2022

ersonal use only

Vision, Values and Purpose Statement

Vision

To optimise the health and development of adults, infants and children.

Values

Respect, Response, Responsibility

Purpose

In collaboration with key market participants, Clover develops customised high value nutritional ingredients that enhance the wellbeing and dietary needs of their customers.

1

Half Year FY'22 Performance Highlights

♣ Total half year Revenue only $29.7m up 1.0% on

1HFY21 $29.4m

♣ NPAT $2.0m down 20.0% on 1HFY21 $2.5m

use♣ Underlying NPAT $2.6m allowing for legal costs to protect IP

ersonal♣and Melody Dairy costs Balance Sheet remains strong with cash of $8.0m

  • Operating Expenses

$5.9m up 28.3% (1HFY21 $4.6m) with continued focus on R&D development and ongoing legal engagement

  • Clover listed in Chinese GB license applications, with 1st trial orders received
  • Inventory at $32.3m up $1.5m on 1HFY21
  • Interim fully franked dividend 0.5c declared

2

COVID-19 Update

♣ Clover has continued managing the business to our COVID-19 safe plan with the focus on the health and safety of our employees, customers and suppliers

♣ Freight conditions for import and export have disrupted supply and increased

only

costs

♣ Clover maintains a high inventory position to act as a buffer to insufficient raw

material availability and maintain customer service

♣ Aggregate customer demand has been stable during the half year

use

♣ Customers' new projects have slowed as their employees continue to work

ersonal

from home

♣ More than 80% of Clover's customer base is located overseas and travel constraints have limited business development opportunities

3

Sales by Geography

1H22 Sales by Market

Americas

8%

Europe

ersonal use only

Europe

15%

Asia 43%

1H21 Sales by Market

Americas

8%

Europe

15%

Asia 38%

Australia/NZ

34%

Australia/NZ

39%

  • European sales are similar to 1H FY21 with COVID- 19 conditions continuing to make new product development difficult

Asia ANZ

  • Sales into Asia have improved compared to the prior year.
  • AU / NZ continue to be impacted by reduced demand from China and difficult manufacturing conditions driven by COVID-19 restrictions

Americas

  • Sales into the America's region have improved slightly
  • Most new projects remain on hold across North and South America

4

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Disclaimer

Clover Corporation Limited published this content on 15 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2022 21:57:02 UTC.