Good morning and welcome to the FY26 results presentation for Clover Corporation. I'm Peter Davey, the CEO and MD, and with me today is Andrew Allibon, who is the CFO and company secretary.

Go to the results page. A really strong year for the company.

In fact, a record year for the company, which I'm really proud of everybody that works here. It's been a wonderful year, a very difficult year to make the performance.

It just really shows that we've been on a path for long-term growth and it's delivering, and that's what we've been trying to achieve and will continue to do. The year was highlighted by $97.4 million in revenue, a 35.5% average gross margin across the business, a 4% improvement in margin.

The revenue growth was slightly ahead of our guidance, which was $92 to $96 million. It was 13% improvement upon what was very good FY26 at $86 million, and the gross margin is really testament to the innovation that we have in this business, where we've further increased the product mix and getting the benefits of our vertical integration strategy, which we'll talk to in more detail.

EBITDA at $17 million is up 4.7 on the prior year. Really driven by that sales growth and the gross margin improvement, but also our operating costs have been really held well in line as a percentage of our sales.

Net working capital has increased to $49.8 million. It's up 7.5 million on the prior year and it's really driven by increasing our inventory position by $19.8 million to meet the increased sales that we're getting through, especially across our ARA and fish oil products.

We've had to buy in more inventory to meet that forecasted demand. The balance sheet remains very strong.

We've got $7.2 million in cash and pleasingly, we have no more interest-bearing liabilities. NPAT at $10.5 million, up 50% from the prior year of $7 million with the increase drivers of lower expenses and an effective tax rate helping that number.

From that, the board has declared a final, fully franked dividend per share of 1.25 cent per share. Move on to the next slide.

This operational highlights page, really the middle of it stands out to say exactly what we do. The adherence to our growth strategy with investment in customer diversification and our new product development is what's delivering.

It's delivered improved revenue. It's delivered improved profit margins.

What it's really done is position us for long-term growth. We've got customers with unique products that have developed their solutions and they're utilizing our products in those, which is a real partnership in the marketplace that drives future long-term growth.

Across the year, we've seen significantly improved demand for our high-quality ARA products from the infant formula market. Melody Dairies has delivered a profit in line with our expectations, but most of all, it's delivered a reduced cost for our business, which is benefiting our margin position.

We've expanded our distribution network globally with 30 distributors now, and we have repaid all of our debt. Choline Excel has moved along.

We've gone into registration of product. We're now looking at commercial packaging options.

We've established a dedicated resource to help us enter the US nutraceuticals market, and Ecuador continues to deliver for the business, and we're looking at further increases in its capacity. All of which I'll go into a bit more detail.

The product mix slide, which we've shown several times now, really continues to show the success of our innovation strategy, which is diversifying our sales and our customer base. Now, when you look at that graph, the second half of FY26, nearly 2/3 of our sales are from 18 products.

Our traditional base products, which are three, one of which being oil, is now a smart 30, a 1/3 of our business, so that's really helped drive the margin position of the business. What it's really doing is helping our customers with solutions that are driving their businesses, which improves our demand overall.

Really, the story of the year has been two things. Western manufacturers, especially infant formula market, have done very well into the infant formula market of Asia and China and Greater China.

Then we've seen significantly increased demand for our ARA powder products. The ARA powder is a required inclusion in infant formula, and we have what we think, and as many of our customers do, the best-quality product in the world.

With that, we'll move on to the financials, and I'll let Andrew take those over. Thanks, Andrew.

Thank you, Peter. Peter's certainly highlighted the top line and the results in terms of margin over the course of the year, I won't labor over restating those numbers.

In terms of our revenue position, as it was highlighted, by a 13% increase, predominantly increases in the ANZ Western manufacturers with around a $10 million move year-on-year, and through our European, Middle East base of a $6 million increase, which offset some small declines through the Asian Americas. In reference to Peter's commentary there on Western manufacturers, that's where we've seen good growth and as Peter said, back into parts of China, the Asia market.

Again, Peter's highlighted there the margins, I won't spend too much time on those, and there may be questions at the end of the presentation. Our operating costs growth, an 8% increase, really reflects our continued investment in people across the business and across all areas, be it finance, sales, and research and development.

That's why costs are up there. Our new market development costs increased year-on-year, predominantly with the USA market expansion that we're undertaking, and again, we'll talk more to that later in the presentation.

Really pleasingly then with the NPAT growth and our EBITDA percentage continuing to increase. For those that have had the opportunity to look through the Appendix 4E in more detail, you'd certainly see that as part of our result, we endured or had to account for FX translation losses of $1.1 million.

Happy to talk to that a bit later as well. Great result in terms of EBIT.

Just moving to the next slide, which is cash flow. On the back of, I guess, great performance, we'd like to see more net cash inflows from operating activities.

What we've highlighted in this slide is the significant increase in inventory, with inventory 50% of it is raw materials, 50% of it is finished goods for FY26, and the requirement for higher levels of raw materials and finished goods really translates to the supply chain, the time and length of our supply chain. We've got the demand to meet customers' requirements, but we do need to order oil, we need to test the oil, we need to manufacture it into powder, we need to test the powder, we end up holding larger values of inventory, and that's fundamentally where the operating cash flows have gone over the course of the year.

Purchase of plant and equipment not significant, largely matching depreciation over the course of the year. With the performance of Melody Dairies, which is the loan to associates, there was a repayment of a short-term line that had been created some 18 months ago.

Pleasingly, they've been able to repay back some of that assistance. As Peter said, our interest-bearing liabilities for Clover have now been fully repaid, we're well positioned to move forward on our capital planning program, which again, we'll talk to a little bit later in the presentation.

I think in the half year's result, certainly the AGM last year, we sought shareholder approval for the company to support a acquisition of shares to satisfy future vesting rights around our long-term incentive scheme. We purchased $700,000 of shares, and that's detailed more fully in the annual accounts, and we'll continue to look at that position as we go forward over the course of the year.

We'll now move to the next slide, which is the balance sheet. Had references that it's considered a lazy balance sheet with zero debt, but pleasingly, the cash position, we've been able to maintain, trade receivables good collections over the course of the year and through to the end of the year.

The inventory, as I indicated, certainly up to support our customers. Trade payables, a little bit of extension, more timing related as we've purchased that inventory and hadn't settled debts with our trade payables suppliers.

In terms of our net asset growth, up $5.8 million year-on-year, a great outcome. I will now hand it back to Peter, I think a brief presentation and certainly questions later on.

I'll take you through the operational highlights of the year, and we'll turn to Ecuador first. Part of our vertical integration strategy has been the purchase and the construction of the Ecuador facility, where we sustainably extract tuna fish oil.

That investment is now representing a contribution to our overall margin position because we source the oil at cheaper cost. It now is 30% of our total raw material inputs in FY26, it's a a big part of our business.

We are continuing to negotiate for additional supply of tuna heads, effectively, the factory takes from the canning operations and the loining operations the head, which obviously doesn't go in the can. We take the head, which would either be dried as a meal, we extract the oil from it, and that's we bring it here to Australia then to to cleanse and then supply through our products.

We have invested in additional people during the year as we've grown the business, and we are committed at that site to source from suppliers who demonstrate sustainable fishing practices. It's quite a strict ruling and any of our suppliers have to meet EU standards, which are quite ruling.

The second part of our vertical integration strategy on the next slide is our New Zealand investment. We have a partnership in a in a facility there.

We are 44% owner of Melody Dairies, where we turn our oils into powders. It's it's been a a great year for that facility.

It's well managed. It's well run.

It's producing excellent-quality product, and it's become much more efficient in its operation. We have customers continuing to qualify the facility.

It is now operating at near full capacity 24/7, and Clover has got other facili- 50% of that powder. Weekly, we're utilizing the facility along with our other partners and shareholders, and we will continue to pursue that business for improved productivity and reduced costs across it.

Overall, both of those now are part of our vertical integration and contributing and helping that margin position for the business well for the future. Move on to some of our product story.

First one being choline, an update of where we are. Choline is a unique product where we've taken a choline product, we call it Choline Excel, we have encapsulated that, it's now a free-flowing white powder.

Traditionally, choline is a very difficult product to manufacture with, and we've been able to turn it into something that is very easy to manufacture with. It's very new still.

We've provided samples to select customers under very strict conditions until we got our PCT stage of intellectual property. We've applied for that.

Now, we've been granted the first step of that, which allows us to be a bit more open in terms of providing samples to customers for more trial work. The full patent protection follows that, but it won't be for 4 to 8 years, the PCT stage gives us a degree of protection in the marketplace.

We've gone through all the manufacturing trials, which has gone really well with a with a manufacturing partner. We're now looking at how we package that and the formats and and the equipment required so we can increase our production rates.

We have had customer trials since the first quarter of FY26 in non-infant applications. Generally, customer trials will go from 12 to 36 months.

It depends on the shelf life of their product, some will be relatively soon and some will be a lot longer. Overall, our current partner, and I expect that partner to be around for a long time, is relatively small.

It can't provide us with enough product to do some small food and nutraceutical business. We are generally looking for a larger scale manufacturing so we can enter into the infant formula market, and so we've got all different sorts of things we're pursuing: toll manufacturing, joint ventures, and acquisitions.

Everything's on the table at the moment because choline is going to be a wonderful product for this business going forward, and we need to be able to produce it at scale so that we can meet demand as it comes on. Move to the next slide.

Our two core ingredients that we microencapsulate and turn into powders are DHA, which is an omega-3, and ARA, which is an omega-6. I'll take those two products and I'll give you a bit more detail about them.

We have continued and will continue to invest in our R&D to create different alternatives and and different representations of these products. It's it's a major part of where our portfolio growth has been delivering in terms of revenue and differentiation of our product offering in the marketplace.

We have a whole range of products for the DHA of non-allergenic, high-fortification, and plant-based products, but we really provide to a customer as a solution that they can't get from anywhere else. These are unique products.

It allows us to have a great relationship with our customers, providing them with a solution to a problem they have and so they can create unique products themselves. We're expecting that our change in our distribution structure where we've aligned with external distribution businesses around the world will further grow that marketplace as that gives us entree into other customers that we normally couldn't access.

In the ARA growth market, we've seen really improved demand. We are known across infant formula marketplace for having an extremely high-quality product, and that has won us significant business over the last year, financial year.

Going into FY27, we're seeing some really good projections and growth and discussions with customers that will continue that growth in the market. Really, overall, we've we've seen good business last year, and we expect that to continue into FY27.

Then our diversification in that area is growing. We've added new packaging equipment that allows us to present the ARA product in different formats that allows us to enter into markets that we haven't normally been able to access.

Move on to something quite new is the US nutraceutical market. The the US market for nutraceuticals is enormous, and it has changed significantly over the years.

The market is now looking for alternatives to the softgels and capsules that has traditionally been using. Powders, gels, liquids, gummies is becoming the new part of that marketplace.

Why? Customers are are sick of taking pills.

They don't know how many pills they can take of a day. There's a much higher emphasis on taste and convenience of how products being delivered.

The sports nutrition market is growing. Seniors and children especially have difficulty swallowing pills and tablets, they're looking at different formats for delivery of their of their omega-3s generally.

The marketplace itself is is accepting and also requiring encapsulation technologies like ourselves, ours to deliver on those products. Our technology is really well delivered well positioned to deliver into nutraceutical formats.

You can't put straight oil into a powder or a gel or a liquid. You need to encapsulate it so it doesn't have the smell and taste, and our technology can deliver very high doses in very small particles.

We have employed a nutraceuticals expert that's going to focus on the strategy for that marketplace, and he's looking at supply chain considerations and potential partners for us to acquire, act- acquire or enter that marketplace with. We are using this as an entree to establish market presence in the USA for other products as well, like our gel form product.

We expect this to open the door for other opportunities for the business. We will see additional costs to the business driven by this.

Over the next 2 to 3 years, we will gradually increase our expense as we look to enter this marketplace and start to enact that strategy to grow the market into something new. It's another leg to the business of where we can find new growth for the company going forward.

We'll move on to the next slide. The strategy and outlook, everybody always looks at the outlook slide.

The strategic focus across the next year: choline will be a major market focus. We will we will release choline, although in limited volume until we get more capacity.

We will get more customer acceptance. We expect initial customer orders, and we will scale up manufacturing.

A large part of a new product introduction to the marketplace is its certification by customers and of the dryers itself. We find a customer, they have to do their own trial work and then they have to come and certify our manufacturing process.

There is time involved in this process. As I discussed, the US nutraceutical market is a new entry for us and we're looking for that for growth for the future.

We have established a distribution network across the world. We will look to develop that through a pipeline of new sales and new customer applications.

We will continue to invest in our facilities here and in people and potentially in other markets. We'll continue to focus on the development of our products and diversification.

It's a clear strategy which has delivered growth and good margin position for the business. We'll look to continued optimizing our supply chain and the cost structures associated with it.

By vertically integrating, we've we've delivered margin improvement with improved negotiation capabilities around buying products, but also the access directly of now supplying ourselves with a larger percentage of our own manufacturing and our own supply chain for raw materials. The story of the future will be managing our capital for future growth.

We will invest in future to continue growing this business, as this year has been a as a good testament to show what we've been able to do. As we look to the following year on the next slide for the FY27 outlook, Clover enters FY27 with a positive momentum supported by the demand for its products, our vertical integration into our supply chain, and the expansion of our distribution network.

All of those are contributing to the growth for the future. We do anticipate significant investment in the development and ongoing commercialization of our new products, and choline will take money to deliver to the marketplace.

It needs manufacturing capability. Based on the current market and global conditions, the board expects revenue for the first half of FY27 to be ahead of the prior corresponding period.

Thank you very much, and we will now open it up to questions. Happy to take your questions, and hopefully, we can answer them for you.

Hey, Peter and Andrew. Just on ARA, you called it out as quite a big contributor for growth this year.

Is that mostly in ANZ and also how should we think about the quantity and how much contributed growth this year versus how much we can expect in FY27 from ARA?

Thanks for the question, Caleb. It was a big contributor across the year.

I think we grew sales by $5 million across the entire year, was about $4 million of the second half. About 50% of the growth on the second half was driven by the ARA.

It was global, a lot of the sales went into the ANZ market, generally Asia, some China, and quite a bit into Europe. It's not with one customer, it's with many.

Look, the way we've entered that is we expect that to continue. We'll expect to see that second half continuing into the first half of this year.

Yeah. Thanks.

That inventory buildup, I think you guys went from about $35 to $44 mil, is that mostly ARA building up? Can we see that as a sign of sort of your confidence in FY27 sales?

Yes, you're right. It's a combination of both the DHA oils and the ARA, but significantly, ARA's a significantly higher-cost product to buy in the oil, and the supply chain for it is significantly longer.

We've had to buy in more inventory, and because we've had more sales into the European market, we've had to position finished inventory into the European market to support that growth. Yep, we're confident, as reflected in the outlook comments.

We expect to have a great first half.

Are you still going through sort of the qualifying processes with some customers to sort of establish ARA supply or are you sort of already qualified for the major customers?

Pretty much qualification's done. It's about more negotiation.

There are customers that are continuing to come to us for supply and the qualification's done. We're pretty much qualified across the world with our ARA product now.

Thanks. Just one final one from me.

On Europe and Middle East, that sort of fell a bit backwards in the second half. Is that to do with I think you highlighted before there was a Middle East customer you had that was quite significant.

Is it just them getting impacted by the war or?

No, not really.

Can you speak on that? No, I would say it's probably just more general timing.

There's transit issues that we deal with, some of that could have played out in timing of the sales, Caleb.

Yep. All right.

Thank you, guys. I'll jump back to the back of the queue.

Thank you.

Thanks, Caleb.

Hey, guys. Can you hear me?

Yes, Mark. We've got you.

Awesome. Just a question firstly around your second-biggest customer.

Can you maybe just talk through the drop in revenue with that customer and what you might be expecting to see in F27?

A little bit of a shift in the customer mix over the course of the year. I think we would see an increase in number two customer over the course of next year.

In terms of the second-biggest customer in particular, might you expect them to sort of return or surpass to their say F25 level?

Yes, we would. Yeah.

Terrific. Just my second question, it's I guess by exclusion, it's not necessarily financially or even commercially relevant, but just there's no mention of Premneo.

Can you maybe just give us an update on perhaps why that is the case?

I just didn't call it out. Premneo is maybe a little bit of an update for people that would be interested in it.

I suppose because it's not going to be delivering revenue soon, we decided we wouldn't call it out this year. It did achieve expert panel sign-off in the EU market, and it's now going for regulatory approval in the EU, Singapore, Canada, and Australia, New Zealand, we are in the process of preparing dossiers for those registrations.

We're in the starting process of doing a clinical trial for the Indian market, where it has to be registered as a pharmaceutical. We are negotiating the manufacturing contract for the product with an Indian manufacturer.

We expect product to be made, and we have employed a third-party business to help us with the commercialization of the product. That's probably 2 years off as we get the registration.

Because it's a bit of a long story, we decided we wouldn't report on it independently this year. Yes, there is progress on it.

In fact, when we got the EU regulation, I was pretty chuffed because it's taken us some 8 years to achieve that, it's a good step in the right direction.

Thanks very much, guys.

Thank you, Mark.

Hi, guys. Quick one.

Just on the ARA, how many months in the second half of the year did you benefit of, obviously there is the announcement from one of your competitors causing a few issues in the ARA market came out at the end of January, but how long did it take for you to sort of receive those first orders, and then basically what I'm asking is how many months did you sort of receive that benefit from?

Five 5 months of good growth. As I said earlier, we saw a $5 million increase in the ARA sales year-on-year.

We got a little bit in the first half, most of it in the second half. If we responded to it well.

We've benefited from a quality issue in the marketplace, which has given us some good growth, and we expect that to continue going forward.

Sure. I think in the chairman's letter, if it might have mentioned that he saw choline being a real driver of growth in FY28.

Realistically, what steps would you like to see in the next 12 months to make sure that we're on track with where choline should be?

The limiting step with choline is capacity. We have a current partner which we manufacture the product with, which allows us to do a limited release in FY27, in this financial year, but it's small, it's getting enough manufacturing capacity to be able to take it to a broader market.

We haven't been able to give it and show it to infant formula customers because we know that they will be desperate for our product and then we won't be able to meet their volume requirements. It's really getting the manufacturing capacity in place.

You may be aware from previous discussions, we were negotiating the purchase of a dryer, which we were very close to and it fell through, and literally, it's happened three times. We need capacity and then we would expect that to give us some good growth in the following year, and '28 we should see good sales out of it.

Sure, that makes sense. Obviously great result and congratulations.

That's all from me.

Thanks very much. Thanks, Sam.

Hi. Good morning,

guys.

Can you hear me all right?

Yes, we can hear you, Stella.

Right. Just continuing the last question.

In terms of what we expect to see for choline, should we see firstly, you get a capacity solution through either JV or buying a new dryer first, and then start trialing with your infant formula potential customers, followed by potentially some sales into infant formula in FY28?

Yes, we've got to get capacity before we can really offer it to the infant formula market. Once we've got that, they start doing trials with it, and you don't want them to start doing trials before you've got the capacity because it's going to create demand you can't fulfill.

Most infant formula customers would be a minimum of 12 months, it'd be late '28 I mentioned before unless we can get capacity quickly, and we haven't been able to achieve that so far.

I see. That's fair enough.

FY27 is a small sales contribution from the non-infant formula usage. It sounds like.

Correct, yeah.

We've

already got customers identified that will take the product, but we've got very limited production capacity to be able to meet any further demand.

Okay. You got capacity for what you're thinking you might supply in '27?

We don't release the numbers of our volume or value, we've got ideas, but we wouldn't want to discuss those.

Okay. Fair enough.

My second question is about the significant increase in investment for new markets. I assume you're talking mostly about the US market?

Yes, Stella. That's right.

Right. Just that the history of the company in US hasn't been that smooth, and indeed the sales seem to be declining, and I understand there might be some FX impact, but overall, last 10 years, if you look through the history, it hasn't been much uptick.

I hear your comments on the nutraceutical trend, but commercially, is there any other trigger that gives you the confidence to put down real dollars behind this new push and investment into market? Did I hear that you might even buy a sales or local partner there for the nutraceutical market?

The confidence is that there's a demand for alternative solutions to what currently is being offered in an extremely large market, and we have solutions that can fill that. We haven't made any decisions about how we're going into that marketplace, we've put a resource on that will look at that.

We would expect that will drive expenditure because we'll then have to work out how we do it, and that will probably be both through product strategy and through distribution strategy. I think the answer is that we're looking for partners that we will enter the marketplace with to help us get access.

Yes, we've had difficulty entering the US market. Traditionally, we get into marketplaces through the infant formula market.

The US market is quite protected. We have one customer in there that does significant business, but overall, we haven't been able to crack the rest of the market.

This is another segment where our products are very suitable for that we're going to spend some money and time on to add to the business. Of course, if we can see really good growth, we can get into nutraceuticals market through the US channel, we can then go and do it throughout the Asian markets and through European markets as well.

It's a new segment that we're looking at to try and get growth, and we've resourced it appropriately.

Right. Just last question from me, please, cuz ARA is a big driver of the growth and sounds like it's going to continue to stay into this current financial year.

Just wondering cuz that troubled other supplier in the market, they are trying very hard to get back into the supply chain of the previous customers. Base case scenario, should we expect at least some of the big customers would keep a diversified supply chain, hence at least you guys can maintain your status as a supplier, even if the currently troubled supplier gets some of their share back?

We are part of a diversified supply chain now. Customers generally won't buy off only one supplier, they'll normally have two to three suppliers.

In most cases, we would have 60 to 10% of people's business, because we will be one of multiple suppliers into a marketplace. Some of the larger business we've done on the back of the demand that's come through, we've actually contracted, it gives us a fair degree of certainty about the business going forward, and that's for longer term, not short term.

Will the supplier with quality issues get back in the marketplace? It's an opinion, but it's going to be very tough.

They've made a major error, and I don't think many customers and even Chinese suppliers will buy off them. Very difficult to see them ever getting back to the share that they had, which was quite significant.

Right. Thanks for that.

Thanks again for today's report.

Thanks for your interest, Stella, and Always online. Wonderful.

Thank you.