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PureCircle Limited : FY2011 – Interim Results Investors March 2011
Disclaimer
• This document, which is personal to the recipient and has been issued by PureCircle Limited (the “Company”), comprises written materials/slides for presentations to be held in March 2011. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company.
• This document has not been verified, does not purport to contain all information that a prospective investor may require and is subject to updating, revision and amending. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. In furnishing this document, the Company does not undertake or agree to any obligation to provide the attendees with access to any additional information or to update this document or to correct any inaccuracies in, or omissions from, this document that may become apparent.
• No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of or any of its members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.
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• Certain statements, beliefs and opinions in this document, are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document.
• By attending the telephone call presentation to which this document relates or by accepting this document in any other way you agree to be bound by the foregoing provisions.
PureCircle - Investor Slides - All rights reserved March 2011
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Content
1. Overview CEO
2. Financials CFO
3. Sales and Marketing VP Sales & Marketing
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3. Sales and Marketing VP Sales & Marketing
4. Outlook CEO
5. Questions
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PureCircle - Investor Slides - All rights reserved March 2011
1. Overview CEO
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PureCircle - Investor Slides - All rights reserved March 2011
• Sales: Timing of contracted volumes; will be sold in 2H FY 2011
• Gross assets of $270m, including inventories of $114m.
• Cash and banking facility headroom >$50m: sufficient for projected funding needs.
• Two new Global Key Accounts (GKA’s) contracts secured and two GKA contracts extended and deepened.
• Excluding existing GKAs, Stevia sales increased over 200%
OVERVIEW
• Excluding existing GKAs, Stevia sales increased over 200%
• FY 2011 sales expected to be in the range $50m to $60m.
• USA 2010 retail data: Stevia sweetened products $809m, up 126%.PCL total share in excess of 90%* (exclude TT and include indirect).
• Regulatory clearances expected Europe & Asia Pacific by end 2011
• Tereos and Nordzucker JVs and Dohler partnership now operational.
• Supply chain progress on track5
PureCircle - Investor Slides - All rights reserved March 2011
2. Financials CFO
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PureCircle - Investor Slides - All rights reserved March 2011
$m6 months ended
H1 FY 201131 Dec 2010
H1 FY 201031 Dec 2009
Financials Summary
Revenues 13.6 37.5
Net (Loss)/Profit (7.0) 1.6
EBITDA (1.1) 7.4
Financials Overview
EBITDA (1.1) 7.4
Gross Assets 270.4 271.1
Inventories 113.5 58.9
Gross cash 30.8 80.3
Net debt (76.7) (20.5)
PureCircle - Investor Slides - All rights reserved March 2011
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$m 1H FY 2011 1H FY 2010
Global Key Account 1 20
Other High Purity Sales 10 3
Sales analysis by half
Co-product & low purity sales 2 14
Total for half year 13 37
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PureCircle - Investor Slides - All rights reserved March 2011
$m6 months ended
H1 FY 2011 H1 FY 2010
Revenues 13.6 37.5
Gross Profit 0.9 10.2
Other income & expenses 0.4 0.0
Profit & Loss Account
Administrative expenses
Operating (Loss)/Profit
(5.2)
(3.9)
(5.8)
4.4
Interest / Tax (3.1) (2.8)
Net (Loss) / Profit (7.0) 1.6
EBITDA (1.1) 7.4
EPS: Basic / Diluted (4.54)/(4.44) 1.21/1.20
PureCircle - Investor Slides - All rights reserved March 2011
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$m H1 FY2011 H1 FY2010
Non-Current Assets 104.8 88.7
Working Capital
Current Assetsof which inventory
165.6113.5
182.458.9
Balance Sheet
Current Liabilities (35.6) (51.9)
Sub-total 130.0 130.5
Less: Non-Current Liabilities (82.7) (60.4)
Net Assets 152.1 158.8
PureCircle - Investor Slides - All rights reserved March 2011
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$m 31 Dec 2010 31 Dec 2009
Operating cash flow, before working capital
(4.9) 8.1
Net working capital change:(of which Inventory)
(18.9)(28.6)
(32.7)(27.2)
Interest / tax (4.2) (2.8)
Investing cash flow (4.4) (8.3)
Cash Flow
Cash flow: Operating & Investing (32.4) (35.7)
Share issue - 64.0
Net debt (repayment) / drawdown (1.1) 32.7
Forex 0.8 0.4
Net increase/(decrease) in cash (32.7) 61.4
Cash at beginning 62.6 18.9
Cash at end 29.9 80.3
PureCircle - Investor Slides - All rights reserved March 2011
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• $50m Cash and Facility Headroom
– Sufficient for projected funding requirements
• Net Debt of $77m:
– Financed business expansion and stock build
– Seasonal peak: expected to reduce steadily over next 18 – 24
Treasury
months
• No major capex foreseen over next 18 months
• Current inventories represent more than $150m sales value
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PureCircle - Investor Slides - All rights reserved March 2011
3. Sales and Marketing
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PureCircle - Investor Slides - All rights reserved March 2011
High Purity Stevia Revenues By Month
FY2011
FY2010
• Excludes sales to Beverage GKAs
• This represents 227% growth over the same time period last year
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PureCircle - Investor Slides - All rights reserved March 2011
FY2010
PureCircle USA YTD Customers Serviced By Month
40
50
60
70
80
• Between Feb 2010 and Feb 2011, USA customers grew from 33 to 72
• This represents a 118% increase in customers in the past 12 months
0
10
20
30
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PureCircle - Investor Slides - All rights reserved March 2011
Sales slower than anticipated due to estimated current
inventory at beverage GKAs (Reb A MT)
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* FDA Approval: 17/12/2008
PureCircle - Investor Slides - All rights reserved March 2011
Carbonated Soft Drink Category in the US have not
yet launched products using Reb A
Current customer inventory less than 3% of USA category potential 17
PureCircle - Investor Slides - All rights reserved March 2011
EU Approval expected for late 2011, is key to fulfill
Stevia Potential
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PureCircle - Investor Slides - All rights reserved March 2011
PureCircle Customer Product Pipeline–
Phases of Product Launch Cycle
69
50
60
70
80
32
15
4
0
4038
5
0
10
20
30
40
50
R&D Initial Launch Established Launch Multi-Market Rollout
2009
2010
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PureCircle - Investor Slides - All rights reserved March 2011
$934
$995
$846
$800
$1,000
$1,200 Annualized All Channel Retail Dollar Sales ($)-
Nielsen Captured
91%
Market : USA Retail Sales: Stevia Sweetened Products
$63
$434 $488
$443 $459
$-
$200
$400
$600
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010
91%
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PureCircle - Investor Slides - All rights reserved March 2011
Broadening Category Usage
100
120
140
160
Cereal
Dessert Mix
Energy Drink
Yogurt
Snack
Sports Drink
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PureCircle - Investor Slides - All rights reserved March 2011
0
20
40
60
80 Salad Dressing
RTD Tea
Powdered Soft Drink
Carbonated Soft Drink
Bread
Fruit Drink
Soymilk
Juice
Sugar Substitute
Flavored Water
Broadening F&B Customer Usage
100
120
140
160
Other
Unilever
Bimbo Bakeries
Interstate
Kraft
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PureCircle - Investor Slides - All rights reserved March 2011
-
20
40
60
80 Zevia
McNeil
Merisant
Dean Foods
Cumberland
Cargill/Truvia
Coca-Cola
PepsiCo
Recent New Product Launches
USA Launches
• Sobe Lifewater 0 extensions
• Trop50 extensions
• Silk Soymilk extension
• Vitamin Water Zero extension
• Arizona Tea for Kids
• Blue Sky Free energy drink
• Wishbone extensions
• Green Mountain Hot Apple Cider K-Cups
Australia Launch
• Equal Stevia sweetener
• Heinz Golden Circle
• Lipton Green Tea
• Schweppes Cottee’s Cordial Concentrate’
• P&N Beverages Go CoCo
Other Launches
• Lipton Form Plus tea (Turkey)
• So Sweet sweetener (India)
France Launch
• Danone Taillefine spoonable
yoghurt
• Fanta Still
• Beghin Say Ligne Stevia
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March 2011
Mexico New Product Launches w/Stevia
PureVia Table Top
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Bonafont Water with
Natural Lime Juice
Bonafont Flavoured WaterG2 by GATORADE
Lala FruggisLala Petizoo
PureCircle - Investor Slides - All rights reserved March 2011
Lala Chocolate
PureVia Table Top
4. Outlook
2525
PureCircle - Investor Slides - All rights reserved March 2011
Outlook
• Current pipeline suggests FY2011 sales outturn of $50m - $60m
• 2H Sales underpinned by balance of committed volumes & growing level of repeat orders
• Timing of EU and other clearances have deferred some customer projectscustomer projects
• Long term mass volume market assessment intact: PCL well placed when scaled market emerges
• True sales velocity not expected until Calendar 2012 and 2013
• Until then some continued short term sales volatility26
PureCircle - Investor Slides - All rights reserved March 2011
5. Questions
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PureCircle - Investor Slides - All rights reserved March 2011
PureCircle Limited : FY2011 – Interim Results Investors March 2011