Slide 1: De.mem Limited Investor Presentation
De.mem Limited (ASX:DEM) Investor Presentation 6 June 2019
Slide 2: Contents
CONTENTS 3 LARGE ADDRESSABLE MARKET 4 BUSINESS OVERVIEW 5 KEY INVESTMENT CONSIDERATIONS 6 COPORATE SNAPSHOT 7 FINANCIAL OVERVIEW 8 ATTRACTIVE RELATIVE VAULATION 9 STRONG CUSTOMER VALUE PROPOSITON 10 GROWING ANNUITY REVENUES 11 BLUE CHIP CUSTOMER BASE 12 EXPANSION PLAN 14 DOMESTIC WATER FILTRATION SY
Slide 3: Large Addressable Market Opportunity: Decentralised Water Treatment
LARGE ADDRESSABLE MARKET OPPORTUNITY: DECENTRALISED WATER TREATMENT 3 • The global market for packaged / decentralised water treatment systems was valued at USD 12 billion in 2015 and is projected to reach USD 21.8 billion by 2021 - a compounded growth of 10.4% per annum* • Decentralised (ie. smalle
Slide 4: Business Overview
BUSINESS OVERVIEW 4 KEY INVESTMENT PROPOSITION De.mem is on a clear track to become the leading player in de-centralized water treatment in Australia and the Asia-Pacific region, based on a suite of proven, disruptive, easy-to-scale membrane technologies targeting a huge addressable market Introduct
Slide 5: Key Investment Considerations
KEY INVESTMENT CONSIDERATIONS 5 Uniquely positioned to become the leading player in decentralized water treatment across APAC, providing a range of proven, world-class, highly scalable and potentially disruptive technologies to a large addressable market Proprietary technology – De.mem has access to
Slide 6: Corporate Snapshot
CORPORATE SNAPSHOT 6 ASX code DEM NA Singapore Early-Stage Venture Fundv 33.8% Ordinary shares 125.4m New Asia Investments Pte Ltd 9.6% MAJOR SHAREHOLDERS Market capitalisation $13.8m Cash on hand (31.03.19) $1.9m J P Morgan Nominees Australia Pty Limited 8.2% MARKET DATA Listed on ASX 7 April 2017
Slide 7: Financial Overview
FINANCIAL OVERVIEW 7 DEM is growing its recurring revenue base and has a visible path to sustainable operating cash positive • High revenue growth A$M (DEC YR END) 2016 2017 2018 from $0.3m in 2016 to $2.9m in 2017 and $10.5m 2018 Revenues 0.3 2.9 10.5 • Positive 2019 outlook COGS 0.4 2.4 7.9 run-ra
Slide 8: DEM: Attractive Relative Valuation
DEM: ATTRACTIVE RELATIVE VALUATION 8 DEM is attractively priced relative to its peer group Market Capitalisation Company CY18 Revenue Technology Market Focus (3 June 2019) Phoslock Water A$18.7m A$410m Chemicals to bind Prevention of algae growth Solutions 12 months phosphorus ASX: PET to 31/12/18 F
Slide 9: Strong Customer Value Proposition
STRONG CUSTOMER VALUE PROPOSITION 9 De.mem as a Total Water Management Solutions Provider: A “One-stop-shop” for the customer • Deep technical know-how based on long term experience and strong team • Access to proprietary products/components, deployed as part of the systems to provide a “competitive
Slide 10: Revenue Model Focus on Growing Annuity Revenues
REVENUE MODEL FOCUS ON GROWING ANNUITY REVENUES 10 Annuity revenues are approx. 35% of total revenues and growing Equipment sales Build-Own-Operate Operations Consumables Sales or Build-Own-Transfer and Maintenance • Sale of water and • De.mem owns the • De.mem operates • Includes the sale of waste
Slide 11: Blue Chip Customer Base
BLUE CHIP CUSTOMER BASE 11 Customers include global mining companies, large EPC contractors, municipalities, water utilities and multinational corporations Mining Municipal / Infrastructure Food & Beverage Other Industrial • Potable/sewage treatment • Potable • Key 2019 • Industrial waste water for
Slide 12: Expansion Plan
EXPANSION PLAN 12 DEM intends to expand into new geographies and new market segments, supported by the further expansion of the IP and product portfolio IMMEDIATE GROWTH PLAN (12 MONTHS) MEDIUM TERM GROWTH PLAN (1-3 YEARS) • Expansion into Food & Beverage segment • Expansion into other Industrial se
Slide 13: Regional and International Expansion
REGIONAL AND INTERNATIONAL EXPANSION 13 Currently, ~90% revenues are from Australia with further opportunity to grow Australian revenues and offshore at the same time Germany / Europe China Australia & Pacific • Strong demand for decentralised / • Tightening regulatory environment drives • Australia
Slide 14: New Product Launch: Domestic Point of Use Water Filter System
NEW PRODUCT LAUNCH: DOMESTIC “POINT OF USE” WATER FILTER SYSTEM 14 Recently entered domestic water solutions market through low-cost distribution partnership model • De.mem launched a new product line targeting domestic “point of use” water filtration, as announced on 18 July 2018 • The product uses
Slide 15: Strong Intellectual Property Portfolio
STRONG INTELLECTUAL PROPERTY PORTFOLIO 15 DEM product portfolio is a mix of proprietary, patented and third party distribution COMPLETED (2018) PLANNED (2019 FF) • Nanofiltration membrane • Microfiltration membrane – Superior filtration performance due to minimum – Large applicable market, including
Slide 16: Partnering with Leading Player in Water Treatment Research
PARTNERING WITH LEADING PLAYER IN WATER TREATMENT RESEARCH 16 Competitive advantage of collaboration with Nanyang Technological University (NTU), Singapore – one of the world’s leading institutions for water technology research & development • NTU ranked no. 2 in membrane research worldwide by Lux R
Slide 17: Board of Directors
BOARD OF DIRECTORS 17 Board has a strong industrial background Cosimo Trimigliozzi Bernd Dautel Stuart Carmichael Michael Edwards Chairman Non-Executive Director Non-Executive Director Non-Executive Director • COO of Wild Flavors • Director New Asia • Partner & Director • Non-Executive International
Slide 18: Senior Management
SENIOR MANAGEMENT 18 Highly experienced and committed management team Andreas Kroell Matt Howland David Chua Allan Afonso CEO and Director Group Sales Manager Director, Membrane Senior Operations Manufacturing Manager • Director New Asia • 20 years water • 10+ years experience • 20 years experience
Slide 19: Outlook
OUTLOOK 19 Revenue growth On track to exceed 2018 revenues. Visible path to sustainable operating cash positive Contracts Strong customer pipeline with ongoing new contract wins expected Expansion into new segments and new geographies Growing revenues in new target market of process water, to add to
Slide 20: Appendix A: Key Customer Contracts
20 APPENDIX A KEY CUSTOMER CONTRACTS
Slide 21: DEM: Contract Wins - 2019
DEM: CONTRACT WINS - 2019 21 2019 total initial value of new contract wins = A$3.58m Company Date Announced Description Initial Value Mulpha: A Malaysian Infrastructure 10-Apr-19 Delivery of a desalination plant in Queensland. $2.80 Investor Singapore-based distributor of water 26-Feb-19 First comme
Slide 22: DEM: Contract Wins - 2018
DEM: CONTRACT WINS - 2018 22 2018 total initial value of new contract wins = A$2.96m Company Date Announced Description Initial Value Municipal and Resource 10-Dec-18 Delivery of a chlorination system and sale of $0.35 Sector in Queensland membrane based water system JRK Group 11-Sep-18 Delivery of
Slide 23: DEM: Contract Wins - 2017
DEM: CONTRACT WINS - 2017 23 2017 total initial value of new contract wins = A$2.6m Initial Date Company Announced Description Value (A$M) - Delivery of an integrated portable water treatment system to JRK Group - JRK Group 22-Dec-17 - Delivery of equipment, particularly storage tanks $0.80 - Ausco
Slide 24: Appendix B: Sample Project References
24 APPENDIX B SAMPLE PROJECT REFERENCES
Slide 25: Selected Project References
SELECTED PROJECT REFERENCES 25 Industrial Waste Water Municipal / Potable Water Mining / Potable Water Mining / Potable Water & Sewage Food Industry Waste Nghe An Water Coppabella Water Sewage and Water Water Treatment Plant Treatment Plant Treatment Plants • Location: Singapore • Location: • Locati
Slide 26: Selected Project References (Cont.)
SELECTED PROJECT REFERENCES (CONT.) 26 Municipal / Sewage Treatment Municipal / Potable Water Industrial Waste Water Infrastructure / Waste Water Municipal Sewage Reservoir Oil & Gas Industry Vehicle Wash Bay Treatment Plant Re-Chlorination Waste Water Waste Water • Location: Queensland • Location:
Slide 27: Appendix C: Product and Technology Overview
27 APPENDIX C PRODUCT AND TECHNOLOGY OVERVIEW
Slide 28: Hollow Fibre Membranes: Working Principle
HOLLOW FIBRE MEMBRANES: WORKING PRINCIPLE 28 HF Membrane Bundles Membrane Modules De.mem offers a range of proprietary hollow fiber (HF) membrane technologies • The membranes/membrane modules serve as the key component (the actual filter) in De.mem’s water treatment systems • Membranes are a micropo
Slide 29: Filtration Spectrum
FILTRATION SPECTRUM ST Microscope Scanning Electron Microscope Optical Microscope Naked Eye lonic Range Molecular Range Macro MolecularRange Micro Particle Range Micrometers (p) Albumin Protein Yeast Cells Aqueous Salts Carbon Black Paint Pigment Hl Endotoxin/Pyrogen BACTERIA Beach Sand | Sugar | Gr
Slide 30: Membrane Manufacturing in Singapore
MEMBRANE MANUFACTURING IN SINGAPORE 30 De.mem is fully capable of producing a range of hollow fibre membrane technologies at its manufacturing facility in Singapore • With the proceeds from the IPO, De.mem started its own membrane manufacturing facility in Singapore • At the De.mem factory, differen
Slide 31: De.mem Ultrafiltration Membrane
DE.MEM ULTRAFILTRATION MEMBRANE 31 Ultrafiltration is an established technology with a very large addressable market Overview • Ultrafiltration (UF) is a membrane technology which can exclude particles in the size range between 10-100 nanometers • De.mem’s UF technology is a hollow fibre membrane ba
Slide 32: Low Pressure Hollow Fiber Nanofiltration Membrane
LOW PRESSURE HOLLOW FIBER NANOFILTRATION MEMBRANE 32 Low-pressure hollow-fibre Nanofiltration as a key innovation in the water treatment market Overview • Nanofiltration (NF) is a membrane technology which can exclude particles smaller than 10 nanometers • De.mem’s NF technology is a hollow fibre me
Slide 33: Hollow Fiber Forward Osmosis Membrane
HOLLOW FIBER FORWARD OSMOSIS MEMBRANE 33 Proven FO technology with large opportunity to scale Working Principle of Forward Osmosis Membrane Membrane Membrane Overview • Forward Osmosis (FO) is a membrane separation technology based on osmotic pressure differences, and does not use any external mecha
Slide 34: Food & Beverage Market Opportunity
FOOD & BEVERAGE MARKET OPPORTUNITY 34 Entry into lucrative food & beverage segment through Aromatec • As announced on 8 May 2018, De.mem took strategic stake (32%) in Aromatec Pte Ltd, a Singaporean company targeting the food & beverage industry as a joint venture between NTU, its scientists and DEM
Slide 35: Legal Disclaimer
LEGAL DISCLAIMER 35 This presentation has been prepared by De.mem Limited and its related entities (the “Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents
Slide 36: De.mem Limited Investor Enquiries
DE.MEM LIMITED (ASX:DEM) Andreas Kroell Chief Executive Officer De.mem Limited investor@demem.com.sg INVESTOR ENQUIRIES George Gabriel, CFA Managing Director Bletchley Park Capital investors@bletchleyparkcapital.com.au (03) 8686 9144