Alexium International Group Limited · ASX:AJX
Alexium International — FY2020 Earnings Presentation
23 slides from Alexium International's earnings presentation, Aug 28, 2020
Slide 1: 2020 Full Year Results
ALEXIUM INTERNATIONAL GROUP LIMITED 2020 Full Year Results 28 August 2020 ABN 91 064 820 408 PRESENTED IN US DOLLARS
Slide 2: Disclaimer
Disclaimer To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever being accepted by Alexium International Group Limited (Alexium) or any of its related entities or their respective directors or officers, employees, advisors an
Slide 3: Summary and Outlook
Summary and Outlook ALEXIUM
Slide 4: Progress made in FY2020
Progress made in FY2020 Solid year on year revenue and Significant progress on new margin growth despite COVID-19 product development activities Successful capital raise to refinance Strong industry capability and expensive debt arrangements and experience added to the Board fund commercialisation o
Slide 5: Financial Snapshot
Financial Snapshot Improvements throughout the financial reporting sections versus FY2019 Revenue Growth Gross Margin Operating Expenses $6.0M 31.7% 38.1% $4.4M 20.2% FY19 FY20 FY19 FY20 Revenue growth of 20.2% despite being Improvement of 640 bps Favorable Operating expenses – reduced by negatively
Slide 6: Financial Snapshot (cont.)
Financial Snapshot (cont.) Capital structure re-set eliminates high cost debt, provides funding required to realise the numerous near-term growth opportunities and introduces new cornerstone institutional investor $15.1M successfully raised in December 2019 / January 2020 with proceeds used to ret
Slide 7: Alexium at a Glance
Alexium at a Glance Alexium has made tangible progress over the past 2 years to reposition the business for future growth Dr Bob Brookins appointed as CEO in July 2018 Experienced advanced materials sciences Jason Lewis appointed as CFO in October 2018 management team Allen Reihman appointed as CCO
Slide 8: Financial Snapshot (cont.)
Financial Snapshot (cont.) Deliberate and systematic changes throughout the company manifest conclusive results H2 impacted by product COVID created short mix term downturn in H2 Cost reductions continue in H2 Continued move towards being EBITDA positive All values in USD and thousands unless otherw
Slide 9: COVID-19 Impact
COVID-19 Impact • Impact on Fourth Quarter • Sales orders were impacted in April and May then rebounded in June • Continuous communication with customers on their operations • Closely monitored suppliers and inventory suppliers; contract manufacturers remained operational • Employee related • Implem
Slide 10: Summary of Achievements
Summary of Achievements FY11 – FY18 FY19 FY20 FY21 FY22 Invest in world Foundation for growth Commercialise world Accelerate revenue Deliver meaningful leading R&D leading technologies growth shareholder returns >$25m invested over 7 years New management team Commercialise and new o Grow Alexi
Slide 11: Near Term Target Markets Expected to be Realised in FY21
Near Term Target Markets Expected to be Realised in FY21 Strong progress has been made over the last 6 months, with the next 12-18 months representing an important period of commercialisation Program Current Status Anticipated revenue realisation profile 1H-FY21 2H-FY21 1H-FY22 2H-FY22 1. General Al
Slide 12: Alexium’s key growth pillars
Alexium’s key growth pillars Alexium has a defined set of near term growth pillars which when realised will create an attractive portfolio of patented products servicing large global markets Product Cooling Fire Retardant Market US Bedding General Military General Alexicool® Sales Alexicool® Total M
Slide 13: Initiatives Update
Initiatives Update ALEXIUM
Slide 14: Expansion of Alexicool® Products in US Bedding Market
Expansion of Alexicool® Products in US Bedding Market FY 2020 Overview Sales Up 20% vs FY19 Market penetration across all three Key Milestones Completed market segments (ahead of schedule) Finalise testing of Total 2H FY2020 Mattress Cooling Systems 12-Month Plan (TMCS) • Over the past year, Alexium
Slide 15: Alexiflam® NF-treated Cotton Socks for Protection of Foam Mattresses
Alexiflam® NF-treated Cotton Socks for Protection of Foam Mattresses FY 2020 Overview In FY2020 the drive for the Company was preparing Alexiflam® NF for application to cotton socks. All our work here has accomplished this: Cost & supply chain models established Completed production scale work o
Slide 16: Expansion of Applicable Markets for Alexiflam® Products
Expansion of Applicable Markets for Alexiflam® Products FY 2020 Overview • Supply & Evaluation Agreement signed with a major flame-retardant chemical company Wash Durable Flame Retardant (“Business Partner) for the commercialisation of Alexiflam® NF in target markets NF • Framework addresses scope &
Slide 17: Flame Retardation of Nylon/Cotton (NyCo) Fabrics for Military Applications
Flame Retardation of Nylon/Cotton (NyCo) Fabrics for Military Applications FY 2020 Overview • Alexiflam® products have been adjusted to conform to the Pine Belt manufacturing process and promote even chemical application • Key technical insights have been gained to further improve product’s value pr
Slide 18: Financial Results
Financial Results
Slide 19: Profit & Loss Statement
Profit & Loss Statement • Revenue growth from new customers of Alexicool® products in the FY20 FY19 (USD) (USD) Change % Change three categories of Foam, Top of Bed and Textile along with Sales Revenue 6,079 5,059 1,020 20.2% increased revenue from current customers Cost of Goods Sold 3,766 3,453 (3
Slide 20: Cash Flow Statement
Cash Flow Statement FY 20 FY 19 • Operating Activities USD USD • Cash collections increased with increased revenue, no collection issues Cash flow from operating activities • Payments for raw materials and manufacturing increased $1.1M with Receipts from customers and other income 6,422 4,845 increa
Slide 21: Balance Sheet
Balance Sheet Current Assets FY20 USD FY19 USD Cash and cash equivalents 4,741 3,843 • Working Capital Trade and other receivables 980 962 • Tight controls on working capital resulted in the ability to respond quickly in Q4 Inventories 922 1,153 Other current assets 42 75 and maintain appropriate le
Slide 22: Appendices
Appendices
Slide 23: Non-GAAP Financial Measure Reconciliation
Non-GAAP Financial Measure Reconciliation Reconciliation of Operating EBITDA (non-GAAP financial measure) to statutory Net Profit/(Loss) FY20 FY19 (USD) (USD) Net Loss for the period (6,125) (6,940) The consolidated financial statements of the Group are general purpose financial Add statements which
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