Alexium International Group Limited · ASX:AJX
Alexium International — Investor Presentation (September 2017)
35 slides from Alexium International's investor presentation, Sep 6, 2017
Slide 1: September 2017
For personal use only 1 September 2017
Slide 2: September 2017 Investor Presentation
2 September 2017 Investor Presentation For personal use only 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
Slide 3: Company Overview
3 Company Overview 12 Month Share Price Key Statistics For personal use only ASX Code AJX Current Share Price $0.50 52 Week High $0.76 52 Week Low $0.38 Shares on Issue ~306m Market Capitalisation ~$151m Cash (30 June 2017) $3.4m Revenue Growth Balance Sheet $14 Millions $12 30-Jun-17 30-Jun-16 Tota
Slide 4: Who We Are
4 September 2017 Investor Presentation For personal use only 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
Slide 5: Who are We?
5 Who are We? For personal use only ➢ Alexium International is a speciality chemicals developer based in Greer, South Carolina, USA, with its headquarters in Environmentally-Friendly FR Solutions Perth, WA. ➢ Focus on environmentally friendly, non-hazardous Flame Knowledgeable Formulation Experts Re
Slide 6: What do we produce?
6 What do we produce? For personal use only ➢ Capable of producing extremely ➢ Develop highly innovative and robust chemical wide range of cost–effective solutions ready-to-use at our customers facility chemical solutions at full from day one commercial volumes using a ➢ IP portfolio of 20+ global p
Slide 7: Business Model & Strategy
7 September 2017 Investor Presentation For personal use only 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
Slide 8: How our strategy will achieve results
For personal use only 8 How our strategy will achieve results ➢ Alexium team has over 150 years of collective experience in chemical synthesis, manufacturing, ➢ Leverage low-capital manufacturing strategy product development and sales and key relationship with major industry ➢ CEO and Chief Scientis
Slide 9: Alexium's Compelling Advantage
9 Alexium's Compelling Advantage For personal use only Meets textile industry’s and Award Winning Technology Cost and performance Lightweight, durable and can be regulators’ urgent demand for (WBT 2009, Frost & Sullivan Award, advantage over existing laundered “green” FR chemistry that passes TechCo
Slide 10: Where is our reach?
10 Where is our reach? Global Reach with a Simple Model For personal use only Global Business model ➢ R&D all undertaken at head office in Greer, South Carolina (major hub of industry and excellent transport links) ➢ Doesn’t manufacture, this is all outsourced to 12 producers around the world; no co
Slide 11: Why are We Different?
11 Why are We Different? For personal use only The Alexium Strategy ➢ Identify key markets in significant transition that are Expanding Novel Eco- underserved by current market players and/or Patent Friendly structure Portfolio Chemistry ➢ Provide unparalleled integration support with end user custo
Slide 12: Business Development Cycle
12 Business Development Cycle For personal use only Product testing Product manufacturer Raw material order Chemical supplier Commercial Supply of product production order Chemistry Commercial order production order Raw material delivery Commission finisher Toll manufacturer Supply of chemistry
Slide 13: Toll Manufacturing/Supply Chain
13 Toll Manufacturing/Supply Chain For personal use only Scale through asset-light operating model ➢ Strategic partnerships established to rapidly scale go-to-market capabilities. ➢ Manpak is in Australia, Brocolor in Germany; VLS in Belgium, Euroflam in the UK with the other partners being located
Slide 14: Partnerships
14 Partnerships For personal use only Alexium has established strategic partnerships in order to rapidly scale its go-to-market capabilities ➢ Partnerships were carefully selected according to geography and sector expertise ➢ 48 sales agents representing various Alexium target markets started in 201
Slide 15: Key Markets
15 September 2017 Investor Presentation For personal use only 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
Slide 16: Regulatory demands for environmentally and biologically friendly solutions
16 Regulatory demands for environmentally and biologically friendly solutions For personal use only Legislative changes to incumbent FR technology; Existing technology is progressively banned globally. ➢ EPA/EU moving to ban 65% of current FR chemistry The FR market is a US$7bn p.a. industry, with n
Slide 17: Fire Retardant Market
17 Fire Retardant Market Market Drivers Key Stats For personal use only ➢ Increasing amounts of goods being ➢ Operating in a US$7BN market which has a forecasted manufactured require FR treatments compound annual growth rate of ~5.7% until 2019 ➢ Stringent fire safety regulations causing ➢ 40 millio
Slide 18: PCM- A new standard in Textiles
18 PCM- A new standard in Textiles Alexicool, the break-through PCM chemistry that underpins the next wave of heat resistant and cooling fabrics/textiles for the For personal use only apparel, mattress and bed linen industries. What is a PCM? ➢ Alexicool is the chemistry that can improve the efficie
Slide 19: Market Opportunities
19 September 2017 Investor Presentation For personal use only 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
Slide 20: Alexium's Current Opportunities
20 Alexium’s Current Opportunities For personal use only 2017 Snapshot Defense Sector Military ➢ Successfully downselected for the Natick Green Initiative, additional grant funding expected 2Q 2015 ➢ Working directly with major prime contractor to the U.S. Army to develop and launch next- generation
Slide 21: Financial Analysis
21 September 2017 Investor Presentation For personal use only 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
Slide 22: Financial Overview
22 Financial Overview For personal use only Five Year Revenue Trend 25 $24.02M 20 MILLIONS 15 10 5 $3.41M $0.36M $0.24M $0.39M - 2013 2014 2015 2016 2017 ➢ Total revenue grew 604% over the prior fiscal year to $24.02M ➢ Margin on chemical sales grew by 13.3 percentage points
Slide 23: Financial Overview
23 Financial Overview For personal use only 2016 vs 2017 25 5.0% 1.24% ➢ Revenue from chemistry sales up 693% 20 0.0% from $3M to $24M MILLIONS 15 -5.0% 10 (12.08%) -10.0% ➢ Margin on chemical sales grew by 13.3 5 $3.0M $23.8M percentage points - -15.0% 2016 2017 Sales Revenue Gross Margin FY 2017 F
Slide 24: Financial Overview
24 Financial Overview For personal use only Q3 vs. Q4 ➢ Revenue increased by 15% in Q4 due to bedding 18.23% 7 20.0% sales ramping to record highs 6 15.0% 10.0% 5 ➢ Gross margins increased by 32.3 percentage points as MILLIONS 5.0% 4 3 0.0% ramp up in bedding sales allowed for better raw -5.0% 2 (14
Slide 25: 2017 Financial Results
25 2017 Financial Results For personal use only ➢ Revenue from chemistry sales up 693% from $3M to $24M Revenue from ordinary activities up 595% to 24,034,416 ➢ Margin on chemical sales grew by 13.3 Loss from ordinary activities for the period after down 21% to (12,155,268) percentage points tax att
Slide 26: Selling, General and Administrative Costs
26 Selling, General and Administrative Costs Current Period Previous Period % of Revenue % of Revenue For personal use only 2017 2016 2017 2016 Administrative expenses (1,512,740) (1,361,276) 6.29% 39.37% Depreciation and amortisation expenses (359,241) (204,473) 1.49% 5.91% Employee benefits expens
Slide 27: Cash Flow Statement
27 Cash Flow Statement CASH NEUTRALITY For personal use only 30-Jun-17 30-Jun-16 Cash flows from operating activities Receipts from customers 22,433,226 3,318,758 Payments to suppliers and employees -34,774,370 -13,515,181 ➢ Average monthly sales over $2.25M for the final quarter of Interest receive
Slide 28: 2018 Outlook
28 September 2017 Investor Presentation For personal use only 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
Slide 29: 2018 Outlook
29 2018 Outlook For personal use only ➢ MILITARY The Company will continue to work with strategic fabric and garment partners to advance its progress towards achieving major military contracts in FY2018. Work will focus on breathability and weight of the base fabric as durability of the flame retard
Slide 30: Management Bios and Company History
30 September 2017 Investor Presentation For personal use only 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
Slide 31: Board of Directors
31 Board of Directors Gavin Rezos – Non-Executive Chairman For personal use only ▪ Extensive international investment banking experience ▪ Held CEO & Board positions in successful technology companies in Australia, the UK, US & Singapore ▪ Former Non-Executive Director of Iluka Resources, Department
Slide 32: Executive Management
32 Executive Management For personal use only Dirk Van Hyning– Chief Executive Officer Dr. Van Hyning received his BS in Chemical Engineering from North Carolina State University before receiving his MS and Ph.D. in Chemical Engineering from The University of Illinois at Urban-Champaign. Dr. Van Hyn
Slide 33: Executive Management, Continued
33 Executive Management, Continued Mark Wise– Vice President of Investor Relations For personal use only Mr. Wise possesses over 30 years of experience in investment markets and previously was a Portfolio Manager in New York, where he managed portfolios of Asian and Australian equities. Mr. Wise ear
Slide 34: Company History
For personal use only Company History 34
Slide 35: Contact
For personal use only Contact: InvestorRelations@AlexiumInternational.com U.S.: +1.864.254.9923
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