De.mem Ltd. · ASX:DEM
De.mem — Investor Presentation (September 2024)
16 slides from De.mem's investor presentation, Sep 24, 2024
Slide 1: ASX Release: Investor Presentation
De.mem Limited (ASX:DEM) ACN 614 756 642 Registered Office Level 4, 96-100 Albert Road South Melbourne, Victoria 3205 (e) investor@demem.com.sg ASX RELEASE | De.mem Limited (ASX:DEM) INVESTOR PRESENTATION 24 September 2024: Australian headquartered, international water technology company De.mem Limi
Slide 2: Investor Presentation September 2024
De.mem Limited (ASX:DEM) For personal use only Investor Presentation September 2024
Slide 3: Contents
CONTENTS 2 3 Investment highlights For personal use only 4 Recurring revenue model 5 Large addressable market 6 Record results 7 Record growth momentum 8 Strong acquisition track record 9 Trading Update 10 Record outlook 11 Path to positive operating cashflow 12 Diversified product & services offeri
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS 3 On track for record CY2024 full year results, supported by record growth momentum and recurring cashflows Record results • Record half-year cash receipts of approximately $13.6m • Record 40% gross margins For personal use only • ~16% organic growth in 1H CY2024 Recurring reve
Slide 5: Recurring Revenue Model
RECURRING REVENUE MODEL 4 Demem generates more than 90% recurring revenues For personal use only Services Specialty Pumps, Services & Membrane Systems (BOO & O&M) Chemicals Equipment Build, Own, Operate (BOO) Supply containerized For water treatment Supply pumps, equipment involves leasing of water
Slide 6: Large, Highly Fragmented Market
LARGE, HIGHLY FRAGMENTED MARKET 5 The Australian market is highly fragmented, with multiple small operators in narrow niches and limited geographies. The global market is US$39 billion (4). DEM is the only provider of a complete decentralised wastewater treatment product & service offering across Au
Slide 7: Record Results
RECORD RESULTS 6 Record cash receipts and record full-year outlook 30000 only 24794 use(A$M) 25000 Q4 22929 Q3 Q2 19766 7110 20000 cash receipts Q1 6729 15948 5945 personal 15000 6055 13570 5590 5501 11706 5119 10000 3299 7010 3650 5836 5557 Quarterly 3402 5241 5000 3420 For 2992 6560 5142 5793 3288
Slide 8: Record Growth Momentum
RECORD GROWTH MOMENTUM 7 21 consecutive quarters cash receipts growth vs. prior corresponding period For personal use only Cash receipts (A$M)
Slide 9: Strong Acquisition Value-Add Track Record
STRONG ACQUISITION VALUE-ADD TRACK RECORD 8 Since 2019, Demem has successfully grown 4 bolt-on acquisitions by average ~63% Two recent acquisitions Border Pumpworks and Auswater Systems have grown +15% in July & August 2024 (unaudited) Acquired business revenue growth For personal use only $6.0 $3.6
Slide 10: Trading Update
TRADING UPDATE 9 +15% growth in recent acquisitions Border Pumpworks and Auswater Systems OPERATIONAL UPDATE Auswater Systems Pty Ltd – update For personal use only • Both revenue and cost synergies are being realized • Cross sales underway, including sales of pumps & chemicals to existing Auswater
Slide 11: Record Outlook
RECORD OUTLOOK 10 On track for record CY2024 cash receipts For personal use only Cash receipts (A$m) 34 32 Record full year 24 cash receipts outlook 1H cash receipts 30 2H cash receipts • Record 1HCY2024 cash receipts of 28 approximately $13.6m, 26 24.8 Annual cash receipts (A$m) 24 22.9 • Approxima
Slide 12: Pathway to Positive Operating Cashflow
PATHWAY TO POSITIVE OPERATING CASHFLOW 11 EBITDA (A$000s) 0 Path to positive operating cashflow use only DEM expects the following 2H 2024 factors to further -500 -393 improve EBITDA: • Organic growth (~16% in 1H24 and typically EBITDA (A$000s) -1,000 -754 higher revenue/cash receipts in 2H24) -1,50
Slide 13: Diversified Product & Services Offering
DIVERSIFIED PRODUCT & SERVICES OFFERING 12 Only ASX-listed company with fully diversified offering and Australian metropolitan and regional presence Packaged Membrane Systems Membrane Modules Membranes For personal use only Chemical Dosing Equipment Domestic Water Filters Water Treatment Chemicals S
Slide 14: Geographic Diversification
GEOGRAPHIC DIVERSIFICATION 13 Australia-wide offering including key regions of Kalgoorlie (Western Australia) and Albury-Wodonga (regional VIC/NSW) For personal use only Border Pumpworks Auswater Offices
Slide 15: Corporate Snapshot
CORPORATE SNAPSHOT 14 Over the last 12 months, De.mem has traded in line with ASX Small Industrials index ASX code DEM Ordinary shares ~292m NA Singapore Early-Stage Venture Fund 14.0% For personal use only MAJOR SHAREHOLDERS Market capitalisation $35m Perennial Value Microcap Opportunities Fund 13.
Slide 16: For personal use only
For personal use only Andreas Kroell Chief Executive Officer De.mem Limited investor@demem.com.sg Follow us on Linked In