Slide 1: Akwa-Worx Acquisition Investor Presentation
For personal use only De.mem Limited (ASX:DEM) Akwa-Worx Acquisition Investor Presentation September 2017
Slide 2: Overview Transaction
For personal use only Overview Transaction
Slide 3: Acquisition of Akwa-Worx
TRANSACTION OVERVIEW Acquisition of Akwa-Worx For personal use only De.mem has acquired the operations of Akwa- Worx for A$1.5m in cash and A$460k in shares Australian based Akwa-Worx is a leading provider of water and waste-water treatment systems Revenue approximately Product lines include Ultra-F
Slide 4: Deal structure
TRANSACTION OVERVIEW Deal structure For personal use only Purchase price: A$1.96 million (A$1.5 million in cash / A$460k in shares) A$250k A$250k A$250k Subject to revenue target Subject to revenue target Subject to revenue target for the for H2 2017 (125k cash / 125k shares) for CY 2018 (125k cash
Slide 5: De.mem + Akwaworx = Accelerated Growth
TRANSACTION OVERVIEW De.mem + Akwaworx For personal use only = Accelerated Growth De.mem Akwa-Worx Together • Highly innovative, proprietary • Established and long term • Creating a market leading membrane products customer relationships, i.e. de-centralised water with leading players from treatment
Slide 6: About Akwa-Worx
For personal use only About Akwa-Worx
Slide 7: About Akwa-Worx
ABOUT AKWA-WORX About Akwa-Worx For personal use only REVENUE Established Key product lines A$7m (FY ended 30 Jun Water treatment 2017 - unaudited) 2002 MBRs Bioreactors Chemical Dosing Headquarters & manufacturing Employees Caboolture NORMALISED EBITDA QLD Group Structure 25 Akwa-Worx (equipment) 1
Slide 8: Areas of expertise
ABOUT AKWA-WORX Areas of expertise For personal use only ✓ Water Treatment ✓ Chemical injection systems ✓ HAZCHEM containers ✓ Sewage Treatment ✓ Bore water treatment ✓ Water Treatment Chemicals ✓ Filtration ✓ Water softeners ✓ Automatic Valving ✓ Potable water ✓ Resin filtration ✓ Remote monitoring
Slide 9: Sample Projects: Membrane-based water treatment plants
ABOUT AKWA-WORX Sample Projects: For personal use only Membrane-based water treatment plants Sewage Treatment Plant Sewage Treatment Plant MBR UF membranes Location Heron Island, QLD Location Papua New Guinea Description Submerged Membrane Bioreactor Description Ultrafiltration membrane based (MBR)
Slide 10: Sample projects: Long term Operations & Maintenance Contracts
ABOUT AKWA-WORX Sample projects: Long term For personal use only Operations & Maintenance Contracts Water Treatment Plant CENTRAL QLD Media filtration QLD Chloramination Package Chemical Dosing Skid NSW QLD Sewage Treatment Plant QLD De.mem Limited (ASX:DEM) Investor Presentation September 2017 10
Slide 11: Project experience
ABOUT AKWA-WORX Project experience For personal use only Akwa-Worx Civeo Monadelphous Civeo Mount Isa City Council Coppabella Sewage East Nogoa Water Coppabella Water Containerised Treatment Plant Treatment Plant Treatment Plant Re-Chlorination Coppabella, QLD Papua New Guinea Coppabella, QLD Packag
Slide 12: Project experience (Cont.)
ABOUT AKWA-WORX Project experience (Cont.) For personal use only Akwa-Worx Jacobs Ausco Modular Mining Industry Carwash facility with 20 bays Bulwer Island Containerised Sewage and Water Carwash Sewage Treatment Water Treatment Treatment Plants Greater Brisbane, QLD Plant Plant Papua New Guinea Bulw
Slide 13: Strategic Rationale
For personal use only Strategic Rationale
Slide 14: Business proposition & deal rationale
STRATEGIC RATIONALE Business proposition For personal use only & deal rationale The new group aims for accelerated growth through a number of key growth initiatives: The transaction creates • Fast roll out of De.mem’s innovative technologies a strong and integrated among Akwa-Worx’ customer base pla
Slide 15: Creating a leading player in de-centralised water treatment
STRATEGIC RATIONALE Creating a leading player in For personal use only de-centralised water treatment Expanded & integrated product offering: “Win-win” business model: Both De.mem and Akwa-Worx have a strong Highly flexible business model including focus on de-centralised, packaged water operations
Slide 16: Strong platform for roll-out of De.mem proprietary membrane technologies
STRATEGIC RATIONALE Strong platform for roll-out of For personal use only De.mem proprietary membrane technologies Expansion of Exclusive Reduced Commercial technology technology operating costs benefits portfolio De.mem has the exclusive Flagship product is the novel This unique technology is De.me
Slide 17: Accelerated growth prospects
STRATEGIC RATIONALE Accelerated growth prospects For personal use only De.mem expects a substantially faster revenue growth through: Opportunity for Geographic expansion Cross-Selling • Opening of a WA local office is an • The acquisition creates an immediate step for expansion: integrated provider
Slide 18: Economies of scale
STRATEGIC RATIONALE Economies of scale For personal use only Cost savings can be achieved through the following initiatives: The acquisition creates substantial “economies Alignment of key manufacturing processes such as process of scale” between the and system design, electronics, controls & monito
Slide 19: Group Strategy
For personal use only Group Strategy
Slide 20: Combined strategy
GROUP STRATEGY Combined strategy For personal use only Integrated Proprietary Process Flexible end products product offering technologies expertise for the customer Wide range of base • Low pressure, hollow • Engineering • Specialised products components, i.e. fibre nanofiltration - Containerised •
Slide 21: Highly scalable revenue model
GROUP STRATEGY Highly scalable revenue model For personal use only Build-Own-Operate or Equipment sales Pricing Customer base Build-Own-Transfer • Customer driven • Flexible pricing • Long-term, repeat • De.mem owns the structure customers equipment • Opportunity for ongoing maintenance • De.mem’s p
Slide 22: De.mem technology
GROUP STRATEGY De.mem technology For personal use only • De.mem commercialises a novel low pressure hollow fibre nanofiltration (NF) membrane developed at NTU in Singapore CLEAN WATER • The membrane can reduce power Nanofiltration consumption by up to 80% membrane fibres • Significant reduction in o
Slide 23: Extensive customer base
GROUP STRATEGY Extensive customer base For personal use only Historical and existing clients & partners Target sectors Industrial • Food & agriculture • Oil & gas • Electronics • Mining Municipal & residential Other De.mem Limited (ASX:DEM) Investor Presentation September 2017 23
Slide 24: Expanding into growth markets (China & Germany)
GROUP STRATEGY Expanding into growth markets (China & Germany) For personal use only Germany Vietnam • A$13 billion market 1 • A$1 billion market 3 • Started marketing De.mem • Established presence and manufacturing products in Germany in Q2 capability through De.mem • Short term expansion plans bas
Slide 25: Overview Corporate
For personal use only Overview Corporate
Slide 26: De.mem Limited
CORPORATE OVERVIEW De.mem Limited For personal use only (ASX:DEM) ASX code DEM Ordinary shares 95.8m Market capitalisation $30m Cash on hand (30.6.17) $3.8m 24% Listed on ASX 7 April 2017 Issue price $0.20 8% 68% Last price (12.09.17) $0.31 52 week high $0.50 52 week low $0.31 Average daily volume 1
Slide 27: Milestones since ASX IPO
CORPORATE OVERVIEW Milestones since ASX IPO For personal use only Listed on ASX Initiated waste New De.mem enters water treatment manufacturing into a $500,000 Awarded contract under existing facility in contract to sell a from new client BOO contract with Singapore water treatment Novaland Group in
Slide 28: Significant leverage play
CORPORATE OVERVIEW Significant leverage play For personal use only Market Capitalisation Company FY17 Revenue (13.9.17) Technology Market Focus A$0.4 m Fluence (formerly Emefcy) 6 months A$252m Aeration Municipal waste water ASX: FLC to 30/06/17 (Emefcy only) A$28.9 m CleanTeQ 12 months A$662m Ion e
Slide 29: Board with strong industrial background
CORPORATE OVERVIEW Board with strong For personal use only industrial background Cosimo Trimigliozzi Andreas Kroell Bernd Dautel Stuart Carmichael Michael Edwards Chairman CEO and Director Non-Executive Director Non-Executive Director Non-Executive Director • COO of Wild Flavors • Director New Asia
Slide 30: Experienced management team
CORPORATE OVERVIEW Experienced management team For personal use only Shane Ayre Kian Lip Teo David Chua Nicanor Suarin General Manager, Chief Operating Officer Director, Membrane Chief Engineer Akwa-Worx Manufacturing • Lien Aid (a Singapore • Hyflux • Founder of NGO focused on • Mann+Hummel • Doosa
Slide 31: Legal Disclaimer
Legal Disclaimer For personal use only 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
Slide 32: De.mem Limited contact details
For personal use only De.mem Limited (ASX:DEM) Andreas Kroell CEO De.mem Limited investor@demem.com.sg Corporate Enquiries Shane Wee Director Alto Capital shane@altocapital.com.au Media & Investor Enquires Julia Maguire Director The Capital Network julia@thecapitalnetwork.com.au +61 419 815 386