De.mem Ltd. · ASX:DEM
De.mem — Merger or Acquisition (March 2021)
12 slides from De.mem's merger presentation, Mar 16, 2021
Slide 1: Proposed Acquisition Overview
For personal use only De.mem Limited (ASX:DEM) Proposed Acquisition Overview 16 March 2021
Slide 2: Contents
CONTENTS For personal use only 3 BUSINESS OVERVIEW 4 RECORD RESULTS 5 RECORD OUTLOOK 6 LARGE ADDRESSABLE MARKETS 7 ACQUISITION OVERVIEW 8 SIGNIFICANT SYNERGY POTENTIAL 9 MATERIAL CONTRACTS 10 CORPORATE OVERVIEW
Slide 3: Business Overview
BUSINESS OVERVIEW 3 De.mem PROVIDES A COMPLETE ONE-STOP SHOP For personal use only OF DECENTRALISED INDUSTRIAL WATER TREATMENT SOLUTIONS PRODUCTS • Equipment Sales: Decentralized (ie. on-site) water treatment systems • Recurring Income: Services; Leasing; Consumables sales (ie. chemicals, filters, p
Slide 4: Record Results
RECORD RESULTS 4 CY2020: A record-breaking year For personal use only • Record CY2020 cash receipts - $16.5m, up 41% • Record cash flow - inaugural cash positive +$544k, December Quarter 2020 • Record 58% recurring cash receipts - up from 38% in CY18 and 54% in CY19, comprising consumables sales (ch
Slide 5: Record Outlook
RECORD OUTLOOK 5 SIGNIFICANT CY2021 GROWTH EXPECTED UNDERPINNED BY RECURRING INCOME AND CONTRACTS For personal use only • Significant CY2021 growth expected • Visible ~$14m CY2021 cash receipts comprising ~$10m recurring and $4m contracts as at March 2021 (ie. ~85% of CY2020 cash receipts already vi
Slide 6: Large Addressable Markets
LARGE ADDRESSABLE MARKETS 6 GROWING AUSTRALIAN MARKET SHARE, WITH GLOBAL OPPORTUNITIES For personal use only AUSTRALIA: A$300m water treatment systems market, with cross-sell into ~$2 billion pumping and chemicals markets p.a. GLOBAL: US$21 billion, growing ~10.4% p.a US$21bn A$300m Global Australia
Slide 7: Acquisition Overview
ACQUISITION OVERVIEW 7 De.mem intends to acquire the assets of Capic, Capic is a well-established, Perth-based supplier of high-value add, specialty chemicals to blue-chip For personal use only mining clients, complementing De.mem and providing significant cross-sell potential About CAPIC COMPLETE A
Slide 8: Significant Synergy Potential
SIGNIFICANT SYNERGY POTENTIAL 8 Potential cross-sell De.mem products to Capic clients, and vice versa, with organic growth potential across Australia. De.mem has a very strong cross-sell track record – increasing Pumptech +67% and Geutec +18% For personal use only SYNERGY COMBINED ~A$19m proforma CY
Slide 9: Material Contracts - Average Contract Value CY2020
MATERIAL CONTRACTS - AVERAGE CONTRACT VALUE CY2020 9 2020 total initial value of announced De.mem new contract wins = A$5.17m Average Contract Value (ACV) = $861k, range from $0.4m to $2.6m For personal use only Company Date Description Value (A$m) Global leader in sustainable 12-Oct-2020 Sewater de
Slide 10: Corporate Snapshot
CORPORATE SNAPSHOT 10 Since August 2020, DEM has consistently outperformed the ASX Small Industrials index For personal use only ASX code DEM NA Singapore Early Stage Venture Fund 24.4% Ordinary shares 175.6m MAJOR SHAREHOLDERS Market capitalisation $61.0m Perennial Value Management Ltd 14.2% MARKET
Slide 11: Legal Disclaimer
LEGAL DISCLAIMER 11 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 12: De.mem Limited
For personal use only DE.MEM LIMITED (ASX:DEM) Andreas Kroell Chief Executive Officer De.mem Limited investor@demem.com.sg INVESTOR ENQUIRIES George Gabriel, CFA 0421 630 435