De.mem Ltd. · ASX:DEM
De.mem — Investor Presentation (November 2018)
27 slides from De.mem's investor presentation, Nov 26, 2018
Slide 1: De.mem Limited Entitlement Offer Presentation
De.mem Limited (ASX:DEM) Entitlement Offer Presentation 26 November 2018
Slide 2: Overview - Planned Acquisition
Overview - Planned Acquisition
Slide 3: Planned Acquisition – Market Entry into Germany and Europe
Planned Acquisition – Market Entry into Germany and Europe Summary - “Target Company” De.mem has signed a non-binding term sheet to Location: Germany acquire 75% of the shares of a company based in Sector: Industrial Waste Water Treatment Germany supplying services and solutions for industrial waste
Slide 4: Deal Structure
Deal Structure • De.mem intends to buy 75% of the Target Company’s shares for approx. 865,000 A$ in cash (equivalent to a valuation of approx. 5x EBIT), plus associated legal and transaction costs • Planned closing date in early 2019 • The owner of the Target Company to remain with De.mem after the
Slide 5: Transaction Rationale
Transaction Rationale Strategic Financial Operational • Strategic milestone with • Target Company with stable • Highly complimentary product market entry into Germany revenues (approx. 1.8m A$ in lines and know how as Target and Europe – market size for 2017, unaudited) and positive Company’s produc
Slide 6: Overview - Entitlement Offer
Overview - Entitlement Offer
Slide 7: The Offer
The Offer • Pro-rata non-renounceable rights offer of 1 new share for 7 shares held by eligible shareholders at an issue price of $ 0.135 per new share (the “Issue”) • Issue price represents an approx. 25% discount on the 10 day VWAP and an approx. 20% on the closing price as of 23 November 2018 of
Slide 8: Use of Funds
Use of Funds • Planned Acquisition of proposed new project including related legal and other expenses (see Section 1): 950,000 A$ • Manufacturing and operating 500,000 A$ • Research & development: 200,000 A$ • Estimated cost of the Issue: 30,000 A$ • Working capital: 396,472 A$ • Total: 2,076,472 A$
Slide 9: Indicative Timetable
Indicative Timetable • Announcement and application for official quotation of new shares: 26 November 2018 • Section 708AA notice given to ASX: 26 November 2018 • Lodgement of offer document with ASX: 26 November 2018 • Notice provided to shareholders and option holders: 27 November 2018 • Existing
Slide 10: Corporate Overview
Corporate Overview
Slide 11: A Huge Market Opportunity: Decentralised Water Treatment
A Huge Market Opportunity: Decentralised Water Treatment • The global market for packaged / decentralised water treatment systems was valued at USD 12 billion in 2015 and is projected to reach USD 21.8 billion by 2021 - a compounded growth of 10.4% per annum* • Water pollution and scarcity among key
Slide 12: Overview
Overview Introduction Key Investment Proposition De.mem Group (DEM) is a DEM strives to become the market leader in the highly Singaporean-Australian fragmented de-centralised water treatment segment – company which builds de- centralised water treatment based on a range of new and revolutionary mem
Slide 13: Leading Expertise in Engineering & Design of Water & Wastewater Treatment Systems
Leading Expertise in Engineering & Design of Water & Wastewater Treatment Systems Potable Water Industrial Waste Water • De.mem builds, owns, operates and sells a wide range of decentralised water and waste water treatment systems – “packaged” or containerized and turn-key to the customer Sewage Pro
Slide 14: Underpinned by the Best Water & Wastewater Treatment Technologies
Underpinned by the Best Water & Wastewater Treatment Technologies • Collaboration with Nanyang Technological University, Singapore (“NTU”) – one of the world’s leading institutions for water technology R&D • NTU ranked no. 2 in membrane research worldwide by Lux Research (2013) • De.mem owns the exc
Slide 15: Financials
Financials • Revenue growth in CY17 from HY 2018 $0.3 to $2.9m A$ million 2016 2017 2018 Forecast • Cash receipts of $8.9m in 9 Revenues 0.3 2.9 6.0 10.0 – 12.0 months ended 30 Sep 2018 • Revenue forecast to grow further to COGS 0.4 2.4 4.5 n/a $10m-12m in CY18 based on strong sales pipeline in Aust
Slide 16: Blue Chip Customer Base
Blue Chip Customer Base De.mem Limited (ASX:DEM) - Entitlement Offer Presentation 16
Slide 17: Corporate Snapshot
Corporate Snapshot ASX code DEM Ordinary shares 107.7m Market capitalisation $18.3m Cash on hand (30 September 2018) $1.8m 50% Listed on ASX 7 April 2017 Issue price $0.20 50% Last price (23 November 2018) $0.17 52 week high $0.29 52 week low $0.12 GICS classification Utilities New Asia Investments
Slide 18: DEM: Excellent Leverage to Growth in Water Infrastructure Spending
DEM: Excellent Leverage to Growth in Water Infrastructure Spending Market Capitalisation Company HY18 Revenue (23 November 2018) Technology Market Focus A$44.0m* Fluence 6 months A$205m Aerobic waste water Municipal waste water ASX: FLC treatment (MABR) to 30/6/18 A$9.7m** Phoslock Water Solutions 6
Slide 19: Growth Plan
Growth Plan
Slide 20: Regional and International Expansion
Regional and International Expansion Germany / Europe • Strong demand for decentralised / China packaged solutions – in particular in • Tightening regulatory environment drives industrial waste water treatment demand for municipal and industrial water • Market size for sales of water treatment and w
Slide 21: Growing Intellectual Property Portfolio
Growing Intellectual Property Portfolio • Nanofiltration membrane • Ultrafiltration membrane Superior filtration performance due to minimum Maximizes rejection, flux and stability; in-house pore size at low pressure / energy consumption development Developed at and licensed from NTU • Microfiltratio
Slide 22: Near Term Growth Drivers
Near Term Growth Drivers ➢ Award of new customer contracts and further strengthening of order book ➢ Access to new technology / expansion of intellectual property portfolio ➢ Expansion into Germany and later to other European countries through planned acquisition ➢ Well placed to meet CY 2018 revenu
Slide 23: Appendix
Appendix
Slide 24: Board with Strong Industrial Background
Board with Strong 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 • Director New Asia • Partner & Director
Slide 25: Experienced Senior Management Team
Experienced Senior Management Team Shane Ayre Kian Lip Teo David Chua Nicanor Suarin General Manager, Chief Operating Officer, Director, Membrane Chief Engineer, Australia Singapore Manufacturing, Singapore Singapore • Founder of • Lien Aid • Mann+Hummel • Hyflux Akwa-Worx • Bachelor/Master, • Hyflu
Slide 26: Legal Disclaimer
Legal Disclaimer 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 of
Slide 27: De.mem Limited (ASX:DEM)
De.mem Limited (ASX:DEM) Andreas Kroell CEO De.mem Limited investor@demem.com.sg Media & Investor Enquires Henry Jordan Six Degrees Investor Relations henry.jordan@sdir.com.au +61 431 271 538