Phoslock Environmental Technologies Limited · ASX:PET
Phoslock Environmental Technologies — Investor Presentation (March 2019)
23 slides from Phoslock Environmental Technologies's investor presentation, Mar 26, 2019
Slide 1: Business Overview
Business Overview A Global Environmental Technology Water Remediation Group Institutional Roadshow - March 2019
Slide 2: Disclaimer and Important Information
Disclaimer and Important Information This presentation does not constitute investment advice. Neither this presentation not the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in Phoslock Environmental Technol
Slide 3: PET Four Business Units
PET Four Business Units International Materials & Applications China Materials & Applications China Engineering Changxing Factory
Slide 4: Phoslock Water Treatment Material
Phoslock Water Treatment Material Environmental Friendly product that locks up Phosphorus Safely and Permanently • Invented by CSIRO (Australian Government) in 1990’s; • Environmental Friendly; safe for human and fish & aquatic plants; • Internationally Certified for use in Drinking Water Reservoirs
Slide 5: Financial Summary
Financial Summary • 2018 Revenue: $18.7m (up 129% YoY) • 2018 NPBT: $3.4m* (previously break-even) * excludes non cash accounting effect of May 2017 option issue Strong Operating Margins: > 50% Gross Profit Margin • 2019 Forecast Revenue: $27m-30m (up 53% YoY**) • 2019 Forecast NPBT: $6m–8m (up 105%
Slide 6: PET Operating Performance
PET Operating Performance Millions PET Operating Performance 35 30 Sales 20 bh 9 g 10 (5) 2015 2016 2017 2018 2019 (Forecast) -=Sales -= Gross Profit -—#Net Profit before Tax & Option Expense
Slide 7: What is Phoslock Environmental Technologies?
What is Phoslock Environmental Technologies? Water Engineering & Water Treatment Materials Environmental Group: ASX listed (Code: PET) International Water Treatment Business Using Phoslock® and other products to treat lake and rivers; Phoslock® is Clean, Green and Environmental Friendly to humans an
Slide 8: Why China?
Why China? • Chinese Central Government has committed US$1 Trillion to fix water and air quality over the next five years; 1.5% GDP • PET has entered into a Strategic Agreement with Beijing BHZQ Environmental Technology Company (BHZQ) to jointly work on water remediation projects throughout Asia • B
Slide 9: Beijing Enterprises Water Group (BEWG) Announcement
Beijing Enterprises Water Group (BEWG) Announcement In 2017 BEWG won 12 new projects with a total value of A$12bn (rmb58bn) Project #5 - Beijing Xinfeng River Valley PPP Project Project (initial) contract value A$800m (rmb4.2bn); increased to > A$1.1bn (rmb5bn) Project Term: 2 years plus 18 year mai
Slide 10: Cleaning up Beijing Canals: No effect on Plants or Fish
Cleaning up Beijing Canals: No effect on Plants or Fish The problem The solution Beijing Canal – March 2018 Same Beijing Canal – September 2018 A combination of Phoslock, zeolites, bacterial products and aeration used to turn an algae infested canal into clean industrial water. Phosphorus down 85% a
Slide 11: Wetland Projects in Beijing
Wetland Projects in Beijing Delivered 130,000 tons of Materials for Construction; GeoTextile cover Delivery of Zeolites Delivery of Volcanic Materials Site Preparation Laying of Geo Textile Protective Cover 11
Slide 12: PET Materials used in treating Black Odorous Water
PET Materials used in treating Black Odorous Water Ministry of Environmental Protection has launched supervision of severely-polluted regions to ensure: • Over 80% of the country's water to meet at least industrial but not drinking water use (Level III) standard by 2020 • Focus on the treatment of b
Slide 13: Changxing Factory and R&D Centre
Changxing Factory and R&D Centre Multi purpose factory in central China Readily Scalable Phoslock Production Line: • Current capacity 15,000tpa • 2nd production line can double production Video of Changxing Factory: www.phoslock.com.au/site/what-we-do/production-facility New Products: • Adding produ
Slide 14: Changxing Factory – 150km from Shanghai
Changxing Factory – 150km from Shanghai Main Central Eastern China Industrial Zone Changxing Factory l-------------------------- 300 km ----------------------l 14
Slide 15: PET International Business
PET International Business • Operating since 2005 • > 300 successful projects in 20 countries • Main focus is absorption of phosphorus in lakes, drinking water reservoirs, rivers, canals & wetlands using “Phoslock” • “Phoslock” product is proven technology (over 70 peer-reviewed technical papers); e
Slide 16: PET International Business – Large Lakes
PET International Business – Large Lakes GERMANY CANADA POLAND BRAZIL 16
Slide 17: Recent Applications – European Drinking Water Reservoir
Recent Applications – European Drinking Water Reservoir Breakthrough Application – Human Consumption Approval
Slide 18: Second Application to The Serpentine, London, UK
Second Application to The Serpentine, London, UK High Profile inner city Lake; Outstanding Results
Slide 19: Recent Applications - US Wetland/ Everglades Trial
Recent Applications - US Wetland/ Everglades Trial Huge Potential; Phoslock to absorb Phosphorus before entering Everglades
Slide 20: Why Invest in PET?
Why Invest in PET? Compelling Investment Case • PET has sales growth accelerating on robust margins • Diversified business mix of International and Chinese Water Treatment businesses and China Engineering & Contracting Business • Phoslock - Environmental Friendly product that locks up Phosphorus Saf
Slide 21: Capital Structure
Capital Structure Capital Structure (25th March, 2019) Company Name: Phoslock Environmental Technologies Limited ASX Code: PET Current Price: 38c Trading Range: (last 12 months) 26 – 48 Cents Total Issued Shares: 542.0m Total Issued Options: 20.5m* Market Capitalisation: A$206 m Options: 20.5m @ 10.
Slide 22: Major PET Shareholders
Major PET Shareholders Shareholder (including Related Parties) Number % of Total of Shares Shares Link Traders (Aust) Pty Ltd 1 88,214,250 16.27% ZZL Pty Ltd 2 36,666,667 6.76% Evan Clucas & Leanne Weston 3 16,306,646 3.01% Sail Ahead Pty Ltd Director 4 11,042,472 2.04% Lesweek Pty Ltd 5 10,131,284
Slide 23: ASX Code – PET
ASX Code – PET PET is included in the ASX All Ordinaries Index Suite 403 25 Lime Street Sydney NSW 2000 Australia Robert Schuitema – Managing Director m: + 61 (0) 412 305 442 e: rs@phoslock.com.au Michael Kotowicz – Investor Relations m: + 61 (0) 416 233 145 e: ir@phoslock.com.au Tel: +61 2 8014 761
Phoslock Environmental Technologies — Investor Presentation (March 2019) on 6ix