Phoslock Environmental Technologies Limited · ASX:PET
Phoslock Environmental Technologies — Macquarie Bank Emerging Leaders Conference 2019
18 slides from Phoslock Environmental Technologies's conference presentation, Nov 26, 2019
Slide 1: Macquarie Bank – Emerging Leaders Conference
Macquarie Bank – Emerging Leaders Conference 26 November 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: The Problem
The Problem Water Quality is a major GLOBAL PROBLEM Causes – excess Phosphorus entering canals, rivers, lakes Where does the Phosphorus come from : • Run-off water from agriculture (fertilisers used to enhance production) • Run-off water from livestock farms and processing • Run off water from urban
Slide 4: The Solution - PHOSLOCK®
The Solution - PHOSLOCK® Beijing Canal – March 2018 Same Beijing Canal – Sept 2018 4
Slide 5: PHOSLOCK® - The Product
PHOSLOCK® - The Product Environmental Friendly product that locks up Phosphorus safely and permanently • Invented by CSIRO (Australian Govt Science Organisation) in 1990’s; • Modified Bentonite Lanthanum product; • Environmental Friendly; safe for human and fish & aquatic plants; • Internationally C
Slide 6: PET Four Business Units
PET Four Business Units International Materials Changxing Factory China China Materials Materials China Engineering
Slide 7: Financial Summary – PET now has December Year End
Financial Summary – PET now has 31 December Year End • 2019 First Half Revenue $10.2m • 2019 First Half NPBT $1.7m Net Cash flow from Operations (January-September 2019): $7.3m • 2019 Forecast Revenue $27m-$30m • 2019 Forecast NPBT (before opt exp) $6-8m Jul-Dec 2019 Sales made up of approx 5,000 to
Slide 8: Sales versus Cash Receipts
Sales versus Cash Receipts – strong Debtor payments
Slide 9: Chinese Operations
Chinese Operations All Chinese Subsidiaries are 100% owned by PET Payments from Chinese Subsidiaries to PET Australia Agreements in place for Chinese Subsidiaries to pay PET Australia in cash for: - Group Services provided to Chinese Subsidiaries; - Technology Services provided to Chinese Subsidiari
Slide 10: 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 11: FY 2020 Outlook
FY 2020 Outlook Forecast Phoslock Sales in the range of 10,000-20,000 tons on known projects Significant Engineering project work Forecast Phoslock Production of 25,000-30,000 tons Over 5,000-10,000 tons of Phoslock available for sale in FY2020 to meet new projects and pipeline projects bought forwa
Slide 12: Changxing Factory and R&D Centre
Changxing Factory and R&D Centre Multi purpose factory – 150km west of Shanghai manufacturing Phoslock® Current factory Production Capacity increased to 20,000tpa - Record production of 58.5 tons per day; routinely 50-58 tons per day Second production line capacity at Changxing of 20,000tpa – in pro
Slide 13: Total Addressable Market – THE WORLD
Total Addressable Market – THE WORLD Large Government Funded Projects
Slide 14: China – enormous market with large Government Funding
China – enormous market with large Government Funding Team of 60 PET employees working in China • Beijing – China HQ; sales; engineering team; project management • Changxing (150km inland from Shanghai) – factory; R&D; sales • Kunming/Wuhan/Nanjing – sales; project management offices • Wuhan – sales
Slide 15: US Wetland/ Everglades
US Wetland/ Everglades Huge Potential; Phoslock to absorb Phosphorus before entering Wetlands/ Everglades 400 tons (16,000 25kg bags) being applied in December 2019-February 2020 United States – nearly 3,000 tons since 2012 – large expanding market
Slide 16: ZEEP – Reusable and Recyclable
ZEEP – Reusable and Recyclable ZEEP manufacture Supplied as ZEEP regeneration. P extracted replaceable filter as liquid fertilizer cartridge/”teabag” ZEEP installed in rivers/canals P saturated ZEEP is removed Saturated ZEEP sold as soil for recovery. conditioning fertilizer New ZEEP installed.
Slide 17: Shareholder Information
Shareholder Information Capital Structure (25th November, 2019) Company Name: Phoslock Environmental Technologies Limited ASX Code: PET Trading Range: (last 12 months) $0.32 - $1.60 Total Issued Shares: 564.4m Shares Total Unlisted Employee Options: 10.45m Options Total Number of Shareholders: 6,550
Slide 18: ASX Code – PET
ASX Code – PET PET is included in the ASX 300 Index Suite 403 25 Lime Street Sydney NSW 2000 Australia Robert Schuitema – Managing Director e: rs@phoslock.com.au Michael Kotowicz – Investor Relations e: ir@phoslock.com.au Tel: +61 2 8014 7611 Web: www.phoslock.com.au 18
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