Slide 1: Q1 report 2024
Q1 report 2024 Philip Chaabane, CEO Magnus Henell, CFO May 7th, 2024
Slide 2: Company, purpose and growth opportunity
COMPA NY Growth Opportunity • >20 available products using Total market opportunity for Selektope® Selektope®: 350-500 MUSD P URP O • 6 of the 9 largest paint companies SE • > 2500 ships using the technology. ? W HO COMPANY HOW? PURPOSE • Listed • Proven ingredient • Enhance the power of coatings •
Slide 3: Solid growth with record-high turnover and profit
Solid growth with record-high turnover and profit Sales 38,3 (30,8) MSEK growth “A group of three customer drive our top- line into all time high EBIT 24% (27) numbers.“ margin Net 8,6 (6,7) MSEK result
Slide 4: Selektope – in the right window of opportunity
Selektope® – in the right window of opportunity 1 2 3 Reduce Emissions Protect Marine Eco-systems Material optimisation Sea borne trade stands for 2.3 - Trend to move towards a more 2.6% of global CO2 emissions. 100 optimized biocidal composition in million tonnes CO2 potential paints for reduced le
Slide 5: PPG new product release
PPG new product release PPG unveils ultra low-friction, premium copper-free antifouling coating - PCE International (pce-international.com) PPG has launched PPG Nexeon 810 coating, an innovative copper-free antifouling developed with a strong emphasis on vessel performance, emissions reduction and s
Slide 6: Customer activity continues on compelling levels
Customer activity continues on compelling levels Updated time line. Customer • PPG launches Nexeon 810 A for Dry Docking (and new Customer building) B Customer • Over optimistic view from C our side on launch-time Customer line for customer G D Customer • A new customer as E entered commercial Custo
Slide 7: Selektope in focus at Tokyo Big Sight (Sea Japan)
Selektope in focus at Tokyo Big Sight (Sea Japan)
Slide 8: IMO goes Net-Zero on GHG by 2050
IMO goes Net-Zero on GHG by 2050 Indicative check point: Carbon 70% reduction Intensity of total annual Index GHG, striving (operational) for 80% 2030 2040 2050 40% reduction Net-Zero GHG of CO2 per emissions by Energy transport work. 2050 Efficiency (around 800 MT Design Index EU Emission Intro of
Slide 9: Our best quarter ever
Our best quarter ever Growth uptake Earnings increase despite tough cost absorption
Slide 10: Solid growth with record-high turnover and profit
” Solid growth with record-high turnover and profit ” First Quarter All amounts (MSEK) 2024 2023 Performance Jan-Mar Jan-Mar Net Sales 38.3 30.8 Gross margin 52% 52% EBITDA 11.2 10.3 EBIT 9.1 8.3 Operating cashflow 14.6 11.2 Cash balance 97.7 63.6 Key Developments Comments to the quarter • 24% growt
Slide 11: Debt free with room to wiggle
Debt free with room to wiggle • Higher profits reduces tax assets - soon leading into a tax payment position. All amounts (MSEK) 2024 2023 31-mar 31-mar • Good cash conversion from sales and low inventories gives as low as Intangibles assets 28.3 35.8 7% Net Working Capital (12M rolling turnover). T
Slide 12: Production in focus
Production in focus SUPPLIERS AMBITION AND TARGETS • Current main manufacturer continuously runs industrial • Secure supplier redundancy. scale production. • Increase production process yield to reduce cost and • Cooperation with second supplier on the verge to improve production sustainability. reo
Slide 13: Business out-look
Business out-look • Heading towards commercial relationship with 8 of the 9 largest makers. Opportunities • Operational improvement projects under way. • Technical milestones within reach to help drive volumes in dry-dockings. • EU/BPR ED process to be conclusive within ECHA over the year. May be a
Slide 14: www.i-tech.se www.selektope.com
www.i-tech.se www.selektope.com
Slide 15: Production in focus
Production in focus • Current main manufacturer continuously runs industrial scale production. Suppliers • Cooperation with second supplier on the verge to reopen. • Development investments made in third specialized contracted research and manufacturing supplier with aim for deliveries to start in Q
Slide 16: Regulatory milestone plan in EU
Regulatory milestone plan in EU If approval is recommended Legal actions possible if needed If non-approval is recommended Standing Committee on SEA Committee Biocidal Q1-Q2 2025 Products Socio-economic analysis Quick route: Q3 2024 BPC opinion July/August Long route: Q2-Q3 Revised opinion on 2025 (