Calix Ltd. · ASX:CXL
Calix — Investor Presentation (March 2021)
37 slides from Calix's investor presentation, Mar 19, 2021
Slide 1: Calix Limited Opportunity
Calix Limited Opportunity Investor Presentation March, 2021 Solving global challenges 1
Slide 2: Important Disclaimer
Important Disclaimer IMPORTANT NOTICES The following disclaimer applies to this presentation. Please consider its contents carefully. By accepting this presentation, you acknowledge that you are receiving it on the Third party information basis set out in the following paragraphs. Certain market and
Slide 3: Mars is for quitters
We believe our responsibility starts at home. We believe our responsibility That’s why startswe’re driven at home. to use That’s why our unique we’re technology driven to touserepair, our unique preserveskillsand prevent to repair, futureand preserve harm toprevent it. future harm to it. Because the
Slide 4: Executive Summary
Executive Summary… Calix is undertaking a placement to accelerate growth from its core platform technology Calix Limited is developing multiple environmental business opportunities, all from the one core patented technology, including: • Water • CO2 mitigation Platform technology • Biotech • Advance
Slide 5: Introduction to Calix
Introduction to Calix Solving global challenges 5
Slide 6: It's not often an investing theme comes along
“It’s not often an investing theme comes along that is both certain, and certainly huge, but we’ve got one right now. The theme is climate change, or more specifically, the transition to a zero-carbon world.” Alan Kohler 13 Feb 2021 “The amount of money moving into ESG [environmental, social and gov
Slide 7: ESG a strengthening investment theme
Environment, Social, Governance (ESG) a strengthening investment theme Global economies, Companies and investment funds are all heading in one direction… ~ 50% of global GDP* More Top Companies ESG Exchange Traded Funds Nearly USD 3 trillion per and carbon emissions currently committing to net-zero
Slide 8: Developing multiple environmental business opportunities
Developing multiple environmental business opportunities… … all from the one core platform technology CO2 Advanced Sustainable Water Biotech Mitigation Batteries Processing • Water treatment • Cement • Crop protection • Advanced cathode • Mineral and • Aquaculture • Lime • Marine coatings & anode ma
Slide 9: Our core technology platform
Our core technology platform A patented platform technology with 3 key features CO2 capture A New Type of Kiln... When processing limestone, gas exhaust is high purity CO2 The “Calix Flash Calciner” or CFC 25 patent families covering core technology and applications Renewable >A$100m has been energy
Slide 10: Summary of results 1H FY21 – continued strong revenue growth
Summary of results 1H FY21 – continued strong revenue growth Sales revenues and project and grant revenues continue growth trajectory 18 114% 16 GROWTH to Key Take-aways… 16.4m 14 Strong growth in sales & total revenue 12 Gross profit & other income up strongly on growing 10 151% margins GROWTH to A
Slide 11: Our investment opportunity
Our investment opportunity Multiple “shots on goal” ESG opportunity using patented core platform technology CO2 Advanced Sustainable Water Biotech Mitigation Batteries Processing • Targeting safe, • Safe, environmentally • Direct CO2 separation • Safe, environmentally • Targeting renewable- environm
Slide 12: It's time to accelerate
It's time to accelerate… CO2 Advanced Sustainable Water Biotech Mitigation Batteries Processing Increasing concern wrt Waste water discharge Top economies, and Industrial processes Increasing concern wrt expensive battery limits becoming tougher cement companies, coming under increasing biocides and
Slide 13: Capital needs and targeted outcomes - Overview
Capital needs… and targeted outcomes - Overview Overall Investment A 12-month acceleration program… Breakdown 25% • Internal OPEX - New expert industry talent, in-house • Having proved business model, invest ahead of • External OPEX – R&D and deal progression (legal, S&P resource etc) 31% revenue ge
Slide 14: Capital needs and outcomes – Advanced Batteries
Capital needs… and outcomes – Advanced Batteries A 12-month acceleration program… $4.5m Current status Lab is not set up to deal with battery testing – currently fully out-sourced with slow turn-around Pouch cell testing is underway but will be limited given costs Expansion to full battery pack test
Slide 15: Advanced Batteries – latest developments continue to be very encouraging
Advanced Batteries – latest developments continue to be very encouraging ~10% performance uplift achieved in 3 months…early days* but continued very promising results Latest developments – “cracking the onion” We have continued to optimise our lithium manganese oxide (LMO) technology for lithium-ion
Slide 16: Capital needs and outcomes – Water
Capital needs… and outcomes – Water A 12-month acceleration program… $2.0m Current status US – business is commencing its growth trajectory well, although it could go quicker if we invest ahead of current cash generation EU – supporting product trials from Australia, especially given COVID, costs mo
Slide 17: Capital needs and outcomes – CO2 Mitigation
Capital needs… and outcomes – CO2 Mitigation A 12-month acceleration program… $1.5m Current status Development work largely covered by LEILAC-1 and LEILAC-2 projects However, in-bound enquiries requires Engineering and Commercial resource for feasibility studies and commercial development Investment
Slide 18: Capital needs and outcomes – Biotech
Capital needs… and outcomes – Biotech A 12-month acceleration program… $2.5m Current status AU regulatory – approvals slow – further test work being investigated EU regulatory – approvals will hinge on further test work – nano-forms and any chronic impacts New applications (Marine and Pharma) – limi
Slide 19: Capital needs and outcomes – Sustainable Processing
Capital needs… and outcomes – Sustainable Processing A 12-month acceleration program… $1.0m Current status Spodumene – early results very encouraging Refractories - early results very encouraging – phase 2 trial underway 1 x calcined clay (new cement formulation) application – early trials being pla
Slide 20: Our next 12 months' priorities
Our next 12 months’ priorities… REVENUES, MARGINS, PROJECT EXECUTION AND DEAL FLOW…AND ACCELERATION TARGET ITEMS CO2 Advanced Water Biotech Sustainable Processing Mitigation Batteries Revenue and Gross Cement and Lime Crop Protection Refractories Margin growth via… • Successful test • 2nd license ag
Slide 21: Equity Raising Summary
Equity Raising Summary 21
Slide 22: Offer details
Offer details Calix Limited (“Calix ” or the Company”) is seeking to raise A$14 million via the placement of 7 million new fully paid ordinary shares (“New Shares”) to sophisticated and professional investors. Offer Size and Structure The Placement will take place in a single tranche and fall within
Slide 23: Use of funds
Use of funds Proceeds will be used to accelerate growth across all lines of business Commentary on use of proceeds Sources A$(m) Use of Funds A$(m) Use of Funds Commentary Placement 14.0* Advance Batteries 4.5 Expanded test program & increased lab capability Water 2.0 2 x new plants (US), 5 x sales
Slide 24: Placement and SPP timetable
Placement and SPP timetable Event Time (AEDT) Trading halt Wednesday, 17 March 2021 Record date for Share Purchase Plan (SPP) 7.00pm, Thursday, 18 March 2021 Announce completion of the Placement, announce SPP, and release of Investor Presentation, release Appendix 3B (for Friday, 19 March 2021 place
Slide 25: Key Risks
Key Risks 25
Slide 26: Risks Specific to an Investment in Calix
Risks Specific to an Investment in Calix All investments carry risk, including loss of some or all of the capital invested and failure of investments to generate a positive return. You should carefully consider whether an investment in Calix is a suitable investment for you. Some of the risks of inv
Slide 27: Risks Specific to an Investment in Calix
Risks Specific to an Investment in Calix In Australia, Calix’s ACTI-Mag can be sold as non-dangerous goods, without specific regulatory approvals. There is a risk that regulations covering these products may change, in which case Calix may need to apply for approvals to continue with this part of it
Slide 28: Risks Specific to an Investment in Calix
Risks Specific to an Investment in Calix Calix is exposed to potential product liability risks, which are inherent in the research and development, manufacturing, marketing and use of its products or products that are developed in the future. Although Calix endeavours to work to rigorous standards,
Slide 29: Risks Specific to an Investment in Calix
Risks Specific to an Investment in Calix Calix is exposed to movements in exchange rates, due to a material portion of grant funding being earned in Europe, and the commencement of product sales into New Zealand. Foreign Exchange Risk Financial statements are maintained in Australian dollars, and cu
Slide 30: General investment risks
General investment risks Events may occur that could impact upon Calix and the value of its business. These events include but are not limited to acts of terrorism, an outbreak of international hostilities, Force Majeure Events fires, floods, earthquakes, labour strikes, civil wars, natural disaster
Slide 31: Offer Restrictions
Offer Restrictions 31
Slide 32: International offer restrictions
International offer restrictions International offer restrictions This document does not constitute an offer of Shares of Calix in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Shares may not be offered or sold, in any coun
Slide 33: International offer restrictions
International offer restrictions New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (New Zealand) (the FMC Act). The New Shares are not being offered or sold in New Zealand (or allotted with a
Slide 34: Board of Directors Share Price Performance and Equity Structure
Board of Directors Share Price Performance and Equity Structure 34
Slide 35: Board of Directors
Board of Directors Peter Helen Fisher Jack Lance Phil Dr Mark Turnbull, AM Non-Executive Hamilton O’Neill Hodgson Sceats Non-Executive Director Non-Executive Non-Executive Managing Executive Chair Director Director Director & Chief Director And Executive Officer Chief Scientist Experienced Chair and
Slide 36: Listed on the ASX in July, 2018
Listed on the ASX in July, 2018 ASX:CXL Share Price Performance Since Listing As at 22 February 2021 Shares on issue ~148.9m Share price for IPO Capital Raise $0.53 per share Share price on IPO $0.62 per share Current Share price $1.90 per share S&P Market capitalisation ~$283m ASX200 Cash as at 31
Slide 37: Because there's only one Earth… Mars is for quitters
Because there’s only one Earth… …Mars is for quitters Phil Hodgson Darren Charles Simon Hinsley Managing Director & CEO CFO & Company Secretary Investor Relations phodgson@calix.global dcharles@calix.global simon@nwrcommunications.com.au +61 2 8199 7400 +61 2 8199 7400 +61 401 809 653 Follow us on T