Calix Ltd. · ASX:CXL
Calix — FY2023 Earnings Presentation
46 slides from Calix's earnings presentation, Aug 24, 2023
Slide 1: 2023 Financial Year Annual Results Presentation
2023 Financial Year Annual Results Presentation Calix Limited 24 August 2023 1
Slide 2: Important Disclaimer
Important Disclaimer This presentation has been prepared by Calix Limited (ABN 36 117 372 540) (“Company”). INVESTMENT RISK An investment in Calix securities is subject to investment and other known and unknown risks, some of which are beyond the control SUMMARY INFORMATION of Calix, including possi
Slide 3: About Calix
About Calix Calix is an environmental technology company that is developing a unique platform technology to solve global challenges in industrial decarbonisation and sustainability. We are building multiple businesses to deliver positive global impact in CO2 mitigation, sustainable processing, advan
Slide 4: Calix's core platform technology
Calix’s core platform technology A new way to “heat stuff up” Pre-ground CO2 captured minerals when processing carbonate materials CO2 CAPTURE Unavoidable process CO2 emissions from cement and lime production are separated for use or storage. Calciner tube Externally heated using fuel or RENEWABLE C
Slide 5: Solving global challenges
Solving global challenges One core platform technology WATER CO2 MITIGATION Water treatment Cement & lime & aquaculture Direct Air Capture • Multiple environmental business opportunities, Mars is for quitters each of which must: – Focus on a significant global challenge; – Be consistent with our pur
Slide 6: Sustainability
Sustainability FY23 sustainability achievements: • Reaffirmed our commitment to the UNGC • New Board Sustainability Committee established • Greenhouse gas assessment baseline completed Our sustainability commitments: • Develop an emission reduction roadmap in FY24 • Prioritise gender diversity, with
Slide 7: FY23 Highlights
FY23 HIGHLIGHTS 7 7
Slide 8: FY23 achievements
FY23 achievements ZESTY awarded ARENA funding Leilac & CEMEX announce Calix partner in methanol project First licence agreement $947k ARENA grant to 3 new projects for sustainable fuels from CO2 signed for cement help fund BOD and FEED With funding from the HyGATE Studies for full-scale projects Lei
Slide 9: FY23 KPI scorecard
FY23 KPI scorecard Completed GATEWAY Part All High Level SHESQ action Behind items completed on time Advanced Sustainable Water Biotech Leilac Batteries Processing US: At least Crop Protection • First battery module – Refractories • Convert at least two commercial format • 2 new plants (Lufkin, • 3r
Slide 10: FY23 financial update
FY23 financial update Investing for growth Calix Limited FY23 • A focus on people and ongoing fiscal prudence has enabled Calix to grow multiple successful lines of business simultaneously into large addressable financial result highlights markets. • In FY23 Calix continued its planned investment in
Slide 11: Profit & Loss highlights
Profit & Loss highlights Investing in capability to capitalise on technology commercialisation FY 23 FY 22 ($m’s) ($m’s) Key takeaways: Revenue & other income 29.6 20.8 • 42% increase in revenue: Water revenue & other income 19.7 16.9 – strong growth in Water business in 2H Other LoB1’s revenue & ot
Slide 12: Balance Sheet strength
Balance Sheet strength Balance sheet strength to pursue commercialisation opportunities 30 June 23 30 June 22 ($m’s) ($m’s) Key takeaways: Cash & Cash equivalents 74.5 25.0 • Balance sheet strength: Total Assets 127.5 61.2 – to pursue commercialisation opportunities Total Liabilities 22.5 16.4 acros
Slide 13: Consolidated cash flows
Consolidated cash flows Balance sheet strength to pursue commercialisation opportunities FY 23 FY 22 ($m’s) ($m’s) Key takeaways: Cash flows used in operating activities (17.2) (3.7) • Working capital for investment in Receipts 26.3 31.1 capability will be partially offset through draw down on recei
Slide 14: Policies driving decarbonisation
Policies driving decarbonisation Carbon penalties, value & support in Europe, US & Australia EUROPE US AUSTRALIA Emissions Trading Scheme Inflation Reduction Act Safeguard Mechanism • €80 – 2022 average EU ETS price, up • US$85 / tonne of CO2 • A price on carbon, capped at AU$75 from €50 in 2021 per
Slide 15: FY23 by line of business
FY23 by line of business 15
Slide 16: Decarbonising cement and lime: Market drivers
Decarbonising cement and lime Market drivers Largest single source of industrial emissions: Carbon pricing: 73 carbon pricing • ~8% of global emissions.1 initiatives implemented, covering 11.7 Cement~8% GtCO2e, or 23% of global emissions4 • Unavoidable process emissions released directly from limest
Slide 17: Scaling up the Leilac technology
– Scaling up the Leilac technology A modular design for delivery through a blueprint model Leilac-1 Leilac-2 Leilac-3 Pilot plant Demonstration plant Full scale Lixhe, Belgium 2019 Hannover, Germany The future CO2 capacity: 25 ktpa CO2 capacity: 100 ktpa CO2 capacity: 500+ ktpa Clinker: 160 tpd Clin
Slide 18: Leilac's full-scale vision
Leilac’s full- scale vision BUT…we need to mitigate 1.4 billion tonnes per annum of process CO2 emissions = up to 3,000 Leilac-3s ~2 built every week from now until 2050!! 18
Slide 19: Leilac business model validation: Heidelberg Materials global licence
FY23 – Leilac business model validation Heidelberg Materials global licence executed • The first-of-a-kind, perpetual licence agreement applies to any Heidelberg Materials facility where the Leilac technology is installed. – Heidelberg Materials operates 149 cement plants across 5 continents. – On a
Slide 20: New markets: Decarbonising shipping & aviation
– new markets Decarbonising shipping & aviation Market tailwinds: • International Maritime Organisation targeting net zero by 2050 and 10% clean energy use by 2030.1 • Maersk now has 25 methanol enabled vessels on order.2 • Industry, particularly cement, requires offtake for unavoidable CO2 emission
Slide 21: Direct Air Capture
Direct Air Capture Non-binding MOU for DAC global licence agreement with Heirloom • Heirloom1 is a Direct Air Capture (DAC) company with an objective of capturing 1 billion tonnes of CO2 by 2035. • Heirloom part of Project Cypress, one of 2 projects selected for the US Department of Energy’s US$1.2b
Slide 22: A growing pipeline of projects
– a growing pipeline of projects Project Detailed Pre-FEED / FID + Initial scoping FEED Operational Total discussions scoping / MOU BOD construction Aug 2021 21 7 4 1 1 34 Aug 2022 25 13 9 5 1 1 54 Aug 2023 34 25 8 4 2 1 1 76 Leilac-2 Leilac-1 • Pipeline growth: as at August 2023 there were 76 proje
Slide 23: Sustainable Processing
FY23 by line of business Sustainable Sustainable Processing Processing 23
Slide 24: Sustainable lithium demonstration plant
Sustainable lithium demonstration plant Financial Investment Decision approved • Calix and Pilbara Minerals (ASX: PLS) have approved the FID on a mid-stream lithium-phosphate demonstration plant. • The Demonstration Plant will use Calix’s electric calciner and be located at Pilbara Minerals’ Pilgang
Slide 25: Zero Emissions Steel Technology
Zero Emissions Steel TechnologY Potential lowest cost zero emissions Development – Phase 1 & 2 completed: iron & steel Theoretical kinetic studies Conversion of electric calciner to run hydrogen About ZESTY Confirmation of electric calciner + hydrogen reduction • Hydrogen reduction of performa
Slide 26: Advanced Batteries
FY23 by line of business Advanced Batteries 26
Slide 27: Advanced Batteries
Advanced Batteries Developing sustainable, low-cost cathode materials Market trends • Calix is developing a platform technology for cathode material production: Growth in the battery market expected 5x by 20301 – Renewably powered – Energy efficient $400b Expected global battery market value by 2030
Slide 28: Advanced Batteries: FY23 achievements
Advanced Batteries FY23 achievements • Prototype Single Layer Pouch (SLP) cell testing demonstrated Calix LMO’s high-power capabilities. • Identified high-power battery segment as a target beachhead market. • Produced 4Ah commercial-prototype battery cells using Calix Lithium Manganese Oxide (LMO) c
Slide 29: Biotech
FY23 by line of business Biotech 29
Slide 30: Biotech
Biotech Sustainable bioactive materials for multiple global applications Market trends • Calix’s Biotech business is developing high surface area Demand for non-conventional pesticides magnesium oxide materials with bioactive properties for three predicted to grow at 15% per annum for the next ten y
Slide 31: Biotech: FY23 achievements
Biotech FY23 achievements Agriculture: • Continued field trials in the EU in collaboration an agricultural co-operative, following the banning of the fungicide Mancozeb. Marine: • Completed phase 2 static tests with global coatings firms. • Dynamic tests and coatings formulation work underway in sit
Slide 32: Water
FY23 by line of business Water 32
Slide 33: Water
Water Magnesium Hydroxide Liquid “MHL” – a safe alkali chemical Market trends • Calix’s water business delivers safe, effective, economical, Wastewater that flows back into the 80% ecosystem without being treated or and sustainable solutions for the treatment of water and reused wastewater. • Provid
Slide 34: Water: FY23 achievements
Water FY23 achievements • New product, ALKA-Mag+ helped secure new business in the US. • Revenue growth of 14.2% year-on-year. • Gross profit of 28.6%. • Revenue growth accelerating – up 28% H2FY23 compared with the same period last year. • Two new hydration plants progressed: – Lufkin, Texas is und
Slide 35: FY24 Priorities
FY24 PRIORITIES er 35"
Slide 36: FY24 Priorities
FY24 Priorities • Focus on industrial decarbonisation: – Electrification of industrial processing; – Capture of unavoidable carbon emissions. • Combine Water and Biotech businesses into a new Magnesia line of business to: – Increase focus, scale and reach of magnesium-based products and developments
Slide 37: FY24 KPI dashboard
FY24 KPI dashboard KPI Dashboard for FY24 Sustainable Advanced CO2 Capture Magnesia* Processing Batteries • Leilac-2 all permitting and Spodumene • First battery module in Water GATEWAY 1 civil works complete • Spodumene Project consumer product • Continued growth US, Construction commenced format A
Slide 38: Thank you
Calix Limited Annual Results FY2023 24 August 2023 Thank you Acknowledgement Social inclusion Sustainability of country statement statement Calix acknowledges the First Nations people Calix embraces diversity and inclusion. At Calix, sustainability means meeting and traditional custodians of the lan
Slide 39: Board of Directors, Equity Structure, Glossary
Board of Directors Equity Structure Glossary 39 39
Slide 40: Board of Directors
Board of Directors Peter Helen Fisher Alison Deans Phil Dr Mark Turnbull, AM Non-Executive Non-Executive Hodgson Sceats Non-Executive Director Director Managing Executive Chair Director & Chief Director And Executive Officer Chief Scientist Experienced Chair and Non- CEO and Managing Director of Bio
Slide 41: Listed on the ASX in July, 2018
Listed on the ASX in July, 2018 ASX:CXL Share Price Performance Since Listing As at 21 Aug 2023 Shares on issue ~181.2m Share price on IPO $0.53 per share Current Share price $4.56 per share Market capitalisation ~$826m Further Equity Detail As at 21 August 2023 Major shareholders As at 21 Aug 2023
Slide 42: Glossary
Glossary Term Meaning Aluminium (Al) Chemical element with the symbol Al Anode The negative electrode of a battery Antimicrobial Antimicrobial products kill or slow the spread of microorganisms, including bacteria, viruses and fungi. AMR Antimicrobial resistance – the development of resistance in ba
Slide 43: Glossary
Glossary Term Meaning EAP Employee Assistance Program EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation Electrode The material that stores the lithium ions in a charged (anode) or discharged (cathode) state in a lithium-ion battery Electrolyte The medium that allows ions to move be
Slide 44: Glossary
Glossary Term Meaning LHM Lithium Hydroxide Monohydrate – used in the production of cathode active materials for lithium-ion batteries Lithium (Li) Chemical element with the symbol Li Lithium-phosphate / Lithium Salt / “Mid- A form of lithium that is high in lithium content, to be shipped and utilis
Slide 45: Glossary
Glossary Term Meaning Potassium (K) Chemical element with the symbol K Process emissions are inherent to the chemical reaction and are released directly and unavoidably from the chemical processing of raw Process emissions material. They are distinct from energy related emissions that may result fro
Slide 46: Phil Hodgson Managing Director & CEO
Phil Hodgson Darren Charles Managing Director & CEO CFO & Company Secretary phodgson@calix.global dcharles@calix.global +61 2 8199 7400 +61 2 8199 7400 Investor relations Media enquiries Investorrelations@calix.global media@calix.global Follow us on Twitter @Calixlimited www.calix.global Subscribe t