Close The Loop Ltd. · ASX:CLG
Close The Loop — Investor Presentation (July 2024)
24 slides from Close The Loop's investor presentation, Jul 9, 2024
Slide 1: IT Refurbishment Investor Presentation
For personal use only collecting today. creating tomorrow. IT Refurbishment Investor Presentation | 9 July 2024 collecting today. creating tomorrow. IT Refurbishment | 1
Slide 2: Disclaimer
Disclaimer The following disclaimer applies to this presentation. You should read this disclaimer carefully information contained in this presentation and any opinions expressed in relation thereto are before reading or making any other use of this presentation or any information contained in this s
Slide 3: Agenda and presenters
01 Total Addressable Market For personal use only 02 ODM and OEM Dynamics Presenters: IT Refurbishment Investor Presentation 9 July 2024 03 Evolving Business Models Joe Foster 04 HP Renew Solutions and Circularity Group CEO Close the Loop 05 Capabilities and Expansion Plans Michael Welton North Amer
Slide 4: OEMs evolving business models towards a circular economy
OEMs are rapidly evolving their business models towards a 1. 2. circular economy to New environmental, Changing business and For personal use only accommodate global social and governance consumer demands. drivers of change: regulations (ESG), and Which is leading to the… collecting today. creating
Slide 5: Laptop Market
240m laptops sold in 2023 ~US$164bn market For personal use only Lenovo, Dell and HP collectively account for ~60% of global laptop sales Laptop Key metrics: Market • On average OEMs release three new models per year that are designed to last 5-6 years • Useful life is determined by grading, wear an
Slide 6: Printer Market
~100m printers sold each year ~US$52bn ~1.3bn print consumables are sold each year For personal use only ~$25bn HP is globally dominant in the print/copy world with ~30% of the market followed by Xerox (20%), Canon (17%) and Brother (10%) Printer Market Key metrics: On average every • Approximately
Slide 7: Other Markets
For personal use only Computing accessories As the world becomes more connected and electronic devices proliferate our daily lives, there is a growing opportunity and demand for computing equipment to become more circular Key metrics: • Servers – ~$126bn • Gaming – ~$34bn Other • POS – ~$29bn • Acce
Slide 8: New product manufacturing
New product manufacturing Deep symbiotic relationships delivering global efficiencies of scale in highly specialised manufacturing and fabrication processes For personal use only Original Design manufacturers (ODMs) • ODMs, mostly based in Taiwan and China, are responsible for the ODMs fabrication o
Slide 9: Business and consumer channels
Business • Many businesses purchase PCs through value adding resellers, such as system integrators and managed a service providers who provide a holistic suite of services relating to their procurement, installation, configuration, maintenance and replacement. • Businesses tend to favour consistent
Slide 10: The problem with a linear product model
Ownership Environment Inefficient The problem OEMs lose Poor Matching with a linear control of their environmental products with product and outcomes market segments For personal use only model brand The manufacture of With limited OEM The take, make and dispose Having put the the OEM equipment part
Slide 11: Environmental impact
Three new laptops generate one Environmental metric ton of carbon dioxide impact For personal use only • The manufacture of a single laptop produces on average 331kg of carbon dioxide (CO2) Lorem Ipsum •The overall ICT industry is responsible for as much dolar sit greenhouse gas pollution as the air
Slide 12: E-waste
E-waste • According to the UN’s global e-waste monitor report, e-waste increased from 41.8 mt in 2014 For personal use only to 53.6 mt in 2022 and is predicted to reach 74.7 mt by 2030 • Electronic waste (e-waste) is one of the world’s fastest growing waste streams, fuelled mainly by higher consumpt
Slide 13: Regulation driving change in industry behaviour
A new wave of ESG and financial reporting regulation is driving change in industry behaviour For personal use only • The Taskforce on Climate-related Financial Disclosures (TCFD) is now the common thread across international legislation on climate disclosure, including the US, EU, UK, Switzerland, S
Slide 14: The solution: Circularity - Collect, Create, Resell
For personal use only The solution Collect Create Resell Circularity Working with Provide an Supply high- OEMs to ecosystem of quality certified establish device tools and refurbished trade-in services processes that, in technology to and reverse conjunction with consumers and logistic systems OEMs,
Slide 15: HP Renew Solutions – circularity in action
HP Renew Solutions – circularity in action For personal use only collecting today. creating tomorrow. IT Refurbishment | 15
Slide 16: Benefits of HP Certified Refurbished
Benefits of HP Certified Refurbished HP Renew for businesses For personal use only Solutions Leverage flexibility within the By 2026, circularity will workplace become a key Combining new hardware with component of product refurbished devices without lifecycle management compromising on quality or p
Slide 17: Close the Loop is an HP Certified Refurbished Partner
For personal use only Close the Loop is an HP Certified Refurbished Partner collecting today. creating tomorrow. IT Refurbishment | 17
Slide 18: Global refurbishment capabilities
Global refurbishment capabilities For personal use only Leading refurbisher and distributor of consumer electronics within a blue-chip customer base Third party refurbishment partner for Microsoft, HP, Samsung, LG, and other industry–leading manufacturers Refurbishment and reseller for high volumes
Slide 19: Equipment recovery pathways
Equipment recovery pathways For personal use only Retail Returns Off-Lease Equipment (b2b) Close the Loop Close the Loop offers “white glove” service including manages collection, collection, aggregation and transport of off-lease product triage & equipment on behalf of OEM’s. Product triage testing
Slide 20: Close the Loop – Sales Channels
Close the Loop – Sales Channels For personal use only Wholesale Marketplace Direct to Consumer • 30,000+ monthly units • 20,000+ monthly units • Online storefront • Over 200 wholesale • Operating on Amazon, eBay, • Targeted social media distribution clients Walmart, Newegg, Mercado advertising campa
Slide 21: Ecosystem of clients, partners and providers
Ecosystem of clients, partners and providers For personal use only collecting today. creating tomorrow. IT Refurbishment | 21
Slide 22: Strategic growth and expansion
Strategic growth and expansion Location America’s EMEA APJ For personal use only KY TX CA MX BE DU ZA AU VN SG/ MY NZ PC Refurbishing Print Refurbishing Monitor Refurbishing ITAD Cartridge Recycle Electronic Recycling Reuse Packaging e-Waste Packaging & QC Collection/Distribution Fulfilment Services
Slide 23: Mexicali facility
Mexicali facility For personal use only Cost Factor Southlake, TX Mexicali, MX Direct Labor Costs $18 / hr $7.5 / hr Rent $12 per sqft. $8.50 per sqft. Utility Expenses 18 cents per kWh 11 cents per kWh collecting today. creating tomorrow. IT Refurbishment | 23
Slide 24: Investor enquiries
For personal use only collecting today. creating tomorrow. Investor enquiries: Warrick Lace 0488 335 815 investors@closetheloop.com.au collecting today. creating tomorrow. IT Refurbishment | 24