Phoslock Environmental Technologies Limited · ASX:PET
Phoslock Environmental Technologies — Shareholder Meeting (May 2020)
40 slides from Phoslock Environmental Technologies's shareholder meeting presentation, May 25, 2020
Slide 1: Welcome
Welcome Phoslock Environmental Technologies – 2020 Annual General Meeting 2:00pm Monday 25th May 2020 , Virtual
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: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS • When the Question function is available, the Q&A icon will appear at the top of the app. • To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow • Your question will be sent immediately for review
Slide 4: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS • When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen • To vote simply select the direction in which you would like to cast your vote, the selected option will change colour. • There is no submit or send button, y
Slide 5: Proxies Before Meeting
Proxies Before Meeting Securities on Issue 619,300,509 Valid Securities Voted 209,542,118 Valid Securities Voted (%) 33.8% Total Securityholders Cast 321 Resolution Total Excluded Total Shares Shares Voted Shares able to Vote FOR FOR % 1 Remuneration Report 209,542,118 121,475,071 88,067,047 80,160,
Slide 6: Phoslock Environmental Technologies 2020 AGM
Phoslock Environmental Technologies 2020 AGM Start – 2:00PM Chairman's Welcome and Address Mr Laurence Freedman AM Deputy Chairman’s Address Mr Zhigang Zhang Managing Director’s Address Mr Robert Schuitema CEO’s Address Mr Lachlan McKinnon Questions and Answers Chairman Voting on Resol
Slide 7: 2020 Chairman’s Address – Mr Laurence Freedman AM
2020 Chairman’s Address – Mr Laurence Freedman AM
Slide 8: Deputy Chairman’s Address – Mr. Zhigang Zhang
Deputy Chairman’s Address – Mr. Zhigang Zhang 2020 China water environment market PET (Greater China Region) Developing plan
Slide 9: Preface
Preface In 2019，PET (China) fulfilled its commitment to the board with its impressive performance In 2020, the COVID-19 has a significant impact on the world's economy. The economic downturn was inevitable, and PET business in China was also affected. PET (China) was well prepared and resumed busine
Slide 10: Contents
一 Water environment industry in China, Application of Phoslock Technology 目录 二 PET（China）business model CONTENTS 三 PET（Greater China）Developing plan
Slide 11: Water environment in China
Water environment in China According to the Circular of Closing year the Ministry of Ecological 2020 is the closing year of the 13th five-year plan of the environment of China: Chinese governments "blue water defense war" From January to December 2019, in 1940 national surface water assessment secti
Slide 12: Phoslock Application (Successful Case): Xinfenghe River in Beijing
一 PHOSLOCK Application（Successful Case） Comprehensive solutions of Xinfenghe River in Beijing Main solutions Ecological restoration materials: phosphorus locking agent, microbial agent, wetland filler and other comprehensive measures Project construction: wetland construction Results ◆The comprehens
Slide 13: Phoslock Application (Xinfenghe River)
一 PHOSLOCK Application（Xinfenghe River） BEFORE BEFORE BEFORE AFTER AFTER AFTER
Slide 14: Water environment in China (Lake, reservoir, wetland solutions)
Water environment in China（ Lake, reservoir, wetland solutions） According to the statistics of the Ministry of Ecological Environment, Eutrophication treatment of From January to December 2019, According to the status of key Lakes lakes, reservoirs and wetlands (reservoirs) monitored, the number of
Slide 15: Phoslock Application (Classic Case) Xingyun Lake
一 PHOSLOCK Application（Classic Case） Xingyun Lake （Water Area 34km2） Main Solutions: Key technologies：“Lake Modeling + PHOSLOCK + Tech Service” Key data： Phoslock usage 3,000 tonnes，Max in PET history. Result TP result： TP down from 0.28mg/l to 0.06mg/l, down by 80% Assessment： Achieved goal 0.08mg/
Slide 16: Phoslock Application (Xingyun Lake)
- PHOSLOCK Application（Xingyun Lake） BEFORE APPLICATION AFTER 星云湖 Xingyun Lake AFTER
Slide 17: Yunnan Dianchi demonstration project
一 PHOSLOCK Application（Government approval） Yunnan Dianchi demonstration project Background Dianchi Lake (water area of 300km2), 10 times the area of Xingyun Lake, Top of nine plateau lakes in Yunnan . Government has agreed to use Phoslock technology to carry out verification demonstration in Dianch
Slide 18: Phoslock Application (Market): Market forecast
- PHOSLOCK Application（Market） Market forecast With the success of the demonstration project of Dianchi Lake, it will be promoted on a large scale in Dianchi Lake with the approval of the government The management of Xingyun Lake has approved the operation and maintenance plan for the second half of
Slide 19: Contents
一 Water environment industry in China, Application of Phoslock Technology 目录 二 PET（China）business model CONTENTS 三 PET（Greater China）Developing plan
Slide 20: PET (China) Business model
二 PET（China）Business model Current business model and Layout 1. Comprehensive management of river basin based on the provision of core materials, like Xinfenghe River 2. PET (Beijing) centered key regional marketing network PET（Beijing） Beijing, Tianjin, Hebei Southwest Branch: Yunnan,Guizhou, Si
Slide 21: PET (China) Business model
二 PET（China）Business model Innovative business model A comprehensive engineering model and multiple product sales channels Sales mode Supplement current go to market strategy with the establishment of strategic distributors. Online sales mode Increased marketing penetration + Online shift (Baidu,
Slide 22: Contents
一 Water environment industry in China, Application of Phoslock Technology 目录 二 PET（China）business model CONTENTS 三 PET（Greater China）Development plan
Slide 23: PET (Greater China) develop plan
三 PET（Greater China）develop plan 1. Established PET Greater China region Comprehensively restructure the people, technical engineering and factory team , optimize the allocation of capital resources 2. Optimize the proportion of revenue Optimize the proportion of revenue, adjust the proportion of En
Slide 24: PET (Greater China) development plan
三 PET（Greater China）development plan 4. Technical : expand our products - Phoslock series: Develop Phoslock with different La content, and with different additives - Phoslock algae removal series: sodium peroxycarbonate, copper sulfate, magnesium hydroxide - Modified clay series: removal of COD with
Slide 25: Conclusion
Conclusion The China water ecological environment protection has changed from the construction stage ( 13th five year plan ) to the water operation and maintenance stage ( 14th five year plan ). The latest five year plan is designed to protect the water ecological environment and promote the realiza
Slide 26: Managing Director – Mr Robert Schuitema
Managing Director – Mr Robert Schuitema • Financial KPI’s 2019 v 2018 • Capital Raising : ~ $30m from Institutional Offer, Directors and Executives, SPP • Coronavirus update and impacts in China on staff and business • Factory , shipments , raw materials • Manufacturing Plant Update • China operatin
Slide 27: PET Operating Performance
PET Operating Performance 27
Slide 28: FY2019 Financial Summary & May Balance Sheet
FY2019 Financial Summary & 25 May Balance Sheet o 2019 Revenue: $25.1m (up 40% YoY) o 2019 NPAT: $2.7m (vs loss of $1.0m: 2018) o Strong Operating Margins: 54% Gross Profit Margin o Net Cash from Operations for 2019: $7.6m 25th May 2020 Balance Sheet Position • A$35m in cash • Receivables/Inventory
Slide 29: PET FY2020 Cash Flow Forecast
PET FY2020 Cash Flow Forecast FY2020 Cashflow Forecast - Based on FY2020 Sales of $50m Receipts from Customers $ 40,000,000 * Receipts from Government Grants $500,000 Payments to Suppliers $(25,000,000) Payments to Employees/Company Costs $(12,000,000) Tax Paid $(700,000) ------------------ Net Cash
Slide 30: Changxing Factory and R&D Centre
Changxing Factory and R&D Centre Changxing – 150km west of Shanghai manufacturing Phoslock® o Current factory Production Capacity increased to 20,000tpa o Now running at 50t per day o PET plans to run this factory until late 2021 o ISO Accreditation o WQA Accreditation Annually Second Factory secure
Slide 31: Chinese Operation Structure
Chinese Operation Structure All Chinese Subsidiaries are 100% owned by PET o Phoslock Beijing – Sales & Marketing Company – run by Tingshan Liu (joined PET in June 2017) o Phoslock Changxing – Factory – run by Jason Hai (joined PET in June 2017) o Ms. Zhou recently appointed Dep GM Finance o Mr. Zha
Slide 32: Chief Executive Officer – Mr Lachlan McKinnon
Chief Executive Officer – Mr Lachlan McKinnon • Thank you and Introduction • Forecast 2020 & Pipeline 2023 - “Delivery and Execution “ • Strategic Direction – “Accelerated Growth” • People and Structure
Slide 33: Building An Accelerated Growth Platform - FY20 & FY21–FY25
Building An Accelerated Growth Platform - FY20 & FY21 – FY25 Actual Forecast Pipeline* $ Million FY19 FY20 FY21 - FY23 Sales 25.1 50-70 380* Gross Profit – 50% GP 13.4 25-35 Op. Costs 10 12-15 EBITDA 3.7 12-20 * Conversion and timing of Pipeline Projects into Sales subject to a number of business ri
Slide 34: Forecast 2020: $50-$70m Sales
Forecast 2020 : $50-$70m Sales China Projects: $40m-$55m – Forecast Maintained o Xingyun Lakes & Catchment – circa $10-15m o Shilongba Reservoir – circa $20m o Dianchi Catchment Area – Government approved trail , May 2020 o Beijing Canals – Maintenance – circa $2m o Beijing Wetland – Maintenance – c
Slide 35: Major Project Areas – 2023 Pipeline
Major Project Areas – 2023 Pipeline China ~$250M International ~$130M
Slide 36: Accelerated Growth - Strategic Direction next 3 years
Accelerated Growth - Strategic Direction next 3 years • Continued Growth in China • Team strengthening and Development • Expansion of sales channels • Strong focus on financial metrics • Accelerated Commercialization in targeted international markets • Structure • Geographies • Financial Disciplines
Slide 37: New Products/ R&D Projects
New Products/ R&D Projects = < & °°” 5 S aN PO3 $03 2 Phosphate SO;- Fe. adsorption So, y Po, So, Polymer g: support fe On, ° °O Mixed Metal Oxides Nanocomposites
Slide 38: Accelerated growth – people & structure
Accelerated growth – people & structure Key New Group Appointments: o Matt Parker new Group CFO, Melbourne based o Ms Cherry Wang, started as Group Accountant, Melbourne. o Ms. Zhou Yumin new Deputy General Manager Finance in China, Beijing o Two Senior Engineers for Beijing and Yunnan projects o Re
Slide 39: Questions & Discussion
Questions & Discussion AFTER BEFORE
Slide 40: ASX Code – PET
ASX Code – PET PET is included in the ASX 300 Index Suite 403, 25 Lime Street Sydney NSW 2000 Lachlan McKinnon – CEO AUSTRALIA email: lmckinnon@phoslock.com.au Tel: +61 2 8014 7611 Michael Kotowicz – Investor Relations Web: www.phoslock.com.au email: ir@phoslock.com.au 40
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