Alexium International Group Limited · ASX:AJX
Alexium International — 2018 Gabelli & Company Specialty Chemicals Conference
27 slides from Alexium International's conference presentation, Mar 13, 2018
Slide 1: 2018 Gabelli & Company Specialty Chemicals Conference Presentation
For personal use only INNOVATION GROWTH LEADERSHIP 2018 Gabelli & Company Specialty Chemicals Conference Presentation 13 March 2018 Presented by Dirk Van Hyning, Ph.D. CEO and Managing Director
Slide 2: Agenda and disclaimer
2018 Gabelli & Company Specialty Chemicals Conference For personal use only 1 Company Overview 2 About Alexium 3 Target Markets 4 Alexium Products & Key Growth Silos 5 Financial Analysis 6 Management Bios This presentation has been prepared by Alexium International Group Limited (“Alexium”) or the (
Slide 3: Company Overview
Company Overview For personal use only 12 Month Share Price Key Statistics ASX Code AJX Current Share Price $0.29 52 Week High $0.64 52 Week Low $0.27 Shares on Issue ~341m Market Capitalisation ~$95m Cash (31 December 2017) $17.2m Investor Mix Company Highlights • H1 2018 financial highlights (Same
Slide 4: About Alexium
2018 Gabelli & Company Specialty Chemicals Conference For personal use only 1 Company Overview 2 About Alexium 3 Target Markets 4 Alexium Products & Key Growth Silos 5 Financial Analysis 6 Management Bios
Slide 5: Who We Are
Who We Are For personal use only • Alexium International is a speciality chemicals developer headquartered in Greer, South Carolina, USA • Focus on high-performance, environmentally friendly, non- Environmentally Friendly FR Solutions hazardous Flame Retardants (FR) and Phase Change Materials (PCM)
Slide 6: Target Markets
2018 Gabelli & Company Specialty Chemicals Conference For personal use only 1 Company Overview 2 About Alexium 3 Target Markets 4 Alexium Products & Key Growth Silos 5 Financial Analysis 6 Management Bios
Slide 7: Flame Retardant Market
Flame Retardant Market Fire retardant chemistries are chemicals required to be added to virtually every For personal use only consumer product sold to prevent initiation of a fire or inhibit the rate at which the event propagates. Market Drivers Key Statistics • Stringent fire safety regulations cau
Slide 8: Global FR Regulations
Global FR Regulations Accelerating the Market Drive to Alexium For personal use only The United States Consumer Product Safety Commission (CPSC) voted on SEPTEMBER 20th, 2017 to immediately warn the public about the dangers of using products containing halogenated, nonpolymeric flame retardants* Ale
Slide 9: Thermal Management Market
Thermal Management Market For personal use only Thermal Management or Phase Change Material (PCM) chemistries can improve the efficiency of apparel and other textiles to absorb heat and moisture. The microscopic molecule attaches to a fiber and can retain heat and cool the textile it is applied to,
Slide 10: Alexium Products & Key Growth Silos
2018 Gabelli & Company Specialty Chemicals Conference For personal use only 1 Company Overview 2 About Alexium 3 Target Markets 4 Alexium Products & Key Growth Silos 5 Financial Analysis 6 Management Bios
Slide 11: Alexium Products
Alexium Products • Platform, ready-to-use For personal use only chemical formulations • Developed with customers Alexiflam NF requirements and for cellulosics Alexiflam FR equipment from inception for military fabrics Alexiflam PB for outdoor fabrics Proprietary Chemistries Alexicool Alexiflam Indus
Slide 12: Toll Manufacturing Model
Toll Manufacturing Model For personal use only Regionally Diverse and Scalable Global Manufacturing Model Holly Oak Chemical, Inc. • Partnerships with toll manufacturers allow almost infinite scalability that allows Alexium to grow with demand without having to invest in any manufacturing capabiliti
Slide 13: Alexium Product Pipeline
Alexium Product Pipeline For personal use only Alexiflam NF Alexicool DR Alexiflam PB for timber for apparel for outdoor fabrics Alexicool HT Alexicool AL for pillows for mattresses REGULATORY PRESSURE STRONG CUSTOMER DEMAND Alexiflam SYN Alexiflam FR Alexiflam NF PROVEN SUPERIOR PRODUCTS for electr
Slide 14: Military Uniform Fabrics
2018 Alexium Key Growth Silos For personal use only MILITARY UNIFORM FABRICS FLAME PROTECTION FOR ALL ~1.5M ~9M $25/ sq yard Number of FR-protected Number of unprotected $7.5/sq Alexium has active engagements with several military uniforms issued per military uniforms issued per yard year year large
Slide 15: Alexiflam NF: Groundbreaking New Cellulosic FR
2018 Alexium Key Growth Silos ALEXIFLAM NF For personal use only GROUNDBREAKING NEW CELLULOSIC FR Incumbent materials used to FR treat cotton typically suffer from: • Being very difficult to process uniformly – high rework and variable cost • Very high levels of free formaldehyde, a known carcinogen
Slide 16: Alexiflam NF provides
2018 Alexium Key Growth Silos For personal use only ALEXIFLAM NF provides: • Extremely high level of uniformity for similar product cost • Can be processed with simple, common application methods • Has no reportable free formaldehyde • Expected TSCA compliance in 2018 for sale into US • Alexiflam NF
Slide 17: Alexicool: A Revolution in Bedding
2018 Alexium Key Growth Silos ALEXICOOL For personal use only A REVOLUTION IN BEDDING • Alexium has quickly grown into a trusted supplier in the mattress cooling chemistry market. Even with recent growth, significant upside exists. • Alexicool has cooling, flame retardant and anti-odor functionaliti
Slide 18: Financial Analysis
2018 Gabelli & Company Specialty Chemicals Conference For personal use only 1 Company Overview 2 About Alexium 3 Target Markets 4 Alexium Products & Key Growth Silos 5 Financial Analysis 6 Management Bios
Slide 19: Key Financial Figures
Financial Analysis Key Financial Figures For personal use only AU$ Millions H1 2018 H2 2017 % Change H1 2017 % Change Sales 8.7 12.4 -30% 11.4 -24% Gross Profit 2.2 0.2 1000% 0.1 2100% Operating Expenses 4.7 5.8 -19% 5.9 -20% Operating Income (2.5) (5.6) -55% (5.8) -57% Net Income (2.1) (6.5) -68% (
Slide 20: Primary Financial Drivers: Revenue & Gross Profit
Financial Analysis Primary Financial Drivers For personal use only Revenue & Gross Profit Revenue & Margin by Quarter Specialty Chemical Sales to New Customers 7 30% 6 25% 20% 5 15% MILLIONS 4 10% 3 5% 0% 2 -5% 1 -10% - -15% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Revenue Gro
Slide 21: Primary Financial Drivers: Sales
Financial Analysis Primary Financial Drivers For personal use only Sales Revenue Analysis – Q1 FY18 to Q2 FY18 (AU$ Millions) • Movement away from low margin sales into H2 • Resulted in a planned $2M phased 4.9 6 reduction in revenue from H1 to H2 - 3.8 • Seasonality in Bedding - 0.57 • Sales volume
Slide 22: Management Bios
2018 Gabelli & Company Specialty Chemicals Conference For personal use only 1 Company Overview 2 About Alexium 3 Target Markets 4 Alexium Products & Key Growth Silos 5 Financial Analysis 6 Management Bios
Slide 23: Executive Management
Executive Management Dirk Van Hyning - Chief Executive Officer For personal use only Dr. Van Hyning received his BS in Chemical Engineering from North Carolina State University before receiving his MS and Ph.D. in Chemical Engineering from The University of Illinois at Urban-Champaign studying the r
Slide 24: Board of Directors
Board of Directors For personal use only Gavin Rezos – Non Executive Chairman • Extensive international investment banking experience • Held CEO and Board positions in successful technology companies in Australia, the UK, US & Singapore • Former Non Executive Director of Iluka Resources, Department
Slide 25: Board of Directors
Board of Directors For personal use only Claire Poll – Non Executive Director • Founding Executive for the October listing of Verona Pharma plc (Nasdaq:VRNA) • Worked as a Director and general counsel in listed companies in the US, UK, and Australia • Holds a post graduate diploma in Applied Corpora
Slide 26: The Alexium Trajectory
The Alexium Trajectory 25 PCM For personal use only 20 15 10 Flame Retardants 5 0 2015 2016 2017 • Customer-focused • Growing product offering • $10B current markets • Differentiated products • Rapidly growing addressable market • Platform products • Market-driven R&D • Market-driven R&D • Expandabl
Slide 27: Contact
For personal use only Contact: InvestorRelations@AlexiumInternational.com U.S.: +1.864.254.9923
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