Alexium International Group Limited · ASX:AJX
Alexium International — H1 FY2024 Earnings Presentation
23 slides from Alexium International's earnings presentation, Mar 15, 2024
Slide 1: FY2024 Half-Year Results
For personal use only ALEXIUM INTERNATIONAL GROUP LIMITED FY2024 Half-Year Results 15 March 2024 ABN 91 064 820 408 PRESENTED IN US DOLLARS
Slide 2: Disclaimer
Disclaimer For personal use only To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever being accepted by Alexium International Group Limited (Alexium) or any of its related entities or their respective directors or officers,
Slide 3: Company Overview
For personal use only COMPANY OVERVIEW
Slide 4: Company Overview
Company Overview A performance materials company leveraging proprietary For personal use only technical innovations to deliver thermal regulation, dehumidification and flame-retardant solutions. A pioneer in microencapsulation specialising in phase change materials and innovative composites that
Slide 5: Market Segments
Market Segments For personal use only Bedding: flame-retardants and cooling products for mattress and pillow producers Military: flame-resistant fabrics for uniforms Industrial: flame resistant fabrics for workwear Tactical: textiles for cooling for protective gear Athletics: textiles for
Slide 6: Alexium's ESG Commitment
Alexium’s ESG Commitment *By FY25, Alexium will For personal use only establish baselines, metrics SUSTAINABLE PRODUCT FOCUS: and KPIs for ESG performance: Biocool® | Alexium’s proprietary biobased cooling Environment technology for textile & foam applications Environment: waste reduction, Bioba
Slide 7: Alexium's Commercialised Product Portfolio
Alexium’s Commercialised Product Portfolio For personal use only PCM Comfort Technologies New Comfort Technologies Flame Retardant Technologies Newest introduction to Alexium’s Premium PCM cooling for mattress Customised solutions thermal management product and top of bed portfolio Designed
Slide 8: FY24 – Strategic Pathway
FY24 – 27 Strategic Pathway FY23 FY24 FY25-27 For personal use only Focus Diversify Profitable Growth Team : Strengthen the organisation with Team : Build out direct sales and BD Team : Bolster operations team, the addition of a new CEO and increased Culture : Sales and marketing centric mat
Slide 9: FY24 Strategic Priorities
FY24 Strategic Priorities Build out and strengthen Alexium’s direct sales and business development team (adding manufacturing For personal use only reps) Heightened cash and commercial discipline to improve funding runway and allow investment in key new product/market initiatives Drive pipelin
Slide 10: FY24 H1 Highlights
Alexium is now focused on a simple over-arching strategy: Grow and Diversify Revenue. This strategy ensures that we maintain our share in our core bedding market despite the market headwinds while growing revenue by commercialising our portfolio of technologies into new For personal use only markets
Slide 11: FY24 H1 Highlights: Diversify and Grow
Diversify and Grow: o Shift Core/Adjacent/Breakthrough focus priorities from 70:20:10 40:20:40 Status: the 20% adjacent focus and 10% breakthrough focus (30% combined) are trending toward 40% of the company’s daily efforts, which is evidenced in the business For personal use only and product dev
Slide 12: FY24 H1 Highlights (cont.)
Diversify and Grow (continued): o Commercialise PCM, Eclipsys® fabric, and FR into new markets (e.g. shoes, cold chain, workwear) Status: For personal use only Two product development projects with major shoe brands for the Eclipsys® technology are in process. Alexium’s internal test results are
Slide 13: FY24 H1 Highlights: Supply Agreements with Major Customers
• Supply Agreements with Major Customers - An initiative within the Company is to enhance the predictable recurring nature of our revenue. We intend to move several of our larger customers from spot purchase or specific-program buying to long-term product supply agreements with defined pricing, supp
Slide 14: FY24 H2 and FY25 Forward Focus
The near-term focus will be a continuation of converting development opportunities into recurring revenue streams. The For personal use only strategy deployed in FY23 (Grow and Diversify) is gaining traction and is exemplified in Alexium’s business and product development pipeline, which is full of
Slide 15: FY24 Financial Overview
For personal use only FY24 Financial Overview
Slide 16: Financial Snapshot
Financial Snapshot Half-year revenue down 19.5% year over year For personal use only Gross Profit only decreased $68K or 5.2% vs H1 FY23 in spite of revenues being down 19.5% Gross margin at 44.3% is up 6.7 percentage points from the same period last year due to customer/product mix and manufa
Slide 17: Financial Spotlights
Financial Spotlights Profit and Loss Half-year revenue down 19.5% year over year but gross profit is down only 5.2% due to improved gross margins Operating expenses down 15.8% or $395K versus prior year For personal use only Borrowings and Capital Raise In December, the Company announced its i
Slide 18: Financial Results
For personal use only FINANCIAL RESULTS
Slide 19: Cash Flow Statement
Cash Flow Statement HY24 HY23 For personal use only (USD) (USD) • Operating Activities outflows improved $0.8m with changes in: Cash flow from operating activities Receipts from customers and other income 3,257 2,713 $0.5m – cash receipts from higher sales in H2 FY23 Payments to suppliers and empl
Slide 20: Profit & Loss Statement
Profit & Loss Statement • While revenue has declined $.7m year on year, the business HY24 HY23 % For personal use only (USD) (USD) Change Change has a strong retention rate of existing customers and has Sales Revenue 2,766 3,435 (669) (19.5%) hired two new business development professionals to drive
Slide 21: Balance Sheet
Balance Sheet 31-Dec-23 30-Jun-23 (USD) (USD) • Working Capital Current Assets Ca sh a nd ca s h equi va l ents 1,756 513 For personal use only • Overall net working capital decreased by $0.3m. Trade receivables Tra de a nd other recei va bl es 545 1,047 and inventory were lower due to decreased sal
Slide 22: Appendix
For personal use only APPENDIX
Slide 23: Non-GAAP Financial Measure Reconciliation
Non-GAAP Financial Measure Reconciliation Reconciliation of Operating EBITDA (non-GAAP financial measure) to statutory Net Profit/(Loss) For personal use only The consolidated financial statements of the Group are general purpose HY24 HY23 financial statements which have been prepared in accordance
Alexium International Group — H1 FY2024 Earnings Presentation on 6ix