De.mem Ltd. · ASX:DEM
De.mem — Investor Presentation (November 2021)
31 slides from De.mem's investor presentation, Nov 30, 2021
Slide 1: ASX Release: Investor Presentation
ASX RELEASE | De.mem Limited (ASX:DEM) Investor Presentation For personal use only 30 November 2021: Water and wastewater treatment company De.mem Limited (ASX:DEM) (“De.mem” or “the Company”) is pleased to release the attached Investor Presentation with updated information about the business for fu
Slide 2: Decentralized Water Treatment Solutions for Industrial Customers Globally
For personal use only DECENTRALIZED WATER TREATMENT SOLUTIONS FOR INDUSTRIAL CUSTOMERS GLOBALLY Investor Presentation 30 November 2021 DE.MEM LIMITED (ASX:DEM) 1 INVESTOR UPDATE – NOVEMBER 2021
Slide 3: 1. Introduction to De.mem
For personal use only 1. INTRODUCTION TO DE.MEM DE.MEM LIMITED (ASX:DEM) 2 INVESTOR UPDATE – NOVEMBER 2021
Slide 4: De.mem Snapshot
DE.MEM SNAPSHOT For personal use only De.mem provides decentralized water treatment solutions for industrial customers in key segments Non- Its portfolio of world class membrane technology has recurring ~32% broad application - potable water, industrial waste water, recycling & reuse and process wat
Slide 5: Blue Chip Industrial Customer Base
BLUE CHIP INDUSTRIAL CUSTOMER BASE For personal use only DE.MEM LIMITED (ASX:DEM) 4 INVESTOR UPDATE – NOVEMBER 2021
Slide 6: Experienced Leadership
EXPERIENCED LEADERSHIP For personal use only Cosimo Trimigliozzi Andreas Kroell Bernd Dautel Stuart Carmichael Michael Edwards Non-Executive Chairman CEO & Executive Director Non-Executive Director Non-Executive Director Non-Executive Director 30-year experience in the Previously Director and Direct
Slide 7: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only Market Data Share Price Performance since 1 July 2019 ASX Code DEM $0.40 $0.35 Ordinary Shares 219.6m $0.30 Market capitalisation $52.7m $0.25 $0.20 Cash plus term deposits (30 September 2021) $8.7m $0.15 Last price (26 November 2021) $0.24 $0.10 52 week high
Slide 8: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only Comprehensive industrial water and wastewater treatment solutions backed by a portfolio of world class membrane technology Significant install base with foothold into blue-chip, multinational industrial customers Build-Own-Operate model driving recurring r
Slide 9: 2. The De.mem Business & Opportunity
For personal use only 2. THE DE.MEM BUSINESS & OPPORTUNITY DE.MEM LIMITED (ASX:DEM) 8 INVESTOR UPDATE – NOVEMBER 2021
Slide 10: Vision and Mission
VISION AND MISSION For personal use only Mission Achieve this objective based on the strong commitment of Vision our employees and a To become the worldwide portfolio of disruptive market leader in technologies and product de-centralized water and innovations, which can waste water treatment address
Slide 11: Key Trends Driving Adoption
KEY TRENDS DRIVING ADOPTION For personal use only Growing market demand for decentralised water and waste water solutions for customers Water security and Water availability in ESG investor demands in Regulatory tailwinds forcing sustainability remote projects Europe and increasingly greater focus o
Slide 12: Key Persistent Issues of Industrial Customers
KEY PERSISTENT ISSUES OF INDUSTRIAL CUSTOMERS For personal use only Consistent, bulk users of water Significant opportunity to Water critical to the reuse water to business model lower waste and optimise costs Regulatory pressure e.g. by EPA Estimated global market for hollow fibre membrane technolo
Slide 13: Key Industrial Segments Targeted
KEY INDUSTRIAL SEGMENTS TARGETED For personal use only Mining Municipal / infrastructure Food & beverage General industrial • Potable/sewage • Potable • Waste water • Industrial waste water treatment for mining camps • Sewage treatment • Process water • Process water • Waste water • Water treatment
Slide 14: Key Technology: Hollow Fibre Membrane
KEY TECHNOLOGY: HOLLOW FIBRE MEMBRANE For personal use only Membrane Modules • Only water molecules smaller than the pores pass through the membrane “barrier” of hollow fibre membranes Clean water • De.mem’s proprietary hollow-fibre membrane portfolio targets “high value add” applications, validated
Slide 15: Limitations of Existing Competitors
LIMITATIONS OF EXISTING COMPETITORS For personal use only De.mem offers… Focusing on certain niches, Broadly applicable solutions i.e. technologies, applications, target sectors De.mem operates in Advanced technology, engineered solutions, a fragmented operations & maintenance know how Solutions mar
Slide 16: Broad Application Range
BROAD APPLICATION RANGE For personal use only De.mem technology comes with various pore sizes Removes tiny contaminants including dyes, pesticides/herbicides, microplastics, solids, viruses, bacteria etc. in a simple process DE.MEM LIMITED (ASX:DEM) 15 INVESTOR UPDATE – NOVEMBER 2021
Slide 17: End-to-End Business Model
END-TO-END BUSINESS MODEL For personal use only Consulting Solutions Delivery Operations & Maintenance (consumables) Containerized Membrane Systems Water Treatment Membranes Chemicals Multi-year service contract (Build-Own-Operate)… Membrane Modules …or upfront revenue (Build-Own-Transfer) Pumps & H
Slide 18: Build, Own, Operate Example Deployments
BUILD, OWN, OPERATE EXAMPLE DEPLOYMENTS For personal use only De.mem currently has 15 BOO and service contracts under operations • Containerized industrial waste water treatment plant Factory of multinational in • Build, Own, Operate contract Singapore • Deploying De.mem hollow fibre membranes as ke
Slide 19: Financial Performance
FINANCIAL PERFORMANCE For personal use only Cash receipts (A$m) Gross margins EBITDA (A$m) 16.5 34% 13.8 31% 11.7 26% (1.1) (2.8) (3.2) CY2019 CY2020 CY2021 CY2019 CY2020 CY 2021 CY2019 CY2020 CY 2021 (9 months to 30/9) (6 months to 30/6) (6 months to 30/6) DE.MEM LIMITED (ASX:DEM) 18 INVESTOR UPDAT
Slide 20: Strong Revenue Mix
STRONG REVENUE MIX For personal use only Primary objective is to expand recurring revenue segments • Build, Own, Operate (BOO) contracts Non- • Operations & Maintenance recurring ~32% contracts • Projects (tender based) $13.8m • Remote monitoring services • Supply of larger Cash receipts Recurring •
Slide 21: 3. Growth Strategy
For personal use only 3. GROWTH STRATEGY DE.MEM LIMITED (ASX:DEM) 20 INVESTOR UPDATE – NOVEMBER 2021
Slide 22: De.mem Positioned for Strong Growth
DE.MEM POSITIONED FOR STRONG GROWTH For personal use only Compelling one stop shop product and services range to Key proprietary industrial customers membrane completed technologies validated Australian wide BOO model as unique service & support service offer to capability completed industrial custo
Slide 23: Growth Plan
GROWTH PLAN For personal use only • Focus on recurring revenue segments Ongoing top • Strong pipeline with new contracts line growth • Grow with existing multi-site/multi-national client base from site to site • Clear roll out plan for proven membrane technology Product and • “Next-gen” graphene mem
Slide 24: Top Line, Recurring Revenue Growth
TOP LINE, RECURRING REVENUE GROWTH For personal use only Recurring revenue (A$m) Recurring revenue as a % of total cash receipts 12.6 79% increase in 9 months figures recurring revenue 68% CAGR: 48% annualized since CY2018 58% 9.6 54% 6.3 38% 9.4 3.9 YTD Sep '21 CY 2018 CY 2019 CY 2020 2021 CY 2018
Slide 25: Growing with Multinational Clients
GROWING WITH MULTINATIONAL CLIENTS For personal use only Initial BOO 2nd BOO 3rd BOO Future pilot site project project 2016 2019 2020 $0.4m $1.7m $0.8m After successful pilot, Second site for Third site for Client has more than initial contract for multinational building multinational in 50 producti
Slide 26: Next Generation Graphene Technology
NEXT GENERATION GRAPHENE TECHNOLOGY For personal use only • New range of “Next Generation” membranes are infused with Graphene Oxide (GO) nanoparticles • Increased water flux (throughput) over standard polymer membrane by 20-40% - reducing operating cost • Produced at the Company’s existing facility
Slide 27: Performance of Acquisitions
PERFORMANCE OF ACQUISITIONS For personal use only Revenue performance of acquisitions • Three acquisitions since 2019 +34% 4.4 • Outstanding acquisition track record 4.0 3.6 with each achieving significant 3.3 +60% growth through cross-selling +100% 2.5 • All three companies earn stable, 1.8 recurri
Slide 28: Geographic Expansion
GEOGRAPHIC EXPANSION For personal use only Significant pent-up demand for water Focus on and waste water international solutions expansion in particular through ESG requirements established hubs in from EU companies Singapore (SE in particular driving Asia), Germany adoption and (Europe) Offices cha
Slide 29: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only Comprehensive industrial water and wastewater treatment solutions backed by a portfolio of world class membrane technology Significant install base with foothold into blue-chip, multinational industrial customers Build-Own-Operate model driving recurring r
Slide 30: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER For personal use only This presentation has been prepared by De.mem Limited and its related entities (the “Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. Y
Slide 31: Investor Enquiries
For personal use only Investor Enquiries Andreas Kroell Chief Executive Officer De.mem Limited investor@demem.com.sg www.demembranes.com DE.MEM LIMITED (ASX:DEM) 30 INVESTOR UPDATE – NOVEMBER 2021