Phoslock Environmental Technologies Limited · ASX:PET
Phoslock Environmental Technologies — Investor Presentation (August 2022)
20 slides from Phoslock Environmental Technologies's investor presentation, Aug 31, 2022
Slide 1: First Half 2022 Business Review and Strategic Outlook
31 AUGUST 2022 First Half 2022 Business Review and Strategic Outlook World leaders in water remediation Driving sustainable growth
Slide 2: Disclaimer
Disclaimer Statements contained in this presentation, particularly those regarding possible or assumed future performance, estimated company earnings, potential growth of the company, industry growth or other trend projections are or may be forward looking statements. Such statements relate to futur
Slide 3: Key developments for first half
Continued execution of strategic Continued to address legacy issues growth plan associated with previous 2022 HALF YEAR RESULTS management team Additional resources/investment in geographic and product expansion Substantial time and effort expended Restructuring of US and European commercial o
Slide 4: 2022 Half Year Results
2022 Half Year Results 2022 HALF YEAR RESULTS Key impacts on Half Year financials 6 months to 6 months to Modest sales; Ongoing impairment Key financial results 30 June 2022 30 June 2021 restructuring costs in activity recognizes China; capacity continued uncertainty Revenues $1.3 million $1.3 milli
Slide 5: Legacy issues – PET's response
Legacy issues – 2022 HALF YEAR RESULTS PET’s response Restructured PET’s organisation in China • Review of all contracts and agreements with third parties • Recruitment of trustworthy and skilled management team Accessed company records • Reviewed systems and procedures, manufacturing operations and
Slide 6: Legacy issues – third party investigations & legal proceedings
Legacy issues – third party 2022 HALF YEAR RESULTS investigations & legal proceedings PET self-reported the suspected fraud, foreign bribery PET has previously stated that it intends to pursue and mismanagement issues identified by current claims against certain individuals with the aim of managem
Slide 7: 1HFY22 Project/commercial activity in review
1HFY22 Project/commercial 2022 HALF YEAR RESULTS activity in review Australia / China Europe South America North America New Zealand Projects completed in Focus on business reset Profile builds following Hydroscience (Brazil Review of distribution Western Australia and determining successful complet
Slide 8: Current and prospective activity
Canada Working through complex 2022 HALF YEAR RESULTS regulatory process Europe • Ongoing discussions and lobbying support with several City of Rotterdam – developing provinces strong leads throughout Europe • Engagement with several Permits issued for Denmark, leading scientific experts Finland – c
Slide 9: New China business model balances risks & opportunities
New China business model balances risks & opportunities 2022 HALF YEAR RESULTS • Go-to-market model changes from direct sales to a ‘wholesale model’ via distribution, engineering firms and partners • Better addresses market risks • Puts sales efforts in the hands of engineers and water managers who
Slide 10: Growth Strategy
Growth Strategy 2022 HALF YEAR RESULTS Key Drivers Customer & Manufacturing Research & People, Commercial & Supply Chain Development Performance & Culture 10
Slide 11: Customer & commercial
Customer & commercial Expanding our market reach 2022 HALF YEAR RESULTS We are in the process of transitioning to a ‘distribution-led’ go-to-market model in all regions, complemented by ‘direct’ sales to the ‘large lakes’ segment; Targeting market segments that generate more accessible, reliable a
Slide 12: Additional flowing water opportunities
Additional flowing water opportunities: R&D program is targeting 2022 HALF YEAR RESULTS Other lanthanum impregnated substrates new growth opportunities • Other metal impregnated Activated Carbo • Activated Carbon in general Nitrogen capture Enhancement of Phoslock Phoslock Eco Phoslock Plus
Slide 13: Manufacturing review identified both short and longer term priorities
Manufacturing review identified both short and longer term priorities 2022 HALF YEAR RESULTS Short term: China plant improvements and capacity expansion • Work to reduce noise and dust generation, and bring the plant into compliance with local standards, was initiated and is ongoing; • A project to
Slide 14: Global phosphorus pollution
Global phosphorus pollution 2022 HALF YEAR RESULTS 71% of lakes in the United States have impaired water quality Phosphorus pollution is a global issue Haque (2021). Sustainability, 13(12): 6565 ~40% of lakes under the remit of the Water Framework Directive(WFD) fail ecological quality targets Europ
Slide 15: Phosphorus directives and policies
Phosphorus directives and 2022 HALF YEAR RESULTS policies In order to tackle freshwater deterioration, legally binding directives and policies have been initiated globally such as: • The Water Framework Directive (2000) – EU • The Clean Waters Act (1972) – US • The Canada Water Act (1970) – Canada E
Slide 16: Phoslock is a proven technology & an economic solution
Phoslock® is a proven technology & an economic solution 2022 HALF YEAR RESULTS Phoslock® can help water mangers control the phosphorus concentrations in waterbodies to help meet relevant phosphorus targets such as the EU WFD. Geo-engineering is the deliberate manipulation of in-lake processes Ph
Slide 17: Phosflow opportunity strengthens positioning as a total water solutions provider
Phosflow opportunity strengthens 2022 HALF YEAR RESULTS positioning as a “total water solutions” provider A solution to help reduce the amount of nutrients before entering waterbodies and waterways. It can be used across a number of both diffuse and point sources, such as: • Initial trials show
Slide 18: Outlook
Outlook Key priorities 2022 HALF YEAR RESULTS Execute on sales strategy • Clear focus on ‘winnable’ sales • Continue implementation of In the short to medium term the outlook opportunities across target review recommendations re remains challenging from a revenue geographies as we bed down new Peopl
Slide 19: Funding Position
Funding Position 2022 HALF YEAR RESULTS Management and Abnormal costs Board are focused on associated with China cash flow while business investigations and audit rebuild progresses reducing in second half of FY22 Strong focus on Cash / cash equivalents redeployment of (as at 30 June 2022): resource
Slide 20: ASX Code: PET
ASX Code: PET Unit D, Level 2, 650 Chapel Street T +61 3 91100002 South Yarra VIC 3141 W www.petwatersolutions.com AUSTRALIA Lachlan McKinnon – CEO E lmckinnon@phoslock.com.au Greg Slade - Investor Relations E ir@phoslock.com.au
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