Carbonxt Group Ltd. · ASX:CG1
Carbonxt — Investor Presentation (October 2019)
18 slides from Carbonxt's investor presentation, Oct 1, 2019
Slide 1: Investor Presentation October 2019
For personal use only Investor Presentation October 2019
Slide 2: About Carbonxt
For personal use only About Carbonxt (CG1.ASX) Carbonxt produces patented, non-brominated, Activated Carbons that are used to eliminate mercury and other toxic pollutants from industrial flue gas and waste water streams. Our US-based manufacturing plants produce both powdered and pelletised products
Slide 3: Advanced Carbon Company Summary
For personal use only Advanced Carbon Company Summary Board of Directors $0.30 Name Position Shares Products Shares on issue (m)* Market Cap (A$m) 88.80 26.64 Matthew Driscoll Warren Murphy 1 Chairman MD 0.42 0.25 2 Debt (A$m) 5.50 David Mazyck Director 0.27 Enterprise Value (A$m) 32.14 Options/Warr
Slide 4: Our key products
Our 2 key products For personal use only POWDERED ACTIVATED CARBON PELLETISED ACTIVATED CARBON Produced from Black Birch manufacturing facility with capacity to produce 10,000 Produced from manufacturing facilities at Arden Hills and Gainesville we have tonnes per annum. capacity to produce 7,000 to
Slide 5: FY19 Results Summary
FY19 Results For personal use only Summary • Revenues of A$18.3m, up 189% on FY18. • Pellet sales grew from A$0.2m in FY18 to A$9.3m in FY19, making it the largest revenue division within the group. • Underlying EBITDA loss of A$5.1m, with significantly better operating performance in the second hal
Slide 6: Profit & Loss
Profit & Loss For personal use only FY19 Revenues grew 189% YoY to A$18.3m. ▪ Powdered Activated Carbon grew 47% to A$9.0m Change ▪ 2H19 revenues in powdered segment reflect seasonality of demand. As at 30 June (A$M) 2H18 1H19 2H19 (pcp) ▪ Pellets grew 4,937% to A$9.3m Powdered 3.1 5.4 3.7 17% FY19
Slide 7: Cashflow
Cashflow For personal use only We reached our target of being cashflow breakeven in June 2019. Positive cashflow is expected in 2H20, however, working capital associated with the As at 30 June (A$M) FY18 FY19 ramp up of material new orders may impact 1H20. Cashflow from Operations Receipts from Cust
Slide 8: Balance Sheet
Balance Sheet For personal use only As at 30 June (A$M) FY18 FY19 Cash 5.2 2.4 Receivables 0.8 1.7 FY19 saw significant PP&E investment made in the Arden Hills Inventories and Other 1.1 2.7 and Black Birch facilities. Total Current Assets 7.1 6.8 Property Plant and Equipment 2.1 10.6 Intangibles 1.5
Slide 9: Half Yearly Revenues
For personal use only Half Yearly Revenues Revenue Growth A$12.0m We have enjoyed consistent growth over the last two A$10.0m years with group revenues increasing by 383% from FY17 PELLETS through to FY19. POWDERED A$8.0m Demand for both our products has been strong and we are increasingly diversify
Slide 10: What is driving our demand?
What is driving our demand? For personal use only Regulatory Requirements Non Brominated Pellets Price Location & Service The US Mercury and Air Toxics Our patented technology is at Activated Carbon Pellets (ACP) are Our products have lower input We have built our facilities near to Standards (MATS)
Slide 11: Addressable Market & Pricing
25-29 Nov 2019 Addressable Market Dates of the next meeting for the Parties to the Minimata For personal use only Convention on Mercury, to which activated carbon is a prime & Pricing beneficiary. With a limited number of operating producers, much data within the market is proprietary Approx US$150
Slide 12: Our path to profitability
For personal use only Our path to After years of Research and Development, we are now reaching a meaningful level of commercialisation within our product profitability range. Based on the pipeline of work available, we expect to reach sustainable profitability in 2H20. Gross Profit vs Opex (trailing
Slide 13: Forward Order Book, Customers & Trials
90% For personal use only Our total order book of contracted revenue grew 90% to Forward Order Book Customers & Trials $20.0m in FY19 , and currently A$25.0m 18 stands at A$23.5m 16 A$20.0m PELLETS 14 CUSTOMER TRIALS ACTIVE CUSTOMERS 16 POWDERED 12 We have 16 active trials with A$15.0m prospective c
Slide 14: US production facilities
For personal use only US production OUR LOCATIONS facilities Current estimates suggest our production facilities will be operating at Arden Hills between 45% and 90% utilisation throughout 2020. Should demand exceed currently capacity in the years ahead it would require approximately US$6m to double
Slide 15: The Pellet Filtration Opportunity
For personal use only VOC Target FILTRATION Filtration LANDFILLS The Pellet industries ABATEMENT Opportunity NATURAL GAS HEAVY WASTE WATER SOLVENT Carbonxt is the only North American manufacturer of Pellet solutions, MANUFACTURING TREATMENT RECOVERY in what is a fast growing and largely underpenetra
Slide 16: Outlook statement
For personal use only Outlook statement After reaching periods of cash flow profitability in 2H19, Carbonxt expects to deliver it’s maiden year of operating cash flow positivity in FY20. Based on current work-in-hand and pipeline of opportunities in discussion, we expect to deliver FY20 revenue in t
Slide 17: Board & Senior Management
Board & Senior Management For personal use only MANAGING DIRECTOR INDEPENDENT CHAIRMAN EXECUTIVE DIRECTOR Warren Murphy Matthew Driscoll Dr. David Mazyck Warren was Co-Head of the Australian Matthew has significant experience David is a world-leading expert on Infrastructure & Project Finance Group
Slide 18: Contact
For personal use only CONTACT Warren Murphy Managing Director +61 (0) 413 841 216 w.murphy@carbonxt.com Thank you 18
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