Alexium International Group Limited · ASX:AJX
Alexium International — H1 FY2024 Earnings Presentation
22 slides from Alexium International's earnings presentation, Feb 27, 2024
Slide 1: FY2024 Half-Year Results
ALEXIUM INTERNATIONAL GROUP LIMITED FY2024 Half-Year Results 27 February 2024 ABN 91 064 820 408 PRESENTED IN US DOLLARS
Slide 2: Disclaimer
Disclaimer 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, employees, advisors an
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: Company Overview
Company Overview A performance materials company leveraging proprietary technical innovations to deliver thermal regulation, dehumidification and flame-retardant solutions. A pioneer in microencapsulation specialising in phase change materials and innovative composites that offer adaptive therma
Slide 5: Market Segments
Market Segments 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 cooling in helmets, pa
Slide 6: Alexium's ESG Commitment
Alexium’s ESG Commitment *By FY25, Alexium will 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, Biobased, sustainable raw m
Slide 7: Alexium's Commercialised Product Portfolio
Alexium’s Commercialised Product Portfolio 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 for use in a variety o
Slide 8: FY24 – 27 Strategic Pathway
FY24 – 27 Strategic Pathway FY23 FY24 FY25-27 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 mature sales execs focus
Slide 9: FY24 Strategic Priorities
FY24 Strategic Priorities Build out and strengthen Alexium’s direct sales and business development team (adding manufacturing reps) Heightened cash and commercial discipline to improve funding runway and allow investment in key new product/market initiatives Drive pipeline conversion, and stri
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 markets such as footwear, col
Slide 11: FY24 H1 Highlights (cont.)
Diversify and Grow (continued): o Progress FR Nyco for military. Status: Alexium passed the “Pyroman” burn testing in FY24 H1 then continued development efforts to enhance the aesthetics of the fabric. Next steps will be determined by the Military’s budget for continued testing, which is expected
Slide 12: FY24 H1 Highlights (cont.)
• 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 13: FY24 H2 and FY25 Forward Focus
The near-term focus will be a continuation of converting development opportunities into recurring revenue streams. The 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 qualified growth proje
Slide 14: FY24 Financial Overview
FY24 Financial Overview
Slide 15: Financial Snapshot
Financial Snapshot Half-year revenue down 19.5% year over year Gross Profit was held to a decrease of $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 manufacturing cos
Slide 16: 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 Borrowings and Capital Raise In December, the Company announced its intention to enter a ca
Slide 17: Financial Results
FINANCIAL RESULTS
Slide 18: Cash Flow Statement
Cash Flow Statement HY24 HY23 (USD) (USD) • Operating Activities outflows improved $0.8m with changes in: Cash flow from operating activities Recei pts from customers a nd other income 3,257 2,713 $0.5m – cash receipts from higher sales in H2 FY23 Pa yments to suppl i ers a nd empl oyees (3,624) (
Slide 19: Profit & Loss Statement
Profit & Loss Statement • While revenue has declined $.7m year on year, the business HY24 HY23 % (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 Cost of Goods Sold (1
Slide 20: 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 • 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 sales and inventory Inven
Slide 21: Appendix
APPENDIX
Slide 22: Non-GAAP Financial Measure Reconciliation
Non-GAAP Financial Measure Reconciliation Reconciliation of Operating EBITDA (non-GAAP financial measure) to statutory Net Profit/(Loss) The consolidated financial statements of the Group are general purpose HY24 HY23 financial statements which have been prepared in accordance with the Australian Ac
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