Novonix Ltd · ASX:NVX
Novonix — Investor Presentation (February 2021)
49 slides from Novonix's investor presentation, Feb 25, 2021
Slide 1: Equity Raising Presentation February 2021
For personal use only NOVONIX LIMITED 10 µm Graphite SC-622 Graphite SC-622 Equity Raising Presentation FEBRUARY 2021
Slide 2: Important Notice and Disclaimers
Important Notice and Disclaimers NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES This document has been prepared by NOVONIX Limited (ACN 157 690 830) (“the Company” or “NOVONIX”) and includes information about a fully underwritten institutional private placement (Placement or Offer) of new full
Slide 3: Important Notice and Disclaimers (cont.)
Important Notice and Disclaimers (cont.) Information on past performance and pro forma historical financial information in the presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Actual results could differ materiall
Slide 4: Who We Are
Who We Are NOVONIX is a leader in battery development and material technology, with the most accurate battery testing technology in the world For personal use only and the only qualified US-based supplier of synthetic graphite anode material Making Batteries Better – Longer Life at a Lower Cost Adva
Slide 5: Executive Summary
Executive Summary Proposed Equity Capital Raising Recap of Recent Announcements 1H21 Results For personal use only • NOVONIX is seeking to raise approximately A$115m of • 22 Dec 2020: Expanded collaboration with Samsung to • Net assets of A$58.6m including cash and cash equivalents equity via a full
Slide 6: Leadership and Board of Directors
Leadership and Board of Directors Leadership Team For personal use only Dr Chris Burns Nick Liveris Suzanne Yeates Professor Jeff Dahn Professor Mark Obrovac Group CEO Group CFO Financial Controller & Co Secretary Chief Scientific Advisor(1) Sponsored Researcher Board of Directors Tony Bellas Greg B
Slide 7: Company Overview
For personal use only 10 µm Graphite SC-622 Graphite SC-622 Company Overview
Slide 8: Investment Highlights
Investment Highlights Making Batteries Better – Longer Life at a Lower Cost For personal use only Developer and supplier of the most accurate battery testing technology in the world, providing unique customer and industry insight Proprietary processes and in-house capability across the value chain d
Slide 9: NOVONIX is a Leader in Battery Development and Material Technology
NOVONIX is a Leader in Battery Development and Material Technology For personal use only Battery Technology Solutions Testing Design Prototyping Technology accelerates R&D from years to weeks Developing New Applications and Partnerships Anode Materials Cathode Materials Energy storage partnership Co
Slide 10: NOVONIX Technology is Utilized by a Global Tier Customer Base
NOVONIX Technology is Utilized by a Global Tier 1 Customer Base Customers Represented Globally Across Key End-markets For personal use only End Market Key customers(1) Auto and ESS OEMs EV Battery manufacturers Consumer Electronics & Medical Devices Research institutions 1. Several major auto OEMs,
Slide 11: NOVONIX Plays a Critical Role in the Lithium Ion Battery Value Chain
NOVONIX Plays a Critical Role in the Lithium Ion Battery Value Chain Testing | Design | Prototyping For personal use only Battery Technology Solutions Primary Focus Battery Raw Battery Material Specialty Battery Battery Cell and Pack Materials Production EV & ESS OEMs Material Mining Refining Anode
Slide 12: NOVONIX Technology will Continue to Drive Innovation
NOVONIX Technology will Continue to Drive Innovation For personal use only New Technologies to Continue to Drive Longer Battery Life Life Long Cathode and Lower Cost Materials and Energy Storage Advanced Electrolyte Technology Sales of NOVONIX System Life Long Synthetic Differential Thermal Graphite
Slide 13: Industry Overview and Electrification Trends
For personal use only 10 µm Graphite SC-622 Graphite SC-622 Industry Overview and Electrification Trends
Slide 14: Global Electric Vehicle Sales are Poised to Grow Exponentially
Global Electric Vehicle Sales are Poised to Grow Exponentially… EV Headlines Projected Annual Global Passenger EV Sales For personal use only 30 Total 25 20 Millions of Vehicles 15 10 5 0 2020 2022 2024 2026 2028 2030 Annual electric vehicle sales projected to exceed ~25mm by 2030 Source: BNEF EV Ou
Slide 15: Driving Demand for More Batteries, Megafactory Capacity and Battery Materials
… Driving Demand for More Batteries, More Megafactory Capacity, and More Battery Materials Global Lithium Ion Cell / Megafactory Capacity Battery Material Demand For personal use only (Total GWh) CAGR: 6% (000’s of Tonnes) 3,153 CAGR: 6% 9,300 CAGR: 26% 2,341 2,801 CAGR: 26% 6,889 2,068 2,716 2,012
Slide 16: Geographic Diversification of Battery Materials Production is Needed
Geographic Diversification of Battery Materials Production is Needed …Leading to Potential Risk for North America and EMEA Anode and Cathode Material Production has been Dominated by China… Production Supply Chains For personal use only 2019 Active Anode Materials 2019 Artificial Graphite Production
Slide 17: NOVONIX is Critical to Advancing the North American Electrification Story
NOVONIX is Critical to Advancing the North American Electrification Story and Supply Chain Gigafactory Capacity Increasing to Support North American EV Growth For personal use only Battery 2025E Manufacturer Auto OEM Investment Capacity Status State $300M 16 GWh Operating MI P Best-in-class technolo
Slide 18: NOVONIX Technology
For personal use only 10 µm Graphite SC-622 Graphite SC-622 NOVONIX Technology
Slide 19: Technology Leader in Development of the Million-Mile Battery
NOVONIX is a Technology Leader in the Development of the “Million-Mile Battery” The Million-Mile Battery requires four critical elements: For personal use only Advanced R&D Long-life Long-life Long-life Anodes Testing Cathodes Electrolytes Product Capability Battery Technology Solutions Anode Materi
Slide 20: Why Customers Choose NOVONIX Anode Material
Why Customers Choose NOVONIX Anode Material NOVONIX’s Competitive Advantage Key Customer Decision Drivers for Synthetic Graphite Anode Material For personal use only Key Performance Mid High We deliver the performance required Why Important? Natural Measures Anode Materials grade grade • Improved co
Slide 21: NOVONIX Anode Material Outperforms in Head-to-Head Testing
NOVONIX Anode Material Outperforms in Head-to-Head Testing For personal use only • NOVONIX offers improved Coulombic Efficiency (CE) compared to industry leading materials (including a Tesla Tesla Model S cell) Improved Synthetic Columbic Natural • CE measures the electrochemical stability of the Ef
Slide 22: Phased Growth Plan For NOVONIX Anode Materials
Phased Growth Plan For NOVONIX Anode Materials Phase 3 (Large Scale) For personal use only 150K Tonne / Yr Volume / tonnage phased Phase 2 (Medium Scale) growth 40K Tonne / Yr Phase 1 (Initial Ramp-up) 2K Tonne / Yr 2020 - 2021 2022 - 2025 2026 - 2030 2020 2025 2030 Anode Materials Anode Materials A
Slide 23: The Future of NOVONIX
The Future of NOVONIX Investment Highlights NOVONIX of the Future For personal use only Developer and supplier of the most accurate battery testing technology At the forefront of product innovation and development, leveraging in the world, providing unique customer and industry insight NOVONIX Batte
Slide 24: Overview of Proposed Equity Capital Raising
For personal use only 10 µm Graphite SC-622 Graphite SC-622 Overview of proposed equity capital raising
Slide 25: Equity Raising Overview
Equity Raising Overview • Fully underwritten institutional placement to raise approximately $115 million within NOVONIX’s current placement capacity under ASX Listing Rule 7.1 (“Institutional For personal use only Placement”), through the issue of 39.7 million New Shares (representing approximately
Slide 26: Equity Raising Timetable
Equity Raising Timetable* Activity Date For personal use only Trading halt and announcement of Institutional Placement Thursday, 25 February 2021 Institutional Placement Bookbuild opens Thursday, 25 February 2021 Institutional Placement Bookbuild closes Thursday, 25 February 2021 Placement Announcem
Slide 27: Sources and Uses of Proceeds
Sources and Uses of Proceeds Sources & Uses Use of Offer Proceeds For personal use only Sources(1) $ million A. NOVONIX Anode Materials • Capex and working capital to scale production to 10,000tpa • Includes new site expansion and equipment coming online over the next 24 months, as well as working I
Slide 28: Effects of the Equity Raising – Pro Forma Cash Balance
Effects of the Equity Raising – Pro Forma Cash Balance Post equity raising, NOVONIX will have $137mm of cash available to significantly scale production and pursue other growth initiatives For personal use only Cash Position ($m) 112 137 Following the $115m equity raising, NOVONIX will have $137m of
Slide 29: 1H21 Results Summary
For personal use only 10 µm Graphite SC-622 Graphite SC-622 1H21 Results Summary
Slide 30: 1H21 Results Summary
1H21 Results Summary Operational Highlights For personal use only NET ASSETS NOVONIX Battery Technology Solutions Half-year ending 31-Dec-20 NOVONIX Anode Materials During HY21, NOVONIX BTS has continued to see strong During HY21, significant progress has been made executing A$58,571,939 revenue
Slide 31: FY2021 Outlook
FY2021 Outlook NOVONIX Anode Material Battery Technology Solutions (BTS) For personal use only • Begin regular large volume deliveries for Samsung contract • Continue strong revenue growth in services and hardware commencing 2nd half 2021 sales • Progress Sanyo MOU supporting sample testing from • A
Slide 32: Contact Information
Contact Information CORPORATE OPERATIONS For personal use only • Chairman: • Group CEO: BTS - Bedford, Nova Scotia, CANADA Tony Bellas Dr Chris Burns 177 Bluewater Road, Bedford, NS B4B 1H1, Canada Email: tony@novonixgroup.com Email: chris@novonixgroup.com • Company Secretary and Financial • Group C
Slide 33: Risk Factors and Summary of the Underwriting Agreement
For personal use only 10 µm Graphite SC-622 Graphite SC-622 Risk Factors and Summary of the Underwriting Agreement
Slide 34: Risk Factors
Risk Factors 1. Supplier risks associated with materials supply contracts including requirements to meet supply specifications and other customer requirements On 9 December 2019 the Company announced a supply and R&D collaboration agreement with Samsung SDI, an international manufacturer of lithium-
Slide 35: Risk Factors (cont.)
Risk Factors (cont.) 6. Development and commercialisation The Company’s ability to generate revenues from its multiple anode products and technology, including the recently announced High Efficiency Continuous Graphitization Furnace Technology for Lithium-Ion Battery For personal use only Synthetic
Slide 36: Risk Factors (cont.)
Risk Factors (cont.) 10. Reliance on key management The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially on its senior management and its key personnel. Whilst the key management team has been For personal use only well establis
Slide 37: Risk Factors (cont.)
Risk Factors (cont.) 16. Tax law and application The application of and change in relevant tax laws (including income tax, goods and services tax (or equivalent), rules relating to deductible liabilities, or changes in the way those tax laws are interpreted, will or may impact For personal use only
Slide 38: Summary of the Underwriting Agreement
Summary of the Underwriting Agreement Citigroup Global Markets Australia Pty Limited ("Underwriter") will be the sole bookrunner, lead manager and underwriter of the Placement. The Company has entered into an Underwriting Agreement with the Underwriter in respect of the Placement ("Underwriting Agre
Slide 39: Summary of the Underwriting Agreement (cont.)
Summary of the Underwriting Agreement (cont.) • any adverse change occurs in the assets, liabilities, financial position or performance, profits, losses or prospects of the Company or the Group, including any adverse change in the assets, liabilities, financial position or performance, profits, loss
Slide 40: Summary of the Underwriting Agreement (cont.)
Summary of the Underwriting Agreement (cont.) • hostilities not presently existing at the date of the Underwriting Agreement commence (whether war has been declared or not) or an escalation in existing hostilities occurs (whether war has been declared or not) involving any one or more of Australia,
Slide 41: Summary of the Underwriting Agreement (cont.)
Summary of the Underwriting Agreement (cont.) If the Underwriter terminates its obligations under the Underwriting Agreement, its obligations under the Underwriting Agreement will immediately end. In this summary: For personal use only • "Announcement" means an announcement that discloses the Placem
Slide 42: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any cou
Slide 43: Foreign Selling Restrictions (cont.)
Foreign Selling Restrictions (cont.) European Union This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in For personal use only t
Slide 44: Foreign Selling Restrictions (cont.)
Foreign Selling Restrictions (cont.) Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other For personal use only offering
Slide 45: Appendix – NOVONIX Technology
For personal use only 10 µm Graphite SC-622 Graphite SC-622 Appendix – NOVONIX Technology
Slide 46: Battery Technology Solutions Segment Provides the Innovation Engine
Battery Technology Solutions Segment Provides the Innovation Engine for NOVONIX Battery Technology Solutions (BTS) provides cutting edge technology that is highly sought after for R&D services to create the next gen battery — accelerating R&D from years to weeks with proprietary technology For perso
Slide 47: NOVONIX's Complete Battery Cell Technology Leading the Way
NOVONIX’s Complete Battery Cell Technology Leading the Way for Next Generation EV Batteries Demonstrated and Projected Performance Predicted to Exceed 1 Million Miles(1) For personal use only SC NMC622 / NOVONIX Anode Material + Adv. Electrolyte SC NMC622 / Gr + Adv. Electrolyte SC NMC622 / Gr NMC62
Slide 48: Agreements with the Two Largest Battery Makers
NOVONIX Has Agreements with the Two Largest Battery Makers, These Manufacturers Represent 30% of the Global Li-ion Battery Market(1) SAMSUNG Supply Agreement and R&D Collaboration SANYO Commercial Collaboration For personal use only • Initial supply of 500 tons of synthetic graphite • Non-binding MO
Slide 49: DPMG: New Manufacturing Method for Anode and Cathode
DPMG: New Manufacturing Method for Anode and Cathode With multiple patent applications filed, NOVONIX’s Dry Particle Microgranulation (DPMG) technology delivers higher yields at lower costs For personal use only Input Material In-Process Product Graphite Materials 100% Yield (recovery of waste fines