Phoslock Environmental Technologies Limited · ASX:PET
Phoslock Environmental Technologies — Investor Presentation (March 2021)
33 slides from Phoslock Environmental Technologies's investor presentation, Mar 31, 2021
Slide 1: Phoslock Environmental Technologies (PET) - Business and strategy update
MARCH 2021 Phoslock Environmental Technologies (PET) World Leaders in Water Remediation Business and strategy update 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: Strategy Update: Key Challenges & Developments in FY20
Flooding in China results in Further investments in project delays management strength; STRATEGY UPDATE process and systems improvements; R&D and corporate governance… COVID-19 negatively impacts Key on both project timing and working capital and a review of manufacturing expansion Challenges & opti
Slide 4: 2020 Full Year Results impacted by a number of issues
2020 Full Results impacted by STRATEGY UPDATE a number of issues Year Results Lower revenues due to Higher expenses due to China flooding; COVID- restructuring costs in 12 Months To related delays (global); China; investigation- Key Financial 12 Months To December 2019 and review of China related co
Slide 5: Business Update: COVID-19 Impacts
BUSINESS UPDATE COVID-19 Impacts Major impact on Government spending priorities and treatment windows Limited impact on Difficulty in Deferral of some Impact on accessing sites; remediation business manufacturing / restricted travel projects – but development production conditions relatively few act
Slide 6: China Issues & Reset
China Issues & Reset STRATEGY UPDATE What Happened Our Response Irregularities identified PET shares go into Thorough and Comprehensive review during audit of first half voluntary suspension independent of financial reporting accounts – investigation of all procedures, delegated investigations initi
Slide 7: Business Review FY20
Business Review FY20 Projects completed or Successful trial work commenced in Brazil; completed in Morrison Lake STRATEGY UPDATE Europe and Nth America (Michigan) and Kitsap Lake (Washington State) COVID delays particularly impacted European projects with several deferrals China: Multiple projects o
Slide 8: Outlook FY21
Outlook FY21 STRATEGY UPDATE Ongoing uncertainty due to Additional trial work COVID impacts, but expect planned in USA (Florida, those headwinds to ease Utah, Texas) over course of the year and some delayed projects to commence Regulatory changes in Canada being closely managed Projects expected to
Slide 9: Strategy Update
STRATEGY UPDATE Strategy Update 9
Slide 10: About Phoslock Environmental Technologies
About Phoslock STRATEGY UPDATE Environmental Technologies High phosphorous levels often result The Phoslock technology is now in eutrophication and are one of the being expanded into international major contributors to water pollution markets, with additional technical around the world, driven by an
Slide 11: Key Investment Highlights
Key Investment Highlights STRATEGY UPDATE Proprietary water Successful applications Established in key global remediation technology across more than 300 regions including Europe, with important water bodies in more The Americas, China and environmental benefits than 20 countries Asia/Pacific ▪ Chin
Slide 12: Global presence and staff
Canada STRATEGY UPDATE Subsidiary Europe Head of International Sales (UK) USA R&D (Germany & Subsidiary Scotland) China Fulltime commercial Manufacturing Lead and R&D (Changxing) Distribution partner – SePRO Sales Office (Beijing) Brazil Distribution licensee - Global Hydroscience Australia Operatin
Slide 13: Growth Strategy
STRATEGY UPDATE Growth Focused expansion into targeted markets Segmenting our markets to identify new and Securing partnerships that meet shared Strategy additional opportunities objectives Key in-market distribution partnerships, supported Water body type; Capitalising on by local Phoslock commerci
Slide 14: Addressing a growing environmental, economic and human health challenge
Addressing a growing environmental, STRATEGY UPDATE economic and human health challenge Deteriorating water quality “At current rates of Freshwater eutrophication has been is a major global problem, population growth estimated to cost the U.S. economy driven by climate change, and climate change US$
Slide 15: Our Phoslock Treatment Technology Platform
Our Beijing Canal STRATEGY UPDATE Phoslock Treatment Technology Platform Before March 2018 Phoslock® is a CSIRO developed formulation of Bentonite Lanthanum Locks up Environmentally Internationally phosphorous friendly – non toxic to certified for use in After September 2018 safely and humans, anima
Slide 16: Strong Independent Validation
Strong Strong independent and scientific validation is a key STRATEGY UPDATE requirement for government regulatory authorities Independent assessing options for management of water quality Validation Phoslock was able to rapidly (<2 weeks) and significantly (p < 0.0005) decrease total (>80 %) and fr
Slide 17: Successful Case Studies
Successful Case Studies STRATEGY UPDATE Lake Bromont Canada 2017 Serpentine Lake London 2012 & 2019 Before After Dolors Planas, a researcher and Professor Emeritus at the Phoslock is being used to manage phosphorus levels in Université du Québec à Montréal: “Total phosphorus London’s Serpentine Lake
Slide 18: Our Competitive Position
STRATEGY UPDATE Phoslock is currently the only product on the market which binds phosphorus and keeps phosphorus Our Competitive bound across the entire pH range found in natural water bodies. Unlike products like aluminium salts, which are commonly used in the U.S., the introduction of Phoslock int
Slide 19: Go-To-Market Strategy
Go-To-Market Y UPDATE Strategy SS SBTURSAI TN EE G Requires significant testing and Strong referral system capitalises analysis to demonstrate efficacy of on successful treatments PET utilises its own in-market treatment and expected outcomes elsewhere, with clear cost/benefit presence and/or locall
Slide 20: Expanding Opportunities As We Diversify Into Global Markets
Expanding Strong platform to work from, with successful projects , resources and structure already in place. Work undertaken or STRATEGY UPDATE Opportunities As underway in: We Diversify Into Europe Germany, UK, The Americas USA, Canada, Brazil Asia Pacific Australia/NZ, Global Markets Netherlands,
Slide 21: And Expand Into Additional Market Segments
And Expand Into Additional Market Segments . . . STRATEGY UPDATE Current Focus & Positioning Target Expansion Water Bodies Freshwater lakes, reservoirs, canals Rivers, inflow sources Segments Recreational, environmental, drinking water Recreational, environmental, drinking water Customers Government
Slide 22: The China Reset
Significant changes have been made to ensure the business conforms to appropriate governance, cultural The China remains an important and business discipline standards Y UPDATE growth opportunity for PET China Local organisation has been Corporate governance, restructured, with new processes and sys
Slide 23: Protecting The Business
01 02 STRATEGY UPDATE Independent market review Investment in new systems informs restructure of China (global) to provide greater business visibility and improved New management; new sales internal communications structure; improved systems and greater oversight/accountability 03 04 New financial r
Slide 24: Production Efficiency
STRATEGY UPDATE Production efficiency Manufacturing program underway to identify cost savings Phoslock is manufactured in an ISO compliant factory in Changxing, China Previous plan to construct 2nd manufacturing facility in China reviewed. Plant to be located elsewhere to optimise supply chain flexi
Slide 25: Investing in new growth opportunities
Investing in new Our R&D is focused on developing environmental restoration technologies STRATEGY UPDATE for both static and flowing waterbodies growth opportunities Moving to a more New research New research collaboration in place collaboration with with The Water CSIRO ‘Water for the focused R&D p
Slide 26: A Clear Path To Growth
A Clear Path To Growth STRATEGY UPDATE And Increased Value A focused R&D investment that delivers A more balanced new product/service geographic exposure opportunities and Improved reporting as the Company systems; expanded facilitates entry into new A restructured China expands into market segments
Slide 27: Key Priorities For The Next 12 Months
Reset stable business Accelerated Board renewal Key Priorities platform in China Geographic process STRATEGY UPDATE commercialization For The Next 12 Months Resume trading on Manufacturing review Appoint commercial ASX and decision on new leads in Europe, plant location Canada & Asia/Pac Canadian pr
Slide 28: Strong Funding Position
Strong Funding STRATEGY UPDATE Position Cash / cash equivalents Abnormal costs (as at 31 December associated with China 2020): $30.5M investigations and audit reducing in FY21 Lower working capital Lower fixed cost base and increased margins following review of due to inventory write- overheads down
Slide 29: Positive Growth Outlook
Positive Growth STRATEGY UPDATE Outlook Successful trial work now being reviewed Additional trial work scheduled to by prospective customers commence over coming months Consistent & strong leads on new projects Increased opportunities as COVID-19 impacts recede – Governments reprioritise environment
Slide 30: Board & Management
Board & Management STRATEGY UPDATE Laurence Freedman AM David Krasnostein AM Lachlan McKinnon Matthew Parker Nigel Traill Chairman Non-executive Director Managing Director & Company Secretary & General Manager - (retiring AGM, May 2021) (effective 5 April) Chief Executive Officer Chief Financial Off
Slide 31: Summary
Summary STRATEGY UPDATE Phoslock technology The target market for The Company is Decisive steps taken PET is positioned for has a clear Phoslock technology pursuing a strategy to address China sustainable and competitive is substantial and of focused fraud issues and profitable growth advantage and
Slide 32: More than successful applications…..it works!
More than 300 successful STRATEGY UPDATE applications…..it works! Lake Lorene, Washington State, USA 32
Slide 33: ASX Code – PET
ASX Code – PET Level 16 T +61 3 91100002 1 Collins St W www.phoslock.com.au Melbourne , 3000 Vic , AUSTRALIA Lachlan McKinnon - CEO E lmckinnon@phoslock.com.au Michael Kotowicz – Investor Relations E ir@phoslock.com.au
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