Alexium International Group Limited · ASX:AJX
Alexium International — Investor Presentation (May 2017)
24 slides from Alexium International's investor presentation, May 17, 2017
Slide 1: May 2017
For personal use only May 2017
Slide 2: Agenda
2 Agenda For personal use only 1 Alexium Overview 2 Business approach and Market Strategy 3 Financial Snapshot 4 Product Overview 5 Key market drivers 6 Board and Management Team This presentation has been prepared by Alexium International Group Limited (“Alexium”) or the (“Company”). It should not
Slide 3: Company Overview
3 Company Overview For personal use only Shareholder Structure Key Statistics Directors, Management & ASX Code AJX Founders, 25% Current Share Price $0.50 52 Week High $0.91 HNW & Retail, 47% 52 Week Low $0.47 Shares on Issue ~303m Market Capitalisation ~$153m Cash (31 December 2016) ~$11.4m Institu
Slide 4: Alexium – Positioned for Success
4 Alexium – Positioned for Success For personal use only Alexium Product Launches ✓ Clear Market Demand ✓ Commercial Partnerships ✓ Clearly Differentiated Technology ✓ Scalable Capital Light Business Model ✓ Innovative Environmentally Friendly Chemistry ✓ Expanding Patent Portfolio ✓
Slide 5: Alexium is a Specialty Chemicals developer
5 Alexium is a Specialty Chemicals developer Who We Are For personal use only • Specialty chemical solutions developer and provider located in Greer, SC • Focus on environmentally friendly, non-hazardous Flame Retardants (FR) and Phase Change Materials (PCM) that offer superior performance • IP port
Slide 6: The Alexium Strategy
6 The Alexium Strategy For personal use only • Identify key markets in significant transition that are underserved by current market players and/or structure • Provide unparalleled integration support with end user customers to assist early adoption and product innovation • Attack markets via value
Slide 7: Global Sales Partnerships
7 Global Sales Partnerships For personal use only Alexium has established strategic partnerships in order to rapidly scale its go-to-market capabilities • Partnerships were carefully selected according to geography and sector expertise • 48 sales agents (with 7 key partnerships) representing various
Slide 8: Toll Manufacturing/Supply Chain
8 Toll Manufacturing/Supply Chain For personal use only Scale through asset-light operating model • Strategic partnerships established to rapidly scale go-to-market capabilities. • Manpak is in Australia, Brocolor in Germany; VLS in Belgium, Euroflam in the UK with the other partners being located i
Slide 9: Financial Overview
9 Financial Overview For personal use only Cash Receipts (A$m) from Customers Key Takeaways A$m 7 • Sales to customers continue to trend 6 upwards quarter over quarter 5 • Alexium will continue to see a growth in 4 recurring revenue as new customers are onboarded 3 • Alexium has current customers 2
Slide 10: Financial Overview
10 Financial Overview For personal use only Current Liabilities Balance Sheet (31 December 2016) Trade and other payables 5,856,923 Provisions 94,051 Other liabilities - deferred income 27,108 Total Current Liabilities 5,978,082 Current Assets Cash and cash equivalents 12,357,122 Non-Current Liabili
Slide 11: Fire Retardants – Key drivers
11 Fire Retardants – Key drivers • FR chemistry renders a substance difficult to ignite and inhibits the ignition and the For personal use only spread of a flame. • Application to textiles currently, but growing in other areas. • US$7.0B annual global industry showing c7.5% CAGR through to 2019. • R
Slide 12: Fire Retardants – Key drivers
12 Fire Retardants – Key drivers For personal use only Alexium Advantage • Alexium’s proprietary chemistries are eco-conscious and non-hazardous • Alexium is able to meet and/or exceed market needs while hitting price points to win business and achieve Gross profit margins of 30-60% • No other chemi
Slide 13: Thermal Regulation - Key Drivers
13 Thermal Regulation - Key Drivers • PCMs are materials that change from one state to another and can re-charge itself For personal use only when not in use; in this case for textiles, it is a chemistry that when applied, can absorb heat and provide a cooling touch • Markets include: bedding, under
Slide 14: Thermal Regulation - Key Drivers
14 Thermal Regulation - Key Drivers For personal use only Alexium Advantage • Alexium has developed Alexicool, a combination thermal regulation, flame retardant and anti-odour package. • Wash cycle is far longer; Alexicool can apply to garments for far longer than competition. • Can offer cooling an
Slide 15: Fire Retardant Market Highlights
15 Fire Retardant Market Highlights For personal use only 1. Flame Retardant Textile Markets • Alexium is in scale-up or active selling of FR chemistry with numerous key players in three key commercial textile markets: Transportation, Decorative Fabrics and Outdoor Fabrics • FR chemistry sales into
Slide 16: Fire Retardant Market Highlights
16 Fire Retardant Market Highlights For personal use only 2. Military Flame Retardant Textile Markets • Currently, only 10% of military personnel get FR protected uniforms is due to high cost of incumbents • FR Army Combat Uniform is +US$100m p.a. annual industry • “Holy grail” is to treat standard
Slide 17: Fire Retardant Market Highlights
17 Fire Retardant Market Highlights For personal use only 3. Flame Retardant Cotton – Alexiflam NF • FR cotton chemistry market +US$250m per year. • FR cotton chemistry market dominated for decades by two products, Pyrovatex CP and Proban. • Difficult application process and high levels of formaldeh
Slide 18: Fire Retardant Market Highlights
18 Fire Retardant Market Highlights For personal use only 4. Flame Retardant Epoxy Market • FR chemistry for electronics currently exceeds US$1.3B per year. • Current market serviced by halogenated materials or ineffective materials. • Eco-conscious materials which work at low loadings are highly de
Slide 19: Thermal Regulation Market Highlights
19 Thermal Regulation Market Highlights For personal use only 1. Bedding • Key driver for bedding industry is to combat “hot” feel of mattresses. • Thermal Regulation chemistry demand in this market rapidly escalating. • Current offering does not satisfy cost or performance requirements of large seg
Slide 20: Thermal Regulation Market Highlights
20 Thermal Regulation Market Highlights For personal use only 2. Pillows & Bedding Auxiliaries • Same market drivers as mattresses. • Alexium recently signed MOU with Pegasus Home Fashions to offer Alexium-treated pillows in major retailers. • Alexium actively working with other pillow suppliers in
Slide 21: Board of Directors
21 Board of Directors Gavin Rezos – Executive Chairman For personal use only ▪ Extensive international investment banking experience ▪ Held CEO positions in companies in Australia, the UK, US & Singapore ▪ Non Executive Director of Iluka Resources Nick Clark – CEO and Executive Director ▪ Multi disc
Slide 22: Executive Management
22 Executive Management Nicholas Clark– Chief Executive Officer For personal use only Nick is responsible for the overall strategic development and ongoing growth of Alexium International. As CEO Nick works closely with the Executive Leadership Team in Business Strategy, Management, and Leadership.
Slide 23: Executive Management, Continued
23 Executive Management, Continued Mark Wise– Vice President of Investor Relations For personal use only Mark is responsible for overall management of Alexium’s IR and Communications work. Mark works closely with institutions and retail shareholders along with media and PR firms ensuring that the co
Slide 24: Contact
For personal use only Contact: InvestorRelations@AlexiumInternational.com U.S.: +1.864.254.9923
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