Calix Ltd. · ASX:CXL
Calix — Investor Presentation (February 2024)
38 slides from Calix's investor presentation, Feb 23, 2024
Slide 1: Half Year Results FY2024
Half Year Results FY2024 Calix Limited 23 February 2024 calix.global
Slide 2: Important Disclaimer
Important Disclaimer This presentation has been prepared by Calix Limited (ABN 36 117 372 540) (“Company”). INVESTMENT RISK SUMMARY INFORMATION An investment in Calix securities is subject to investment and other known and unknown risks, some of which are beyond the control of This presentation cont
Slide 3: About Calix
About Calix Calix is an environmental technology company developing applications of its unique platform technology to solve global challenges in industrial decarbonisation and sustainability. We are building multiple businesses to deliver positive global impact in CO2 mitigation, sustainable process
Slide 4: Calix's core platform technology
Calix’s core platform technology A new way to “heat stuff up” Pre-ground CO2 captured minerals when processing carbonate materials CO2 CAPTURE Unavoidable process CO2 emissions from cement and lime production and CO2 from the atmosphere are captured for use or storage. Calciner tube Sustainable Proc
Slide 5: Competitive advantage
Competitive advantage A unique platform technology with multiple applications in major global markets • Global demand for industrial decarbonisation is being driven by government policy and regulation, climate commitments, and investor pressure. • Calix’s patented core platform technology is uniquel
Slide 6: Our strategy and business structure
Our strategy and business structure One core technology with multiple, low carbon applications into huge global industries ONE CORE PLATFORM TECHNOLOGY Our businesses CO2 Mitigation Sustainable Processing Magnesia Target industries Cement & lime Direct Air Capture Lithium Alumina Iron & steel Water
Slide 7: Policies driving decarbonisation
Policies driving decarbonisation Carbon penalties, value, tariffs, & policy support continue in Europe, US, & coming in Asia-Pacific… Europe – Latest news US – Latest news Asia-Pacific – Latest news • Jan 2024: Free EU ETS allowances will be • Nov 2023: Strong bipartisan support for 45Q4 • Jan 2024:
Slide 8: 1H FY24 Financial Results
1H FY24 FINANCIAL RESULTS 1H FY24 Results 23 February 2024 8
Slide 9: 1H FY24 financial update
1H FY24 financial update Growth in revenue streams as decarbonisation applications progress • Revenues grew to $16.3m, up 28% on the same period last year. Calix Limited 1H FY24 • Products & service revenues up 41% to $12.2m. financial result highlights • Grants & other income of $4.1m was in line w
Slide 10: Profit & Loss highlights
Profit & Loss highlights Revenue and margin growth supports investment in technology development and commercialisation 1H 24 1H 23 ($m’s) ($m’s) Key takeaways Revenue & other income 16.3 12.7 • Diversification of revenue streams Magnesia revenues 9.9 8.5 Leilac revenues 2.3 0.2 – Continued growth in
Slide 11: Balance Sheet strength
Balance Sheet strength Balance sheet strength & flexibility to pursue commercialisation opportunities 31 Dec 23 30 June 22 ($m’s) ($m’s) Key takeaways: Total current assets 67.6 89.1 • Balance sheet remains strong & Total Assets 113.2 127.5 essentially debt free Total Liabilities 19.0 22.6 • Flexibi
Slide 12: Consolidated cash flows
Consolidated cash flows Balance sheet strength to pursue commercialisation opportunities 1H 24 1H 23 ($m’s) ($m’s) Key takeaways: Cash flows used in operating activities (16.4) (11.0) • Working capital for investment in Receipts 10.4 9.0 capability will be partially offset through draw down on recei
Slide 13: 1H FY24 Operational Update: CO2 Mitigation
1H FY24 OPERATIONAL UPDATE CO2 Mitigation 1H FY24 Results 23 February 2024 13 13
Slide 14: Valuing the Opportunity – Leilac and Svante
Valuing the Opportunity – Leilac and Svante Inc…benchmark? Since 2021, we have undertaken significant commercial de-risking and expanded the total addressable market into Direct Air Capture (DAC) 2019 2021 2022 2023 • INVESTS €15m for ~7% equity, of 70% • Global, perpetual license • Leilac-1 of the
Slide 15: Leilac Project Updates
Leilac Project Updates Leilac-2 • Leilac-2 – targeting 100,000 tonnes per annum of CO2 separation at an operating cement plant. • 26th January – Heidelberg Materials announced the Leilac-2 Project will be relocated to another site following their decision to end clinker production in Hanover, German
Slide 16: Leilac Project Updates – Direct Air Capture
Leilac Project Updates Direct Air Capture • Leilac and Heirloom have signed a global and perpetual licence agreement that applies to all future Heirloom facilities, with a royalty floor of US$3 / tonne CO2 captured. • Heirloom is a Direct Air Capture (DAC) company with an objective of capturing 1 bi
Slide 17: A robust pipeline of projects
A robust pipeline of projects Detailed Project Pre-FEED / FID + Initial scoping scoping / FEED Operational Total discussions BOD construction MOU Aug 2021 21 7 4 1 1 34 Aug 2022 25 13 9 5 1 1 54 Feb 2024 34 28 11 5 2 1 1 82 Leilac-2 Leilac-1 • Pipeline growth: as of February 2024, there are 82 proje
Slide 18: Leilac's full-scale vision
Leilac’s full-scale vision FOR CEMENT… we need to mitigate 1.4 billion tonnes per annum of process CO2 emissions = up to 3,000 Leilac-3s ~2 built every week from now until 2050!! FOR DAC… potentially a similar scale opportunity ! 1H FY24 Results 23 February 2024
Slide 19: 1H FY24 Operational Update: Sustainable Processing
1H FY24 OPERATIONAL UPDATE Sustainable Processing 1H FY24 Results 23 February 2024 19 19
Slide 20: Zero Emissions Steel Technology
Zero Emissions Steel TechnologY Targeting lowest cost zero emissions iron & steel About ZESTY • Calix technology applied to Hydrogen Direct Reduction of Iron ore (H-DRI) • Can be easily and efficiently renewably-powered • Targeting theoretical minimum hydrogen use – simple gas recycle, no hydrogen w
Slide 21: Zero Emissions Steel Technology – FEED results
Zero Emissions Steel TechnologY Target Range for feed to an EAF ZESTY Demonstration Plant FEED study results Target Range for feed to a Melter / BF / BOF • The ZESTY FEED study for a 30,000 tonne per annum demonstration facility and an extended ore testing program have been completed. • The FEED stu
Slide 22: Valuing the opportunity - iron and steel
Valuing the opportunity - iron and steel Significant valuations look to have been achieved for competing green iron technologies Midrex technology – TRL9 for Nat Gas, maybe 6 for H2** H2Green Steel H2 Sep 23 Nat Gas No data on production US$1.5b capacity – still lab scale Recent Capital Raises – Gre
Slide 23: Sustainable lithium demonstration plant
Sustainable lithium demonstration plant Project is proceeding well – remains on time and budget • Calix and Pilbara Minerals (ASX: PLS) are building a 45%/55% JV mid-stream lithium-phosphate demonstration plant, which will use Calix’s electric calciner and be located at Pilbara Minerals’ Pilgangoora
Slide 24: Advanced Batteries restructure
Advanced Batteries restructure Now included as part of the Sustainable Processing line of business • Calix has produced Lithium Manganese Oxide based batteries in a commercial format battery pack and expanded its capability to new battery chemistries. • Analysis of Calix’s battery applications ident
Slide 25: 1H FY24 Operational Update: Magnesia
1H FY24 OPERATIONAL UPDATE Magnesia 1H FY24 Results 23 February 2024 25 25
Slide 26: Magnesia
Magnesia Water • Revenue grew to $9.9m, up 17% from the $8.5m in 1H23, supported by US sales from new product, ALKA-Mag at improved gross margins - 38% • Two new hydration plants now commissioned and able to support further growth in new and existing sales regions Agriculture: • EU field trials cont
Slide 27: Sustainability Update
Sustainability Update Ambition 1H FY24 achievements • Data collection for FY23 greenhouse gas collection completed Science-based emission • Continuous process improvements for more accurate emissions data reduction in line with collection. the 1.5-degree pathway • Supplier engagement to obtain more
Slide 28: Board of Directors
Board of Directors Board further strengthened with two new Directors – Dr Sarah Ryan and Peter Dixon Peter Turnbull, AM Alison Deans Helen Fisher Dr Sarah Ryan Peter Dixon Dr Phil Hodgson Dr Mark Sceats Non-Executive Chair Non-Executive Director Non-Executive Director Non-Executive Director Non-Exec
Slide 29: FY24 KPI Dashboard
FY24 KPI Dashboard Strong progress so far, with most KPIs on track KPI Dashboard for FY24 • ON TRACK • WATCH POINT • BEHIND Sustainable CO2 Capture Magnesia Processing GATEWAY Spodumene ● Spodumene Project Construction All High Level commenced SHESQ action ● Leilac2 all permitting and civil works Ir
Slide 30: Summary and H2 FY24 outlook
Summary and H2 FY24 outlook • Calix has developed a unique technology that can be applied across many industries, with a focus on key projects for the decarbonisation of cement and lime, iron and steel, and lithium processing. • Strong demand for Calix’s technology is being driven by government poli
Slide 31: Thank you
Calix Limited 1H FY24 Results 23 February 2024 Thank you Acknowledgement Social inclusion Sustainability of country statement statement Calix acknowledges the First Nations people Calix embraces diversity and inclusion. At Calix, sustainability means meeting and traditional custodians of the lands u
Slide 32: Mars is for quitters
Investor relations Media enquiries Investorrelations@calix.global media@calix.global www.calix.global Subscribe to our Newsletter Mars is for quitters
Slide 33: Glossary
Glossary 1H FY24 Results 33 23 February 2024 33
Slide 34: Glossary
Glossary Term Meaning Aluminium (Al) Chemical element with the symbol Al Anode The negative electrode of a battery Antimicrobial Antimicrobial products kill or slow the spread of microorganisms, including bacteria, viruses and fungi. AMR Antimicrobial resistance – the development of resistance in ba
Slide 35: Glossary
Glossary Term Meaning EAP Employee Assistance Program EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation Electrode The material that stores the lithium ions in a charged (anode) or discharged (cathode) state in a lithium-ion battery Electrolyte The medium that allows ions to move be
Slide 36: Glossary
Glossary Term Meaning LHM Lithium Hydroxide Monohydrate – used in the production of cathode active materials for lithium-ion batteries Lithium (Li) Chemical element with the symbol Li Lithium-phosphate / Lithium Salt / “Mid- A form of lithium that is high in lithium content, to be shipped and utilis
Slide 37: Glossary
Glossary Term Meaning Process emissions are inherent to the chemical reaction and are released directly and unavoidably from the chemical processing of raw material. They are distinct from Process emissions energy related emissions that may result from the consumption of fuel to heat the reaction. T
Slide 38: Mars is for quitters
Investor relations Media enquiries Investorrelations@calix.global media@calix.global calix.global Subscribe to our Newsletter Mars is for quitters