Alexium International Group Limited · ASX:AJX
Alexium International — Investor Presentation (May 2013)
29 slides from Alexium International's investor presentation, May 30, 2013
Slide 1: Reactive Surface Treatment Technology
Not for General Distribution For personal use only Alexium International Group Limited® Reactive Surface Treatment Technology This presentation has been prepared by Alexium International Group Limited (“Alexium”) or the (“Company”). It should not be considered as an offer or invitation to subscribe
Slide 2: Company Overview
Company Overview For personal use only • HQ: Perth, Western Australia. Operations: Greer, South Carolina • Listed on the ASX (ASX: AJX), US (OTC QX) (AXXIY) & Frankfurt stock exchange (E7T.F) . • Established to exploit technology supported by a strategic commercial and technology relationship with t
Slide 3: Key Facts
Key Facts For personal use only KEY STATISTICS (30.01.2013) SHAREHOLDER STRUCTURE ASX Code AJX Current Share Price $0.05 Directors & Institutions, 24% 52 Week High $0.115 Management 34% 52 Week Low $0.05 Shares on Issue ~141.5 m Market Capitalisation $8.5 m Net Cash - Jan 2013 ~$1.3m Debt* $1.1m * 1
Slide 4: Company Board & Senior Management
Company Board & Senior Management For personal use only Gavin Rezos – Executive Director & Chairman • Extensive international investment banking experience • Held CEO positions in companies in Australia, the UK, US and Singapore • Non Executive Director of Iluka Resources Craig Smith Gander – Non Ex
Slide 5: Company Board & Senior Management
Company Board & Senior Management For personal use only Nick Clark – Chief Executive Officer • Qualified Lawyer in NSW and registered with the New York State Bar and CPA with AICPA • Long history in M&A, global stock markets and public company financings Stefan Susta – Chief Operating Officer • Over
Slide 6: Alexium "World's Best Technology 2009" - Getting Even Better
Alexium “World’s Best Technology 2009”* - Getting Even Better For personal use only • Reactive Surface Treatment (RST) chemistry invented & tested by US DoD • Investment of > $30 million by US DoD • Developed to change the surface properties of fibrous materials to give them new functions • Initial
Slide 7: Developments Leading to Product Launches
DEVELOPMENTS LEADING TO PRODUCT LAUNCHES For personal use only Novel, Eco- Product Brands: friendly Chemistry CLEANSHELL® CLEANSHELL® CB Clearly Exceptional ASCALON™ Differentiated Value NYCOLON™ Technology Proposition Alexium Product Launches Clear Market Commercial Demand Partnerships (Military/Co
Slide 8: An Exciting Product Pipeline – Focus on FR
AN EXCITING PRODUCT PIPELINE – FOCUS ON FR For personal use only Topical FR Surface Microwave FR Additives Treatments Treatments Processing Nylon Polymer Repellency Defense (CB) Fabrics Additives Treatments Nylon Fabric Paint Heat Sensitive Blends Materials Other Topical Paint Applications GROWTH LE
Slide 9: Alexium's FR Nylon Chemistry – Key Technical Points
ALEXIUM’S FR NYLON CHEMISTRY– KEY TECHNICAL POINTS For personal use only Novel: Hybrid resin is a combination of chemical and physical effects. Eco-friendly/Safe: By percent composition, primary components are silicone- based, secondary components are a wide range of inorganic and organic constituen
Slide 10: Unique Mechanism for Alexium's FR Products
UNIQUE MECHANISM FOR ALEXIUM’S FR PRODUCTS For personal use only Nylon Alexium FR coating When the flame-retarded nylon is exposed to high temperatures, the nylon melts into the interior and our coating migrates to the exterior. As a result, the coating smothers the fire by preventing air from getting
Slide 11: ASCALON FR Chemicals for Nylon
ASCALON™ FR CHEMICALS FOR NYLON For personal use only Product Performance: •Self-extinguishing, no melting/no dripping •Fabric is breathable and has a soft “hand” •Can be further functionalized (e.g., water repellency, antimicrobial) without damaging FR properties •Launderable/Durable •No Bromine/Ha
Slide 12: FR Nylon Fabric Value Proposition
FR Nylon Fabric Value Proposition For personal use only A Low Cost “Add-on” FR Protection with no/low Impact to Inherent Fabric Properties • Provides FR Treatment where Nylon is Currently Used “at risk” • Example: Military Cold Weather Gear,1st Responders, Workwear • Creates a Low Cost Alternative t
Slide 13: ASCALON Production Partnership – InChem Corp.
ASCALON™ PRODUCTION PARTNERSHIP – INCHEM CORP. For personal use only • Alexium has selected InChem Corporation as large volume toll manufacturer of ASCALON™ chemicals • Private, global supplier of custom chemicals • Plants in Rock Hill, SC and Duncan, SC • ISO9001 & REACH registrations; top OSHA saf
Slide 14: ASCALON Commercial Roll-out
ASCALON™ COMMERCIAL ROLL-OUT For personal use only • Enthusiastic response from industry leaders around the world – no directly comparable technology/product • Initial agreement with Duro Textiles covers North American markets and >95% nylon fabric applications • Target Markets > 4Mil yards (North A
Slide 15: Business Model / Revenue Model (e.g. Duro Textiles)
Business Model / Revenue Model (e.g. Duro Textiles) For personal use only Develop Core Product Development Contract Technology [Applied Solution] [Technology] Chemical Producer & License Distributor - InChem Agreement [Chemistry] Production Partner / Commercial User [Product] Revenue Streams • Produ
Slide 16: NYCOLON FR Chemicals for Nylon Blends
NYCOLON™ FR CHEMICALS FOR NYLON BLENDS For personal use only Topical FR Treatment of Nylon Blends • Standard military uniforms (BDU/ACU; est. >25Mil yards/yr. US DoD) • Provide general FR protection for Ny/Co – the “holy grail” of the US textile industry • Development contract with US Marine Corps t
Slide 17: FR Product Extensions
FR PRODUCT EXTENSIONS For personal use only FR Polymer Additives – Plastics •PA, PC, PE, etc. •Working with Major FR Chemical Company •Large Volume Applications •Development Initiated FR Polymer Additives – Paint •Potential Mid-size Applications to improve fire/heat resistance •Development not yet I
Slide 18: Legacy Applications - Ongoing
LEGACY APPLICATIONS - ONGOING For personal use only • Chemical & Biological Repellency (Military): • Cleanshell® CB chemistries designed to offer enhanced CWA protection. • Demonstrated more than 25X repellency improvement on Chemical Warfare Agent (CWA) simulants versus traditional fluorocarbon tre
Slide 19: Basis of Technology
Basis of Technology For personal use only • RST uses microwave energy to direct a precursor’s polymerization onto a substrate’s surface • RST Nanoscopic “shrink wrap” coating may chemically bond to the substrate or simply form an intractable coating at the substrate surface. • FR technology evolved
Slide 20: Alexium's Compelling Advantage
Alexium's Compelling Advantage For personal use only • Alexium's FR chemistry meets textile industry and regulators urgent demand for “green” FR chemistry to meet new strict environmental regulations • Technology is developed for use with nylon, one of the worlds strongest, most versatile and cost e
Slide 21: Intellectual Property and Agreements Summary
Intellectual Property and Agreements Summary For personal use only • US patent applied by US DoD • Alexium holds exclusive license for the US market (including military) • Alexium has filed patents in key territories globally (excluding USA) • Initial UK & Hong Kong, Singapore & Australia patents al
Slide 22: New South Carolina Facility
New South Carolina Facility For personal use only • Announced by South Carolina, Secretary of Commerce • 5 to 10 year tax ‘holiday’ • State & local property tax, corporate income tax, sales tax & job tax rebates training incentives from South Carolina & Greenville County • 11,000 ft2 R&D and demonst
Slide 23: Alexium's Compelling Advantage
Alexium's Compelling Advantage For personal use only Alexium's FR chemistry meets textile industry and regulators urgent demand for “green” FR chemistry to meet new strict environmental regulations Technology is developed for use with nylon, one of the worlds strongest, most versatile and cost e
Slide 24: Contact Details
Contact Details For personal use only USA Operations Headquarters: Alexium Inc. 8 Distribution Ct, Greer, SC 29650 USA P: +1 864 416 1060 F: +1 864 551 4555 Australia Corporate Headquarters: Alexium International Group Limited Suite 7, Norfolk House, 85 Forrest Street, Cottesloe, WA 6011 Australia P
Slide 25: Market Drivers – FR Chemistries
Market Drivers – FR Chemistries For personal use only Conventional FR Market Many of the most effective FR coating chemistries are now banned or being withdrawn from the European and US markets. Currently, approx. 40 million tonnes of FR chemicals are sold annually. Increased concerns regarding en
Slide 26: Ascalon Nylon Treatments: Market Competition
Ascalon™ Nylon Treatments: Market Competition For personal use only • Urgent Need by Military and for industrial application, operating “at risk”, but no FR solution commercially in use or available for Nylon apparel. Users of nylon (s.a. ECWCS) are currently exposed. Ascalon™ FR Treatment vs. Othe
Slide 27: Nycolon Nylon Blend Treatments: Market Competition
Nycolon™ Nylon Blend Treatments: Market Competition For personal use only • Standard issue 50/50 nylon-cotton uniforms (BDU, ACU, etc.) have no FR protection (> 25 Mil yards). • 88/12 FR nylon cotton-blends are available, but can’t exceed 12% nylon for FR protection and do not meet military specs fo
Slide 28: Polymer Additives: Market Competition
Polymer Additives: Market Competition For personal use only • Flame Retardant Chemical Industry growing – increased usage of FR-rated plastics in electronics, transportation, building, consumer products, etc. • Industry using conventional FR chemistries. Majority additives are halogen-based (bromine
Slide 29: Cleanshell Repellency Treatments: Market Competition
Cleanshell™ Repellency Treatments: Market Competition For personal use only • Generally, niche applications - primarily geared to advanced military applications. • Relatively slow adoption speed, despite technically advanced treatments. • Currently not a high priority area for Alexium. Cleanshell™ •
Alexium International Group — Investor Presentation (May 2013) on 6ix