SRJ Technologies Group PLC · ASX:SRJ
SRJ Technologies — Investor Presentation (December 2020)
32 slides from SRJ Technologies's investor presentation, Dec 7, 2020
Slide 1: Company Presentation December 2020
For personal use only SRJ Technologies Group plc ARBN 642 229 856 Combining innovation and world class engineering to provide weld-free coupling and leak containment solutions for pipeline and process pipework systems Company Presentation December 2020 SRJ Technologies Group plc 1
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer Summary Information forward-looking statements speak only as of the date of this document. Forward Although SRJ believe that these measures provide useful information about the For personal use only looking statements should not be relied on as an indication or guarante
Slide 3: SRJ Overview
SRJ Overview For personal use only SRJ develops and distributes weld-free coupling and leak containment solutions targeting oil, gas, LNG and mining industries Suitable for Faster, cheaper Disrupting the High barriers to Strategic High quality pipework systems and safer pipe US$1.43 billion1 oil ent
Slide 4: Investment Highlights
Investment Highlights For personal use only Strong industry Management Intellectual Competitive Sales tailwinds team property advantage leverage Ageing assets and High quality Portfolio of registered SRJ’s coupling provides Strategically aligned increasing regulatory management team with intellectua
Slide 5: Recent Commercial Milestones
Recent Commercial Milestones For personal use only Global collaboration agreement with John Crane to detect fugitive emissions 1 Nov 2020 Strategic alliance agreement with Mitsui ZAMIL Operations & Maintenance appointed as Saudi Arabia agent PSSS added Boltex® for rental to market Successfully compl
Slide 6: Positioned to Capitalise on Industry Tailwinds
Positioned to Capitalise on Industry Tailwinds For personal use only Push Pull Market Drivers Industry Challenges Economic drivers: Good asset integrity Ageing Assets: Replacement of pipelines takes management reduces ongoing maintenance and significant time with long plant downtime and repair requi
Slide 7: Competitive Advantage
Competitive Advantage For personal use only • Product advantages: Technically superior products in terms of safety (weld-free) Traditional SRJ weld-free and operation (quick installation) with inherent flexibility to welded flanges coupling adapt their use to a wide range of contexts Approximate hou
Slide 8: Business Model
Business Model Holistic, end-to-end solution reducing operational downtime by enabling faster, less For personal use only expensive and safer pipe replacement Consulting services to structure Development of pipe system Low overhead SRJ products into solutions and leak containment solutions supply ch
Slide 9: Growth Plan
Growth Plan For personal use only Innovation 2022+ International Expansion 2021-22 • Continuous product design and Australian Growth 2020-21 service innovation • Build UK/Europe and Middle East • Convert previously developed sales organisation (ZAMIL secured bespoke solutions into new • Establish pa
Slide 10: SRJ Sales Opportunities
SRJ Sales Opportunities For personal use only NEW PROJECTS EXISTING OPERATIONS NEW ASSETS – Capital Expenditure (CAPEX) EXISTING ASSETS – Operational Expenditure (OPEX) SRJ current revenue based on OPEX only Weld-free coupling As assets continue to age the repair and maintenance work for SRJ Project
Slide 11: Sales Pipeline
Sales Pipeline For personal use only 326 Key facilities/vessels 100 facilities/vessels 17 facilities/vessels $10M+ $5M-10M $2M-5M $1-2M Negotiation Proposal ~$6.5m <$1M ~$30m Pre-Proposal Legend FPSO ~$132m Offshore LNG 1. There is no guarantee that any opportunity in “Pre-Proposal”, “Proposal” or “
Slide 12: About Mitsui & Co
About Mitsui & Co For personal use only Mitsui & Co 1 • Listed on the Tokyo Stock Exchange (TYO:8031), Mitsui & Co is one of the world's most diversified trading, investment and services enterprises across industries including iron ore, coal, oil, gas, power generation, transportation, construction
Slide 13: Mitsui & Co: Collaboration
Mitsui & Co: Collaboration For personal use only Seek to capitalise on the diverse range Collaboration objectives include1 of assets in which Mitsui has ownership or an equity interest. Can deliver a range of mutually Analyse and reduce asset integrity risks inherent in Mitsui invested assets benefi
Slide 14: Mitsui & Co: Collaboration – cont'd
Mitsui & Co: Collaboration – cont’d For personal use only EPRS - Current consumption of Products and Services for Brownfields inclusive of pipe replacements SRJ and Mitsui develop Brownfields Upgrades / Extensions - a strategy to deploy SRJ Future consumption of Products and product and services Ser
Slide 15: About John Crane
About John Crane For personal use only John Crane1 • John Crane is a subsidiary of Smiths Group plc, a global technology business listed on the London Stock Exchange (LON: SMIN) • John Crane have an extensive global sales and service network in the mechanical seal industry, with over 200 sales and s
Slide 16: John Crane: Collaboration
John Crane: Collaboration For personal use only The global collaboration agreement between SRJ and John Crane is expected to offer an end-to-end service to detect, evaluate and mitigate sources of fugitive methane emissions from process plants and pipelines. SRJ pressure containment solutions for pi
Slide 17: Company Highlights
Company Highlights For personal use only Strong industry Ageing assets and increasing regulatory pressure on oil and gas tailwinds operators drive ongoing demand for SRJ solutions Management High quality management team with significant global experience in team the oil and gas industry Intellectual
Slide 18: Appendices
For personal use only Appendices SRJ Technologies Group plc 18
Slide 19: Board of Directors
Board of Directors For personal use only ROBIN PINCHBECK ALEXANDER WOOD GRANT MOONEY DR ANDREW MITCHELL Non-Executive Executive Director & Non-Executive Non-Executive Chairman Chief Executive Officer Director Director • Over 40 years in oil and • Founder and CEO of SRJ • Principal of Mooney & • Non-
Slide 20: Key Management
Key Management For personal use only ROGER SMITH STEFAN McGREEVY Dr PAUL EASTWOOD DAVID MILNER Head of EMEA Chief Financial Officer Technical Director Director, SRJ Tech Australia Pty Ltd • Over 25 years experience in • Over 20 years experience • A qualified engineer with • Former CEO of e2o, an the
Slide 21: History & Timeline
History & Timeline For personal use only IP DEVELOPMENT TESTING, CONSOLIDATION AND PATENT REGULATION AND AND CLIENT COMMERCIALISATION PROTECTION APPROVALS VALIDATION 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 • SRJ Coupling • Company • Lloyds rating • Lloyds rating • IACS P2 • Awarded •
Slide 22: Distribution: Alliances & Relationships
Distribution: Alliances & Relationships For personal use only EnerMech Mitsui & Co John Crane PSSS • SRJ signed a global • Strategic alliance with Mitsui • Global collaboration • Memorandum of collaboration agreement who has also become a agreement with US-based Understanding signed with with EnerMe
Slide 23: Australian Pipe Infrastructure Market
Australian Pipe Infrastructure Market For personal use only Australia SRJ is targeting: • 39,000 km of high pressure transmission pipes1 • Operating expenditure (opex) projects for • 29 major oil and gas existing pipe assets that processing facilities with are aging and require significant piping sy
Slide 24: Product Offering Matching the Market
Product Offering Matching the Market For personal use only Portfolio of proprietary asset integrity products protected by 7 patent families with 28 granted patents in 25 countries SRJ Weld Free Multi-Shell Repair Bespoke Enclosure BoltEx® Mechanical Couplings Clamp (“MSRC”) Repair units Weld-free an
Slide 25: Oil and Gas Pipelines
Oil and Gas Pipelines For personal use only SRJ provides solutions to all stages of the oil and gas journey (upstream, midstream and downstream) Source: Definitions from PwC - https://www.pwc.com/gx/en/oil-gas-energy/ publications/pdfs/pwc-usenergy-revolution-role-of-private-equity-v2-pdf.pdf SRJ Te
Slide 26: Global Commissioning of New Oil & Gas Pipelines
Global Commissioning of New Oil & Gas Pipelines For personal use only Source: Global Fossil Infrastructure Tracker, January 2019 SRJ Technologies Group plc 26
Slide 27: Product Advantages
Product Advantages For personal use only SRJ Technologies Group plc 27
Slide 28: Competitive Landscape
Competitive Landscape For personal use only Capital expenditure (greenfield) Operating expenditure (brownfield) The main pipe joint product used Permanent Replacement Temporary Repair in pipelines is the welded flange SRJ competes with welded flanges and mechanical coupling providers SRJ competes wi
Slide 29: Outsourced Manufacturing
Outsourced Manufacturing For personal use only • Outsourcing manufacturing allows SRJ to focus on sales • Manufacturers in place (two in Australia, one in UK) to service current demand in Australia and Europe • Discussions with manufacturers in other regions commenced • Aligns SRJ with the ‘local co
Slide 30: Intellectual Property
Intellectual Property For personal use only • SRJ has focused heavily on protecting its intellectual property with 7 patent families, totalling 38 applications, of which 28 are now granted patents across 25 countries 1 • Intellectual property rights are held by Acorn Intellectual Properties Limited,
Slide 31: Investor Enquiries
For personal use only Investor Enquiries Alexander Wood CEO, SRJ Technologies plc info@srj-technologies.com The release of the presentation has been approved by the Board SRJ Technologies Group plc 31
Slide 32: For personal use only
For personal use only SRJ Technologies Group plc 32
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