Alexium International Group Limited · ASX:AJX
Alexium International — Investor Presentation (October 2019)
28 slides from Alexium International's investor presentation, Oct 15, 2019
Slide 1: Strategic Growth Priorities
Strategic Growth Priorities Dr Bob Brookins, CEO Jason Lewis, CFO 15 October 2019
Slide 2: Alexium: Background
Alexium: Background Performance chemicals provider for advanced materials applications Key Features of Alexium • IP-driven products to address market needs Business Model • Application expertise to take innovations to market Company founded on deep Technical Expertise Innovation model driven by resp
Slide 3: Industry Expertise of Executive Leadership Team
Industry Expertise of Executive Leadership Team Dr. Bob Brookins – Chief Executive Officer and Managing Director • Worked over the past 18 years in materials science and synthesis of polymers/specialty products. • Led the development and commercialization of Alexium’s phase change material (“PCM”) p
Slide 4: Key Positions in Management Team
Key Positions in Management Team Allen Reihman – Chief Commercial Officer • Worked over 20 years in markets for polymers/specialty chemicals. • Served as Director of New Business Development for Invista where he led all phases of an innovation program, including product development, manufacturing, i
Slide 5: FY 2019: Executed to our strategic plan
FY 2019: Executed to our strategic plan • Refocused on high-margin cornerstone initiatives Repositioned the business • Exited unprofitable business lines Quarterly Cash Receipts in FY 2019 $2.5M • Major North American mattress brand selected Alexicool® as the key phase changing $2.0M material (PCM)
Slide 6: Strategic Plan: FY2020 to FY 2023
Strategic Plan: FY2020 to FY 2023 Established Developing Strategic Growth Programs Programs Opportunities Expansion in Electric Automobiles international bedding Expansion in US Markets Performance Apparel bedding market Workwear & Uniforms Commercialization of FR treatment for FR Nyco biodegradable
Slide 7: Expansion of Current Position in US Bedding Market
Strategy 1 Expansion of Current Position in US Bedding Market Established Program
Slide 8: Current Position in US Bedding Industry
Current Position in US Bedding Industry Established Program Cooling Chemistry Sales to the Bedding Market Over the past 18 months, Alexium has increased its 18 Current Market market position significantly in key textile markets 16 Remaining Market Share Share • mattresses (35% market share) 14 Alexi
Slide 9: US Bedding Industry: Market Sizes and Forecasted Growth
US Bedding Industry: Market Sizes and Forecasted Growth Alexium has targeted three key markets for revenue growth1,2 Mattress/Textile Mattress/Foam Top-of-Bed/Total 60 Projected Growth in Cooling Chemicals Market 60 60 Projected Growth in Cooling Chemicals Market Projected Growth in Cooling Chemical
Slide 10: US Bedding Industry: Alexiflam NF Opportunity
US Bedding Industry: Alexiflam® NF Opportunity Established Program • Foam mattress requires an FR sock made from a high cost glass fiber1 • The glass fiber poses respiratory hazards for consumers and difficulties for manufacturers Opportunity • To resolve these issues, Alexiflam® NF can be applied t
Slide 11: US Bedding Strategy: Leverage Current Position
US Bedding Strategy: Leverage Current Position OVERVIEW • Current market share in mattress/textile: 35% US Bedding: Total Addressable Markets1-3 • Current market share in mattress/textile (2019 & 2023) 200 FR Sock expected to grow further Top of Bed • Comparable growth is expected for other Mattress
Slide 12: Commercialization of FR NyCo technology for military applications
Strategy 2 Commercialization of FR NyCo technology for military applications Established Program
Slide 13: Alexiflam FR NyCo Technology
Alexiflam® FR NyCo Technology Established Program Application to nylon/cotton (NyCo) fabrics for military uniforms Alexiflam® FR NyCo Technology is a proprietary set of chemistry for wash- durable flame retardation of nylon/cotton fabrics commonly used for military uniforms. Key Alexiflam® FR benefi
Slide 14: Alexiflam FR NyCo Technology
Alexiflam® FR NyCo Technology Established Program Application to nylon/cotton (NyCo) fabrics for military uniforms VALUE PROPOSITION • Self extinguishes, forming a strong char • No holes or cracks in char • No melting or dripping • Improved fabric properties (e.g., tear strength, hand) over incumben
Slide 15: Current Status in Military Uniforms
Current Status in Military Uniforms Established Program Two Elements to FR NyCo Strategy: 1) Alexium partnership with Pine Belt Processing, current supplier to US Military Growth Strategy 2) Rapid adoption by key segment(s) of the US military then drive further growth Total Addressable Market: $90M
Slide 16: Phase 1 Process and Milestones
Phase 1 Process and Milestones STAGE # STATUS CURRENT WORK – STAGE 6 Stage 1: Adapt Alexium’s FR ACU tech design to General Uniform Specifications Scale up at Pine Belt facility • Production work at Pine Belt has been proceeding very Stage 2: Demonstrate 25x industrial launderability well and in
Slide 17: Expansion of Applicable Markets for Alexiflam products
Strategy 3 Expansion of Applicable Markets for Alexiflam® products Developing Program
Slide 18: Alexiflam NF
Alexiflam® NF Flame-treatment for cotton-rich materials Alexium recognized that established FR cotton technologies are simply too complicated and require too much nuance and developed to address this gap with a disruptive technology Simplified process Benefits of Durable finish (50+ laundering c
Slide 19: Alexiflam NF for Biodegradable Fleece
Alexiflam® NF for Biodegradable Fleece Developing Program • Synthetic fleece is widely used for consumer jackets and vests. • Recent environmental studies show the synthetic fibers readily break and contaminate Opportunity the environment1 Description • Alexiflam® NF can be applied to standard cotto
Slide 20: Alexiflam NF for General Workwear
Alexiflam® NF for General Workwear Developing Program Focus on leveraging the cost/manufacturing benefits of Alexiflam® NF • No specialized equipment required Global Production Market Share of Fire Resistant • No hazardous products required (such as ammonia or peroxides) Cotton by Regions (2015)¹ •
Slide 21: Alexiflam NF Licensing Model
Alexiflam® NF Licensing Model As previously announced, Alexium is working with ICL as a potential licensee of Alexiflam® NF. Sources of revenue are shown below: BACKGROUND ON ICL • Global specialty minerals and specialty chemicals company • Industry leader in phosphorus- and bromine-based flame reta
Slide 22: Expansion of Alexicool products to broader regional and adjacent markets
Strategy 4 Expansion of Alexicool® products to broader regional and adjacent markets
Slide 23: Alexicool Global Market Opportunities
Alexicool® Global Market Opportunities Developing Program China is a near-term strategic opportunity – planned entry in FY20 Mattress Industry Cooling Chemistry Usage • Est. textile market size: $11M per annum China Market • Est. foam market size: $24M per annum • Growing middle class to underpin ra
Slide 24: Electric Automobiles
Adjacent Markets for Alexicool® technology Strategic Opportunity Electric Automobiles1 • Critical metric for electric • 2 million vehicles were sold in 2018 automobiles is the life of the battery globally. • Alexicool® products provide a non- • At that volume and with standard electric means of cont
Slide 25: Performance Apparel
Adjacent Markets for Alexicool® technology Strategic Opportunity Performance Apparel1 • Cooling and comfort is integral to the • Global sales of performance apparel performance apparel market totaled $165B in 2017 • Alexicool® products provide a durable • Based on standard applications of cooling pr
Slide 26: Alexium Vision for Growth
Alexium Vision for Growth FY 2021+ STRATEGY 1: US Bedding • Maximize position in US bedding market ($195M addressable market – 2023) FY 2020 STRATEGY 2: US Military Applications STRATEGY 1: US Bedding • Broad adoption by US military • Further expansion of sales in three key ($90M addressable market)
Slide 27: Contact: InvestorRelations@AlexiumInternational.com
Contact: InvestorRelations@AlexiumInternational.com
Slide 28: Disclaimer
Disclaimer To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever being accepted by Alexium International Group Limited (Alexium) or any of its related entities or their respective directors or officers, employees, advisors an
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