Phoslock Environmental Technologies Limited · ASX:PET
Phoslock Environmental Technologies — Investor Presentation (April 2020)
20 slides from Phoslock Environmental Technologies's investor presentation, Apr 9, 2020
Slide 1: Accelerated Growth Platform
Accelerated Growth Platform 6 April 2020 1
Slide 2: Disclaimer and Important Information
Disclaimer and Important Information This presentation does not constitute investment advice. Neither this presentation not the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in Phoslock Environmental Technol
Slide 3: Building An Accelerated Growth Platform
Building An Accelerated Growth Platform o Positioning company beyond COVID – 19 o Taking advantage of China coming back on-line faster than expected o Production at record levels o Projects strong and demand increasing – commitments required now o No change to long term Chinese intent to clean up
Slide 4: FY2019 Financial Summary & 31 March Balance Sheet
FY2019 Financial Summary &. 31 March Balance Sheet o 2019 Revenue: $25.1m (up 40% YoY) o 2019 NPAT: $2.7m (loss of $1.0m: 2018) o Strong Operating Margins: 54% Gross Profit Margin o Net Cash from Operations for 2019: $7.6m 31st March 2020 Balance Sheet Position • A$10m in cash • Receivables/Inventor
Slide 5: PET FY2020 Cash Flow Forecast
PET FY2020 Cash Flow Forecast 5
Slide 6: Building An Accelerated Growth Platform - FY20 & FY21 – FY25
Building An Accelerated Growth Platform - FY20 & FY21 – FY25 Actual Forecast Pipeline* $ Million FY19 FY20 FY21 - FY23 Sales 25.1 50-70 380* Gross Profit – 50% GP 13.4 25-35 Op. Costs 10 12-15 EBITDA 3.7 12-20 * Conversion and timing of Pipeline Projects into Sales subject to a number of business ri
Slide 7: Forecast 2020 - $50-$70m Sales
Forecast 2020 - $50-$70m Sales China Projects: $40m-$55m – Forecast Maintained o Xingyun Lakes & Catchment – circa $10-15m o Shilongba Reservoir – circa $20m o Dianchi Catchment Area – scope being determined o Beijing Canals – Maintenance – circa $2m o Beijing Wetland – Maintenance – circa $2m o 20
Slide 8: Building an accelerated Growth Platform – Use of Funds
Building an accelerated Growth Platform – Use of Funds China rebounding more quickly than expected Changes in Balance Sheet , due to slower International sales o $10m – Project Funding - Shilongba & Dianchi projects - engineering works, accelerated funding for new and existing projects , starting Ap
Slide 9: Building an accelerated growth – people & structure
Building an accelerated growth – people & structure Key New Group Appointments: o Matt Parker new Group CFO o Chris Hui new Group Financial Controller o Ms. Zhou Yumin new Deputy General Manager Finance in China o Two Senior Engineers for Beijing and Yunnan projects Long Term Financing o PET current
Slide 10: COVID – 19 Update
COVID – 19 Update China Business o PET Factory closed on 20 January for Chinese New Year; re-opened 2 weeks later than scheduled on 17 February. o From 17 February to 1 March – 1 shift per day; from 2 March – 2 extended shifts per day . o Production of Phoslock for March totalled 1,400 tons – record
Slide 11: Building Accelerated Growth Platform - Summary
Building Accelerated Growth Platform - Summary o Raising capital to take advantage of immediate growth opportunities • Funding growth projects now – China’s accelerating economy. o Bridging across short term project requirements and long-term debt financing. o Positioning company beyond COVID – 19 p
Slide 12: Appendices
Appendices FLORIDA FLORIDAWETLANDS, POLAND WETLANDS,USA US DRINKING CANADA WATER RESERVOIR, BELGIUM DRINKING WATER RESERVOIR, BRAZIL PAMPULHA, BRAZIL 12
Slide 13: Total Addressable Market – THE WORLD
Total Addressable Market – THE WORLD Phoslock Offices/ Licensees 13
Slide 14: China Operations & Major Projects
China Operations & Major Projects Factory Hubei Yunnan Lakes 14
Slide 15: CHINA – enormous market with large Government Funding
CHINA – enormous market with large Government Funding Team of 60 PET employees working in China o Beijing – China HQ; sales; engineering team; project management o Changxing (150km inland from Shanghai) – factory; R&D; sales o Kunming – sales; project management Strategic Agreement with BHZQ has sig
Slide 16: Chinese Operation Structure
Chinese Operation Structure All Chinese Subsidiaries are 100% owned by PET o Phoslock Beijing – Sales & Marketing Company – run by Tingshan Liu (joined PET in June 2017) o Phoslock Changxing – Factory – run by Jason Hai (joined PET in June 2017) o Ms. Zhou recently appointed Dep GM Finance o Mr. Zha
Slide 17: Changxing Factory and R&D Centre
Changxing Factory and R&D Centre Changxing – 150km west of Shanghai manufacturing Phoslock® o Current factory Production Capacity increased to 20,000tpa o Now running at 50t per day o PET plans to run this factory until late 2021 o ISO Accreditation o WQA Accreditation Annually Second Factory secure
Slide 18: PET Operating Performance
PET Operating Performance 18
Slide 19: Capital Structure
Capital Structure Capital Structure (6th April, 2020) Company Name: Phoslock Environmental Technologies Limited ASX Code: PET Current Price: $0.57 Trading Range: (last 12 months) $0.30 – $1.60 Total Issued Shares: 565.0m Total Issued Options: 28.0m* Market Capitalisation: A$344 m Options: 25m @ $1.0
Slide 20: ASX Code – PET
ASX Code – PET PET is included in the ASX 300 Index Robert Schuitema – Managing Director Suite 403, email: rs@phoslock.com.au 25 Lime Street Sydney NSW 2000 Lachlan McKinnon – CEO AUSTRALIA email: l.mckinnon@phoslock.com.au Tel: +61 2 8014 7611 Michael Kotowicz – Investor Relations Web: www.phoslock
Phoslock Environmental Technologies — Investor Presentation (April 2020) on 6ix