Alexium International Group Limited · ASX:AJX
Alexium International — Shareholder Meeting (November 2024)
27 slides from Alexium International's shareholder meeting presentation, Nov 20, 2024
Slide 1: Alexium International Group Limited Annual General Meeting
ALEXIUM INTERNATIONAL GROUP LIMITED Annual General Meeting ABN 91 064 820 408 20 November 2024 PRESENTED IN US DOLLARS 1
Slide 2: 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
Slide 3: Company overview
A performance materials company leveraging proprietary technical innovations to deliver thermal regulation, dehumidification and flame-retardant solutions. A pioneer in microencapsulation specializing in phase change materials and innovative composites that offer adaptive thermal management thro
Slide 4: Introduction
Introduction FY24 did not yield the targeted financial Culture FR Recapitalisation results, however it was a significant year of Sales mPCM progress on Restructure many fronts.
Slide 5: FY23/24 Review
FY23/24 Review 5
Slide 6: Background (Late 2023), Challenges, Response
Background (Late 2023) Challenges Response Two-year slump in revenues due to a weak Pivoted business and product development bedding market. strategies. Over-concentration of Phase Change Material Expanded focus to diversify revenue streams and (PCM) sales in the North American bedding reduce market
Slide 7: FY24 Recap: Key Actions and Changes
Sales Team Development Recruited experienced professionals to strengthen the sales team Notable increase in sales activity by Q4 FY24 International Expansion Initiated sales efforts in new international markets (Australasia, FY24 Recap Asia, and Europe) Key Actions and Advisor and Board Strengthenin
Slide 8: FY24: Product Development Milestones
FY24: Product Development Milestones Improved Alexium’s mPCM manufacturing, quality, and performance opening new market opportunities Continued market penetration of BioCool® products in North America and globally, supporting ESG goals Expanded Eclipsys® applications in the bedding market, Complete
Slide 9: FY25
FY25 9
Slide 10: FY25 Growth and Diversification Strategy
Goal Execute the "Grow and Diversify" strategy to aggressively increase revenues in core and breakthrough markets. Five Critical Focus Areas for FY25 1. Maintain Key Accounts & Sales in North American Bedding FY25 Growth and Retain and grow existing customer base in the core market. 2. Saturate the
Slide 11: Sales Priorities
Core Market (Bedding) • Focus on deepening relationships and increasing sales to North American bedding customers. • Diversify product offerings within the bedding sector (e.g., DelCool , Eclipsys®, FR technologies). Global Expansion Repeat multi-product strategy (PCM + new technologies) to new acco
Slide 12: FY25 Operational Priorities
FY25 Operational Priorities Contract Manufacturing - add new contract manufacturing partners for increased capabilities and capacities Continued revenue growth through further saturation of the bedding markets (textile & foam) Supplier Alliance Agreements – finalize agreements for co-development o
Slide 13: FY25 Operational Priorities – Product Focus
FY25 Operational Priorities – Product Focus AlexiCool® – new manufacturing process for new, higher solids slurries, dry mPCM, and plus derivatives Continued revenue growth throughBioCool® - new manufacturing process for new, higher further saturation of the bedding solids slurries, dry mPCM, and p
Slide 14: Key Objectives and Milestones
Double FY24 Sales Volume Increase from $500K to $1MM month-over-month (cash-positive threshold). Sustain $1MM+ Monthly Sales Establish a sustained monthly sales volume above $1MM as a long-term revenue goal. Long-term Supply Agreements Key Objectives Secure high-volume, long-term contracts to ensure
Slide 15: FY25 Outlook
• Q1 Performance: The Company had a slow start in Q1 but expects to recover and meet its goals for the remainder of the fiscal year. • New Opportunities: Several promising opportunities in the pipeline are expected to close in Q2 and early Q3. These will ramp up to full rates by the end of FY25. • R
Slide 16: FY25 Growth Drivers
FY25 Growth Drivers 16
Slide 17: FY24–27 Strategic Pathway
FY24 – 27 Strategic Pathway FY24 FY25 FY26-27 Diversify Diversify Profitable Growth Team: Build out direct sales and BD Team: Develop sales and BD teams Team: Bolster operations team, Culture: Sales and marketing centric Culture: Sales and marketing centric mature sales execs Growth (40:
Slide 18: FY25–27 Strategic Plan - Growth Drivers
FY 25 – 27 Strategic Plan - Growth Drivers A + B + C = X! A) Maintain – A) Alexium must maintain its foundational PCM sales PCM sales to to existing customers in North America in its core Bedding market of bedding. B) Sales growth through further saturation of that core market, then adding customers
Slide 19: Product Portfolio – mPCM – Comfort Technology
Product Portfolio – mPCM – Comfort Technology Traditional microencapsulated phase Biobased microencapsulated phase change change material (petroleum based) material (plant derived) Effective on textiles and foam USDA Bio-Preferred Certified (mPCM) with Premium PCM cooling for mattress and
Slide 20: Historical Revenue Sources In-House Production
AlexiCool® and BioCool® have historically been the Historical Revenue primary revenue drivers. Product improvements Sources have expanded near-term market opportunities for both. The strategy shift in late FY24 led to technological advancements for in-house production of In-House petroleum-based mic
Slide 21: Product Portfolio - Flame Retardant Technologies
Product Portfolio - Flame Retardant Technologies Customised solutions Flame retardant emulsion for use Flame retardant emulsion for use on 100% polyester fabric on 100% synthetic and natural Designed for use in a variety Nontoxic aqueous based solution, fibers and fabrics of markets: FR su
Slide 22: Product Development Highlight: Introduction to AlexiShield
AlexiShield is the Company’s latest innovation in flame retardant (FR) coatings, featuring an advanced formulation Product free of currently banned substances, as well as substances with proposed bans targeting organophosphorus. The development was fast-tracked to address the bans Regulatory on orga
Slide 23: Product Portfolio – Thermal Regulation Materials
Product Portfolio – Thermal Regulation Materials Textile composite based on a Textile composite for adaptive patent pending, first-in-class thermal regulation technology Easily integrated into several Made from comfortable, multi- end-product applications stretch textiles Perpetual heat di
Slide 24: Product Development Highlight: Private Label Products
• Luxury Pillow Development: Initially conceived as a marketing tool to showcase Alexium’s DelCool and AlexiCool® technologies, the luxury pillow has evolved into a commercial product. • Supply Chain Leverage: Alexium can produce a high-quality product at a competitive cost by utilizing its supply c
Slide 25: Financial Results FY 2024
FINANCIAL RESULTS FY 2024 25
Slide 26: FY24 Financial Snapshot
FY24 Financial Snapshot Revenue – decrease of $1.3 million (18%) due to continued softening of the bedding market and a loss of market share by our largest customer Gross Margin – very strong at 44.8%; increased 5.7 percentage points due to reduced manufacturing costs and customer & product mix
Slide 27: FY24 Financial Snapshot (cont.)
FY24 Financial Snapshot (cont.) Capital Raise & Refinancing Transaction Results o Increased cash o Elimination of Debt o Positive Equity • Line of Credit (LOC) o Availability - the availability on the Alterna asset-based line of credit ($0.4m at YE) remains strong and will help fund our growth in
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