De.mem Ltd. · ASX:DEM
De.mem — Investor Presentation (February 2024)
24 slides from De.mem's investor presentation, Feb 9, 2024
Slide 1: ASX Release: Investor Presentation
De.mem Limited (ASX:DEM) ACN 614 756 642 Registered Office Level 4, 96-100 Albert Road South Melbourne, Victoria 3205 (e) investor@demem.com.sg ASX RELEASE | De.mem Limited (ASX:DEM) For personal use only Investor Presentation 9 February 2024: Australian headquartered, international water technology
Slide 2: Industrial Water & Waste Water Treatment Solutions Investor Presentation
personal use only De.mem Limited (ASX:DEM) Industrial Water & Waste Water Treatment Solutions Investor Presentation February 2024
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT 2 Over the last 12 months, De.mem has mostly tracked the ASX Small Industrials index ASX code DEM personal use only Ordinary shares 245,306,369 NA Singapore Early-Stage Venture Fund 19.0% MAJOR SHAREHOLDERS Market capitalisation $24.5m Perennial Value Microcap Opportunities Fund ~
Slide 4: Overview & Investment Highlights
OVERVIEW & INVESTMENT HIGHLIGHTS 3 Unique water & ESG investment proposition based on its membrane tech, industrial client focus and recurring revenue model – approaching financial break even personal use only Technology Driven Competitive Advantage & Customer Value Proposition • Portfolio of hollow
Slide 5: CY 2023 - Record Results
CY 2023 - RECORD RESULTS 4 Record cash receipts / revenues, record margins, EBITDA near break-even personal use only Record annual cash receipts CY23 A$24.8m, up 8% vs CY22 Record growth momentum, with 19 quarters of cash receipts growth vs pcp Highest ever quarterly cash receipts in the December qu
Slide 6: CY 2023 – Key Milestones
CY 2023 – KEY MILESTONES 5 Record cash receipts / revenues, record margins, EBITDA near break-even Delivered on contracts, grew acquired businesses, progressed entry into domestic water filtration market personal use only Contract Milestones • Commissioned key BOO contracts (i.e. Givaudan/Singapore
Slide 7: CY 2024 Outlook
CY 2024 OUTLOOK 6 Record cash receipts / revenues, record margins, EBITDA near break-even Continued growth momentum, acquisitions & new tech as a basis for sustainable positive cashflow High cash receipts visibility personal use only • CY2023 ~91% recurring cash receipts • CY2023 deferred contract p
Slide 8: Strong Acquisition Value-Add Track Record
STRONG ACQUISITION VALUE-ADD TRACK RECORD 7 Revenue Performance of DEM Acquisitions • De.mem completed 4 bolt-on acquisitions since 2019 $6.0 • all have provided significant growth post acquisition personal use only $3.6 $3.3 $3.3 $3.1 • cross-selling and adding innovative $2.5 $2.3 products into ex
Slide 9: Case Study: Waste Water Treatment for F&B Client
CASE STUDY: WASTE WATER TREATMENT FOR F&B CLIENT 8 De.mem provided a waste water treatment plant deploying its Ultrafiltration technology under a BOO agreement to a leading multinational from the F&B industry in Singapore personal use only • De.mem provided an integrated waste water treatment plant
Slide 10: Case Study: Water Treatment Management for Snow Resort
CASE STUDY: WATER TREATMENT MANAGEMENT FOR SNOW RESORT 9 De.mem provided a Membrane Bioreactor (MBR) plant under a BOO agreement to a snow resort in Australia for their waste water treatment and recycling • De.mem provided a Membrane Bioreactor (MBR) plant to an personal use only Australian snow res
Slide 11: Strong Growth Momentum
STRONG GROWTH MOMENTUM 10 De.mem has delivered 19 consecutive quarters of overall cash receipts growth vs. prior corresponding period personal use only $8.0 $7.0 $6.0 Cash receipts (A$M) $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2019 2019 202
Slide 12: Recurring Revenue Segments Drive Growth
RECURRING REVENUE SEGMENTS DRIVE GROWTH 11 De.mem has successfully achieved its stated strategy of growing recurring revenues – resulting in a stable, high-margin business model personal use only Recurring cash receipts 91% total CY23 cash receipts, up from 38% in CY18 Recurring revenue growth DEM R
Slide 13: Comprehensive "One Stop Shop" Water Treatment Solutions
COMPREHENSIVE “ONE STOP SHOP” WATER TREATMENT SOLUTIONS 12 Comprehensive water & waste water treatment offering allows substantial cross-selling and supports recurring revenue growth to >90% total revenue personal use only Services Specialty Pumps, Services & Membrane Systems (BOO & O&M) Chemicals E
Slide 14: Specialty Chemicals Segment Growth (Update)
SPECIALTY CHEMICALS SEGMENT GROWTH (UPDATE) 13 De.mem’s specialty chemicals segment via its Perth-based subsidiary Capic provides for stable and high-margin revenues. It is a key segment within the Company’s expansion personal use only strategy Segment revenue growth De.mem-Capic / specialty chemica
Slide 15: Blue Chip Customer Base - Focus on the Industrial Segment
BLUE CHIP CUSTOMER BASE - FOCUS ON THE INDUSTRIAL SEGMENT 14 Global, blue-chip customers with multiple sites provide significant cross-sell opportunities De.mem’s sales strategy is based on a “land and expand” strategy with multi-site customers personal use only Mining Infrastructure Food & Beverage
Slide 16: De.mem "Next-Gen" Graphene Oxide Enhanced Membrane
DE.MEM “NEXT-GEN” GRAPHENE OXIDE ENHANCED MEMBRANE 15 De.mem’s Graphene-Oxide enhanced Ultrafiltration membrane allows for substantially increased throughput compared to a standard membrane. This is a game changing advancement • 2019: Started R&D in-house personal use only • Sep 2021: Presented new
Slide 17: Large Addressable Market: Strong Regulatory Tailwinds
LARGE ADDRESSABLE MARKET: STRONG REGULATORY TAILWINDS 16 ESG pressures are growing & driving the adoption of wastewater solutions and services. De.mem is well positioned to capitalise on these as a provider of water treatment solutions personal use only Drivers of Adoption Significant Addressable Si
Slide 18: De.mem's World Leading Hollow Fibre Membrane Technology
DE.MEM’S WORLD LEADING HOLLOW FIBRE MEMBRANE TECHNOLOGY 17 Principle of Hollow Fibre Membrane Filtration • De.mem’s membranes are a microporous structure, whereby the pore size within the membrane Only molecules determines which contaminants can be removed. personal use only Clean water smaller than
Slide 19: De.mem Tech: Broad Application Range
DE.MEM TECH: BROAD APPLICATION RANGE 18 De.mem’s hollow fibre membrane technology comes with a variety of pore sizes which can remove tiny contaminants including dyes, pesticides/herbicides, microplastics, solids, viruses, bacteria etc. in a simple process personal use only ST Microscope Scanning
Slide 20: Positive ESG Impact for Future Generations
POSITIVE ESG IMPACT FOR FUTURE GENERATIONS 19 De.mem is driven by our impact on society. Our technology is pioneering a revolution in how we can better utilise our environments’ limited resources in order to sustainably meet/exceed regulated ESG targets personal use only Water Treatment & Reuse Less
Slide 21: Key Service Contracts - Overview
KEY SERVICE CONTRACTS - OVERVIEW 20 De.mem has never lost a material* BOO or O&M contract once installed. These services are inherently very sticky personal use only New BOO Contact with Other Key BOO & O&M Contracts for Potable Water and Givaudan, Singapore Waste Water Treatment Plants – DEM Refere
Slide 22: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM personal use only 21 30-year experience in the feed and food Director and Partner with New Asia ingredients / flavours & fragrances Investments for the past decade industry Previously MD of Wieland Asia/Pacific, Former COO at Wild Flavors, and was a growing the Asia-Pacif
Slide 23: Experienced Leadership Team (Cont.)
EXPERIENCED LEADERSHIP TEAM (CONT.) personal use only 22 CEO and Managing Director of Veolia for the Australia & New Zealand region from A Geologist and Economist with over 20 2018-20, responsible for more than 4,000 years of senior management experience employees and 240 locations across the in bot
Slide 24: Andreas Kroell, Chief Executive Officer
personal use only Andreas Kroell Chief Executive Officer De.mem Limited investor@demem.com.sg Follow us on Linked In