Calix Ltd. · ASX:CXL
Calix — Shareholder Meeting (November 2023)
58 slides from Calix's shareholder meeting presentation, Nov 16, 2023
Slide 1: Calix Limited Annual General Meeting
For personal use only Calix Limited Annual General Meeting 16 November 2023 1
Slide 2: Introduction to the Lumi platform
For personal use only Introduction to the Lumi platform Darren Charles Calix Limited Annual General Meeting 16 November 2023 2
Slide 3: Online Text Questions
Online Text Questions For personal use only Select the messaging tab Type your question in the ‘Ask a question’ box Press the arrow symbol to submit your message Select ‘My Messages’ to view your submitted messages along with any written responses 3
Slide 4: Online Audio Questions
Online Audio Questions For personal use only Click ‘Request to Speak’ Enter the topic of your question Click ‘Submit Request’ Click ‘Join Queue’ and follow the audio prompts 4
Slide 5: Online Voting
Online Voting For personal use only Select the voting tab Select your voting preference for each resolution Your selected option will change colour You can change your vote until the poll is closed 5
Slide 6: Welcome & introduction to the AGM
For personal use only Welcome & introduction to the AGM Peter Turnbull, AM Calix Limited Annual General Meeting 16 November 2023 6
Slide 7: Board of Directors
Board of Directors For personal use only Peter Helen Fisher Alison Deans Phil Dr Mark Turnbull, AM Non-Executive Non-Executive Hodgson Sceats Non-Executive Director Director Managing Executive Chair Director & Chief Director And Executive Officer Chief Scientist Experienced Chair and Non- CEO and Ma
Slide 8: It is now cheaper to save the world than destroy it
For personal use only “It is now cheaper to save the world than destroy it.” MARS IS FOR QUITTERS Akshat Rathi. Climate Capitalism: Winning the Global Race to Zero Emissions. 8
Slide 9: Policies driving decarbonisation
Policies driving decarbonisation Carbon penalties, value & support in Europe, US, & now Australia… EUROPE US AUSTRALIA For personal use only Emissions Trading Scheme Inflation Reduction Act Safeguard Mechanism • EU ETS price averaging €90 in 2023 • US$85 / tonne of CO2 • A price on carbon, capped at
Slide 10: Global commercialisation strategy
Global commercialisation strategy Target applications focus on the potential to: For personal use only • Address a significant global challenge consistent with our purpose; • Create value in large addressable markets • Exploit our technology to sustainable competitive advantage. • Capital light lice
Slide 11: Global commercialisation strategy: strategy in action
Global commercialisation strategy Strategy in action For personal use only • Sept 2021: Carbon Direct Capital Management invests in Leilac: – €15m for a 6.98% stake – Leilac spun-off as a standalone entity – Calix receives 30% of Leilac’s royalty income regardless of Calix’s shareholding in Leilac •
Slide 12: FY23 financial update
FY23 financial update Balance sheet strength to pursue commercialisation opportunities Calix Limited FY23 For personal use only financial result highlights • Increased revenues and margins – 42% increase in revenue $74.5m – 19% increase in GP of Water business Cash on hand (30 June 2022: A$25.0m) •
Slide 13: FY23 Highlights
For personal use only FY23 HIGHLIGHTS 13 13
Slide 14: Decarbonising cement and lime
Decarbonising cement and lime Market drivers For personal use only Leilac-2 • Lighter, simplified replicable module designed through Value Carbon pricing: 73 carbon pricing Engineering phase initiatives implemented, covering 11.7 Cement~8% GtCO2e, or 23% of global emissions2 • Procurement underway •
Slide 15: Decarbonising iron and steel
Decarbonising iron and steel Realising the green iron opportunity Iron and Steel Market drivers For personal use only • Value creation: – iron ore → iron: 3-4x value add ~7% of global emissions ~7% ~80-85% of emissions from – Green Iron… iron ore reduction1 • Enabling efficient decarbonisation solut
Slide 16: Sustainable lithium joint venture with Pilbara Minerals
Sustainable lithium joint venture with Pilbara Minerals Electrification and mid-stream mineral processing For personal use only Sustainable lithium tailwinds Joint Venture 6x growth in lithium carbonate & • 45% Calix / 55% Pilbara Minerals (ASX: PLS) JV 6x equivalents market by 20302 • $20m in Austr
Slide 17: Magnesia
Magnesia Bioactive materials for water treatment, agriculture and marine coatings For personal use only Market trends Demand for non-conventional pesticides • US water business gross profit up 28.6% predicted to grow at 15% per annum for • Two new hydration plants: the next ten years1 – Lufkin, Texa
Slide 18: Advanced Batteries
Advanced Batteries Developing sustainable, low-cost cathode materials Market trends For personal use only Growth in the battery market expected • Commercial-prototype Lithium Manganese Oxide 5x by 20301 battery cells produced • Capability expanded to new battery chemistries $400b Expected global bat
Slide 19: Sustainability
Sustainability For personal use only FY23 sustainability achievements: • Reaffirmed our commitment to the UNGC • Greenhouse gas assessment baseline completed • Multi-purpose quiet spaces established Our sustainability commitments: • Science-based emission reduction in line with the 1.5 °C pathway. •
Slide 20: People and culture
People and culture For personal use only • Dynamic and global workforce – 120+ employees at end of FY23 – Passionate and purpose-driven team • Active in: – 7 countries – 5 continents – 9 operational sites • Ongoing initiatives to enhance our ways of working as we grow around the world 20 20
Slide 21: Governance structure and practices
Governance structure and practices For personal use only • New Sustainability Board Committee established • Updated charters and policies Board renewal: • In FY23: – Alison Deans appointed as Non-executive Director – Dr Jack Hamilton retired from the board • In FY24: – Dr Sarah Ryan will join the Ca
Slide 22: Thank you
For personal use only Thank you Calix Limited Annual General Meeting 16 November 2023 22
Slide 23: Formal items of business
For personal use only Formal items of business Calix Limited Annual General Meeting 16 November 2023 23
Slide 24: Items of Business – Financial Report
Items of Business – Item 1 Financial Report Consideration of Financial Report: For personal use only “To consider and discuss the Financial Report, including the Directors’ Report and the Auditor’s Report, for the year ended 30 June 2023.” There is no vote on this item. 24
Slide 25: Resolution: Remuneration Report
Items of Business – Resolution 1 Remuneration Report To consider and, if thought fit, to pass the following Resolution as an ordinary resolution: For personal use only “That the Remuneration Report of the Company for the financial year ended 30 June 2023, which forms part of the Directors’ Report, b
Slide 26: Resolution: Re-election of Helen Fisher
Items of Business – Resolution 2 Re-election of Helen Fisher To consider and, if thought fit, to pass the following Resolution as an ordinary resolution: For personal use only “That Helen Fisher, who retires under the Constitution and being eligible, stands for re-election, be re-elected as a Direct
Slide 27: Resolution: Election of Alison Deans
Items of Business – Resolution 3 Election of Alison Deans To consider and, if thought fit, to pass the following Resolution as an ordinary resolution: For personal use only “That Alison Deans, who retires after having been appointed by the Directors as a director to fill a casual vacancy under claus
Slide 28: Resolution: Appointment of auditor
Items of Business – Resolution 4 Appointment of auditor To consider and, if thought fit, to pass the following Resolution as an ordinary resolution: For personal use only “That, in accordance with section 327B of the Corporations Act, and for all other purposes, KPMG, having been nominated by a Shar
Slide 29: Online Voting
Online Voting For personal use only Select the voting tab Select your voting preference for each resolution Your selected option will change colour You can change your vote until the poll is closed 29
Slide 30: Presentation by MD & CEO
For personal use only Presentation by MD & CEO Phil Hodgson Calix Limited Annual General Meeting 16 November 2023 30
Slide 31: Important Disclaimer
Important Disclaimer This presentation has been prepared by Calix Limited (ABN 36 117 372 540) (“Company”). INVESTMENT RISK An investment in Calix securities is subject to investment and other known and unknown risks, some of which are beyond the control SUMMARY INFORMATION of Calix, including possi
Slide 32: About Calix
About Calix Calix is an environmental technology For personal use only company that is developing a unique platform technology to solve global challenges in industrial decarbonisation and sustainability. We are building multiple businesses to deliver positive global impact in CO2 mitigation, sustain
Slide 33: Calix's core platform technology
Calix’s core platform technology A new way to “heat stuff up” For personal use only Pre-ground CO2 captured minerals when processing carbonate materials CO2 CAPTURE Unavoidable process CO2 emissions from cement and lime production are separated for use or storage. Calciner tube Externally heated usi
Slide 34: FY23 achievements
FY23 achievements ZESTY awarded ARENA funding Leilac & CEMEX announce Calix partner in methanol project For personal use only First licence agreement 3 new projects for sustainable fuels from CO2 $947k ARENA grant to signed for cement help fund BOD and FEED With funding from the HyGATE Studies for f
Slide 35: FY24 – Off to a great start
FY24 – Off to a great start… • Strong financial position: – Balance sheet strength and flexible capital strategy to For personal use only pursue commercialisation opportunities – Revenue and margin growth supporting investment in people • Focused on delivering key decarbonisation projects: – Cement
Slide 36: One decarbonisation technology – multiple applications
One decarbonisation technology – multiple applications… Industries we are working with… For personal use only Cement & lime Direct air capture Lithium Alumina Iron & steel Zero emissions lime Low-carbon, low-waste, Electrifying ZESTY as a sorbent for value-add ‘mid-stream’ Aluminium Oxide (Flash dir
Slide 37: FY24 update
For personal use only FY24 update 37
Slide 38: Scaling up the Leilac technology
– Scaling up the Leilac technology A modular design for delivery through a blueprint model For personal use only Leilac-1 Leilac-2 Leilac-3 Pilot plant Demonstration plant Full scale Lixhe, Belgium 2019 Hannover, Germany The future CO2 capacity: 25 ktpa CO2 capacity: 100 ktpa CO2 capacity: 500+ ktpa
Slide 39: A robust pipeline of projects
– a robust pipeline of projects Project Detailed Pre-FEED / FID + Initial scoping FEED Operational Total discussions scoping / MOU BOD construction For personal use only Aug 2021 21 7 4 1 1 34 Aug 2022 25 13 9 5 1 1 54 Nov 2023 34 25 8 4 2 1 1 76 Leilac-2 Leilac-1 • Pipeline growth: as at August 202
Slide 40: Leilac's full-scale vision
Leilac’s full- scale vision For personal use only FOR CEMENT… we need to mitigate 1.4 billion tonnes per annum of process CO2 emissions = up to 3,000 Leilac-3s ~2 built every week from now until 2050!! FOR DAC… potentially a similar scale opportunity ! 40
Slide 41: Direct Air Capture: global licence agreement with Heirloom
Direct Air Capture Global licence agreement signed with Heirloom • Leilac and Heirloom have signed a global and perpetual licence For personal use only agreement that applies to all future Heirloom facilities. • Heirloom is a Direct Air Capture (DAC) company with an objective of capturing 1 billion
Slide 42: Decarbonising shipping & aviation
– new markets Decarbonising shipping & aviation For personal use only Market tailwinds: • International Maritime Organisation targeting net zero by 2050 and 10% clean energy use by 2030.1 • Maersk now has 25 methanol enabled vessels on order.2 • Industry, particularly cement, requires offtake for un
Slide 43: FY24 update: Sustainable Processing
FY24 update For personal use only Sustainable Sustainable Processing Processing 43
Slide 44: Sustainable lithium demonstration plant
Sustainable lithium demonstration plant Financial Investment Decision approved • Calix and Pilbara Minerals (ASX: PLS) have approved the FID on a For personal use only mid-stream lithium-phosphate demonstration plant • The Demonstration Plant will use Calix’s electric calciner and be located at Pilb
Slide 45: Zero Emissions Steel TechnologY
Zero Emissions Steel TechnologY Potential lowest cost zero emissions iron & steel For personal use only About ZESTY • Hydrogen reduction of iron ore • Can be easily and efficiently Dewatering and H2 recycle renewably powered • Targeting theoretical minimum hydrogen use – simple gas recycle • Process
Slide 46: ZESTY development to date
Zero Emissions Steel TechnologY ZESTY development to date Pore Fe D50 SSA Volume (Wt %) (μm) (m²/g) Phase 1 & 2: completed (cm³/g) For personal use only A) Siderite 43 87 25 0.035 ✓ Theoretical kinetic studies Goethite / ✓ Conversion of electric calciner to run hydrogen B) Hematite 57 130 15 0.034 ✓
Slide 47: FY24 update: Magnesia
FY24 update For personal use only Magnesia 47
Slide 48: Magnesia
Magnesia Our new focused line-of-business Water: For personal use only • Revenue growth accelerating – up 28% H2FY23 compared with the same period last year. Agriculture: • Continued field trials in the EU in collaboration an agricultural co-operative, following the banning of the fungicide Mancozeb
Slide 49: FY24 KPI dashboard
FY24 KPI dashboard KPI Dashboard for FY24 For personal use only ⬤ Successfully completed ⬤ On track ⬤ Watch point Sustainable Advanced CO2 Capture Magnesia Processing Batteries ● Leilac-2 all permitting and Spodumene ● First battery module in Water GATEWAY 1 civil works complete ● Spodumene Project
Slide 50: Valuing the opportunity
Valuing the opportunity Selected benchmarks – November 2023 Green iron & steel – similar Technology Readiness Level For personal use only • H2 Green Steel – Multi-billion dollar valuation following US$1.5b impact investment in Sept. 2023 • Boston Metals – Impact investment of US$262m in green steel
Slide 51: Thank you
Calix Limited Annual General Meeting 16 November 2023 For personal use only Thank you Acknowledgement Social inclusion Sustainability of country statement statement Calix acknowledges the First Nations people Calix embraces diversity and inclusion. At Calix, sustainability means meeting and traditio
Slide 52: Thank you
For personal use only Thank you Calix Limited Annual General Meeting 16 November 2023 52
Slide 53: For personal use only
For personal use only Phil Hodgson Darren Charles Managing Director & CEO CFO & Company Secretary phodgson@calix.global dcharles@calix.global +61 2 8199 7400 +61 2 8199 7400 Investor relations Media enquiries Investorrelations@calix.global media@calix.global Follow us on Twitter @Calixlimited www.ca
Slide 54: Glossary
Glossary Term Meaning Aluminium (Al) Chemical element with the symbol Al For personal use only Anode The negative electrode of a battery Antimicrobial Antimicrobial products kill or slow the spread of microorganisms, including bacteria, viruses and fungi. AMR Antimicrobial resistance – the developme
Slide 55: Glossary
Glossary Term Meaning EAP Employee Assistance Program For personal use only EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation Electrode The material that stores the lithium ions in a charged (anode) or discharged (cathode) state in a lithium-ion battery Electrolyte The medium that
Slide 56: Glossary
Glossary Term Meaning LHM Lithium Hydroxide Monohydrate – used in the production of cathode active materials for lithium-ion batteries For personal use only Lithium (Li) Chemical element with the symbol Li Lithium-phosphate / Lithium Salt / “Mid- A form of lithium that is high in lithium content, to
Slide 57: Glossary
Glossary Term Meaning Potassium (K) Chemical element with the symbol K Process emissions are inherent to the chemical reaction and are released directly and unavoidably from the chemical processing of raw For personal use only Process emissions material. They are distinct from energy related emissio
Slide 58: For personal use only
For personal use only Phil Hodgson Darren Charles Managing Director & CEO CFO & Company Secretary phodgson@calix.global dcharles@calix.global +61 2 8199 7400 +61 2 8199 7400 Investor relations Media enquiries Investorrelations@calix.global media@calix.global Follow us on Twitter @Calixlimited www.ca