Alexium International Group Limited · ASX:AJX

Alexium International — FY2022 Earnings Presentation

19 slides from Alexium International's earnings presentation, Aug 26, 2022

1. Slide 1: FY2022 Full Year Results

   ALEXIUM INTERNATIONAL GROUP LIMITED FY2022 Full Year Results 26 August 2022 ABN 91 064 820 408 PRESENTED IN US DOLLARS

2. 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

3. Slide 3: Company Overview

   COMPANY OVERVIEW

4. Slide 4: Company Overview

   Alexium Company Overview  Alexium is an advanced materials provider for thermal management and flame retardant applications  Performance-driven products developed with environmentally-friendly materials and backed by granted/pending patents that secure the Company’s position in key markets  Produ

5. Slide 5: Alexium Management Team (effective September 1, 2022)

   Alexium Management Team (effective September 1, 2022) Billy Blackburn– Chief Executive Officer/Managing Director • Accomplished customer-focused executive with a 20+ year track record of successful strategic and tactical leadership within the environmental services and specialty chemical markets. Cr

6. Slide 6: ESG Commitment

   ESG Commitment • Alexium is built on a foundation of providing SETTING THE BAR FOR SUSTAINABILITY innovative, sustainable, and non-toxic solutions to our commercial partners and consumers. BiocoolTM | Alexium’s proprietary biobased cooling products for textile & foam applications • Being a leader in

7. Slide 7: FY2022 Overview

   FY2022 OVERVIEW

8. Slide 8: Summary of Key Achievements & Path Forward

   Summary of Key Achievements & Path Forward FY18-22 FY23 FY24-25 Develop Company’s Product Drive Deliver Meaningful Portfolio & Marketing Commercial Growth Shareholder Returns Strategies  Continued revenue growth through  Capitalise on globally unique and  Developed broad portfolio of thermal furt

9. Slide 9: Financial Snapshot

   Financial Snapshot Very strong H1 overshadowed by poor H2 as consumer confidence softened in the US  Overall revenue growth of 12.3%  Gross margin at 40.1% is consistent with the 2H FY21 and from same period last year  Operating expenses up 1.5% or $65K versus prior year in a tight labor market 

10. Slide 10: Financial Spotlights

    Financial Spotlights Profit and loss items  12.3% revenue growth; very strong H1 overshadowed by a poor H2 as consumer confidence softened in the US  Operating expenses in line with prior year in a tight labor market Impairment  Lack of near-term revenue driving accounting treatment; these intang

11. Slide 11: Key Milestones Met in FY2022

    Key Milestones Met in FY2022 Complete commercialisation of Eclipsys™ technology in body armor market Major customer has fully commercialized mattresses based on TMCS Complete Broader market penetration commercialisation of BioCool™ products in bedding marketof Eclipsys™ technology in body armor mark

12. Slide 12: Key Market Overview: Bedding

    Key Market Overview: Bedding  Current US bedding market is at a 15 year low of sales driven by a downturn in consumer confidence  Alexium is managing this downturn with a focus on ensuring strong customer retention and increasing market share in bedding accessories which has shown stronger perform

13. Slide 13: Emerging Market Opportunity: Body Armor

    Emerging Market Opportunity: Body Armor  Received first Eclipsys Body Armor order in the United States  Developed a meaningful sales pipeline with global customers  Currently being considered by a national defence force and a national police force  Opportunity to retrofit existing Body Armor in

14. Slide 14: Financial Results

    FINANCIAL RESULTS

15. Slide 15: Cash Flow Statement

    Cash Flow Statement • Operating Activities outflows increased $0.2m with changes in:  $1.9m – cash receipts  ($2.1m) - product purchases & manufacturing  ($0.0m) – all other costs • Investment Activities outflows decreased $0.5m with changes in:  $0.1m – Capex  $0.4m – Internal development cost

16. Slide 16: Profit & Loss Statement

    Profit & Loss Statement • Revenue growth in H1 offset by low US consumer confidence in H2 which resulted in lower sales • Gross Profit up $0.7m due to increased revenue complemented by better gross margin • Operating expenses contained to an increase of $0.1m in a tight labor market • Depreciation a

17. Slide 17: Balance Sheet

    Balance Sheet • Working Capital • Overall working capital increased by $0.7m. Trade receivables were lower due to lower revenue in H2, offset by an inventory build for growth. • Non-Current Assets • Decrease of $1.6m with increased amortization of fixed assets along with an impairment of Alexiflam™

18. Slide 18: Appendix

    APPENDIX

19. Slide 19: Non-GAAP Financial Measure Reconciliation

    Non-GAAP Financial Measure Reconciliation Reconciliation of Operating EBITDA (non-GAAP financial measure) to statutory Net Profit/(Loss) The consolidated financial statements of the Group are general purpose financial statements which have been prepared in accordance with the Australian Accounting S

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