Phoslock Water Solutions Limited
Phoslock Water Solutions — Investor Presentation (November 2006)
21 slides from Phoslock Water Solutions's investor presentation, Nov 30, 2006
Slide 1: Shareholder Presentation
Shareholder Presentation 30th November, 2006
Slide 2: Investment Highlights
INVESTMENT HIGHLIGHTS • PWS has been producing and selling Phoslock products to the global market since mid 2005. • J/V factory in Kunming, China is now operating at a steady production rate; focus on reducing costs. • Over 70 applications (medium and large scale) have taken place in 18 countries; r
Slide 3: Capital Structure
CAPITAL STRUCTURE ASX Code: PHK Current Price: 28.5 cents * Trading range: (last 12 months) 13 - 31 cents Total Issued Shares: 143 million ** Total Issued Options: 30.4 million *** Market Capitalisation: A$41 million * Closing Price on 28th November, 2006 ** Includes 12.6m shares in Nov 2006 Share P
Slide 4: Major Shareholders
MAJOR SHAREHOLDERS Major Shareholders of Ordinary Shares * Link Traders Pty Ltd Investor 11.7% Newvest Pty Ltd Investor 4.9% CSIRO Govt Scientific Organisation 2.8% Paul Cayzer Investor 2.6% Current Directors and Executives – Ordinary Shares 4.3% – Ordinary Shares & Options 17.4% Top 50 Shareholders
Slide 5: Directors
DIRECTORS Directors Located Experience Robert Schuitema Sydney Former Investment Banker – JP Morgan Executive Chairman Brett Crowley Sydney Former Tax Partner - Ernest & Young Managing Director MD of PWS since 2002 Dr David Garman Sydney President of International Water Association Non Executive Dir
Slide 6: Senior Management
SENIOR MANAGEMENT Management Located Experience Colin Upcroft Brisbane 20 years Accountancy, CFO & Company Secretary Company Secretarial Hugh Stump Sydney 20 years Sales Sales Manager – Australia Nigel Traill Brusells, Belgium 15 years Sales Sales Manager – Europe and Africa Phil Adcock North London
Slide 7: Phoslock – The Product
PHOSLOCK – THE PRODUCT • Phoslock is a modified clay product which removes phosphorus from water bodies and breaks the algal cycle • Environmentally friendly product • Reduces phosphorus concentrations below detectable limits • Caps sediment and prevents remobilization of phosphorus • Stable in vary
Slide 8: The Product (cont)
THE PRODUCT (cont) • Phoslock is manufactured in Kunming, China • For wholesale market, Phoslock is produced in a dry granular form • For retail market, Phoslock is produced in a dry powder form • Packaged in 1.25kg, 2.5kg & 5kg containers • Phoslock is applied either dry or in a slurry form Phosloc
Slide 9: Business Rationale
BUSINESS RATIONALE • Excessive phosphorus in water bodies is a global problem with few natural solutions • Phoslock is a natural product and environmentally friendly • Phoslock is the ideal product to use in natural and man-made water bodies, including lakes, reservoirs, rivers, dams, ornamental pon
Slide 10: Operations – Kunming, China
OPERATIONS – KUNMING, CHINA • Continuous production commenced in May, 2005 • PWS Chinese speaking executive located in Kunming, China • Plant has capacity to produce 6,000 – 8,000 tpa of Phoslock products • Management focus • Plant reliability • Lower production costs – raw materials – transportatio
Slide 11: Phoslock Manufacturing Plant
PHOSLOCK MANUFACTURING PLANT Phoslock Manufacturing Plant – Kunming, China Phoslock Water Solutions Ltd.
Slide 12: Operations – 2nd Plant
OPERATIONS – 2ND PLANT • When demand for Phoslock exceeds 4,000 – 6,000 tpa the PWS board is likely to commit to a second Phoslock manufacturing operation • Likely location is in China • Significant work is being undertaken on site selection, sourcing of raw materials and capital equipment • Economi
Slide 13: Sales & Marketing
SALES & MARKETING • Phoslock is now in it second year of commercial sales • Over 70 medium to large applications completed in 18 countries • PWS and licencees use applications to host a large number of interested parties to observe process • Results of applications have been very positive • PWS has
Slide 14: Sales Cycle for a New Product like Phoslock
Sales Cycle for a New Product like Phoslock 12 Broad based business 10 Re-orders Re-orders Large applications Larger applications Growing aquaculture 8 Many more trials Broaden customer base Sales $ Begin aquaculture 6 Many trials 4 Small applications 2 0 1 Aug 2Aug Nov 3 Aug 4 Aug 5 6 Aug 2005 2006
Slide 15: How is Phoslock Applied?
HOW IS PHOSLOCK APPLIED? For smaller applications For larger applications Phoslock Water Solutions Ltd.
Slide 16: Lakes
LAKES • Phoslock is applied to water bodies ranging in size from small council/municipal lakes to very large lakes to reduce phosphorus, stop the algal cycle and cap sediment to stop rerelease of P into water body • Phosphorus and algae problems for lakes is a relatively recent phenomenon • Phoslock
Slide 17: Drinking Water Reservoirs
DRINKING WATER RESERVOIRS • Major problem in drinking water reservoirs with algal problems along with taste and odour issues with the water • Phosphorus and algal problems have two major impacts for water companies - increase treatment costs significantly - in some instances, can’t use the water fro
Slide 18: Prawn Farms
PRAWN FARMS • Prawn growers need to regulate the amount of phosphorus and algae in there growing ponds • Effects of phosphorus and too much algae impacts size, number, weight and taste of prawns impacting the economic value of the crop to the grower • PWS is working with prawn growers in several cou
Slide 19: Golf Courses & Residential Estates
GOLF COURSES & RESIDENTIAL ESTATES • Lake and water features are a major part of many up market golf courses and residential estates • These water bodies receive run off from intensive fertilizing. If you add phosphorus from ducks and other bird life, this leads to major algal problems and in some c
Slide 20: Retail Product
RETAIL PRODUCT • Phoslock is sold via the internet and retail irrigation and garden stores (Australia – 72 stores) to retail customers • Sold in 1.25kg, 2.5kg, and 5kg plastic containers environmental friendly product ideal for garden & ornamental ponds • Long lasting and is harmless to fish and pla
Slide 21: Contacts
CONTACTS Robert Schuitema Executive Chairman 0412 305 422 rs61@bigpond.net.au Brett Crowley Managing Director 0411 713 555 bcrowley@phoslock.com.au Phoslock Water Solutions Limited 116 Rothschild Avenue Rosebery, Sydney, NSW 2018 Australia Correspondence Address PO Box 319 Rosebery, Sydney, NSW 1445
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