Phoslock Environmental Technologies Limited · ASX:PET
Phoslock Environmental Technologies — Morgan Stanley Alpha ex-100 Conference (October 2019)
20 slides from Phoslock Environmental Technologies's conference presentation, Oct 24, 2019
Slide 1: Morgan Stanley - Alpha ex-100 Conference
Morgan Stanley - Alpha ex-100 Conference 24 October 2019
Slide 2: Disclaimer and Important Information
Disclaimer and Important Information This presentation does not constitute investment advice. Neither this presentation not the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in Phoslock Environmental Technol
Slide 3: The Problem
The Problem Water Quality is a major GLOBAL PROBLEM Causes – excess Phosphorus entering canals, rivers, lakes Where does the Phosphorus come from : • Run-off water from agriculture (fertilisers used to enhance production) • Run-off water from livestock farms and processing • Run off water from urban
Slide 4: The Solution - PHOSLOCK®
The Solution - PHOSLOCK® Beijing Canal – March 2018 Same Beijing Canal – Sept 2018 4
Slide 5: PHOSLOCK® - The Product
PHOSLOCK® - The Product Environmental Friendly product that locks up Phosphorus safely and permanently • Invented by CSIRO (Australian Govt Science Organisation) in 1990’s; • Modified Bentonite Lanthanum product; • Environmental Friendly; safe for human and fish & aquatic plants; • Internationally C
Slide 6: Financial Summary – PET now has 31 December Year End
Financial Summary – PET now has 31 December Year End • 2019 First Half Revenue $10.2m • 2019 First Half NPBT $1.7m Net Cash flow from Operations (January-September 2019): $7.3m • 2019 Forecast Revenue $27m-$30m Jul-Dec 2019 Sales made up of approx 5,000 tons of Phoslock Sales and $4m Engineering Wor
Slide 7: Sales versus Cash Receipts – strong Debtor payments
Sales versus Cash Receipts – strong Debtor payments
Slide 8: Chinese Operations
Chinese Operations All Chinese Subsidiaries are 100% owned by PET Payments from Chinese Subsidiaries to PET Australia Agreements in place for Chinese Subsidiaries to pay PET Australia in cash for: - Group Service provided to Chinese Subsidiaries; - Technology Services provided to Chinese Subsidiarie
Slide 9: PET Operating Performance
PET Operating Performance Millions PET Operating Performance 35 30 Sales 20 bh 9 g 10 (5) 2015 2016 2017 2018 2019 (Forecast) -=Sales -= Gross Profit -—#Net Profit before Tax & Option Expense
Slide 10: FY 2020 Outlook
FY 2020 Outlook Forecast Phoslock Sales in the range of 10,000-15,000 tons on known projects Significant Engineering project work Forecast Phoslock Production of 25,000-30,000 tons Over 10,000 tons of Phoslock available for sale in FY2020 to meet new projects and pipeline projects bought forward. Mo
Slide 11: Total Addressable Market – THE WORLD
Total Addressable Market – THE WORLD Large Government Funded Projects
Slide 12: Shareholder Information
Shareholder Information Capital Structure (23rd October, 2019) Company Name: Phoslock Environmental Technologies Limited ASX Code: PET Trading Range: (last 12 months) $0.32 - $1.60 Total Issued Shares: 562.7m Shares Total Unlisted Employee Options: 12.45m Options Total Number of Shareholders: 6,200
Slide 13: Changxing Factory and R&D Centre
Changxing Factory and R&D Centre Multi purpose factory – 150km west of Shanghai manufacturing Phoslock ® Current factory Production Capacity increased to 20,000tpa - Record production of 58.5 tons per day; routinely 50-58 tons per day Second production line capacity at Changxing of 20,000tpa – in pr
Slide 14: China – enormous market with large Government Funding
China – enormous market with large Government Funding Team of 60 PET employees working in China • Beijing – China HQ; sales; engineering team; project management • Changxing (150km inland from Shanghai) – factory; R&D; sales • Kunming – sales; project management • Wuhan – sales; project management S
Slide 15: US Wetland/ Everglades
US Wetland/ Everglades Huge Potential; Phoslock to absorb Phosphorus before entering Wetlands/ Everglades 400 tons (16,000 25kg bags) being applied in December-February 2020 United States – nearly 3,000 tons since 2012 – large expanding market
Slide 16: Brazil – 2,500 tons since 2015
Brazil – 2,500 tons since 2015 HidroScience – licensee since 2012 Sales 2015 to 2019 – nearly 2,500 tons over 4 projects; Major project - Pampulha Forecasting nearly 1,000 tons ($3.0m) for FY2020 over 6 projects; Major project - Pampulha DRINKING WATER RESERVOIR, BRAZIL PAMPULHA, BRAZIL
Slide 17: Drinking Water Projects
Drinking Water Projects Large Drinking Water Projects funded by various International Agencies Middle East Central America South America
Slide 18: New Product (ZEEP) - Reusable Recyclable Filter Medium
New Product (ZEEP) - Reusable Recyclable Filter Medium PET ACQUIRED EXCLUSIVE GLOBAL RIGHTS TO REUSABLE WATER REMEDIATION PRODUCT – announced 19 August 2019 Key points: PET secured the exclusive global license for a phosphorus removal product in moving water; Six years development by leading United
Slide 19: ZEEP – Reusable and Recyclable
ZEEP – Reusable and Recyclable ZEEP manufacture Supplied as ZEEP regeneration. P extracted replaceable filter as liquid fertilizer cartridge/”teabag” ZEEP installed in rivers/canals P saturated ZEEP is removed Saturated ZEEP sold as soil for recovery. conditioning fertilizer New ZEEP installed.
Slide 20: ASX Code – PET
ASX Code – PET PET is included in the ASX 300 Index Suite 403 25 Lime Street Sydney NSW 2000 Australia Robert Schuitema – Managing Director e: rs@phoslock.com.au Michael Kotowicz – Investor Relations e: ir@phoslock.com.au Tel: +61 2 8014 7611 Web: www.phoslock.com.au 20
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