De.mem Ltd. · ASX:DEM
De.mem — Investor Presentation (July 2022)
27 slides from De.mem's investor presentation, Jul 28, 2022
Slide 1: De.mem Limited Capital Raising Presentation
De.mem Limited (ASX:DEM) Capital Raising Presentation 28 July 2022 Not for release to US wire services or distribution in the United States
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER 2 This presentation has been prepared by De.mem Limited and its related entities (the “Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents
Slide 3: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS 3 This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in a
Slide 4: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS 4 Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in
Slide 5: Overview & Investment Highlights
OVERVIEW & INVESTMENT HIGHLIGHTS 5 De.mem provides innovative products and solutions for decentralised water treatment including hollow fibre membrane water treatment systems & associated specialty chemicals Technology Driven Competitive Advantage & Customer Value Proposition Unique hollow fibre mem
Slide 6: June 2022 Quarterly Update
JUNE 2022 QUARTERLY UPDATE 6 DEM is pleased to report a strong result for the June 2022 Quarter Key Highlights • Best ever June quarter in Company history with approx. $5.6m in cash receipts and continuing growth momentum with 13 successive quarters of cash receipts growth “Strategic focus • High-ma
Slide 7: Large Addressable Market: Strong Regulatory Tailwinds
LARGE ADDRESSABLE MARKET: STRONG REGULATORY TAILWINDS 7 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 Drivers of Adoption Significant Addressable Significant Market Ad
Slide 8: De.mem's World Leading Hollow Fibre Membrane Technology
DE.MEM’S WORLD LEADING HOLLOW FIBRE MEMBRANE TECHNOLOGY 8 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. Clean water smaller than the pores pass thr
Slide 9: Comprehensive One Stop Shop Water Treatment Offering
COMPREHENSIVE “ONE STOP SHOP” WATER TREATMENT OFFERING 9 De.mem provides clients with a comprehensive water & waste water treatment offering. These divisions and services are highly complimentary and allow for cross selling opportunities Services Speciality Pumps, Services & Membrane Systems (BOO &
Slide 10: Technology & Business Model Address Clear Market Gaps
TECHNOLOGY & BUSINESS MODEL ADDRESS CLEAR MARKET GAPS 10 De.mem has a strong customer value proposition for clients driven by our technology and ability to deliver fully integrated solutions DEM’s Technology Advantage A portfolio of advanced membrane technology for high value applications / requirem
Slide 11: Unique Service and BOO Offering - Client Examples
UNIQUE SERVICE AND BOO OFFERING - CLIENT EXAMPLES 11 De.mem has never lost a material* BOO or O&M contract once installed. These services are inherently very sticky Contract with Mulpha / IHG Contract with Givaudan Contract with Australian corporate Hospitality sector Food & Beverage Agricultural se
Slide 12: High Value Add Specialty Chemicals Portfolio
HIGH VALUE ADD SPECIALTY CHEMICALS PORTFOLIO 12 De.mem has a high margin, specialty water treatment chemicals division. These products are used in conjunction with membranes, opening up substantial cross-sell opportunities • All water treatment plants require some form of chemicals to ensure the sys
Slide 13: Next-Gen Graphene-Oxide Enhanced Membrane
“NEXT-GEN” GRAPHENE-OXIDE ENHANCED MEMBRANE 13 De.mem’s Graphene-Oxide enhanced membrane allows for substantially increased throughput compared to a standard UF membrane. This is a game changing advancement • Standard polymer Ultrafiltration membrane enhanced by the addition of Graphene Oxide nanopa
Slide 14: Blue Chip Customer Base - Focus on the Industrial Segment
BLUE CHIP CUSTOMER BASE - FOCUS ON THE INDUSTRIAL SEGMENT 14 Our customers typically have multiple sites and operations that require wastewater treatment & services. We are focused on growing with our customers through a land and expand strategy Mining Infrastructure Food & Beverage Other Industrial
Slide 15: Growing with Our Multinational Clients – Case Study
GROWING WITH OUR MULTINATIONAL CLIENTS – CASE STUDY 15 De.mem’s growth model foresees expansion together with its multinational customer base “from site to site” – enabling an accelerating growth trajectory 2016 2019 2019 2020 2020 2nd BOO Project 3rd BOO Project 1st BOO Project 2nd BOO Project 3rd
Slide 16: Performance of Acquisitions – Bolt On Strategy
PERFORMANCE OF ACQUISITIONS – BOLT ON STRATEGY 16 Revenue RevenuePerformance ofDEM Performance of DEM Acquisitions Acquisitions • 4 acquisitions completed since 2019 • Strong acquisition track record of generating shareholder $4.8 value through cross sell $3.7 $3.3 $3.2 • All acquisitions have stabl
Slide 17: Financial Summary
FINANCIAL SUMMARY 17 Visible path to achieving quarterly EBITDA breakeven by H1 CY2023 with a focus on growing recurring revenue base and increasing margins TRACK RECORD OF REVENUE GROWTH $ million % on % on • Revenue of $10.1m in CY19 to $18.1m in CY21 (Dec year end) CY19 CY20 PCP CY21 PCP • 23% in
Slide 18: Positive ESG Impact for Future Generations
POSITIVE ESG IMPACT FOR FUTURE GENERATIONS 18 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 Water Treatment & Reuse Less Power, Land & Che
Slide 19: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM 19 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-Pacific business from a
Slide 20: Corporate Snapshot
CORPORATE SNAPSHOT 20 Market Data Market Data Share Price Performance ASX Code DEM.ASX 110% Ordinary Shares (25 July 2022) 223.0m 90% Market capitalisation (25 July 2022) $41.25m 70% 50% Options on Issue 7.11m 30% Cash plus term deposits (30 June 2022)1 $4.0m 10% -10% Last price (25 July 2022) $0.18
Slide 21: Capital Raising Details
CAPITAL RAISING DETAILS 21 • A$3.0 million non-underwritten Placement of fully paid ordinary shares to Professional and Sophisticated investors (the “Placement” or “Offer”) under the Company’s existing placement capacity under ASX Listing Rules 7.11 Placement — Offer price of A$0.14 per share via th
Slide 22: Use of Funds
USE OF FUNDS 22 Expected Uses of Funds (A$m) A$3m 25% acquisition of De.mem-Geutec GmbH • Key step for further expansion into the Acquisition of the remaining 25% in De.mem-Geutec European market 0.35 GmbH, taking the ownership to 100% • Following approx. 78% revenue growth of De.mem-Geutec from A$
Slide 23: Indicative Timetable
INDICATIVE TIMETABLE 23 Market Data Event 2022 Trading halt announced Pre-market Tuesday, 26 July Trading halt lifted, Placement Announcement and Appendix 3B Pre-market Thursday, 28 July Settlement of Placement proceeds and Appendix 2A Tuesday, 2 August Allotment of Placement shares Wednesday, 3 Aug
Slide 24: Upcoming Milestones and Catalysts
UPCOMING MILESTONES AND CATALYSTS 24 1 Targeting first quarterly EBITDA break even by H1 CY2023 • Visible path to EBITDA break even, with first quarterly break even expected in H1 CY2023, predominantly driven by: Revenue growth 2 BOO projects previously awarded to De.mem generating revenues from
Slide 25: Andreas Kroell, Chief Executive Officer
Andreas Kroell Chief Executive Officer De.mem Limited investor@demem.com.sg
Slide 26: Appendix 1: De.mem Tech: Broad Application Range
APPENDIX 1: DE.MEM TECH: BROAD APPLICATION RANGE 26 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 ST Microscope Scanning Electr
Slide 27: Appendix 2: Technology Value Proposition Summary
APPENDIX 2: TECHNOLOGY VALUE PROPOSITION SUMMARY 27 De.mem Ultrafiltration Nanofiltration Graphene-Oxide Enhanced Technology Key Features PES based hollow fibre PVDF based hollow fibre PES based hollow fibre Graphene-Oxide enhanced hollow Ultrafiltration membrane Ultrafiltration membrane Nanofiltrat