Calix Ltd. · ASX:CXL
Calix — Investor Day (September 2021)
60 slides from Calix's investor day presentation, Sep 2, 2021
Slide 1: Calix Investor Day Presentation
ASX Announcement 2 September 2021 For personal use only Calix Investor Day Presentation Sydney, Australia 2 September 2021 – Multi-award-winning Australian technology company Calix Limited (ASX:CXL, Calix or the Company), is pleased to provide a copy of the presentation materials for its Investor Da
Slide 2: About Calix
About Calix For personal use only Calix is a team of dedicated people developing a unique, patented technology to provide industrial solutions that address global sustainability challenges. The core technology is being used to develop more environmentally friendly solutions for sustainable processin
Slide 3: Calix Limited Investor Presentation
Calix Limited Investor Presentation For personal use only September 2021 Solving global challenges 1
Slide 4: Important Disclaimer
Important Disclaimer This presentation has been prepared by Calix Limited (ABN 36 117 372 540) (“Company”). INVESTMENT RISK For personal use only An investment in Calix securities is subject to investment and other known and unknown risks, some of which are beyond the control of Calix, SUMMARY INFOR
Slide 5: Mars is for Quitters
For personal use only We believe our responsibility MARS IS FOR starts at home. That’s why we’re driven to use QUITTERS our unique technology to repair, preserve and prevent future harm to it. Because there’s only one Earth, and it’s already ours. 3
Slide 6: ESG interest is growing
“Environment / Social / Governance” (ESG) Interest is growing For personal use only GLOBAL ECONOMIES, COMPANIES AND INVESTMENT FUNDS ARE ALL HEADING IN ONE DIRECTION 50% of global GDP* Companies committed ESG Exchange Traded Funds USD 3 trillion per and carbon emissions currently to net-zero emissio
Slide 7: The ESG investment theme is only just beginning
The ESG investment theme is only just beginning For personal use only “It’s not often an investing “The amount of money “TPG has amassed private “Climate change is the next “Investors should no longer view theme comes along that is moving into ESG equity's largest war chest major mega-trend, and we
Slide 8: Calix is developing multiple environmental business opportunities
Calix Limited is developing multiple environmental business opportunities For personal use only CO2 Advanced Water Biotech Sustainable Processing Mitigation Batteries Water Treatment Cement Crop Protection Advanced Mineral and Cathode & Anode chemical Aquaculture Lime Marine Coatings materials proce
Slide 9: Calix's Core Technology
Calix’s Core Technology A PATENTED PLATFORM TECHNOLOGY WITH 3 KEY FEATURES For personal use only CO2 capture When processing A New Type of Kiln... limestone, gas exhaust is high purity CO2 The “Calix Flash Calciner” or CFC 1 25 patent families covering core technology and applications >A$100m has be
Slide 10: Summary of achievements – FY21
Summary of achievements – FY21 For personal use only CO2 Advanced Water Biotech Sustainable Processing Mitigation Batteries Strong growth of 36% in Low Emissions Lime and Crop protection product Highly prospective early Calix electric calciner core product sales Cement project passes pre- continues
Slide 11: Introduction – Calix, Sustainability and Positive Impact
Introduction – Calix, Sustainability and Positive Impact OUR GENERAL MANAGER – MARKETING AND COMMUNICATIONS For personal use only Audrey Barucchi General Manager - Marketing and Communications • Audrey is responsible for planning, development of Calix’s marketing and communications strategies and pl
Slide 12: Sustainability and Positive Impact
Sustainability Positive Impact LIVING UP TO OUR PROMISES GIVING BACK Solving Global Challenges has been At Calix, we take our Corporate Social For personal use only the basis of Calix’s passion and Responsibility (CSR) seriously, and we business for more than a decade, with believe we can help creat
Slide 13: Recap – FY21 Financials
For personal use only Recap – FY21 Financials 11
Slide 14: Summary of Results FY21 – Continued Revenue Growth
Summary of Results FY21 – Continued Revenue Growth SALES REVENUES AND PROJECT AND GRANT REVENUES CONTINUE GROWTH TRAJECTORY For personal use only Revenue & Other Income Key Take-aways 35 Strong growth in total sales & revenue 22% Project grant income continues with 30 GROWTH to R&D projects funded f
Slide 15: Summary of Results FY21 - Profit & Loss Highlights
Summary of Results FY21 - Profit & Loss Highlights ACCELERATING SALES, MAINTAINING +VE OPERATING PROFIT AND RE-INVESTING FOR GROWTH For personal use only FY21 FY20 Comment ($m’s) ($m’s) Sales revenue 19.2 14.1 Up 36% Total revenue 29.9 24.5 Up 22% Gross Profit & Other income 15.7 13.7 Up 15% Sales &
Slide 16: Summary of Results FY21 – Balance Sheet highlights
Summary of Results FY21 – Balance Sheet highlights GROWING OUR ASSET BASE, VERY LOW DEBT, BUILDING BALANCE SHEET STRENGTH For personal use only 30 June 21 30 June 20 Comment ($m’s) ($m’s) Capital raise in March, strongly supported by new Total Assets 51.6 42.8 and existing investors, heavily oversub
Slide 17: Summary of Results FY21 – Cash Flow Statement highlights
Summary of Results FY21 – Cash Flow Statement highlights CONTINUED UNDERLYING PRUDENT MANAGEMENT OF CASH For personal use only FY21 FY20 ($m’s) ($m’s) Comment Operating cashflow during FY21 impacted by Operating Cashflows (8.1) 10.2 timing of grant funding profile (FY20 v FY21). Further $8m due in n
Slide 18: Deep Dive – Water Business
For personal use only Deep Dive – Water Business 16
Slide 19: Introductions – Water Business Senior Management
Introductions OUR WATER BUSINESS SENIOR MANAGEMENT…AND SPECIAL GUEST ! For personal use only Bill Karis Doug Kelley General Manager Water – General Manager Water – US ANZ, SEA, EU President of IER • 9-year career with Shell - sales and marketing of • Dr. Kelley is a Ph.D. Chemist with 29 years of fu
Slide 20: Why Water? Challenge and Solution
Challenge Solution TIGHTENING LEGISLATION MAGNESIUM HYDROXIDE Why Wastewater is normally discharged to Water ? Unlike alternative chemicals such as iron For personal use only the environment, requiring treatment chlorides and caustic soda, MHL is non- and proper management to protect hazardous and a
Slide 21: Our US business
Our US business CAUSTIC REPLACEMENT AND NEW OPPORTUNITY IN MUNICIPAL For personal use only Business basics: • ~24,000 tons MHL production across 4 manufacturing facilities • Each facility capable of up to 10,000 MHL tons pa • Takes largely locally sourced magnesium oxide and “hydrates” to magnesium
Slide 22: Our US business – Strategy
Our US business CAUSTIC REPLACEMENT AND NEW OPPORTUNITY IN MUNICIPAL For personal use only Strategy: • Having established more stable product with new technology, seed new markets, then follow-up with local hydration plants (10,000 Tpa capacity) to lower costs • Aggressive growth planned – US$1.5m i
Slide 23: Water Business - Rest of World
Water Business - Rest of World MARKET LEADING MONITORING DOSING SOLUTION IN WASTEWATER AND UNIQUE PRODUCT IN AQUACULTURE For personal use only Business basics: Strategy: • AUS – Solutions for Water Authorities / Councils to • AUS/NZ – SHARE OF WALLET: Focus on organic growth in key accounts - optimi
Slide 24: Deep Dive – CO2 Business
For personal use only Deep Dive – CO2 Business 22
Slide 25: Introductions – CO2 Business Senior Management
Introductions OUR CO2 BUSINESS SENIOR MANAGEMENT… For personal use only Daniel Rennie Adam Vincent General Manager Cement General Manager Lime Decarbonisation Decarbonisation • Dan worked originally in the electricity industry, • Adam joined Calix in July 2010 after 15 years followed by the Global C
Slide 26: The CO2 Problem
The CO2 Problem LIMESTONE IS THE SECOND MOST UTILISED SUBSTANCE ON EARTH For personal use only Cement and lime contribute between 5% and 8% of global Around 2/3 of those emissions are unavoidable – coming anthropogenic CO2 emissions - about 2.2 BT per annum* from the raw material (limestone) ~1/3 of
Slide 27: Growing legislative pressures and incentives continue
Growing legislative pressures and incentives continue OUR INITIAL TARGET MARKETS, THE EU AND US, HAVE MADE SIGNIFICANT MOVES IN THE LAST TWO MONTHS For personal use only European Union – Legislative Progress United States – Legislative Progress • 2018 – EU ratifies phase 4 of the Emissions Trading S
Slide 28: Global market opportunities – cement and lime decarbonisation
Global market opportunities – cement and lime decarbonisation LEILAC HAS SUBSTANTIAL OPPORTUNITY IN ALL PRIMARY TARGET REGIONS, AND WORKING WITH SOME OF THE LARGEST CEMENT, LIME, CHEMICAL AND UTILITIES COMPANIES For personal use only Key markets for lime and cement production: Number of plants | mil
Slide 29: Our opportunity pipeline for cement and lime
Our opportunity pipeline for cement and lime INTEREST IS COMING NOT JUST FROM EUROPE AND THE AMERICAS, BUT ALSO FROM THE MIDDLE EAST AND ASIA… For personal use only First contact Initial scoping Detailed scoping Pre FEED FEED Final procurement Construction Operations Workshop(s) etc to identify Work
Slide 30: Case Study – cement - US
Case Study – cement - US THE US HAS A CO2 INFRASTRUCTURE IN PLACE, DEVELOPED IN THE 1970S TO ENABLE “EOR” For personal use only US CO2 pipeline and cement plant locations More than 4000 miles of CO2 pipelines are in place and, as of 2014, approximately 68 million tonnes of CO2 LafargeHolcim (16) are
Slide 31: Case studies – lime – Australia and the UK
Case studies – lime – Australia and the UK LIME IS MOVING QUICKLY, BOTH IN AUSTRALIA AND THE UK For personal use only June 2021: Calix key partner in successful $39m Federally-funded Heavy Industry / Both a cement and lime opportunity (lime used Low Emissions Co-Operative Research Centre (HILT-CRC)
Slide 32: CO2 capture and storage case study
CO2 capture and storage case study TARMAC AND THE HYNET CLUSTER – UK – TARGETING STORING CO2 PLUS H2 PRODUCTION BY 2025 For personal use only https://hynet.co.uk/about/ 30
Slide 33: Deep Dive – Sustainable Processing Business
For personal use only Deep Dive – Sustainable Processing Business 31
Slide 34: Introductions – Sustainable Processing Senior Management
Introductions OUR SUSTAINABLE PROCESSING BUSINESS SENIOR MANAGEMENT…AND SPECIAL GUEST ! For personal use only Andrew Okely Michael Wheatland Ken Brinsden General Manager Sustainable Manager – Sustainable Processing Managing Director & CEO Processing Pilbara Minerals Limited • Andrew joined Calix in
Slide 35: Sustainable Processing – Calix Technology Everywhere
Sustainable Processing CALIX TECHNOLOGY … EVERYWHERE! For personal use only SaltX Refractory Spodumene LC3 Alumina Electrification Mineral looping CO2 reduction into Revolutionary Next Generation Electrifying Converting energy storage existing magnesia at-mine low CO2 Clay Cement Aluminium Oxide the
Slide 36: Revolutionary chemical energy storage solutions
Revolutionary chemical energy storage solutions SUSTAINABLE PROCESSING : ENERGY STORAGE – COLLABORATING ON LONG TERM ENERGY STORAGE POTENTIAL OF CALCIUM SALTS. For personal use only Example application: First steps Helsinki city district heat system provided > 7200 GWh of heat to homes and businesse
Slide 37: Towards net-zero in the Refractory Industry
Towards net-zero in the Refractory Industry SUSTAINABLE PROCESSING: MAGNESIA REFRACTORIES – ANOTHER INDUSTRY STRIVING FOR NET ZERO For personal use only RHI Magnesita 2021 Half Year Results release 28 July 2021. “Sustainability is fundamental to RHI Magnesita’s long term strategy. The €50 million R&
Slide 38: Why lower carbon foot-print lithium?
Why lower carbon foot-print lithium ? GLOBAL CAR MANUFACTURERS TARGETING NET ZERO CO2 INPUTS For personal use only New EU regulatory framework for Batteries* PLUG-IN ELECTRIC VEHICLE SALES IN EUROPE requirement to comply with maximum lifecycle carbon footprint thresholds (as of 1 July 2027) by 1 Jan
Slide 39: Reduced CO2 footprint Lithium salt production
Reduced CO2 footprint Lithium salt production For personal use only Calix Technology Up to 8x 37
Slide 40: An electric / renewably-powered Australian lithium process
An electric / renewably - powered Australian lithium process DEVELOPING ON-SHORE, LOW CARBON PROCESSING OF SPODUMENE ORE TO PRODUCE A LITHIUM SALT For personal use only Potential benefits of the Calix Technology to the spodumene industry Lithium Concentrate (LCC) Demonstration plant • Higher value p
Slide 41: Deep Dive – Biotech
For personal use only Deep Dive – Biotech 39
Slide 42: Introductions – Biotech Senior Management
Introductions OUR BIOTECH BUSINESS SENIOR MANAGEMENT… For personal use only Rob van Merkestein Mark Sceats Business Manager – Chief Bioactive Materials Scientist • Rob has a technical and commercial background, • Mark co-founded Calix in 2005, is an Executive Director and a member of initially worki
Slide 43: Why Biotech?
Why Biotech ? SOME UNFORTUNATE WORDS WE’VE ALL RECENTLY LEARNED; PANDEMIC, VARIANT, RESISTANCE For personal use only When conventional pesticides, biocides & anti-biotics no longer meet our needs: Drivers • pests and pathogens evolve and develop resistance • society decides their unintended impacts
Slide 44: Agriculture: bio-active material for crop protection
Agriculture: bio-active material for crop protection CASE STUDY: CALIX MATERIALS TO BECOME INTEGRAL TO AGRONOMIC MANAGEMENT IN THE NETHERLANDS... For personal use only Proof-Of-Concept. Value Proposition. Commercialisation – target milestones. • 5th consecutive year of field trials • reduced toxic p
Slide 45: Marine Coatings: additives for enhanced bio-fouling control
Marine Coatings: additives for enhanced bio-fouling control LONG TERM FOULING TRIALS CONTINUE TO SHOW HIGHLY PROSPECTIVE RESULTS WITH DIFFERENT COATINGS For personal use only Proof- Value Proposition; Value Proposition – manufacturer Market Of-Concept. end-user. Engagement. • reduced inputs costs •
Slide 46: Pharma & Veterinary Medicine: bio-active materials
Pharma & Veterinary Medicine; bio-active materials for human & animal health TESTING INDICATES PROMISING EFFICACY ON SOME VERY WORRYING BACTERIA... For personal use only Proof-Of-Concept. Value Proposition. Development pathway. • prelim. studies; bacterial suppression • Pathogen suppression • phase
Slide 47: Deep Dive – Advanced Batteries
For personal use only Deep Dive – Advanced Batteries 45
Slide 48: Introductions – Advanced Battery Business
Introductions OUR ADVANCED BATTERY BUSINESS SENIOR MANAGEMENT…AND SPECIAL GUESTS! For personal use only Dr Matt Boot-Handford Dr Mark Sceats Prof. Patrick Howlett Mr Oliver Gross Battery Materials Development Chief Scientist Partner on CRC-P Advanced Hybrid Batteries Battery Industry Consultant to C
Slide 49: Why Advanced Batteries?
Why Advanced Batteries ? ENERGY STORAGE IS UNDERGOING A REVOLUTION FROM MOLECULES TO ELECTRONS… AND CALIX TECHNOLOGY COULD BE A GAME–CHANGER IN THIS SPACE ALSO…. For personal use only Approx. 6x lower energy route than conventional LMO While there are varying predictions as to the growth of Li-Ion b
Slide 50: It's all about crystal structure
It’s all about crystal structure … made using Calix Technology RECAP: EARLY HALF-CELL RESULTS For personal use only Recap– “cracking the onion” Calix is developing a high-performance, low-cost lithium manganese oxide (LMO) cathode technology for lithium-ion battery applications 500 LMO (Lab – “hiera
Slide 51: Full coin cells – significant performance longevity demonstrated
Full coin cells – significant performance longevity demonstrated ADVANCED BATTERIES: LONG TERM STABILITY AT HIGH RATE DEMONSTRATED TO OVER 5000 CYCLES For personal use only Before cycling After cycling LMO | LTO full cells continue to show very stable performance after > 5500 cycles with fast (15 mi
Slide 52: Commercial format – pouch cell prototypes
Commercial format – pouch cell prototypes ADVANCED BATTERIES: PROTOTYPING AND SCALE-UP OF COMMERCIAL FORMAT CELLS FEATURING CALIX LMO IS UNDERWAY For personal use only • Calix has engaged AMTE Power and its partners QinetiQ and MEP technologies to undertake prototyping and scale-up of commercial for
Slide 53: Enhancing our capability
Enhancing our capability… BUILDING THE TEAM, R&D AND PRODUCTION CAPABILITY For personal use only Calix’s coin-cell assembly and testing suite is now operational Upgrade of laboratories at Calix’s Bacchus Marsh Production Facility underway In-housing of additional battery materials development skills
Slide 54: Progress since our March 2021 capital raise
Progress since our March 2021 capital raise ADVANCED BATTERIES: ACCELERATION PLANS – ON TRACK For personal use only Key Challenge Description 2021 2022 2023 2024 LMO Full Cell 1. Commercially-relevant loadings of Cathode Active Material1 Performance 2. Long term 500-1000+ charge-discharge cycling pe
Slide 55: The skunkworks
For personal use only “The skunkworks” 53
Slide 56: Introductions – Chief Scientist and Deputy Chief Scientist
Introductions OUR CHIEF SCIENTIST AND FOUNDER…AND DEPUTY CHIEF SCIENTIST For personal use only Mark Sceats Matt Boot-Handford Chief General Manager R&D & Deputy Scientist Chief Scientist • Mark co-founded Calix in 2005, is an Executive Director and a member of • Before joining Calix, Matt was Acting
Slide 57: A glimpse into the future from our Chief Scientist
A glimpse into the future from our Chief Scientist CALIX CO-FOUNDER, CHIEF SCIENTIST AND EXECUTIVE DIRECTOR MARK SCEATS GM R&D AND DEPUTY CHIEF SCIENTIST MATT BOOT-HANDFORD For personal use only CO2 Mitigation Decarbonised Shipping Water Sustainable Fresh Water Treatment Processing PFAS, Fluorides E
Slide 58: Outlook for FY22
For personal use only Outlook for FY22 56
Slide 59: Our next months' priorities
Our next 12 months’ priorities… REVENUES, MARGINS, PROJECT EXECUTION AND DEAL FLOW…AND ACCELERATION TARGET ITEMS FROM RECENT CAP RAISE For personal use only CO2 Advanced Water Biotech Sustainable Processing Mitigation Batteries Revenue and Gross Margin Cement and Lime Crop Protection Refractories gr
Slide 60: Because there's only one Earth
Because there’s only one Earth… For personal use only …Mars is for quitters Phil Hodgson Darren Charles Simon Hinsley Managing Director & CEO CFO & Company Secretary Investor Relations phodgson@calix.global dcharles@calix.global simon@nwrcommunications.com.au +61 2 8199 7400 +61 2 8199 7400 +61 401