Carbonxt Group Ltd. · ASX:CG1
Carbonxt — Investor Presentation (July 2020)
18 slides from Carbonxt's investor presentation, Jul 6, 2020
Slide 1: Capital Raising Presentation
Capital Raising Presentation June 2020
Slide 2: Investment highlights
Investment highlights US developer, producer, and manufacturer of proprietary powdered and pelletised Activated Carbons for use in industrial pollution and emission 1 control 2 Grew revenue from $3.8m in FY17 to $18.3m in FY19 – customers are typically large and sticky (3-5 year contract duration) E
Slide 3: Company snapshot
Company snapshot Carbonxt produces patented, non-brominated, Activated Carbons used to eliminate mercury and other toxic pollutants from industrial flue gas and wastewater streams. COMPANY SUMMARY BOARD OF DIRECTORS Share Price ($)1 $0.185 Name Position Shares (m) Shares on Issue (m) 107.69 Matthew
Slide 4: Our two key products
Our two key products • Carbonxt develops, manufactures, and markets specialised Activated Carbon (“AC”) products POWDERED ACTIVATED CARBON • Powdered Activated Carbon (“PAC”) products are used by coal-fired • Unique capability in market to develop products tailored to a power plants to achieve emiss
Slide 5: Our Powdered Activated Carbon business – key features
Our Powdered Activated Carbon business – key features • Foundation of our business • Developed revolutionary proprietary Powdered Activated Carbon (PAC) for capture of mercury • Mercury capturing PAC that doesn’t contain bromine • Doesn’t corrode capital equipment • Long sales lead time and competit
Slide 6: Our Activated Carbon Pellet business – key features
Our Activated Carbon Pellet business – key features • Developed proprietary Activated Carbon Pellet (ACP) technology • Carbonxt is the only North American manufacturer of Pellet (ACP) VOC products, in a fast growing and largely underpenetrated market TARGET Filtration FILTRATION LANDFILLS ABATEMENT
Slide 7: New Pellet product – phosphate solution
New Pellet product – phosphate solution CARBONXT’S NEW PELLET PRODUCT • Carbonxt will soon commercialise a new Pellet (ACP) product aimed at removing According to the EPA… phosphate from liquid streams • Leveraged existing patent-pending Pellet formulation to develop a range of novel Pellet solution
Slide 8: Pellet manufacturing – eliminating third-party dependents
Pellet manufacturing – eliminating third-party dependents • Development of Kiln-Activated Pellets (“KAP”) has been accelerated since onset of COVID-19 • Testing underway with initial promising results Phase 1 Phase 2 Phase 3 • KAP would meet CTC requirements and be suitable for use in high humidity
Slide 9: Financial performance to FY20
Financial performance to FY20 • Delivered strong revenue growth FY17 – FY19 ($3.8m to $18.3m), with increasing margins • Anticipated FY20 growth did not eventuate • Revised FY20 guidance: • Revenue: $16m • Gross profit: $5.2m • EBITDA: ($1.2m) CG1 to provide new • Revenue growth delayed due to: imag
Slide 10: Forecasting strong revenue growth and margin expansion in FY21
Forecasting strong revenue growth and margin expansion in FY21 • FY21 guidance: • 40%+ revenue growth • 35%+ gross profit margin • FY21 growth expected to be driven by: • Power plant activity returning to pre COVID-19 lockdown levels • New Pellet business lines: • Pelletising for other major AC play
Slide 11: Capital Raising
CAPITAL RAISING
Slide 12: Capital raising overview
Capital raising overview Structure Carbonxt is undertaking a placement to raise approximately $2.0 million comprising the issue of up to 12.5 million new fully paid ordinary shares in the Company (“New Shares”) (the “Placement”) • The Placement will fall within the Company’s available placement capa
Slide 13: Board & senior management
Board & senior management MANAGING DIRECTOR INDEPENDENT CHAIRMAN EXECUTIVE DIRECTOR Warren Murphy Matthew Driscoll Dr. David Mazyck Warren was Co-Head of the Australian Infrastructure Matthew has significant experience across several David is a world-leading expert on activated & Project Finance Gro
Slide 14: Risks
Risks Regulatory Risk Carbonxt is heavily reliant on US environmental policies and regulation, in particular the EPA’s MATS regulations that came into force in April 2016 to tightly regulate the emission of mercury released through the burning of coal, and the Effluent Limitation Guidelines (ELGS) w
Slide 15: Risks (cont.)
Risks (cont.) Brand Establishing and maintaining its brand in the industry is critical to growing the Company’s customer base and product acceptance. Prior to entering into supply agreements, the Establishment and Company is required to undertake vigorous testing of its Activated Carbon solutions. W
Slide 16: Disclaimer
Disclaimer This presentation has been prepared by Carbonxt Group Limited ACN 097 247 464 (“Carbonxt”) in relation to its completed institutional placement (“Placement”) of new shares in Carbonxt (“New Shares”) to raise approximately $2.0 million. Summary information This Presentation prepared by Car
Slide 17: Disclaimer (cont.)
Disclaimer (cont.) Past Performance Past performance information contained in the presentation is given for illustration purposes only and should not be relied upon as (and is not) an indication of future performance. Actual results could differ materially from those referred to in the presentation.
Slide 18: Contact
CONTACT Warren Murphy Managing Director +61 (0) 413 841 216 w.murphy@carbonxt.com