Alexium International Group Limited · ASX:AJX
Alexium International — Non-Deal Roadshow (November 2017)
27 slides from Alexium International's roadshow presentation, November 2017
Slide 1: Innovation. Growth. Leadership. Investor Roadshow Presentation
INNOVATION. GROWTH. LEADERSHIP. November 2017 Asia/Australia Investor Roadshow Presentation
Slide 2: November 2017 Investor Presentation Agenda
2 November 2017 Investor Presentation 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Financial Analysis 5 2018 Outlook 6 Management Bios and Company History
Slide 3: Company Overview
3 Company Overview 12 Month Share Price Key Statistics ASX Code AJX Current Share Price $0.38 52 Week High $0.76 52 Week Low $0.31 Shares on Issue ~304m Market Capitalisation ~$117m Cash (30 September 2017) $9.5m Investor Mix Company Milestones Management & Institutional Directors 15% • Revenue Grow
Slide 4: Who We Are
4 November 2017 Investor Presentation 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Financial Analysis 5 2018 Outlook 6 Management Bios and Company History
Slide 5: Who Are We?
5 Who Are We? • Alexium International is a speciality chemicals developer based in Greer, South Carolina, USA, with its headquarters in Perth, WA Environmentally Friendly FR Solutions • Focus on environmentally friendly, non-hazardous Flame Retardants (FR) and Phase Change Materials (PCM) that offer
Slide 6: Why Are We Different? The Alexium Strategy
6 Why Are We Different? The Alexium Strategy • Identify key markets in significant transition that are Expanding Novel Eco- underserved by current market players and/or Patent Friendly structure Portfolio Chemistry • Provide unparalleled integration support with end user customers to assist early ad
Slide 7: Fire Retardant Market
7 Fire Retardant Market Fire retardant chemistries are chemicals required to be added to virtually every consumer product sold to prevent initiation of a fire or inhibit the rate at which the event propagates. Market Drivers Key Statistics • Stringent fire safety regulations causing • Operating in a
Slide 8: Updated FR Regulations
Updated FR Regulations REACH Registration is the chemical regulatory system for the European Union. This system Toxic Flame Retardant Regulations established one of the most rigorous standards for currently include 21 toxic flame assessing chemical hazards and determining retardant policies and 34 a
Slide 9: Thermal Management Market
9 Thermal Management Market Thermal Management or Phase Change Material (PCM) chemistries can improve the efficiency of apparel and other textiles to absorb heat and moisture. The microscopic molecule attaches to a fibre and can retain heat and cool the textile it is applied to, and then re-charge i
Slide 10: What Do We Produce?
What Do We Produce? Z MATTRESS TICKING Alexicool + Alexiflam Formulating cooling and FR technologies together differentiated Alexium as an innovation leader in the mattress ticking segment, mw HOME TEXTILES Alexicool From pillows and mattress toppers to pet bedding and more, Alexicool is unmatched i
Slide 11: Business Model & Strategy
11 November 2017 Investor Presentation 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Financial Analysis 5 2018 Outlook 6 Management Bios and Company History
Slide 12: Toll Manufacturing/Supply Chain
12 Toll Manufacturing/Supply Chain Regionally Diverse and Scalable Global Manufacturing Model Holly Oak Chemical, Inc. • Partnerships with toll manufacturers allow almost infinite scalability that allows Alexium to grow with demand without having to invest in any manufacturing capabilities or shift
Slide 13: Global Sales Strategy
13 Global Sales Strategy Alexium has established strategic partnerships in order to rapidly scale its go-to-market capabilities • Partnerships were carefully selected according to geography and sector expertise • Sales agents representing various Alexium target markets started in 2016 Continued Orga
Slide 14: Financial Analysis
14 November 2017 Investor Presentation 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Financial Analysis 5 2018 Outlook 6 Management Bios and Company History
Slide 15: Financial Overview: Five Year Revenue Trend
15 Financial Overview Five Year Revenue Trend 25 $24.02M 20 MILLIONS 15 10 5 $3.41M $0.36M $0.24M $0.39M - 2013 2014 2015 2016 2017 • Total revenue grew 604% over the prior fiscal year to $24.02M • Gross margin on chemical sales grew from -12% to 1%. Sales in FY2017 averaging 23% and growing towards
Slide 16: Financial Overview: 2016 vs 2017
16 Financial Overview 2016 vs 2017 1.24% 25 5.0% • Revenue from chemistry sales up 693% from 20 0.0% $3M to $24M MILLIONS 15 -5.0% 10 • Gross margin on chemical sales grew by 13.3 (12.08%) -10.0% 5 percentage points to 1%. GPM in FY2017 $23.8M - $3.0M -15.0% averaging 23% and growing 2016 2017 Sales
Slide 17: Financial Overview: Margin Growth and Cash Neutrality
17 Financial Overview Margin Growth • Virtually all revenues are recurring 7 25% though size and frequency vary between 6 customers. 5 15% MILLIONS 4 5% • Gross margins increased by 37 3 percentage points from Q3 2017 to Q1 2 -5% 2018 and are expected to grow further. 1 - -15% Q3 2017 Q4 2017 Q1 201
Slide 18: Cash Flow Statement
18 Cash Flow Statement CASH NEUTRALITY Quarter Ended 30-Sep-17 30-Jun-17 $A'000 $A'000 The recent September quarter being Alexium’s first quarter of positive Cash flows from operating activities • cash flows builds off corporate goal of cash neutrality achieved in June Receipts from customers 5,764
Slide 19: 2018 Outlook
19 November 2017 Investor Presentation 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Financial Analysis 5 2018 Outlook 6 Management Bios and Company History
Slide 20: 2018 Outlook: Military and Alexiflam NF
20 2018 Outlook MILITARY Over the last quarter, the focus of the effort has largely been tweaking the breathability of the fabric to ensure a successful result in a future field evaluation but minimizing the heat flux through the fabric during a fire event: • Alexium’s Partner, a current supplier of
Slide 21: 2018 Outlook: Home Textiles and Tenting
21 2018 Outlook CONTINUED GROWTH IN HOME TEXTILES Expansion in bedding will continue to drive revenues upward: • Planned expansion into the pillow market with Pegasus Home Fashions, a major supplier into “Big Box” retailers (i.e. Walmart or Bed, Bath, and Beyond) • Five new customers have come onlin
Slide 22: 2018 Outlook: New Key Markets
22 2018 Outlook PENETRATION INTO NEW KEY MARKETS Over the next six months, Alexium expects key projects in two new sectors protective coatings and resins and disposable healthcare nonwovens to convert into active sales: • Nonwovens are the predominant textiles used in markets that consume high volum
Slide 23: 2018 Outlook: Market Analysis
23 2018 Outlook SHIFT IN FOCUS THROUGH MARKET ANALYSIS Alexium has begun work Wilson Growth Partners, a strategy group engaged to deepen our understanding of the flame retardancy and thermal regulation markets: • Identify further addressable gaps both inside and outside of textiles • Guide future R&
Slide 24: Management Bios and Company History
24 November 2017 Investor Presentation 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Financial Analysis 5 2018 Outlook 6 Management Bios and Company History
Slide 25: Board of Directors
25 Board of Directors Gavin Rezos – Non Executive Chairman • Extensive international investment banking experience • Held CEO and Board positions in successful technology companies in Australia, the UK, US & Singapore • Former Non Executive Director of Iluka Resources, Department 13, Metalysis plc a
Slide 26: Executive Management
26 Executive Management Dirk Van Hyning - Chief Executive Officer Dr. Van Hyning received his BS in Chemical Engineering from North Carolina State University before receiving his MS and Ph.D. in Chemical Engineering from The University of Illinois at Urban-Champaign. Dr. Van Hyning has extensive exp
Slide 27: Contact
Contact: InvestorRelations@AlexiumInternational.com U.S.: +1.864.254.9923 November 2017 Asia/Australia Investor Roadshow Presentation
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