13 slides from Phoslock Environmental Technologies's investor presentation, Aug 26, 2020
Slide 1: Phoslock Environmental Technologies Half year results
Phoslock Environmental Technologies Half year results 6 months to 30 June 2020 – CEO/MD, Lachlan McKinnon Building a stronger and more diversified business
Slide 2: Key Business Developments in First Half
Key Business Developments in First Half Flooding in parts of China results in project delays COVID-19 negatively impacts project timing and working capital All deferred projects expected to resume in due course. No project cancellations Positive progress on business diversification strategy Successf
Slide 3: Financials – Matthew Parker, CFO
Financials – Matthew Parker, CFO Key Financial Results 6 months to 30 June 2020 6 months to 30 June 2019 Revenues $1.2 million $9.8 million Gross Profit $0.61 million $6.3 million 1 EBIT ($5.1 million) $1.7 million NPAT 2 Numbers will change($5.1 million) $1.0 million Net Operating Cash Flow ($8.4 m
Slide 4: Working Capital – Matthew Parker, CFO
Working Capital – Matthew Parker, CFO Period-end working capital/cash flow has been impacted by a number of ‘one-off’ events ISSUES Lower revenues driven by temporary flooding and COVID impacts Later than normal / deferred payments due to project delays and COVID related pressures; and a single proj
Slide 5: China Flooding
China Flooding Severe flooding in Yunnan Province delays multiple projects Damage to catchment infrastructure and lakes High levels of nutrient and pollutant inflows Phosphorous levels must stabilise to facilitate resumption of remediation works Some delayed projects expected to resume in
Slide 6: COVID-19 Impacts
COVID-19 Impacts China International Projects delayed; travel difficult; government spending Several new projects delayed (including in Europe, USA, Brazil) temporarily reprioritised Later than expected payments on some ongoing projects Minimal disruption to manufacturing – safety stocks pro
Slide 7: Ongoing China Operations
Ongoing China Operations Multiple ongoing projects in China continue on schedule Xing Yun Lake, Huixian Lake, YuTan Reservoir, …….and others New restoration plan for South Lake (Wuhan, Hubei Province) due to commence in second half FY20 New contract finalised for Phase 1 of restoration project in He
Slide 8: Xinfeng River, Beijing
Xinfeng River, Beijing Xinfeng River project has been completed and the results well published in the press in China.
Slide 9: International Business Update
International Business Update Multiple trials underway in USA, representing strong growth in regional activity • Washington State, New Jersey, Michigan, Utah and Florida Further treatments completed and scheduled for second half FY20 in Brazil Pampulha (Belo Horizonte), Rio de Janeiro, North E
Slide 10: Investing in Future Growth
Investing in Future Growth Lease signed on new manufacturing plant in China • Facilitates significant increase in production capacity and lower cost of goods • Construction/commissioning will be staged to reflect growth in volume demand Additional resources are being secured to support internati
Slide 11: Building a stronger and more diversified business
Building a stronger and more diversified business • China will continue to be a major market for PET products and services • Large number of waterways impacted by phosphorous loading • Environmental remediation a key strategic priority of Chinese Government and local authorities • PET has strong and
Slide 12: Outlook continues to look positive
Outlook continues to look positive Disappointing half year result is a factor of timing issues and other largely one-off impacts All deferred/delayed projects are expected to resume and be completed in due course; either in second half FY20 or in FY21 Inherent uncertainty on timing – forecasts
Slide 13: ASX Code – PET
ASX Code – PET PET is included in the ASX 300 Index Level 16 1 Collins St Lachlan McKinnon – CEO Melbourne , 3000 email: lmckinnon@phoslock.com.au Vic , AUSTRALIA Michael Kotowicz – Investor Relations Tel: +61 3 91100002 email: ir@phoslock.com.au Web: www.phoslock.com.au