1 Se September 20 2017 17
2 September 2017 Investor Presentation 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
3 Company Overview 12 Month Share Price Key Statistics ASX Code AJX Current Share Price $0.50 52 Week High $0.76 52 Week Low $0.38 Shares on Issue ~306m Market Capitalisation ~$151m Cash (30 June 2017) $3.4m Balance Sheet Revenue Growth $14 Millions 30-Jun-17 30-Jun-16 $12 Total Current Assets 7,029,848 13,157,856 $10 Total Non-Current Assets 2,620,749 1,002,286 $8 Total Assets 9,650,597 14,160,142 $6 Total Current Liabilities 7,980,643 2,874,063 $4 Total Non-Current Liabilities 1,450,480 18,549 $2 Total Liabilities 9,431,123 2,892,612 Total Equity 219,474 11,267,530 $- Jun. 2014 Dec. 2014 Jun. 2015 Dec. 2015 Jun. 2016 Dec. 2016 Jun. 2017
4 September 2017 Investor Presentation 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
5 Who are We? ➢ Alexium International is a speciality chemicals developer Environmentally-Friendly FR Solutions based in Greer, South Carolina, USA, with its headquarters in Perth, WA. ➢ Focus on environmentally friendly, non-hazardous Flame Knowledgeable Formulation Experts Retardants (FR) and Phase Change Materials (PCM) that offer superior performance Extensive Customer Support ➢ Cost effective, patented Solutions for both textile and non- textile markets ➢ Formulations made as a single step, drop-in solution that can Exceptional FR Performance be added at any finishing facility around the globe with no changes to equipment ➢ Rapid growth in sales from A$0.4m in 2015 to A$24m in Innovation Driven 2017 ➢ Identified addressable market opportunity in excess of US$3.0bn
6 What do we produce? ➢ Capable of producing extremely ➢ Develop highly innovative and robust chemical wide range of cost – effective solutions ready-to-use at our customers facility chemical solutions at full from day on e commercial volumes using a ➢ IP portfolio of 20+ global patent applications network of toll manufacturers covering chemical structures and applications
7 September 2017 Investor Presentation 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
8 How our strategy will achieve results ➢ Alexium team has over 150 years of collective ➢ Leverage low-capital manufacturing strategy experience in chemical synthesis, manufacturing, and key relationship with major industry product development and sales players to price competitively and impact ➢ CEO and Chief Scientist PHDs in chemistry, 8 target markets quickly R&D staff all PHDs ➢ Lower cost and Longevity; Keys to Success ➢ Identify key markets in significant transition that ➢ Two most important products are up to are underserved by current market players and/or 50% cheaper than incumbents structure ➢ Remaining products are more durable and regulation compliant
9 Alexium's Compelling Advantage Award Winning Technology Cost and performance Lightweight, durable and can be Meets textile industry’s and (WBT 2009, Frost & Sullivan Award, laundered advantage over existing regulators’ urgent demand for TechConnect Innovation Award) textile solutions “green” FR chemistry that passes new strict environmental regulations Alexium has routinely shown Alexium is shifting emphasis on Validation by strong and growing DoD Major focus on sales - expanding sales/product/customer/logistics support, relationship + commercial pipeline itself to be unequalled in the sales on Alexiflam ™, Alexiflam- but is also quickly maturing new products marketplace NF™, from a healthy product pipeline Alexiflam- SYN ™ and Custom FR blends for fabrics
10 Where is our reach? Global Reach with a Simple Model Global Business model ➢ R&D all undertaken at head office in Greer, South Carolina (major hub of industry and excellent transport links) ➢ Doesn’t manufacture, this is all outsourced to 12 producers around the world; no constraints to ramping up production ➢ Most important relationship with ICL – currently largest producer of FR chemistry globally ➢ Sales channels into each continent, but largely US centric at this stage – 48 sales reps globally ➢ Not a catalogue provider like competitors – can tailor chemistry specifically to clients needs Alexium Operations ➢ New facility in Greer South Carolina has 25,000 square feet of office and lab space ➢ Ensures capability for continuing product and team expansion to meet demand growth ➢ Highly sophisticated purpose built state of the art laboratory ➢ Corporate and Sales teams now co - located with product support and R&D teams ➢ Nearby to Greenville Spartanburg International Airport
11 Why are We Different? The Alexium Strategy Novel ➢ Identify key markets in significant transition that are Expanding Eco- Patent underserved by current market players and/or Friendly Portfolio structure Chemistry ➢ Provide unparalleled integration support with end user customers to assist early adoption and product Unique Clear Market Alexium Proprietary innovation Demand Technology (Military/ Commercial) ➢ Attack markets via value add reseller model to allow rapid global expansion Commercial Exceptional ➢ Leverage low-capital toll manufacturing strategy and Value & Military Proposition with major industry players to allow rapid scale up and Partnerships globally established supply chain
12 Business Development Cycle Product testing Product manufacturer Raw material order Chemical supplier Commercial Supply of product production order Commercial Chemistry production order order Raw material delivery Commission finisher Toll manufacturer Supply of chemistry
13 Toll Manufacturing/Supply Chain Scale through asset-light operating model ➢ Strategic partnerships established to rapidly scale go-to-market capabilities. ➢ Manpak is in Australia, Brocolor in Germany; VLS in Belgium, Euroflam in the UK with the other partners being located in the US.
14 Partnerships 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 ➢ 48 sales agents representing various Alexium target markets started in 2016 Global Distribution & Sales Agent Network • Europe, Asia Transport and military & workwear segments • Brazil Workwear, carpet, and transportation industries • Australia & New Zealand Transportation, workwear, carpet, upholstery • Southeast Asia: Myanmar, Vietnam, Polymers & formulated compounds sales Indonesia, Thailand, Malaysia, groups Singapore • Israel & Mediterranean Textiles (workwear, military, bedding, transportation) , polymers, plastics • Northern & Southern Europe Schmits Chemical Workwear, transportation, bedding, and Solutions military • South eastern US Southern Polymers and textiles Solutions LLC
15 September 2017 Investor Presentation 1 Company Overview 2 Who We Are 3 Business Model & Strategy 4 Key Markets 5 Market Opportunities 6 Financial Analysis 7 2018 Outlook 8 Management Bios and Company History
16 Regulatory demands for environmentally and biologically friendly solutions Legislative changes to incumbent FR technology; Existing technology is progressively banned globally. ➢ EPA/EU moving to ban 65% of current FR chemistry The FR market is a US$7bn p.a. industry, with now roughly 65% of the incumbent technology/chemistry under regulatory pressure globally. EPA => top 10 hit list => Outside of Asbestos, most of the remaining chemicals are halocarbons, meaning they contain chlorine, bromine and related halogen elements. These have been identified as hazardous to human health, with some causing cancers, fertility problems and other diseases. 41% of the world’s current bromine production going towards FR => worlds largest supplier is ICL (key Alexium strategic partn er) ➢ EU already banned, 12 US states have already moved The EU is already ahead of the US, banning bromine in 2015 after a report into the toxicity of the chemical was commissioned and delivered to the European Commission in 2014. Twelve states have enacted legislation banning or limiting the use of toxic FR, including California, New York, New Jersey, Massachusetts, Maryland and Washington ➢ Alexium product range is specifically non-toxic and environmentally friendly Alexium chemistry has been independently verified as free from toxic chemicals, including bromine, halogens and formaldehyde
Recommend
More recommend
