For personal use only Flame Retardant Specialty Chemicals
Transcription
For personal use only Flame Retardant Specialty Chemicals
For personal use only Not for General Distribution Alexium International Group Limited® Flame Retardant Specialty Chemicals & Reactive Surface Treatment Technology This presentation has been prepared by Alexium International Group Limited (“Alexium”) or the (“Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. This presentation contains confidential and company sensitive information. For personal use only Company Overview • HQ: Perth, Western Australia. Operations: Greer, South Carolina • Listed on the ASX (ASX: AJX), US (OTC QX) (AXXIY) & Frankfurt stock exchange (E7T.F). • Reactive Surface Treatment (“RST”), a unique patented award winning technology that can change the surface properties and performance of many every day materials. • Began development of Flame Retardant chemicals in 2011 leading to Alexium becoming a specialty chemicals company. • Winner of the WBT 2009 “World Best Technology” Award. • Focused on Development and Sale of Novel & Safe FR Chemicals. • Halogen-free Solutions - Offering Cost and Performance Advantages For personal use only Corporate Overview KEYKEY STATISTICS STATISTICS (7 November (18.08.2013) 2014) ASX Code Current Share Price 52 Week High AJX $0.25 $0.26 52 Week Low Shares on Issue (post placement) ~220m Market Capitalisation (undiluted) ~$55m Cash (Sept Qtr inc placement) ~$5.1m Convertible Notes* ~$1.0m Cash Burn per month ~$250k * ~10m Convertible Notes with a face value of $0.10 per Note, maturity Mar 2016 SHAREHOLDER STRUCTURE $0.082 12 MONTH SHARE PRICE PERFORMANCE For personal use only Company Board Gavin Rezos – Executive Director & Chairman • Extensive international investment banking experience • Held CEO positions in companies in Australia, the UK, US and Singapore • Non Executive Director of Iluka Resources Craig Smith Gander – Non Executive Director • Graduate Royal Military College Duntroon, 10 years military service • Former Director Investor Banking CIBC World Markets • Experienced company director, entrepreneur. Nick Clark – Executive Director • Degree in Economics and Law with a postgraduate MBA • Qualified Lawyer in NSW and with the NY State Bar Assoc. CPA with AICPA • Over 8 years of board level experience and representation. For personal use only Senior Management Nick Clark – Chief Executive Officer • Degree in Economics and Law with a postgraduate MBA • Qualified Lawyer in NSW and with the NY State Bar Assoc. CPA with AICPA • Long history in M&A, global stock markets and public company financings • Over 15 years experience in Senior and Executive management. Dr. Dirk van Hyning – General Manager of Operations • Dr. Hyning received his PhD in Chemical Engineering from the University of Illinois. • Over 14 years of experience in product development, production, and commercial roll-out. Dr. Bob Brookins – Head of Research & Development • Dr. Brookins received his PhD in Chemistry from the University of Florida. • Background in organic synthesis, materials chemistry and chemical and biological defence. Jon Heard – Head of Business Development and Sales • 30+ years experience in the textile and chemical industry (Milliken, INVISTA, TECGEN). • Experience in launching, growing, and ultimately selling his own business (in 2000) in the field of flame retardancy. • Vast network of contacts at the executive level with companies in the FR/Speciality Chemical industry and also with the textile producers that supply the military. For personal use only History • Established to use technology supported by a relationship with the U.S. Department of Defense. • Alexium’s Reactive Surface Treatment (RST) platform technology was developed initially to respond to threats from chemical and biological warfare agents. • Alexium acquired the RST process in order to deliver solutions for both military and commercial customers. • After listing on the ASX in 2010, Alexium began building a world-class team of experienced business professionals, engineers, scientists and technical consultants in three international locations. • Began development of Flame Retardant chemicals in 2011 - leading to Alexium becoming a specialty chemicals company. For personal use only Market Drivers – FR Chemistries Conventional FR Market Many of the most effective FR coating chemistries are now banned or being withdrawn from the European and US markets. Currently, approx. 40 million tonnes of FR chemicals are sold annually – anticipated to grow to $7 billion market in 2017. • Increased concerns regarding environmental effects of some of the most effective FR solutions • Evidence of toxicity and bio-accumulation of halogenated compounds and carcinogens • New legislation in Europe and USA severely restricts or eliminates the use of a number of brominated/halogenated compounds • Alexium FR coatings are environmentally friendly and contain no such harmful compounds that exist in other products: Bromine-Free, Chlorine-Free, Antimony-Free, Heavy Metals-Free For personal use only Alexium's Compelling Advantage • Alexium's FR chemistry meets textile industry and regulators urgent demand for “green” FR chemistry to meet new strict environmental regulations • Award Winning Technology (WBT 2009, Frost & Sullivan Award) • Technology is developed for use with nylon and syntheticcellulosic blends; treatments provide a cost and performance advantage over existing textile solutions • Alexium coatings are lightweight, durable and can be laundered • Chemicals/treatment costs are very competitive • Initial relationship with Duro represents a multi-million dollar revenue opportunity for Alexium • Major focus on sales - expanding sales on Ascalon®, Nycolon®, Nuvalon®, Polytron®, and Custom FR blends for fabrics. • Alexium is shifting emphasis on sales/product/customer/logistics support, but is also quickly maturing new products from a healthy product pipeline For personal use only Growth from FR Chemicals Business Topical FR Treatments FR Additives Nylon Fabrics Polymer Additives Nylon Fabric Blends Paint Surface Treatments Microwave Processing Repellency Treatments Defense (CB) Heat Sensitive Materials Paint Polyester Fabric Blends Custom Blends GROWTH MICROWAVE PRODUCTS (RST) For personal use only Technology Leading to Product Launches Product Brands: Novel, Eco-friendly Chemistry Clearly Differentiated Technology Exceptional Value Proposition Alexium Product Launches Clear Market Demand (Military/ Commercial) Commercial Partnerships Expanding Patent Portfolio CLEANSHELL® CLEANSHELL® CB ASCALON® NYCOLON® NUVALON® POLYTRONTM For personal use only ASCALON™ FR Chemicals for Nylon Topical FR Treatment of Nylon (100% Synthetic) • Target Markets > 4Mil yards (North America) focusing on Military Clothing, Law Enforcement, First Responders, Industrial Workwear, Tents, Backpacks • Enthusiastic response from industry leaders around the world – no directly comparable technology/product • Initial agreement with Duro Textiles covers North American markets and >95% nylon fabric applications • Provides FR Protection where Nylon is Currently Used “at risk” Creates a Low Cost Alternative to Inherently FR Materials • Alexium Estimate (Chemicals/Royalties) $1.50 per yard • Attention now on Production Transition with Duro, Expansions in Europe, Asia, Australia For personal use only NYCOLON™ FR Chemicals for Nylon Blends Topical FR Treatment of Nylon Blends • Target Markets: • Standard military uniforms (est. >25Mil yards/yr. US DoD) • Industrial workwear applications (est. >25Mil yards/yr.) • Development contract with US Marine Corps through AGS • Competes with high-cost aramid-blends • Ave. Revenue Target $2.50 per linear yard • High profit margins • Strong interest from textile and chemical industry 50/50 Nylon-Cotton! (6.0 Osy Ripstop) For personal use only NUVALON™ FR Chemicals for Polyester Blends Topical FR Treatment of Polyester Blends • Target Markets: Workwear and Military • Effective on polyester blends up to 65% polyester • Polyester is the most-used synthetic fiber in the world • Strong interest from textile and chemical industry (ex-US) • Ave. Revenue Target $2.00 per linear yard; high profit margins 35/65 Polyester-Cotton! (7.0 Osy Twill) For personal use only POLYTRON™ FR Chemicals for Polyester Topical FR Treatment of Polyester • Suitable for many furnishings, upholstery, curtain and contract fabrics • Topical Treatment of 100% Polyester – to compete with fabrics made of FR polyester fibers, such as Trevira® • Alexium’s Polytron™ treatment reduces fabric costs (by treating conventional polyester fibers) • Multi-million yard, global market • Ave. Revenue Target $2.50 per linear yard • High profit margins For personal use only OMNITRON™ FR Chemicals for High Natural Fiber Blends Topical FR Treatment of Natural Blends • Target Markets: Upholstery and Furnishings • Global market represents over 1 billion yards of fabric per year • Wash durable up to 20 cleaning cycles • Effective on natural blends up to 100% natural fiber (i.e. cotton) • Ave. Revenue Target $1.00 per linear yard; high profit margins For personal use only Alexiflam-MP ™ FR Chemicals for Wool Blends and High Natural Fiber Blends Topical FR Treatment of Wool Blends and Natural Fiber Blends • New generation of chemistry • Effective on high natural fibers, including wool and cotton • Flame retardant wool industry represents more than ten million yards of fabric per year • Strong interest from transportation industry • Low weight add-on maintains inherent fabric properties while providing flammability protection • Non-leaching, non-migrating, wash durable (up to 15 cleaning cycles) • Ave. Revenue Target $1.00 - $2.00 per linear yard; high profit margins For personal use only CUSTOM BLENDS – FR Package Topical FR Treatments – Customized • No Wash-off, Semi-durable Treatment on Fabric Blends for Furniture and Upholstery Applications • Back-coated Furnishings Fabrics and Technical Textiles • Additive to Existing Back-coating Products • Stand-alone Back-coating Chemistry • Products Launching and Pricing Being Established For personal use only Other FR Product Extensions FR Polymer Additives – Plastics • PA, PC, PE, etc. • Working with Major FR Chemical Company • Large Volume Applications • Development Initiated FR Polymer Additives – Paint • Mid-size Applications to improve fire/heat resistance • Development not yet Initiated For personal use only Non-Conventional Applications & Capabilities • Chemical & Biological Repellency (Military): • Cleanshell® CB chemistries designed to offer enhanced CWA protection. • Demonstrated more than 25X repellency improvement on Chemical Warfare Agent (CWA) simulants versus traditional fluorocarbon treatments. • Independent testing by certified laboratory confirmed increased protection to CB live agent; > 1000X slower penetration of chemical warfare agent • Repellency Treatments: • Demonstrated Cleanshell® C6 repellency treatment as viable alternative to conventional C8 chemistry (being phased out as environmental regulations tighten); • Niche applications; Repellency markets are generally a commodity business & entrenched • Microwave Processing / Shrink Wrap Coatings: • Functionalizing difficult to treat (inert) materials, such as UHMWPE • Functionalizing heat sensitive fibers/materials • Microwave heat curing (rubber-based materials) For personal use only New Contracts & Sales • Alexium is currently engaged with five customers in the transportation upholstery market. • Initial revenues for trial production runs have been received from three of these customers. • The transportation market has shown interest in Alexium’s Polytron™ treatment as a backcoating application and the new Alexiflam-MP ™ treatment for wool fabrics. • These customers cover multiple submarkets of the transportation industry: public transportation fabrics, automotive bodycloth, and airplane fabrics. • The transportation industry has been searching for eco-friendly flame retardant solutions now that halogenated chemistries are being withdrawn. • Alexium’s treatments are easily dropped into customers’ manufacturing equipment, which minimizes disruption to their production schedules. • These opportunities represent a potential annual sales volume of US $10 Million. For personal use only New Grants & Collaborations • Alexium and ICL to co-develop flame retardant chemicals and treatment packages. • $250,000 grant from the South Carolina/Israel Collaborative Industry R&D Program. • Bi-national initiative for industrial R&D projects between companies from South Carolina and Israel. • ICL is a leading global fertilizer and specialty chemicals company, the world’s leading producer of elemental bromine and a major player in the FR industry. • ICL is majority owned by Israel Corp one of Israel's largest holding companies and one of the top ten companies listed on the Tel Aviv Stock Exchange (TASE: ILCO). • 12,000 employees worldwide, 2012 sales US$6.5 billion, over 70% of its consolidated revenues derived from worldwide operations. • Shows further validation of Alexium’s novel treatments and provides global partner to accelerate sales in new geographic locations For personal use only Government Support • Visits from Senator Lindsey Graham (South Carolina) and Congressman Gowdy (South Carolina) • Senator Graham sits on the Budget Committee and the Committee on Armed Services • Congressman Gowdy sits on the Oversight and Government Reform committee, and he is on the National Security subcommittee • Working with Natick Solder Research, Development and Engineering Center on treating military uniforms • They have requested samples for vest and uniform fabrics, which we are currently developing • Received support from several important Washington, D.C. contacts who can help us promote our chemistries through the proper military channels For personal use only Partners: Licensees, Distributors, Chemical Relationships • Licensees • Duro Textiles – US-based textile finisher and licensee of Ascalon ™ for North America • Distributors: • iTextiles – Pakistani chemical distributor of Alexium’s FR products in Pakistan, UAE, Sri Lanka, and Saudi Arabia • Essex/EuroFlam – U.K. based FR commission finisher specializing in home textiles, furnishings, and institutional/contract fabrics; customer and commercial partner for Alexium’s FR products in the U.K. • Toll Manufacturers: • Marlin – toll chemical manufacturer for production of Nycolon™, Nuvalon™, and Polytron™ • InChem – toll chemical manufacturer of Ascalon ™ For personal use only A Growing Intellectual Property Portfolio • Over 20 patents in 9 different countries • 3 Patent applications regarding FR Chemical treatments, and flame retardant emulsions • Trade secrets • Trademarks & branding For personal use only Alexium Locations Corporate Office: 148 Milestone Way Greenville, SC Production Facility: 8 Distribution Court Greer, SC