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
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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.
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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
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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
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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
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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)
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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
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NYCOLON™ FR Chemicals for Nylon Blends
Topical FR Treatment of Nylon Blends
• 
Target Markets:
• 
Standard military uniforms (est. >25Mil yards/yr.
US DoD)
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Industrial workwear applications (est. >25Mil yards/yr.)
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Development contract with US Marine Corps through AGS
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Competes with high-cost aramid-blends
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Ave. Revenue Target $2.50 per linear yard
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High profit margins
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Strong interest from textile and chemical industry
50/50 Nylon-Cotton!
(6.0 Osy Ripstop)
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NUVALON™ FR Chemicals for Polyester Blends
Topical FR Treatment of Polyester Blends
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Target Markets: Workwear and Military
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Effective on polyester blends up to 65% polyester
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Polyester is the most-used synthetic fiber in
the world
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Strong interest from textile and chemical industry
(ex-US)
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Ave. Revenue Target $2.00 per linear yard;
high profit margins
35/65 Polyester-Cotton!
(7.0 Osy Twill)
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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
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OMNITRON™ FR Chemicals for High Natural
Fiber Blends
Topical FR Treatment of Natural Blends
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Target Markets: Upholstery and Furnishings
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Global market represents over 1 billion yards of
fabric per year
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Wash durable up to 20 cleaning cycles
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Effective on natural blends up to 100% natural fiber
(i.e. cotton)
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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
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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
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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)
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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.
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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
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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
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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 ™
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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