Phoslock Environmental Technologies Limited · ASX:PET
Phoslock Environmental Technologies — Phoslock Water Solutions — Eco Investor Conference 2010
23 slides from Phoslock Environmental Technologies's conference presentation, Oct 19, 2010
Slide 1: Eco Investor Conference
Eco Investor Conference 19th October 2010 Robert Schuitema Managing Director Phoslock Water Solutions Ltd
Slide 2: Investment Highlights
Investment Highlights Water Sector Product to significantly improve water quality in lakes, reservoirs, rivers, canals Huge global market needing pro-active solutions like Phoslock “Phoslock” the Product Developed by the CSIRO Full patent and trademark protection in major countries Commerc
Slide 3: What is Phoslock?
What is Phoslock? Phoslock invented by the CSIRO (Australian Govt. Scientific Body) in the 1990’s PWS granted licence in 2001; purchase Patents & Trade Marks in 2005 Product: clay-like granules Key raw materials are: Active ingredient - lanthanum (embedded inside the bentonite-layers) as t
Slide 4: Phoslock Manufacturing Plant – Kunming, China
Phoslock What Is Phoslock? Manufacturing Plant Phoslock Manufacturing Plant – Kunming, China
Slide 5: What is Phosphorus?
What is Phosphorus? What is phosphorus? Phosphorus is a nutrient that exists in the natural environment However excessive use of fertilisers and household products along with poor sewerage practices cause too much phosphorus to enter the environment and cause detrimental impacts on water bodies
Slide 6: What does Phoslock do after application?
What does Phoslock What do Is Phoslock? after application? Adsorbs P in the water column Caps sediment – stops re-release Sits at bottom interacting with water column and sediment pore water When all vacant “sites” on the Phoslock granule are saturated with P, Phoslock sits on the bottom of
Slide 7: Het Groen Eiland De Gouden Ham Treated with Phoslock
Het Groen Eiland De Gouden Ham Treated with No Phoslock Phoslock Treatment Photo taken 6 months after the Phoslock Application
Slide 8: How is Phoslock Applied?
How is Phoslock What Is Phoslock? Applied? Smaller water bodies Large water bodies Very large water bodies
Slide 9: Major Focus Markets
Major Focus Markets Europe & UK Americas Asia Australia & NZ Base map c/o: http://go.hrw.com/atlas/norm_htm/world.htm
Slide 10: Europe and UK
Europe and UK • Joint venture (60%/40%) with IDN performing very well. • 25 lakes treated since 2007 • Established in Germany, Holland, UK, Italy • Major trial on lake Varese in Italy • Significant pipeline of major (>1000 tons) and large (100-1000 tons) • Expect some projects to commit over next 12
Slide 11: Canada and Americas
Canada and Americas • Significant resources committed to developing Canadian market • First major sale (100 tons) in early 2010 for Lake Simcoe Authority • A number of projects in advanced stages with LSRCA, other Ontario lake authorities, other Canadian provinces • Commercial relationships establis
Slide 12: Australia
Australia • Undertaken a number of projects around Australia since 2004 • Phoslock viewed as remediation product and BGA prevention in this market • Licence approved to apply Phoslock to major NWS Drinking Water Reservoir • A number of repeat applications – River Torrens, Canning River, waste water
Slide 13: Asia
Asia • Enormous water quality problems in this region and appear to be getting worse • Political resolve to address issues however projects are large and will take a number of years • Selectively working on several large projects in China with well credentialed partners • Undertaking meaningful tria
Slide 14: Other Application Types for Phoslock
Other Application What Types forIsPhoslock Phoslock? Storm Water Basins (SWB) Phoslock is being used in SWB to adsorb phosphorus before it enters rivers and canals that flush into lakes SWB are generally 0.3ha to 1.5ha with Phoslock applied twice a year Constructed Wetlands Phoslock is being used at
Slide 15: Other Application Types for Phoslock
Other Application What Types forIsPhoslock Phoslock? Aquaculture Ponds • Phoslock has been successfully used in aquaculture ponds in Australia, Indonesia, Malaysia and India to improve growing conditions • Aquaculture expert representing Phoslock – strong sales enquiries; good initial sales Rehabili
Slide 16: Phoslock Revenue Model
Revenue What Is Model Phoslock? Chinese JV [ 71%] manufacturing Phoslock JV Manufacturing Margin PWS sells Phoslock to customers Gross Profit margin 50% to 200% PWS applies Phoslock to water body Gross Profit on application costs • Selling and Administration Costs approx. A$2.5M pa • Break Even is a
Slide 17: Increasing Revenue
Increasing Revenue Actual Actual Actual Actual Actual Forecast
Slide 18: Reducing Expenses
Reducing Expenses Actual Actual Actual Actual Actual Forecast Cash Expenses Depreciation and Amortisation
Slide 19: Pipeline is Growing
Pipeline is Growing 20,000 Metric Tons (MT) 15,000 10,000 5,000 0 31 Dec 31 Dec 31Dec 31Dec 31 Dec 30 Sept 2005 2006 2007 2008 2009 2010 Application size per project capped at 1,000 MT
Slide 20: Financial Performance
Financial Performance PWS has underperformed – sales not achieving forecast levels 79% increase in revenue in FY09/10 to A$2.0M; EBITDA loss (A$1.2M) Sales process is generally 12-36 months. Often trials required before larger sales completed Pipeline continues to grow; number of major decis
Slide 21: Capital Structure
Capital Structure Company Name: Phoslock Water Solutions Limited ASX Code: PHK Current Price: 7 cents* Trading range: (last 12 months) 5 - 14 cents Total Issued Shares: 210 million Total Issued Options: 5.4 million ** Market Capitalisation: A$15 million * Price on 12th October 2010 ** Exercise price
Slide 22: Major Shareholders
Major What Is Phoslock? Shareholders Major Shareholders of Ordinary Shares * Link Traders Pty Ltd Investor 16.5% Newest Pty Ltd Investor 5.1% Kevin Tay Hay-Leong Investor 4.9% Ludgate Environmental Fund UK Institutional Investor 4.8% Current Directors and Executives – Ordinary Shares 6% Top 50 Share
Slide 23: PWS Contact
PWS Contact What Is Phoslock? Details Phoslock Water Solutions Limited Level 3 110 Pacific Highway St Leonards Sydney PO Box 521 St Leonards NSW 1590 Australia Tel: +61 2 9439 7715 Fax:+61 2 9460 8973 Email: [email protected] www.phoslock.com.au or www.phoslock.eu ASX Ticker: PHK
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