Ann: Alexium Commercial Update, page-53

Just focussing on AlexiCool and its US$45m pa pipeline of opportunities…

The company has made clear that, while most Alexicool sales in FY 2019 came from mattress textiles, new revenues will be coming from a broader range of applications.

A major share of the current Alexicool pipeline remains in bedding and is said to include new products incorporating Alexicool due to be launched at next January’s Las Vegas bedding market. Alexicool FM for foam will clearly feature more widely and Alexicool will be seen in a broader range of top of bed goods.

Alexicool is also set to be incorporated in “a greater number of custom-designed consumer goods”. More may be revealed in the upcoming conference call. My guess is that travel pillows is one existing application. There is said to be fast-growing demand for thermal regulation in a wide range of consumer goods. Current applications of PCM in consumer goods include apparel, sporting accessories, shoe inner soles and foot beds, pet bedding and accessories, seating- home, office, hospitality, automotive, aerospace and public transport, medical – mattresses, surgical pads and wheelchairs , outdoor gear, lunch and beverage containers.

Understandably, many of these products are manufactured in China. Hence, one key initiative in FY 2020 is to establish technical and sales support for customers manufacturing consumer goods in China.