13 Sep 2021

FY21 Full Year Results Presentation

ASX ANNOUNCEMENT 13 September 2021 Advanced Braking Technology Ltd (ABN 66 099 107 623) Email: info.perth@advancedbraking.com 19 Creative Street Wangara WA 6065 Telephone: +61 8 9302 1922 www.advancedbraking.com FY21 Full Year Results Presentation Advanced Braking Technology Ltd (ASX: ABV), the pre-eminent supplier of fail-safe brakes for commercial vehicles in Australia, today released its FY21 Results Presentation. Following this release, CEO, John Annand will today be providing an investor webinar to provide an overview of the business, discuss the full year results and the outlook. The presentation will last approximately 45 minutes and will be inclusive of an opportunity for question time. Webinar To register for the webinar please follow the link below. Date: Monday, 13 September 2021 Time: 12:30pm AEST Registration Link: https://us02web.zoom.us/webinar/register/WN_IbDbC1D8QU2sY9ncwmTc_A For further information, please find attached today’s announcement. This release is authorised by the Board of Directors. - ENDS– Advanced Braking Technology Ltd (ABN 66 099 107 623) Email: info.perth@advancedbraking.com For further information, please contact: Corporate Investors Mr. John Annand Stephanie Ottens Chief Executive Officer Market Eye T: +61 (0) 8 9302 1922 T: +61 (0) 434 405 400 www.advancedbraking.com E: stephanie.ottens@marketeye.com.au About Advanced Braking Technology Advanced Braking Technology Ltd (ABT) designs, manufactures and distributes its innovative braking solutions worldwide. From its head office in Perth, Western Australia, ABT continues to develop its product portfolio for a diverse range of industries that have a strong requirement for safety and environmental responsibility, including the mining, defence, civil construction and waste management industries. ABT’s innovative braking solutions are well known for their unparalleled safety, improved productivity, zero emissions and durability in the world’s harshest conditions. As its reputation has grown, demand for ABT's brakes has expanded internationally with its braking solutions being used in all seven continents across the globe. Investor Update FY 21 Full Year Results © MARCH 2021 – ADVANCED BRAKING TECHNOLOGY 1 Over 20 years experience and the original manufacturer of sealed wet brake technology Designed, developed, tested and manufactured in Australia Heavy duty braking solutions to the mining, defence, waste management and civil construction industries with further diversification underway Focused on innovation, safety and environmental responsibility and reduction in downtime costs and increased operational efficiencies for our customers ‘Protecting your brakes from the environment, protecting the environment from your brakes’ Company Overview © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY 2 © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY WE BELIEVE IN SAFETY – IT IS CENTRAL TO EVERYTHING WE DO Through embracing ‘Safety Principles’ in everything we do, we aspire to create prosperity for everyone that is touched by our business. We aim to produce and sell innovative braking solutions with the commitment to promoting sustainable business practices that protect people and the environment. 3 Strategy execution demonstrated through improvements across key metrics Results Overview Sales Revenue $9.7m 16% increase on pcp Stable Gross Margin 46.3% Substantially debt free © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY Net Profit $0.62m 263% increase on pcp 4 EBITDA $0.91m 40% increase on pcp Cash Balance $1.41m $1.48m at 31 Dec 2020 Market Overview © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY ABT is well - positioned to take innovative solutions to market and capture additional business development opportunities globally Growing global distribution and customer network >20 years Further growth planned through expansion of our Australian and international footprint >16 countries Sales & Distribution network covering experience and the original manufacturer of sealed brake technology 6 Damage suffered to OEM braking systems operating in harsh off - road environments • Abrasion and corrosion - contamination by dust, mud, chemicals leading to premature brake wear, poor and often unsafe braking performance Unintended vehicle movements • Risk to both people and equipment due to vehicle roll aways Impact to both people and the environment • Harmful brake dust emissions © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY Value proposition The ABT product portfolio provides solutions to a number of identified problems Problems identified ABT solution Enclosed and sealed braking systems • Prevents contaminants from causing premature brake wear and poor braking performance Failsafe technology • Spring applied hydraulic release, failsafe capability Wet brake technology • Fluid filled braking system Customer benefits • Significantly improved safety for both people and equipment • Improved Total Cost of Ownership through reduced maintenance costs • Increased vehicle uptime & fleet availability • Excellent braking performance even in the harshest operating conditions • Zero brake particulate emissions improves safety and lowers environmental impact • Improved heat management results in reduction in brake fade and bearing overheating 7 Product and Customer Overview © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY Current core products Failsafe Driveline Brakes Terra Dura ® Fully Sealed For Durability Fully Sealed With Failsafe Capability Failsafe Driveline Brakes 9 © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY Product portfolio suitable for a number of different applications Current core products ? Maximum safety 4 WD brake ? Fully enclosed wet brake design equipped with failsafe technology ? Exceptional reliability and durability, with low maintenance requirement ? Mandated for use in many underground mines to prevent vehicle runaway ? Field proven by blue - chip customers for 20+ years ? Zero brake dust emissions ? Now in 4 th generation ? Maximum safety driveline brake ? Contains all the safety features of Failsafe ? Technology suitable for numerous applications from underground mining to high speed open road use ? Mandated for use in many underground mines to prevent vehicle runaway ? Field proven by blue - chip customers for 20+ years ? Zero brake dust emissions ? Exceptionally durable 4WD brake ? Fully enclosed design protects internal brake components from abrasion and corrosion ? Sealed design specifically for harsh environments (mining, construction, agriculture & off - road) ? Provides significant costs savings ? Zero brake dust emissions ? Updated product launch in June 2019 – greatly improved durability and reliability 10 © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY ABT continues to innovate to secure new market opportunities across a range of industries Product innovation Design, prototype testing and long - term supply agreement with Thales Australia for a hill - hold brake for use on the Hawkei light protected vehicle Design, prototype testing and deployment within Fortescue Metals Group for a dry driveline brake for use on a fully autonomous light vehicle application Continuous improvement of original design concept • design review undertaken • metal cover version released to market for use within the most extreme operating environments • International patent for improved concept design lodged Future innovation will focus on continuous improvement of our existing product portfolio to address the automotive megatrends of autonomous, electric and connected vehicles 11 © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY ABT continues to grow its blue chip customer base Customers and end users 12 Sales by Industry (rolling 12 months) © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY Product, customer and industry diversification Defence Waste Management Civil Construction 13 13% 3% 6% 9% 69% Civil Construction Defence Fleet Mining Mining Services © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY 14 Sales pipeline and forward order book remains strong Pipeline Opportunities Metal cover variant ”Terra Dura X” released to market Targeting “sweet spot” opportunities within wet/abrasive operating environments Engagement with non - traditional ABT customer base ( eg salt, bauxite) New international markets engaged – Chile, Indonesia, New Caledonia Terra Dura Global Mining Failsafe mandated mine sites High maintenance environments Autonomous vehicle applications Heavy haulage applications Other Defence : Hawkei Project Rail: Hi - Rail applications Environmental: Brake dust emissions Civil Construction Foothold gained within tunneling projects in Australia Failsafe Penetration into non - ABT mine sites Failsafe mandated mine sites creating opportunities with new vehicle applications requiring Failsafe capability New international markets engaged – Chile, Indonesia, Zambia, New Caledonia, Botswana Financial Performance • Solid increase in total revenue of $10.45 million, up 15% on previous corresponding period ( pcp ) • Operating Sales increased to $9.70 million, up 16% on pcp with product sales margins stable at 46.3% • Continued positive Net Profit result of $0.62 million (FY20: $0.17 million) and positive EBITDA result of $0.91 million (FY20: $0.65 million) a 263% and 40% increase respectively on pcp • ABT received approximately $0.1 million in COVID - 19 related financial assistance payments, provided by both the Federal and Western Australian governments FY21 FY20 Change Total Revenue $10.45m $9.08m 15% Operating Revenue $9.70m $8.35m 16% Gross Margin 46.3% 46.3% - Total Expenses $ 4 . 62 m $ 4 . 43 m 4% EBITDA $0.91m $0.65m 40% Profit / (Loss) for the period $0.62m $0.17m 263% © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY Continued positive net profit result Financial performance 16 • Improved cash position of $1.41 million following three consecutive quarters of positive cashflow • Improved sales and focus on cost management • Cash balance broadly stable at $1.41 million compared to 31 December 2020 of $1.48 million but a strong increase on FY20 following receipt of tax offset for R&D of $0.53 million in 1H21 • Slight decline in cash reflective of investment in in - house manufacturing with the purchase of a CNC lathe machine following the awarding of a Defence Competitiveness Grant ($m) FY21 FY20 Net cash from operating 1.21 0.24 Net cash from investing (0.27) 0.05 Net cash from financing (0.04) (0.50) Cash balance 1.41 0.52 © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY Cash Flow performance 17 -$4,000 -$2,000 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Revenue from trading activites Net profit/loss from continuing operations © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY Improving financial position 18 Strategy and Outlook SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY 19 Strategy © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY By 2023 Generate material growth in both revenues and earnings by offering innovative braking solutions to a global customer base DISTRIBUTION supplier networks, geographical coverage and customer support DIVERSIFY products, services, customers, industries and countries CAPITAL ALLOCATION of costs, resources, ROI LEVERAGE our existing product range and historical R&D ORGANISATIONAL CAPABILITY people, values, culture and branding GROWTH through organic and inorganic growth opportunities INNOVATION product development and R&D based on safety, the environment and voice of customer Deliver shareholder value 20 © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY Recent progress to support our strategy A strong future Leadership team and internal capability strengthened Significantly improved financial position; increased sales and cost management Substantially debt free Cash flow and EBITDA positive and record net profit result achieved for FY21 Product innovation and diversification; new products released to market Customer diversification; first long term supply agreement achieved Industry diversification; sales revenue from new industries achieved Patent portfolio strengthened; international patent lodged 21 © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY The foundations for growth are now in place Outlook for FY22 • Continue to drive: o Innovation through Voice of Customer and identification of market gaps o Diversification by leveraging our current product offering to both existing and new customers across a range of industries • Assess organic and inorganic growth opportunities that can provide expanded product offering or increase in distribution footprint through acquisitions, strategic partnerships joint ventures and other initiatives • Expand our Australian and international distribution footprint by partnering with local businesses within key geographic regions • Continue to improve financial performance • Position ABT for the future to participate in the automotive megatrends of automated, electric and connected vehicles 22 Appendices 23 Board and Management Team John Annand Chief Executive Officer Paige Exley Chief Financial Officer © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY 24 Dagmar Parsons Non - Executive Chair David Slack Non - Executive Director Adam Levine Non - Executive Director Mark Lindh Non - Executive Director Top 50 share registry breakdown ABT is substantially debt free with a supportive register Corporate Overview Institional Investors HNW Investors Retail Investors Board and Management © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY 25 Corporate Mr. John Annand Chief Executive Officer T: +61 (0) 8 9302 1922 Investors Stephanie Ottens Market Eye T: +61 (0) 434 405 400 For further information, please contact: Disclaimer © SEPTEMBER 2021 – ADVANCED BRAKING TECHNOLOGY The material contained in this presentation sets out general background information 27
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