Laserbond Limited · ASX:LBL
Laserbond — Investor Presentation (September 2021)
30 slides from Laserbond's investor presentation, Sep 14, 2021
Slide 1: September 2021 Investor Presentation
For personal use only September 2021 ASX: LBL
Slide 2: Disclaimer
DISCLAIMER For personal use only No responsibility for contents of Investor Accuracy of projections and forecasts No offer to sell or invitation to buy Presentation This Investor Presentation may include certain This Investor Presentation does not, and should To the maximum extent permitted by law,
Slide 3: Business Overview & Performance Summary
For personal use only Business Overview & Financial Operational Strategy & Performance Appendices Performance Summary Performance Prospects
Slide 4: Business Overview
BUSINESS OVERVIEW For personal use only Exposure to recurring industry Services Division wear problems leads to research R&D LaserBond provides Repair and refurbishing for better solutions & product opportunities New surface engineering worn or damaged materials and application advanced surface mach
Slide 5: Performance Summary
PERFORMANCE SUMMARY For personal use only NPAT Net Cash Flow Dividend $M $M Cents A solid performance on all metrics from a 1.8 1.2 business that has 2.8 2.8 2.8 0.8 0.9 0.9 1.0 invested in R&D over 1.0 0.5 -0.6 the long-term to FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 innovate and stay FY18 FY19 FY2
Slide 6: Financial Performance
For personal use only Business Overview & Financial Operational Strategy & Performance Appendices Performance Summary Performance Prospects
Slide 7: FY21 Earnings
FY21 EARNINGS For personal use only Revenue EBITDA NPAT $M $M $M While LaserBond’s net profit was largely flat in FY21, it still reflects 22.7 22.2 24.7 4.9 6.2 6.4 2.8 2.8 2.8 the fundamental 15.6 2.2 1.0 strength and FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 opportunity of a FY18 FY19 FY20 FY21 busi
Slide 8: Cash and Working Capital
CASH AND WORKING CAPITAL For personal use only Cash from Operations Cash at Bank Working Capital A portfolio of blue- $M $M $M chip customers and unwavering cost 4.8 4.9 8.8 control has delivered 4.1 4.3 4.0 5.9 6.1 7.3 consistently strong 1.4 2.2 cash from operations 0.4 FY18 FY19 FY20 FY21 FY18 FY
Slide 9: Debt
DEBT For personal use only Financial Liabilities Net Debt HP & finance leases Total net debt $M $M $M 4.5 5.8 LaserBond’s balance Facility lease liabilities Net debt ex facility lease liabilities 4.8 sheet is strong, with 4.9 low levels of net debt, 0.7 1.0 which can support 5.9 0.5 -0.4 2.9 3.6 fur
Slide 10: Operational Performance
For personal use only Business Overview & Financial Operational Strategy & Performance Appendices Performance Summary Performance Prospects
Slide 11: Services Division Overview
SERVICES DIVISION OVERVIEW For personal use only Offers reclamation of worn industrial components using LaserBond® Services Revenue cladding and thermal spraying as well as high capacity welding, $M Despite a sizeable machining and heat treatment to provide a complete service suite - impact from C
Slide 12: Products Division Overview
PRODUCTS DIVISION OVERVIEW For personal use only Products Revenue The Products Division Manufactures products incorporating LaserBond® cladding applications, $M delivered a stellar such as steel mill rolls, rotary feeders and a range of OEM consumables utilised across a breadth of industries perfo
Slide 13: Technology Division Overview
TECHNOLOGY DIVISION OVERVIEW For personal use only Enables customers to bring LaserBond cladding technology in-house under Planned FY21 revenue for long-tailed licensing agreements which cover equipment supply, technology Technologies Revenue usage and the supply of associated consumables the Tech
Slide 14: Marketplace
MARKETPLACE For personal use only Mining and This small cross- Minerals Processing section of our customers indicates the calibre of the Heavy Industry organisations who see the enormous productivity value of Construction our proprietary technologies, products and services. Other Manufacturing secto
Slide 15: Innovation Track Record
INNOVATION TRACK RECORD For personal use only Began designing more energy efficient laser Second large 0EM cladding cells and with Expanded into VIC with requested LaserBond assistance of a acquisition of UST to manufacture its “Retooling for Climate products. This led to Manufacturing Commenced ope
Slide 16: R&D Investment
R&D INVESTMENT For personal use only LaserBond identifies opportunities for R&D Investment products and technologies in the natural course of business, as customers request LaserBond remains custom-designed solutions to wear life committed to developing FY21 $678,882 problems innovative products a
Slide 17: Research & Development
RESEARCH & DEVELOPMENT For personal use only Proprietary Description Developed Commercialised Target Markets Assets A cost effective alternative to hard chrome on cylindrical parts Cylindrical components subject Several years of TM that avoids carcinogenic chemicals, providing superior 2020 with fir
Slide 18: Competitive Profile
COMPETITIVE PROFILE For personal use only Revenue Stack (%) Approximately 80% of Laser cladding – is gaining more widespread acceptance leading to some the business’s revenue increasing competition from relatively inexperienced players. LaserBond’s years has little direct of R&D investment, resultin
Slide 19: Safety and the Environment
SAFETY AND THE ENVIRONMENT For personal use only Safety The Environment Over three decades of Technology Operations operation, LaserBond • Rolling 12 month LTIFR has fallen • LaserBond’s R&D program aims to • ISO 14001 certification promotes has never had a over FY21 despite an almost 50% minimise t
Slide 20: Strategy & Prospects
For personal use only Business Overview & Financial Operational Strategy & Performance Appendices Performance Summary Performance Prospects
Slide 21: Strategy for Growth
STRATEGY FOR GROWTH For personal use only Continued assessment of Installation of new LaserBond® potential acquisition targets to cladding cell in Melbourne operations expand footprint to service Victorian and Tasmanian Current forecasts Aggressive marketing plan for products markets and capab
Slide 22: The Future
THE FUTURE For personal use only External Environment Internal Environment While global economic While the make-up of revenue has changed as a uncertainty continues With the rollout of vaccinations around the world result of the pandemic (higher demand for and the relaxation of Covid-related res
Slide 23: Investment Rationale
INVESTMENT RATIONALE For personal use only Strong Demand in Solid Business Culture of LaserBond’s business 1. 2. 3. Local and Offshore Foundations Innovation Markets model is founded on innovating to meet Year on year growth on all Business model founded on Accessing sizeable global specific c
Slide 24: Appendices
For personal use only Business Overview & Financial Operational Strategy & Performance Appendices Performance Summary Performance Prospects
Slide 25: LaserBond Snapshot
LASERBOND SNAPSHOT For personal use only LBL SHARE PRICE MOVEMENT ASX 200 MOVEMENT COMPANY INFORMATION $1.20 8,000 Incorporation 30/09/1992 $1.00 7,000 6,000 IPO 17/12/2007 $0.80 $0.60 5,000 Offices/sites Sydney, Melbourne, Adelaide $0.40 4,000 Sep-20 Jun-21 Jan-21 Mar-21 Aug-21 Dec-20 Apr-21 May-21
Slide 26: Five-Year Earnings
FIVE-YEAR EARNINGS For personal use only A$000 2017 2018 2019 2020 2021 Sales Revenue 13,751.4 15,648.1 22,667.2 22,177.3 24,664.5 Gross profit 7,186.0 6,962.1 10,742.7 11,522.8 12,588.0 Operating Expenses (4,730.1) (4,731.6) (5,845.1) 5,335.3) (6,204.3) EDITDA 2,455.9 2,230.4 4,897.6 6,187.5 6,373.
Slide 27: Five-Year Balance Sheet/Cash Flow
FIVE-YEAR BALANCE SHEET/CASH FLOW For personal use only A$000 2017 2018 2019 2020 2021 Cash & Equivalents 2,011.6 1,379.1 2,192.5 3,997.7 4,907.9 Current assets 7,851.0 9,229.1 10,135.7 11,843.7 14,929.1 Non-current assets 2,776.6 3,398.0 6,265.5 11,759.7 14,601.8 Total assets 10,627.6 12,627.0 16,4
Slide 28: Case Study: Powered Roof Support Cylinders
Case Study 1 POWERED ROOF SUPPORT CYLINDERS For personal use only LaserBond has become the Problem Solution OEM’s repairer of choice, delivering a superior PRS Cylinders are large diameter, three stage, Utilising the in house R&D capabilities and relying telescopic, hydraulic cylinders used on Longw
Slide 29: Case Study: Final Drive Unit – Mining Excavator
Case Study 2 FINAL DRIVE UNIT – MINING EXCAVATOR For personal use only The Hitachi EX1900 excavator, Problem Solution with the enhanced, repaired The customer, a major mining contractor, was LaserBond’s solution was to LaserBond® clad an Final Drive Unit was alloy selected to give superior corrosion
Slide 30: Further Information
Further Information: For personal use only Matthew Twist Chief Financial Officer and Company Secretary (02) 4631 4500 matthewt@laserbond.com.au www.laserbond.com.au