Slide 1: XTEK updated investor presentation (ASX release)
Release to the Australian Securities Exchange XTEK updated investor presentation Friday 30 August 2019: XTEK Limited (ASX: XTE) (“XTEK” or “the Company”), is pleased to release an updated Investor Presentation. This presentation presents an update on the Company’s strategy following the HighCom acqu
Slide 2: XTEK Investor Presentation August 2019
XTEK INVESTOR PRESENTATION August 2019 www.XTEK.net | ASX: XTE www.XTEK.net | 1800 500 032 | ABN 90 103 629 107
Slide 3: Agenda
AGENDA XTEK is well positioned for growth, underpinned by accelerated commercialisation of high value proprietary solutions and favourable market sentiment within the domestic and global defence industry Favourable Focused on market US acquisition Actionable Record FY19 defence market leading soldie
Slide 4: To be a leading global provider of revolutionary defence technology
TO BE A LEADING GLOBAL PROVIDER OF REVOLUTIONARY DEFENCE TECHNOLOGY ENHANCE OUR CUSTOMERS’ SOLDIER SOLUTIONS CAPABILITIES AND OPTIMISE SHAREHOLDER VALUE www.XTEK.net | 1800 500 032 | ABN 90 103 629 107
Slide 5: Key achievements over the last 12 months
KEY ACHIEVEMENTS OVER THE LAST 12 MONTHS Significant financial and operational achievements ✓ Transformational acquisition of HighCom, a profitable US-based body armour manufacturer, with acquisition to complete in Sept 2019 Accelerates XTclaveTM Increases ballistic ✓ Record FY19 revenue commerciali
Slide 6: HighCom: transformational acquisition
HIGHCOM: TRANSFORMATIONAL ACQUISITION In July 2019, XTEK acquired HighCom a successful and profitable provider of proprietary body armour and personal protective equipment focused on the US market HighCom overview Overview of transaction and benefits to XTEK A$10.5m A$1.4m CY18 Revenue1,2 CY18 EBITD
Slide 7: Favourable defence sector themes
FAVOURABLE DEFENCE SECTOR THEMES XTEK is well positioned to capitalise on favourable trends in the global defence sector – underpinned by the highest level of global expenditure in the West in over 25 years, estimated to be > US$1.8tn in 2018 (~2.1% of global GDP) Military expenditure and market dyn
Slide 8: XTEK strategy
XTEK STRATEGY XTEK is focused on commercialising its world class soldier solutions in key target markets globally Clear pathway to Focused on high value Significant experience and global markets solider solutions expertise Focused on high value export markets Proprietary state-of-the-art technologie
Slide 9: Providing soldier solutions
PROVIDING SOLDIER SOLUTIONS XTEK has a range of high value front line solutions and services for the defence, law enforcement and government sectors globally Supplier1 of WASP and Ongoing provider of SUAS PUMA systems repair and maintenance services to the ADF Ballistic shields and platform armour H
Slide 10: Ballistic solutions
BALLISTIC SOLUTIONS
Slide 11: Well defined ballistic solutions strategy
WELL DEFINED BALLISTIC SOLUTIONS STRATEGY XTEK’s commercialisation strategy has a clear pathway to value upside – underpinned by the innovative state-of-the- art XTclaveTM process technology which enables the delivery of high performance and lightweight ballistic solutions Major Market leading Manuf
Slide 12: Ballistic solutions
BALLISTIC SOLUTIONS XTEK’s ballistic solutions address key market needs and penetrate large global markets worth more than US$11bn p.a. 1 and growing at more than 5% CAGR1 XTEK’s ballistic armour solutions Soft armour Hard armour plates Helmet shells Platform armour FY19 sales2 ✓ ✓ ✓ ✓ # products Mu
Slide 13: Clear path to capture upside potential
CLEAR PATH TO CAPTURE UPSIDE POTENTIAL Clear pathway to commercialise XTclaveTM manufactured products with potential major customers completing the comprehensive testing and validation process – with manufacturing capability on track in the near term XTclaveTM pathway to value Extensive and comprehe
Slide 14: Growth and outlook
GROWTH AND OUTLOOK Manufacturing capability Capitalise on significant value opportunities & integrated US business domestically and globally Near term focus Domestic orders ▪ Finalise HighCom acquisition ▪ Sales of XTclaveTM manufactured ▪ Integrate existing HighCom products in Australia ballistic p
Slide 15: Actionable intelligence
ACTIONABLE INTELLIGENCE
Slide 16: Strategy focused on value added solutions
STRATEGY FOCUSED ON VALUE ADDED SOLUTIONS Commercialisation strategy builds upon XTEK’s capability to provide a complete system for a comprehensive real time actionable solution, such as XTatlasTM software interfaced to existing SUAS Key strategic pillars in place for XTEK to commercialise the XTatl
Slide 17: SUAS channels to market
SUAS CHANNELS TO MARKET XTEK has strong networks and broad access to SUAS customer channels ▪ Completed first delivery of WASP AV SUAS products to the ADF, with potential to expand beyond existing supply contract ▪ Ongoing repair & maintenance support services contracts with the ADF expected to impr
Slide 18: XTatlas is a world class offering
XTatlasTM IS A WORLD CLASS OFFERING XTatlasTM is a market leading software application that provides real time intelligence ▪ Application allows for the rapid production of real time, accurate, geo-referenced 3D mapping from video feed of a SUAS or ground robot and comparison with previous data ▪ Us
Slide 19: Growth and outlook
GROWTH AND OUTLOOK XTEK is currently in active discussions with interested global parties to leverage its market leading technology within related defence applications and other vertical opportunities Alternative applications for soldiers Significant opportunities in other verticals Robots (with SAR
Slide 20: Other solutions and ongoing R&D
OTHER SOLUTIONS AND ONGOING R&D
Slide 21: Other soldier solutions
OTHER SOLDIER SOLUTIONS XTEK supplies a range of other soldier solutions through its advanced composites technology and distribution agreements Lightweight systems Heckler & Koch (H&K) Other solutions and services ▪ XTclaveTM manufactured carbon ▪ XTEK is the exclusive reseller of ▪ Explosive Ordnan
Slide 22: Other product development and initiatives
OTHER PRODUCT DEVELOPMENT AND INITIATIVES XTclaveTM is a platform technology that enables advanced composite solutions with a range of applications Space satellite and launch Carbon products Significant market opportunity systems ▪ Leverages unique technical ▪ Uses XTEK’s patented advantages, includ
Slide 23: Financial performance and FY20 outlook
FINANCIAL PERFORMANCE AND FY20 OUTLOOK
Slide 24: FY19 financial highlights
FY19 FINANCIAL HIGHLIGHTS XTEK achieved record revenue, underpinned by the SUAS delivery and is well positioned for future growth Revenue (A$m) Gross Profit (A$m) EBITDA1,2 (A$m) +119% +45% +106% 37.9 6.9 0.5 4.7 17.3 3.5 0.2 9.0 0.1 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 XTEK remains well fun
Slide 25: Targeting enhanced gross margins
TARGETING ENHANCED GROSS MARGINS Future margins are expected to increase – underpinned by: ▪ Impact of HighCom revenue ▪ Sales of high value ballistic solutions ▪ Maintenance revenues from servicing SUAS FY19revenue mix Near term revenue mix Long termrevenue mix XTclaveTM and Ballistic products inco
Slide 26: FY20 outlook
FY20 OUTLOOK XTEK is well positioned to execute its operational strategy in FY20 and capitalise on growth opportunities Key Catalysts ❑ Complete HighCom acquisition (1Q FY20) ❑ Finalise integration of HighCom (2Q FY20) ❑ Complete and commence use of XTclaveTM manufacturing facility (2Q FY20) ❑ Achie
Slide 27: Key investment highlights
KEY INVESTMENT HIGHLIGHTS XTEK is well positioned for growth, underpinned by accelerated commercialisation of high value proprietary solutions and favourable market sentiment within the domestic and global defence industry Favourable Focused on market US acquisition Actionable Strong FY20 defence ma
Slide 28: Corporate overview
CORPORATE OVERVIEW Following the recent acquisition and capital raising, XTEK’s share price has increased >25% 1 Trading information LTM share price performance Share price (29 Aug 2019) A$0.58 Share price (A$) Volume (k) No of shares 48.7m 0.70 525 Market capitalisation A$28.3m Net cash2 A$5.3m 0.6
Slide 29: Disclaimer
This document is issued by XTEK Limited, ABN 90 103 629 107 (“XTEK”). It is intended only for those persons to whom it is delivered personally by or on behalf of XTEK (being 'wholesale clients' under the Corporations Act who are also sophisticated investors and persons to whom an offer of securities