Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Investor Presentation (November 2017)
32 slides from Advanced Braking Technology's investor presentation, Nov 23, 2017
Slide 1: Investor Presentation November 2017
ABI Advanced Braking Technology ly | ADVANCED BRAKING TECHNOLOGY INVESTOR PRESENTATION NOVEMBER 2017 For persona
Slide 2: Important notice and disclaimer
For personal use only This presentation is prepared by Advanced Braking Technology Limited (ABN 66 099 107 623) (ABT, the Company or the Issuer) to provide summary information about ABT. ABT is an Australian public company listed on the Australian Securities Exchange (ASX). Statements in this presen
Slide 3: Company overview
For personal use only Advanced Braking Technology Ltd (ABT) is an ASX Code ABV Australian company listed on the Australian Share Price (21.11.2017) $0.005 Securities Exchange (ASX: ABV) that develops and distributes high performance sealed brakes to the Market Cap A$11M automotive, transport and min
Slide 4: Investment highlights
For personal use only Operating in a multi-billion dollar industry • with potential for significant success Generating revenue of $7.7m in FY17, through licensing deals to meet rising • up 43% on the previous year. Strong international and domestic demand. growth trend to continue in FY18. • • Used
Slide 5: Company and team
For personal use only November 2017 ABT/CEO All Rights Reserved © www.advancedbraking.com | www.terradura brakes.com 5
Slide 6: Company functions
For personal use only • Research & Development • Application Engineering • Customer & Partner Relations • Opportunity Development November 2017 ABT/CEO All Rights Reserved © www.advancedbraking.com | www.terradura brakes.com 6
Slide 7: Board of directors
For personal use only Chairman Non-Executive Director Non-Executive Director Non-Executive Director Managing Director of Founding Managing A lawyer by profession, A corporate advisor with Advanced Manufacturing Director of Karara Capital Adam has over 20 years more than 15 years of CRC Limited until
Slide 8: Management team
For personal use only Chief Executive Officer Chief Financial Officer GM Engineering Head of Sales Supply Chain Manager Expansive international Fellow Certified Practicing Considerable experience of Strong manufacturing Certified Supply Chain management experience in Accountant with forty years new
Slide 9: For personal use only
For personal use only
Slide 10: The problem with OEM brakes
For personal use only • Global focus on occupational health and safety • OEM brakes are not suitable for harsh environments with increasing regulation • Exposure to abrasive elements rapidly deteriorates • Mine sites are inherently dangerous brake pads –7 days in extreme cases • Brake failure has se
Slide 11: Sealed Integrated Braking System (SIBS)
For personal use only • Award-winning, patented Sealed Integrated Braking System (SIBS®) • Advanced and refined by ABT over 15 years • Technology provides a safer operating environment for vehicles from underground mining to high speed on the open road • Mandated for use in many underground mines •
Slide 12: Terra Dura polymer brake
For personal use only • New polymer encased, fully sealed, dry brakes for top braking performance • Lighter and more affordable than failsafe wet brakes. Half the weight and cost • Built to withstand high braking temperatures, mud, and water • Labour and part replacement savings of up to 70% can pay
Slide 13: Terra Dura benefits
For personal use only Top braking performance Removes the need for remains completely frequent servicing to unaffected by water, replace worn or mud or contaminants. damaged brake parts. Labour and part Even under extreme replacement savings can pay conditions Terra Dura back installation costs in a
Slide 14: Terra Dura field trial
For personal use only • Loops of gravel road with mud and water holes • In total, almost 6,000 km of both rough road and normal road use • OE front brake found with fully worn pads and failed hub seal • If left unchecked, this would have resulted in a costly rebuild of front axle • Terra Dura rear b
Slide 15: Terra Dura cost savings per vehicle
For personal use only • Terra Dura can save A$40,000+ over 5 years, per vehicle = Standard Rear Brake • Payback in as little as 3 months = Terra Dura Brake $60,000 (PURCHASE, PARTS & LABOUR) $50,000 $40,000 COST $30,000 $20,000 $10,000 $- 0 1 2 3 4 5 YEAR 15 November 2017 ABT/CEO All Rights Reserved
Slide 16: Business roadmap
For personelsuist only BUSINESS ROADMAP RN O—= Br
Slide 17: Growth strategy and timeline
For personal use only Partnership & Licensing Strategy Execute widespread ‘Harsh rollout environment’ Develop Current product applications for portfolio new markets * Mining only ** Addressable market: vehicles/applications 0-12 months 12-24 months >24 months November 2017 ABT/CEO All Rights Reserve
Slide 18: For personal use only
For personal use only
Slide 19: Strategies under new CEO
Establish an Enhanced Fulfillment Process = For personal use only = The company, under new CEO Peter Hildebrandt, has clear Deploy an Effective strategies in place to achieve Engagement Model targeted production run rates by early 2018 to fulfill a significant expansion into international markets. T
Slide 20: Market opportunity
For personal use only November 2017 ABT/CEO All Rights Reserved © www.advancedbraking.com | www.terradura brakes.com 20
Slide 21: Market tailwinds
For personal use only The mining industry is experiencing a strong resurgence, with Vehicle sales in Australia hitting new record commodity prices increasing and companies increasing their spend highs. Terra Dura® will initially supply for: globally. These tailwinds support a broad roll-out of Terra
Slide 22: Phases of growth
PHASE 2 EXECUTE AND BUILD OUT FUTURE PHASE 3 GLOBAL TRANSFORMATION
Slide 23: Target vehicle markets
For personal use only • Emergency Services • Trailers; Semi-trailers • Retail – Aftermarket • Trucks • Buses November 2017 ABT/CEO All Rights Reserved © www.advancedbraking.com | www.terradura brakes.com 23
Slide 24: Partnership and licensing
For personal use only • Potential to partner, Joint Venture and/or license technology to 3 rd party • Advantages of Partnerships/Licensing: • Utilise partners resources, expertise and distribution networks • ‘Clip the ticket’ revenues with no significant expenditure • ABT maintains focus on core bus
Slide 25: Business model
= a UuS@rOnlly _ a = / i \ BUSINESS ey ON
Slide 26: Supply and sales model
For personal use only • Manufacturer(s) assemble and • Direct sales • 18+ distributors globally to ship direct to end customer or • Partner relations drive international growth distributor • Research & Development • ABT holds minimal inventory • Opportunity development Direct Supply to Customer Dire
Slide 27: Global distributor network
ABT is well-positioned to take innovative solutions to market and capture additional business development opportunities globally with: For personal use only ▪ 18+ distributors across key global markets. ▪ Additional distributors to be engaged to enhance international market penetration. November 201
Slide 28: Export revenue and distributor growth
For personal use only ABT’s export revenue has increased ABT’s global distributor network • Enhance distributor engagement 66% in four years. Current has experienced strong growth and alignment international orders make up half of which is expected to continue over • Employ a professional Sales the
Slide 29: Financial outlook
For personal use only FY17 was a watershed year in ABT’s history, with strong growth in operating revenue and a financially positive last quarter. The company expects stronger trading conditions to remain throughout this financial year as a result of continuing, steady demand for the SIBS® products
Slide 30: Milestones for FY18
For personal use only We are progressing with the completion of the first phase of building our growth strategy towards the end of FY18. Our focus will then be on addressing enterprise strategy aspects and charting a growth path beyond current applications and markets. • Enhance supply chain functio
Slide 31: For personal use only
For personal use only November 2017 ABT/CEO All Rights Reserved © www.advancedbraking.com | www.terradura brakes.com 31
Slide 32: Contact details
For personal use only www.advancedbraking.com www.terradurabrakes.com peter.hildebrandt@advancedbraking.com 32
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