Slide 1: FY24 Results Presentation
FY24 RESULTS PRESENTATION 27 August 2024 Samantha Cheetham CEO John Slaviero CFO/COO
Slide 2: Agenda
AGENDA Performance Highlights FY24 Financial Results Business Update Strategy and Outlook
Slide 3: FY24 Performance Highlights
FY24 PERFORMANCE HIGHLIGHTS Improved Margins and operational efficiencies deliver record 12-month profit Record revenue of $111.2m New site capacity to drive (+ 3.1% pcp) future sales 62.1% Gross Profit Margin European Registration (+530 bps) Secured Continued Investment in EBITDA $21.9m Research, D
Slide 4: Sales by Business Unit
SALES BY BUSINESS UNIT Business unit performance reflects good European growth and favorable currency movements SALES BY BUSINESS UNIT (AUD MILLIONS) BUSINESS UNIT % SALES $120 50% $107.9 $111.2 $110 8.8 40% $100 $95.2 9.1 38% 37% 40% 34% 35% $90 $81.6 7.3 34% $79.6 $80 5.4 36.9 41.3 33% 5.1 $67.4 3
Slide 5: Sales by Region
SALES BY REGION Strong demand for Aesthetic products in APAC and European Markets and favourable currency movements SALES BY REGION (AUD MILLIONS), % GROWTH PCP SALES BY REGION (AUD MILLIONS) $50 $45 Europe North America $42.9m, +7.9% $40 $24.7m, -3.7% $35 $30 Middle East & Africa $25 $11.3, -8.9% $
Slide 6: Sales by Product Category
SALES BY PRODUCT CATEGORY Strong Aesthetics performance continues to gain market share SALES BY CATEGORY (AUD millions) CATEGORY AS % SALES $120 $111.2 60% $110 $107.9 6.5 50% $95.1 6.5 46% 45% 47% $100 50% 45% 6.8 42% $90 31.0 $79.6 $81.6 31.3 $80 6.0 6.0 40% $67.3 29.8 32% 31% $70 29% 21.5 5.1 26.
Slide 7: Product Shift Driving Higher Margins
PRODUCT SHIFT DRIVING HIGHER MARGINS Aesthetics/Whitening/Equipment vs Amalgam ($m) $100 88.9 92.8 • Shift in Product mix towards higher margin products as well $90 79.8 as improved logistic costs. $80 69.1 $70 61.3 • SDI has transitioned away from Amalgam, with $60 51.9 55.1 54.1 49.5 Aesthetics/Wh
Slide 8: Financial Performance
FINANCIAL 4 PERFORMANCE Q
Slide 9: Revenue & Gross Margin
REVENUE & GROSS MARGIN Record revenue and gross profit margin with easing of logistic costs and product mix FY24 REVENUE ($m) AND GROSS PROFIT MARGIN • Record full year sales of $111.2, up 120% 3.1% pcp $120 $111.2 $107.9 • Gross Product Margin increased by 530 100% $100 basis points to 62.1% due to
Slide 10: EBITDA & EBITDA Margin
EBITDA & EBITDA MARGIN EBITDA increased 35.7% to $21.9 million, underpinned by gross margin improvement and cost control FY24 EBITDA ($m) AND EBITDA MARGIN (%) $22.5 21.9 50.0% • EBITDA growth of 35.7% from improved $21.0 gross product margin and well managed 45.0% $19.5 expenses. 40.0% $18.0 16.5 1
Slide 11: Cash Flow
CASH FLOW • Strong operating cash flow driven by improved product margins, well Year to date cash flow ($m AUD) FY24 FY23 managed debtor & expense control Net Operating Cash flow $14.3m $13.1m • Net investing cashflow reflects the FY23 purchase of the new site at Net Investing ($8.8m) ($33.4m) Montr
Slide 12: Business Update
BUSINESS UPDATE
Slide 13: Operational Update
OPERATIONAL UPDATE Milestone achievements underpin long term strategic plan • Upgrade to Montrose warehouse (investment of circa $3.0m) and warehousing relocation complete • Stela & Riva Cem Auto Mix progressing well, receiving great feedback from industry opinion leaders Composite Syringe Machine •
Slide 14: Securing of European Registration
SECURING OF EUROPEAN REGISTRATION EU MDR Certification • SDI have successfully secured its certification under the European Union’s Medical Device Regulation 2017/745 (MDR) as a manufacturer • SDI will be able to continue selling existing products into all European markets as planned • New Aesthetic
Slide 15: SDI – ESG Roadmap
SDI – ESG ROADMAP FY24 FY25 FY26-FY27 “Establishing” “Complying” “Enhancing” • Formalise the SDI ESG working • Review top suppliers on ESG • Review initiatives for emission group and its mandate. risks and incorporate into an reduction actions/strategies, updated Modern Slavery including how this re
Slide 16: Strategy & Outlook
STRATEGY & OUTLOOK
Slide 17: Project Montrose
PROJECT MONTROSE • New build expected to commence in the middle of 2025 Apr 2024 – Tree Removal Permit Obtained • Montrose manufacturing upgrade: Project cost $60m with expected ROI (PBT/Rev) +20% underpinned by margin improvement Aug / Sep 2024 – Planning Permit Stage • Land and buildings $45m Feb
Slide 18: Strategy & Outlook
STRATEGY & OUTLOOK o Aesthetics and Whitening products continue to be the focus for new product development o Achieve manufacturing and logistic efficiencies through new site to help achieve sales of +$200m o Investment in production automation o On-going investment in research and development • Rel
Slide 19: Q&A
Q&A
Slide 20: Appendices
APPENDICES \y.® g d rs
Slide 21: Awards
AWARDS Winner of the 2023 Victorian Governor Export awards, International Health (2 years in a row). National Export award winner of 2023, International Health.
Slide 22: Strategy
STRATEGY PRIORITY 1 High quality market leading products SDI will focus its sales, marketing and innovation efforts on its Riva, composites, cements and Pola brands. This targeted innovation will deliver incremental sales growth and act as a gateway to introduce clinicians to SDI’s full portfolio. P
Slide 23: Sales Analysis
SALES ANALYSIS Product Category ($m) FY20 FY21 FY22 FY23 FY24 Aesthetics 30.9 36.6 43.2 51.1 55.3 Whitening 18.1 26.5 29.8 31.3 31.0 Amalgam 13.2 12.5 15.3 19.0 18.4 Equipment 5.1 6.0 6.8 6.5 6.5 Region ($m) FY20 FY21 FY22 FY23 FY24 North America 14.6 20.4 22.1 25.6 24.7 South America 8.0 7.6 10.2 1
Slide 24: Profit and Loss
PROFIT AND LOSS Profit & Loss (#039;000) FY24 FY23 % Change Revenue Sales Revenue 111,206 107,855 3.1% Cost of goods sold -42,168 -46,588 -9.5% Gross Profit 69,038 61,267 12.7% Gross margin 62.1% 56.8% +530bps Other income (expense) -147 1,564 Expenses Selling & Administration -47,468 -47,583 - Researc
Slide 25: Cash Flow
CASH FLOW Profit & Loss (#039;000) FY24 FY23 Receipts from customers 111,938 109,049 Payments to suppliers & employees -93,810 -91,375 Other revenue 19 188 Interest & other finance costs paid -1,535 -1,064 Income tax paid -2,285 -3,735 Net cash from operating activities 14,327 13,063 Payments for prope
Slide 26: Balance Sheet
BALANCE SHEET Balance Sheet (#039;000) FY24 FY23 Assets Cash & cash equivalents 6,275 6,022 Trade & other receivables 21,045 21,124 Inventories 28,748 25,553 Property, plant & equipment 43,643 45,829 Right of use assets 1,631 1,432 Intangibles 30,564 27,318 Other Assets 8,755 6,031 Total Assets 140,661
Slide 27: Important Notice & Disclaimer
Important Notice & Disclaimer This Presentation contains summary information about SDI Limited (SDI) and its subsidiaries and their activities. The information in this Presentation does not purport to be complete. It should be read in conjunction with SDI’s other periodic and continuous disclosure a