Sdi Limited · ASX:SDI
Sdi — Investor Presentation (August 2019)
20 slides from Sdi's investor presentation, Aug 23, 2019
Slide 1: FY19 Results Presentation
FY19 RESULTS PRESENTATION Samantha Cheetham CEO John Slaviero CFO / COO
Slide 2: Your Smile. Our Vision.
Your Smile. Our Vision. Long successful operating SDI conducts research and SDI sells to 100+ countries history – founded in 1972 development of specialist on all continents and with and listed on ASX in 1985 dentist materials sales teams and distribution and Australia’s largest undertaking the in A
Slide 3: Agenda
AGENDA • FY19 highlights • Product categories • Key geographies • Financial performance • Strategy and outlook
Slide 4: FY19 Highlights
FY19 Highlights Sales v EBITDA ($m) • Total sales up • Aesthetic sales (42.7% 90 79.6 18 6.8% to $79.6m of sales) up 11.6% in 80 74.1 74.1 74.5 16 local currency 68.7 • Gross margins 70 65.3 15.4 14 up 2.3% to • Strong cash generation 60 12.4 14.2 12 62.6%, due to and no net debt 50 12.3 12.1 10 the
Slide 5: Strong Free Cashflow And No Debt
STRONG FREE CASHFLOW AND NO DEBT • Strong financial • Free cash to invest in position enables the business, new continued to machinery and product grow in the development. business 5
Slide 6: Product Categories
PRODUCT CATEGORIES SDI
Slide 7: Research & Development / Product Mix
Research & Development / Product Mix • Continue to invest in • 70% of Intangibles Research and are Aesthetics Development with products, including $2.6m spent in Glass Ionomers and FY19 Composites • Aesthetics and whitening products now represent 70% of all sales 7
Slide 8: Aesthetics Growth Ahead Of Market
AESTHETICS GROWTH AHEAD OF MARKET • Aesthetics sales • Amalgam sales, Product Category Sales Growth in Local Currency Growth in AUD % of Total AUD Sales performed strongly, declined 10.1% in Aesthetics 11.6% 16.3% 42.7% up 11.6% in local local currency, Whitening 3.2% 7.6% 26.9% currency continuing
Slide 9: Key Geographies
KEY GEOGRAPHIES SDI
Slide 10: Sales by business unit and product
Sales by business unit and product • The Australian • European sales Business Units % Growth in Local Currency % Growth in AUD % of AUD Sales business sales grew fell 3.5% impacted Australia* 12.1 17.1 38,4 by 12.1in local by a 22.1% decline currency, with direct North America (1.5) 6.3 24.1 in Amal
Slide 11: Geographical Sales FY19 (AUD)
GEOGRAPHICAL SALES FY19 (AUD) Sales by geographical location A$ (m) North America Europe 30 $19.2m: +6.3% $27.6m: (1.3)% 25 20 15 Middle East / Africa 10 $8.7m: +35.5% 5 South America 0 APAC Middle East / North America South America Europe $9.4m: +1.6% Africa APAC FY19 FY18 $14.7m: +13.8%
Slide 12: Financial Performance
FINANCIAL PERFORMANCE
Slide 13: Profit & Loss
Profit & Loss Profit & Loss ($'000) FY19 FY18 Change Sales: Revenue •F/X adj increased by 2.5% Sales revenue 79,598 74,535 6.8% Cost of goods sold (29,805) (28,966) 2.9% Gross Profit: Gross profit 49,793 45,569 9.3% •F/X adj 61.1% Gross margin 62.6% 61.1% S&A Exp: increased $3.7m, incl: Expenses •Ad
Slide 14: Balance Sheet
Balance Sheet Balance sheet ($'000) FY19 FY18 Change Cash Assets •Debt reduction $2.2m Cash and cash equivalents Balance sheet ($'000) FY18 6,481 FY17 8,246 Change (21.4%) •Inventory increase $2.7m Assets Trade and other receivables 18,596 16,225 14.6% •P &E increase $1.3m Inventories Cash and cash
Slide 15: Cash Flow
Cash Flow Cashflow statement ($'000) FY19 FY18 Change • Increase in sales Receipts from customers 77,399 74,000 4.6% Payments to suppliers and employees (64,905) (60,264) 7.7% • Increase in inventories & operating expenses Other revenue 58 36 61.1% Interest and other finance costs paid (37) (163) (7
Slide 16: Strategy & Outlook
STRATEGY & OUTLOOK
Slide 17: Rebranding / Promotional Investments
REBRANDING / PROMOTIONAL INVESTMENTS Sales and Marketing International Dental Show (IDS) •Increased global salesforce •Strategic corporate re- • World’s largest dental exhibition held biennially branding positioning SDI as an innovator • Global meeting point for the dental industry •Investment in ke
Slide 18: Strategy & Outlook
STRATEGY & OUTLOOK Strategic priorities/progress: FY20 Plans: Rationalise product portfolio • Complete rationalisation of product portfolio • Plans to reduce the number of SKUs by 30% on track • Brazil manufacturing starting September 2019 Focus on key product categories – whitening, glass ionomer
Slide 19: Questions
QUESTIONS
Slide 20: Disclaimer
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 ANNOUNCEMENTS LODGED