Batm Advanced Communications Ltd. · LSE:BVC
Batm Advanced Communications — FY2023 Earnings Presentation
28 slides from Batm Advanced Communications's earnings presentation, March 2024
Slide 1: Full Year Results
FULL YEAR RESULTS March 2024 ©
Slide 2: Disclaimer
Disclaimer The information contained in this document has largely been extracted from the announcement of the Company’s full year results for the year ended 31 December 2023. The information contained in this document has not been independently verified and no representation or warranty, express or
Slide 3: Presentation Team
Presentation Team Moti Nagar Ran Noy C EO CFO ▪ CEO of BATM since January 2023 ▪ CFO of BATM since February 2023 ▪ Served as CFO since 2015 ▪ Served as VP Finance since 2021 ▪ Prior to BATM, held several ▪ 10 years’ experience at ADAMA senior positions at Deloitte, Ltd as Financial Reporting which h
Slide 4: Strategic Update
Strategic Update Moti Nagar, CEO 4 BATM FY 2023 Results
Slide 5: BATM's Strategic Vision
BATM’s Strategic Vision ▪ An in-depth three-month strategy process was undertaken with a As a global enterprise, BATM will leading consulting firm maximise its top assets while ▪ BATM’s current state, strategies, and relevant markets were providing high-quality solutions in comprehensively analysed
Slide 6: Renewed Strategic Focus
Renewed Strategic Focus Global enterprise with a ‘best of breed’ strategy Active role in Prioritising core business lines with Building managing greatest potential based on corporate businesses strategy lenses structure Networking (carrier ethernet Cyber Diagnostics and Edgility) 6 BATM FY 2023 Resu
Slide 7: Solid Progress Made with New Strategy Implementation
Solid Progress Made with New Strategy Implementation Core activities ▪ Reorganisation of core divisions completed ▪ Commenced building corporate management ▪ Resources have been allocated to build a global sales team ▪ Investment banks appointed in Israel and US to explore M&A Secondary activities ▪
Slide 8: Delivering Growth
Delivering Growth Revenue Adj. EBITDA* 140 10 9 120 8 100 7 6 $ million $ million 80 5 60 4 40 3 2 20 1 0 0 2022 2023 2022 2023 Secondary Networking Diagnostics Cyber Secondary Networking Diagnostics Cyber * Throughout this presentation, ‘adjusted’ is to exclude share-based (non-cash) payments and t
Slide 9: FY 2023 Highlights
FY 2023 Highlights Achieved growth in Commenced revenue and adj. EBITDA implementation of against challenging renewed strategy. macroeconomic Solid progress made backdrop and reduction in H2 2023 in demand for COVID-19 products Strong balance sheet with $40.8m in cash and short-term Outstanding Intr
Slide 10: Financial Review
Financial Review Ran Noy, CFO 10 BATM FY 2023 Results
Slide 11: Financial Highlights
Financial Highlights Revenue Gross Margin Operating Profit* $122.8m 32.5% $5.0m +6% -20bps +25% (2022: $116.1m) (2022: 32.7%) (2022: $4.0m) EBITDA* Cash From Operating Cash And Short-term Activities Investments** $9.3m +12% $5.0m $40.8m (31 Dec 2022: $44.2m) (2022: $8.3m) +279% (2022: $2.8m used in)
Slide 12: Networking
Networking Adjusted ($m) 2023 2022 31.2% Revenues 19.8 22.0 of total core business revenue Cost of sales 10.5 11.9 N E T W O R K IN G D I V I S I O N ( A D J . ) Gross profit 9.3 10.1 2022 2023 Gross margin 47.1% 45.9% 28.0 Operating expenses 8.4 10.6 23.0 22.0 EBITDA 1.7 0.4 19.8 18.0 US$ millions
Slide 13: Cyber
Cyber Adjusted ($m) 2023 2022 16.3% Revenues 10.3 5.9 of total core business revenue Cost of sales 6.1 3.5 Gross profit 4.2 2.4 CYBER DIVISION (ADJ.) Gross margin 40.8% 40.6% 12.0 2022 2023 Operating expenses 2.0 2.0 10.3 10.0 EBITDA 2.4 0.6 8.0 US$ millions 5.9 6.0 ▪ Substantial growth in revenue o
Slide 14: Diagnostics
Diagnostics Adjusted ($m) 2023 2022 52.5% Revenues 33.3 33.5 of total core business revenue Cost of sales 23.0 22.8 D I A G N O ST IC S D I V I S I O N ( A D J .) Gross profit 10.3 10.7 Gross margin 31.0% 31.9% 2022 2023 40.0 Operating expenses 9.1 9.0 35.0 33.5 33.3 EBITDA 3.0 3.3 30.0 US$ millions
Slide 15: Cash Management
Cash Management Cash and short-term investments in deposit and other securities ($m) 44.2 2.1 2.0 4.9 5.8 0.7 0.5 40.8 15 BATM FY 2023 Results
Slide 16: Business Review
Business Review Moti Nagar, CEO 16 BATM FY 2023 Results
Slide 17: Networking
Networking Sales impacted by global slowdown in telecommunications industry Edgility ▪ Highly innovative and agile solution ▪ Two five-year orders from NGA 991 LLC to support delivery of emergency call-handling system in the US ▪ Addresses the ▪ Rollout continued with CEMEX and CityFibre challenges
Slide 18: Cyber
Cyber Won multi-year orders totalling $32.4m from government defence customer ▪ Expect to continue to receive new orders in 2024 ▪ Leading encryption products with unique capabilities Sustained product development to accelerate growth ▪ Significant untapped growth opportunity ▪ Addressing quantum co
Slide 19: Diagnostics
Diagnostics Revenue growth of 21% when excluding COVID-19 contribution ▪ High-capacity ▪ In line with the new strategy, the Diagnostics division now comprises all of the Group’s facilities in Europe diagnostics instrument and reagent activities ▪ Existing registered licences ▪ Progressed development
Slide 20: Outlook
Outlook BATM entered 2024 with positive momentum in core activities, new focused strategy and strong balance sheet ▪ Ramping up process for strategic delivery to establish solid infrastructure for sustainable growth, including plans to: ▪ Build a strong global sales function ▪ Explore M&A and divest
Slide 21: Appendix
Appendix 21 BATM FY 2023 Results
Slide 22: Strategic Growth Plan Process
Strategic Growth Plan Process ▪ An in-depth three-month strategy process was undertaken with a leading consulting firm ▪ BATM’s current state, strategies, and relevant markets were comprehensively analysed ▪ Strategic principles were established in line with BATM’s identity, business needs, and path
Slide 23: Strategic Lenses
Strategic Lenses Growth potential What is the growth potential for this part of the business? i al ent Inn ot va Gro wth P o tio n Innovation Does this initiative align with BATM’s innovative identity? Bra on Commercialisation n ati What is the timeline and feasibility of commercialisation? mmercial
Slide 24: FY 2023 Profit and Loss
FY 2023 Profit and Loss FY 2023 FY 2022 ($000’s) Adjusted* Reported Adjusted* Reported Revenues 122,830 122,830 116,123 116,123 Gross profit 40,457 39,890 38,373 37,958 Operating expenses Sales and marketing expenses - 19,130 - 17,209 General and administrative expenses - 15,126 - 13,018 Research an
Slide 25: Adjustments
Adjustments ($000’s) Reported results Adjustments* Adjusted results Year ended 31 December 2023 Gross profit 39,890 568 40,457 Gross margin (%) 32.5% - 32.9% Operating profit 1,648 3,313 4,961 EBITDA 6,824 2,518 9,342 Year ended 31 December 2022 Gross profit 37,958 414 38,372 Gross margin (%) 32.7%
Slide 26: FY 2023 Cash Flow
FY 2023 Cash Flow FY 2023 FY 2022 ($000’s) Net cash from (used in) operating activities 5,009 (2,784) Net cash used in investing activities (6,120) (16,342) Net cash used in financing activities (2,160) (7,050) Net decrease in cash and cash equivalents (3,271) (26,176) Cash and cash equivalents at t
Slide 27: FY 2023 Balance Sheet
FY 2023 Balance Sheet 31 December 2023 30 June 2023 31 December 2022 ($000’s) Cash and short-term investments* 40,764 41,891 44,167 Total assets 174,627 174,550 175,181 Total liabilities 55,191 58,430 61,180 Net assets 119,436 116,120 114,001 * Short-term investments includes investments in deposits
Slide 28: Thank You
THANK YOU www.BATM.com 28 BATM FY 2023 Results
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