Sdi Limited · ASX:SDI
Sdi — Investor Presentation (February 2019)
20 slides from Sdi's investor presentation, Feb 15, 2019
Slide 1: HY19 Results Presentation
HY19 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 • HY19 highlights • Product categories • Key geographies • Financial performance • Strategy and outlook 3
Slide 4: HY19 Highlights
HY19 HIGHLIGHTS • Record first half profit • Amalgam sales up EBITDA 18.0 Sales v EBITDA margin50.0 30.0 NPAT up 172% to 2.1% in local currency 16.0 $3.1m (up 5.1% in AUD) 9.3 14.0 25.0 20.9 45.0 18.5 • Record first half sales • Fully franked 7.0 12.0 20.0 14.4 10.7 17.3 up 10% to $37.1m dividends 7
Slide 5: Increased Returns and No Debt
INCREASED RETURNS AND NO DEBT • Net cash position with strong free cashflow Net Debt EPS & DPS • No Debt 8.0 6.4 6.4 4.7 5.5 5.2 4.7 4.8 • Increased interim dividend and 2.1 4.0 special dividend reflective of balance sheet strength and 2.6 0.0 2.3 2.5 -0.3 2.0 earnings confidence -1.7 1.4 2.2 0.5 0.
Slide 6: Product Categories
PRODUCT CATEGORIES SDI
Slide 7: Investing for the Future
INVESTING FOR THE FUTURE • Shifting industry • Aesthetics and R&D - Intangibles trends identified Whitening 26% 25% 31% more than 20 years account for 67% Amalgam Alternative $0.3 m 43% 40% 34% of all sales Whitening $1.0 m ago Equipment $1.4 m 8% 8% • Invested heavily in • Amalgam decline Intellect
Slide 8: Aesthetics Led Growth
AESTHETICS LED GROWTH • Aesthetics sales • Above market Product Growth in Growth in Total performed growth in Category Sales Local Currency AUD AUD Sales strongly, up 13.4% Aesthetics as SDI Aesthetics 13.4% 17.7% 42.5% in local currency glass ionomer and Equipment (0.5%) 1.3% 7.9% (up 17.7% in AUD)
Slide 9: Key Geographies
KEY 22) 2) GEOGRAPHIES
Slide 10: Sales by Business Unit
SALES BY BUSINESS UNIT • The Australian business • Brazilian sales were Sales by Growth in Growth in Total unit grew sales by 17.8% down due to the de- Business Units Local Currency AUD AUD Sales with direct exports to stocking of a major Australian Sales* 17.8% 21.7% 38.6% Middle East and Asia dist
Slide 11: Geographical Sales
GEOGRAPHICAL SALES Europe Sales by North America HY19 $12.8m geographical HY19 $8.8m +4.7% location A$(m) +7.5% Middle East/Africa HY18 HY19 12.8 12.2 HY19 $4.7m +56.0% 8.8 8.2 South America 7.0 6.1 HY19 $3.8m 4.7 4.1 3.8 3.0 -7.7% APAC HY19 $7.0m +14.5% Oceania Middle North South Europe & Asia East
Slide 12: Financial Performance
FINANCIAL PERFORMANCE 12
Slide 13: Profit & Loss
PROFIT & LOSS Profit & Loss ($'000) HY19 HY18 % Change Revenue • Gross product margins up 1.6% to 60.9% Sales Revenue 37,103 33,625 10% - Favourable product mix and currency, partly Cost of goods sold ‐14,495 ‐13,676 6% offset by increased sales to lower margin direct Gross Profit 22,608 19,949 13%
Slide 14: Balance Sheet
BALANCE SHEET Balance Sheet ($'000) HY19 FY 18 HY18 6 Months Balance sheet ($'000) FY18 FY17 Change Assets Movement Assets Cash and cash equivalents 8,246 5,754 43% Trade Cash andequivalents & cash other receivables 16,225 6,068 15,451 8,246 8,083 5% ‐26% Inventories Trade & other receivables 14,558
Slide 15: Cash Flow
CASH FLOW Cash Flow ($'000) HY19 HY18 • Strong free cash flow Receipts from customers 38,029 34,007 12% • Increased dividend payments Payments to suppliers & employees ‐32,792 ‐27,876 18% • Increased inventory investment to Other revenue 6 17 ‐65% better serve customers, reduce Interest & other fina
Slide 16: Strategy & Outlook
STRATEGY & OUTLOOK 16
Slide 17: Research, Innovation, Results
RESEARCH, INNOVATION, RESULTS o Two key new products to o 1 – 2 new products per o Riva star – focus on public be launched at the year to drive growth health programs to International Dental Show minimise adverse (IDS) – awaiting o Concentrating on restorative procedures regulatory approval categori
Slide 18: Strategy & Outlook
STRATEGY & OUTLOOK 4 Strategic priorities: • Several new products to be launched at the IDS in 1. Rationalise product Cologne next month portfolio 2. Focus on key product • Brazil manufacturing trials underway with start planned categories – whitening, for FY20 glass ionomers and composites • In FY1
Slide 19: Questions
QUESTIONS 19
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