Cleanspace Holdings Ltd. · ASX:CSX
Cleanspace — FY2023 Earnings Presentation
16 slides from Cleanspace's earnings presentation, Aug 29, 2023
Slide 1: Full Year FY23 Results Presentation
FULL YEAR FY23 RESULTS PRESENTATION CLEANSPACE HOLDINGS LIMITED (ASX:CSX) CleanSpace designs and manufactures innovative respiratory protection solutions for industrial & healthcare workers globally We understand the importance of best-in-class personal protective equipment that not only performs, b
Slide 2: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER ACCEPTANCE differ from the figures set out in this presentation. This presentation has been prepared by CleanSpace Holdings Limited (ACN 150 214 636) (CleanSpace). PAST PERFORMANCE By accepting, accessing or reviewing this presentation, you acknowledge and agree to the
Slide 3: Key Points
KEY POINTS STRATEGIC OBJECTIVES RESET ▪ Focus on industrial sectors ▪ Healthcare targeted opportunities ▪ 6 Priority growth countries ▪ Right size the cost base ▪ New leadership team in place ENCOURAGING RESULTS ALREADY ▪ Q4 Revenue growth +31% v PCP ▪ First 8 weeks of FY24 Revenue growth >30% v PCP
Slide 4: Key Points: FY24 Objectives
KEY POINTS FY24 OBJECTIVES ▪ Potential for 30%+ revenue growth ▪ Gross Margin favourable v FY23 ▪ Build recurring revenue streams ▪ Ongoing cost base optimisation ▪ Cashflow break even in some months ▪ Do not expect to raise capital in order to fund current operations CleanSpace’s business has been
Slide 5: Overview – 2023 Full Year
OVERVIEW – 2023 FULL YEAR KEY HIGHLIGHTS ▪ Industrial sales +41% v PCP ▪ Healthcare sales significantly down v PCP ▪ Gross margin high at 70% ▪ Cost reduction program delivering annualised savings of ~$8m LEADERSHIP ▪ Appointment of Graham McLean as permanent CEO in March 2023 ▪ Promotion of Bree Gr
Slide 6: Overview – 2023 Full Year: Financial Results
OVERVIEW – 2023 FULL YEAR FINANCIAL RESULTS Revenue ▪ Year: $12.1m (-9% on PCP) ▪ H2: $6.4m (+1% on PCP)(+11% v H1) ▪ Q4: +31% (v PCP) Operating Expenses ▪ Year $18.9m (-20% v PCP) ▪ H2 $8.6m (-25% v PCP) Operating EBITDA loss ▪ Year -$10.8m (+$3.3m v PCP) ▪ H2 -$4.3m (+$3.0m v PCP) Cash in Bank at
Slide 7: FY23 Full Year Results Summary
FY23 FULL YEAR RESULTS SUMMARY Regional Sales: ▪ Europe up 28% INDUSTRIAL REVENUE GROWTH ▪ North America up 10% ▪ Asia sales down 53%, driven by declining healthcare 41 % UP ON PCP 70% GROSS MARGIN ▪ 4 countries 79% of sales (US, France, UK, Australia) ▪ Europe 59% of sales 2 48% CONSUMABLES / ACCES
Slide 8: Strategy Update
STRATEGY UPDATE STRATEGY RESET As the post pandemic environment becomes clearer, we have reset our strategy. We will drive sustainable growth with strong foundations and a fitter, leaner organisation by: 1. Core focus in industrial and mining sectors, which we know very well 2. Realign resources fro
Slide 9: In FY23 we have:
In FY23 we have: ▪ Launched 2 new products: • Significant technology improvement – battery, filter, lower weight • Bluetooth connectivity with CleanSpace Smart App • CleanSpace Smart Insights reporting & monitoring solutions • No other PAPR* provides these solutions ▪ Increased pricing on the new pr
Slide 10: Operational Update – Commercial Progress
OPERATIONAL UPDATE – COMMERCIAL PROGRESS ▪ The launch of 2 new products caused soft sales in Q3 as distributors ran down inventory of old products ▪ Sales in Q4 recovered strongly with growth of 31% v PCP ▪ Development of key account relationships with recurring revenue models in place ▪ Healthcare
Slide 11: Operational Update – Costs & Cash
OPERATIONAL UPDATE – COSTS & CASH ▪ Cost and Cash Management Initiatives have right sized the business to reflect our current sales patterns ▪ Annual costs 20% lower than PCP (-25% in H2) with annualised savings of ~$8m implemented in FY23 KEY INITIATIVES ▪ Headcount reduction of 45% since July 1 20
Slide 12: Outlook
OUTLOOK CleanSpace is committed to technology leadership to drive sales growth and financial performance as it provides ‘best in class’ premium respiratory protection for workers in high-risk settings. Our Growth Drivers: ✓ Innovative new premium products ✓ Focus on Industrial sectors ✓ 6 Priority c
Slide 13: CleanSpace Holdings Limited | FY23 Results Presentation | August 2023
CleanSpace Holdings Limited | FY23 Results Presentation | August 2023
Slide 14: FY23 Income Statement Summary
FY23 INCOME STATEMENT SUMMARY Change (A$m) vs PCP F / U H1 FY23 H2 FY23 FY23 H1 FY22 H2 FY22 FY22 % Revenue 5.7 6.4 12.1 7.0 6.4 13.4 9U ▪ Revenue down 9% over the year. H2FY23 up 11% on H1 FY23 and up 1% on H2 FY22 Gross Profit 4.0 4.4 8.4 5.3 4.5 9.8 14 U ▪ Retained high gross margin (70% for full
Slide 15: FY23 Summary Balance Sheet & Cash Flows
FY23 SUMMARY BALANCE SHEET & CASH FLOWS as at as at Summary Balance Sheet (A$m) Summary Cash Flows (A$m) 1H FY23 2H FY23 FY23 FY22 30 Jun-23 30 Jun-22 Cash, cash equivalents and term deposits 12.2 24.3 Operating cash flows pre-financing and (7.6) (4.3) (11.9) (12.9) 3.4 2.5 tax Trade and other recei
Slide 16: www.cleanspacetechnology.com
WWW.CLEANSPACETECHNOLOGY.COM 16 CleanSpace Holdings Limited | FY23 Results Presentation | August 2023