Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Investor Presentation (August 2018)
33 slides from Advanced Braking Technology's investor presentation, Aug 7, 2018
Slide 1: Advanced Braking Technology – Accelerated Entitlement Offer
ADVANCED BRAKING TECHNOLOGY ACCELERATED ENTITLEMENT OFFER AUGUST 2018 1
Slide 2: Disclaimer
DISCLAIMER This presentation is prepared by Advanced Braking Technology Limited (ABN 66 099 107 623) (ABT, the Company or the Issuer) to provide summary information about ABT. ABT is an Australian public company listed on the Australian Securities Exchange (ASX). Statements in this presentation are
Slide 3: Company Overview
COMPANY OVERVIEW Advanced Braking Technology Ltd (ABT), listed on the ASX (ASX:ABV), develops and distributes high performance, sealed brakes to the automotive, ASX Code ABV transport, and mining industries. Share Price A$0.003 The company’s founding product is the ABT Failsafe brake, which uses the
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS NEW PRODUCT TO DRIVE GROWTH STRONG REVENUES – SET FOR GROWTH ABT launched their mass market product, the Terra Verging on break-even, the Company is underpinned by Dura ® polymer encased brake, in January 2018. ~A$8.0m in revenue (FY18 unaudited_ ). ABT’s pipeline has Strong in
Slide 5: Key Products
KEY PRODUCTS Exceedingly durable 4WD brake Maximum safety 4WD brake Fully enclosed design protects brake Fully enclosed design equipped with components failsafe technology Designed specifically for tough and rugged Exceptional reliability and durability environments (mining, construction
Slide 6: Our Valued Customers
OUR VALUED CUSTOMERS 6 August 2018 All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com
Slide 7: Accelerated Entitlement Offer
ACCELERATED ENTITLEMENT OFFER 7
Slide 8: Accelerated Entitlement Offer
ACCELERATED ENTITLEMENT OFFER One (1) for three (3) pro-rata, accelerated non- The Offer renounceable entitlement offer Issue Price $0.002 (0.2 cents) Shares subscribed for under the Institutional component of the 219,720,665 Entitlement offer Shares to be Issued under the Retail Entitlement compone
Slide 9: Accelerated Rights Issue Timetable
ACCELERATED RIGHTS ISSUE TIMETABLE Announcement of Entitlement Offer, Appendix 3B, Cleansing Notice Pre market Open – Thursday 2 August 2018 Institutional Offer Thursday 2 August 2018 Suspension Monday 6 August 2018 Pre open – Tuesday 7 August Announcement of results of Institutional Offer 2018 Norm
Slide 10: Use of Funds
USE OF FUNDS Phase 1: Australia: Roll-out Terra Dura Domestic blue-chip customers and capitalising on successful D_ -Max trial Enter Europe via an Isuzu distributor Phase 2: Significant expansion in Canada Continued application development and entry of large global markets Enter Chile's vast mining
Slide 11: Use of Funds – Phase 1 Australia Roll-out Terra Dura
USE OF FUNDS – PHASE 1 AUSTRALIA ROLL-OUT TERRA DURA Strive to multiply the Australian revenue over a four-year period Terra Dura® expands addressable market from 50 underground to >200 open cut Market mines $40m+ market opportunity Terra Dura - LandCruiser 70 is most common Australian minin
Slide 12: Use of Funds – Phase 1 Enter Europe
USE OF FUNDS – PHASE 1 ENTER EUROPE Significant opportunity across Europe for Isuzu D-Max application Finalise relationship with Northern Europe distributor Market Additional European Distributor has interests and opportunities in Germany and Eastern Europe ABT believes this is a A$60m+ mark
Slide 13: Use of Funds – Phase 2 Expansion Canada
USE OF FUNDS – PHASE 2 EXPANSION CANADA Immense revenue potential given both the size of the Canadian mining market and Market the volumes underpinning the North American Light Duty Vehicles A$60m+ market opportunity Products Terra Dura application for a selected range of North American Light
Slide 14: Use of Funds – Phase 2 Enter Chile
USE OF FUNDS – PHASE 2 ENTER CHILE Significant opportunities across the vast Chilean mining market Market Access a few dozen mining operations with fleets sizes of 200 – 2000 vehicles $40m+ market opportunity Terra Dura – Mitsubishi Triton Products Failsafe and Emergency Failsafe opportuni
Slide 15: ABT Transformation
ABT TRANSFORMATION 15
Slide 16: ABT Transformation FY18 – FY22
ABT TRANSFORMATION FY18 – FY22 ABT has developed a robust growth strategy, founded on systematic product & vehicle application development and regional expansion via strategic partners ABT Failsafe ABT Failsafe & Terra Dura + + Australia, Europe, Canada Australia & Chile = = $20m Market (Mining) $20
Slide 17: ABT Transformation FY18 – FY22 Revenue Mix
ABT TRANSFORMATION FY18 – FY22 REVENUE – REGION REVENUE – PRODUCT REVENUE – TD APPS 0% 30% 40% FY18 86% 70% 5% 100% Aust Global Failsafe Terra Dura Spares & Consumables LandCruiser 12.5% 13% 10% 35% 27% 10% FY22 19% 65% 14% 17% 65% 13% Failsafe Terra Dura Aust Global LandCruiser Dmax HiLux F/S Emerg
Slide 18: Growth Pathway
GROWTH PATHWAY Jan 2018 Oct 2018 June 2019 Launch of Terra Launch of Terra Launch of Terra Dura Toyota Dura Isuzu D-Max Dura Mitsubishi LandCruiser 70 Triton May 2018 Dec 2018 Mid 2020 Terra Dura trial orders First shipment Launch of first from numerous Blue to Isuzu Canadian truck Chip mining distr
Slide 19: Our Transformation and Vision
OUR TRANSFORMATION AND VISION IP BACKED PRODUCTS FOR GLOBAL APPLICATIONS From … To … A single product line Multiple product lines Niche market (underground mining) Mass market (harsh environments) An order taker Innovative solution provider A domestic focus A global leader Highly scalable, internati
Slide 20: Market Opportunities Mining & Beyond
MARKET OPPORTUNITIES MINING & BEYOND 20
Slide 21: Market Opportunities Mining & Beyond
MARKET OPPORTUNITIES MINING & BEYOND UNDERGROUND MINES TERRA DURA® FORESTRY SURFACE MINES IMMEDIATE MARKET OPPORTUNITY 100,000+ BRAKES PER ANNUM = A$550m+ AGRICULTURE CONSTRUCTION 21 August 2018 All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com
Slide 22: Board and Management
BOARD AND MANAGEMENT PETER HILDEBRANDT DAGMAR PARSONS GRAHAM ATKINSON Chief Executive Officer Non-Executive Chairman Chief Financial Officer Expansive international Dagmar has more than 25 Fellow Certified Practicing management experience in years’ experience in the mining Accountant with forty year
Slide 23: Investment Highlights
INVESTMENT HIGHLIGHTS SCALABLE SUPPLY CHAIN STRENGTHENED DISTRIBUTION STRONG IP PARTNERSHIPS PROGRESSING VALUATION: UPSIDE GLOBAL POTENTIAL 23 August 2018 All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com
Slide 24: Appendix
APPENDIX 24
Slide 25: ABT Failsafe
ABT FAILSAFE Integrated failsafe braking system – THE SAFETY brake applied when: door opened, ignition off, seatbelt off, emergency SOLUTION CAPABILITIES button activated Fully enclosed wet brake Regulation mandates “ FAILSAFE” capabilities for vehicles used in SELLING POINT underground mines (AUS,
Slide 26: Terra Dura
TERRA DURA THE GROWTH Polymer encased, fully sealed, dry CAPABILITIES brake DRIVER “Plug and Play” installation Encased brake protects components, enhancing durability, significantly SELLING POINT reducing maintenance costs Reduced risk of brake failure IMMEDIATE Surface mines, Underground mines, TA
Slide 27: Terra Dura Competitive Advantages
TERRA DURA COMPETITIVE SAFETY LESS DOWNTIME Top braking performance Removes the need for ADVANTAGES remains completely frequent servicing to unaffected by water, replace worn or mud, or contaminants. damaged brake parts. LOWER COSTS RUNNING ENVIRONMENTALLY FRIENDLY Labour and part Fully encl
Slide 28: Terra Dura Test Results
TERRA DURA TEST RESULTS ROUGH ROAD TESTING DUST INGRESS TESTING • Loops of gravel road with mud and water holes • Test (IP6x standard) to determine product seal • In total, over 6,000 km of both rough road and quality normal road use RESULTS • Reached high speeds of up to 100km/h • No dust ingress,
Slide 29: Terra Dura Pay Back
TERRA DURA PAY BACK • Terra Dura® can save A$40,000+ over 5 years, per vehicle = Standard Rear Brake - Labour • Payback in as little as 3 months KEY = Standard Rear Brake - Parts = Terra Dura® Brake TOTAL ACCUMULATIVE COST OF OWNERSHIP PER $80,000 VEHICLE (PURCHASE, PARTS & LABOUR) $70,000 $60,000 $
Slide 30: Trends and Opportunities Terra Dura
TRENDS AND OPPORTUNITIES TERRA DURA MINING APPLICATIONS The mining industry is experiencing a strong resurgence, with Vehicle sales in Australia hitting record commodity prices increasing and companies increasing their spend highs. Terra Dura® will initially supply for: globally. These tailwinds sup
Slide 31: Our Focus
SUPPLY CHAIN Increase production OUR FOCUS Establish an Enhanced Fulfillment Process = volumes at strong margins The company has achieved targeted production run rates DISTRIBUTION Broad roll-out of Terra for first Terra Dura® applications and prepares to fulfill a significant expansion into interna
Slide 32: Business Model Lean and Scalable
BUSINESS MODEL LEAN AND SCALABLE OUTSOURCED MANUFACTURING ABT FOCUSES ON: DISTRIBUTORS Manufacturer(s) assemble and Direct sales 18+ distributors globally ship direct to end customer or Partner relations to drive international distributor Research & Development growth ABT holds minimal i
Slide 33: Global Distributors
GLOBAL DISTRIBUTORS ABT is well-positioned to take innovative solutions to market and capture additional business development opportunities globally with: ➔ 18+ distributors across key global markets. ➔ Additional distributors to be engaged to enhance market penetration. 33 August 2018 All Rights Re
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