Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Investor Presentation (April 2018)
29 slides from Advanced Braking Technology's investor presentation, Apr 16, 2018
Slide 1: Advanced Braking Technology
Q ABT ADVANCED BRAKING TECHNOLOGY
Slide 2: April 2018 ABT/CEO All Rights Reserved ©
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 made only a
Slide 3: Advanced Braking Technology Ltd (ABT), listed on the ASX Code ABV
Advanced Braking Technology Ltd (ABT), listed on the ASX Code ABV ASX (ASX:ABV) develops and distributes high Share Price (12.04.2018) $0.005 performance sealed brakes to the automotive, transport, and mining industries. Market Cap A$11m 12-Month High/Low* $0.008 - $0.005 The company’s founding prod
Slide 4: Operating in a multi-billion dollar industry with potential for significant success through licensing deals
Operating in a multi-billion dollar • industry with potential for significant Generated revenue of $7.7m in FY17, success through licensing deals to meet • up 43% on the previous year. Strong rising international and domestic growth trend continues in FY18. • demand. • Used by blue-chip customers fo
Slide 5: April 2018 ABT/CEO All Rights Reserved ©
April 2018 ABT/CEO All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com 5
Slide 6: April 2018 ABT/CEO All Rights Reserved ©
April 2018 ABT/CEO All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com 6
Slide 7: Management and board
Chief Executive Officer Non-Executive Chairman Chief Financial Officer Expansive international Managing Director of Advanced Fellow Certified Practicing management experience in Manufacturing CRC Limited until Accountant with forty years automotive and industrial April 2014. Bruce is a Non-Executive
Slide 8: Our Jaws: Safety
= OUR JA SAFETY
Slide 9: Global focus on occupational health and safety
▪ Global focus on occupational health and safety ▪ OEM brakes are not suitable for harsh environments with increasing regulation ▪ Exposure to abrasive elements rapidly deteriorates ▪ Mine sites are inherently dangerous brake pads –7 days in extreme cases ▪ Brake failure has serious consequences ▪ S
Slide 10: Award-winning, patented sealed integrated braking system
• Award-winning, patented sealed integrated braking system • Advanced and refined by ABT over 15 years • Technology provides a safer operating environment for vehicles from underground mining to high speed on the open road • Mandated for use in many underground mines • Global blue-chip customers • F
Slide 11: Terra Dura polymer encased sealed dry brakes
• New polymer encased, fully sealed, dry brakes for top braking performance • Lighter and more affordable than failsafe wet brakes. Half the weight and cost • Built to withstand high braking temperatures, mud and water • Labour and part replacement savings of up to 70% can pay back installation cost
Slide 12: Terra Dura benefits
Top braking performance Removes the need for remains completely frequent servicing to unaffected by water, replace worn or mud or contaminants. damaged brake parts. Labour and part Even under extreme replacement savings conditions Terra Dura can pay back brake pads can last up installation costs in
Slide 13: Rough Road Testing
Rough Road Testing • Loops of gravel road with mud and water holes • In total, over 6,000 km of both rough road and normal road use • Reached high speeds of up to 100km/h Factory Brake Results • Factory brake found with fully worn pads and failed hub seal • If left unchecked, this would have resulte
Slide 14: Terra Dura cost savings versus standard rear brake
® • Terra Dura® can save A$40,000+ over 5 years, per vehicle = Standard Rear Brake • Payback in as little as 3 months = Terra Dura® Brake $60,000 (PURCHASE, PARTS & LABOUR) $50,000 $40,000 COST $30,000 $20,000 $10,000 $- 0 1 2 3 4 5 YEAR 14 April 2018 ABT/CEO All Rights Reserved © www.advancedbrakin
Slide 15: Terra Dura Roll-Out
TERRA DURA® ROLL-OUT
Slide 16: Terra Dura roll-out priorities
Establish an Enhanced Fulfillment Process = = The company has achieved targeted production run rates Deploy an Effective ® for first Terra Dura® Engagement Model applications and prepares to fulfill a significant expansion into international markets on the basis of more products to follow. = ® Manag
Slide 17: April 2018 ABT/CEO All Rights Reserved ©
® April 2018 ABT/CEO All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com 17
Slide 18: Mining and infrastructure market tailwinds
The mining industry is experiencing a strong resurgence, with Vehicle sales in Australia hitting new record commodity prices increasing and companies increasing their spend highs. Terra Dura® will initially supply for: globally. These tailwinds support a broad roll-out of Terra Dura® into the surfac
Slide 19: Greater Growth Opportunities
GREATER GROWTH OPPORTUNITIES
Slide 20: Target vehicle markets
▪ Emergency Services ▪ Retail – Aftermarket ▪ Trucks ▪ Trailers ▪ Semi-trailers ▪ Buses April 2018 ABT/CEO All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com 20
Slide 21: Licensing and partner approach
▪ Utilise partners resources, expertise and distribution networks ▪ ‘Clip the ticket’ revenues with no significant expenditure ▪ ABT maintains focus on core business, whilst gaining access to markets once inaccessible ▪ Mining: Conveyor, Lifting ▪ Military ▪ Automation & Robotics ▪ Work Platforms an
Slide 22: Business Model
BUSINESS MODEL
Slide 23: Manufacturer assembly and shipping direct to customer or distributor
• Manufacturer(s) assemble and • Direct sales • 18+ distributors globally to ship direct to end customer or • Partner relations drive international growth distributor • Research & Development • ABT holds minimal inventory • Opportunity development Direct Supply to Customer Direct Sales / Orders Sale
Slide 24: Well-positioned to take solutions to market via 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 international market penetration. April 2018 ABT/CEO All Rights Rese
Slide 25: Export growth and global distributor network
ABT’s export revenue has increased ABT’s global distributor network • Enhance distributor engagement 66% in four years. Current has experienced strong growth and alignment international orders make up which is expected to continue over • Professional Sales Channel almost half of the overall intake.
Slide 26: FY17 watershed year and FY18 revenue outlook
FY17 was a watershed year in ABT’s history, with strong growth in operating revenue and a financially positive last quarter. The company expects stronger trading conditions to remain throughout this financial year as a result of continuing, steady demand for its Failsafe products and the roll-out of
Slide 27: Growth strategy and next phases
We are progressing with the completion of the first phase of building our growth strategy towards the end of FY18. Our focus will then be on addressing enterprise strategy aspects and charting a growth path beyond current applications and markets. • Enhance supply chain function • Additional sales c
Slide 28: April 2018 ABT/CEO All Rights Reserved ©
April 2018 ABT/CEO All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com 28
Slide 29: Contact details
www.advancedbraking.com www.terradurabrakes.com peter.hildebrandt@advancedbraking.com 29
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