Batm Advanced Communications Ltd. · LSE:BVC
Batm Advanced Communications — FY2022 Earnings Presentation
22 slides from Batm Advanced Communications's earnings presentation, March 2023
Slide 1: Full Year Results
FULL YEAR RESULTS March 2023 ©
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 2022. The information contained in this document and the accompanying form of presentation has not been independently verified and
Slide 3: Presentation Team
Presentation Team Moti Nagar Ran Noy CEO C FO ▪ 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: 2022 Highlights
2022 Highlights Solid performance in Key milestones Networking & Cyber achieved with signing and of multi-year contract Bio-Medical divisions – with CityFibre for 12.7% revenue growth deployment of Edgility when excluding and award of $26m contribution from cyber order in January exceptional COVID-1
Slide 5: Focus on Value Creation
Focus on Value Creation Bringing focus across our business Looking at where capital is to be allocated effectively to have highest long- Capital allocation term returns, based on size of market and our ability to differentiate and commercialise Exploring how shared Group resources, IP, expertise, ch
Slide 6: Financial Highlights
Financial Highlights 2022 2021 2022 2021 In $m Adjusted* Adjusted* Reported Reported Revenue 116.1 132.8 116.1 140.0 Revenue on a constant currency basis** 125.6 - - - Gross profit 38.4 50.2 38.0 51.1 Gross margin 33.0% 37.8% 32.7% 36.5% Operating profit 3.7 11.3 3.1 24.4 EBITDA 8.0 15.7 8.0 29.6 Pr
Slide 7: Underlying Growth
Underlying Growth Sustained growth excluding sales of COVID-19 products and NGSoft Revenues 180,000 160,000 140,000 US$ 120,000 In $m 2022 2021 100,000 80,000 2018 2019 2020 2021 2022 Revenues exc. NG+Covid Revenues Revenues 107.8 95.6 +12.7% Gross profit Gross profit 34.6 28.4 +21.7% 64,000 56,000
Slide 8: Networking & Cyber Division
Networking & Cyber Division Adjusted* ($m) 2022 2021 N ETWO R KIN G & C Y B ER D IVIS IO N * Revenues 27.9 20.7 2021 2022 27.9 Cost of sales 15.4 11.4 Gross profit 12.5 9.3 24.0 20.7 Gross margin 44.7% 45.0% 19.0 Operating expenses 13.4 15.0 14.0 12.5 Operating loss (0.9) (5.6) 9.3 9.0 * Adjusted to
Slide 9: Bio-Medical Division
Bio-Medical Division Adjusted* ($m) 2021 B I O - M ED I C A L D I VI S I O N 2022 112.0 112.0 97.5** Revenues 88.3 112.0 2021 2022 Revenues on constant currency basis** 97.5 - 62.0 40.9 28.7** Cost of sales 62.3 71.1 17.0 12.0 5.0** Gross profit 25.9 40.9 Gross margin 29.4% 36.5% -38.0 Revenue Gross
Slide 10: Cash Management
Cash Management Cash and short-term investments in deposit and other securities($m) 67.8 9.4 6.3 6.8 4.0 4.5 44.2 2.4 5.0 5.7 31.12.2021 Investment in Dividend paid & Tax on previous FX rates Other (inc. tax, Working Capital Profit from Proceeds from 31.12.2022 associates and Share Buyback years int
Slide 11: Business Review: Networking & Cyber Division
Business Review NETWORKING & CYBER DIVISION TELCO SYSTEMS CYBER 11 BATM FY 2022 Results
Slide 12: Networking & Cyber Division – Networking Unit
Networking & Cyber Division – Networking Unit Revenue increased by 20.5% in Networking Unit for ongoing operations Network Edge (Carrier Ethernet) ▪ Strong revenue growth from sales price and volume increases, despite ongoing supply chain challenges ▪ New orders received primarily from existing cust
Slide 13: Networking & Cyber Division – Cyber Unit
Networking & Cyber Division – Cyber Unit Revenue increased by 73.1% in the Cyber unit Cyber ▪ Substantial increase in revenue from high-value contracts won in the previous year ▪ Won $26m multi-year order from government defence customer post period – with more expected ▪ Working on product developm
Slide 14: Business Review: Bio-Medical Division
Business Review BIO-MEDICAL DIVISION DIAGNOSTICS ECO-MED DISTRIBUTION BATM FY 2022 Results 14
Slide 15: Bio-Medical Division
Bio-Medical Division DISTRIBUTION UNIT ▪ Delivered greater volume of regular business and increased sales prices – enabled good growth on constant currency basis ▪ Gained control of an associated company towards the end of the year ▪ Distribution activities expected to remain robust owing to regular
Slide 16: Bio-Medical Division contd.
Bio-Medical Division contd. ▪ Increase in revenue from molecular diagnostic products that are not COVID-19 related ▪ New molecular diagnostics test for multiple respiratory pathogens launched commercially ▪ Developed new diagnostics kits, such as for sepsis DIAGNOSTICS UNIT ▪ Established new collabo
Slide 17: Group Outlook
Group Outlook BATM entered 2023 with strong momentum across the business ▪ Double-digit revenue growth (%) expected in all units for 2023 ▪ Networking & Cyber division growth to be driven by Edgility ▪ Bio-Medical division is expected to remain the largest contributor to revenue ▪ Growth to be based
Slide 18: Thank You
THINK DIFFERENT THANK YOU www.BATM.com 18
Slide 19: Appendix
Appendix 19 BATM FY 2022 Results
Slide 20: FY 2022 Profit and Loss
FY 2022 Profit and Loss 2022 2021 ($000’s) % rev. % rev. Revenues 116,123 140,038 Gross profit 37,958 32.7 51,061 36.5 Operating expenses Sales and marketing expenses 17,209 14.8 18,290 13.1 General and administrative expenses 13,018 11.2 12,243 8.7 Research and development expenses 7,025 6.0 8,713
Slide 21: FY 2022 Balance Sheet
FY 2022 Balance Sheet 31 December 2022 30 June 2022 31 December 2021 ($000’s) Cash and short-term investment in deposits 44,167 47,364 67,763 and other securities Total assets 175,181 173,871 193,164 Total liabilities 61,180 56,411 69,030 Net assets 114,001 117,460 124,134 21 BATM FY 2022 Results
Slide 22: FY 2022 Cash Flow
FY 2022 Cash Flow 2022 2021 ($000’s) Net cash from (used in) operations (1,074) 8,672 Cash paid for tax and interests (1,710) (3,080) Net cash from (used in) investing activities (16,342) 15,069 Net cash used in financing activities (7,050) (4,937) Net increase (decrease) in cash and cash equivalent
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