Highcom Limited · ASX:HCL
Highcom — H1 FY25 Earnings Presentation
22 slides from Highcom's earnings presentation, Feb 28, 2025
Slide 1: Half Year Results Presentation
Half th Year Results Presentation 28 of February 2025 For personal use only
Slide 2: Important Information
Important Information This presentat ion is given on behalf of Hig hCo m Limit ed (HighCom) For personal use only In formation in this pre se ntat ion is for gen eral info rma tion pu rposes only, an d is no t an offer or invitation for subscription s, pu rcha se of re co mmen dat ion of securities
Slide 3: Agenda
Agenda • Re su lts an d ov ervi ew For personal use only • H1 FY25 financial performance • Review of HighCom Armor • Review of HighCom Technology • Strategic Priorities (short to medium term) • Conclusion • Q&A
Slide 4: Key Snapshot for H1 FY25
Key Snapshot for H1 FY25 • R ev en ue fo r H 1 FY 25 wa s $2 6.6 m (u p 7 8% o n pc p) wi th EB IT DA a t $ 1.9 m (H 1 FY 24 - ve $1 2. 2m ) For personal use only • Fo r the h alf en di ng 31 D ec em be r 2 02 4, Ne t O p era tin g Pr ofi t w as $ 1.2 m inc lu din g a r ev ers al of in ve nt ory im
Slide 5: State of Play - Update
State of Play - Update Iss ue Strategy Progress Need for greater • Com plete For personal use only visibility Cash management • H1 FY25 c ash pos itio n im proved during reporting period. On going cash m anagem ent close ly mo nitored durin g H2 FY25. Inventory reduction • The com pany rem ains focu
Slide 6: Corporate Snapshot
Corporate Snapshot Series2 Volume (m) Series1 Adj Close 0.60 8.00 For personal use only 7.00 0.50 6.00 Traded Volume (millions) 0.40 5.00 Share Price (A$) 0.30 4.00 3.00 0.20 2.00 0.10 1.00 0.00 0.00 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Ju
Slide 7: H1 FY25 Results – Key Highlights
H1 FY25 Results – Key Highlights Divisional Revenue Attribution (A$m) Revenue (A$m) $60.0 60% For personal use only $25.0 $20.9 $50.0 50% $20.0 $40.0 40% $15.0 $13.2 $30.0 30% $10.0 $20.0 20% $5.7 $5.0 $10.0 10% $1.8 $- $- 0% H1 FY24 H1 FY25 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2
Slide 8: H1 FY25 Results – Key Highlights (Cash Flow Waterfall)
H1 FY25 Results – Key Highlights Cash Flow Waterfall (A$m) For personal use only 2.3 -0.4 -0.1 -0.3 8.4 1.9 -1.2 6.2 HIGHCOM LTD | INVESTOR PRESENTATION 8
Slide 9: Group Overview
Group Overview Highcom Group is com prised of two distinct businesses – HighCom Armor & HighCom Technology For personal use only Hi gh Com Armo r Hi gh Com Technology Desig ns, ma n u fa ctu r es, a n d sup plie s glo ba l milita ry, la w Su pp lies Au str alia n De fe n ce a n d Se cu r ity Ag e nc
Slide 10: HighCom Armor – Overview
HighCom Armor – Overview For personal use only • Desig ns, ma nu fa ct ures , a nd supp lies wo rl d-class, a dv an ce d Bo dy Arm or, Ballist ic Hel me ts, Sh ie lds and Arm o r Panels & Platf orm Structures. • Key Cu st om ers : • Glo bal militaries • US law e nf orce me nt • Nation al secu rit y
Slide 11: HighCom Armor – Update
HighCom Armor – Update • Hi g h C o m Ar m o r s a l e s o f $ 2 0 . 9 m i n c lu d e d m o n t h l y For personal use only d o m e s t i c US ru n ra t e s a l e s a n d a l a rg e r $ 8 . 9 m o rd e r f ro m a m i l it ar y c u s t o m e r d e l i ve r e d d u ri n g H 1 F Y 2 5 . • At t h e e n d
Slide 12: HighCom Armor – XTclave Update
HighCom Armor – XtclaveTM Update • T h e re - c o m m i ss i o n i n g o f t h e XTc l a ve T M For personal use only p ro d u c t i o n s y st e m i n Co l u m b u s , O h i o re m a i n s o n s c h e d ul e f o r Q 2 CY 2 0 2 5 Picture of XTclave T M Recom missioning at US Facility • I n i t i a l
Slide 13: HighCom Armor – Inventory Management
HighCom Armor – Inventory Management Inventory Attribution (%) For personal use only H1FY25 47% 53% • T he co mp an y re mai ns f ocu sed o n red uci ng in ven to ry t oward s i ts lo ng er -t erm ta rge t of $ 10 m. H2FY24 45% 55% • As pa rt o f t his s trat eg y, High Com im pl eme nt ed H1FY24 48
Slide 14: HighCom Technology – Overview
HighCom Technology – Overview • C o- lo ca ted w ith C or po rat e H e adq ua rte rs in C an be rra , A CT, A u str ali a. • Fo cu se d on ma nu fa ctu rin g an d s up pl yin g Au str ali an D ep art me nt of D efe nc e an d Se cu rit y A ge nc ie s For personal use only w ith w orl d- le ad ing p r
Slide 15: HighCom Technology – Update
HighCom Technology – Update • Du r i n g t h e h a l f - y e a r p e ri o d e n d e d 3 1 D e c e mb e r 2 0 2 4 , t h e H ig h C o m Te c h no l o g y b u s i n e ss s u c c e ss f u l l y d e l iv e re d a va r i et y o f For personal use only e n g i n e e ri n g , m a i n t e n a n ce an d lo g
Slide 16: Strategy & FY25 Outlook
Strategy & FY25 Outlook only Maintain Strategy use REINFORCE SUCCESS SEEK ADJACENCIES CREATE OUR FUTURE Invest in the areas of our business Find new business opportunities that Invest in organic and inorganic that have been successful and have extend our reach and can draw on expansion opportunities
Slide 17: Industry Trends & Outlook
Industry Trends & Outlook • A h e i g h t e n e d g l o b a l t h re a t e n v i ro n m e n t h a s a n d wi l l c o n t i n u e t o d ri v e d e f e n c e s p e n d in g f o r b o t h For personal use only m i l it ar y a n d l a w e n f o rc e m e n t . Defence Budgets pre- and post-Ukraine (US$bn
Slide 18: Industry Trends & Outlook
Industry Trends & Outlook Plat es a nd mili tary accou nt fo r ~75% a nd ~60% of t he ad dre ssab le persona l a rm or ma rke t size by armo r and cus tom er t ype, resp ecti vely For personal use only By Arm our Type By Custom er Type ~ 2,410 ~15 Sh i el d s ~ 2,410 5-6 % gr owt h ~415 He l me ts ~
Slide 19: Conclusion
Conclusion • High Co m Lt d has dem onst ra te d a st ro ng fin ancia l reco very i n H1 FY25, ret urning t o p ro fit abili ty, dri ven by increas ed sale s, For personal use only cos t red uct ions , a nd inve nto ry ma nage men t init iat ives. • Hig h Com Armo r ex pe rie nc ed s t ro n g rev en
Slide 20: Appendix
For personal use only Appendix
Slide 21: Summary Income Statement
Summary Income Statement Summary Income Statement H1 FY24 H1 FY25 Change For personal use only Revenue A$m 14.9 26.6 78% Cost of Sales A$m (12.0) (19.8) 65% Gross Profit A$m 2.9 6.8 Gross Margin % 19% 26% 7pp Other Income A$m 0.2 0.9 Operating Costs A$m (15.4) (5.8) (62%) EBITDA A$m (12.3) 1.9 EBITD
Slide 22: Summary Financial Position
Summary Financial Position Summary Financial Position FY24 H1 FY25 Change For personal use only Cash A$m 6.2 8.4 2.2 Receivables A$m 3.6 4.6 1.0 Inventories A$m 17.8 15.6 (2.2) Other Current Assets A$m 0.7 1.2 0.5 Total Current Assets A$m 28.3 29.8 1.5 PP&E A$m 8.5 9.8 1.3 Other Non-current Assets A