Highcom Limited · ASX:HCL
Highcom — 9th Annual Australian Microcap Investment Conference (October 2018)
16 slides from Highcom's conference presentation, Oct 18, 2018
Slide 1: Release to the Australian Securities Exchange
Release to the Australian Securities Exchange XTEK presents at key investor conference Canberra – Thursday, 18 October 2018: XTEK Limited (ASX: XTE, ‘XTEK’, the ‘Company’) is pleased to advise that the Company’s Managing Director, Philippe Odouard provided an update on XTEK’s recent progress and out
Slide 2: Australian Microcap Investment Conference
Australian Microcap Investment Conference October 2018 ASX: XTE www.XTEK.net | 1800 500 032 | ABN 90 103 629 107
Slide 3: Key Investment benefit
Key Investment benefit Core distribution business profitable on its 1 traditional activities with multiple growth opportunities in the pipeline Significant upside potential in the near-term 2 with 2 new product lines being launched now Investor Presentation August 2018 2
Slide 4: Defence is THE investment theme
Defence is THE investment theme The golden age of defence investment in Australia Current annual Australian defence budget A$35bn increasing to >A$50bn Western world budget increasing consistently above inflation to 2% of GDP and above Government imposing high local content and Australian IP XTEK is
Slide 5: Key activities and product focus
Key activities and product focus XTEK is focused on being the supplier of choice for a range of products and support services to the defence, law enforcement and government sectors globally Ballistic Intelligence Small Additional products and and Unmanned defence related technology surveillance Aeri
Slide 6: Operational strategy
Operational strategy XTEK’s focus on commercialising proprietary products leverages existing strategic networks and relationships to deliver shareholder value XTclaveTM High margin proprietary products with XTatlasTM global opportunities in high growth sectors Financial stability secured with Global
Slide 7: XTclave – overview
XTclaveTM – overview XTclaveTM is a patented manufacturing technology that can produce the world’s lightest and strongest body armour Ballistic Armour Plates Helmet Shells Only composite helmet that can consistently stop Up to 30% lighter with equal performance AK-47 bullets at comparable weight to
Slide 8: XTclave – significant market opportunity
XTclaveTM – significant market opportunity Entry into the global body armour and personal protection market is estimated to be worth US$3.5bn p.a. by 2028 Body armour market worth ~US$3.5bn p.a. by Global Body 2028 (CAGR: 4.6%) Armour Market New XTclave™ production facility by H1 >US$30bn CY2019 cap
Slide 9: XTatlas – real-time situational awareness
XTatlasTM – real-time situational awareness First commercial sales to the ADF following finalisation of development and represents an exciting growth opportunity SUAS software application with real-time 3D imaging and video mapping Global Aerial Imagery Market Diverse uses including law enforcement,
Slide 10: Small Unmanned Aerial Systems – SUAS
Small Unmanned Aerial Systems – SUAS The ADF SUAS contract underpins ongoing distribution business and positions XTEK favourably for growth • In July 2017, XTEK secured a ~A$42m initial contract to deliver a range of AeroVironment WASP AE SUAS products to the ADF • XTEK has an exclusive partnership
Slide 11: M&A opportunities
M&A opportunities XTEK is well positioned to acquire small, profitable and innovative defence technology companies in Australia • Australian total defence expenditure forecast to grow to >A$50bn • Australian Government is currently tendering and executing on large strategic procurement packages – in
Slide 12: FY18 financial highlights
FY18 financial highlights FY18 was a transformational year in which XTEK delivered strong financial growth Revenue Gross Profit Operating cashflow A$17.3m A$4.7m A$1.8m FY17: A$9.0m FY17: A$3.5m FY17: (A$1.4m) 91% 35% +ve NPAT Contracted revenue1 Cash position A$139k A$38.0m A$5.9m FY17: A$61k FY17:
Slide 13: FY18 operational highlights
FY18 operational highlights Continued commercialisation of XTclaveTM and XTatlasTM during FY18, underpins XTEK’s laser-focus to grow shareholder value Signed A$50m of contracts during the year Achieved first (A$38m current contracted revenue) domestic and international orders for ballistic plates Si
Slide 14: Outlook
Outlook XTEK is well positioned to deliver further revenue growth in FY19 FY19 revenue guidance1 (A$m) Key catalysts High case’ forecasts Up to • Develop XTclaveTM production Contracted Revenue A$26m capabilities, receive first Revenue significant orders to fill $20m p.a. factory capacity • Closing
Slide 15: Summary
Summary XTEK is about to deliver high-margin and high-growth proprietary products to global markets supported by a profitable underlying business • Large and growing defence markets • Proprietary products target local and export markets • Government is mandating significant Australian industry conte
Slide 16: Disclaimer
Disclaimer This document is issued by XTEK Limited, ABN 90 103 629 107 (“XTEK”). It is intended only for those persons to whom it is delivered personally by or on behalf of XTEK (being 'wholesale clients' under the Corporations Act who are also sophisticated investors and persons to whom an offer of
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