Carbon Revolution Public Limited Company · OTC:CREVF
Carbon Revolution Public — Carbon Revolution — FY2020 Earnings Presentation
26 slides from Carbon Revolution Public's earnings presentation, Aug 25, 2020
Slide 1: Carbon Revolution Full Year Results 2020
Carbon Revolution Full Year Results 2020 25th August 2020 1
Slide 2: Disclaimer
Disclaimer This Presentation is provided by Carbon Revolution Limited (“Carbon Revolution” or the “Company”) as a summary of the Company and its operations and for general information purposes only. This presentation is not a disclosure document and should not be considered as investment advice or a
Slide 3: Agenda
30 June 2020 Results Presentation Agenda Highlights Financial Results Summary and Outlook 3
Slide 4: Highlights
Highlights Jake Dingle – CEO 4
Slide 5: Compelling Fundamentals
Compelling Fundamentals Demonstrated Value Carbon fibre wheels make cars lighter, faster, quieter, and more fuel efficient Proposition and offer a compelling business proposition to global car manufacturers The only company to have successfully developed and manufactured single Global Leader piece c
Slide 6: FY20 Highlights
FY20 Highlights Very strong revenue growth notwithstanding COVID-19 impacts ▪ Revenue growth of 158% to $38.9m ▪ $36.8m wheel revenue from 13,942 wheel sales ▪ Engineering and Tooling revenue of $2.1m The industrialisation of our business is progressing well ▪ Annualised wheel moulding rate of over
Slide 7: FY20 Highlights (cont.)
FY20 Highlights (cont.) Pro-actively managing the impacts from COVID-19 ▪ COVID-19 pandemic materially impacted our business, affecting our customers, our supply chains, our production and our ability to deliver on our prospectus forecasts after being on track at the half year ▪ The health and safet
Slide 8: Very strong revenue growth of 158% to $38.9m
Very strong revenue growth of 158% to $38.9m Strong revenue growth notwithstanding COVID-19 Revenue impacts (FY18 - FY20) 50 ▪ Very strong growth in H1 FY20 had the company on track to deliver prospectus revenue from 45 ▪ Strong consumer demand in key OEM programs 40 38.9 2-yr ▪ Investment in indust
Slide 9: The health and safety of the Carbon Revolution team is the top priority
The health and safety of the Carbon Revolution team is the top priority Carbon Revolution’s LTIFR vs Industry Our goal is to achieve zero harm to people and the Benchmark1 environment 10 ▪ Strong and proactive focus on maintaining a safe work 9 8.4 8.4 environment, in this period of rapid growth 8 ▪
Slide 10: Operations review - Investing for efficient growth
Operations review - Investing for efficient growth Annualised Wheel Moulding rate by Quarter Key industrialisation activities delivered in FY20 increased 35,000 the annualised moulding rate to > 30,000 wheels p.a. New installed equipment across the production process 30,000 included: ▪ Additional cu
Slide 11: Operations review - Investing for efficient growth (cont.)
Operations review - Investing for efficient growth (cont.) Conveyor Line Implementation Automated Materials Handling and Processes Additional Moulding Stations Mega-line Development 11
Slide 12: Operations review - R&D focus areas
Operations review - Investing for efficient growth (cont.) New Applications Industry 4.0 & Simulation Additive manufacturing & waste elimination R&D Focus Areas Recycling & Circular economy Materials development 12
Slide 13: Financial Results
Financial Results Gerard Buckle – CFO 13
Slide 14: Financial highlights
Financial highlights Continued investment for future growth ▪ Very strong revenue growth during the year with progress made on manufacturing efficiency, albeit impacted by COVID-19 and aesthetic quality ▪ $26.9m invested for growth, with $14.6m of capital expenditure and $12.3m of capitalised R&D ac
Slide 15: Profit and Loss - Scale clearly benefits the bottom line
Profit and Loss - Scale clearly benefits the bottom line 2020 2019 Change $m $m % Significant increase in revenue with higher Sale of wheels 36.8 13.8 167% volume driving improved gross margin Engineering services & tooling 2.1 1.3 62% Total revenue 38.9 15.1 158% ▪ Wheel sales volume increased 145%
Slide 16: COVID-19 impacted the second half in a number of ways
COVID-19 impacted the second half in a number of ways Recruitment frozen and operational changes made to protect staff impacted wheel production from March to June ▪ Recruitment associated with the volume ramp was frozen in March to minimise the risks from increased contact through the recruitment a
Slide 17: 158% increase in revenue driven by both wheel volume and price
158% increase in revenue driven by both wheel volume and price Revenue by Type (FY18 - FY20) 38.9 40 2.1 35 Total revenue increased 158% to $38.9m 30 25 $m 20 15.1 36.9 Very strong growth 166% to $36.8m in wheel sales 15 1.2 revenue 10 8.0 1.3 13.8 ▪ Volume grew by 145% to 13,942 wheels with strong
Slide 18: Substantial industrialisation benefits remain to be realised
Substantial industrialisation benefits remain to be realised Cost of Goods Sold per Wheel (FY18 - FY20, excl. tooling cost) COGS per wheel improved in FY20 relative to FY19 4,500 4,000 ▪ A higher proportion of wheels manufactured through more 3,500 automated manufacturing processes 3,000 ▪ Improved
Slide 19: Capital employed increased as capacity increased and investment in new programs
Capital employed increased as capacity increased and investment in new programs and technology Working capital increase with volume, COVID-19 raw material risk mitigation and increased moulded wheel inventory 2020 2019 Change ▪ Raw materials ($2.2m increase) attributable to growth in stock $m $m $m
Slide 20: Investing in technology, industrialised assets and working capital
Investing in technology, industrialised assets and working capital Net cash used in operating activities ▪ The increase is largely due to growth in working capital, Cashflow 2020 2019 Change especially inventory, which grew in line with business growth in $m $m $m 2020 EBIT (111.8) (25.2) (86.6) ▪ I
Slide 21: Net debt decreased by $68.9m to a net cash position of $15.2m
Net debt decreased by $68.9m to a net cash position of $15.2m Net debt decreased by $68.9m to a net cash position of $15.2m, driven by: ▪ Capital raised during both the IPO and COVID-19 raising 2020 2019 Change ▪ Conversion of convertible notes into equity during the IPO $m $m $m Loans and borrowing
Slide 22: Summary and Outlook
Summary and Outlook Jake Dingle – CEO 22
Slide 23: FY21 Outlook
FY21 Outlook Sales growth, signing new programs and the industrialisation of the manufacturing process remain key priorities for FY21 The company continues to invest strongly in new customer programs, core wheel technology and industrialisation technology. Our products are underpinned by an extensiv
Slide 24: Continued growth in new OEM programs a key priority
Continued growth in new OEM programs a key priority Programs announced by OEMs ▪ The company continues to invest strongly in new customer programs and industrialisation technology ▪ The company was awarded three new wheel programs during the year ▪ The company’s wheel programs cover most vehicle seg
Slide 25: Compelling Fundamentals
Compelling Fundamentals Demonstrated Value Carbon fibre wheels make cars lighter, faster, quieter, and more fuel efficient Proposition and offer a compelling business proposition to global car manufacturers The only company to have successfully developed and manufactured single Global Leader piece c
Slide 26: Contact details
Contact details Investors Gerard Buckle - CFO Andrew Keys gerard.buckle@carbonrev.com investors@carbonrev.com Media John Fergusson Daymark +613 407 826 952 26