Slide 1: 1H23 Results Presentation
1H23 RESULTS PRESENTATION 28 February 2023 Samantha Cheetham CEO John Slaviero CFO/COO
Slide 2: Awards
AWARDS eso Aura Bulk Fill DAI PREFERRED PRODUCT AWARD Radii Xpert oun DENTAL ADVISOR PREFERRED PRODUCT COMPOSITE: BULK FILL RESTORATIVE PREFERRED PRODUCT LED CURING. LIGHT PREFERRED, PRODUCT AWARD a Riva Light Cure HV — RESTORATIVE DENTAL ADVISOR PREFERRED PRODUCT WHITENING: TAKE-HOME ‘aemmenonct LI
Slide 3: Agenda
AGENDA o 1H23 Highlights o Category & Geography Overview o Financial Performance o Operational Update o Strategy and Outlook
Slide 4: 1H 2023 Highlights
1H 2023 HIGHLIGHTS SALES GROWTH MOMENTUM CONTINUES DRIVING MARGINS UP AS EXPENSES (EXCL. LOGISTICS) BEGIN TO NORMALISE TO PRE-COVID LEVELS Sales ($m) 81.6 o Record sales of $50.5m, up 9.0% on pcp, with strong 74.5 79.6 67.4 95.1 growth Amalgam and Aesthetic categories 48.8 42.5 44.8 o Gross margins
Slide 5: Category Overview
CATEGORY OVERVIEW BIGGEST CONTRIBUTION FROM AESTHETICS AND AMALGAM PRODUCT CATEGORIES INCREASING 8.4% AND 17.8% RESPECTIVELY o Aesthetics up 8.4% from market share Product category Change in local Change in AUD Total AUD sales gains and momentum in new product sales currency % % % releases o Amalgam
Slide 6: Sales by Business Unit
SALES BY BUSINESS UNIT RETURN TO NORMAL OPERATING CONDITIONS o Australian sales (incl Domestic and Growth in local Growth in AUD Total AUD direct export markets), down 0.6%, with Sales by Business Unit currency % % Sales % domestic sales up 4.1% offset by direct Australian sales (including exports m
Slide 7: Distribution
DISTRIBUTION Sales by geography (A$m) 17.8 16.5 Europe 11.7 North America $17.8 +7.1% 10.3 $11.7m +13.7% 9.2 7.9 Middle East/Africa 6.0 6.2 $5.6m (5.3%) 5.6 5.6 APAC $9.2m +17.1 South America $6.2m +9.8% APAC Middle South North Europe East / America America Africa 1H22 1H23 7
Slide 8: Financial Performance
FINANCIAL PERFORMANCE
Slide 9: Profit & Loss
PROFIT & LOSS Profit & Loss (#039;000) 1H23 1H22 % Change o Total sales of $50.5m, up 9.0% on pcp, with Revenue strong growth Aesthetics and Amalgam Sales Revenue 50,491 46,328 9.0% categories Cost of goods sold -22,091 -22,051 0.2% Gross Profit 28,400 24,277 17.0% o Product margins in Australian dolla
Slide 10: Balance Sheet
BALANCE SHEET Balance Sheet (#039;000) 1H23 1H22 Assets o Cash position slightly down from $6.5m to Cash & cash equivalents 6,003 6,523 $6.0m for the 12 months. Trade & other receivables Inventories 20,202 26,529 17,803 22,907 o Continued active management of inventory, ensuring customer needs are met,
Slide 11: Cash Flow
CASH FLOW o Operating cashflow up on pcp to $2.6m driven Cash Flow (#039;000) 1H23 1H22 Receipts from customers 51,426 47,335 by strong half of cash receipts Payments to suppliers & employees -46,680 -44,171 o Investing cashflow reflect strategic purchase of Other revenue 407 -235 6 acre site Interest
Slide 12: Operational Update
OPERATIONAL UPDATE MILESTONE ACHIEVEMENTS UNDERPIN LONG TERM STRATEGIC PLAN o SDI confirmed the purchase of a 6-acre site, which short-term, will be utilised to provide important warehousing capacity • Renovation work on the warehouse close to complete, total spend circa $1.1m • Currently seeking pe
Slide 13: R&D – MRLs at SDI
R&D – MRLS AT SDI MRLS - MANUFACTURING READINESS LEVELS Basic research Technology Manufacturing Laboratory ‘Production ‘Production Validation Pilot capability Low rate Full rate MRL1 MRL2 MRL3 MRL4 MRL5 MRL6 MRL7 MRL8 MRL9 MRL10 ‘Blue sky’ development proof of environment relevant’ relevant’ ‘Produc
Slide 14: ESG Initiatives
ESG INITIATIVES o Recently appointed a qualified engineer to position of Environmental Officer to ensure an ongoing commitment to management on further improvements o Internal ESG group begins making suggestions towards positive initiatives that can start to be implemented o SDI are proud of their w
Slide 15: Strategy & Outlook
STRATEGY & OUTLOOK o Aesthetics and Whitening products continue to be the focus for new product development; for achieving manufacturing efficiencies and driving sales and marketing teams. o On-going investment in R&D to release 1-2 products per year is on target, o Continued focus on improving oper
Slide 16: Q&A
Q&A
Slide 17: Disclaimer
Disclaimer This Presentation contains summary information about SDI Limited (SDI) and its subsidiaries and their activities. The information in this Presentation does not purport to be complete. It should be read in conjunction with SDI’s other periodic and continuous disclosure announcements lodged