Sdi Limited · ASX:SDI
Sdi — Shareholder Meeting (November 2017)
19 slides from Sdi's shareholder meeting presentation, Nov 17, 2017
Slide 1: AGM 2017
AGM 2017 Bayswater, 17 t h November 2017
Slide 2: Chairman's address
Chairman’s address Mr. Jeffery Cheetham OAM
Slide 3: CEO's address
CEO’s address Ms. Samantha Cheetham
Slide 4: The SDI Mission
We exist to increase shareholder value by discovering, developing and marketing top quality, innovative dental products. THE SDI MISSION
Slide 5: The SDI Vision
To be an innovative leader in the dental industry, developing our people and partnering with dentists and distributors globally to help them deliver a superior patient experience. THE SDI VISION
Slide 6: SDI is transforming
SDI is transforming • Innovation is key - innovation in chemistry and delivery systems resulting in leading product development • Fully integrated dental manufacturer with driving manufacturing efficiencies • 1 – 2 new products per year to drive growth • Concentrating on categories that deliver high
Slide 7: Solid sales growth
AUD $m 0 10 20 30 40 50 60 70 80 Source: SDI 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Solid sales growth 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 8: Strong long term relative returns
Strong long term relative returns 1200 1100 1000 Total Shareholder returns 900 SDI All Ords 800 1 ‐ year 15.1% 13.1% 700 3 ‐ year 13.4% 6.8% Index 600 500 5 ‐ year 43.6% 11.6% 400 Annualised TSR returns as at 30 June 2017 300 200 100 Jun 2012 Dec 2012 Jun 2013 Dec 2013 Jun 2014 Dec 2014 Jun 2015 Dec
Slide 9: FY17 Highlights
FY17 Highlights Sales v EBITDA • NPAT of $5.6m within guidance 80.00 74.08 74.07 18.00 68.66 16.00 70.00 • Aesthetic sales up 12% in local currency (9% in AUD) 63.33 15.40 14.00 60.00 56.63 • Whitening sales up 7% in local currency (4% in AUD) 12.00 50.00 12.30 12.50 • Australian direct export sales
Slide 10: Financial overview
Financial overview 20.8 • Long term earnings trend is positive 17.9 16.5 16.9 • FY2016 profit and margin unfavorably impacted by currency 16.3 15.4 • FY2017 saw stronger sales growth in emerging markets, 12.3 12.5 which are generally lower margin regions, partially offset 10.8 9.2 by supportive mix
Slide 11: Dividends growth and no net debt
Dividends growth and no net debt • Net cash position with strong free cashflow • Increased dividend and payout ratio reflective of balance sheet strength and the board’s confidence 6.4 6.4 5.5 5.2 4.7 4.7 4.0 4.4 4.0 3.1 2.3 2.0 2.6 2.1 1.4 1.7 0.7 0.5 ‐0.3 2013 2014 2015 2016 2017 EPS (cents) DPS (
Slide 12: Product mix continuing to shift
Product mix continuing to shift • Aesthetics and whitening categories 21.0% 22.0% 23.0% 23.0% 26.0% 27.0% now account for 60% of sales (CAGR 16.4% p.a. 2013 to 2017) • Growth in Glass Ionomers 24.0% 24.0% 25.0% 28.0% continued to outperform 31.0% 33.0% • Good acceptance of Aura 10.0% 9.0% 9.0% 9.0%
Slide 13: Geographical sales
Geographical sales Sales by geographical location A$(m) 25.8 25.5 20.9 North America Europe 18.9 FY17 $18.9m, FY17 $25.5m, -9.6% -1.2% 13.1 12.5 Middle East/Africa 9.8 8.9 FY17 $6.8m APAC 6.8 +13.3% FY17 $13.1m, 6.0 +4.8% South America FY17 $9.8m, +10.1% APAC Middle East & North America South Americ
Slide 14: Research, innovation, results
Research, innovation, results • FY17 product releases • Aura Easy - composite • Pola Luminate - tooth whitening - December 2016 • Riva Cem - a paste/paste cement - March 2017 • Industry trade show product launches (Germany) – March 2017 • Radii Xpert – small equipment – product launch April 2017 • 1
Slide 15: Decay – worldwide problem
Decay – worldwide problem • Tooth decay is the most common health problem in Australia, USA and many other countries • 1 in 2 children aged 6 years have decay in their baby teeth* • 1 in 2 children aged 12 years have decay in their adult teeth* • Decay rates have increased more than 50% since 1996*
Slide 16: Riva Star
Riva Star • Silver Diamine Fluoride and Potassium Iodide based product • SDI has a worldwide patent • Dental Health Services Victoria – Study on 500 children who would normally be sent to Royal Children’s Hospital for a general anaesthetic and severe extractions • “If the trial is successful, it wil
Slide 17: Radii Xpert
Radii Xpert • Radii Xpert will be released throughout FY18: • Australia September 2017 • UK October 2017 • Europe November 2017 – February 2018 • USA – March 2018 • ROW depending on registration • Excellent initial feedback from key researchers • Only light on the market with target assist technolog
Slide 18: Outlook
Outlook The most significant product release for FY18 will be Radii Xpert (curing light) with sales expected to contribute from Sept. In FY18 we expect continued sales growth in non-amalgam products (70% of sales), offset by ongoing weakness in the market for amalgam. 18
Slide 19: 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