Energy Technologies Limited · ASX:EGY
Energy Technologies — Investor Presentation (September 2021)
23 slides from Energy Technologies's investor presentation, Sep 20, 2021
Slide 1: Energy Technologies Limited Entitlement Offer Presentation
Energy Technologies Limited (ASX:EGY) A specialised cable & wires manufacturer Entitlement Offer Presentation supplying the high value infrastructure sector September 2021 1
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer This presentation has been prepared by Energy Technologies Limited (EGY or the Although the Company believes that the expectations reflected in the forward looking Company). It should not be considered as an offer or invitation to subscribe for, or statements included i
Slide 3: Executive Summary
Executive Summary Company Energy Technologies Limited (ASX:EGY) is 100% owner of Bambach Wires and Cables (Bambach), a major supplier of Australian manufactured low voltage copper cable products targeting specialised uses Industry Focus The Australian cables industry is a growing >$3.3bn opportunity
Slide 4: Strategic Plan
Strategic Plan Corporate Operational Management control Management Re-structure - Improved financial Finance •- Identify efficient Control Costs reporting systems to work descriptions Board - New stance away Short term with critical KPI’s - Centralise Automation - Improved Board from debt ($1.14m in
Slide 5: Why EGY?
Why EGY? Specialised branded cables targeting ~38% gross margin (not commoditised) Considerable ‘know how’ & IP for new and custom product development Australian designed & manufactured (fast turnaround, high standards) using locally sourced input materials Capitalisation allows Rosedale, VIC the ca
Slide 6: Company Capability
\ AY ; Company Capability enercy
Slide 7: Bambach Wire and Cables
Bambach Wire and Cables Bambach Wire and Cables manufactures low voltage industrial and specialised copper cables Founded in 1936 and is the oldest existing Australian cable manufacturer and 100% owned by Energy Technologies since 2012 Factory in Rosedale, VIC capable of processing up to 250 tonnes
Slide 8: High Value Industry Focus
High Value Industry Focus Provision of specialised and customised cables and wires for large scale projects >$400m in annual demand in addressable market from target sectors plus $60m from bespoke cable projects in the short to medium term Mining Defence Road and Traffic $60m in cables pa $130m in c
Slide 9: Top Tier Client List
Top Tier Client List Supplying some of the world’s largest companies. Many relationships established in last two years with opportunity to grow revenue. Rail Rail Road & Traffic Other Defence 9
Slide 10: Revenue Mix and Uplift Potential
Revenue Mix and Uplift Potential Revenue mix by industry 12 Month Target Other 10.9% Revenue Goal Market (Low Current Run Rate Voltage) Size Made to Order 10.9% Rail $5.1m $5.7m $60m-$80m Mining $400k $6m $600m ~$9.6m Rail Road $300k $4.2m $60m 55.7% Average revenue Defence $350k $5.7m $60m Power &
Slide 11: Primed for New Growth
Primed for New Growth Rosedale, VIC Factory • Large factory with high throughput Large machines can process Capacity • Expansion to ~250 tonnes of copper wire cable / 200-250 tonnes of copper per month + located next to rail line month Revenue • Significant capacity to increase revenue • Expansion i
Slide 12: Strategic Advantage
Strategic Advantage Specialised Cables Asian-sourced Cables Eu-sourced Cables High value & margin industries Approved for specific projects Turnaround times for custom product ~4 weeks ~8-12 weeks >12 weeks Custom manufacturing capability Knowledge & process advantage Sales channels developed Suitab
Slide 13: Client Lifecycle
Client Lifecycle Approval & Quote & Order & Repeat Product creation Standards Proposal Delivery Orders • R&D and custom • ISO AS/NZS • Significant • Receive order • Repeat sales to production of 9001:2015 inbound enquiry • Fulfil from organisations that new product lines standards • Dedicated sales
Slide 14: Market Opportunity
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Slide 15: Significant Market Opportunity $3.3B
Significant Market Opportunity Fulfil existing Market Size (2020) demand from heavy industries Generate new Imported demand from Domestic adjacent markets cable and wires $1.8B $3.3B production $1.5B and export 55% Revenue 45% (2019) Of the $3.3bn cables industry, sub-industries Develop new in- are
Slide 16: Market Tailwinds
Market Tailwinds Significant infrastructure Increased focus on Push to procure products spend over mid term defence and rail domestically post COVID-19 • Major Federal and State Govt • ~$200 billion in defence spend • Require high Australian standards spend planned (~$110 billion) over planned • Fed
Slide 17: Australian Made Advantages
Australian Made Advantages Made in Quicker Weaker AUD Satisfies local Australian Leverage post- Australia with turnaround for makes pricing procurement and Standards and COVID environment ~92% production comparable to Australian Industry Type for insourced composition of (4 weeks vs ~8-12 imported G
Slide 18: Appendices
SSA : Appendices enercy * TECHNOLOG/IeS‘”
Slide 19: EGY Corporate Overview
EGY Corporate Overview Key Metrics Share Price ($) Board of Directors Shares on issue (m) 172.2 12 month high 0.18 Brian Jamieson Mr. Jamieson has over 40 years’ experience in the advisory, manufacturing, resources and Non- Executive Chairman technology industries in Australia and offshore. Mr. Jami
Slide 20: Historical Operating Results
Historical Operating Results Energy Technologies - Profit & Loss (A$'000, unless indicated) HY21 FY20 FY21 Sales revenue 4,054 10,058 9,428 • Sales strengthened in the last quarter due to sharp increase in June as a result of working cap restructuring COS (4,455) (7,642) (6,794) (401) 2,416 2,634 Ad
Slide 21: Balance Sheet
Balance Sheet Energy Technologies – Balance Sheet (FY18 – 1H FY20) Pro Forma post (A$'000, unless indicated) Period to Jul 21* FY20 Entitlement Issue FOCUS POINTS Assets Cash -25 27 2,922 • Working cap facilities removed reducing finance costs and cash used for working cap to support Trade and other
Slide 22: Appendix: Key Risks
Appendix: Key Risks Risk Risk Management Demand Risk • The target industries are varied and demand can be affected in numerous ways, not the least Covid related, Government and Defence spending, Construction industry, Private infrastructure and lack of confidence in delivery and pricing. Capacity Ri
Slide 23: Bambach
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