Trajan Group Holdings Ltd · ASX:TRJ
Trajan — H1 FY24 Earnings Presentation
18 slides from Trajan's earnings presentation, Feb 27, 2024
Slide 1: FY24 H1 Financial Results
FY24 H1 FINANCIAL RESULTS 27 FEBRUARY 2024 STEPHEN TOMISICH CEO & MANAGING DIRECTOR ALISTER HODGES CFO
Slide 2: FY24 Financial Results
FY24 FINANCIAL RESULTS INTRODUCTION H1 CONTEXT H1 SUMMARY SEGMENT INFORMATION DISRUPTIVE TECHNOLOGIES PROJECT NEPTUNE BALANCE SHEET OUTLOOK 2
Slide 3: Building Trajan to Global Scale
Building Trajan to Global Scale Respect Integrity Discipline Empowerment Diversity Trajan is a globally scaling business providing products and services essential to sample handling and analysis in the Clinical, Pharmaceutical, Environmental and Food sectors. We are both a manufacturer and product i
Slide 4: Strategy
STRATEGY Ongoing execution Our vision is to deliver meaningful impact by enriching personal health through scientific tools and solutions. We are achieving this through: Enabling Global Project Neptune New Revenue Acquisition Growth EBITDA Expansion Streams Integration Benefits • Commercialisation o
Slide 5: H1 Context
FINANCIAL PERFORMANCE Context • As disclosed to the market in August, Trajan expected industry destocking to impact Net Revenue in H1. • Strong rebound in orders in Q2 with order demand now returning to normal growth trends. Trajan commencing H2 with a significant order backlog in consumables to be
Slide 6: H1 Summary
FINANCIAL PERFORMANCE Summary Net Revenue nEBITDA Core1 Cash $76.4M H1 FY24 $6.9M $11.2M PCP $80.1M PCP $11.1M 30 June 2023 $11.0M H1 FY23 H1 FY23 Proforma H1 FY24 H1 FY24Gross Margin 39.7% PCP 40.7% June 2023 December Operating NPATA2 2024 $1.3M PCP $3.6M H2 FY24F calculated using mid-point of indi
Slide 7: Transition to Segment Reporting Transparency
FINANCIAL PERFORMANCE Transition to Segment Reporting Transparency Core Products and Disruptive Technologies • Historically reported under two segments Solutions Products and Solutions Analytical Products and Life Sciences Solutions. • Components and • Products and services Consumables – related to
Slide 8: Segment - Components & Consumables
FINANCIAL PERFORMANCE Segment - Components & Consumables • Net Revenue of $46.6M (PCP $50.0M). • Proforma Gross Profit Margin 39.6% (PCP 41.6%). • nEBITDA of $14.7M (PCP $15.6M). • Customer destocking impacted this segment more significantly. Order behaviour and demand returning to normal trends in
Slide 9: Segment – Capital Equipment
FINANCIAL PERFORMANCE Segment – Capital Equipment • Net Revenue of $27.6M (PCP $27.1M). • Proforma Gross Profit Margin 39.8%. (PCP: 39.1%). • nEBITDA of $4.8M (PCP $5.3M). Operational Update • Combination of Axel Semrau and LEAP Technologies legacy automation businesses are operating at a global lev
Slide 10: Segment Summary
FINANCIAL PERFORMANCE Segment Summary • Industry destocking impacted Component and H1 FY24 H1 FY23 Variance (%) Consumables Net Revenue. Net Revenue - Component & Consumables 46.6 50.0 (6.8%) • Proforma GP Margin 39.7% in H1 expected to Net Revenue - Capital Equipment 27.6 27.1 1.8% trend to 44.0% i
Slide 11: Order Book Demand Returning to Normal Growth
FINANCIAL PERFORMANCE Order Book Demand Returning to Normal Growth • Healthy closing order book balance of $21.9M comprising Components and Consumables $12.1M, Capital Equipment $8.7M, and Disruptive Technologies $1.1M. • Order demand returning to normal growth trends by end of Q2. • Increasing forw
Slide 12: Disruptive Technologies
FINANCIAL PERFORMANCE Disruptive Technologies • Net Revenue of $2.2M (PCP $3.0M). • nEBITDA of ($2.9M) (PCP ($2.3M)). • Realigning investment in Disruptive Technologies in H2 to be compatible with the rate of market and customer adoption. • Commercialisation of Hummingbird advanced with an industria
Slide 13: Disruptive Technologies
FINANCIAL PERFORMANCE Disruptive Technologies • Microsampling growth (refer right) rebuilding from pandemic levels where it was widely used for COVID-related research. • At its height in FY20, COVID-related sales orders represented 68% of total microsampling orders. Expected to represent 1% in FY24
Slide 14: Project Neptune
FINANCIAL PERFORMANCE Project Neptune • Trajan is currently delivering ahead of the three-year Project Neptune initiative to achieve $2.7M in annual cost benefits, and is on track to deliver more than $3.0M annualised benefits by the end of FY24. • Further automation in Melbourne delivering cost red
Slide 15: Balance Sheet & Cash Flow Summary
FINANCIAL PERFORMANCE Balance Sheet & Cash Flow Summary Balance Sheet Dec 2023 June 2023 H1 H1 • Decrease in net working capital due Cashflow Summary ($M) ($M) FY24 FY23 to decrease in inventories ($4.1M), ($M) ($M) decrease in receivables ($3.9M), Cash 11.2 11.0 Normalised EBITDA1 4.0 8.9 Receivabl
Slide 16: Full Year Guidance
FINANCIAL PERFORMANCE FULL YEAR GUIDANCE • Margin expansion with revenue growth. Proforma GP Margin expected to improve from 39.7% in H1 to 44.0% in H2. • Additional benefit over H1 from economies of scale of $0.6M. • Realised labour cost savings from restructuring in H1 FY24. • Operational changes
Slide 17: Investment Thesis
INVESTMENT THESIS • Exceptional commercial track record working towards 13th consecutive annual period of growth. • Easing of supply chain volatility due to destocking provides greater certainty of short-to-medium-term performance. • Large defensive end-markets with structural growth drivers. • Robu
Slide 18: Q&A
Q&A 18
Trajan Group Holdings — H1 FY24 Earnings Presentation on 6ix