Carbon Revolution Public Limited Company · OTC:CREVF
Carbon Revolution Public — Carbon Revolution — H1 FY2021 Earnings Presentation
19 slides from Carbon Revolution Public's earnings presentation, Feb 24, 2021
Slide 1: Half Year Results FY2021
Carbon Revolution Half Year Results FY2021 24th February 2021 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: H1 FY21 Results Presentation Agenda
H1 FY21 Results Presentation Agenda Highlights Financial Results Summary and Outlook 3
Slide 4: Highlights
Highlights Jake Dingle – CEO 4
Slide 5: Demand outlook strong
Demand outlook strong Demand outlook strong and aligning with Mega-line design readiness ▪ Current and potential customers seeking significant volumes ▪ Award of new wheel programs and extensions of existing programs are expected in the second half of FY21 ▪ The initial design of the Mega-line is co
Slide 6: H1 FY21 Highlights (cont.)
H1 FY21 Highlights (cont.) Pro-actively managing the impacts from COVID-19 ▪ Consistent with expectation, and as previously announced, the Company’s H1 FY21 sales were impacted by issues related to COVID-19 with one customer and seasonality impacts with another ▪ Revenue was $17.2m, a reduction of 1
Slide 7: 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 Our goal is to achieve zero harm to people and the Carbon Revolution’s Rolling 12-month environment LTIFR vs Industry Benchmark1 10 ▪ Strong and proactive focus on maintaining a safe work environment 9 ▪ LTIFR of 2.5 over the 12
Slide 8: Strong progress being made with OEM relationships
Strong progress being made with OEM relationships. Increased demand expected for both conventional and EV applications ▪ Current customers have responded very positively to the aesthetic enhancements and flexibility delivered by the implementation of fascia technology. Complete transition of all pro
Slide 9: Operations focus was on new technology to drive quality and flow
Operations focus was on new technology to drive quality and flow and completing capacity commissioning • The new fascia technology was successfully implemented, resulting in: • Improved conversion of moulded wheels to sold wheels, contributing to inventory reduction of ~3,100 wheels • Quality and fl
Slide 10: Operations review - Investing for efficient growth (cont.)
Operations review - Investing for efficient growth (cont.) Automated Face Layup Line - Commissioned Automated Materials Handling and Processes High Pressure Moulding – Additional Stations Commissioned, Mega-line Development – Ready for Sourcing high-pressure installed capacity now up to 60,000 wheel
Slide 11: Compelling Fundamentals
Compelling Fundamentals Demonstrated Value Carbon fibre wheels make cars lighter, faster, quieter, and more fuel efficient, Proposition providing a compelling business proposition to global car manufacturers Successfully developed and manufactured single piece carbon fibre wheels Global Leader with
Slide 12: Financial Results
Financial Results Gerard Buckle – CFO 12
Slide 13: Profit and Loss – Impacted by reduced volumes and mix
Profit and Loss – Impacted by reduced volumes and mix Previously announced reduced sales volumes impacted both revenue and gross margins ▪ Wheel sales volume reduced by 5.4% to 6,397 wheels with revenue decreasing by 14.1% impacted, as expected, by issues related to COVID-19 on one program and seaso
Slide 14: H1 Revenue drivers
H1 Revenue drivers Revenue by Type 25 Revenue for the half was $17.2m, a 14.1% decrease 20.1 from H1 FY20 20 1.7 17.2 0.7 15 $m Wheel sales revenue reduced by 9.7% to $16.6m as 10 18.4 expected, driven by issues related to COVID-19 for one 5.9 16.6 5 0.3 customer and seasonal manufacturing on anothe
Slide 15: Efficiency metrics impacted by reduced volumes
Efficiency metrics impacted by reduced volumes Cost of Goods Sold per Wheel (excl. tooling cost) COGS per wheel was impacted by reduced production 5,000 volumes 4,000 ▪ Labour productivity and recovery of manufacturing overheads were $/whl 3,000 impacted by significantly lower production volumes 2,0
Slide 16: Delivering operating cashflow and financing improvements
Delivering operating cashflow and financing improvements Second quarter cashflow from operations New $7.5m working capital facility expected to be finalised in the next month. (including grants and reduction in work-in- progress) was positive and is expected to ▪ Key terms and conditions have been a
Slide 17: Summary and Outlook
Summary and Outlook Jake Dingle – CEO 17
Slide 18: Status of Key FY21 Expectations
Status of Key FY21 Expectations Sales Deliver strong sales growth over FY20 • Although there remain uncertainties arising from the ongoing impacts of COVID-19 and the automotive industry’s response in the near-term, the Company expects to deliver strong sales growth in FY21 • Two programs in develop
Slide 19: Contact details
Contact details Investors Nick Batchelor Andrew Keys Nick.batchelor@carbonrev.com investors@carbonrev.com Media John Fergusson Daymark +613 407 826 952 19