Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Investor Presentation (March 2009)
38 slides from Advanced Braking Technology's investor presentation, Mar 31, 2009
Slide 1: ASX cover letter: Shareholder briefings presentation
For personal use only 31 March 2009 AUSTRALIAN STOCK EXCHANGE LIMITED Electronic Lodgement Dear Sir or Madam, RE SHAREHOLDER BRIEFINGS PRESENTATION Please find the attached shareholder briefing presentation, which Mr Ken Johnsen will make to interested ABV shareholders on the dates and locations bel
Slide 2: Shareholder Briefings April 2009
For personal use only Light Vehicles Garbage Trucks Service Trucks Concrete Trucks Shareholder Briefings April 2009
Slide 3: Company Snapshot
Company Snapshot For personal use only • An Australian innovation in vehicle braking • Worldwide patents • Proven in the harshest mining conditions • Delivers cost, safety and environmental benefits • High value, high margin product • In-house, low cost manufacturer of products • Attractive value pr
Slide 4: Overview of Technology
For personal use only Overview of Technology Patented Sealed Integrated Braking System Single rotor enclosed in an oil filled housing. Rear brake fitted with fail-safe feature. Slide 3
Slide 5: Mine Tough Credentials
For personal use only Mine Tough Credentials • Over a decade of mine service – Over a 1000 units delivered • Meets regulatory and mine company safety standards • Delivers operational cost savings • Used in harshest environments – Canadian arctic – PNG Jungles – Australian deserts Slide 4
Slide 6: ABT's Product Applications and Growing
For personal use only ABT’s Product Applications and GROWING! Slide 5
Slide 7: Blue Chip Customers
Blue Chip Customers For personal use only Slide 6
Slide 8: Business Model
For personal use only Business Model • Engineered in Perth • Manufactured in Thailand (wholly owned) • Direct sales in Australia • Resellers in Canada and South Africa • High value high margin products • Developer of ongoing new product application • Australian Registered Research Agency Slide 7
Slide 9: Thai Production Facility
Thai Production Facility For personal use only ISO 9001-2000 Accredited Slide 8
Slide 10: Recent Developments
For personal use only Recent Developments • Established Mount Isa Service Center • Committed to first batch of Concrete Agitator brakes • Maintained revenue levels in spite of severe downtown in mining sector • BHP Billiton releases new Fatal Risk Control Standard that mandates fail safe brakes “rub
Slide 11: Current Outlook
Current Outlook For personal use only • Current sales/earnings tracking previous period (‘08) • Full year (’09) variance from ’08 now dependant on Q4 sales • Export opportunities (RSA and PNG) showing potential to counteract depressed Australian mining activity. • Focusing on cost benefits and safet
Slide 12: Seizing A New Opportunity
For personal use only Seizing A New Opportunity “Breaking into a Mainstream Market by leveraging off the mine tough heritage” Slide 11
Slide 13: New Horizons
New Horizons For personal use only • Garbage truck brake development points to a large opportunity in a mainstream market • The waste industry is “recession proof” • Technology established and proven in harsh mining environment • Cost, safety and environmental benefits can be delivered to a receptiv
Slide 14: Garbage Truck Brake
For personal use only Garbage Truck Brake • Contact with key participants in the waste collection industry confirm a need for improved braking solution • Brake costs measured in $’s per hour over 10 year truck life • Elimination of noise and dust pollution a key driver • Expressions of interest for
Slide 15: Waste Collection Market
For personal use only Waste Collection Market • Australian fleet size > 4000 trucks – Annual sales 400 pa – Service life 10 years – Combined North American and European market 20,000 per annum with 200,000 in service • Large concentrations in cities like New York and Bangkok with 6000 trucks in each
Slide 16: Opportunity
Opportunity For personal use only • The Truck Brake has a target selling price of $20,000 to $25,000 per truck • The Australian market alone represents a $10 million p.a. sales opportunity (over time) • Retro-fit opportunities multiply this potential • Australia is only 2% of the North American and
Slide 17: Brake Dust Emissions
Brake Dust Emissions For personal use only US EPA Study on Brake Emission Brake and Tyre Dust dominate PM emissions SIBS eliminates brake dust Brake Dust Slide 16
Slide 18: Sales Potential
Sales Potential For personal use only (a possible scenario) GARBAGE TRUCK SALES AND PROFIT CONTRIBUTION 120,000 100,000 AMOUNT $,000's 80,000 SALES REVENUE 60,000 GROSS MARGIN AND CONTRIBUTION 40,000 20,000 0 1 2 3 4 5 Years Assumptions • based on current cost and sales price projections • maintenan
Slide 19: Garbage Truck Project
For personal use only Garbage Truck Project “A Snapshot of Activity” Chosen vehicle for project: Iveco ACCO 2350 Slide 18
Slide 20: Garbage Truck Project
Garbage Truck Project For personal use only $4 million engineering contract to develop the proven SIBS braking technology for application on garbage trucks that: – Has the same brake feel/stopping character as dry brakes. – Can be retrofitted to common garbage trucks without major modifications. – G
Slide 21: Garbage Truck Project
For personal use only Garbage Truck Project Vehicle used to characterize typical use City of Swan Garbage Truck SW 231 Slide 20
Slide 22: Total Brake Events
For personal use only Total Brake Events Weekly average: 9000 stops to zero 2600 snub stops Every 2,000 hours: 433,500 stops to zero(approx 1 year) 123,900 snub stops Total: 557,000 brake events per year 5.5 million brake events per 10 year service life Slide 21
Slide 23: Heat Analysis
For personal use only Heat Analysis ADR Fade Test Simulation Slide 22
Slide 24: From Concept to Reality
From Concept to Reality For personal use only Front Rear Slide 23
Slide 25: Prototype Parts
Prototype Parts For personal use only Slide 24
Slide 26: Garbage Truck Project Current Status & Outlook
Garbage Truck Project For personal use only Current Status & Outlook • Initial $2 million – first phase • Baseline Vehicle Characterization Complete • Prototype Build Complete – 31st March 2008 – Testing will commence in April 09 – Extensive reliability and durability program mapped out • Access to
Slide 27: First Test Truck
First Test Truck For personal use only Slide 26
Slide 28: Financials
For personal use only Financials Slide 27
Slide 29: Achievements 07/08
For personal use only Achievements 07/08 • Loss down by 53% to $1,029k. • Sales up 74% to $4,392k. • Entered into $4 million Garbage Truck contract • Delivered OE “Tech Demonstrator” • Completed Concrete Truck Brake design • Delivered Hino Truck Brake Slide 28
Slide 30: Financials 1st Half 2009
Financials 1st Half 2009 For personal use only • Loss up from $502k for half year ended December 2007 to $572k in half year ended 2008 • Total revenue down from $2,124k for half year ended December 2007 to $2,040k in 2008, due to mining slowdown. • Cash balance $1.034 million. • Unused line of credi
Slide 31: Financials 1st Half 2009
For personal use only Financials 1 Half 2009 st • Raised over $1 million through Rights Issue • Additional $650k cash held in trust for Refuse Truck Project (Receivables). • Deferred income of $1.0 million pending completion of Refuse Truck milestones. • Gross margin for 2008 at 61% is the same as i
Slide 32: Sales Historical Performance
For personal use only Sales Historical Performance ANNUAL SALES 2005 TO 2008 5,000 4,500 4,000 3,500 $'000's 3,000 Sales - Engineering and Fitting 2,500 Sales - Spares 2,000 Sales - Brakes 1,500 1,000 500 0 2005 2006 2007 2008 Slide 31
Slide 33: Losses Historical Performance
For personal use only Losses Historical Performance ANNUAL LOSSES 2005 TO 2008 (5,000) (4,500) (4,000) (3,500) $'000's (3,000) (2,500) (2,000) (1,500) (1,000) (500) (0) 2005 2006 2007 2008 Slide 32
Slide 34: Half year results – Profit and Loss
For personal use only Half year results – Profit and Loss 31-Dec-08 31-Dec-07 % $,000s $,000s Incr (Decr) Revenue 1,941 2,091 -7.2% Other Income 99 33 Total revenue 2,040 2,124 -4.0% Cost of Sales (578) (747) Gross Margin 1,462 1,377 6.2% Gross Margin % (Brakes only) 61% 61% Total Expenses 2,333 2
Slide 35: Half year results – Balance Sheet
For personal use only Half year results – Balance Sheet 31-Dec-08 30-Jun-08 $,000s $,000s CURRENT ASSETS Cash 1,034 1,437 Receivables 1,133 870 Inventories 1,711 1,198 other 62 36 TOTAL CURRENT ASSETS 3,940 3,541 TOTAL NON CURRENT ASSETS 2,900 4,101 TOTAL ASSETS 6,840 7,642 CURRENT LIABILITIES Payab
Slide 36: Conclusion
For personal use only CONCLUSION • ABT maintaining is presence in mining sector and focusing on securing additional sales and expanded product range • Opportunity now presents itself to leverage the proven technology into the much more lucrative truck market • Additional investment in capturing this
Slide 37: Investment Criteria
Investment Criteria For personal use only • Low Technical Risk – Confirmation of upscaling to trucks underway • Well managed and externally assessed milestone driven R&D project • Quarterly gateways will demonstrate progress • Engagement of key stakeholder • Business model well defined • Ongoing con
Slide 38: www.advancedbraking.com
For personal use only www.advancedbraking.com Email: info.perth@advancedbraking.com Phone: +61 (0) 8 9273 4800 Fax: +61 (0) 8 9201 9986 Slide 37
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