Slide 1: XTEK Investor Briefing Presentation
Release to the Australian Securities Exchange XTEK Investor Briefing Presentation Monday, 4 October 2021: XTEK Limited (ASX:XTE) (“XTEK” or the “Company”) advises that it has completed a number of select investor briefings to discuss the Company’s planned capital raising activities for 2021. The Inv
Slide 2: XTEK Ltd Investor Presentation
XTEK LTD INVESTOR PRESENTATION 1 OCTOBER 2021 PRESENTED BY: SCOTT BASHAM CHIEF EXECUTIVE OFFICER
Slide 3: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER The following notice and disclaimer applies to this investor presentation (Presentation or document) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By
Slide 4: Disclaimer Cont.
DISCLAIMER CONT. Not an Offer This Presentation is not an offer or invitation to acquire New Shares or any other financial products and is not a prospectus, product disclosure statement or other offering document under Australian law (and will not be lodged with ASIC) or any other law. This Presenta
Slide 5: Disclaimer Cont.
DISCLAIMER CONT. Future Performance This Presentation contains certain "forward-looking statements" that are based on management's beliefs, assumptions and expectations and on information currently available to management. The words "expect", "anticipate", "estimate", "intend", “target” "believe", "
Slide 6: Disclaimer Cont.
DISCLAIMER CONT. Disclaimer The information in this Presentation has been obtained from or based on sources believed by XTEK to be reliable. To the maximum extent permitted by law, XTEK and MST Financial Services Pty Ltd (MST) (Underwriter) and their respective affiliates, officers, employees, agent
Slide 7: Disclaimer Cont.
DISCLAIMER CONT. International Selling Restrictions (cont.) This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (New Zealand) (the FMC Act). The New Shares are not being offered or sold in New Zealand (or
Slide 8: Contents
CONTENTS Section: 1. Investment Summary 2. XTEK Group 3. Technology Division 4. Ballistics Division 5. Operational Outlook for FY2022 6. Capital Raising Appendices: 1. Key Risks 2. General Risks 3. Company Specific Risks 4. Summary of Underwriting Agreement 7
Slide 9: Investment Summary
INVESTMENT SUMMARY ▪ Exposure to attractive Defence Industry fundamentals underpin future growth potential ▪ Refreshed management team and defined strategy focusing on growth and profitability ▪ Intellectual Property portfolio of Sensors, Software, and Ballistic Products ▪ Manufacturing facility inv
Slide 10: XTEK Group
XTEK GROUP XTEK Limited XTEK Group is an ASX listed international Defence Industry advanced manufacturing and technology business. FY2021 Group Revenue $28.3m. Market Capitalisation $25.9m (29 Sep 21). The Group is comprised of XTEK Ltd and its wholly owned subsidiary HighCom Armor Inc. (US) and ope
Slide 11: Technology Division
TECHNOLOGY DIVISION
Slide 12: Technology Division
Technology Division TECHNOLOGY DIVISION Overview Co-located with XTEK Group Headquarters in Canberra, ACT, Australia. • FY21 Revenue: $12.45m • Staff: 17 Focused on manufacturing and supplying global Defence and Security Agencies with world-leading Australian-made and globally sourced: • Systems - U
Slide 13: Systems
SYSTEMS UAVs & UGVs AeroVironmentTM is a global defence supplier based in the USA, that specialises in unmanned aerial vehicles. XTEK Group’s Technology Division is the exclusive regional AeroVironment distributor for Wasp (SUAS), Puma (SUAS+) and SwitchBlade (LM) across Oceania. For the last 15 yea
Slide 14: Sensors
SENSORS Chemical & Virus Detection XTEK Group’s SARBI chemical detection sensor payload is now available for sale, with strong interest from the Military and Law Enforcement markets in Australia and the USA. SARBI is fully integrated with XTEK Group’s XTatlas software suite, which allows chemical al
Slide 15: Software
SOFTWARE XTatlas Applications XTEK Group continues to develop its suite of XTatlas software applications: ▪ Scout – is a Geospatial Intelligence Application. It offers a range of AI enabled software tools designed to assist with UAV Mission Planning, 3D Mapping & Modelling, Data Dissemination, and D
Slide 16: Support
SUPPORT UGV & UAV Mechanical & Structural Repairs That sale of maintenance support services and spare parts continues to provide XTEK Group’s Technology Division with regular profitable recurring revenue. XTEK Group’s Technology Division continues to support the Australian Army’s Wasp SUAS fleet und
Slide 17: FY2022 Growth Opportunities
FY2022 GROWTH OPPORTUNITIES SYSTEMS FY2022 presents multiple opportunities to leverage our portfolio expertise in UAV & UGV Systems. Systems (UAVs): ▪ XTEK Group expects several tenders to be released over the coming 6-9 months for fleets of small UAV Systems by both the Australian Defence Force (AD
Slide 18: FY2022 Growth Opportunities
FY2022 GROWTH OPPORTUNITIES SENSORS, SOFTWARE & SUPPORT FY2022 presents multiple opportunities to leverage our portfolio expertise in Sensors, Software & Support. Sensors (SARBI): ▪ SARBI chemical sensor payload continues to be commercialised for sale, with strong interest from the Military and Law
Slide 19: Ballistics Division
BALLISTICS DIVISION
Slide 20: Ballistics Division
Ballistics Division BALLISTICS DIVISION Overview Division Headquarters located at HighCom Armor Inc. Columbus, OH, USA Production facilities: • Columbus Manufacturing Centre (CMC), OH, USA • Adelaide Manufacturing Centre (AMC), SA, Australia • FY21 Revenue: $16.85m - 95% of product made in AMC is ex
Slide 21: Ballistics Division
BALLISTICS DIVISION HighCom Armor Inc. Headquarters Columbus, OH, USA Columbus Manufacturing Centre (CMC), OH, USA Adelaide Manufacturing Centre (AMC), SA, Australia XTEK Group’s acquisition of HighCom Armor Inc. continues to be validated by HighCom’s strong financial performance in FY2021, even des
Slide 22: Ballistics Division
BALLISTICS DIVISION HighCom Armour is XTEK Group’s Global Armour Brand Major Government agencies & Military organisations depend on and trust the HighCom Armor brand to keep their people safe 21
Slide 23: Columbus Manufacturing Centre
COLUMBUS MANUFACTURING CENTRE Columbus, United States The Columbus Manufacturing Centre is a 35,000 square foot advanced ballistics manufacturing and distribution facility that is well positioned for large scale and time sensitive global supply needs. 22
Slide 24: Adelaide Manufacturing Centre
ADELAIDE MANUFACTURING CENTRE Adelaide, Australia XTEK Group’s $10m+ investment into our ballistic armour manufacturing facility in Adelaide has created a world class research and development, prototyping, and manufacturing capability. XTEK Group’s patented XTclaveTM process creates world-leading ul
Slide 25: Focus on Growth
FOCUS ON GROWTH Leveraging Superior Patented Ballistic Technology ▪ FY2022 presents the Ballistics Division with the opportunity to leverage the $10m+ investment made in the Adelaide Manufacturing Centre to capitalise on growth opportunities for advanced ballistic solutions in the USA and Europe. ▪
Slide 26: Operational Outlook for FY2022
OPERATIONAL OUTLOOK FOR FY2022
Slide 27: New Structure for FY2022 Success
NEW STRUCTURE FOR FY2022 SUCCESS ▪ Following changes to the Group’s senior management team at the end of July 2021, a new organisation structure has been designed focusing on driving growth and profitability. ▪ Mr. Scott Basham appointed and confirmed as XTEK Group CEO. ▪ Realignment of the Group’s
Slide 28: Group-Wide Focus on Cost
Group-Wide Focus on Cost XTEK Group has recently restructured its management team to reduce overhead, right-size our cost base, and manage our reduced working capital position. XTEK Group’s has already identified potential cost savings of circa $0.75m for the business across the Group’s global opera
Slide 29: FY2022 – Outlook
FY2022 – Outlook Growth Potential: ▪ World leading Systems exclusively sourced by Technology Division to meet increasing demand in the ANZ markets ▪ Intellectual Property portfolio of Sensors, Software, and advanced Ballistic Products, all with performance advantages ▪ Attractive Defence Industry fu
Slide 30: Current Position & Use of New Funds
CURRENT POSITION & USE OF NEW FUNDS XTEK Group’s FY2021 Results as at 30 June 2021: XTEK Group’s Position as at 22 September 20211: ▪ Revenue $28.3m down from $42.7m in FY2020 ▪ Cash - $0.24m ▪ Net loss $3.95m vs a profit of $0.3m for FY2020 ▪ Debtors - $0.94m ▪ Cash - $5.90m ▪ Creditors - $1.38m ▪
Slide 31: Capital Raising
CAPITAL RAISING
Slide 32: Capital Raising Overview
CAPITAL RAISING OVERVIEW Placement & Entitlement Offer (together, the “Capital Raising”) to raise up to approximately A$7.7 million Partially Underwritten Capital Raising of approximately A$7.0 million, comprising a: • Placement to raise gross proceeds of approximately A$2.7 million Capital Raising
Slide 33: Placement Overview
PLACEMENT OVERVIEW Placement to raise approximately $2.7 million • Underwritten Placement to Raise gross proceeds of approximately A$2.7 million Placement • Approximately 10.4 million New Shares to be issued under the Placement Structure & Size • The Placement is being undertaken utilizing the Compa
Slide 34: Entitlement Offer Overview
ENTITLEMENT OFFER OVERVIEW Pro rata non-renounceable entitlement offer to raise up to approximately A$5 million • Partially underwritten 1 for 3.7 pro rata non renounceable Entitlement Offer of New Shares to raise approximately Entitlement Offer A$5 million Structure And Size • Approximately 19.2 mi
Slide 35: Capital Raising Timetable
CAPITAL RAISING TIMETABLE Key Event Date Trading Halt and announcement of Placement & Entitlement Offer Thursday, 30 September 2021 Placement Bookbuild Opens Thursday, 30 September 2021 Placement Bookbuild Closes Friday, 1 October 2021 Announcement of results of Placement Monday, 4 October 2021 Trad
Slide 36: Appendices
APPENDICES
Slide 37: Appendix 1: Key Risks
APPENDIX 1: KEY RISKS Introduction There are various risks in any investment in the Shares of XTEK. The risks outlined in this Appendix could have a material adverse impact on XTEK’s operating performance and the market price of any New Shares issued under the Capital Raising. It cannot be guarantee
Slide 38: Appendix 2: General Risks
APPENDIX 2: GENERAL RISKS 1. Market Perceptions Shares are a speculative investment and are vulnerable to macroeconomic changes including sudden changes in the market's perception of a company's value. Positive financial returns are not guaranteed, and the Share price may be affected by various fact
Slide 39: Appendix 3: Company Specific Risks
APPENDIX 3: COMPANY SPECIFIC RISKS 1. Competitors XTEK's competitive position may deteriorate as a result of factors including actions by existing competitors, the entry of new competitors or a failure by XTEK to continue to position itself successfully as the defence industry environment changes. X
Slide 40: Appendix 3: Company Specific Risks
APPENDIX 3: COMPANY SPECIFIC RISKS 4. Key Personnel The Board and key personnel of XTEK are integral to its ongoing performance. XTEK has in place policies and agreements to seek to retain Board members and its key personnel, so that XTEK may continue to supply its defence services and develop techn
Slide 41: Appendix 3: Company Specific Risks
APPENDIX 3: COMPANY SPECIFIC RISKS 7. Ongoing Funding Risks XTEK requires ongoing funding to continue operating, develop its Defence technologies and expand its business. XTEK may need to pursue funding opportunities in the future and if these funding opportunities are identified and used, they may
Slide 42: Appendix 4: Summary of Underwriting Agreement
APPENDIX 4: Summary of Underwriting Agreement XTEK has entered into an underwriting agreement with MST Financial Services Pty Ltd (Underwriter) under which the Underwriter has agreed to fully underwrite the Placement component of the Capital Raising and partially underwrite the Entitlement Offer com
Slide 43: Protect & Sustain
PROTECT & SUSTAIN