Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Small Cap Conference (March 2011)
22 slides from Advanced Braking Technology's conference presentation, Mar 28, 2011
Slide 1: Small Cap Conference – Advanced Braking Technology Ltd
For personal use only Light Vehicles Garbage Trucks Service Trucks Concrete Trucks Small Cap Conference Ken Johnsen – CEO Advanced Braking Technology Ltd 28th March 2011
Slide 2: Disclaimer
For personal use only Disclaimer This presentation includes statements looking-forward that involve risks and uncertainties. These statements are based upon management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and
Slide 3: Company Snapshot
For personal use only Company Snapshot • 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 4
Slide 5: Mine Tough Credentials
For personal use only Mine Tough Credentials • Over a decade of mine service • Meets regulatory and mine company safety standards • Delivers operational cost savings • Standard fitment on many mines • Used in harshest environments – Canadian arctic – PNG Jungles – Australian deserts Slide 5
Slide 6: Current Product Applications and Growing!
For personal use only Current Product Applications and GROWING! Slide 6
Slide 7: Blue Chip Customers
For personal use only Blue Chip Customers Slide 7
Slide 8: Business Model (A Technology Company)
Business Model For personal use only (A Technology Company) • Developed in Australia • 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 applications • Australian Registered
Slide 9: Technology S Curve
For personal use only Technology S Curve
Slide 10: Financial Performance
For personal use only Financial Performance Half Year Breakdown $6,000 $5,000 Current Period REVENUE $4,000 $000’s $3,000 2nd Half 1st Half $2,000 $1,000 $- 05/06 06/07 07/08 08/09 * 09/10 10/11 $1,000 $500 $- 2nd Half P&L -$500 1st Half -$1,000 After Tax -$1,500 $000’s -$2,000 Losses largely invest
Slide 11: Prospects in Mining
For personal use only Prospects in Mining Australia • FY10 market share 10% (mainly Landcruisers) • On track for 20% market share FY11 • Increasing market share from product improvement • Confident this growth will continue Export – average for last 3 financial years 25% of sales • Market foothold i
Slide 12: Growth Strategy
For personal use only Growth Strategy Beyond Business As Usual “Breaking into a Mainstream Market by leveraging off the mine tough heritage” Slide 12
Slide 13: Garbage Truck Brake
For personal use only Garbage Truck Brake • Waste industry confirms a need for improved braking solution • Brake service costs are up to $10k pa over 10 year truck life • Safety and reliability a key issue • Elimination of noise and dust pollution a key driver Slide 13
Slide 14: Waste Collection Market
For personal use only Waste Collection Market Region New Truck Sales Fleet Size (annual) (est.) Australia 800 6,500 – 8,000 North America 20,000 ~ 200,000 Europe 6,000 ~ 60,000 Urban refuse collection is a major industry in North America, employing over 300,000 people. Its revenues approach US$50 bi
Slide 15: Value Proposition
For personal use only Value Proposition • Estimated 2.5 year payback on upfront cost of SIBS • $8k to $10k annual savings on brake service costs • Major service interval extended from 3 months to at least 12 to 24 months • Target incremental cost $25,000 per truck • Pre-assembled wheel ends will be
Slide 16: Opportunity
For personal use only Opportunity • Sales in Australia to retro-fit represents a $25 million opportunity (at 30% of available market) • The Australian market alone represents a $10 million p.a. sales opportunity (at 50% penetration) • Australia is only 2% of the North American and European market •
Slide 17: Sales Potential
Sales Potential For personal use only (possible scenario) GARBAGE TRUCK SALES AND PROFIT CONTRIBUTION 70,000 60,000 AMOUNT $,000's 50,000 40,000 SALES REVENUE GROSS MARGIN AND CONTRIBUTION 30,000 20,000 10,000 0 1 2 3 4 5 Years Assumptions • based on current cost and sales price projections • mainte
Slide 18: From Concept to Reality
For personal use only From Concept to Reality Front Rear Slide 18
Slide 19: Current Status/Next Steps
For personal use only Current Status/Next Steps • Production Validation – commenced Aug 2010 • External funding support - $250k per quarter • 5 trucks will be put into service with fleet operators to confirm real world service intervals and reliability • Bench and other testing validating other aspe
Slide 20: Conclusion
For personal use only CONCLUSION • $30 million in past investment in R&D is now generating returns • Recent transition to profit due to mining side of the business • Focusing on growing mining sales and expanding mining product range through ongoing product development • On track to enter global was
Slide 21: Late Update
For personal use only Late Update ABT announced on ASX today that it has been offered a $2 million Commercialisation Australia grant aimed at accelerating the market introduction of the SIBS garbage truck brake.
Slide 22: For personal use only
For personal use only ABN 099 107 623 www.advancedbraking.com ASX Code “ABV” Email: investor@advancedbraking.com Phone: +61 (0) 8 9273 4800 Fax: +61 (0) 8 9201 9986 Slide 22
Advanced Braking Technology — Small Cap Conference (March 2011) on 6ix