Slide 1: FY22 Annual Results
FY22 Annual Results for the year to 30th September 2022
Slide 2: Disclaimer
Disclaimer This document is being made available for information purposes only and neither it nor any oral presentation made in connection with it constitute or form part of, and should not be construed as, an offer, invitation or inducement to purchase or subscribe for any securities or to enter in
Slide 3: Highlights: FY22
Highlights: FY22 ✓Full year revenue £5.0m: 39% higher than FY21 ✓EBITDA loss reduced to £0.9m from £1.5m ✓ Trading in Q1 FY23 ahead of same quarter last year Energy sector revenue up 72% Fundraise of £0.5m in Sept 2022 including Oil & Gas up by 54% Six fold increase in power generation Full Leonardo
Slide 4: Financial Key Points FY22
Financial Key Points FY22 Increasing revenue across all sectors; up by 39% overall EBITDA loss reduced to Gross Margin increased £0.9m Gross Profit £1.9m to 37% (FY21 loss £1.5m) (FY21 £1.3m) (FY21 36%) Cash at Bank £0.7m Post year-end cash Fundraise of £0.5m in injection of £0.5m from September 202
Slide 5: Strategy
Strategy Two-stage strategy agreed following Board review: (a) Focus on becoming profitable and cash generative. This will be driven mainly by increased sales to existing and new customers, utilising proven coating technology and existing production capacity, thereby benefiting from the Group’s stro
Slide 6: Hardide Business Model
Hardide Business Model © 2023 All content is confidential and remains the property of Hardide plc 6
Slide 7: Hardide Strategic Direction
Hardide Strategic Direction © 2023 All content is confidential and remains the property of Hardide plc 7
Slide 8: Hardide's applications
Hardide’s applications © 2023 All content is confidential and remains the property of Hardide plc 8
Slide 9: Energy – Oil & Gas (up by 54%)
Energy – Oil & Gas (up by 54%) • O&G market demand returning, but slower than anticipated due to supply chain material shortages • Forecasts from major oil service companies are very positive for FY23 and beyond • Multiple new and high value applications currently in testing • Coating of mesh sand s
Slide 10: Energy- Power Generation (six-fold increase)
Energy- Power Generation (six-fold increase) • Two large orders for coating gas turbine blades completed successfully for Ansaldo Energia, Italy – further gas turbine blade orders expected in 2023 • Trials and technical discussions underway with the second largest global manufacturer of turbines • E
Slide 11: Energy- Alternative (longer term)
Energy- Alternative (longer term) Current projects in Alternative Energy industries include: • Hydrogen – Lab tests underway to provide data on the coating being a good barrier to hydrogen diffusion. A customer currently testing actual components • Solar cells – Coating production components used in
Slide 12: Industrial (up by 10%)
Industrial (up by 10%) • Revenue up 39% from main US-based customer of positive displacement pumps used for highly aggressive and corrosive fluids • More components currently being converted over to Hardide coating which will increase the product range in FY23 • Airport baggage X-ray machine manufac
Slide 13: Aerospace (up by 24%)
Aerospace (up by 24%) Aerospace market now in recovery: • Passenger numbers and aircraft utilisation increasing • Airbus increasing production rates, especially on A320 series single aisle aircraft – planning increase from current 50/month to 75/month by 2025 • Regular parts being coated for A320, A
Slide 14: Outlook
Outlook Recovery in demand well underway but mindful of Success in recovering cost Revenues continue to grow economic headwinds, increases through selling due to increasing adoption of ongoing cost inflation and prices our coatings supply chain disruptions Board seeking to drive significant value fo
Slide 15: Financials
Financials
Slide 16: Consolidated Income Statement
Consolidated Income Statement £m 2020/21 2021/22 Variance FY FY Sales 3.6 5.0 +39% Gross Profit % 36% 37% +1 ppt Overheads 2.8 2.8 - EBITDA (1.5) (0.9) +40% © 2023 All content is confidential and remains the property of Hardide plc 16
Slide 17: Balance Sheet
Balance Sheet £m 2020/21 2021/22 FY FY Assets 9.2 9.0 Cash 1.5 0.7 Net working capital (0.7) (1.1) Liabilities & provisions (3.1) (3.1) Capital Employed 6.9 5.5 Equity 22.8 23.3 Losses (16.0) (18.2) Other reserves 0.1 0.4 Shareholders’ funds 6.9 5.5 © 2023 All content is confidential and remains the
Slide 18: Cash Flow
Cash Flow £m 2020/21 2021/22 FY FY Net Operating Cash (1.7) (0.9) Net Investing Cash (0.3) (0.3) Share Issues 0.8 0.5 Finance Lease 0.1 - Lease Principal (0.3) (0.2) Loan Changes 0.4 0.1 Grant repaid (0.2) - Net Financing Cash 0.8 0.4 Net Cash At Start 2.7 1.5 Net Cash At End 1.5 0.7 © 2023 All cont
Slide 19: Thank you
Thank you
Slide 20: Appendix: What Hardide does
Appendix What Hardide does….
Slide 21: Hardide plc - what we do
Hardide plc - what we do • Produces a unique, patented nano-structured tungsten carbide surface coating that protects critical metal components used in aggressive environments • Increases working life by typically 3-5x and up to 100x • Coating created by chemical reaction of specialist gasses inside
Slide 22: UK & US facilities
UK & US facilities • HQ, technical centre and 22,000 sq.ft production facility in Bicester, Oxon, UK • 25,000 sq.ft production facility in Martinsville, Virginia, USA © 2023 All content is confidential and remains the property of Hardide plc 22
Slide 23: History of Hardide
History of Hardide 2020 2000 2003 2005 2016 2017 Relocated New Company Floated US facility Airbus to Bicester larger UK formed on AIM opened approval site Leading global innovator and developer of advanced Tungsten Carbide based metal coatings Strong IP portfolio: 6 patents registered since incorpor
Slide 24: Hardide plc
Hardide plc Hardide developed and The coating does what commercialised a patented others can’t: coating CVD tungsten carbide nano- complex shapes, both inside structured coating with a and outside and non-line of unique combination of sight areas properties Customers and developments: all major oil
Slide 25: Hardide family of coatings
H ’ family of coatings Coating hardness/toughness/thickness can be tailored to a specific application requirements Type Hardness Toughness Thickness Applications Hardide-H Self-sharpening 3000 – 3500 Hv Satisfactory 5…10 μm “Ultra-Hard” blades Hardide-T Typically 50 Oil tools, pumps, 1100 – 1600 Hv
Slide 26: Hardide coating technology
Hardide coating technology Nano-structured, Coating is crystallised atom-by-atom tungsten carbide from gases by Chemical Vapour metal-matrix Deposition (CVD) coatings that significantly Hardide does what other coatings extends the life of can’t: uniformly coats complex shapes, critical parts and bot
Slide 27: Hardide CVD coating reactor
Hardide CVD coating reactor © 2023 All content is confidential and remains the property of Hardide plc 27
Slide 28: Coats internal surfaces and complex shapes
Coats internal surfaces and complex shapes © 2023 All content is confidential and remains the property of Hardide plc 28
Slide 29: International accreditations
International accreditations Accredited to various international standards:- Aerospace quality management system: AS9100 RevD Nadcap (Gold Merit status) (the global aerospace process approval standard) Quality management system: ISO 9001:2015 Environmental standard: ISO 14001:2015 © 2023 All content
Slide 30: Summary: Positioned well for significant future growth
Summary A unique coating technology that fills a major gap in the range of other coating companies: Coats uniformly where others cannot: Enables blue-chip Strong revenue growth Proven technology with engineering companies over 4 years before ➢complex shapes coating facilities in UK make globally COV