Titomic Ltd · ASX:TTT
Titomic — Investor Presentation (October 2021)
37 slides from Titomic's investor presentation, Oct 15, 2021
Slide 1: Investor Presentation October 2021
For personal use only Investor Presentation October 2021
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Titomic Limited ACN 602 793 644 (“Titomic” or the “Company”) under any circumstances create an implication that there has been no change in the affairs of Titomic to provide summary information about Titomic and their activities
Slide 3: Titomic snapshot
Titomic snapshot For personal use only • Founded in 2014 to develop a new type of additive manufacturing process, developed with the CSIRO, using cold-gas spraying of metal particles to produce 3D structures • This patented process is known as Titomic Kinetic Fusion (TKF), which Titomic has exclusiv
Slide 4: Investment highlights
Investment highlights For personal use only Exceptional leadership team 1 High calibre team with belief in the potential of Titomic’s unique technology and the global experience, resident in US, Europe, Australia and Middle East Cold spray industrialisation in less than two years 2 Titomic is well p
Slide 5: Executive team
Together, we make it possible Executive team For personal use only Herbert Koeck Joanna Walker Max Osborne Dominic Parsonson Chief Executive Officer Chief Financial Officer Head of Engineering Head of Sales • Joined Titomic in June 2021 after 14+ years at • Extensive sales and marketing management •
Slide 6: Board
Together, we make it possible For personal use only Board Dr Andreas Schwer Mira Ricardel Dag W.R. Stromme Independent Non-Executive Chairman Independent Non-Executive Director Independent Non-Executive Director Global industry expertise • President - Europe & Middle East, Electro • Principal at The
Slide 7: Cold Spray industrialisation in less than two years
Cold Spray industrialisation in less than two years Metal additive manufacturing maturity index For personal use only 5 Time until industrial use Laser Beam PBF Current industrial use Electron Beam PBF 4 Wire Electric/Plasma Less than 2 years Arc Deposition 2 to 5 years More than 5 years Filament FD
Slide 8: Accelerated adoption driving growth
Accelerated adoption driving growth Adoption is accelerating in key manufacturing industries Metal additive manufacturing market size For personal use only 4,398 The percentage of businesses in key industries who either already apply or are considering applying AM technology increased from 36% in 20
Slide 9: Superior speed, size and sustainability
Superior speed, size and sustainability For personal use only Titomic Kinetic Fusion (TKF) Key Attributes of the TKF Process • Exclusive rights to commercialise a new form of cold spray additive manufacturing developed with CSIRO Speed • This process, called Titomic Kinetic Fusion (TKF), employs col
Slide 10: TKF Systems are operating today
TKF Systems are operating today For personal use only TKF1000 TKF9000 Titomic’s TKF Systems TKF1000 • Modular industrial-scale AM system • Designed for prototyping and low volume production tasks • Build volume of 1m3 TKF9000 • Located in Titomic’s Melbourne Bureau • Demonstration of Titomic’s abili
Slide 11: The Titomic difference
The Titomic difference Unmatched value, certainty and confidence For personal use only Our cutting-edge custom TKF systems unlock the potential to manufacture high-performance multi-metal parts on demand, to near-net shape. Aerospace Less welding Less material and forming than billet Better buy-to-f
Slide 12: Manufacturing made sustainable
For personal use only Manufacturing made sustainable Titomic is evolving metals manufacturing for the better. The green process uses less energy and fewer resources. • Cuts carbon emissions by up to 60%1 with no metal melting • Completely electrified and can run on 100% renewable energy • Reduces wa
Slide 13: Titomic's focus sectors make up 49% of AM machine sales
Titomic’s focus sectors make up 49% of AM machine sales For personal use only Other Titomic’s focus sectors Consumer Goods 9% 1% Space Mech Engineering 19% 9% Total market expected to Energy be $1.7 billion by 2025 4% 2020 Tooling Titomic targeting 49% of Dental 9% 4% Market Distribution this addres
Slide 14: Focus sectors and applications
Focus sectors and applications For personal use only We are targeting partnerships in high-value markets – from Primes to research institutes and Tier 1 and 2 suppliers Defence Aerospace & Space Other Applications Weapon Barrels Composite Mould Tooling Pipes & Tubes Ballistic Protection Functional C
Slide 15: Titomic parts
Titomic parts For personal use only Bulkhead penetrator Titanium Mounting Panel • Naval vessel application • Part built as one piece to near net shape. • Copper pipe can be passed through a steel bulkhead • No welding or forming required without any need to weld dissimilar metals • Reduction in mate
Slide 16: Company Technical Comparisons
Company Technical Comparisons US Companies Australian Companies For personal use only Company Ownership Public Public Private Private Private Public Public Cold Spray Wire Direct Digital Light Powder Bed Wire Arc Additive 3D Print type Kinetic Fusion Binder Jet Additive Deposition Synthesis Fusion M
Slide 17: Taking our technology to the world
Taking our technology to the world We’re on track to expand across Australia, Europe, North America and beyond. For personal use only Neos Titomic Tooling JV Saudi Arabia Production JV Titomic Europe Base UAE Tawazun JV Titomic Sales Office Technology Partnership Titomic USA Base Titomic Sales Shree
Slide 18: Technical Advisory Committee
Technical Advisory Committee For personal use only Leading technical expertise The Technical Advisory Committee Professor Rhys Jones AC Dr Richard Hannink Dr Airlie Chapman comprises subject matter experts • Previously Research Leader (Aircraft • Honorary Fellow at CSIRO Manufacturing • PhD degree f
Slide 19: Commercialisation progress
Commercialisation progress For personal use only In 2021 we: • Have increased our focus on joint ventures Develop Commercialise Scale with key customers to create continuous manufacturing and revenue streams, and CSIRO Technology Process Market Traction & Commercial share risk and reward development
Slide 20: Distinct revenue streams
5 distinct revenue streams For personal use only 1 Direct TKF Machine Sales 2 JV Partnerships 3 Powder Production/Sales 4 Consumables & Service • Each machine sale will lead to recurring • Titomic receives share of net profit of • Recurring revenue stream following on • Users of Titomic’s TKF system
Slide 21: Joint venture partnerships – more than a machine
Joint venture partnerships – more than a machine For personal use only Joint ventures allow both parties to share the risks and rewards. Titomic brings everything to the partner’s door: patented process, technology and custom system. Phase 1 - Design Phase 2 - Assembly Phase 3 - Production & Sales M
Slide 22: Joint venture partnerships
Joint venture partnerships A key commercialisation vehicle For personal use only JV progress Expected JV commercialisation timeline (# of JVs) • Multiple joint venture partnerships planned as at the end of FY21 14 • Prototype design work has already commenced on two of these signed partnerships • Fi
Slide 23: Why our partners are on board
Why our partners are on board By integrating a custom TKF system, supply chains become more local, responsive, resilient, agile For personal use only and sustainable. Why more companies are choosing additive manufacturing (AM) bureau services rather than buying their own system: 81% 48% 38% don’t wa
Slide 24: Our trusted customer base
Our trusted customer base For personal use only Aerospace Defence Other Tooling and Aerospace Tooling and Structures TKF Machine Customer MMI Grant Partner Tooling Joint Venture Light weighting of Vessels Research Industrialisation Partner MMI Grant Partner Tooling Prototyping Barrels & Ballistics B
Slide 25: Catalysts and milestones
Catalysts and milestones For personal use only HOA signed with Repkon to Accepted a $2.3M grant by the First product expected to be manufacture weapons system Australian Government to explore TKF delivered to end customers in barrels for space vehicles March 2023 under Repkon JV HOA signed with Neos
Slide 26: Unlocking unprecedented potential
Unlocking unprecedented potential Large & expanding market For personal use only Proven process & industry leading • Strong tailwind with additive manufacturing market technology platform set to grow by 29% to 20251 • Pioneering patented technology • Buoyed by rapid prototyping, faster turnaround, c
Slide 27: Equity Share Placement Offer
For personal use only Equity Share Placement Offer
Slide 28: Key details of the equity raise
Key details of the equity raise For personal use only • Seeking to raise approximately $8 million by way of an institutional placement, with the ability to accept oversubscriptions of up to $2 million (“Offer”) to support the commercialisation strategy through investment in joint ventures, establish
Slide 29: Sources and uses of funds
Sources and uses of funds For personal use only Sources $m Institutional placement 8.0 Share Purchase Plan 2.0 Total Sources 10.0 Uses $m Joint venture investment 2.6 Establishing offshore sales & operational 3.0 facilities Working capital 3.7 Transaction costs 0.7 Total Uses 10.0 Note: The above ta
Slide 30: Indicative timetable
Indicative timetable For personal use only Offer step Date Trading halt commences Wednesday, 13 October 2021 Placement bookbuild Wednesday, 13 October 2021 – Thursday, 14 October 2021 SPP Record Date Thursday, 14 October 2021 Trading halt lifted Friday, 15 October 2021 Settlement of new Placement sh
Slide 31: Key Risks
For personal use only Key Risks
Slide 32: Key risks
Key risks For personal use only Investing in an early-stage growth company such as Titomic should be considered highly speculative and involves numerous significant risks including Early stage growth company under capitalisation and risks to future revenue generation. Titomic makes no representation
Slide 33: Key risks (continued)
Key risks (continued) For personal use only Titomic will engage with a number of counterparties to successfully commercialise and exploit the Titomic Kinetic Fusion process. Such counterparties Counterparty risks include manufacturing equipment providers, robotics program contractors, metal powder p
Slide 34: Key risks (continued)
Key risks (continued) For personal use only The Company currently operates predominantly in the defence and aerospace sectors, including the tooling sector. The level of activity in these sectors will be influenced by external factors including supply and demand, exchange rates, the competitiveness
Slide 35: Appendix
For personal use only Appendix
Slide 36: Cash position at September 2021
Cash position at 30 September 2021 For personal use only $m Bank Balance (1 Jul 2021) 7.9 Add: receipts 1.1 • Last 12 months approximately $0.7m per month cash burn rate (to September 2021) Less: Payments (3.0) • Estimated cash position post capital raise (end of Bank Balance (30 Sept 2021) 6.0 Octo
Slide 37: Titomic Limited contact details
For personal use only Titomic Limited 3/270 Ferntree Gully Road, Notting Hill, Victoria 3168, Australia PO BOX 225, Mount Waverley, Victoria 3149, Australia info@titomic.com | titomic.com