Laserbond Limited · ASX:LBL
Laserbond — Investor Presentation (March 2022)
25 slides from Laserbond's investor presentation, Mar 9, 2022
Slide 1: Investor Presentation
| INNOVATION | CONSERVATION Investor Presentation Wayne Hooper, CEO Matthew Twist, CFO March 2022 ASX: LBL
Slide 2: Disclaimer
DISCLAIMER No responsibility for contents of Investor Accuracy of projections and forecasts No offer to sell or invitation to buy Presentation This Investor Presentation may include certain This Investor Presentation does not, and should To the maximum extent permitted by law, statements, opinions,
Slide 3: 1H22 Performance Summary
1H22 Performance Financial Operational Strategy & Summary Performance Appendices Performance Prospects
Slide 4: 1H22 Performance Summary
1H22 PERFORMANCE SUMMARY NPAT Net Cash Flow Dividend $M $M Cents LaserBond’s stock 0.6 performance has 1.6 1.6 1.6 2.1 0.5 0.6 returned over 35% 1.4 1.2 *0.5 0.4 capital increase over 0.8 1.2 1.2 1.2 1.5 -0.2 -0.3 -0.3 0.5 0.5 0.6 0.6 -0.6 the 12 months to 4 0.2 -0.4 0.2 FY18 FY19 FY20 FY21 FY22 FY1
Slide 5: Financial Performance
1H22 Performance Financial Operational Strategy & Summary Performance Appendices Performance Prospects
Slide 6: Earnings to Dec 21
EARNINGS TO DEC 21 Sales Revenue EBITDA NPBT $M $M $M LaserBond’s 1H22 12.9 12.2 10.9 3.3 2.2 earnings results reveal 3.5 2.2 1.7 2.8 an underlying strength 8.4 in the business and its 7.2 10.5 11.3 11.8 13.4 1.6 2.1 2.7 3.1 3.4 1.2 1.6 1.6 1.7 1.9 success in adapting 0.6 0.2 FY18 FY19 FY20 FY21 FY2
Slide 7: Cash and Working Capital
CASH AND WORKING CAPITAL Cashflows from Operations Cash at Bank* Working Capital* $M $M $M Consistently strong cashflows from 2.3 3.0 3.7 8.8 9.2 operations have 4.9 5.4 6.1 7.3 4.0 5.9 underpinned 1.8 1.7 2.6 2.2 0.2 1.4 increasing levels of 0.2 0.6 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 1H22
Slide 8: Debt
DEBT Financial Liabilities Net Debt* HP & finance leases Total net debt $M $M $M 4.5 5.8 LaserBond’s balance Facility lease liabilities 4.3 Net debt ex facility lease liabilities 4.8 sheet is strong, with 4.4 4.9 low levels of net debt, 0.7 1.0 which can support its 5.9 5.3 0.5 -0.4 0.0 2.9 3.6 expa
Slide 9: Operational Performance
1H22 Performance Financial Operational Strategy & Summary Performance Appendices Performance Prospects
Slide 10: Services Division Overview
SERVICES DIVISION OVERVIEW Services Revenue Offers reclamation of worn industrial components using LaserBond® cladding and thermal spraying as well as high capacity welding, $M While Services machining and heat treatment to provide a complete service suite – 5.9 revenue increased typically extendi
Slide 11: Products Division Overview
PRODUCTS DIVISION OVERVIEW Products Revenue Manufactures products incorporating LaserBond® cladding applications, such as steel mill rolls, rotary feeders and a range of OEM consumables $M The marked rise in utilised across a breadth of industries 6.6 earnings from the Products division Revenue
Slide 12: Technology Division Overview
TECHNOLOGY DIVISION OVERVIEW Technologies Revenue Enables customers to bring LaserBond cladding technology in-house under $M long-tailed licensing agreements which cover equipment supply, technology There remains usage and the supply of associated consumables. enormous potential for the Technology
Slide 13: R&D Investment
R&D INVESTMENT R&D Investment LaserBond identifies opportunities for products and technologies in the natural LaserBond develops 1H22 $261,038 course of business, as customers request innovative products custom-designed solutions to wear life and technologies that problems FY21 $678,882 anticipate
Slide 14: Safety and the Environment
SAFETY AND THE ENVIRONMENT Safety The Environment Over three decades of Technology Operations operation, LaserBond • Rolling 12 month LTIFR has fallen • LaserBond’s R&D program aims to • ISO 14001 certification promotes has never had a over FY21 despite an almost 50% minimise the environmental sound
Slide 15: Strategy & Prospects
1H22 Performance Financial Operational Strategy & Summary Performance Appendices Performance Prospects
Slide 16: Strategy for Growth
STRATEGY FOR GROWTH Continued assessment of Installation of new LaserBond® potential acquisition targets to cladding cell in Melbourne operations expand footprint – QLD acquisition to service Victorian and Tasmanian The long-term completed in January 2022 markets Aggressive marketing plan for
Slide 17: Investment Rationale
INVESTMENT RATIONALE Strong Demand in Solid Business Culture of LaserBond’s business 1. 2. 3. Local and Offshore Foundations Innovation Markets model is founded on innovating to meet Year on year growth on all Business model founded on Accessing sizeable global specific customer metrics until
Slide 18: Appendices
1H22 Performance Financial Operational Strategy & Summary Performance Appendices Performance Prospects
Slide 19: Business Overview
BUSINESS OVERVIEW Exposure to recurring industry Services Division wear problems leads to research R&D Repair and refurbishing for better solutions & product New surface engineering LaserBond provides worn or damaged opportunities materials and application machine parts technologies advanced surface
Slide 20: LaserBond Snapshot
LASERBOND SNAPSHOT LBL SHARE PRICE INDEX MOVEMENT VS ASX200* (year ending 4/3/22) COMPANY INFORMATION 175 Incorporation 30/09/1992 150 LBL IPO 17/12/2007 125 Sydney, Melbourne, Adelaide, 100 Offices/sites ASX200 Brisbane 75 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb No of staff 123 * 5 March 20
Slide 21: Five-Year Earnings
FIVE-YEAR EARNINGS A$000 2017 2018 2019 2020 2021 1H22 Sales Revenue 13,751.4 15,648.1 22,667.2 22,177.3 24,664.5 13,378.1 Gross profit 7,186.0 6,962.1 10,742.7 11,522.8 12,588.0 7,263.4 Operating Expenses (4,730.1) (4,731.6) (5,845.1) 5,335.3) (6,204.3) (3,894.7) EDITDA 2,455.9 2,230.4 4,897.6 6,18
Slide 22: Five-Year Balance Sheet/Cash Flow
FIVE-YEAR BALANCE SHEET/CASH FLOW A$000 2017 2018 2019 2020 2021 1H22 Cash & Equivalents 2,011.6 1,379.1 2,192.5 3,997.7 4,907.9 14.730.0 Current assets 7,851.0 9,229.1 10,135.7 11,843.7 14,929.1 26,680.8 Non-current assets 2,776.6 3,398.0 6,265.5 11,759.7 14,601.8 14,279.2 Total assets 10,627.6 12,
Slide 23: Cladding Cast Iron
Case Study 1 CLADDING CAST IRON Problem Solution LaserBond’s proprietary technology to clad cast Cast iron, and in particular, white cast iron, is The minimal, localised heat input of LaserBond’s notoriously difficult to repair using traditional proprietary laser cladding technology substantially ir
Slide 24: Multiplying Wear-Life with Micro Clad
Case Study 2 MULTIPLYING WEAR-LIFE WITH MICRO CLAD® Problem Solution LaserBond worked with a A customer identified a significant wear issue on The customer needed a way to fabricate more customer to achieve component parts of a 720mmsolid bowl durable wear plates and coat wearing surfaces centrifuge
Slide 25: Further Information
Further Information: Matthew Twist Chief Financial Officer and Company Secretary (02) 4631 4500 matthewt@laserbond.com.au www.laserbond.com.au