Highcom Limited · ASX:HCL
Highcom — XTEK — Investor Presentation (October 2023)
25 slides from Highcom's investor presentation, Oct 16, 2023
Slide 1: XTEK Ltd Investor Update
XTEK LTD INVESTOR UPDATE 16 OCTOBER 2023 PRESENTED BY: SCOTT BASHAM GROUP CHIEF EXECUTIVE OFFICER
Slide 2: Presentation Agenda
Presentation Agenda • Corporate Snapshot • Group Overview • Technology Division • Ballistics Division • FY23 Results Highlights • News Updates • Strategic Growth Strategy • Global Tailwinds Continue • FY24 Key Execution Priorities • FY24 Opportunity Pipeline & Outlook XTEK LTD | INVESTOR PRESENTATIO
Slide 3: XTEK Limited Corporate Snapshot
XTEK Limited Corporate Snapshot Capital Structure (30 June 23) Shares Outstanding 101,761,703 0.80 2.50 12 Month Share Price Range A$0.27 – A$0.765 0.8 2.50 0.70 Cash Balance & Borrowings (30 June 23) 0.7 2.00 Cash Balance A$6.9m 0.60 2.00 Borrowings A$ Nil 0.6 Traded Volume (millions) Senior Execut
Slide 4: Group Overview
GROUP OVERVIEW XTEK GROUP IS AN ASX LISTED INTERNATIONAL DEFENCE INDUSTRY COMPANY. THE GROUP OPERATES IN TWO DISTINCT DIVISIONS – BALLISTICS & TECHNOLOGY. BALLISTICS DIVISION TECHNOLOGY DIVISION Designs, manufactures, and supplies world- Exclusively supplies, integrates, trains, and class, advanced
Slide 5: Technology Division Overview
Technology Division Overview Exclusively supplies, integrates, trains, and supports Small Uncrewed Aerial Systems (SUAS) and Sensor Payloads from world-leading US based drone company AeroVironment across the ANZ region. Key Customers: • Australian Department of Defence • Australian Police & National
Slide 6: Technology Division Product Offerings
Technology Division Product Offerings AeroVironmentTM is a US based global defence supplier specialising in Small Uncrewed Aerial Systems. XTEK is the exclusive distributor for AV’s Wasp, Puma AE, and Puma LE products across the ANZ region. XTEK LTD XTEK | INVESTOR PRESENTATION LTD | AGM PRESENTATIO
Slide 7: Technology Division Service Support Offerings
Technology Division Service Support Offerings That sale of maintenance support services, system integration, operator training and equipment spare parts continues to provide our Technology Division with regular profitable recurring revenue. We continue to support the Australian Army’s Wasp SUAS flee
Slide 8: Ballistics Division Overview
Ballistics Division Overview Locations: • Columbus Manufacturing Centre (CMC) • Adelaide Manufacturing Centre (AMC) (*relocating to US) • Adelaide Special Projects (R&D) (*relocating to US) • European Sales & Distribution Centre (SDC) • APAC Sales & Distribution Centre (SDC) Designs, manufactures, a
Slide 9: Ballistics Division US Manufacturing
Ballistics Division US Manufacturing Our Columbus Manufacturing Centre is a 65,000 square foot advanced ballistics manufacturing and distribution facility that is well positioned for large scale and time sensitive global supply needs. We make hundreds of thousands of lifesaving ballistic protection
Slide 10: Ballistics Division Australian Manufacturing
Ballistics Division Australian Manufacturing Our HighCom Australia Adelaide Manufacturing Centre (AMC) has been a world class research and development, prototyping, and advanced manufacturing facility. Patented XTclaveTM technology. Unique in the world products. To maximise the full commercial poten
Slide 11: Ballistics Division Australian R&D
Ballistics Division Australian R&D Our Adelaide Special Projects R&D team has created world-leading “next- generation” ultra-lightweight and high- performance hard armour plates with complex curvatures and geometries. They have also created our range of advanced “featherweight” NIJ Level 3A helmets,
Slide 12: FY23 Results Highlights Recap
FY23 Results Highlights Recap • Continued to execute on our Strategic Plan • Invested in our team to position ourselves to deliver into global market • Grew pipeline of opportunities to +$375m, with multiple opportunities on foot for delivery in FY24 and beyond. • Leveraged attractive sector fundame
Slide 13: FY23 Results – Revenue Growth Comparisons
FY23 Results – Revenue Growth Comparisons Revenue (A$m) Divisional Revenue Attribution (A$m) $60 FY23 89.4 $50 $52.7 FY22 58.2 $47.0 $40 36.7 FY21 28.3 $30 $20 FY20 42.7 $16.1 $10 $12.1 $11.1 FY19 37.9 $0 FY21 FY22 FY23 Technology Division Ballistics Division XTEK LTD | INVESTOR RESENTATION 13
Slide 14: FY23 Results – Key Metric Comparisons
FY23 Results – Key Metric Comparisons Gross Profit (A$m) EBITDA (A$m) Net Profit (A$m) FY23 33.7 FY23 10.9 FY23 6.1 FY22 27.4 FY22 9.0 FY22 5.7 FY21 8.1 FY21 -3.0 FY21 -4.0 FY20 8.6 FY20 0.8 FY20 0.3 FY19 6.9 FY19 0.6 FY19 0.2 Gross Margin (%) EBITDA Margin (%) Net Profit Margin (%) FY23 38% FY23 12
Slide 15: News Update - Group Senior Management Changes Announced
News Update - Group Senior Management Changes Announced Vince Creagh Head of Technology Division to add Group COO role to current responsibilities. WEF 1 Nov 23 Laurie Gardiner Head of Corporate Services to retire after 20 years of dedicated service. WEF End Dec 23 Todd Ashurst New HighCom VP Intern
Slide 16: News Update - Technology Division New Order Wins
News Update - Technology Division New Order Wins • Received a new $3.4m SUAS Spare Parts Order from Defence, announced 12 Jul 23. • Spares used for “WASP” SUAS fleet under existing multi-year Support Contract. • Current Support Contract runs to 30 Jun 23, with potential +1-year extension options bei
Slide 17: News Update – Ballistics Division New Order Wins
News Update – Ballistics Division New Order Wins • XTEK’s HighCom received New A$2.6m Ballistic Armour Order, announced 17 Jul 23. • Purchase Order for international supply of specialist ballistic armour products • Many thousands of individual high-performance items provided • Shipment completed to
Slide 18: News Update - Proposed Name Change to HighCom Ltd (HCL)
News Update - Proposed Name Change to HighCom Ltd (HCL) • Proposed Name Change from XTEK Ltd (ASX:XTE) to HighCom Ltd (ASX:HCL). • Shareholders to vote on Name Change at AGM on 23 Nov 23. • Unifies parent company name with US and International subsidiary names. • Leverages growing HighCom global bra
Slide 19: News Update - Relocation of XTclave Capabilities to HighCom USA
News Update - Relocation of XTclave Capabilities to HighCom USA • XTclave to be relocated to HighCom facility in Columbus, Ohio, USA. • Adelaide based Manufacturing & R&D to close by End Dec 23. • Relocation to be completed during Q1 2024. • Move maximizes potential for unique XTclave ultra-lightwei
Slide 20: Strategic Growth Strategy
STRATEGIC GROWTH SRATEGY LASER SHARP FOCUS ON OUR CORE MARKETS AND CUSTOMERS, AND A CLEAR STRATEGY FOR CONTINUED GROWTH AND SUCCESS: REINFORCE SUCCESS SEEK ADJACENCIES CREATE OUR FUTURE Invest in the areas of our business Find new business opportunities that Invest in organic and inorganic that have
Slide 21: Global Tailwinds Look Set to Continue in FY24
Global Tailwinds Look Set to Continue in FY24 • Ongoing uncertainty in Europe, continuing tensions in the South China Sea, and now the developing situation currently occurring in the Middle East. • Instability continues to drive both short-term supply demand, and long-term strategic investment to up
Slide 22: FY24 Key Execution Priorities
FY24 Key Execution Priorities • Relocating our XTclave & R&D capabilities and consolidating all all our manufacturing capabilities in the US by Q1 2024 • Launching new range of lightweight “contoured” body armour • Growing our presence in the Panel & Platform Armour vertical and acquiring new manufa
Slide 23: FY24 Opportunity Pipeline & Outlook
FY24 Opportunity Pipeline & Outlook The Group has an opportunity pipeline of leads at various stages of qualification worth more than $375m: • Technology Division – is pursuing multiple drone related Acquisition & Support Contract opportunities across the region valued >$75m; • Ballistics Division –
Slide 24: XTEK Ltd | Investor Presentation
XTEK LTD | INVESTOR PRESENTATION 24
Slide 25: Disclaimer
DISCLAIMER This presentation is given on behalf of XTEK Limited (XTEK) Information in this presentation is for general information purposes only, and is not an offer or invitation for subscriptions, purchase of recommendation of securities in XTEK. Certain statements in this document regarding the C