Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Investor Presentation (July 2018)
33 slides from Advanced Braking Technology's investor presentation, Jul 27, 2018
Slide 1: Accelerated Entitlement Offer
ADVANCED BRAKING For personal use only TECHNOLOGY ACCELERATED ENTITLEMENT OFFER JULY 2018 1
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation is prepared by Advanced Braking Technology Limited (ABN 66 099 107 623) (ABT, the Company or the Issuer) to provide summary information about ABT. ABT is an Australian public company listed on the Australian Securities Exchange (ASX). Statements in
Slide 3: Company Overview
COMPANY OVERVIEW For personal use only Advanced Braking Technology Ltd (ABT), listed on the ASX (ASX:ABV), develops and distributes high performance, sealed brakes to the automotive, ASX Code ABV transport, and mining industries. Share Price A$0.003 The company’s founding product is the ABT Failsafe
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only NEW PRODUCT TO DRIVE GROWTH STRONG REVENUES – SET FOR GROWTH ABT launched their mass market product, the Terra Verging on break-even, the Company is underpinned by Dura ® polymer encased brake, in January 2018. ~A$8.0m in revenue (FY18 unaudited_ ). ABT’s
Slide 5: Key Products
KEY PRODUCTS For personal use only Exceedingly durable 4WD brake Maximum safety 4WD brake Fully enclosed design protects brake Fully enclosed design equipped with components failsafe technology Designed specifically for tough and rugged Exceptional reliability and durability environments
Slide 6: Our Valued Customers
OUR VALUED CUSTOMERS For personal use only July 2018 All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com 6
Slide 7: Accelerated Entitlement Offer
For personal use only ACCELERATED ENTITLEMENT OFFER 7
Slide 8: Accelerated Entitlement Offer
ACCELERATED ENTITLEMENT OFFER For personal use only One (1) for three (3) pro-rata, accelerated non-renounceable The Offer entitlement offer Issue Price $0.003 (0.3 cents) One (1) for two (2) free attaching option for every share Free Attaching subscribed for under the Offer. Option will be listed i
Slide 9: Accelerated Entitlement Offer Timetable
ACCELERATED ENTITLEMENT OFFER TIMETABLE For personal use only Trading Halt Request, Announcement of Entitlement Offer, Appendix 3B, Pre market Open - Wednesday Cleansing Notice and Offer Document 25th July 2018 Institutional Offer Wednesday 25th July 2018 Announcement of results of Institutional Off
Slide 10: Use of Funds
USE OF FUNDS For personal use only Phase 1: Australia: Roll-out Terra Dura Domestic blue-chip customers and capitalising on successful D_ -Max trial Enter Europe via an Isuzu distributor Phase 2: Significant expansion in Canada Continued application development and entry of large global markets Ente
Slide 11: Use of Funds – Phase 1: Australia Roll-out Terra Dura
USE OF FUNDS – PHASE 1 AUSTRALIA ROLL-OUT TERRA DURA For personal use only Strive to multiply the Australian revenue over a four-year period Terra Dura® expands addressable market from 50 underground to >200 open cut Market mines $40m+ market opportunity Terra Dura - LandCruiser 70 is most c
Slide 12: Use of Funds – Phase: Enter Europe
USE OF FUNDS – PHASE 1 ENTER EUROPE For personal use only Significant opportunity across Europe for Isuzu D-Max application Finalise relationship with Northern Europe distributor Market Additional European Distributor has interests and opportunities in Germany and Eastern Europe ABT believes
Slide 13: Use of Funds – Phase: Expansion Canada
USE OF FUNDS – PHASE 2 EXPANSION CANADA For personal use only Immense revenue potential given both the size of the Canadian mining market and Market the volumes underpinning the North American Light Duty Vehicles A$60m+ market opportunity Products Terra Dura application for a selected range of
Slide 14: Use of Funds – Phase: Enter Chile
USE OF FUNDS – PHASE 2 ENTER CHILE For personal use only Significant opportunities across the vast Chilean mining market Market Access a few dozen mining operations with fleets sizes of 200 – 2000 vehicles $40m+ market opportunity Terra Dura – Mitsubishi Triton Products Failsafe and Emerge
Slide 15: ABT Transformation
For personal use only ABT TRANSFORMATION 15
Slide 16: ABT Transformation FY18–FY22
ABT TRANSFORMATION FY18 – FY22 For personal use only ABT has developed a robust growth strategy, founded on systematic product & vehicle application development and regional expansion via strategic partners ABT Failsafe ABT Failsafe & Terra Dura + + Australia, Europe, Canada Australia & Chile = = $2
Slide 17: ABT Transformation FY18–FY22: Revenue Mix
ABT TRANSFORMATION FY18 – FY22 use only REVENUE – REGION REVENUE – PRODUCT REVENUE – TD APPS 0% 30% 40% For personalFY18 86% 70% 5% 100% Aust Global Failsafe Terra Dura Spares & Consumables LandCruiser 12.5% 13% 10% 35% 27% 10% FY22 19% 65% 14% 17% 65% 13% Failsafe Terra Dura Aust Global LandCruiser
Slide 18: Growth Pathway
GROWTH PATHWAY For personal use only Jan 2018 Oct 2018 June 2019 Launch of Terra Launch of Terra Launch of Terra Dura Toyota Dura Isuzu D-Max Dura Mitsubishi LandCruiser 70 Triton May 2018 Dec 2018 Mid 2020 Terra Dura trial orders First shipment Launch of first from numerous Blue to Isuzu Canadian t
Slide 19: Our Transformation and Vision
OUR TRANSFORMATION AND VISION IP BACKED PRODUCTS FOR GLOBAL APPLICATIONS For personal use only From … To … A single product line Multiple product lines Niche market (underground mining) Mass market (harsh environments) An order taker Innovative solution provider A domestic focus A global leader High
Slide 20: Market Opportunities: Mining & Beyond
MARKET OPPORTUNITIES For personal use only MINING & BEYOND 20
Slide 21: Market Opportunities: Mining & Beyond
MARKET OPPORTUNITIES MINING & BEYOND For personal use only UNDERGROUND MINES TERRA DURA® FORESTRY SURFACE MINES IMMEDIATE MARKET OPPORTUNITY 100,000+ BRAKES PER ANNUM = A$550m+ AGRICULTURE CONSTRUCTION July 2018 All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com 21
Slide 22: Board and Management
BOARD AND MANAGEMENT For personal use only PETER HILDEBRANDT DAGMAR PARSONS GRAHAM ATKINSON Chief Executive Officer Non-Executive Chairman Chief Financial Officer Expansive international Dagmar has more than 25 Fellow Certified Practicing management experience in years’ experience in the mining Acco
Slide 23: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only SCALABLE SUPPLY CHAIN STRENGTHENED DISTRIBUTION STRONG IP PARTNERSHIPS PROGRESSING VALUATION: UPSIDE GLOBAL POTENTIAL July 2018 All Rights Reserved © www.advancedbraking.com | www.terradurabrakes.com 23
Slide 24: Appendix
For personal use only APPENDIX 24
Slide 25: ABT Failsafe
ABT FAILSAFE Integrated failsafe braking system – THE SAFETY For personal use only brake applied when: door opened, ignition off, seatbelt off, emergency SOLUTION CAPABILITIES button activated Fully enclosed wet brake Regulation mandates “ FAILSAFE” capabilities for vehicles used in SELLING POINT un
Slide 26: Terra Dura
TERRA DURA THE GROWTH Polymer encased, fully sealed, dry For personal use only CAPABILITIES brake DRIVER “Plug and Play” installation Encased brake protects components, enhancing durability, significantly SELLING POINT reducing maintenance costs Reduced risk of brake failure IMMEDIATE Surface mines,
Slide 27: Terra Dura Competitive Advantages
TERRA DURA COMPETITIVE SAFETY LESS DOWNTIME For personal use only Top braking performance Removes the need for ADVANTAGES remains completely frequent servicing to unaffected by water, replace worn or mud, or contaminants. damaged brake parts. LOWER COSTS RUNNING ENVIRONMENTALLY FRIENDLY Labo
Slide 28: Terra Dura Test Results
TERRA DURA TEST RESULTS For personal use only ROUGH ROAD TESTING DUST INGRESS TESTING • Loops of gravel road with mud and water holes • Test (IP6x standard) to determine product seal • In total, over 6,000 km of both rough road and quality normal road use RESULTS • Reached high speeds of up to 100km
Slide 29: Terra Dura Pay Back
TERRA DURA PAY BACK For personal use only • Terra Dura® can save A$40,000+ over 5 years, per vehicle = Standard Rear Brake - Labour • Payback in as little as 3 months KEY = Standard Rear Brake - Parts = Terra Dura® Brake $80,000 (PURCHASE, PARTS & LABOUR) $70,000 $60,000 $50,000 COST $40,000 $30,000
Slide 30: Trends and Opportunities
TRENDS AND OPPORTUNITIES TERRA DURA For personal use only MINING APPLICATIONS The mining industry is experiencing a strong resurgence, with Vehicle sales in Australia hitting record commodity prices increasing and companies increasing their spend highs. Terra Dura® will initially supply for: globall
Slide 31: Our Focus
SUPPLY CHAIN Increase production OUR FOCUS Establish an Enhanced Fulfillment Process = volumes at strong margins For personal use only The company has achieved targeted production run rates DISTRIBUTION Broad roll-out of Terra for first Terra Dura® applications and prepares to fulfill a significant
Slide 32: Business Model: Lean and Scalable
BUSINESS MODEL LEAN AND SCALABLE For personal use only OUTSOURCED MANUFACTURING ABT FOCUSES ON: DISTRIBUTORS Manufacturer(s) assemble and Direct sales 18+ distributors globally ship direct to end customer or Partner relations to drive international distributor Research & Development growth
Slide 33: Global Distributors
GLOBAL DISTRIBUTORS For personal use only ABT is well-positioned to take innovative solutions to market and capture additional business development opportunities globally with: ➔ 18+ distributors across key global markets. ➔ Additional distributors to be engaged to enhance market penetration. 33 Jul
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