BATM Advanced Communications Ltd. · LSE:BVC
BATM Advanced Communications — FY2020 Earnings Presentation
26 slides from BATM Advanced Communications's earnings presentation, February 2021
Slide 1: Full Year Results
Full Year Results February 2021
Slide 2: Disclaimer
Disclaimer The information contained in this document has largely been extracted from the announcement of the Company’s final results for the twelve months to December 2020. The information contained in this document and the accompanying form of presentation has not been independently verified and n
Slide 3: FY 2020 Summary
FY 2020 Summary Transformational Long-term Acceleration of Group revenue Group gross EBITDA doubled $20.1m cash Board resolves to year, with investments and beneficial grew by 49% to margin improved to $19.7m (2019: from operations declare a significant operational market and $183.6m (2019: by 620bp
Slide 4: Group Strategy
Group Strategy BATM brings high-technology solutions to complex, mission-critical applications in the global sectors of bio-medicine and networking BATM Innovation Engine Growth Markets Taking world-leading Delivering Shareholder expertise and IP to Value mass-market success BIO-MEDICAL EPS growth V
Slide 5: Focus on Value Creation
Focus on Value Creation Diversification of risk and opportunity across business units Capital allocated to investments considered to have highest long- Capital allocation term returns, based on size of market and our ability to differentiate and commercialise Utilise shared Group resources, IP, expe
Slide 6: Financial Review
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Slide 7: FY 2020 Financial Summary
FY 2020 Financial Summary 2020 2019 Change $m $m Revenue 183.6 123.4 +49% Gross profit 60.7 33.1 +83% Gross margin 33.1% 26.9% +620bps Operating profit 14.2 4.5 +218% Adj.* operating profit 15.0 5.3 +183% EBITDA 19.7 9.8 +100% Cash from operations 20.1 8.4 +138% Earnings per share (cents) 2.22¢ 0.93
Slide 8: Bio-Medical
Bio-Medical ($000’s) 2019 2020 Diagnostics Unit 2020 2019 25.0 20.0 22.9 Revenues 128,682 64,436 15.0 10.0 5.5 5.0 0.6 7.4 Cost of sales 81,827 49,072 0.0 Gross profit * 46,855 Revenue ($m) Operating Profit ($m) 15,364 2019 2020 Eco-Med Unit Gross margin 36.4% 23.8% 45.0 Operating expenses 35.0 39.8
Slide 9: Networking & Cyber
Networking & Cyber 2020 2019 Networking & Cyber Division ($000’s) 60.0 59.0 Revenues 54,884 58,960 50.0 54.9 Cost of sales 40,616 40,757 40.0 Gross profit * 14,268 18,203 30.0 Gross margin 26.0% 30.9% 30.9 26.0 Operating expenses 20.0 - R&D 5,628 4,748 10.0 - S&M 4,767 5,631 5.1 0.0 - G&A 8,106 6,06
Slide 10: Investments and Disposals
Investments and Disposals Ador Diagnostics (Associate) • Investment of $10m in the period, of which $3m from BATM, to expedite development of new RCA- based diagnostics system • Enterprise Value of $54.5m • Following the investment, BATM holds 36.7% of Ador Diagnostics • $0.6m positive re-valuation
Slide 11: Capital Allocation Priorities
Capital Allocation Priorities 3. Returns to 1. Investment 2. Acquisitions Shareholders ▪ Our primary use of capital is ▪ Targeting strategic ▪ Progressive dividend policy investment in research and acquisitions, principally in and expect to increase development, our go-to- the biomedical sector, div
Slide 12: Business Review: Bio-Medical Division
Business Review BIO-MEDICAL DIVISION DIAGNOSTICS ECO-MED DISTRIBUTION BATM Full Year 2020 Results 12
Slide 13: Bio-Medical FY 2020 Highlights
Bio-Medical FY 2020 Highlights Diagnostics (Revenue +318%) ▪ Long-term investment in molecular diagnostics enabled rapid delivery of solutions based on emergence of new pathogens ▪ Expanded production capacity of Adaltis facility (Rome) ▪ COVID-19 antibody and antigen test kits developed and deploye
Slide 14: Diagnostics Platform
Diagnostics Platform In-vitro Diagnostics Instruments (systems) and Reagents (assay kits) To detect viral infections, diagnose immune system diseases and measure human hormone responses Molecular Diagnostics MicroELISA Clinical Chemistry Application of molecular biology Qualitative and quantitative
Slide 15: Diagnostics – Competitive Edge
Diagnostics – Competitive Edge BATM’s differentiated approach ▪ Infrastructure of knowhow that enables rapid development of new diagnostics ▪ Ability to make both instruments and reagents enables development of comprehensive systems ▪ Focus on point of care concept (not mega labs) ▪ Specifically des
Slide 16: Bio-Medical Division Outlook
Bio-Medical Division Outlook ▪ Sustained momentum expected in Diagnostics in 2021 ▪ Testing expected to remain a key component of pandemic management measures globally, improving disease monitoring and controls, improving health outcomes and providing a tool to assist in re-opening of economies ▪ Or
Slide 17: Business Review: Networking & Cyber Division
Business Review NETWORKING & CYBER DIVISION TELCO SYSTEMS CYBER NGSOFT BATM Full Year 2020 Results 17
Slide 18: Networking & Cyber Overview
Networking & Cyber Overview Network Market Drivers Focus Areas Goals Network Function Network providers and owners need Virtualisation (NFV) Significant growth over next 5 years robust and cost-effective solutions to • An open software suite for meet demands from consumers, automating and managing t
Slide 19: CE & Cyber FY2020 Highlights
CE & Cyber FY2020 Highlights Carrier Ethernet ▪ Reduction in revenue from the installation and servicing of equipment. However, long-term drivers for higher bandwidth remain very strong ▪ Continued product development in the year, including expanding multiservice business router series to support ho
Slide 20: NFV – Competitive Edge
NFV – Competitive Edge BATM’s differentiated solution ▪ Hardware agnostic and ‘bring your own device’ model ▪ Only solution that can run on both Intel (x86) and Arm for ultra low-cost networks (Internet of Things) ▪ Low cost but high-performance solution, scalable up and down ▪ Easy to deploy and ma
Slide 21: NFV FY 2020 Highlights
NFV FY 2020 Highlights Significant technical and commercial progress in 2020 NFV Time • NFVTime is a software solution Secured first tier 1 customer, Successful proofs-of-concept Meeting and exceeding (operating system) that: with European tier 1 operators, performance expectations, PCCW Global, for
Slide 22: Group Outlook
Group Outlook ▪ BATM enters 2021 with confidence and momentum in our key focus areas of diagnostics and NFV ▪ Sustained demand for diagnostics solutions as a key tool in pandemic and disease management ▪ Bio-Medical division expected to remain the largest contributor to Group revenues in 2021 ▪ NFV
Slide 23: Appendix
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Slide 24: FY 2020 P&L
FY 2020 P&L 2020 2019 ($000’s) % rev. % rev. Revenues 183,566 123,396 Gross profit* 61,123 33.3 33,567 27.2 Operating expenses Sales and marketing expenses 20,197 11.0 16,307 13.2 General and administrative expenses 15,884 8.7 11,753 9.5 Research and development expenses 10,258 5.6 6,772 5.5 Other o
Slide 25: FY 2020 Balance Sheet
FY 2020 Balance Sheet 31 Dec 2020 31 Dec 2019 ($000’s) Cash and financial assets 53,378 44,838 Total assets 200,106 173,830 Total liabilities 81,343 69,414 Net assets 118,763 104,416 BATM Full Year 2020 Results 25
Slide 26: FY 2020 Cash Flow
FY 2020 Cash Flow 2020 2019 ($000’s) Net cash from operations 20,063 8,439 Net cash used in investing activities (5,481) (2,582) Net cash from (used in) financing activities (3,249) 15,482 Net Increase in cash and cash equivalents 9,729 20,066 Cash and cash equivalents at the beginning of the year 4
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