Slide 1: XTEK Investor Presentation March 2020
XTEK INVESTOR PRESENTATION March 2020 www.XTEK.net | ASX: XTE www.XTEK.net | 1800 500 032 | ABN 90 103 629 107
Slide 2: Protect the Frontline Protectors
PROTECT THE FRONTLINE PROTECTORS www.XTEK.net | 1800 500 032 | ABN 90 103 629 107
Slide 3: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS XTEK is well positioned for growth, underpinned by accelerated commercialisation of high value proprietary solutions and favourable market sentiment within the domestic and global defence industry Favourable Focused on market US expansion Actionable Strong defence market le
Slide 4: Favourable Defence Sector Themes
FAVOURABLE DEFENCE SECTOR THEMES XTEK is well positioned to capitalise on favourable trends in the global defence sector, where spending budgets are typically uncorrelated with markets Military expenditure and market dynamics in key target markets Europe2 Global (2018) CAGR : ~5% p.a. ~US$294bn ~US$
Slide 5: Corporate Overview
CORPORATE OVERVIEW Defence spending has historically shown to be resistant to economic downturns, which is further evidenced by recent contracts secured by XTEK Trading information Share price performance (1 month) Share price (20 March 2020) A$0.50 Share price (A$) Volume (k) No of shares 53.2m 0.8
Slide 6: Providing Soldier Solutions
PROVIDING SOLDIER SOLUTIONS XTEK has a range of high value front line solutions and services for the defence, law enforcement and government sectors globally Supplier1 of WASP and Ongoing provider of SUAS PUMA systems repair and maintenance services to the ADF Ballistic shields and platform armour H
Slide 7: Key Achievements Over the Last 6 Months
KEY ACHIEVEMENTS OVER THE LAST 6 MONTHS Achieved first commercial order of XTclaveTM manufactured products, following the opening of the manufacturing centre in Feb 2020 Expanded into the US including acquisition and integration of HighCom, and subsequently launched new products1 at SHOT Show® in La
Slide 8: US Update
US UPDATE XTEK has expanded into the US market following the acquisition of HighCom in July 2019, leveraging the established networks and reputation to accelerate the commercialisation of its advanced XTclave manufactured products US achievements and outlook ✓ Acquired existing profitable ballistic
Slide 9: XTEK Strategy
XTEK STRATEGY XTEK is focused on commercialising its world class soldier solutions in key target markets globally Clear pathway to Focused on high value Significant experience and global markets soldier solutions expertise Focused on high value export markets Proprietary state-of-the-art technologie
Slide 10: Ballistic Solutions
BALLISTIC SOLUTIONS
Slide 11: Ballistic Solutions
BALLISTIC SOLUTIONS XTEK’s ballistic solutions address key market needs and penetrate large global markets worth more than US$11bn p.a.1 and growing at more than 5% CAGR1 XTEK’s ballistic armour solutions Soft armour Hard armour plates Helmets Platform armour FY19 sales2 ✓ ✓ ✓ ✓ # products Multiple
Slide 12: Clear Path to Capture Significant Value
CLEAR PATH TO CAPTURE SIGNIFICANT VALUE Clear pathway to commercialise XTclaveTM manufactured products with potential major customers completing the comprehensive testing and validation process – with new manufacturing centre complete XTclaveTM pathway to value Extensive and comprehensive customer t
Slide 13: Commercialisation and Growth Strategy
COMMERCIALISATION AND GROWTH STRATEGY XTEK’s commercialisation strategy has a clear pathway to value upside – underpinned by the innovative state-of-the- art XTclaveTM process technology which enables the delivery of high performance and lightweight ballistic solutions Manufacturing capability Capit
Slide 14: Actionable Intelligence
ACTIONABLE INTELLIGENCE
Slide 15: XTatlas is a World Class Offering
XTatlasTM IS A WORLD CLASS OFFERING XTatlasTM is a market leading software application that provides actionable intelligence and can be retrofitted to existing hardware, providing a value adding and rapidly scalable solution Application allows for the rapid production of ▪ Use in combat ensures inst
Slide 16: SUAS Channels to Market
SUAS CHANNELS TO MARKET The supply and maintenance of SUAS remains a focus for XTEK, with strong networks and broad access to SUAS customer channels XTEK is a leading full-service supplier of Small Unmanned Aerial Systems, able to provide ▪ Completed first deliveries of WASP AV SUAS products to the
Slide 17: Other Opportunities
OTHER OPPORTUNITIES
Slide 18: Other Product Development and Initiatives
OTHER PRODUCT DEVELOPMENT AND INITIATIVES XTEK provides a range of other solutions through its advanced technologies and distribution agreements Space satellite & launch systems Robots (with SARBI) Other solutions and services Leverages unique advantages Real-time data from ground level, with Lightw
Slide 19: Financial Performance and Outlook
FINANCIAL PERFORMANCE AND OUTLOOK
Slide 20: 1H FY20 Financial Highlights
1H FY20 FINANCIAL HIGHLIGHTS XTEK achieved record revenue, underpinned by the SUAS supply and maintenance and 3 months of HighCom revenue1, and invested significantly into future growth2 to place XTEK in a strong position going forward Revenue1 (A$m) Gross Profit (A$m) +91% +62% 16.0 2.9 1.7 1.8 8.4
Slide 21: Targeting Enhanced Gross Margins
TARGETING ENHANCED GROSS MARGINS Future margins are expected to increase – underpinned by: ▪ Impact of HighCom revenue ▪ Sales of high value ballistic solutions and actionable intelligence software ▪ Maintenance revenues from servicing SUAS FY19 revenue mix Near-to-medium term revenue mix Long term
Slide 22: Outlook
OUTLOOK XTEK is well positioned to execute its operational strategy in FY20 and capitalise on further growth opportunities Key Catalysts ❑ Commence exporting XTclaveTM manufactured products into the US market ❑ Achieve further commercial orders of XTclaveTM products ❑ Achieve commercial order of XTa
Slide 23: Disclaimer
This document is issued by XTEK Limited, ABN 90 103 629 107 (“XTEK”). It is intended only for those persons to whom it is delivered personally by or on behalf of XTEK (being 'wholesale clients' under the Corporations Act who are also sophisticated investors and persons to whom an offer of securities