Highcom Limited · ASX:HCL
Highcom — ASX Small and Mid-Cap Conference 2020
18 slides from Highcom's conference presentation, Sep 9, 2020
Slide 1: XTEK to Present at ASX Small and Mid-Cap Conference
Release to the Australian Securities Exchange XTEK to Present at ASX Small and Mid-Cap Conference Wednesday, 9 September 2020: XTEK Limited (ASX:XTE) (“XTEK” or the “Company”) is pleased to advise that is has been selected to present at the ASX Small and Mid-Cap Conference. Philippe Odouard, Managin
Slide 2: XTEK ASX Small and Mid-Cap Conference
XTEK ASX SMALL AND MID-CAP CONFERENCE September 2020 www.XTEK.net | ASX: XTE www.XTEK.net | 1800 500 032 | ABN 90 103 629 107
Slide 3: Protecting the Frontline Protectors
WORLD CLASS SOLDIER SOLUTIONS Supplier1 of SUAS; ongoing Ballistic shields & provider of SUAS repair and platform armour maintenance services to the ADF Helmets XTatlasTM software interfaces into existing systems Soft armour (e.g. SUAS, ground robots) Hard armour plates SARBI2 retrofitted to ground
Slide 4: 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 global markets soldier solutions and expertise www.XTEK.net | 1800 500 032 | ABN 90 103 629 107 XTEK Investor Presentation (
Slide 5: Financial Overview & Outlook
FINANCIAL OVERVIEW & OUTLOOK XTEK expects to achieve record FY20 revenue, underpinned by HighCom contribution 1 in the US and ongoing SUAS supply and support XTEK Revenue1 (A$m) Strong Financial Outlook 42.7 37.9 Medium to long A$100m ~30% term target Revenue Gross Margin 17.3 9.0 Underpinned by: FY
Slide 6: Higher Margins Driven by Product Mix
HIGHER MARGINS DRIVEN BY PRODUCT MIX Future margins are expected to increase, underpinned by a shift to proprietary products: ▪ Ballistic sales directly into the US law enforcement market ▪ Sales of high margin ballistic solutions, incorporating the expansion of proprietary product lines (XTclave TM
Slide 7: Well-Defined Ballistics Strategy
WELL-DEFINED BALLISTICS STRATEGY 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 Ballistic plates Up to 30% lighter2 R&D investment and Increased product life
Slide 8: Commercialisation & Growth Strategy
COMMERCIALISATION & GROWTH STRATEGY XTEK is executing on its ballistics commercialisation strategy, with a clear path to value upside Manufacturing capability Capitalise on significant value opportunities & integrated US business domestically and globally Target large global orders Leverage ✓ First
Slide 9: Actionable Intelligence Solution
ACTIONABLE INTELLIGENCE SOLUTION Commercialisation strategy builds upon XTEK’s capability to provide a complete system for a comprehensive real time actionable solution ▪ XTatlas™ allows for the rapid production of real time, accurate, geo-referenced 3D mapping from a video feed ▪ Enables comparison
Slide 10: Actionable Intelligence Market Channels
ACTIONABLE INTELLIGENCE MARKET CHANNELS Established networks with broad access to customer channels provide significant opportunities to commercialise the XTatlasTM software applications, with demonstrations and discussions ongoing SUAS supply and maintenance Robots with SARBI3 ▪ Leading full-servic
Slide 11: Advanced Composite Solutions
ADVANCED COMPOSITE SOLUTIONS XTclaveTM technology has unique technical advantages that can be leveraged into other applications and applied in new sectors, with space applications presenting an attractive opportunity XTclaveTM key advantages for space applications: ▪ Produces materials with higher s
Slide 12: Favourable Global Defence Themes
FAVOURABLE GLOBAL DEFENCE THEMES XTEK is currently servicing clients across key target markets including US, Europe and Australia - where spending budgets are typically uncorrelated with markets Military expenditure and market dynamics in key target markets Europe2 CAGR : ~5% p.a. ~US$282bn Accounts
Slide 13: Pipeline Opportunities
PIPELINE OPPORTUNITIES Strong confidence in >A$30m of FY21 revenue, with an additional ~A$70m+ of near-term opportunities being targeted, and well funded to accelerate further growth opportunities FY21 forecast opportunities underpins revenue ✓ ‘Recurring’ US ballistic sales of ~A$14m p.a. (based on
Slide 14: 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 Focused on market US expansion Actionable Favourable Strong leading soldier a
Slide 15: Appendix
APPENDIX 14
Slide 16: Corporate Overview
CORPORATE OVERVIEW Trading information1 Share price performance (YTD) Share price (3 September 2020) A$0.695 Share price (A$) Volume (k) No of shares 70.6m 1.00 700 Market capitalisation A$49.1m 0.90 630 Net cash2 A$15.7m 0.80 560 XTEK Board 0.70 490 Uwe Boettcher Non-Executive Chairman Philippe Odo
Slide 17: Key Catalysts
KEY CATALYSTS Significant news flow and order wins expected to be announced over the next 12 months (and beyond) ▪ Delivery of ~A$2m of ballistic plates to Finnish Defence (4Q CY20) ▪ Appoint additional global defence / law enforcement sales resources (4Q CY20) including ex SOCOM US deputy commander
Slide 18: 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