Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Investor Presentation (July 2016)
16 slides from Advanced Braking Technology's investor presentation, Jul 27, 2016
Slide 1: Advanced Braking Technology Limited Investor Presentation
For personal use only Advanced Braking Technology Limited July 2016 Investor Presentation Graeme Sumner, Managing Director
Slide 2: Disclaimer
Disclaimer For personal use only This presentation is provided 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: Investment Highlights
Investment Highlights For personal use only • Revolutionary sealed braking system • Market validated with $5m revenue 2015 (circa 300 units 1st generation brake) • 2nd generation polymer brake just released to drive step change in sales and profitability – near term pipeline 1000+ units from trial a
Slide 4: Company Overview
Company Overview For personal use only ABT is an engineering technology company that ABT is listed on the ASX ASX Code ABV has developed the SIBS Sealed Integrated Braking Ownership Directors / Mgmt (%) 16.6% System (SIBS®) Top 20 Holding (%) 53.2% SIBS incorporates a failsafe and a completely S
Slide 5: Product Overview
Product Overview For personal use only SIBS® (Sealed Integrated Braking System) Customer need SIBS due to harsh mining environments. Potash, coal ash, quartz and dust are highly abrasive to brake discs. High maintenance costs and safety issues. Also, unstable ground conditions necessitate the use of
Slide 6: 2nd Generation Polymer brake is transformational
2nd Generation Polymer brake is transformational For personal use only New Terra Dura Brake to drive growth: Terra Dura brakes are based on ABT’s patented Sealed Integrated Braking System (SIBS®) Patented until 2032 in 170 countries New polymer encased dry brakes are lighter and more affordabl
Slide 7: ABV's Growth Strategy
ABV’s Growth Strategy: For personal use only 1. Fast track international sales of SIBS 2. Roll out Terra Dura brake 3. Engage Large Retail & Commercial markets 4. Leverage technology platform into new markets 7
Slide 8: 1. Fast Track International Sales of SIBS
1. Fast Track International Sales of SIBS For personal use only Previous mining cycle ABT had only 2 international distributors and awareness internationally was low. Now has 18 international distributors engaged in the last 12 months. This expanded network has enabled sales to remain steady despite
Slide 9: 2. Roll out Polymer Terra Dura Brake
2. Roll out Polymer Terra Dura Brake For personal use only Terra Dura is an evolved design of the SIBS brake that utilises a high temperature polymer casing, cutting weight and cost of the current mining brake by half. This opens up large retail and commercial markets outside of the mining space who
Slide 10: Terra Dura dry brake: Outstanding payback and safety
Terra Dura dry brake: Outstanding payback and safety Safer For personal use only works perfectly every time, regardless of external conditions Lower running costs no abrasion or corrosion means less down-time, labour and parts savings can repay purchase and installation costs in 3-6 months Last long
Slide 11: Addressable market expanded beyond mining applications
Addressable market expanded beyond mining applications Terra Dura is transformational - Addressable Market of over 1.8m Vehicles For personal use only SUV On Road 17,000,000 vehicles pa SUV Off Road 1,700,000 vehicles 1% penetration generates pa $80m in revenue, a gross SUVs All Mines contribution o
Slide 12: 3. Engage Retail and Commercial Market
3. Engage Retail and Commercial Market For personal use only Commercial discussions with retail manufacturers and distributors underway. MOU signed with Harrop. Licencing deal the likely option which will minimise cost of sales and manufacturing risk. ABT essentially pursuing a technology licencing
Slide 13: 3. Engage Retail and Commercial Market – Global Distribution in place
3. Engage Retail and Commercial Market – Global Distribution in place For personal use only ABT already engages with 18 International Distributors for their SIBS mining brake. The majority of these distributors also have retail and commercial distribution outside of the mining space So there is alre
Slide 14: 4. Expand product offering for new markets
4. Expand product offering for new markets For personal use only With proven patented technology platform in place, Incremental development can expand the market even further: Terra Durra is a modular design. New vehicle segments can be added by simply modifying the adapter plate. Capex circa $80,00
Slide 15: Trailer Drum brakes vs SIBS
Trailer Drum brakes vs SIBS For personal use only Drum Brakes SIBS® Brakes Regular Clean, adjust and check brake 20,000 km Hub seal and SIBS® oil change 230,000 km maintenance performance Replace brake pads and Not Major service 60,000 km Replace brake pads drums required Brake pads and rotor after
Slide 16: Conclusion – Investment Highlights
Conclusion – Investment Highlights For personal use only Proven technical solution with no direct competitors Strong patent protection out to 2030 Scalable global distribution model already in place Extensive additional development opportunities – trailer brakes Very large addressable mark
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