Slide 1: FY23 Results Presentation
FY23 RESULTS PRESENTATION 24 August 2023 Samantha Cheetham CEO John Slaviero CFO/COO
Slide 2: Agenda
AGENDA Performance Highlights FY23 Financial Results Business Update Strategy and Outlook
Slide 3: FY23 Performance Highlights
FY23 PERFORMANCE HIGHLIGHTS Record full year performance with strong growth across all key regions Record revenue of $107.9m New site purchased (+ 13.4% pcp) 56.8% Gross Profit Margin Continued product (+100 bps) development EBITDA $16.2m Launch of Stela & Riva (+9.6% pcp) (both aesthetics) Dividend
Slide 4: Sales by Business Unit
SALES BY BUSINESS UNIT Business unit performance reflects a return to normal operating conditions SALES BY BUSINESS UNIT (AUD MILLIONS) BUSINESS UNIT % SALES $120 50% 107.9 $110 $100 95.1 9.1 38% 40% $90 7.3 40% 34% 34% 79.6 81.6 34% $80 5.1 5.4 36.9 67.4 33.3 35% $70 30% 34% 34% 24.8 5.4 28.1 31% 3
Slide 5: Category Overview
CATEGORY OVERVIEW Continued growth in key product areas SALES BY CATEGORY (AUD millions) CATEGORY AS % SALES $120 107.9 60% $110 95.1 6.5 47% $100 50% 46% 45% 45% $90 79.6 81.6 6.8 42% 31.3 $80 67.3 6.0 40% 6.0 $70 29.8 33% 31% 21.5 5.1 26.5 27% 29% $60 19.0 30% 27% $50 18.1 15.3 18.3 12.5 23% 18% $
Slide 6: Sales by Region
SALES BY REGION Global dental market was valued at US36.1B in 2022 and forecast to grow to US65.2B by 2029, growing at a CAGR 7.9%1 SALES BY REGION (AUD MILLIONS), % GROWTH PCP SALES BY REGION (AUD MILLIONS) $45 $40 Europe North America $39.8m, +11.1% $35 $25.6m, +15.9% $30 $25 Middle East & Africa
Slide 7: Financial Performance
FINANCIAL £ PERFORMANCE “x
Slide 8: FY23 Revenue & Gross Margin
FY23 REVENUE & GROSS MARGIN Records revenue and gross profit margin starting to improve with easing of logistic costs and price increases FY23 REVENUE ($m) AND GROSS PROFIT MARGIN $120 107.9 100% • Record sales $107.9m, up 13.4% pcp $100 94.8 80% • Product Margin increased by 100 basis 79.6 65% 81.7
Slide 9: FY23 EBITDA & EBITDA Margin
FY23 EBITDA & EBITDA MARGIN EBITDA increased 9.6% to $16.2 million underpinned by gross margin improvement FY23 EBITDA ($m) AND EBITDA MARGIN (%) $18 16.5 30% • EBITDA growth of 9.6% from improved 16.2 $16 gross margin 14.7 25% 14.2 $14 7.8 • EBITDA margin impacted by the increase 12.1 7.8 of operat
Slide 10: FY23 Cost Analysis
FY23 COST ANALYSIS Employee Costs, In/Out Freight, Marketing/Travel Expenses to Sales % (FY20 to FY23) 1 • FY22 employee cost increased with the 42.0% 18.0% addition of production staff to increase 16.0% 40.9% 16.0% inventory levels to ensure supply 40.0% 14.7% 14.0% • FY23 absolute employee costs a
Slide 11: Cash Flow & Balance Sheet
CASH FLOW & BALANCE SHEET Year to date cash flow ($m AUD) FY22 FY23 • Strong operating cash flow driven by $15.0 million increase in customer Net Operating Cash flow 4,266 13,063 receipts Net Investing (4,247) (33,406) • Purchase of the Montrose and new Net financing costs (3,489) 19,197 Bayswater s
Slide 12: Business Update
BUSINESS UPDATE
Slide 13: Operational Update
OPERATIONAL UPDATE Milestone achievements underpin long term strategic plan • New warehouse facility progress being made (discussed in Strategy and Outlook) • Returned to major trade shows • The successful launch of Stela • Continued investment in equipment to achieve operational efficiencies via au
Slide 14: ESG Initiatives
ESG INITIATIVES • SDI has recently appointed ESG consultants to assist in establishing a baseline for SDI’s ESG framework • Internal working group created with comprehensive reporting provided to the board • Conducted research, scoping and analysis of ESG and its influence on SDI • Performed risk an
Slide 15: Strategy & Outlook
STRATEGY & OUTLOOK
Slide 16: Update on New Warehouse Facility
UPDATE ON NEW WAREHOUSE FACILITY • The new site will bring increased production efficiencies when we are due to relocate warehousing in September 2023 • Planning is currently underway for the redevelopment of the new site and relocation by FY 2027 • Included in the project cost is the acquisition of
Slide 17: Timeline of Project Montrose
TIMELINE OF PROJECT MONTROSE Purchased site for $19.0m Warehouse fitout Total costs A$1.5m Relocate to temporary warehouse facility Planning for upgrading new site to manufacturing site Refurbish & move manufacturing departments to new site Finalise plan (incl. financing) and begin build Build proce
Slide 18: Strategy & Outlook
STRATEGY & OUTLOOK o Aesthetics and Whitening products continue to be the focus for new product development o Meet updated European regulatory requirements for restorative products o Continued focus on improving operating manufacturing efficiencies with new machinery to drive increased automation o
Slide 19: Q&A
Q&A
Slide 20: Appendices
APPENDICES \p.® 4 d py , <q
Slide 21: Awards
AWARDS PrerenneD, PROBUCTAWARD Aura Bulk Fill DAE 2023 PROBUS DENTAL ADVISOR PREFERRED PRODUCT COMPOSITE: BULK FILL RESTORATIVE DENTAL ADVISOR PREFERRED PRODUCT LED CURING LIGHT PRODUCT AWARD DENTAL ADVISOR PREFERRED PRODUCT WHITENING: TAKE-HOME LIGHT-ASSISTED DENTAL ADVISOR PREFERRED PRODUCT RMGI R
Slide 22: Sales Analysis
SALES ANALYSIS Product Category ($m) FY20 FY21 FY22 FY23 Aesthetics 30.9 36.6 43.2 51.1 Whitening 18.1 26.5 29.8 31.3 Amalgam 13.2 12.5 15.3 19.0 Equipment 5.1 6.0 6.8 6.5 Region ($m) FY20 FY21 FY22 FY23 North America 14.6 20.4 22.1 25.6 South America 8.0 7.6 10.2 11.7 Europe 23.7 31.4 35.8 39.8 APA
Slide 23: FY20 to FY23 Cost Analysis
FY20 TO FY23 COST ANALYSIS Cost Category ($m) FY20 FY21 FY22 FY23 In/out Freight 2.0 3.6 6.4 5.2 Employee Costs* 25.9 29.8 38.9 40.5 Marketing/Travel 10.8 9.1 12.6 15.8 Cost Category (% of Sales) FY20 FY21 FY22 FY23 In/out Freight 2.9% 4.4% 6.8% 4.8% Employee Costs 38.5% 36.5% 40.9% 37.6% Marketing/
Slide 24: Profit and Loss
PROFIT AND LOSS Profit & Loss (#039;000) FY23 FY22 % Change Revenue Sales Revenue 107,855 95,151 13.4% Cost of goods sold -46,588 -42,041 10.8% Gross Profit 61,267 53,110 15.4% Gross margin 56.8% 55.8% +100bps Other income 1,556 614 153.4% Interest Income 8 14 -42.9% Expenses Selling & Administration -
Slide 25: Balance Sheet
BALANCE SHEET Balance Sheet (#039;000) FY23 FY22 Assets Cash & cash equivalents 6,022 7,013 Trade & other receivables 21,124 19,598 Inventories 25,553 26,005 Property, plant & equipment 45,829 18,634 Right of use assets 1,432 1,377 Intangibles 27,318 25,208 Other Assets 6,031 4,235 Total Assets 133,309
Slide 26: Important Notice & Disclaimer
Important Notice & Disclaimer This Presentation contains summary information about SDI Limited (SDI) and its subsidiaries and their activities. The information in this Presentation does not purport to be complete. It should be read in conjunction with SDI’s other periodic and continuous disclosure a