Cleanspace Holdings Ltd. · ASX:CSX
Cleanspace — H1 2021 Earnings Presentation
30 slides from Cleanspace's earnings presentation, Feb 25, 2021
Slide 1: 1H FY21 Results Presentation
1H FY21 RESULTS PRESENTATION CLEANSPACE HOLDINGS LIMITED (ASX:CSX) CleanSpace designs and manufactures innovative respiratory protection solutions for healthcare & industrial employers globally We understand the importance of best-in-class personal protective equipment that not only performs, but al
Slide 2: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER ACCEPTANCE CleanSpace’s financial results are reported under International Financial Reporting Standards (IFRS). This presentation has been prepared by CleanSpace Holdings Limited (ACN 150 214 636) This release includes certain non-IFRS measures including EBITDA and Fre
Slide 3: CleanSpace Presenters
CLEANSPACE PRESENTERS Alex Birrell Elizabeth Harvey CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER § 20+ years in senior management roles § 20+ years’ experience in financial in the healthcare and technology operations in financial control, sectors business performance and analysis, risk management
Slide 4: 1H FY21 Financial Highlights
1H FY21 FINANCIAL HIGHLIGHTS REVENUE GROSS MARGIN OPERATING EXPENSES 1 $39.7M 78% 28% 5x | 1H FY20 $7.3M 10% | 1H FY20 68% OF TOTAL SALES CONSUMABLE / ACCESSORIES SALES HEALTHCARE SALES EBITDA 1 $20.1M 49% 78% OF TOTAL SALES OF TOTAL SALES 1. Pro Forma Income Statement 4 CleanSpace Holdings Limited
Slide 5: 1H FY21 Business Highlights
1H FY21 BUSINESS HIGHLIGHTS TRANSFORMED ESTABLISHED Business operations to meet urgent New state-of-the-art production facility global demand in healthcare for high in Sydney with expanded capacity up quality respiratory protection solutions to revenue $100M pa, shortened order lead times ACCELERATE
Slide 6: 1H FY21 Operational Update
1H FY21 OPERATIONAL UPDATE 6 CleanSpace Holdings Limited | 1H FY21 Results Presentation | February 2021
Slide 7: Significant Growth In Installed Base
SIGNIFICANT GROWTH IN INSTALLED BASE Global installed base Monthly Installed Base and Consumables Revenue % grew 60% in the last 100 70% 12 months and Consumables as % of total revenue 90 60% over 30% in the last 6 months to 80 50% Installed base (000's) 95,000 units 70 60 40% 30% § Installed device
Slide 8: Update On Sales
UPDATE ON SALES REVENUE BY REGION 1H FY21 REVENUE BY INDUSTRY 1H FY21 22% 3 2 33% 50% REGIONS SECTORS 78% 17% EMEA AMERICAS APAC INDUSTRIAL HEALTHCARE HEALTHCARE UPTAKE IN USA AND ASIA CONSUMABLE/ACCESSORY SALES Deployments to major hospitals: inc US Veteran Affairs (VA), University of Continued con
Slide 9: Update On Production, Supply Chains And Logistics
UPDATE ON PRODUCTION, SUPPLY CHAINS AND LOGISTICS New St Leonards facility § Operational since early November 2020 § Current capacity of $100m revenue per annum (1 shift, 5 days) with potential to ramp rapidly as required § Minimum production disruption during set up and scale up § Enables business
Slide 10: Expanding Sales And Customer Support Teams
UPDATE ON PEOPLE EXPANDING SALES AND CUSTOMER 80% SUPPORT TEAMS INCREASE IN SALES / CUSTOMER TEAMS Hired 20 FTEs in key sales and technical roles to expand our customer teams in core and new markets § Global with over 15 languages located in 12 countries § Built-in capacity and skills for inside sal
Slide 11: New Product For Source Control
UPDATE ON R&D NEW PRODUCT FOR SOURCE CONTROL STERI-PLUS: Exhalation valve filter (98% filtering efficiency) suitable for sterile environments or where source control is required § First and only PAPR with Source Control § NIOSH and CE Mark approved. TGA pending 11 CleanSpace Holdings Limited | 1H FY
Slide 12: Impact Of COVID-19 On 1H FY21 Trading And Current Market Conditions
IMPACT OF COVID-19 ON 1H FY21 TRADING AND CURRENT MARKET CONDITIONS Accelerated adoption in large markets Health, North America and Asia Scalable business model Unique competitive solution Impact of 1H FY21 and outlook § Deployed into hundreds of hospitals (off a base of 20 a year ago), § There has
Slide 13: 1H FY21 Financial Update
1H FY21 FINANCIAL UPDATE 13 CleanSpace Holdings Limited | 1H FY21 Results Presentation | February 2021
Slide 14: Revenue – 1H FY21
REVENUE – 1H FY21 $39.7M 5X SALES 1H FY21 PCP 1H FY20 § Sales $39.7m for first six months FY21. Continued growth from previous half year CleanSpace revenue (A$m) and gross margin % § CY19 to CY20 actual growth of over 337% $39.7m 90% to $60.8m; with year-on-year revenue $40.0m growth since FY18 80%
Slide 15: Expenses – 1H FY21
EXPENSES – 1H FY21 Highly Scalable Operating Model CleanSpace pro forma operating expenses (A$m) and as % of revenue (1H FY19 to 1H FY21) § Cost base was leveraged with revenue growth to achieve strong EBITDA margins. $12.0m 140% Expense categories decreased as a % of revenue between 1H FY19 and 1H
Slide 16: Pro Forma Income Statement – Half Year
PRO FORMA INCOME STATEMENT – HALF YEAR Pro forma 1H FY21 compared to Pro forma PCP and Pro forma prospectus forecast 1H FY21 variance Pro forma Pro forma actual (Actuals vs. forecast Forecasts) A$m 1H FY20 1H FY21 1H FY21F Δ (A$m) Δ (%) § EBITDA $20.1m. Margin 51% (pro-forma) Revenue 7.3 39.7 31.8 7
Slide 17: EBITDA And Cash Flow
EBITDA AND CASH FLOW Favourable cashflow model underpinned by low capex and working capital requirements Pro forma EBITDA ($ millions) and EBITDA margin (% of revenue) $25.0m $20.1m 70% $20.0m $8.1m $15.0m 50% 30% $10.0m § Achieved operating cash flow conversion $5.0m 10% from EBITDA of approximatel
Slide 18: Summary Balance Sheet & Cash Flows
SUMMARY BALANCE SHEET & CASH FLOWS as at as at Summary Cash Flows (A$m) - Statutory 1H FY20 2H FY20 1H FY21 Summary Balance Sheet (A$m) 30-Jun-20 30-Dec-20 Operating cash flows pre-financing and tax (0.6) 5.5 20.1 Cash, cash equivalents and term deposits 10.3 46.5 Trade and other receivables 8.7 3.2
Slide 19: Appendix 1 – Additional Financial Information
APPENDIX 1 – ADDITIONAL FINANCIAL INFORMATION Hazards associated with WASTE WATER MANAGEMENT, such as sewage treatment plants, expose sewage treatment workers to airborne biological and chemical agents resulting in infectious disease or long term respiratory issues. 19 CleanSpace Holdings Limited |
Slide 20: Pro Forma Income Statement – Full Years
PRO FORMA INCOME STATEMENT – FULL YEARS Pro forma Historical Income Statements, Pro forma Forecast Income Statements, Pro forma Historical Annual and Forecast Annual Key Operating and Financial Metrics for FY18 to CY20 Pro forma CY20 variance Pro forma actual forecast (Actuals vs. Forecasts) A$m Not
Slide 21: Pro Forma Income Statement
PRO FORMA INCOME STATEMENT A$m Notes FY18 FY19 FY20 CY19 CY20 1H FY19 2H FY19 1H FY20 2H FY20 1H FY21 Revenue 7.8 11.2 28.4 13.9 60.8 4.6 6.7 7.3 21.1 39.7 Cost of sales (2.4) (3.5) (7.4) (4.4) (13.7) (1.5) (2.1) (2.3) (5.0) (8.6) Gross Profit 5.4 7.7 21.0 9.5 47.1 3.1 4.6 4.9 16.1 31.1 Other Income
Slide 22: 1H FY21 Statutory & Pro Forma EBITDA Reconciliation
1H FY21 STATUTORY & PRO FORMA EBITDA RECONCILIATION A$m Statutory 1H FY21 EBITDA 19.1 IPO listing costs 1.2 Ongoing additional listing costs (0.2) Pro forma 1H FY21 EBITDA 20.1 22 CleanSpace Holdings Limited | 1H FY21 Results Presentation | February 2021
Slide 23: Appendix 2 – About CleanSpace
APPENDIX 2 – ABOUT CLEANSPACE There are common activities where people are frequently exposed to contaminants in the workplace. In CONSTRUCTION, respirable crystalline silica is ubiquitous and deadly and the major cause of silicosis and COPD. And most notably silica is present in stonemasonry, grind
Slide 24: Company History
COMPANY HISTORY CleanSpace has achieved regulatory approvals and opened and set-up key markets (domestic & export) to build a profitable global B2B business AU & EU Approvals AU & EU Traction Expanded & market entry in in Industrial distribution. industrial corporate markets USA approvals. Entered U
Slide 25: A Clear Competitive Advantage
A CLEAR COMPETITIVE ADVANTAGE A healthcare technology that provides high protection & lower cost; displacing both disposable masks and bulky PAPRs PROPRIETARY AIRSENSIT™ TECHNOLOGY CLEANSPACE TRADITIONAL RESPIRATOR OFFERINGS DISPOSABLES TRADITIONAL PAPRS ü High protection ü Light & simple ü High Pro
Slide 26: Respiratory Protection Market
RESPIRATORY PROTECTION MARKET CleanSpace operates across a broad range of regulated product categories NEGATIVE PRESSURE MASKS POSITIVE PRESSURE MASKS Powered Air Self Contained Other: Dust Masks & Air Purifying Respirator (APR) Purifying Respirator Breathing Apparatus Surgical Masks (PAPR) (SCBA),
Slide 27: CleanSpace Addressable Market
CLEANSPACE ADDRESSABLE MARKET US$6.3BN Global market opportunity across health and industry sectors RPE market size US$4.7bn 10,000 USD9.1bn USD7.4bn 8,000 6,000 4,000 2,000 - 2020 2024 Industrial Healthcare Expected to grow 22% by 2024 Estimated addressable market $6.3bn “The healthcare PPE industr
Slide 28: Established Global Sales Network
ESTABLISHED GLOBAL SALES NETWORK Regional sales teams, distributors and partners established CleanSpace as a safety equipment provider with a multinational footprint DISTRIBUTION PARTNERS § Industrial (100%) and in some healthcare markets (SE Asia and Europe) § Purchasing arrangements with MROs, PPE
Slide 29: Growth Strategy
GROWTH STRATEGY CleanSpace continues to invest in new markets and product pipeline IMMEDIATE OPPORTUNITY FOR ACCELERATED ADOPTION IN HEALTHCARE AS HIGH DEMAND THROUGH COVID19 DRIVES GLOBAL RESPIRATOR SALES AND AWARENESS CURRENT EXPAND INNOVATE TO GROW INTO NEW MARKETS NEW & EXISTING § Continue momen
Slide 30: www.cleanspacetechnology.com
WWW.CLEANSPACETECHNOLOGY.COM 30 CleanSpace Holdings Limited | 1H FY21 Results Presentation | February 2021