Laserbond Limited · ASX:LBL
Laserbond — Investor Presentation (September 2023)
25 slides from Laserbond's investor presentation, Sep 6, 2023
Slide 1: Investor Presentation
For personal use only Investor Presentation Wayne Hooper, CEO Matthew Twist, CFO September 2023 ASX: LBL
Slide 2: Disclaimer
DISCLAIMER No responsibility for contents of Investor Accuracy of projections and forecasts No offer to sell or invitation to buy For personal use only Presentation This Investor Presentation may include certain This Investor Presentation does not, and should To the maximum extent permitted by law,
Slide 3: Business Overview & Performance Summary
For personal use only Business Overview & Financial Operational Strategy & Performance Summary Performance Appendices Performance Prospects
Slide 4: Business Overview
BUSINESS OVERVIEW Exposure to recurring industry Services Division R&D For personal use only wear problems leads to research Repair and refurbishing for better solutions & product New surface engineering LaserBond provides worn or damaged opportunities materials and application machine parts technol
Slide 5: Performance Summary
PERFORMANCE SUMMARY NPAT Net Cash Flow Dividend for Period For personal use only $M Cents $M A strong performance in FY23 with considerable increases 4.8 3.2 1.4 1.6 3.6 1.2 in earnings, balance 2.8 2.8 1.8 1.1 sheet and cash 0.9 0.8 metrics. This is based FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY2
Slide 6: Financial Performance
For personal use only Business Overview & Financial Operational Strategy & Performance Summary Performance Appendices Performance Prospects
Slide 7: FY23 Earnings
FY23 EARNINGS Revenue EBITDA NPAT For personal use only $M $M $M All earnings metrics reporting significant growth over the past 30.7 38.6 8.7 10.2 3.6 4.8 6.2 6.4 two fiscal years, with 22.7 22.2 24.7 4.9 2.8 2.8 2.8 NPAT reporting a FY19 FY20 FY21 FY22 FY23 14.1% compound FY19 FY20 FY21 FY22 FY23
Slide 8: Cash and Working Capital
CASH AND WORKING CAPITAL Cash from Operations Cash at Bank Working Capital For personal use only $M $M $M Consistently strong cash flows provide 7.7 16.5 increasing working 8.9 12.3 4.1 4.8 capital levels to 4.3 4.2 4.0 4.9 5.7 6.1 7.3 8.8 2.2 support the growth FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY
Slide 9: Debt
DEBT Financial Liabilities Net Debt* For personal use only 6.000 4.5 5.8 Total net debt HP & finance leases $M $M $M LaserBond’s balance Facility lease liabilities 4.000 2.9 Net debt ex facility lease liabilities 4.8 3.4 sheet remains strong, 4.1 7.8 2.000 0.7 1.0 0.000 0.7 with continuing low -0.6
Slide 10: Operational Performance
For personal use only Business Overview & Financial Operational Strategy & Performance Summary Performance Appendices Performance Prospects
Slide 11: Services Division Overview
SERVICES DIVISION OVERVIEW Services Revenue ▪ For personal use only Offers reclamation of worn industrial components using LaserBond® cladding and thermal spraying as well as high-capacity welding, $M Services revenue was machining and heat treatment to provide a complete service suite – supported b
Slide 12: Products Division Overview
PRODUCTS DIVISION OVERVIEW Products Revenue ▪ For personal use only Demand for Manufactures products incorporating LaserBond® cladding applications, such as steel mill rolls, rotary feeders and a range of OEM consumables $M consumables or spare utilised across a breadth of industries. parts continue
Slide 13: Technology Division Overview
TECHNOLOGY DIVISION OVERVIEW Technologies Revenue ▪ For personal use only Ongoing (but Enables customers to bring LaserBond cladding technology in-house under $M resolved) supply long-tailed licensing agreements which cover equipment supply, technology 2.4 usage and the supply of associated consumab
Slide 14: R&D Investment
R&D INVESTMENT ▪ Collaborative relationships continue with the R&D Investment University of South Australia, the Monash For personal use only Institute of Rail Technology, Curtin University LaserBond develops FY23 $453,537 and Swinburne University. innovative products ▪ Internal R&D focus is present
Slide 15: Safety and the Environment
SAFETY AND THE ENVIRONMENT Safety The Environment For personal use only Over three decades of Technology Operations operation, LaserBond has never had a • Successful certification for all • LaserBond’s R&D program aims to • ISO 14001 certification promotes facilities to JAS ANZ accreditation minimis
Slide 16: Strategy & Prospects
For personal use only Business Overview & Financial Operational Strategy & Performance Summary Performance Appendices Performance Prospects
Slide 17: Strategy for Growth
STRATEGY FOR GROWTH ▪ Invest in people and training, For personal use only ▪ Continued assessment of including introducing more shifts potential acquisition targets to to best utilise existing (and LaserBond remains expand footprint throughout Australia. growing) equipment capacity. ▪ Consider expan
Slide 18: Investment Rationale
INVESTMENT RATIONALE Strong Demand in For personal use only Solid Business Culture of LaserBond’s business 1. 2. 3. Local and Offshore Foundations Innovation Markets model is founded on innovating to meet ▪ Year on year growth on all ▪ Business model founded on ▪ Accessing sizeable global specific c
Slide 19: Appendices
For personal use only Business Overview & Financial Operational Strategy & Performance Summary Appendices Performance Performance Prospects
Slide 20: LaserBond Snapshot
LASERBOND SNAPSHOT LBL SHARE PRICE MOVEMENT (September 2018 to August Dividend for Period COMPANY INFORMATION For personal use only 2023) Incorporation 30/09/1992 IPO 17/12/2007 1.6 1.4 Sydney, Melbourne, 1.1 1.2 Offices/sites Adelaide, Brisbane No of staff 141 FY20 FY21 FY22 FY23 DIRECTORS AND EXEC
Slide 21: Five-Year Earnings
FIVE-YEAR EARNINGS A$000 2019 2020 2021 2022 2023 For personal use only Sales Revenue 22,667.2 22,177.3 24,664.5 30,711.1 38,612.4 Gross profit 10,742.7 11,522.8 12,588.0 16,701.2 20,463.0 Operating Expenses (5,845.1) (5,335.3) (6,214.3) (8,024.8) (10,266.1) EDITDA 4,897.6 6,187.5 6,373.7 8,676.4 10
Slide 22: Five-Year Balance Sheet/Cash Flow
FIVE-YEAR BALANCE SHEET/CASH FLOW A$000 2019 2020 2021 2022 2023 For personal use only Cash & Equivalents 2,192.5 3,997.7 4,907.9 5,683.8 8,929.2 Current assets 10,135.7 11,843.7 14,929.1 22,367.7 25,715.3 Non-current assets 6,265.5 11,759.7 14,601.8 23,455.8 26,117.2 Total assets 16,401.2 23,603.4
Slide 23: Case Study: Super Duplex Pumps
Case Study 1 SUPER DUPLEX PUMPS Problem For personal use only LaserBond’s proprietary ▪ Liquids with high corrosivity transported, cladding process allows with components suffering pitting corrosion. capital-intensive, critical ▪ This case study relates to the severely components in highly corroded
Slide 24: Case Study: Reclamation of Gear Shafts
Case Study 2 RECLAMATION OF GEAR SHAFTS Problem For personal use only Unlike other processes, ▪ Customers frequently experience issues with LaserBond’s cladding wear on bearing journals and gear teeth, resulting in components not performing process provides a strong optimally. metallurgical bond wit
Slide 25: Further Information
Further Information: For personal use only Matthew Twist Chief Financial Officer and Company Secretary (02) 4631 4500 matthewt@laserbond.com.au www.laserbond.com.au