Trajan Group Holdings Ltd · ASX:TRJ
Trajan — FY2023 Earnings Presentation
17 slides from Trajan's earnings presentation, Aug 28, 2023
Slide 1: FY23 Financial Results
FY23 FINANCIAL RESULTS 28 AUGUST 2023 STEPHEN TOMISICH CEO AND MANAGING DIRECTOR
Slide 2: Building Trajan to Global Scale
Building Trajan to Global Scale Respect Integrity Discipline Empowerment Diversity Trajan is a globally scaling business providing products and services essential to sample handling and analysis in the Clinical, Pharmaceutical, Environmental and Food sectors. We are both a manufacturer and product i
Slide 3: FY23 Financial Results
FY23 FINANCIAL RESULTS FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS FINANCIAL DETAILS SEGMENT PERFORMANCE nEBITA TREND PROJECT NEPTUNE CASH GENERATION PERFORMANCE TRANSPARENCY FY 24 OUTLOOK ENVIRONMENT, SOCIAL, GOVERNANCE SUMMARY 3
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS STRONG SALES AND PROFIT GROWTH ACROSS THE GROUP • Continued sales momentum across all markets and segments. 12th $162.2M $21.1M 14.5% consecutive year of growth. • Organic Net Revenue (excluding acquisitions) growth of 14.5%. Net Revenue Normalised EBITDA Organic Growth Up 50.7%
Slide 5: Growing Global Footprint
GROWING GLOBAL FOOTPRINT OUR MAJOR MARKETS AND CUSTOMERS ARE IN THE NORTHERN HEMISPHERE • Trajan is strategically diverse in terms of our product portfolio, geographies we operate in, customer set, and the industries we touch. • Our customers sit across three channels. We we are *USA *EUROPE deeply
Slide 6: Executing on Our Strategy
EXECUTING ON OUR STRATEGY PRECISE DATA IS THE RESULT OF BEST PRACTICE SAMPLE COLLECTION, HANDLING AND ANALYSIS Executing a strategy targeting the areas of Environmental, Clinical, Pharmaceutical, and Food applications. We know our work is underpinning the quality of analytical data being generated.
Slide 7: FY23 Commercial Growth
FY23 COMMERCIAL GROWTH CONTRIBUTIONS FROM ORGANIC GROWTH AND ACQUISITIONS • Trajan reported overall revenues for the year ended 30 June 2023 • Normalised EBITDA for the year ended 30 June 2023 was REVENUE & of $162.2M (2022: $107.6M), up by 50.7%. The revenue for the period comprises organic $97.2M
Slide 8: nEBITDA Trending Positively
nEBITDA TRENDING POSITIVELY CONSISTENT HALF-ON-HALF IMPROVEMENT 11.7 • Excluding the impact of FEC hedge book revaluation, the 10.8 10.3 company’s nEBITDA grew to $21.6M (2022 $12.6M). 9.9 7.8 7.5 • 2H FY23 nEBITDA (excluding FEC hedge book revaluation) of $11.7M (1H FY23 $9.9M), up by 19.0%. 4.8 5.
Slide 9: Analytical Products and Life Science Solutions
ANALYTICAL PRODUCTS AND LIFE SCIENCE SOLUTIONS OPERATING SEGMENTS PERFORMING STRONGLY • Revenue for the period grew by $24.7M (up 41.0%) • Revenue for the period grew by $29.9M (up 63.2%) ANALYTICAL from $60.3M to $85.0M and gross profit^ grew by $12.1M (up by 47.5%). LIFE SCIENCE from $47.3M to $77
Slide 10: Continuing to Build and Improve
CONTINUING TO BUILD AND IMPROVE MARGIN EXPANSION • Project Neptune continued to deliver gains. Next phase of the program to be scoped in FY24 • Further production automation roll out in global operations. • Continued transfer of production processes to Trajan’s Malaysia operation. • Scale effect - d
Slide 11: Cashflow
CASHFLOW CASH GENERATION ALLOWS TRAJAN TO SELF-FUND INVESTMENT • Growing operating cash flow (compared to FY22) benefiting from FY2023 A$ million FY2022 FY2023 earnings growth. Normalised EBITDA* 12.5 21.1 • Decrease in net working capital due to increase in inventories $3.6M, increase in Income tax
Slide 12: Unrealised Value Embedded
UNREALISED VALUE EMBEDDED TWO IMPORTANT BUSINESS STREAMS BUILDING A STRONG FUTURE Since inception Trajan has supported two parallel business growth streams that are both highly valuable. 1. The “Core” business and all the related activities such as Operations, Commercial and R&D programs is the resi
Slide 13: Unlocking Value
UNLOCKING VALUE REVIEW OF REPORTING AND FUNDING MODEL OF DISRUPTIVE TECHNOLOGIES • Trajan believes a review of the reporting, funding and potentially the structure of these Disruptive technologies could unlock significant value. • The strength of the underlying Core business can be better understood
Slide 14: Outlook
OUTLOOK CONTINUED CONFIDENCE TO DELIVER GROWTH • Trajan’s growth has been rapid with above industry organic Net Revenue nEBITDA – growth ongoing contributions from acquisitions. Guidance Range Core Business • This has provided positive accelerated growth rates since IPO. FY23: $162.2M FY23: $23.9M •
Slide 15: Formalising Our Approach to ESG
FORMALISING OUR APPROACH TO ESG GROUNDED IN OUR VALUES AND PURPOSE • Cross functional team formalising our ESG framework. Policy now in place; endorsed and supported by the Board. • Our purpose of “Science that benefits people” is at the centre of our culture and operations. Many of the components c
Slide 16: Success Drivers
SUCCESS DRIVERS • Exceptional commercial track record with 12 consecutive periods of growth. • Dual focus on maintaining momentum in Trajan’s highly profitable Core business and investing in Disruptive technologies to contribute to future success. • Global infrastructure in place supporting further
Slide 17: Trajan
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