Astron Limited · ASX:ATR
Astron — Shareholder Meeting (November 2007)
28 slides from Astron's shareholder meeting presentation, Nov 30, 2007
Slide 1: Annual General Meeting 2007
For personal use only Astron Limited ACN 000 285 272 Annual General Meeting 2007
Slide 2: Presentation agenda
Presentation agenda For personal use only • Introduction Gerry King • Highlights Alan Guy • Operating Review Alan Guy • 2008 Outlook Alex Brown • Q and A
Slide 3: Introduction
Introduction For personal use only · Record sales revenue of $182M · After tax profit of $11.4M · Net assets increased to $97.9M · Emphasis on strategic review and new direction · Project development milestones achieved · Future growth prospects from new areas
Slide 4: Highlights
For personal use only Highlights
Slide 5: 2007 Summary
2007 Summary For personal use only Sales revenue A$ 182.0 million Net Profit A$ 11.4 million Employees 630 Earning/share A$ 0.19 Price/share A$ 2.6 Capitalization A$ 157 million ASX Code ATR Website www.astronchem.com
Slide 6: Products Groups
Products Groups For personal use only Fused Zirconia Zirconium Chemicals Zircon Materials Other products* *Shaded Area proportional to 2007 sales value
Slide 7: Business Highlights
Business Highlights For personal use only · Zircon availability improvement (from 2006) · Fused zirconia- revenue and margin growth · Zirconium chemicals- revenue increased · Zircon materials- prices/margins down · EHS performance improvement · Export sales increase of 19%
Slide 8: Segment Growth
Segment Growth For personal use only * Includes Ti products and silicas +2 2％ 14％ + Fused Zirconia Chems/oxides +2 % 18 . 8 ％ -4 Zircon Materials Other products* • Price increases in Fused and Other products • Prices down in zircon materials
Slide 9: Financial Highlights
Financial Highlights For personal use only · Revenue growth of $30.6M · Net profit after tax of 11.4M · R.O.N.A. of 15.4% · Net Assets increased to $97.9M · Cash and marketable securities of $16M · Debt : Equity = 14% · Current ratio = 2.1
Slide 10: 2007 Review
For personal use only 2007 Review
Slide 11: Revenue
Revenue For personal use only A$M 82.4 104.7 140.3 151.2 181.8 Year 2003 2004 2005 2006 2007
Slide 12: Sales Geographies
Sales Geographies For personal use only China 72.3% N.America 11.3% Europe 13% Asia 3.4%
Slide 13: Sales revenue contributors
Sales revenue contributors A$M For personal use only +$ 53.0 -$ 17.4 -$ 4.7 -11.5% -3.2% +35.2% 181.6 150.7 2006 sales Exchange rates Volumes Price/Mix 2007 sales
Slide 14: Net Profit
Net Profit For personal use only A$m 6.2 15.2 26.1 20.6 11.4 Year 2003 2004 2005 2006 2007
Slide 15: Operating profit (EBIT) comparison
Operating profit (EBIT) comparison (A$M) For personal use only +6.0 -2.5 -7.36 -0.61 19.6 15.1 2006 Ex rates Volumes Price/Mix Costs 2007
Slide 16: Operating Cash Flow
Operating Cash Flow For personal use only A$m -2.9 17.7 19.5 14.9 -6.5 Year 2003 2004 2005 2006 2007
Slide 17: Interest, taxation and net profit
Interest, taxation and net profit, A$M For personal use only 2007 2006 EBIT 15.1 19.6 Interest expense (1.2) - PROFIT BEFORE TAX 13.9 19.6 Taxation (2.5) 1.0 NET PROFIT 11.4 20.6
Slide 18: Balance Sheet summary
Balance Sheet summary For personal use only June 2007 June 2006 % Change A$M Cash/marketable securities 15.9 29.1 -45.4 Receivables 29.7 21.5 38.1 Inventories 49.9 28.6 74.5 Plant property & equipment 21.7 21.1 2.8 Other 27.5 19.7 39.6 TOTAL ASSETS 144.8 120.0 20.7 Payables 31.9 20.6 54.9 Interest B
Slide 19: Strategic Update and Outlook
For personal use only Astron Limited ACN 000 285 272 Strategic Update and Outlook ALEX BROWN
Slide 20: Earnings performance
Earnings performance For personal use only A$M 6.2 15.2 26.1 20.6 11.4 Forward-looking Statements This part of the presentation contains forward looking statements and information. Its basis is our current expectations along with .= 21% certain assumptions and .R A .A.G therefore such statements car
Slide 21: Company objectives
Company objectives For personal use only • EPS and dividend growth -25% p.a. • Target earnings $50M A.S.A.P. • Improve share liquidity
Slide 22: Company Strategy
Company Strategy For personal use only • Build on core competencies • Position in growth markets • Maximize China advantage • Cost leadership • Differentiation- relations/R&D • Invest in people/technology
Slide 23: Strengths-core competencies
Strengths-core competencies For personal use only • Technical • China expertise • Mineral sands & downstream products
Slide 24: Current business growth limitations
Current business growth limitations For personal use only • Lower margins limiting business expansion: - Working capital - Project fixed capital
Slide 25: 2008 business plan
2008 business plan For personal use only • Imerys offer • Complete new business plan • Implement plan • Liquidity and shareholder relations
Slide 26: Development plan
Development plan For personal use only • Retained assets - Mineral sands - TiO2 - New technologies Ceramic opacifiers Chlorination of Ti/Zr/Si Metals • Other (incl. M&A synergies)
Slide 27: Conclusions
Conclusions For personal use only • China • New technologies • Growth
Slide 28: Thank You!
For personal use only Astron Limited ACN 000 285 272 Thank You!