Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Microcap Conference Presentation (July 2013)
25 slides from Advanced Braking Technology's conference presentation, Jul 31, 2013
Slide 1: Advanced Braking Technology Limited Investor Presentation
For personal use only Advanced Braking Technology Limited Investor Presentation – 31st July 2013 Advanced Braking Technology | Microcap Conference Presentation
Slide 2: Company Overview
Company Overview For personal use only ABT is listed on the ASX ASX Code ABV › ABT is a developer, manufacturer and Top 20 Holding (%) 47.3% distributor of its patented Sealed Ownership Directors / 15.8% Integrated Braking System (SIBS®) Management (%) Shares on Issue 1.1 billion • SIBS® is a fail-s
Slide 3: Our Technology
Our Technology For personal use only Sealed Integrated Braking System (SIBS®) › Fully enclosed, single rotor, wet brake › Incorporates fail-safe features › Designed for retro-fit or factory fit › Virtually wear and maintenance-free › Manufactured in Thailand, through subsidiary Comprehensive Patent
Slide 4: Robust Commercial Model
Robust Commercial Model For personal use only Attractive and established business: › High margins › Highly scalable cost base › Established supplier base › Established global network in mining › Benefits from offshore outsourced manufacturing › Low cost model › Low capital intensity Manufacturing En
Slide 5: Company Financial Performance
Company Financial Performance For personal use only 9,000 Total Revenue $000’s 8,000 7,000 6,000 5,000 4,000 2nd Half 3,000 2,000 1st Half 1,000 0 08/09 09/10 10/11 11/12 12/13 Pre- Audit $000’s 1,000 P&L Reported 500 0 -500 -1,000 -1,500 -2,000 Expenditure in $000’s 3,500 3,000 New Truck Brake 2,50
Slide 6: Mining: Established Presence
Mining: Established Presence For personal use only Australia: › 25% market share overall (up to 70% in underground mines) › SIBS® standard at many mining sites • Olympic Dam, Xstrata Zinc – George Fisher, BHP – Nickel West › Applicable to light (Landcruiser, etc.) Medium (Isuzu, etc.) and Heavy (Mac
Slide 7: Mining: Value Proposition
Mining: Value Proposition For personal use only › SIBS offers much reduced maintenance cost in harsh conditions • Payback as short as 12 months › SIBS can be retrofitted to most standard road vehicles used in mining • Light, Medium and Heavy vehicles made more “fit for purpose” • On-road licensing c
Slide 8: Mining: Growth Drivers / Opportunities
Mining: Growth Drivers / Opportunities For personal use only Growth Opportunities › Mine volume growth following mining investment boom › Expansion into surface mines with safety and productivity focus › New markets opening up, e.g West Africa, Turkey Increased Focus on Corporate and Government Safe
Slide 9: Mining: Significant Growth in Sales
Mining: Significant Growth in Sales For personal use only › Proven success in the mining industry › FY13 Sales maintained in spite of depressed sector › Over 400% growth in brake sales over the past 6 years MINING SALES $7,000 $000's $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2009 2010 2011 2012 2
Slide 10: Waste Trucks: Major Growth Opportunity
Waste Trucks: Major Growth Opportunity For personal use only INITIAL TARGET MARKET - WASTE TRUCK BRAKES Identified Real Need for Change: › Brakes are the second biggest expenditure after fuel for garbage truck fleet operators › Public desire for noise reduction › Global drive to reduce pollution Aus
Slide 11: Waste Trucks: Market Strategy
Waste Trucks: Market Strategy For personal use only › Multi year development program now complete › Commercial roll out commenced CY2013 › Technical risk is very low: • ABT has significant experience and expertise with the associated technology • Long history of successful application • Extensive an
Slide 12: Investment in Truck Brake Development
Investment in Truck Brake Development For personal use only $3,500 $000’s $3,000 $2,500 $2,000 Truck Pre-Production $1,500 Truck Brake R&D $1,000 $500 $-00 07/08 08/09 09/10 10/11 11/12 12/13 › Development cost supported by: • Third Party Funding ($2.5 million) • Commonwealth CA Grant ($2 million) •
Slide 13: Waste Truck: Revenue Potential
Waste Truck: Revenue Potential For personal use only 200,000 180,000 Number of Garbage Trucks 160,000 140,000 120,000 100,000 New Refuse Trucks 80,000 Installed Fleet 60,000 40,000 20,000 - Australia Europe North Amercia Australia North America Annual sales 800 trucks Annual sales 20,000 trucks Inst
Slide 14: Waste Trucks: Value Proposition
Waste Trucks: Value Proposition For personal use only “Triple bottom line” benefits › Financial Savings: • Dramatically reduces frequency of brake overhauls from more than twice a year, to once every two years or longer • Up to $15k per annum savings per truck in severe conditions › Superior Operati
Slide 15: Case Study: City of Swan
Case Study: City of Swan For personal use only › City of Swan has been involved in-use testing over last 3 years › Over 2,000 hrs of field testing in domestic waste collection › Maintenance records of fleet of 12 trucks indicates average brake repair costs of standard brakes exceed $38,000 per truck
Slide 16: Current Waste User Activity / Interest
Current Waste User Activity / Interest For personal use only City of Swan – Two Trucks in-service › Production set installed January – extremely low wear indicating first major service will be needed in 3 years! Major Waste Operator – Two Brake Sets › Three months’ running on first set – no brake is
Slide 17: Ingredients for Success (1)
Ingredients for Success (1) For personal use only › Five year intensive development program › Leverages >10 years of product success in mining › Involvement of key stakeholders in development activity: • Waste Companies • OE Truck Suppliers • Key Suppliers • Brake and Auto Industry Experts • Local a
Slide 18: Ingredients for Success (2)
Ingredients for Success (2) For personal use only Company Reorganisation to Focus on Driving Top Line Sales and Margins › Two Business Units have been created – Mining and Truck Brake › Each will have P&L responsibility and draw on common resource pool › Senior Business Development Executive Appoint
Slide 19: Beyond Waste Trucks
Beyond Waste Trucks For personal use only › Truck Brake design readily adaptable to wide range of vehicle › Designed to fit Meritor and Dana axles that dominate truck market › Strong interest being expressed for trailer applications where ill maintained brakes are a cost and safety concern › Ready a
Slide 20: Highlights: 4Q FY13
Highlights: 4Q FY13 For personal use only Financial Operations › Total mining sales for quarter at › Roll out of production SIBS® Truck $1.75 million. Brakes to major waste operators › June quarter up 41% on the › Positive feedback from waste quarterly average for first half. operators on performanc
Slide 21: Highlights: FY13
Highlights: FY13 For personal use only Financial Operations › Total revenues of approx. $8 million: › Successful first production and delivery › Solid contribution from mining of SIBS® Truck Brakes sales ($5.9m) › Low wear and reliability of SIBS® Truck › R&D Tax Incentive and grant Brake reinforced
Slide 22: Current Outlook and Priorities
Current Outlook and Priorities For personal use only › Main focus is the commercial roll out of the SIBS® Truck Brake › All indicators suggest that there will be a strong demand › A progressive and controlled launch is planned › Mining sales will always play an important role in the Company’s future
Slide 23: Convertible Note: Offer Terms
Convertible Note: Offer Terms For personal use only › Offer to sophisticated Investors › Managed by Phillip Capital › Seeking to raise $2 million › Capacity for oversubscriptions › Coupon rate 12%, payable every 4 months › 3 years term › Convertible at $0.022 and redeemable at maturity USE OF PROCEE
Slide 24: Contacts
Contacts For personal use only Mr Ken Johnsen Craig Stranger Chief Executive Officer Head – Equity Capital Markets Advanced Braking Technology Ltd Phillip Capital Phone: +61 (0)8 9273 4803 Phone: +61 3 8633 9832 [email protected] [email protected] www.advancedbraking.com.
Slide 25: For personal use only
For personal use only www.advancedbraking.com [email protected] Phone: +61 8 9273 4800 | Fax: +61 8 9201 9986 Advanced Braking Technology | Microcap Conference Presentation
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