Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Australian Microcap Investment Conference 2011
28 slides from Advanced Braking Technology's conference presentation, Oct 19, 2011
Slide 1: Australian Microcap Investment Conference
For personal use only Light Vehicles Garbage Trucks Service Trucks Concrete Trucks Australian Microcap Investment Conference 18-19 October 2011 Ken Johnsen – CEO Advanced Braking Technology Ltd
Slide 2: Video Introduction
For personal use only Video Introduction
Slide 3: Company Snapshot
Company Snapshot For personal use only • An Australian innovation in vehicle braking • Worldwide patents • Proven in the harshest mining conditions • Delivers cost, safety and environmental benefits • High value, high margin product • In-house, low cost manufacturer of products • Attractive value pr
Slide 4: Overview of Technology
Overview of Technology For personal use only Patented Sealed Integrated Braking System Single rotor enclosed in an oil filled housing Rear brake fitted with fail-safe feature Slide 4
Slide 5: Mine Tough Credentials
For personal use only Mine Tough Credentials • Over a decade of mine service • Meets regulatory and mine company safety standards • Delivers operational cost savings • Standard fitment on many mines • Used in harshest environments – Canadian arctic – PNG Jungles – South African underground mines – A
Slide 6: Current Product Applications and Growing!
For personal use only Current Product Applications and GROWING! Slide 6
Slide 7: Blue Chip Customers
Blue Chip Customers For personal use only Slide 7
Slide 8: Business Model (A Technology Company)
Business Model For personal use only (A Technology Company) • Developed in Australia • Manufactured in Thailand (wholly owned) • Direct sales in Australia • Resellers in Canada and South Africa • Developer of ongoing new product applications • Australian Registered Research Agency Slide 8
Slide 9: Mining Business
Mining Business For personal use only • Safety is key driver • Prevents “uncontrolled vehicle movements” • Retro-fit to road vehicles used in mining • Delivers operational savings • Mandated on many sites – Olympic Dam – Xstrata Zinc – George Fisher – BHP – Nickel West – Extends to contractors (Redp
Slide 10: Mining Business
Mining Business For personal use only FY11 FY10 % $000’s $000’s Change Brake Sets $4,041 $1,897 113% Spare Parts* $2,084 $1,656 26% Other $177 $430 -59% Total Sales $6,303 $3,983 58% Contribution $1,819 $439 314% * Increasing set sales drives spares sales
Slide 11: Prospects in Mining
Prospects in Mining For personal use only Australia • FY10 market share 10% (mainly Landcruisers) • FY11 market share 20% • Increasing market share from product improvement • Confident this growth will continue Export – average for last 3 financial years 25% of sales • Market foothold in South Afric
Slide 12: Mining Business: Growth opportunities
Mining Business For personal use only Growth opportunities – Existing business primarily underground – Good penetration into BHP, Xstrata, Rio (& contractors) • Opportunities with Barrick, Anglo, Newcrest, Newmont • Focus is on larger operators – Penetration growing in open cut mines • Coal - Bowen
Slide 13: Growth Strategy: Beyond Business As Usual
For personal use only Growth Strategy Beyond Business As Usual “Breaking into a Mainstream Market by leveraging off the mine tough heritage” Slide 13
Slide 14: Garbage Truck Brake
Garbage Truck Brake For personal use only • Waste industry confirms a need for improved braking solution • Brake service costs are up to $10k pa over 10 year truck life • Safety and reliability a key issue • Elimination of noise and dust pollution a key driver Slide 14
Slide 15: Project Overview
For personal use only Project Overview • Commenced March 2008 • Designed as a $4 million 4 year project • $2 million expenditure achieved “proof of concept” March 2010 • July 2010 Production Validation Commenced • April 2011 project expanded to include and $2 Commonwealth funding to assist market la
Slide 16: From Concept to Reality
From Concept to Reality For personal use only Front Rear Slide 16
Slide 17: Value Proposition
Value Proposition For personal use only • Estimated 2.5 year payback on upfront cost of SIBS • $8k to $10k annual savings on brake service costs • Major service interval extended from 3 months to at least 12 to 24 months • Target incremental cost $25,000 per truck • Pre-assembled wheel ends will be
Slide 18: Current Status/Next Steps
For personal use only Current Status/Next Steps • Production Validation underway to confirm readiness for production and overall reliability • Involves fleet testing 10 vehicles in real world conditions over 1500 hrs each • Includes bench and other testing • Targeting first retro-fit then new truck
Slide 19: Waste Collection Market
For personal use only Waste Collection Market Region New Truck Sales Fleet Size (annual) (est.) Australia 800 6,500 – 8,000 North America 20,000 ~ 200,000 Europe 6,000 ~ 60,000 Urban refuse collection is a major industry in North America, employing over 300,000 people. Its revenues approach US$50 bi
Slide 20: Opportunity
Opportunity For personal use only • Sales in Australia to retro-fit represents a $25 million opportunity (at 30% of available market) • The Australian market alone represents a $10 million p.a. sales opportunity (at 50% penetration) • Australia is only 2% of the North American and European market •
Slide 21: Sales Potential (possible scenario)
Sales Potential For personal use only (possible scenario) GARBAGE TRUCK SALES AND PROFIT CONTRIBUTION 70,000 60,000 AMOUNT $,000's 50,000 40,000 SALES REVENUE GROSS MARGIN AND CONTRIBUTION 30,000 20,000 10,000 0 1 2 3 4 5 Years Assumptions • based on current cost and sales price projections • produc
Slide 22: Company Financial Performance
Company Financial Performance For personal use only $8 $7 $6 REVENUE $5 2nd Half $4 $m’s $3 1st Half $2 $1 $- 05/06 06/07 07/08 08/09 09/10 10/11 * $1,000 $500 P&L $- 2nd Half -$500 After Tax -$1,000 1st Half -$1,500 $000’s -$2,000 Losses largely investment in R&D and establishing Market Slide 22
Slide 23: Financials: Profit & Loss
Financials For personal use only Profit & Loss % Change FY11 FY10 $’000 $'000 Revenues from trading activities $ 6,631 $ 4,452 49% Revenues from other activities $ 607 $ 227 Total revenue $ 7,238 $ 4,679 55% Cost of sales -$ 2,179 -$ 1,250 Adjustment to prior period Cost of Sale $ 141 - Other expens
Slide 24: Financials: Balance Sheet
Financials For personal use only Balance Sheet FY 11 FY10 $ ’0 0 0 $ '0 0 0 C U R R E NT A S S ETS C a s h a n d C a s h e q u iv a le n ts 2 ,7 3 7 5 10 T r a d e a n d o th e r R e c e iv a b l e s 1 ,1 9 4 6 97 In v e n t o r ie s 1 ,7 7 3 1 ,3 3 8 O t h e r c u rr e n t a s s e t s 56 47 T o t a
Slide 25: Technology S Curve
Technology S Curve For personal use only Demonstrating - proven technology - proven business model - proven value proposition
Slide 26: Top Shareholders
Top 20 1. WINDPAC PTY LTD 73,399,750 7.64 For personal use only MR RICHARD PALMER + MRS TRACEY-ANN PALMER 2. 32,500,000 3.38 <PALMER FAMILY RETIRE A/C> 3. DASI INVESTMENTS PTY LTD 31,494,746 3.28 4. MR RICHARD ANDREW PALMER 24,334,036 2.53 MR DALE ALBERT MONSON + MRS DAGMAR ERNA 5. 22,639,843 2.36 M
Slide 27: Conclusion
For personal use only CONCLUSION • $30 million in past investment in R&D is now generating returns • Mining side of the business generating solid cash flow • Focusing on growing mining sales and expanding mining product range through ongoing product development • On track to enter global waste marke
Slide 28: For personal use only
For personal use only www.advancedbraking.com ASX Code “ABV” Email: [email protected] Phone: +61 (0) 8 9273 4800 Fax: +61 (0) 8 9201 9986 Slide 28
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