Theon International PLC · EURONEXT:THEON
Theon International — Investor Presentation (February 2024)
15 slides from Theon International's investor presentation, February 2024
Slide 1: Company presentation
Company presentation February 2024
Slide 2: Disclaimer
DISCLAIMER IMPORTANT: Please read the following before continuing. The following applies to this document, which has been prepared by Theon International PLC (the “Company”) solely for discussion purposes in relation to the Company and its subsidiaries (together, the “Group”) for information and bac
Slide 3: Theon International at a glance
THEON INTERNATIONAL AT A GLANCE Pure-play Tailor-made Technologically advanced Leading pure-play optronics 100% Fully 16% provider with state-of-the-art pure-play supplier customised workforce in technological set-up of mission critical product offering Design & optronics available Development1 Grow
Slide 4: Leading independent provider of high quality night vision & thermal imaging solutions
LEADING INDEPENDENT PROVIDER OF HIGH QUALITY NIGHT VISION & THERMAL IMAGING SOLUTIONS Set up in 1997 as a In 2010, Theon won the Partnership with Established a German Won the largest tender Joint venture with Theon supplier to its domestic public tender for HARRIS US in 2016 for subsidiary in 2019,
Slide 5: Full suite of night vision & thermal imaging products tailored to customer needs
FULL SUITE OF NIGHT VISION & THERMAL IMAGING PRODUCTS TAILORED TO CUSTOMER NEEDS Night vision Thermal imaging Monoculars ARGUS THERMIS Stand-alone THERMIS Mk2 Goggles Binoculars MIKRON NYX Weapon Clip-on THERMIS Clip-on sights ARGUS Modular PANOPTES Customised thermal sights TH100 TH60/DSA Stand-alo
Slide 6: Attractive global industry dynamics with envisaged long-lasting momentum
ATTRACTIVE GLOBAL INDUSTRY DYNAMICS WITH ENVISAGED LONG-LASTING MOMENTUM Platform-based night vision / Dismounted night vision / Global defence Global defence electronics thermal imaging thermal imaging ‘22-27E CAGR ‘22-27E CAGR ‘22-27E CAGR ‘22-27E CAGR 11.5% Addressable market CAGR 16,8% 10,2% 9,5
Slide 7: Disruptive business model relying on global reach and proprietary technological capabilities
DISRUPTIVE BUSINESS MODEL RELYING ON GLOBAL REACH AND PROPRIETARY TECHNOLOGICAL CAPABILITIES IN A FULLY INTEGRATED PRODUCTION SET-UP Process & production capability Highly skilled workforce1 Admin functions Other qualifications • Research, Design & Prototyping 13% 27% BD & BSc Marketing • Testing &
Slide 8: Theon's expertise, engineering, and manufacturing capabilities are instrumental to creating mission critical products
THEON’S EXPERTISE, ENGINEERING, AND MANUFACTURING CAPABILITIES ARE INSTRUMENTAL TO CREATING MISSION CRITICAL PRODUCTS Optical engineering and design is a significant contributor to the optical performance of the system Theon value add in product System engineering and design determines the robustnes
Slide 9: Long-standing relationships with a diversified global customer base
LONG-STANDING RELATIONSHIPS WITH A DIVERSIFIED GLOBAL CUSTOMER BASE LEADING TO REPEATING BUSINESS Governmental procurement agencies and armed forces Defence primes1 Selected key customers Other key customers Dismounted OCCAR Since 2021 US Marine Corps Since 2019 Latvia Brazil UK Ministry of Defence
Slide 10: Theon partnerships enable global customer reach and support an asset light manufacturing footprint
THEON PARTNERSHIPS ENABLE GLOBAL CUSTOMER REACH AND SUPPORT AN ASSET LIGHT MANUFACTURING FOOTPRINT Vectronix Country Germany United States United States Switzerland Saudi Arabia Contract No specific contract OCCAR NVG programme United States Marine Corps Armasuisse Saudi Arabian Army Product Multipl
Slide 11: Attractive financial profile characterised by high revenue growth, high profitability and low capital intensity
ATTRACTIVE FINANCIAL PROFILE CHARACTERISED BY HIGH REVENUE GROWTH, HIGH PROFITABILITY AND LOW CAPITAL INTENSITY ~€540m soft order €215-220m 2023E revenue €40m 2022A EBIT backlog1 €143m 2022A revenue c.28% EBIT margin 2.5x 2023E revenue5 >50% growth y-o-y 2.8% Capex and 1.0% D&A €38m 2022A OpFCF2 0.3
Slide 12: Revenue visibility increasing on expected orders and potential options
REVENUE VISIBILITY INCREASING ON EXPECTED ORDERS AND POTENTIAL OPTIONS Expected order backlog and pipeline of short-term opportunities Geographical breakdown Newly awarded contracts and expected orders ~€1.2bn RoW Asia and MENA Of which ~€520m related to newly ~€590m awarded contracts Europe North €
Slide 13: Outlook & targets
OUTLOOK & TARGETS 2023 target 2024 target Medium term target c.60% of soft order backlog1 Growth in line with addressable Revenue €215-220m covering more than 90% of market targeted revenue for the year Converging to EBIT margin mid-twenties Normalisation to Working capital pre-2022 levels in terms
Slide 14: Recent contract awards
RECENT CONTRACT AWARDS 29 November 2023: Elbit America wins USMC contract with Theon as subcontractor • Elbit Systems of America is awarded a five-year $500 million IDIQ contract for the supply of the Squad Binocular Night Vision Goggle systems (SBNVG) to the US Marine Corps (USMC) • Theon Sensors,
Slide 15: Platform well positioned to drive further organic and inorganic growth beyond current business plan
PLATFORM WELL POSITIONED TO DRIVE FURTHER ORGANIC AND INORGANIC GROWTH BEYOND CURRENT BUSINESS PLAN Organic growth opportunities Inorganic growth opportunities Market tailwinds New product innovation Identified pipeline Core night vision and thermal Adjacent imaging markets markets Adjacent products
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