Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Shareholder Meeting (October 2013)
43 slides from Advanced Braking Technology's shareholder meeting presentation, Oct 29, 2013
Slide 1: Presentations to be delivered at the 2013 AGM
For personal use only 29th October 2013 AUSTRALIAN STOCK EXCHANGE LIMITED Electronic Lodgement PRESENTATIONS TO BE DELIVERED AT THE 2013 AGM Appended are copies of the Chairman’s address and the Chief Executive Officer’s and the Chief Financial Officer’s presentations to be delivered to Shareholders
Slide 2: Chairman's Address to the 2013 Annual General Meeting
29th October 2013 For personal use only ASX/MEDIA RELEASE Chairman’s Address to the 2013 Annual General Meeting Advanced Braking Technology Ltd Good Afternoon My name is Bruce Grey and I am the Chairman and a Non-Executive Director and I will Chair the formalities for today's meeting. I am advised t
Slide 3: Chairman's Address: three year growth plan
I ask all those present to note that the shareholders' register is available for inspection and that the proxies affecting today's resolutions are tabled and available for inspection. I will now present my address and then we’ll move through the statutory business of the meeting. Following closure o
Slide 4: Chairman's Address: sales pipeline and trading update
The sales pipeline is developing well with a very good build-up of interest, particularly with a range of Perth local councils. The 6 month sales pipeline currently exceeds $1 million of prospective sales and the supply chain is being developed to meet this demand. A project has commenced to evaluat
Slide 5: Chairman's closing remarks
In closing, I would comment that in 4 months as a Director and just over a month as Chairman, I have had the opportunity to review the ABT technology and future prospects. ABT has good products with good market potential. I am not convinced however that we yet have the correct strategy in place to d
Slide 6: Annual General Meeting 29th October 2013
For personal use only Advanced Braking Technology Limited Annual General Meeting 29th October 2013 Advanced Braking Technology | Microcap Conference Presentation
Slide 7: Agenda
Agenda For personal use only 1. Board Introduction 2. Chairman’s Address 3. Formal Business 4. CEO’s Report 5. CFO’s Report 6. Questions and Answers Advanced Braking Technology
Slide 8: ABT Board
ABT Board For personal use only Mr Bruce Grey Mr Ken Johnsen Chairman Executive Director and CEO › Managing Director of Advanced › Over 40 years experience in the Manufacturing CRC Ltd, Non-Executive development and licensing of advanced Director of CAP XX listed on AIM in London technology for the
Slide 9: New Chairman – Bruce Grey
New Chairman – Bruce Grey For personal use only Technology Commercialisation Credentials • Prior to current role as MD of Advanced Manufacturing CRC Limited served as MD as Bishop Technology Group Limited for 12 years • Bishop is an Australian technology company established to commercialise are rang
Slide 10: Chairman's Address
Chairman’s Address For personal use only Mr Bruce Grey Chairman Advanced Braking Technology
Slide 11: Formal Business
Formal Business For personal use only Formal Business Advanced Braking Technology
Slide 12: Proxies
Proxies For personal use only Accounts and Reports – receive and consider the financial report and the reports of the Directors and of the Auditor for the financial year ended 30 June 2013 PROXIES RECEIVED Resolution For Discretionary Abstain Against Total 1 Adoption of Remuneration Report 56,008,02
Slide 13: CEO's Report
CEO’s Report For personal use only Mr Ken Johnsen Chief Executive Officer Advanced Braking Technology 8
Slide 14: Video Presentation
Video Presentation For personal use only http://www.youtube.com/watch?v=GAZbW8B9eFA Advanced Braking Technology 9
Slide 15: FY13 Operational Highlights
FY13 Operational Highlights For personal use only Operations › Successful first production and delivery of SIBS® Truck Brakes › Brake sets in-service on eastern and western seaboards › Reliability and low wear of SIBS® Truck Brake reinforced through ongoing in-service operation › Suppliers ready for
Slide 16: Company Overview
Company Overview For personal use only › ABT is a developer, manufacturer and ABT is a Listed Company worldwide distributor of its on the ASX award-winning, patented Sealed Share Price $0.016 Integrated Braking System (SIBS®) Shares on Issue 1.1 billion › SIBS® is a fail-safe, enclosed ‘wet’ Market
Slide 17: Vision and Strategy
Vision and Strategy For personal use only Vision: To be the industry leader in developing, manufacturing and distributing safe and efficient braking technology across multiple applications and sectors Strategy: › Pursue robust growth through: • Leveraging strong mining market positioning to provide
Slide 18: What do we do?
What do we do? For personal use only › Provide improved braking solutions for vehicles that; › Can be factory fitted or retro-fitted › Readily adapted for most vehicle types › Offer greatly reduced servicing costs › Provide improved reliability and safety › Totally eliminate fine particle emissions
Slide 19: Investment Proposition
Investment Proposition For personal use only › Unique, proven and patent protected technology › Global market potential across multiple applications and sectors › Significant competitive advantages over alternative products › Compelling customer offering – ‘triple bottom line’ benefits › Robust comm
Slide 20: The Business Model
The Business Model For personal use only Proprietary technology = High margins Designed Manufactured Shipped Perth Thailand directly to export markets Selling & Service Agents located in growth markets Advanced Braking Technology 6
Slide 21: Customer Value Proposition
Customer Value Proposition For personal use only › A tangible pay back period on up-front cost TOTAL COST OF OWNERSHIP › As short as 12 months in harsh conditions $60,000 › Improved vehicle availability Standard Rear Brakes $50,000 Cost (Purchase, Parts & Labour) › Reduced spares cost and extends se
Slide 22: SIBS Mining Brakes: Established Globally
SIBS® Mining Brakes: Established Globally For personal use only Turkey Canada USA South Africa PNG Australia New Zealand Ghana South Africa Advanced Braking Technology 17
Slide 23: Blue Chip Customers
Blue Chip Customers For personal use only Advanced Braking Technology 18
Slide 24: Mining: Growth Drivers
Mining: Growth Drivers For personal use only • Slowdown in sector has renewed focus on improving mine productivity › SIBS® brakes increase productivity by reducing brake overhaul and therefore vehicle downtime on site • Increased focus on Corporate and Government Safety Regulations › SIBS® brakes si
Slide 25: Next Horizon - On Road Truck Brakes
Next Horizon - On Road Truck Brakes For personal use only Identified need for improved truck brakes: › Brakes are the second biggest expenditure after fuel for garbage truck fleet operators › Brake reliability and safety concerns due to high wear and maintenance requirements › Public desire for nois
Slide 26: Brake Safety in the News!!
Brake Safety in the News!! For personal use only Advanced Braking Technology 21
Slide 27: SIBS Truck Brakes: Customer Proposition
SIBS® Truck Brakes: Customer Proposition For personal use only › Financial Savings: • SIBS® Truck Brakes are virtually wear and maintenance-free, unlike conventional drum and disc brakes • Dramatically reduces frequency of brake overhauls from more than twice a year, to once every two years or longe
Slide 28: Compelling Commercial Model
Compelling Commercial Model For personal use only Attractive and established business › High margin, low cost model › Highly scalable cost base › Established supplier base › Established global contacts through SIBS® mining › Benefits from offshore outsourced manufacturing › Low capital intensity Adv
Slide 29: SIBS Truck Brakes: Revenue Potential
SIBS® Truck Brakes: Revenue Potential For personal use only Australia Annual sales 800 trucks Installed Fleet 8,000 trucks 25% share of retro-fit = $60M revenue over 3 to 5 years 50% share new sales = $12M pa North America Annual sales 20,000 trucks Installed Fleet 200,000 trucks 25% share of retro-
Slide 30: SIBS Truck Brakes: Market Strategy
SIBS® Truck Brakes: Market Strategy For personal use only › Based on the proven mining brake, ABT has invested over $8 million developing the technology for application on road going heavy trucks › Development was directed to first application in the waste industry and commercial sales have now comm
Slide 31: Marketing Activity
Marketing Activity For personal use only › Direct contact with major waste companies › Direct contact with Local Councils › Trade shows • Waste - Perth – September 13 • Waste - Melbourne – November 13 • Truck Show – Melbourne - April 14 › Trade Press • Inside Waste • Diesel Mechanic › Branding Study
Slide 32: Current Status – Truck Brake
Current Status – Truck Brake For personal use only › 6 Month sales pipeline >$ 1 million and growing › Dealer training ongoing › Installations scheduled in 3 states › Strong interest/order book building particularly with WA Local Councils › In-field experience confirming key benefits › Inventory bui
Slide 33: Business Unit Structure
Business Unit Structure For personal use only › Post July 1st – business divided in two business units › Truck Brake Business Unit – headed by Sam Leighton › Mining Brake Business Unit – headed by Martin Johnston › New General Manager Appointed in Thailand – Wayne Johnston › Director Business Develo
Slide 34: FY14 Outlook and Priorities
FY14 Outlook and Priorities For personal use only › Commercial roll out of the SIBS® Truck Brake in Australia • A progressive and controlled launch is underway • Long term sales expected to provide a consistent income stream › Strong focus on maintaining mining sales to meet or exceed current levels
Slide 35: Q1 FY14 - Snapshot
Q1 FY14 - Snapshot For personal use only › Q1 - Mining sales below expectation down 36% on pcp › Sales upturn in October to within 12% of pcp YTD. › Truck brake 6 month weighted sales pipeline > $1 million › Cost down actions in mining to counter lower sales › Q1 opex down 10% on pcp › Q1 cash at ba
Slide 36: CFO Report
CFO Report For personal use only Chief Financial Officer Clare Madelin Advanced Braking Technology 31
Slide 37: FY13 Financial Highlights
FY13 Financial Highlights For personal use only Financial › Total revenues of approximately $8 million: • Solid sales from mining sales ($5.9m) • R&D Tax Incentive and grant income ($2.1 million) › Significant investment in SIBS® Truck Brake ahead of commercialisation › Capitalisation of Truck Pre-P
Slide 38: Sustained Revenue Growth
Sustained Revenue Growth For personal use only Total Revenue Profit & Loss (After Tax) $9,000 $8,000 $1,000 $000’s $7,000 $- $000’s $6,000 -$1,000 $5,000 -$2,000 $4,000 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 $3,000 First Half Second Half $2,000 $1,000 $- Large investment in new product de
Slide 39: 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 40: Balance Sheet
Balance Sheet For personal use only FY2013 FY2012 CURRENT ASSETS $000’s $000’s Cash and Cash equivalents 1,197 2,925 Trade and other Receivables 838 797 Inventories 2,094 2,225 Other current assets 1,424 839 Total current assets 5,553 6,786 NON-CURRENT ASSETS Trade and other Receivables 32 31 Proper
Slide 41: FY13 Profit and Loss
FY13 Profit and Loss For personal use only 2013 2012 $'000 $'000 Revenues from trading activities 5,978 6,299 Revenues from other activities 2,175 1,669 Total Revenue 8,153 7,968 Cost of sales ( 2,312) ( 2,461) Operating expenses ( 7,832) (6,882) Overheads capitalised as development and pre- 1,071 1
Slide 42: Q&A Questions?
Q&A For personal use only Questions? Advanced Braking Technology
Slide 43: Contact details
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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