Advanced Braking Technology Limited · ASX:ABV
Advanced Braking Technology — Shareholder Meeting (October 2011)
39 slides from Advanced Braking Technology's shareholder meeting presentation, Oct 27, 2011
Slide 1: Presentations to be delivered at the 2011 AGM
For personal use only 27th October 2011 AUSTRALIAN STOCK EXCHANGE LIMITED Electronic Lodgement PRESENTATIONS TO BE DELIVERED AT THE 2011 AGM Appended are copies of the Chairman’s Address and the CEO’s and CFO’s presentations to be delivered to Shareholders at the Company’s 2011 Annual General Meetin
Slide 2: Chairman address to the 2011 Annual General Meeting
For personal use only 27 October 2011 Chairman address to the 2011 Annual General Meeting Good morning My name is David Humann and I am the Chairman of this meeting and of your board of Directors. I should like to welcome all of you to our 2011 Annual General Meeting of Shareholders. I encoura
Slide 3: For personal use only
As I said in my chairman’s letter, which is included in the 2011 Annual Report you will have received, the Company had made great progress during the year under review, and we were pleased to announce our first year of profit, which indicates that we have established a sound and sustainable busine
Slide 4: Annual General Meeting
For personal use only Annual General Meeting 27th October 2011
Slide 5: Agenda
For personal use only Agenda Chairman’s Address Formal Business CEO’s Report CFO’s Report Questions and Answers
Slide 6: Chairman's Address
For personal use only Chairman’s Address Mr David Humann Chairman Advanced Braking Technology Ltd
Slide 7: Formal Business
For personal use only FORMAL BUSINESS
Slide 8: Proxies
Proxies For personal use only Resolution For Discretion- Abstain Against Total ary 1 To adopt the Remuneration report 25,458,015 120,000 153,261,206 895,000 179,734,221 2 Re-election of Mr D Slack as a director 40,436,338 120,000 138,832,883 345,000 179,734,221 Approval of agreement to pay Mr David
Slide 9: CEO's Report
For personal use only CEO’s Report Ken Johnsen
Slide 10: Your Company
For personal use only Your Company ABT is in the business of developing, manufacturing and commercialising an innovative enclosed “wet” braking system – the Sealed Integrated Braking System (SIBS) for both off-road (mining) applications and on-road (frequently stopping vehicles) applications.
Slide 11: FY2011 Highlights
FY2011 Highlights For personal use only July 2010 – Pre- Pre-production contract for garbage truck brake development signed September 2010 – Launch of SIBS II Landcruiser brake October 2010 – Successful capital raising October 2010 – 96 set order from Xstrata Zinc December 2010 – Maiden half year pr
Slide 12: The SIBS Brake System
The SIBS Brake System For personal use only Sealed Integrated Brake System (SIBS): Brake rotor and pads enclosed in a sealed housing. Braking elements operate in a fluid that dissipates the heat generated by braking. Very low wear rates due to reduced heat at braking interface. Floating rotor delive
Slide 13: Mine Site Safety
For personal use only Mine Site Safety DELIVERS THE FOUR LEVELS OF SAFETY REQUIRED 1 Automatic fail safe spring applied hydraulic release brake. 2 Operator applied emergency brake 3 Integrated park brake to ensure full automatic brake application through selected interlocks 4 Sealed service brake fr
Slide 14: The Mining Business
The Mining Business For personal use only The “brake system of choice” on major Australian mines Penetration doubled in FY2011 to an estimated 20% market share Xstrata Zinc 96 set order boosted first half result 19% export sales on the back of strong Australian sales
Slide 15: SIBS II
For personal use only SIBS II New Product Features - Landcruiser Improved servicing Replaceable wheel end External wear indicator Upgraded Specification Higher grade fluid handling hoses and fittings Improved operator interface Audible and visual indicators of brake status
Slide 16: Mining Business
Mining Business For personal use only FY11 FY10 % Change $000’’s $000 $000’’s $000 Brake Sets $4,041 $2,106 96% Spare Parts $2,084 $1,656 26% Other $177 $220 -20% Total Sales $6,303 $3,983 58% Contribution $1,819 $439 314% Mining provides significant contribution to overall business
Slide 17: Site Requirement at George Fisher
Site Requirement at George Fisher For personal use only 17th May 2011 …. All light vehicles used in the underground environment MUST be fitted with the following safety system which will be enforced from 1/9/2011-: “Advanced Braking Technology’s (ABT) – Light Vehicle SIBS II Fail Safe Wheel End Wet
Slide 18: Mining Applications
Mining Applications For personal use only Light Vehicle Wheel End Brakes Light Truck Wheel End Brakes Heavy Vehicle Driveline Brakes Page 18
Slide 19: Mining Customers
For personal use only Mining Customers
Slide 20: 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, Barrick, Anglo, Newcrest, Newmont • Focus is on larger operators Penetration growing in open cut mines • Coal - Bowen
Slide 21: SIBS Garbage Truck Brake
SIBS Garbage Truck Brake For personal use only Based on proven SIBS mining brake design Offers: Dramatic reductions in operating costs Eliminates particle and noise pollution Improves vehicle braking safety Retrofit system for existing fleets Applicable to most vehicles in global fleet
Slide 22: 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 program commenced April 2011 $2 million Commonwealth funding to assist commercialisation - project expande
Slide 23: Value Proposition
For personal use only Value Proposition 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 brakes will be supplied and w
Slide 24: Current Status
Current Status For personal use only Production Validation (“PV”) underway to confirm readiness for production and overall reliability Involves fleet testing 10 vehicles in real world conditions over 1,500 hrs each Includes bench and other testing Qualification of production suppliers and processes
Slide 25: Fleet Trial Hardware Manufacture
Fleet Trial Hardware Manufacture For personal use only
Slide 26: Test Activity
TEST ACTIVITY For personal use only SW231 - 10/07/2008 300 1000 900 250 Brake Pre ssure (KPa) / Vehicle S peed x10 (kmh) 800 700 200 System Pressure (KP a) Accelerated Wear Testing 600 Front Brake Rear Brake Road Testing 150 500 Vehi cle Speed x10 System Pressure 400 100 300 200 50 100 0 0 80 90 100
Slide 27: Planned Launch Strategy
Planned Launch Strategy For personal use only Targeting retro-fit then new truck sales Commonwealth funding supporting launch Planning for initial launch of 50 non – ABS trucks for retro-fit applications Followed by 50 ABS trucks for “factory fit” applications Currently targeting a production decisi
Slide 28: Royalty Re-negotiation
Royalty Re-negotiation For personal use only (Brake Developments Pty Ltd) March 2008 contract based on 10% royalty for $4 million of funding funding March 2008 – March 2010 $2 million provided to achieve proof of concept sign off. July 2010 – December 2010 $0.5 million provided for initiation of PV
Slide 29: Current Priorities
For personal use only Current Priorities SALES Continue sales momentum in mining Focus on large fleet operators Expand service agent network Grow export sales Prepare for garbage truck production Development Expand SIBS II features to all mining product Achieve Production “sign off” off” for Garbage
Slide 30: Conclusion
For personal use only Conclusion Maiden profit demonstrates turning point in the evolution of the Company. Growth in mining sales last year which is continuing this year is underpinning the viability of the Company and supporting the development activity. The Company’s business model has been valida
Slide 31: CFO's Report
For personal use only CFO’s Report Clare Madelin
Slide 32: Profit and Loss
Profit and Loss For personal use only 2011 2010 % $’000 $’000 Increase Revenue Revenue from trading activities 6,631 4,452 49% Revenue from other activities 607 227 Total revenue 7,238 4,679 55% Cost of sale (2,179) (1,250) Adjustment to prior period cost of sales 141 - Other expenses (5,540) (4,990
Slide 33: Balance Sheet
Balance Sheet For personal use only 2011 2010 $ ’0 0 0 $ ’0 0 0 C U R R EN T AS SE TS C a s h a n d C a s h e q u iv a le n t s 2 ,7 3 7 510 T r a d e a n d o t h e r R e c e iv a b l e s 1 ,1 9 4 697 I n v e n to ri e s 1 ,7 7 3 1 ,3 3 8 O t h e r c u r re n t a s s e t s 56 47 T o t a l c u rr e n
Slide 34: Company Financial Performance: Revenue from Trading Activities
Company Financial Performance For personal use only Revenue from Trading Activities 7000 6000 5000 * Engi nee ri ng $'000 4000 Pa rts 3000 Bra ke se ts 2000 1000 0 2005 2006 2007 2008 2009 2010 2011 Slide 31
Slide 35: Profit or Loss after Tax - History
Company Financial Performance For personal use only Profit or Loss after Tax - History 1000 0 2005 2006 2007 2008 2009 2010 2011 -1000 P&L after Tax $'000 -2000 -3000 -4000 -5000
Slide 36: FY2012 Q1 Snapshot
FY2012 Q1 Snapshot For personal use only Mining sales in 1st quarter running 46% ahead of Q1FY2011 Cash position $2.221 million as at Sept 30, 2011 [June 30 - $2.737 m] Net operating cash outflow ($260k) Net investing cash outflow ($302k), includes; • $228k – capitalised pre- pre-production activity
Slide 37: Conclusion
For personal use only Conclusion First year of profit Significant improvement in sales Increasing product diversification Strong balance sheet Virtually no debt Solid base to expand sales and services
Slide 38: Questions
For personal use only Questions
Slide 39: For personal use only
For personal use only www.advancedbraking.com Email: [email protected] Phone: +61 (0) 8 9273 4800 Fax: +61 (0) 8 9201 9986
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