LASERBOND LIMITED — Investor Presentation 2021

Sep 13, 2021

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September 2021 ASX: LBL

DISCLAIMER

No responsibility for contents of Investor Presentation

To the maximum extent permitted by law, LaserBond Limited and representatives: Make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this Investor Presentation or any other written or verbal communication transmitted or made available to any recipient; Accept no responsibility or liability as to the adequacy, accuracy, completeness or reasonableness of this Investor Presentation or any other written or verbal communication transmitted or made available to any recipient; and Accept no responsibility for any errors or omissions from this Investor Presentation whether arising out of negligence or otherwise.

Accuracy of projections and forecasts

This Investor Presentation may include certain statements, opinions, estimates, projections and forward looking statements with respect to the expected future performance of LaserBond Limited. These statements are based on, and are made subject to, certain assumptions which may not prove to be correct or appropriate. Actual results may be materially affected by changes in economic and other circumstances which may be beyond the control of LaserBond Limited. Except to the extent implied by law, no representations or warranties are made by LaserBond Limited, its advisers or representatives as to the validity, certainty or completeness of any of the assumptions or the accuracy or completeness of the forward looking statements or that any such statement should or will be achieved. The forward looking statements should not be relied on as an indication of future value or for any other purpose.

No offer to sell or invitation to buy

This Investor Presentation does not, and should not be considered to, constitute or form part of any offer to sell, or solicitation of an offer to buy, any shares in LaserBond Limited, and no part of this Investor Presentation forms the basis of any contract or commitment whatsoever with any person. This Investor Presentation does not constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is not permitted under applicable law. Distribution of this Investor Presentation in or from certain jurisdictions may be restricted or prohibited by law. Recipients must inform themselves of and comply with all restrictions or prohibitions in such jurisdictions. Neither LaserBond Limited, its advisers or representatives accept any liability to any person in relation to the distribution or possession of this Investor Presentation from or in any jurisdiction.

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2

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Business Overview & Financial Operational Strategy & Appendices Performance Summary Performance Performance Prospects

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BUSINESS OVERVIEW

LaserBond provides advanced surface engineering products and technologies that reclaim worn parts and improve new parts, enabling significant improvement in wear life and performance. Benefits include ‘better than new’ wear life (up to 10x), higher productivity, lower maintenance costs, energy efficiency and reduced scrapping of worn parts.

Exposure to recurring industry R & D wear problems leads to research for better solutions & product New surface engineering opportunities materials and application technologies

Services Division

Repair and refurbishing worn or damaged machine parts

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A wide range of customers and industries seeking better than new repair of (mostly) wear related machinery maintenance problems

Technology developed in collaboration with researchers and industry partners

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Technology Division

Products Division

Design, manufacture, licensing & support of tailored surface engineering systems in specific applications

Specialised surface engineered components for OEM partners and large end users

Global OEM partners and large end users industries which are seeking strategic advantage from high performance wear components

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4

PERFORMANCE SUMMARY

A solid performance on all metrics from a business that has invested in R&D over the long-term to innovate and stay ahead of the market, introducing groundbreaking products and technologies to a bluechip customer base spread across essential industries.

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NPAT
$M
2.8 2.8 2.8
1.0
FY18 FY19 FY20 FY21
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Earnings Per Share

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Cents
3.0 2.9 3.0
1.0
FY18 FY19 FY20 FY21
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Net Cash Flow
$M
1.8
0.8 0.9
-0.6
FY18 FY19 FY20 FY21
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Dividend
Cents
1.2
1.0
0.9
0.5
FY18 FY19 FY20 FY21
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Net Tangible Assets Per Share Safety (LTIFR)
Cents
4.1
14.8
12.8
10.6
8.3 2.7
1.7
FY18 FY19 FY20 FY21 FY19 FY20 FY21
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Business Overview & Financial Operational Strategy & Appendices Performance Summary Performance Performance Prospects

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FY21 EARNINGS

While LaserBond’s net profit was largely flat in FY21, it still reflects the fundamental strength and opportunity of a business that has been consistently investing in growth as well as significantly curtailed by Covid.

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Revenue
$M
24.7
22.7 22.2
15.6
FY18 FY19 FY20 FY21
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• An 11.2% increase in revenue is proof of the robustness of the business

 A decrease in Services Division revenue and the inability to further the offshore growth plans for the Technology Division in FY21 were compensated by a strong performance in the Products Division

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EBITDA
$M
6.2 6.4
4.9
2.2
FY18 FY19 FY20 FY21
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• EBITDA has grown solidly, despite continued investment in sales and marketing people as well as global sales agents to capitalise on valuable offshore markets with technology sales

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NPAT
$M
2.8 2.8 2.8
1.0
FY18 FY19 FY20 FY21
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• Again, net profit was flat as a result of both continued investment in resources to drive future growth and the Covid outbreak, curbing offshore expansion plans, but revealing an underlying strength in the business as its adapts to vastly new operating conditions

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7

CASH AND WORKING CAPITAL

A portfolio of bluechip customers and unwavering cost control has delivered consistently strong cash from operations that has enabled the increase in cash balances and working capital whilst simultaneously expanding sales organically and through execution of acquisitive growth plans.

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Cash from Operations Cash at Bank
$M $M
4.8 4.9
4.1 4.3 4.0
2.2
1.4
0.4
FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21
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• Maintaining a sufficient level of Cash at Bank enables LaserBond to avoid the high costs of invoice financing and other working capital facilities

• Operating in essential industries has meant that, despite Covid, the business has continued to generate cash

• Over the past four years, receipts from customers have increased 40% from $18.9M to $26.6M while cash payments to suppliers and employees have only increased 13% from $18.0M to $20.4M

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Working Capital
$M
8.8
7.3
5.9 6.1
FY18 FY19 FY20 FY21
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• Comfortable levels of working capital have been maintained

• Working capital is being increased in conjunction with the new demand being generated from Victoria

• The solid working capital position also facilitates continued R&D investment

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8

DEBT

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Financial Liabilities
HP & finance leases
$M
LaserBond’s balance Facility lease liabilities
sheet is strong, with 4.8
low levels of net debt, 4.9
5.9
which can support
3.6
2.9
further growth, both 1.9
organic and FY18 FY19 FY20 FY21
acquisitive.
 LaserBond has no debt other than
equipment leases to fund PP&E acquisition
 Facility lease liabilities relate to the leases
of operating premises
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Net Debt
Total net debt
$M$M 4.5 5.8
Net debt ex facility
lease liabilities
0.7
1.0
0.5
-0.4
FY18 FY19 FY20 FY21
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• Despite the increasing financial liabilities, net debt has remained at a consistently conservative level given the increase in cash balances, particularly if the effects of facility lease liabilities are excluded

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Business Overview & Financial Operational Strategy &
Appendices
Performance Summary Performance Performance Prospects
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SERVICES DIVISION OVERVIEW

Despite a sizeable impact from Covid on maintenance activities by customers affecting the Services Division, the team devised trading solutions that saw a 13.7% increase in revenue between the first and second halves.

• Offers reclamation of worn industrial components using LaserBond® cladding and thermal spraying as well as high capacity welding, machining and heat treatment to provide a complete service suite - extends surface life of plant and equipment between 5 and 10 times

• In FY21, returned a 9.3% decrease in revenue and a 25.8% drop in EBITDA as a direct result of Covid-19

• 2H21 reported a 13.7% growth in revenue, reflecting a ramping up of demand from customers who had delayed maintenance in the first half as well as a higher contribution from the Victorian operations after the easing of restrictions at the end of 1H21

 Services revenue is lower than expected due to extended border closure between VIC and NSW which delayed the installation and commissioning of a LaserBond® cladding unit at the new Victorian operations. Planned installation and commissioning via remote means is currently underway, with revenue anticipated to flow through in 2Q22

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Services Revenue
$M
12.8
11.6
11.2
10.0
FY18 FY19 FY20 FY21
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Services EBITDA
$M
4.0
3.0
2.6
2.0
FY18 FY19 FY20 FY21
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PRODUCTS DIVISION OVERVIEW

The Products Division delivered a stellar performance with a 41.3% increase in revenue, despite not realising expected gains from US sales of steel mill rolls, and anticipates strong sales from proprietary products in offshore markets when borders re-open.

• Manufactures products incorporating LaserBond® cladding applications, such as steel mill rolls, rotary feeders and a range of OEM consumables utilised across a breadth of industries

• Revenue increased 41.3% and EBITDA by 37.8%

• Travel restrictions curtailed anticipated growth in the sale of steel mill rolls in the US and Asia

• Greater resources are being devoted to this area of sales with recruitment of an agent in the US and a project underway with Austrade to build the Asian market

• First LaserBond branded rotary feeder currently en-route to the US to be tested against local standards. Expect that it will pass all tests and open up that market for further sales in FY22

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Products Revenue
$M
13.0
9.1 9.2
5.6
FY18 FY19 FY20 FY21
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Products EBITDA
$M
4.1
3.0
2.7
0.8
FY18 FY19 FY20 FY21
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TECHNOLOGY DIVISION OVERVIEW

• Enables customers to bring LaserBond cladding technology in-house under long-tailed licensing agreements which cover equipment supply, technology usage and the supply of associated consumables

Planned FY21 revenue for long-tailed licensing agreements which cover equipment supply, technology usage and the supply of associated consumables the Technology Division was delayed by extensive  With the support of our global agents we’ve been able to reduce the impact of field testing by LBL’s the Covid-induced difficulties associated with large–scale offshore sales  customer. However, the Achieved one licensing agreement in North America in May, which will agreement was executed in contribute $1.5 million to earnings in FY22 and a further expected $0.8 million p.a. in licensing fees and consumable sales over the course of the 7 year May with a 7-year licence license. The agreement was preceded by extensive testing by the customer for LaserBond® cladding which produced tremendous results equipment & consumables.  In August 22 received an order for Technology sale to Curtin University This, along with revenue from an additional 2  In September 22 entered a 10 year Technology licensing agreement with a NZ company which will provide $1.4 million initial revenue and ongoing license Technology Sales, will be fees and consumable sales for the term of the agreement delivered in FY22 and provide future recurring  Delivery of the equipment for all three Technology sales will be achieved during FY22 providing revenue of $3.9 million plus ongoing consumables sales and revenue. license fees

• Intention beyond FY22 is to obtain at least two such agreements annually, building a recurring revenue stream of technology fees and consumables supply

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Technologies Revenue
$M
2.4
0.0 0.2 0.1
FY18 FY19 FY20 FY21
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Technologies EBITDA
$M
0.3
0.0 0.0 -0.1
FY18 FY19 FY20 FY21
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13

MARKETPLACE

This small crosssection of our customers indicates the calibre of the organisations who see the enormous productivity value of our proprietary technologies, products and services. Other sectors include transport and shipping, agriculture and oil and gas.

Mining and Minerals Processing Heavy Industry Construction Manufacturing Energy

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14

INNOVATION TRACK RECORD

Began designing more energy efficient laser Second large 0EM Expanded into VIC with cladding cells and with requested LaserBond assistance of a to manufacture its acquisition of UST “Retooling for Climate products. This led to Manufacturing Commenced operations Change” grant the introduction of the Modernisation grant as a service business in After decades of Second LaserBond® commissioned a cell Products Division approved to assist with NSW with the cladding cell designed that is still in operation which later began design, manufacture & introduction of High successful R&D & built under R&D with in the NSW facility manufacturing installation of a fully Pressure High Velocity Began selling superior investment, the Oxy Fuel thermal spray technology to reclaim assistance from a govtgrant. Still in operation Moved into custom-built facilities in NSW LaserBond-branded products quality steel mill rolls into the US after automated LaserBond® Cladding worn components in the SA facility and acquired a local Designed steel mill roll tremendous success in Cell to be completed in business has a suite of business to build technology Australian market. NSW by Mar 2022 proprietary products 1992* 2005 2012 capacity and capability 2016 2018 2020 and technologies ready for 2001 2008 2013 2017 2019 2021 Having developed a Closed Technology commercialisation First LaserBond® superior surface Expanded operations A solution for a Next Generation licensing agreements engineering solution Manufacturing Grant in North America, cladding cell designed, to SA customer resulted in for a large OEM, they assisted with the WA & NZ, all to be domestically as well as built and commissioned a superior design for in house. Still in asked LaserBond to steel mill rolls which expansion of capacity delivered in FY22 completely in SA with the in large and lucrative operation in the NSW LaserBond Designed and manufacture many of construction and facility commenced manufactured their products. commissioning of an offshore markets. manufacturing proprietary rotary efficient LaserBond® feeders - first sales cladding cell. to US & VIC in July Developed E-Clad, 2021 MicroClad and NanoClad technology. A LaserBond® cladding cell built for our Victorian * All years are calendar years operations to be functional by October 2021

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15

R&D INVESTMENT

				R&D Investment	R&D Investment
LaserBond remains committed to developing		FY21				$678,882
innovative products and technologies that anticipate market		FY20				$675,774
direction and demand,
as well as building collaborative		FY19			$552,826
relationships with
tertiary institutions to leverage its R&D		FY18			$470,091
investment and achieve
third-party validation of its work.		FY17			$447,849

• LaserBond identifies opportunities for products and technologies in the natural course of business, as customers request custom-designed solutions to wear life problems

• In addition to expenditure and internal research efforts, LaserBond has collaborative relationships with several Australian universities, which offer independent analysis of the benefits of products and technologies under development. Work continues with the University of South Australia under the IMCRC and SEAM projects, as well as the Monash Institute of Rail Technology.

• A technology agreement was executed with Curtin University in WA for a LaserBond® cell in August 2021. Curtin will use the cell for research and training, providing LaserBond with third-party validation of its developments

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16

RESEARCH & DEVELOPMENT

LaserBond is poised to capture the upside of its long-term commitment to innovation and is in the process of commercialising a range of proprietary products and technologies for domestic and offshore markets.
	Proprietary Assets Description Developed Commercialised Target Markets
	E-CladTM	A cost effective alternative to hard chrome on cylindrical parts that avoids carcinogenic chemicals, providing superior performance & using <25% energy of traditional hard chrome plating processes	Several years of materials & process development.	2020 with first sale in October	Cylindrical components subject to wear and corrosion as a substitute for hard chrome– domestic and international
	MicroCladTM	Wear plates utilising LaserBond’s technology to incorporating fine tungsten carbide particles to provide superior wear resistance to conventional hard-faced plates in extreme wear applications	2020	Currently underway. Several applications successfully implemented	Chutes, liners, equipment buckets & trays, bulk materials handling etc – domestic & international
	NanoCladTM	Ultra-fine tungsten carbide particles (over 60x smaller than standard cladding processes) with higher % by weight on flat and irregular shaped surfaces providing extreme wear and fine particle erosion resistance	2020	Currently underway. Several applications successfully implemented with repeat export & domestic business	Anywhere subject to severe fine particle erosion and/or impact. Pump equipment, minerals processing, waste management etc
	Steel Mill Rolls	Designed/manufactured to achieve up to 20x longer life using a surface engineered carbide composite with outstanding resistance to frictional wear, heat, impact and pressure	2016 - 2017	Implemented in Australia. First exports to the US in 2018	Steel Mini Mills - domestic and international
	Rotary Feeders	Severe service rotary feeders (aka rotary valves) utilising LaserBond® technology on wearing surfaces for dramatically extended operation life.	Reclamation of worn feeders for many years. Developed new feeders in 20/21	First sales of new LaserBond® feeders in domestic & US markets in Aug 21	Pneumatic conveyance of mulch, soil, sand and aggregate, bulk materials handling - domestic and US
	CrushalloyTM	A specially developed material with a metallurgical (welded) bond, combining ductility to resist high impact loads with corrosion and extreme wear resistance	2018	2019 with growing applications	Any components subject to a combination of high impact loads with corrosion and wear. Quarry, crushing, drilling equipment etc

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17

COMPETITIVE PROFILE

Revenue Stack (%)

Approximately 80% of the business’s revenue has little direct competition, with LaserBond able to draw on decades of research and development to protect and grow its market share with state-of-the-art products and technologies.

83.4

14.3

2.3

Laser cladding – is gaining more widespread acceptance leading to some increasing competition from relatively inexperienced players. LaserBond’s years of R&D investment, resulting in numerous proprietary assets, positions it ahead of the newer service providers

The upside for LaserBond® cladding is the opportunity to re-educate the market on the cost efficiencies of laser cladding worn parts to achieve better-than-new quality rather than replacing worn parts with new, less-durable and less costeffective components. Growing markets globally.

Thermal Spray – a higher level of competition as thermal spray becomes a more widely accepted surface engineering practice. Currently only 14.3% of LaserBond revenue

General engineering (no surface engineering) – there are many small engineering workshops with low overheads. Only a tiny amount of LaserBond work in this space is exposed to this competition, equating to 2.3% of revenue

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18

SAFETY AND THE ENVIRONMENT

Over three decades of operation, LaserBond has never had a serious workplace injury despite servicing some of the industries most exposed to health and safety risk. Equally, its technologies and products enhance their customers’ ability to respect the environment and comply with laws.

The Environment

Safety

Technology

• Technology Operations

• • Rolling 12 month LTIFR has fallen • LaserBond’s R&D program aims to • ISO 14001 certification promotes over FY21 despite an almost 50% minimise the environmental sound environmental practices increase in workforce size, impact of its own operations and and employee training in the including acquiring the new its customers’ operations areas of waste disposal, Victorian operations in early FY21 • By increasing wear life, hazardous substances and energy

• • Use PAS 99 to manage accredited components become more cost usage quality, environmental and safety efficient, but also more efficient • LaserBond benefits from its own programs overall. There is reduced the technology and process • ISO 9001 need for additional manufacturing developments in the form of and scrapping of worn lower emissions and waste in

• • ISO 14001 components, with the associated providing its services to • ISO 45001 energy usage and waste. customers •

• • For example, E-Clad is more Zero fatalities or serious injuries environmentally friendly, using a

• since inception of the business in 1992 faster process that is more durable and uses less than ¼ of the energy used in traditional hard chroming

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19

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Business Overview & Financial Operational Strategy &
Appendices
Performance Summary Performance Performance Prospects
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STRATEGY FOR GROWTH

Current forecasts indicate a total revenue figure very close to the long held $40 million revenue target, however, a portion of that revenue relies upon the timely acquisition of a bolt-on business that can begin to contribute revenue by early 2H22 at the latest.

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 Continued assessment of  Installation of new LaserBond®
potential acquisition targets to cladding cell in Melbourne operations
expand footprint to service Victorian and Tasmanian
 Aggressive marketing plan for products markets
and capabilities through a broader range  Development of updated sales and
of industry sectors in new markets marketing tools, such as case studies and
 Working with Austrade to achieve global pricing scenarios for new and existing
market proliferation of specific Geographic Capacity & markets
products, services and technologies Expansion Capability  Development of a national internal
where market size and appetite Push existing and Invest in people and apprentice training program,
is attractive – Nth America, Asia new products into equipment to improve supporting both trade needs and
and Europe new markets $40M margins and build LaserBond’s specialised processes
productivity
Revenue in
Product FY22 Technology
 Planned formal launches for Micro- Development Licensing
Clad, Nano-Clad, E-Clad, steel mill rolls, Innovate, build R&D Build a suite of  Licensing agreements achieved for
rotary feeders and release coatings capability and stay technologies for sale North American and NZ Customers,
throughout FY22 ahead of the under licensing commencing with equipment
 Progress several R&D opportunities market agreements installation in FY22.
through all stages to production trials  Domestic technology sale to university
 rotary feeder en route to US for trialling sector, deliverable in FY22
 Develop and grow export product sales  Seek out further licensing agreements
in Asia and Europe with the help of
with the assistance of existing
Austrade
customers, agents and Austrade
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21

THE FUTURE

While global economic uncertainty continues as a result of the pandemic, LaserBond is confident that it has a suite of highly desirable products and technologies and a growth strategy in place to optimise the returns from those proprietary assets.

Internal Environment

External Environment

• While the make-up of revenue has changed as a result of the pandemic (higher demand for products than services), we expect the Services Division to be able to compensate for lost ground in the current financial year

• With the rollout of vaccinations around the world and the relaxation of Covid-related restrictions, we are confident of delivering growth in the Technology & Products Divisions

 The extent of growth in the Services Domestic Division is somewhat dependent on and offshore achievement of minimum vaccination levels and relaxation of Australian state growth border restrictions

• Acquired the Victorian operations and will continue to assess further opportunities to expand the national footprint

• Risks associated with skills shortages and the delays in recruiting under skilled migrant visas are being proactively managed

• Increased revenue to flow through from the newly expanded sales and marketing team

• Sustainability and growth is enhanced because LaserBond assists its customers to improve the productivity and longevity of their equipment whilst reducing their carbon footprint

• Will continue to focus on commercialising a number of product and technology opportunities

• Aim to build recurring revenue with at least two technology licence agreements each year

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22

INVESTMENT RATIONALE

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||||||||
|---|---|---|---|---|---|---|
|Strong Demand in|
|Solid Business|Culture of|
|1.|2.|3.|Local and Offshore|
|LaserBond’s business|Foundations|Innovation|
|Markets|
|model is founded on|
|innovating to meet||Year on year growth on all||Business model founded on||Accessing sizeable global|
|specific customer|metrics until Covid – resilient|innovating to meet specific|markets for technology|
|performance throughout|customer requirements|licensing to give long-term|
|requirements which|2H20 and FY21 despite|which are then developed for|revenue streams|
|are then developed for|significant hindrance of|boarder application||Sizeable market in North|
|broader application.|pandemic restrictions||Existing suite of proprietary|America and Asia for steel|
||Strong balance sheet and|technology that is proven to|mill rolls and rotary feeders|
|The current product|positive cash flows, which|be more cost-efficient than||Covid has curbed offshore|
|and technology suite|have also avoided the need|other technologies|growth roll-out, but ways are|
|has enormous|to raise additional capital for||Strong R&D relationships|being sought to penetrate|
|many years|
|with tertiary institutions for|lucrative foreign markets|
|potential in large and||Blue chip client base with|independent verification of|with specific high-demand|
|valuable offshore|high level of repeat business|products and technologies|products and technologies|
||Provider to essential services||Highly engaged workforce|
|markets.|
|industries - mitigates impact|with deep specialist|
|of Covid|knowledge|

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23

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Business Overview & Financial Operational Strategy & Appendices Performance Summary Performance Performance Prospects

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LASERBOND SNAPSHOT

LBL SHARE PRICE MOVEMENT

ASX 200 MOVEMENT

COMPANY INFORMATION

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$1.20
$1.00
$0.80
$0.60
$0.40
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8,000
7,000
6,000
5,000
4,000
Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21
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	Incorporation	30/09/1992
	IPO	17/12/2007
	Offices/sites	Sydney, Melbourne, Adelaide
	No of staff	111

DIRECTORS AND EXECUTIVES

**MARKET INFORMATION ***

SHARE REGISTER COMPOSITION

	Shares on Issue	96,055,413
	Options on Issue	0
	Market Cap	$75.88M
	52-Wk High	$1.065
	52-Wk Low	$0.510
	AV Volume	96,999

Mr Philip Suriano	Non Executive Chairman
Mr Wayne Hooper	CEO & Executive Director
Mr Matthew Twist	CFO & Executive Director
TBC	Non Executive Director

• Information current as at close of business on 13/09/21

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Directors 12.5%
Director Related
Parties 23.5%
Employees 0.8%
Substantial
S'holders 5.1%
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Other
58.1%
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25

FIVE-YEAR EARNINGS

A$000	2017 2018 2019 2020 2021
Sales Revenue	13,751.4 15,648.1 22,667.2 22,177.3 24,664.5
Gross profit	7,186.0 6,962.1 10,742.7 11,522.8 12,588.0
Operating Expenses	(4,730.1) (4,731.6) (5,845.1) 5,335.3) (6,204.3)
EDITDA	2,455.9 2,230.4 4,897.6 6,187.5 6,373.7
D&A	(867.4) (717.5) (886.1) (1,981.6) (2,554.8)
EBIT	1,588.5 1,512.9 4,011.6 4,205.9 3,828.6
Interest	(77.8) (110.8) (176.7) (440.9) (464.0)
NPBT	1,510.7 1,402.2 3,834.9 3,765.0 3,364.9
NPAT	1,112.9 967.7 2,809.4 2,805.1 2,838.1
Dividend	0.40 cents 0.50 cents 0.90 cents 1.00 cents 1.20 cents
EPS	1.221 cents 1.040 cents 2.972 cents 2.940 cents 2.955 cents

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FIVE-YEAR BALANCE SHEET/CASH FLOW

A$000	2017 2018 2019 2020 2021
Cash & Equivalents	2,011.6 1,379.1 2,192.5 3,997.7 4,907.9
Current assets	7,851.0 9,229.1 10,135.7 11,843.7 14,929.1
Non-current assets	2,776.6 3,398.0 6,265.5 11,759.7 14,601.8
Total assets	10,627.6 12,627.0 16,401.2 23,603.4 29,530.9
Current liabilities	2,544.2 3,327.7 4,064.3 4,586.8 6,141.2
Non-current liabilities	1,038.2 1,524.3 2,276.7 6,780.4 9,128.0
Total liabilities	3,582.4 4,852.0 6,341.0 11,367.2 15,269.2
Net assets	7,045.2 7,775.0 10,060.2 12,236.2 14,261.7
Cash from operations	1,975.4 386.8 4,081.0 4,260.0 4,756.9
Cash from investing	(128.0) (298.6) (3,455.4) (594.0) (1,265.5)
Cash from financing	(603.8) (720.8) 187.9 (1,860.8) 2,581.2
Net cash flow	1,243.6 (632.6) 813.5 1,805.1 910.2

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Case Study 1 POWERED ROOF SUPPORT CYLINDERS

LaserBond has become the OEM’s repairer of choice, delivering a superior component back into service with extended operating life and lower total costs:

• Extended life cycle compared to original OEM part so reduced future production losses

• Lead time for repair is shorter than replacement, allowing rapid return to production

• Cost of repair is much lower than replacement

Problem

PRS Cylinders are large diameter, three stage, telescopic, hydraulic cylinders used on Longwall Roof Supports in underground coal mines. PRS Cylinders operate in extremely adverse mining conditions, and are difficult and expensive to access for repairs or removal, being hundreds of metres underground. The porous nickel chrome coating is prone to blistering, cutting seals with resulting pressure loss.

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Solution

Utilising the in house R&D capabilities and relying on 20 years of industry experience, LaserBond chose an alloy to give superior corrosion resistance. The highly corrosion resistant alloy was LaserBond® Clad to the inner and outer stages of the PRS, damaged static seal areas (under the gland nuts) and PRS bores that have metal galling and/or corrosion pitting.

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Case Study 2 FINAL DRIVE UNIT – MINING EXCAVATOR

The Hitachi EX1900 excavator, with the enhanced, repaired Final Drive Unit was seamlessly placed back into operation with forecast operational life improvement:

• Operating cost savings – repair performed at much lower cost than replacement

• Less time out of service - repair carried out in much less time than the purchase lead time

• A reduced carbon footprintreusing rather than scrapping the component

Solution

Problem

LaserBond’s solution was to LaserBond® clad an alloy selected to give superior corrosion resistance combined with optimal strength and hardness. LaserBond removed the splines for remanufacture and then the Splines were fully rebuilt with the selected alloy. The fully clad area then had new Splines re-cut to exacting OEM measurements. This process was replicated for both the Hub and Spindle splines.

The customer, a major mining contractor, was faced with replacing a final drive unit in a Hitachi EX1900 due to corrosion. Internal condensation had caused serious corrosion on the splines, rendering the Final Drive Unit (Hub and Spindle) unserviceable. LaserBond were approached by a to provide a corrosion resistant repair solution to exceed OEM operating standards.

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Further Information:

Matthew Twist Chief Financial Officer and Company Secretary (02) 4631 4500 matthewt@laserbond.com.au www.laserbond.com.au

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