SDI LIMITED — AGM Information 2014

Nov 18, 2014

2014 AGM

Chairman’s Address

•Sales

+15.4%

•NPAT + 38% •ROE + 2.2% •Cash + $0.3m •Debt ($1.4m) •Dividends + $0.3m •Capex + $3.1m

• •Debt

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NPAT
NPAT($000)
YTD
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Jun Jun Jun Jun Jun
2010 2011 2012 2013 2014
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•Profit after Tax: +$1.8m

•Currency Movements:

• Sales: $6.6m

 Expenses: $1.9m

• Debtor’s / Creditor’s Revaluation:$0.4m (Unrealised Loss)

Operating Expenses: Net of currency movements: + 11.3% ($2.7m)

•Variable Selling & Marketing Expenses + 11.6% ($0.9m)

 Increased sales

 Changing market conditions  Investment into future sales

•Other Operating Expenses + 11.2% ($1.8m)

 Normal CPI

• Investment in future growth:

 Increased management – Local & Overseas  Additional sales representatives

Capex: + $3.1m •Upgrade of computer hardware & software: $0.7m •Production facility upgrade: $0.4m •Production Machinery: $2.0m

Intangibles: + $1.9m •Research & Development: + $1.5m •Trademarks & Licences: + $0.4m

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Total Debt
Total Debt
$m
14
12
10
8
6
4
2
0
2010 2011 2012 2013 2014
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Debt/Equity
Debt / Equity
35%
30%
25%
20%
15%
10%
5%
0%
2010 2011 2012 2013 2014
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DPS
DPS (Cents)
YTD
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
Jun Jun Jun Jun Jun
2010 2011 2012 2013 2014
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ROE

Thank You!!

• Innovative Australian manufacturer of dental restoratives

• Amalgams, composites, glass ionomers, small equipment, tooth whitening, accessories.

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Sales ($m)
70
60
50
40
30
20
10
0
2008 2009 2010 2011 2012 2013 2014
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Sales mix
9%
23%
Preventative
Restorative
Equipment
68%
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	Sales growth by region	Sales growth by region
	‐5% 0% 5% 10% 15% 20% 25%	Australia (AUD) North America (USD) Europe (EUR) Brazil (BRL)

• Australia, USA, Canada, Brazil, Germany, Austria, France, UK

• 112 other countries in all parts of the world

• Some areas have had excellent growth, some still need a lot of work

Worldwide distribution

VIC Export Award

• International Marketing Manager

• VP Sales and Marketing – USA

• Commercial Finance Managers – Germany, USA

• More experienced sales managers

• Highly experience European Sales Manager starting in January

• Highly experienced MEA Sales Manager starting in January

• Office upgrade

• Office/warehouse upgrade

• Sales increased by 21%

• Improved margins and competitive pricing

• Manufacturing licence in 2015

• Lower landed product cost

• Ship to other Latin countries more regularly and with less freight costs

Distribution from Brazil

• Innovation is key

• 13/14 Aura composite released

• 14/15 1-2 new products

• R+D is essential to SDI

• Focus on new restoratives

Aura

• New unique composite

• Simple way for dentists to shade match

• Makes difficult anterior composite restorations easier

Traditional composite

Aura

• Launched end March 2014 in Australia

• Overseas market rollout is ongoing

• Hired Senior Manufacturing Manager

• Brazilian packing will start in 2015

• Ongoing investment into automation

• Continue to move away from traditional restorative sales

• Aura composite going well

• North America and Europe back on track

• Questions?