Announcement PDF Manufacturing innovation made reality FY23 Results Presentation 1 September 2023 Herbert Koeck CEO Jon Nield CFO Disclaimer This presentation has been prepared by Titomic Limited ACN 602 793 644 (“Titomic” or the “Company”) to provide summary information about Titomic and their activities as at the date of this presentation. The information in this presentation is of a general nature and does not purport to be complete and may change without notice. This presentation is not a recommendation to buy Titomic shares and undue reliance should not be placed on the information or opinions contained in this presentation for investment purposes as it does not consider your investment objectives, financial position or needs. These factors should be considered, with professional advice, when deciding if an investment is appropriate. 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The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. 2 Agenda 1. Progress on Strategic Initiatives 2. FY23 Highlights 3. FY23 Financial Results 4. Operational Update 5. Company Outlook 3 Progress Made in Strategic Core Commercialisation Initiatives 1 Grow customer revenue 2 Reduce costs and dependency on tax incentives and optimize grants 3 Educate the market on cold spray technology 4 Scale all revenue-generating activities across all active regions 4 Progress Made on Strategic Initiatives… 1 Strategic Initiatives 1 & 2 Grow customer revenue 1 2 Reduce costs and dependency on tax incentives and optimize grants Revenues with Customers FY20 $’000 FY21 $’000 FY22 $’000 FY23 $’000 145 515 3,381* 2,619** Tax incentives received 1,668 1,196 1,140 786 Grant funds received 116 235 779 1021 Employee & Director compensation 5,929 6,254 6,918 6,623*** • *FY22 customer receipts was skewed by the AUD 2.2 million TKF 1000 sale to TWI, UK. • **FY23 Customer receipts remained strong in FY23. The sale of a Custom TKF System to Sabanci University (AUD 2.4 million) was announced in August, FY24. • Titomic continues to minimize reliance on government grants and R&D tax incentives, moving away from R&D and toward customer ordered and paid projects. • ***Titomic recorded reduced employee and director costs, despite the Company’s restructure being completed in May 2023, which incurred redundancy expenses, and was reflected in only two months of the financial year. 5 Progress Made on Strategic Initiatives Strategic Initiatives 3 & 4 3 Educate the market on cold spray technology 4 Scale all revenue-generating activities across all active regions Marketing expenditure Web traffic +33% 1 FY20 $’000 FY21 $’000 FY22 $’000 FY23 $’000 738 147 290 492 New visitors +31% Unweighted sales pipeline +101% Page views +33% FY20 $’000 FY21 $’000 FY22 $’000 FY23 $’000 Australia -- 198 202 1,098 Europe -- 220 3,148 1,152 USA -- 97 32 369 Reseller Growth FY20 FY21 FY22 FY23 Number of Resellers 0 1 5 10 Regional Sales • Titomic is now creating a higher volume of parts for clients. • Enable the cold spray market by providing cold spray systems to higher education organisations such as Perron038, Neue Materialien Bayreuth, and Rey Juan Carlos Universidad. • All regions are showing considerable growth. • Focusing on more cost-effective marketing methods such as webinars, targeted marketing, and 1:1 engagement, targeting specific applications. 6 FY23 Highlights – A challenging and successful year Financials • Total revenue of AUD 4.5m despite Neos shortfall, Repkon delay, and delay of sale to Sabanci University Capital Raises • • Raised AUD 5.1m before costs through institutional placement and significant investment by Repkon of AUD 2.2m (December 2022) Fully underwritten AUD 6.5m before cost capital raise from new and existing investors via Placement and Retail Entitlement Offer (July 2023) Diversified product line & sales (FY23) • • • • • • Sale of Integrated Spray Booth to Perron038 Sale and successful certification and installation of first automated glass mould coating system at Vetropack, Austria 22 D523/623 system sales – a 3x increase from FY22 D623 medium-pressure cold spray system developed with two sold, and growing demand, particularly within the USA More than 125 Titomic cold spray systems currently in installed base, mainly in Europe Finalised installation of TKF 1000 at TWI, UK Successful Company restructure & cost management • • Successful restructure resulting in an optimal company size, enabling Titomic to significantly reduce costs. Strategic personnel hires within Titomic Europe to accelerate commercial projects Defence projects • • • Purchase order from Boeing Company of AUD 132,174 for continuation of pre-flight qualifications Additional manufacturing purchase order from Triton of AUD 260,000 Sale of a D523 system to the French Navy for marine maintenance (since year end) Execution of Joint Ventures • • Joint ventures with Repkon legally established and capitalised Joint venture with Neos International exited with no financial losses Expanded distribution • Reseller partner network growing globally, with 11 resellers across EMEA, APAC, and USA. Technology leadership • • • Positioned as the global player in cold spray technology Widest range of products and solutions in the industry Established, global supply chain of metal powder feedstocks Focused commercial applications • Heightened and further narrowed focus within strategic target applications across additive manufacturing, repairs and coatings. 7 FY23 Financial Results Profit & Loss Earnings Summary FY23 $’000 FY22 $’000 Revenue 4,450 5,321 Less Expenses (18,830) (22,293) Profit (loss) before Income Tax (14,380) (16,972) - - (14,380) (16,972) Less Tax Net profit (loss) After Tax 9 Cash flow and balance sheet Statement of Cash Flows FY23 $‘000 FY22 $‘000 Net cash used in operating activities (7,702) (10,161) Net cash used in investing activities (2,785) (1,962) Net cash from financing activities 4,850 11,324 Net decrease in cash and cash equivalents (5,637) (799) Statement of Financial Position FY23 $‘000 FY22 $‘000 Cash and cash equivalents 1,471 7,108 Total current assets 5,774 10,847 Total non-current assets 1,482 3,971 Total assets 7,256 14,818 Total current liabilities 4,708 4,739 Total non-current liabilities 2,310 2,667 Total liabilities 7,018 7,406 Total equity 238 7,413 10 FY23 Operational Update Radiation Shielding Corrosion Protection Additive Manufacturing Wear Resistance Metal Restoration Tooling Structures Ballistic Protection Armaments Further narrowed commercial focus Coating & Repair 12 Scaling all revenue-generating activities across all active regions Global production, supply and service network to meet our customer’s needs with 11 resellers across USA, Titomic Europe Titomic-Repkon & Reseller Pursuing Joint Ventures (Tooling) Titomic Resellers - Asia Titomic USA Titomic Resellers - USA Titomic Head Office and Manufacturing & Innovation Centre Titomic Resellers - Europe 13 Defined product and solutions portfolio to target customers TKF Custom TKF 1000 ISB Series D523 & D623 • High pressure Cold Spray additive manufacturing and coating • High pressure Cold Spray additive manufacturing and coating • Low pressure Cold Spray coating • Low and Medium pressure Cold Spray coating • Demonstration of Titomic’s ability to engineer and construct bespoke AM systems Build volume of 40.5m3 • Designed for prototyping and low volume production tasks Build volume of 0.75m3 • • Robotic or linear coating system Automated loading and unloading of parts Utilises D523 core cold spray system • • Modular portable repair system Designed for robotic or manual repair and coatings Deployed in the Titomic Melbourne Production Bureau • 1st gen system operating at Titomic Melbourne Bureau 2nd gen system at TWI (UK) • Ideal for R&D deployment or as a base for customised automated coating systems • Deployable for in-field repairs • • • • • 14 Route to markets enabling growth in all regions Systems and consumables, with multiple routes to market. Routes to Market System sale to JV company Solution Offering Systems Consumables Broad range of machine solutions • TKF Series • ISB Series • D Series • DuraMold™ Systems Recurring revenue streams, with each system requiring: • Powders • Nozzles • Enhancement & replacement parts Joint Ventures Ongoing revenue stream of powders and consumables Ongoing dividend paid to Titomic from JV company profits Direct Sales Direct to customer sales of systems, consumables, and services. Resellers Enabling cost-effective regional coverage +2 Actively pursuing an additional 2 joint ventures 11 resellers globally and growing fast, enabling global, co-located , scalable distribution. 15 Proven track record of execution Performance to plan with progress across focus applications Category Application Additive Manufacturing Armaments Tooling Ballistic Protection Structures Embedded Sensors Coating and Repairs Wear Resistance Repairs & Corrosion Energy Prior to FY2022 FY2022 FY2024 JV Agreement with Repkon JV Registered System build Validate Technology FY2026 FY2027 JV Production Custom system design Identified JV partner JV Agreement with Neos Initial development tests Performance improvements Identify specific target applications MIL & NATO standards testing STANAG Lvl2 Pass Customer Articles Customer Prototypes Key customer engagement Key customer demonstrators Sale of TKF 1000 to TWI Titanium material testing and specifications Test with Industry Partner Refine design, in-field testing Develop TKF Systems Prototype Bytepipe FY2025 System install Custom system design Validate Technology Develop Glass Mould Coating System Installed at Vetropack Pre-flight testing System commissioned, production deployment Field trials Customer use cases, material selection & performance testing New material solutions (carbides) Acquire Dycomet Hire Neil Matthews D523 Production Scale-up Pursue sales with IPGR members Expand D523 distribution Strongly documented use cases Launch & promotion of D623 Develop Silver coating for busbars Develop copper spray for MWT solar panels Validate Materials Inductive & Conductive Coating Radiation Shielding FY2023 Validate solution efficacy Award of Space Grant Demo and test Rad. Shielding Pursuing commercial opportunities Commercial customers 1st parts delivered First parts launched 16 Trusted by a global, growing customer base 17 Titomic Remains Optimistic for FY24 3 Steps to Success 1. Reduced ongoing costs by 30% 2. Successful capital raise 3. Accelerate commercialisation through successful sales a) Pipeline at record size and expanding b) Reseller network growing rapidly c) Clearly defined and efficient marketing d) Defined product and solutions portfolio to target customers 18 Q&A Thank you for attending Titomic Limited, Ground Floor 365 Ferntree Gully Road, Mount Waverley, Victoria 3149, Australia PO Box 225, Mount Waverley, Victoria 3149, Australia Appendices Leadership with proven industry experience A combined 165 years of cold spray experience across the staff and board Board of Directors Leadership Team Humphrey Nolan Mira Ricardel Andreas Schwer Dag Stromme Richard Willson Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Herbert Koeck Jon Nield Chris Healy Neil Matthews Chief Financial Officer Legal Counsel Company Secretary Dominic Parsonson Managing Director Head of Sales & Marketing Senior Technical Fellow Klaas Rozema Bruce Colter Michael Rochford General Manager Titomic Europe General Manager Titomic USA General Manager - APAC Beau Lang Business Operations 21 Our cold spray process Robotic High-Pressure System for AM Our story Low to Medium Pressure System for Coating and Repair • Founded in 2014 to commercialise cold gas spraying metal particles to produce 3D structures • Now the only globally active, publicly listed cold spray solutions company • Our cutting-edge technology and systems are changing manufacturing for the better 22 Structures – Additive Manufacturing For lighter stronger titanium components Why? Done Next • Titanium is ideal for Cold Spray • Boeing JP9102 Satellite Program • Execute paid prototyping projects • Multiple markets • Titanium tanks and valve body • Armaments • Ballistic protection • Space prototyping orders received • Quotes to build manufacturing capacity • Plan and execute manufacturing capability (Joint Venture) • Execute paid prototyping projects with mining/oil & gas companies • Total addressable market >$47B Titanium Ring Partially machined (POs pending) Titanium Ring 1.4m diameter Seamless Titanium Tank Structures Exploiting Titomic’s technology and cost benefits for lightweight, rapidly manufactured components. 23 Coating & Repair Titomic extending asset life Why? Done Next • Huge market opportunity of $53b • Expansion of reseller network • Continue expansion of reseller • Wear resistance: $22b • 2 new in US • Repair & Corrosion $16b • 1 new in Europe • Energy: $14b • 1 new in Singapore • 1 new in Australia • D523 machine sales accelerating network to ensure geographic coverage and overcome distance and language barriers • Refine solution offering by executing projects with mining/oil & gas companies • 22 sold already, with 1 sold in FY24 • Next generation D623 machine with higher pressure (new use cases) developed, introduced and sold 2 units. Coating and Repair • Large and growing demand for D623 within United States. Targeting Mining, Oil & Gas, Transport and Marine Industries 24 Glass Mould Solution DuraMoldTM Why? Done Next • Glass Bottle manufacturing market • Solution development completed – • Investment conversations to size (>200 companies) • Very efficient solution developed in last 4 years with IPGR (Fevisa, Gallo, Vetropack) • Business opportunity >$25-35m in next 4 years 1st system sold and installed • Successful site acceptance testing by TÜV Austria. • Revenue recognised. support accelerated rollout for first 10-20 machines • Develop and build product enhancements for automatic mould loading/unloading • Develop and build product enhancements for automatic polishing and finishing. Glass Equipment Coatings Targeting glass manufacturing industries and enabling lower cost, safer, and more sustainable manufacturing. 25 Armaments & Tooling Titomic enabling high performance, rapid manufacturing. Armaments Why? Done Next • Armaments is large and growing • Multiple milestones achieved for • Machine orders to establish market of $16.9b • Cold spray allows refinement of existing production methods and creation of new products (e.g. Inconel barrels) Inconel barrels • Machine configuration for Repkon JV completed • Repkon invested again in December 2022 capital raise Repkon JV pending • Continue optimisation for existing flow forming/cold spray process • Expand to new form factors – larger barrels • Very large and successful manufacturer, Repkon believes in Titomic Tooling Barrels Targeting the global defence industry Tooling Targeting tooling for aerospace production Why? Done Next • Total addressable market for • Board and management assigned • Location for US JV pending (choice Invar36 tooling $700m • Joint Venture discussions with US • Cold spraying of tools with invar has attractive commercial benefits (cost, time to market, performance) company ongoing of multiple sites) • Expansion to India pending • Joint venture discussions with British tooling manufacturer ongoing. 26 Tooling Titomic enabling a simplified supply chain Why? Done Next • Total addressable market for • Machine configuration for Neos • Machine order for Neos Titomic JV Invar36 tooling $700m • Cold spraying of tools with invar has attractive commercial benefits (cost, time to market, performance) Titomic JV completed • Joint venture company founded and registered in UK • Board and management assigned pending • Location for US JV pending (choice of multiple sites) • Expansion to India pending • Joint Venture discussions with US company ongoing Tooling Targeting the Aerospace & Defence Industries Invar Face Plates Invar Repair Titanium Tooling 27