Slides
Page 1
Increasing the performance and wear life of capital-intensive machinery components. 1H FY26 Results Presentation 20 February 2026 LASERBOND (ASX:LBL) For personal use only
Page 2
Business Overview For personal use only
Page 3
3 © LaserBond Ltd – CONFIDENTIAL 33 Perth Darwin Brisbane Sydney Canberra Melbourne Hobart Adelaide Business Segments Services Provides a range of surface engineering techniques for reclamation and re-engineering of high wear metal components. Products Manufactures and sells an exclusive range of surface engineering products, embedded with LaserBond’s patented technologies, extending wear life. Technology Offers LaserBond® cladding technology for customer use under long-tail licensing agreements that cover equipment supply, technology usage, and the supply of associated consumables. R&D Conducts ongoing research into advanced materials, surface engineering processes, and application techniques to drive innovation and maintain a competitive edge. • Mining • Manufacturing • Agriculture • Mineral Processing • Power Generation • Transport & Marine • Plant & Machinery • Fluid Handling LaserBond Facilities Gateway - Perth (40% owned) Provides refurbished components, including hydraulics, powertrain parts, and attachments. LASERBOND SNAPSHOT © LaserBond Ltd – CONFIDENTIAL Key IndustriesFor personal use only
Page 4
4 © LaserBond Ltd – CONFIDENTIAL 44 Strong Financial Performance Revenue $23.0m (+13.4% pcp), NPAT $2.2m (+117% pcp). Products Division Momentum Revenue growth of 34.2%, sustained performance from 2H FY25. Services Margin Expansion Gross margin improved to 58.3% from 50.8% through operational efficiency. T echnology Commercialisation High repeat rate with long-term customer retention once established. Supply Chain Security Proactive Tungsten Carbide inventory build ensured uninterrupted operations. Well-Positioned for 2H Order book ~70% higher than 12 months ago (at 1 Jan 26); 2H historically stronger. 1H FY26 OVERVIEW © LaserBond Ltd – CONFIDENTIAL 4 For personal use only
Page 5
Half-Year Results For personal use only
Page 6
6 © LaserBond Ltd – CONFIDENTIAL 66 ¹ Revenue does not include revenue from the 40% stake in Gateway Group, acquired in 1H24, given that the two sets of accounts are not consolidated, and thus revenue is not shown. Revenue¹ $23.0m +13.4% vs pcp EBITDA $5.2m +57.6% vs pcp NPBT $3.3m +153.8% vs pcp NPAT $2.2m +117% vs pcp EPS 1.88cps +116.1% vs pcp DPS 0.8c Fully franked Cash $4.0m $5.6m in FY25 Gross Profit $12.4m +22.4% vs pcp 1H FY26 FINANCIAL HIGHLIGHTSFor personal use only
Page 7
7 © LaserBond Ltd – CONFIDENTIAL 77 Revenue of $23.0m represents 13.4% growth on pcp, maintaining the strong momentum established in 2H FY25 despite seasonal headwinds. NPBT of $3.3m grew 154% on pcp but below 2H FY25 of $3.7m, due to December seasonal factors, planned equipment replacement downtime, and ongoing strategic R&D investment. Gross profit of $12.4m delivered a healthy margin of 53.7%. NPAT of $2.2m up 117% vs pcp and down vs 2H FY25 comparison of $2.8m with historical pattern of stronger second-half performance expected to continue. 1H FY26 FINANCIAL RESULTSFor personal use only
Page 8
8 © LaserBond Ltd – CONFIDENTIAL 88 Balance sheet remains strong, with low gearing, a growing equity base to support LBL’s domestic and international growth and investment strategy. Total net assets up 3.7% on pcp, driven by a strong asset base, improved collections and strong performance from the Gateway investment. Total liabilities decreased by 16%, primarily due to reducing financial liabilities, reduced creditor balances. Working capital strengthened by 7.3% to $16.2m, driven by improvements in solvency ratios and DSO improvements. Cash position of $4.0m (down from $5.6m at June 30) reflects strategic inventory investment of $1.8m in Tungsten Carbide to secure supply, with operating cash flow of $1.5m remaining solid. $m 1H FY26 FY25 Cash & Equivalents 4.0 5.6 Currentassets 24.2 24.5 Non-currentassets 38.7 38.3 Totalassets 62.9 62.8 Currentliabilities 7.9 9.4 Non-currentliabilities 12.4 12.4 Totalliabilities 20.3 21.8 Net assets 42.6 41.0 Cash flow from operations 1.5 5.1 Cash flow from investing (1.0) (1.0) Cash flow from financing (2.1) (4.3) Net cash flow (1.6) (0.1) BALANCE SHEET SUMMARY For personal use only
Page 9
Operational Highlights For personal use only
Page 10
10 © LaserBond Ltd – CONFIDENTIAL 1010 1H FY26 performance Revenue: +10.0% pcp to $14.3m. Gross profit margins expanded to 58.3%, up from 50.8% in 1H FY25, reflecting cost controls, better utilisation of machinery and equipment across the LaserBond network, and effective resource deployment. Performance impacted by weakness in the mining sector. Outlook Well-positioned for recovery in mining sector capital expenditure. Equipment replacement cycles normalising. Improved efficiency from machinery upgrades. Note: The Products and Services division share resources. General overhead costs are proportioned between segments after direct costs are allocated to the segments. 11.2 12.2 13.1 14.6 14.3 1H24 2H24 1H25 2H25 1H26 Services Revenue ($m) 55.7% 53.6% 50.8% 53.6% 58.3% 1H24 2H24 1H24 2H25 1H26 Services Gross Profit Margins SERVICES SEGMENTFor personal use only
Page 11
11 © LaserBond Ltd – CONFIDENTIAL 1111 1H FY26 performance Segment revenue growth of 34% to $8.4m vs pcp – maintaining momentum from 2H FY25. Gross profit margin (47.1%) impacted by tungsten price volatility – driven by geopolitical challenges affecting supply of critical minerals. Outlook Expanding customer relationships. New components designed for the oil and gas sector gaining traction. Significant international growth opportunities. Strong orders from major customers, with export markets representing a significant component of revenue. Note: The Products and Services division share resources. General overhead costs are proportioned between segments after direct costs are allocated to the segments. 8.7 7.9 6.3 8.4 8.4 1H24 2H24 1H25 2H25 1H26 Products Revenue ($m) 47.8% 50.9% 48.6% 51.1% 47.1% 1H24 2H24 1H25 1H25 1H26 Products Gross Profit Margins PRODUCTS SEGMENTFor personal use only
Page 12
12 © LaserBond Ltd – CONFIDENTIAL 1212 1H FY26 performance Licensing deal valued at $2.4 million secured with Komatsu for earthmoving and mining equipment manufacturing. Outlook Delivered first modular LaserBond® laser-cladding cell, on arm’s length commercial terms, to the Gateway Group, with laser cladding revenue generated from June 2025. Sale to Gateway Group – Accounting Treatment • In December 2024, LBL sold a LaserBond® cladding system to Gateway Group at normal market prices. • LaserBond owns 40% of Gateway Group, so accounting rules require adjusting the financial statements to reflect this relationship. • Under these rules, 40% of the revenue and cost of sales from this transaction are removed (since it’s essentially a sale within a partly owned business). • The impact of this adjustment is temporary. LaserBond will recover the full financial benefit over time as Gateway Group uses the asset. Licensing agreement with Komatsu remains on track for delivery in the second half of FY26. Komatsu deal the foundation for additional opportunities and demonstrates commercial value of IP . Additional OEM deals in advanced stages of negotiation. TECHNOLOGY SEGMENT 12 For personal use only
Page 13
13 © LaserBond Ltd – CONFIDENTIAL 1313 Increased investment in innovation to maintain competitive advantage and address supply chain challenges. Tungsten carbide alternatives Developing new formulations to reduce dependency on constrained supply from Chinese export controls. New market opportunities Advancing major projects in wind turbine and agricultural applications that will support future revenue growth. Materials and process innovation Investing in new materials and processes that support the Products division's expansion into other sectors. RESEARCH & DEVELOPMENT Collaborative R&D relationships supporting the development and validation of technologies, materials and solutions, include: Future Industries Institute (UniSA) Institute of Rail Technology (Monash Uni) The Australian Nuclear Science and Technology Organisation (ANSTO) Surface Engineering of Advanced Materials (SEAM) through the Australian Research Centre Swinburne Uni, University of NSW & Curtin University 13 For personal use only
Page 14
14 © LaserBond Ltd – CONFIDENTIAL 14 X-CLAD – NEXT GENERATION SURFACE CLADDING TECHNOLOGY Announced in late 2025, X-Clad is a premium Laser Clad surface engineered with fine Tungsten Carbide (WC) – up to 70% by weight, delivering hardness up to 1000 HV. Designed for the most demanding environments, X-Clad provides exceptional abrasion, wear, and corrosion resistance, especially in rotational wear applications. Multiple field customer trials have begun including one of LaserBond’s largest global customers. LaserBond's internal and 3rd party testing is modelling better wear outcomes than the current coating they have used from LaserBond for 10+ years. A large German manufacturer is preparing to begin trials in March-April. The X-Clad will trial in zinc baths, side by side with LaserBond’s heavy duty CrushAlloy coating. This is a highly aggressive coating environment. © LaserBond Ltd – CONFIDENTIAL On track for full market release in late FY26. 14 For personal use only
Page 15
15 © LaserBond Ltd – CONFIDENTIAL 1515 1H FY26 performance Strong revenue growth of 24% to $24.7m vs pcp, with LaserBond's equity- accounted profit contribution of $373k. Improved machining capabilities successfully attracting new mining customers, broadening customer base beyond traditional segments as planned. Outlook Laser cladding technology creating pathway to diversify revenue base beyond mining into additional industrial sectors. Improved market conditions with strong gold prices driving increased maintenance spending and lithium price recovery supporting higher customer investment. Successful transition to larger facility (operational July) with team building revenue through expanded capacity. Integration with LaserBond® continues to be well received by major customers and OEMs seeking national coverage, supporting cross-selling opportunities. Expanded workshop capacity positions Gateway for future volume growth as mining sector activity continues to recover. Ownership, Rights & Options LBL gained 40% ownership of Gateway in March 2024 Right to 51% ownership in March 2027, at the same multiple of 4.5 times EBITDA as the original purchase consideration. Original Gateway shareholders have an option to sell their shares to LBL at any time and any volume at the same 4.5 times EBITDA multiple. GATEWAY – WELL -POSITIONED FOLLOWING STRATEGIC INVESTMENT For personal use only
Page 16
Strategy & Outlook For personal use only
Page 17
17 © LaserBond Ltd – CONFIDENTIAL 1717 Operational excellence • Tungsten Carbide inventory secured • Diversified supplier base • R&D delivering material alternatives • Skilled migration in critical roles • Expanded apprentice pipeline • Stable production capacity maintained • Export success in Products division • Technology licensing opportunities • International market expansion • Productivity enhancements driving Services margin expansion • Equipment upgrades eliminating downtime • Cost efficiency initiatives Supply chain security Workforce development International growth STRATEGIC PRIORITIES © LaserBond Ltd – CONFIDENTIAL 17 For personal use only
Page 18
18 © LaserBond Ltd – CONFIDENTIAL 1818 2H FY26 growth drivers Initiatives currently being implemented to contribute to margins → Margin expansion Machinery replacement eliminates downtime experienced in 1H FY26 → Higher productivity Oil & gas components, international markets, and innovation pipeline → Growth optionality Komatsu licensing demonstrates ability to generate licensing revenue → New revenue stream Improved Tungsten Carbide supply → Support growth plans Healthy pipeline extending well into 2026 provides revenue visibility → Revenue certainty For personal use only
Page 19
Appendices For personal use only
Page 20
20 © LaserBond Ltd – CONFIDENTIAL 2020 Performance Summary 1.6 1.8 1.5 0.9 1.9 2.0 2.5 1.6 2.4 FY22 FY23 FY24 FY25 FY26 Earnings Per Share Cents 0.6 0.8 0.8 0.4 0.8 0.8 0.8 0.8 0.8 FY22 FY23 FY24 FY25 FY26 Dividends for Period Cents 13.4 18.7 20.3 21.0 23.0 17.3 20.0 21.7 23.2 FY22 FY23 FY24 FY25 FY26 Sales Revenue $M EBITDA $M 1.9 2.7 2.2 1.3 3.3 3.5 3.6 3.1 3.7 FY22 FY23 FY24 FY25 FY26 NPBT $M 5.7 8.9 5.8 5.6 4.0 FY22 FY23 FY24 FY25 1H FY26 Cash on Hand $M 12.3 16.5 13.4 15.1 16.1 FY22 FY23 FY24 FY25 1H FY26 Working Capital $M 2.6 4.0 3.5 0.9 1.5 1.7 3.8 3.2 4.2 FY22 FY23 FY24 FY25 FY26 Cashflows from Operations $M 1H2H For personal use only
Page 21
21 © LaserBond Ltd – CONFIDENTIAL 2121 Five-Y ear Earnings A$000 FY22 FY23 FY24 FY25 1H FY26 Sales Revenue 30,711.1 38,612.4 41,983.6 43,475.6 23,008,9 Gross profit 16,701.2 20,463.0 21,642.0 22,786.9 12,350.3 OperatingExpenses (8,024.8) (10,266.1) (12,192.1) (13,778.3) (7,161.9) EBITDA 8,676.4 10,196.9 9,449.7 9,008.6 5,188.4 D&A (2,902.2) (3,267.6) (3,494.7) (3,196.4) (1,520.7) EBIT 5,774.2 6,929.3 5,985.8 5,812.2 3,667.7 Interest (442.8) (562.2) (790.2) (824.7) (394.5) NPBT 5,331.4 6,367.1 5,164.8 4,987.4 3,273.2 NPAT 3,628.8 4,758.5 3,482.3 3,844.8 2,215.9 Dividends for Period 1.40 cents 1.60 cents 1.60 cents 1.20 cents 0.80 cents EPS 3.53 cents 4.34 cents 3.10cents 3.28cents 1.88cents For personal use only
Page 22
22 © LaserBond Ltd – CONFIDENTIAL 2222 Five Y ear Balance Sheet / Cash Flows A$000 FY22 FY23 FY24 FY25 1H FY26 Cash & Equivalents 5,683.8 8,929.2 5,759.1 5.634.8 3.999.7 Current assets 22,367.7 25,715.3 22,237.0 24,546.5 24,173.3 Non-current assets 23,455.8 26,117.2 38,589.8 38,331.0 38,733.2 T otalassets 45,823.5 51,832.5 60,826.8 62,877.5 62,906.5 Current liabilities 8,664.7 9,263.8 8,852.6 9,432.9 7,942.3 Non-current liabilities 8,220.3 11,498.1 13,727.1 12,367.0 12,377.0 T otalliabilities 16,885.0 20,761.9 22,579.7 21,799.9 20,319.3 Net assets 28,938.5 31,070.6 38,247.1 41,077.6 42,587.2 Cash flow from operations 4,243.8 7,704.3 6,705.1 5,124.6 1,503.8 Cash flow from investing (10,861.3) (1,327.4) (5,782.8) (991.8) (1,027.2) Cash flow from financing 7,373.6 (3,131.5) (4,092.3) (4,257.1) (2,111.7) Net cash flow 776.0 3,245.4 (3,170.1) (124.3) (1,635.1) For personal use only
Page 23
23 © LaserBond Ltd – CONFIDENTIAL 2323 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. For personal use only
Page 24
Further Information Peter Arambatzis Chief Financial Officer +61 2 4631 4500 Email: petera@laserbond.com.au Ben Larsen Investor and Media Relations +61 439 789 842 Email: benl@nwrcommunications.com.au www.laserbond.com.au www.laserbond.com.au For personal use only