Duratec Limited · ASX:DUR
Duratec — H1 FY2024 Earnings Presentation
30 slides from Duratec's earnings presentation, Feb 23, 2024
Slide 1: 1H FY24 Results Presentation
DURATEC LIMITED 1H FY24 RESULTS PRESENTATION 23 FEBRUARY 2024
Slide 2: Speakers
SPEAKERS EXECUTIVE TEAM MEMBERS CHRIS OATES OLLIE MCKEON ASHLEY MUIRHEAD Managing Director Executive Manager - Corporate, Chief Financial Officer Strategy & Investor Relations 2 Duratec Limited – 1H FY24 Results Presentation – 23 February 2024
Slide 3: 1H FY24 Highlights / What Next
1H FY 24 WHAT NEXT HIGHLIGHTS
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT NATIONAL LEADER WITH EXPERIENCED BOARD AND MANAGEMENT Share Price and Volume – 1H FY24 3,000,000 $1.80 Volume (M shares) 2,500,000 $1.60 2,000,000 $1.40 Close Price ($) 1,500,000 $1.20 1,000,000 $1.00 500,000 $0.80 0 $0.60 Volume Close Duratec Limited Board Capital Structure Marti
Slide 5: Business Overview
BUSINESS OVERVIEW WPF Duratec Pty LEADING AUSTRALIAN ENGINEERING, CONSTRUCTION Ltd (WPF) AND REMEDIATION CONTRACTOR (wholly owned subsidiary) – leading Energy remediation Specialist technical expertise in upgrading and extending the and fabrication company based in Western Australia life and use of
Slide 6: Business History
BUSINESS HISTORY STRONG HISTORICAL GROWTH 6 Duratec Limited – 1H FY24 Results Presentation – 23 February 2024
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS CONSISTENT GROWTH & PROFITABILITY EPS Revenue1 EBITDA2 NPAT 4.96 cents per share $292.7m $23.9m $12.2m Interim Dividend Up from $228.5m in PCP Margin 8.2% Margin 4.2% 1.5 cents Per share, fully franked Order Book Tenders Pipeline Cash $387.8m $1.02b $3.7b $58.5m Down from $411.2
Slide 8: Financial Results
FINANCIAL RESULTS
Slide 9: 1H FY24 Financial Results
1H FY24 FINANCIAL RESULTS PRIOR COMPARATIVE PERIOD MOVEMENT 1H FY24 1H FY23 PCP Movement PCP Movement • Record revenue result for Mining & $'000 $'000 $'000 % Industrial – up 161% Revenue 292,737 228,532 64,205 28% • Improved EBITDA and NPAT margins Reported EBITDA 23,741 15,605 8,136 52% 7,735 Norm
Slide 10: Balance Sheet
BALANCE SHEET SUMMARY Consolidated Entity Financial Position as at 31 December 2023 Dec-23 Jun-23 • Strong balance sheet position $'000 $'000 ASSETS Cash and cash equivalents 58,539 66,187 • Net assets up 13% Trade and other receivables 46,181 66,119 Contract assets 38,646 25,185 • Investment in pla
Slide 11: 1H FY24 Cashflow
1H FY24 FINANCIAL RESULTS 1H FY24 CASHFLOW Final earnout payment Working Capital and Borrowings used to for the acquisition of support project cashflow requirements WPF FY23 final dividend of 3 cps 11 Duratec Limited – 1H FY24 Results Presentation – 23 February 2024
Slide 12: Operational Highlights
OPERATIONAL HIGHLIGHTS
Slide 13: 1H FY24 Operational Highlights: Key Projects
1H FY24 OPERATIONAL HIGHLIGHTS KEY PROJECTS Western Sydney Central Park RAAF Base Tindal HMAS Stirling Oxley BHP Berth HMAS Coonawarra Airport Fuel Ring Building Recladding Fuel Facility Wharf Extension C&D Remediation Harbour Works Main $63m $110m $72m $42m $55m $100m 84% Complete 74% Complete 90%
Slide 14: Sector Performance – Total Revenue
OPERATIONAL HIGHLIGHTS SECTOR PERFORMANCE – TOTAL REVENUE $292.7m MINING & BUILDINGS & ENERGY OTHER DEFENCE (including Marine, Transport INDUSTRIAL FACADES (includes WPF) and Water Infrastructure) Revenue Revenue Revenue Revenue Revenue $124m $84m $52.9m $23.3m $8.4m From $112m in FY23 From $32.2m i
Slide 15: WPF
WPF GEOGRAPHIC GROWTH AND INVESTMENT IN TECHNOLOGY • WPF undertook a rebranding to support the Company’s strategic plan to align more closely to Duratec group brand • Completed the business purchase acquisition of A&B Welding Pty Ltd in Dawin, NT for $1.5m • New Darwin branch has doubled WPF fabrica
Slide 16: MEnD Consulting
MEND CONSULTING EXPERIENCE IN DELIVERING QUALITY OUTCOMES • Duratec’s in-house technical service is MEnD Consulting (wholly owned subsidiary) • Data processing has improved as to our ability to deliver our models onto our clients existing digital platforms • Laboratory services are seeing an increas
Slide 17: DDR Australia
DDR AUSTRALIA OUTLOOK REMAINS POSITIVE • Equity accounted investment owned by Duratec (49%) and Hutcheson & Co Holdings Pty Ltd (51%) • Provides meaningful work and training opportunities to Aboriginal and Torres Strait Islander peoples • Dedicated leadership team strengthened by additional key appo
Slide 18: Master Services Agreements
1H FY24 OPERATIONAL HIGHLIGHTS MASTER SERVICES AGREEMENTS Represents 6-month actuals • MSA and annuity style projects represents approximately 24% of revenue currently • Annuity style contracts are more profitable than Duratec’s average gross profit percentage 18 Duratec Limited – 1H FY24 Results Pr
Slide 19: HSECQ Overview
OPERATIONAL HIGHLIGHT HSECQ OVERVIEW Safety & Wellbeing Learning & Development • Continuous improvement and working towards best practice • Roll out of Supervisor Leadership Program • No Lost Time Injuries recorded • Development and roll out of Scaffold Awareness Training • 46% reduction in TRIFR fr
Slide 20: Outlook
OUTLOOK DURANTE
Slide 21: Order Book, Tenders and Pipeline
OUTLOOK ORDER BOOK, TENDERS AND PIPELINE Order Book Tenders Pipeline $387.8 $1.02 $3.74 million billion billion from $411.2m from $1.02b from $3.28b at 24 Nov 2023 at 24 Nov 2023 at 24 Nov 2023 21 Duratec Limited – 1H FY24 Results Presentation – 23 February 2024
Slide 22: Total Addressable Market by Sector
OUTLOOK TOTAL ADDRESSABLE MARKET (TAM) – BY SECTOR (AUSTRALIA) ¹ Duratec achieved FY23 Defence sector revenue of $229m. Defence TAM sourced from Department of Defence sustainment spend detailed in the Department of Defence 2020 Strategic Update ² Duratec achieved FY23 Mining & Industrial sector reve
Slide 23: 2H FY24 and Beyond
OUTLOOK 2H FY24 AND BEYOND AUKUS $8 billion Annuity contracts with key Solid revenue growth WPF expansion into the expansion of Perth's naval repeat strategic clients expected in FY24 Northern Territory base continue to provide strong through acquisition of growth into the future Utilisation of the
Slide 24: Question Session
QUESTION SESSION CHRIS OATES OLLIE MCKEON ASHLEY MUIRHEAD Managing Director Executive Manager - Corporate, Chief Financial Officer Strategy & Investor Relations 24 Duratec Limited – 1H FY24 Results Presentation – 23 February 2024
Slide 25: Appendices
APPENDICES
Slide 26: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by Duratec Limited (ACN 141 614 075) ("Duratec", "Duratec Group" and the "Company"). The information contained in this presentation is for information Tpurposes only. The information contained in this presentation is not investment
Slide 27: Investment Case
INVESTMENT CASE NATIONAL LEADER WITH EXPERIENCED BOARD AND MANAGEMENT Strong Historical Growth and Guidance for FY24 Share Price and Volume – 1H FY24 3,000,000 $1.80 Volume (M shares) 2,500,000 $1.60 2,000,000 $1.40 Close Price ($) 1,500,000 $1.20 1,000,000 $1.00 500,000 $0.80 0 $0.60 Volume Close E
Slide 28: Marine Remediation
MARINE REMEDIATION WHARF REMEDIATION PROJECT AT BHP BERTH C&D Duratec was engaged by BHP WA Iron Ore to undertake a $48 million wharf remediation project at Finucane Island, off Port Hedland in WA. More specifically, the project involves works to Berth C&D and consists of the following objectives: •
Slide 29: Asset Management
ASSET MANAGEMENT SYDNEY HARBOUR FEDERATION TRUST REPAIRS AND ASSET MAINTENANCE PROGRAM Duratec was appointed Managing Contractor of the prestigious $13 million Sydney Harbour Federation Trust's repairs and asset maintenance program in February 2022. SCOPE • Condition audit of the Harbour Trust’s ass
Slide 30: Robotic Welding
ROBOTIC WELDING WPF ACQUIRES NOVARC ROBOT • Labour shortages are the number one problem faced in the welding sector, with only 20% of the sector approaching to solve this issue with technology-based solutions. • Situated within this industry, WPF identified the opportunity to invest in technology pr