Slide 1: H1FY21 Results Presentation
H1FY21 RESULTS PRESENTATION 24 FEBRUARY 2021
Slide 2: Important notice and disclaimer
Important notice and disclaimer T 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 purposes only. The information contained in this presentation is not investment
Slide 3: Corporate Snapshot
Corporate Snapshot National leader with experienced board and management committed to driving sustainable growth Capital Structure Share Price and Volume since IPO 0.8 2.50 ASX Code DUR 0.7 Shares on issue 237.4m 2.00 0.6 Volume (M shares) Last Price (cps) Share price as at 24 February 2021 52.5c 0.
Slide 4: H1FY21 Financial Highlights
H1FY21 Financial Highlights Result demonstrated the resilience and strength of diversity in the business Revenue2 EBITDA1 NPAT1 $124.1m $11.7m $6.1m 3.2% on H1FY20 4.5% on H1FY20 2.6% on H1FY20 Cash EBITDA Margin1 NPAT Margin1 $31.0m 9.4% 5.0% Robust balance sheet, primed for growth 8.0% on
Slide 5: H1FY21 Operational Highlights
H1FY21 Operational Highlights Key Observations and Themes Safe & Sustainable Operations Zero lost time injuries and continued investment to foster a culture of ZERO HARM. Engaged in over 1,100 projects and performed strongly despite COVID-19 challenges. High performance and activity Key market segme
Slide 6: H1FY21 Financial Result
H1FY21 Financial Result Result demonstrated the resilience and strength of diversity in the business Continuing solid business performance in H1FY21. H1FY21 H1FY20 Variance Lower revenue of $124.1m (down 3.2% on prior corresponding Revenue $124.1m $128.2m (3.2%) period of H1FY20 (PCP)) due to • Dela
Slide 7: H1FY21 Projects Delivery
H1FY21 Projects Delivery Key sector and project overview – high delivery and service levels maintained Core Service Offerings Client industries Engaged in ~1,100 projects during H1FY21 (some on-going) Key H1FY21 projects: Defence Defence – RAAF Base Richmond works, Fisherman's Bend building refurbis
Slide 8: Results by Industry Segment
Results by Industry Segment Diversification across sectors continues to be important Revenue by industry segment ($m) Gross Profit by industry segment ($m) 140.0 30.0 128.2 124.1 119.1 25.0 120.0 25.0 23.2 22.9 100.0 20.0 80.0 15.0 60.0 10.0 40.0 5.0 20.0 - - H1FY20 H2FY20 H1FY21 H1FY20 H2FY20 H1FY2
Slide 9: Revenue composition
Revenue composition Geographic diversification strategy Revenue by region1 ($m) H1FY21 down 3.2% compared to H1FY20 (but 4.2% increase over 140 H2FY20). Key drivers for change 120 Western Region 100 • Overall down by $12.3m principally in Defence as major works were 69.6 60.9 completed and new award
Slide 10: Dundee Rock Joint Venture (DDRIC)
Dundee Rock Joint Venture (DDRIC) Significant contributor in H1FY21 JV between Duratec (49%) and Dundee Rock (51%) to provide meaningful work and training opportunities to indigenous people. Dedicated leadership team and additional key appointments. Increased focus on project pipeline forecasts and
Slide 11: Dundee Rock Joint Venture (DDRIC)
Dundee Rock Joint Venture (DDRIC) Excellent growth outlook Demonstrated growth – graph shows (100% DDRIC business) DDRIC Revenue ($m) revenue growth. Strong financial performance and $1.4m dividend to Duratec with an $30.0 expectation of continued strong financial performance. $25.0 $20.0 Current Wo
Slide 12: Orderbook and Pipeline
Orderbook and Pipeline Growing and diversified pipeline Orderbook1 Tendered2 Identified Opportunities2 16% 21% 27% 35% 34% 12% $113.1m $567.0m $1.93b 52% 15% 9% 20% 38% 22% Defence Buildings & Facades Defence Buildings & Facades Defence Buildings & Facades Mining and Industrial Other Mining & Indust
Slide 13: COVID-19 Impact
COVID-19 Impact Duratec navigated H1FY21 with great resilience Great resilience and leadership demonstrated. Diversified business model with State based teams continued to successfully navigate challenges. Duratec did not receive any JobKeeper support. Increased Government spending due to stimulus p
Slide 14: HSECQ Overview
HSECQ Overview Duratec safety initiatives – working towards ZERO HARM Improving safety record with no LTI in H1FY21 Mental Health First Aid Training implemented to better equip team leaders Restructuring of Health and Safety team with addition of new National HSE Manager to complement the Systems an
Slide 15: Outlook
Outlook Very positive business context - H2FY21 and beyond Key macro themes and demand drivers that support Duratec’s organic growth continue: • Strong commodity prices underpin increased resource sector investment. • Government infrastructure stimulus spending, including Defence nationally. • Asset
Slide 16: Outlook by operating segment
Outlook Outlook by operating segment Defence • Defence sustainment spending forecast to double to $23.8b over the next decade. Mining and Industrial • The resource sector teams are well positioned nationally to meet the increasing demand for remediation and life extension of ageing mining and resour
Slide 17: Appendices
APPENDICES H1FY21 Financial Results - [24 February 2021]
Slide 18: Appendix 1 - Financial Information Reconciliation
Appendix 1 - Financial Information Reconciliation Reconciliation of Statutory results to Normalised results Reported EBITDA - Reconciliation ($’000) 1H2021 1H2020 Reported EBIT - Reconciliation ($’000) 1H2021 1H2020 Profit before income tax 6,162 9,406 Profit before income tax 6,162 9,406 Depreciati
Slide 19: Appendix 2 – Balance Sheets
Appendix 2 – Balance Sheets Dec-20 Jun-20 $000 $000 Assets Contract assets and Contract liabilities refer to contract work in progress Current assets Cash and cash equivalents 31,045 41,276 accrued revenue and revenue billed in advance of works completed. Trade and other receivables 18,409 19,597 Co
Slide 20: Appendix 3 – Cashflow Statements
Appendix 3 – Cashflow Statements Cash flow from operations – impacted by debtor receipts in June 2020, reduced cash receipts in the half-year ended December 2020. Capital expenditure included jack-up barge to further enhance marine capabilities. Dividend received from DDRIC. Dividends paid relate to