Slide 1: FY21 Results Presentation
FY21 RESULTS PRESENTATION August 2021
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements and forecast provided by or on behalf of Verbrec Limited. Any forward-looking statements reflect various assumptions by or on behalf of Verbrec. Accordingly, these statements are subject to significant business, economic and competitive uncert
Slide 3: Executive Summary
Executive Summary 1. Corporate Profile 2. FY21 Results 3. Strategic Initiatives and Growth Strategy 4. Appendix 3
Slide 4: 1. Corporate Profile
®iverbrec evolution engineered
Slide 5: Corporate Profile
Corporate Profile Verbrec Limited (ASX: VBC) is a leading mid-tier engineering, training and infrastructure services business executing work across Australia, New Zealand, PNG and the Pacific Islands. Core industry markets spanning energy, mining and infrastructure. Geographically well positioned de
Slide 6: Core Markets
Core Markets Verbrec provides services across diversified markets each experiencing significant growth and undergoing major transformation creating considerable opportunities ❑ Mining & Minerals Key commodity prices remain very strong and mini-boom associated with battery minerals ❑ We are seeing in
Slide 7: Safety - zero harm, always
Safety - zero harm, always Key outcomes ❑ 3.5 years since last recordable injury, TRIFR remains at 0 ❑ Managed COVID-19 risks, to date no confirmed cases amongst our team ❑ Obtained ISO45001 HSEQ recertification, following an external audit of our systems and processes Key initiatives ❑ Safety leade
Slide 8: 2. FY21 Results
FY21 Results ®iverbrec evolution engineered
Slide 9: FY21 Financial performance
FY21 Financial performance FY21 FY20 (Restated) Change to PCP Revenue ($) 98.3m 117.0m (18.7m) Gross Profit ($) 27.7m 36.3m (8.6m) Gross Margin % 28.2% 31.0% (2.8%) Sales, General & Admin Costs ($) (27.7m) (29.9m) 2.2m Statutory EBITDA ($) 1.2m 7.6m (6.4m) Statutory EBITDA Margin % 1.2% 6.5% (5.3%)
Slide 10: FY21 Margin Analysis
FY21 Margin Analysis ❑ FY21 results impacted by 3 poor performing legacy projects; COVID impacts and unresolved delay claim ❑ Detailed bottom-up reviews of project costs through to completion conducted in May 2021 ❑ Underlying Margins remained strong at 32.5% (after adding back Margins from 3 poor p
Slide 11: Cash Analysis
Cash Analysis Investment in growth and repayment of debt $m Cash Movement FY20 to FY21 ($m) 18.0 ❑ Cash outflows used to fund growth and repay debt 16.0 ❑ $5.4m used to fund EIM and Site Skills cash consideration 14.0 5.4 ❑ $4.0m in net debt repayments 12.0 ❑ Cash flows from operations ($1.2m), impa
Slide 12: FY21 Operating Highlights
FY21 Operating Highlights Transformation of the business now complete following successful merger of OSD and LogiCamms ❑ Rebranding of LogiCamms to Verbrec ❑ Acquisitions of EIM and Site Skills Training, delivery of first stage of Verbrec’s growth strategy ❑ EIM merged in to existing Infrastructure
Slide 13: FY21 Impacts of COVID-19
FY21 Impacts of COVID-19 FY21 Current Notes Key commodity prices Project delays experienced. Recently Work-in-Hand ($m's) Low of seen strong rebound, significant Oil & Gas $US67/barrel 80 $US30/barrel increase in bidding activity to energy clients 70 Driving significant activity in Western Iron Ore
Slide 14: Acquisition Integration
Acquisition Integration Bolt-on acquisitions seamlessly integrate to existing BU’s providing opportunities to expand capability, add scale and extract synergies ❑ EIM now fully integrated with targeted $0.75m in synergies achieved and long dated O&M agreements extended providing recurring revenue st
Slide 15: 3. Strategic Initiatives & Growth Strategy
3. Strategic Initiatives & Growth Strategy 15
Slide 16: Growth Strategy
Growth Strategy Growth focussed on expanding existing Capabilities in Key Markets whilst at same time adding scale and increasing exposure to recurring and non-project revenues 01 02 03 Maximise returns from core business Expand existing Capabilities Increase recurring and in Key Markets non-project
Slide 17: Key Growth Drivers
Key Growth Drivers Organic Growth ❑ Recurring revenues: under-pinned by: Pipeline1 ❑ 26 Master Service Agreements with Tier 1 companies ❑ 8 Operations & Maintenance Agreements with Tier 1 companies ❑ StacksOn™: Commercialise and further develop StacksOn™ – 3D Current Order Book1 visualization softwa
Slide 18: Outlook
Outlook Key Industry sectors have rebounded strongly from CY20 lows - well positioned to grow both Revenues and Margins ❑ Work in hand at end of August totals $76.6m, significant increase from $45.0m at end of January 2021 ❑ Significant increase in bidding activity – confident of securing several la
Slide 19: 4. Appendix
4. Appendix @iverbrec evolution engineered
Slide 20: Corporate Snapshot
Corporate Snapshot Capital Structure ASX code VBC Share Price Performance1 Market Cap (as at 24 August 2021) $32.0m Share price (as at 24 August 2021) $0.145 Shares on issue 220.4m Cash (as at 30 June 2021) $8.3m Net Cash Position2 (as at 30 June 2021) $0.6m Top 5 Shareholders Name Holding Brian O’S
Slide 21: Board of Directors
Board of Directors Philip Campbell Brian O’Sullivan Linton Burns Matthew Morgan Sarah Zeljko Non-Executive Chairman Non-Executive Director Managing Director Non-Executive Director Non-Executive Director Phillip joined Verbrec in October As the former founder and Linton has over 25 years of Matthew j
Slide 22: OQverbrec
OQverbrec