Verbrec Ltd · ASX:VBC
Verbrec — Investor Presentation (April 2024)
38 slides from Verbrec's investor presentation, Apr 30, 2024
Slide 1: Enabling a sustainable future for our Clients and their Customers
Enabling a sustainable future for our Clients and their Customers 1
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: Recognised Partner for a Sustainable Future
Recognised Partner for a Sustainable Future Through strong relationships, built on trust Verbrec enables a sustainable future for our Clients and their Customers.
Slide 4: Verbrec Overview
Verbrec Overview Structured for Profitable Growth through the Energy Transition in Australia, NZ, PNG and the Pacific Islands 4 Divisions across an Well-Positioned to Asset Lifecycle from 3 Core Markets are capture the Growing Growing Margins & Initial Concepts to critical for the future Energy Tran
Slide 5: Our Capabilities
Enabling the Evolving Energy Landscape Our Capabilities 3 CORE MARKETS ENERGY MINING INFRASTRUCTURE 400 TEAM MEMBERS 3 TRANSITION MARKETS GAS MARKET SUSTAINABLE ELECTRIFICATION / TRANSITION MINING ENERGY STORAGE
Slide 6: Full Asset Lifecycle
Turn Key Services for the Full Asset Lifecycle ENGINEERING Concept to Detailed Design PROCURE, CONSTRUCT & COMMISSION Project Management to Bring Design to Life ASSET MANAGEMENT Increase Efficiencies, Reduce Costs & Improve Productivity INFRASTRUCTURE SERVICES On-site Asset Operations and Maintenanc
Slide 7: The Verbrec Advantage
The Verbrec Advantage Long-term contracts and panel agreements with key relationship clients Government and existing clients are increasing investment into the new market created by the energy transition, Verbrec is prepared to meet their needs Verbrec’s training business enables the client’s workfo
Slide 8: Our valued Relationship Clients
Our valued Relationship Clients Infrastructure & Defence Mining & Minerals 12 KEY ACCOUNTS 43 MULTI-YEAR PANEL AGREEMENTS Energy & Utilities Energy & Utilities 12 MULTI-YEAR OPERATIONS CONTRACTS
Slide 9: The three pillars of our Growth Strategy
The three pillars of our Growth Strategy MINING ORGANIC GROWTH ENERGY TRANSITION TECHNOLOGY SOLUTIONS ▪ Leverage existing relationships to ▪ Secure new projects and clients ▪ Add new functionality to StacksOn add value to new and adjacent through expertise in concept and & increase annual license fe
Slide 10: Renewed Strategy & Sustainability Growth Focus Areas
Renewed Strategy & Sustainability Growth Focus Areas
Slide 11: Our Strategy
The Evolving Energy Landscape Our Strategy REFRESHED STRATEGY VALUE PROPOSITION Relationship Clients ✓ Full life-cycle services for client projects and assets Be the provider of choice for our Chosen Clients ✓ Enabling energy transition through capability driven engineering and training services Bes
Slide 12: Our Focus
The Evolving Energy Landscape Our Focus ELECTRIFICATION & GAS MARKET SUSTAINABLE ENERGY STORAGE TRANSITION MINING ▪ Need for Gas ‘firming’ in ▪ Gas as a peaking fuel rather than ▪ Minimisation of scope 3 emissions renewables ‘rich’ grid a base load fuel ▪ Higher grade commodities such as ▪ Transitio
Slide 13: Market Opportunity
The Evolving Energy Landscape Market Opportunity ENERGY TRANSITION AUSTRALIA ▪ The decarbonisation of Australia’s heavy industry will require significant technology and infrastructure effort ▪ Australia will require over 350 Twh/year of electricity by 2030 in order to achieve the Net-Zero goals set
Slide 14: Market Opportunity
The Evolving Energy Landscape Market Opportunity 70 18 200 60 16 14 150 50 12 40 10 100 30 8 6 20 4 50 10 2 0 0 0 NOW 2030 2050 NOW 2050 NOW 2030 2050 STORAGE GAS INVESTMENT Storage Capacity to increase from Gas fired peaking plant capacity to Investment in industry, technologies, 7GW to 61 GW by 20
Slide 15: Market Opportunity: Electrification & Energy Storage
Electrification & Energy Storage Market Opportunity 1 Demand 2 Sustainability Drivers ▪ Electrical services industry in ▪ Australia will require over Australia is $16.4 billion as of 350 Twh/year of electricity 1 2 2024, a slight increase from by 2030 in order to achieve the previous year the Net-Ze
Slide 16: Market Opportunity: Gas Market Transition
Gas Market Transition Market Opportunity 1 Demand 2 Sustainability Drivers ▪ The Australian natural gas ▪ Peaking gas-fired market was valued at generators will play a 1 2 approximately US $25 crucial role as significant billion in 2023 and is coal fired generation expected to grow at a retires as a
Slide 17: Market Opportunity: Sustainable Mining
Sustainable Mining Market Opportunity 1 Demand 2 Sustainability Drivers ▪ Mining contributes 13.7% to ▪ The industry is navigating the Australia’s GDP challenges of climate change ▪ An estimated annual demand and the push towards net-zero 1 2 for metals and minerals targets, which necessitates a exc
Slide 18: Capturing the Opportunity
Verbrec is already Capturing the Opportunity 17% 31% Our awarded contracts are already Infrastructure & Defence moving into our Sustainable Focus Process & Hydrocarbons Areas Minerals & Metals 52% 11% 28% 37% Electrification & Energy Storage Gas Market Transition Sustainable Mining
Slide 19: Through strong relationships, built on trust
To: “Through strong relationships, built on trust, Verbrec enables a Recognised Partner for a Sustainable Future sustainable future for our Clients and their Customers” Long Duration Battery Energy Storage Concept Studies Pre-feasibility Study Of Mid-West Shared Infrastructure Broadlands Biogas Upgr
Slide 20: Verbrec Business Units
Verbrec Business Units Leveraging deep expertise and technology across the whole asset lifecycle, enabling a sustainable future for our clients and their customers in core sectors of energy, infrastructure and mining.
Slide 21: Engineering
Verbrec Business Units Engineering VERBREC ENGINEERING SERVICES KEY DRIVERS GROWTH INITIATIVES Innovative engineering and project delivery solutions to clients – through our technical specialities, including ▪ Support key relationship clients ▪ Target key markets of growth in Automation & Control, P
Slide 22: Case Study: Snapper Point EPC
Case Study Snapper Point EPC – Transformative Sustainable Project Project Overview Verbrec delivered the concept study, front-end engineering design (FEED), detailed design, procurement, construction and commissioning for the Snapper Point Pressure Reduction Metering Station (PRMS) and Lateral locat
Slide 23: Case Study: Broadlands Biogas Upgrade
Case Study Broadlands Biogas Upgrade Project Overview Verbrec is delivering the Broadlands Biogas Upgrade design for First Renewables Limited (FRL), as part of the Firstgas Group, completing the balance of the plant design of the Broadlands Biogas Upgrade facility. This includes linking the biogas u
Slide 24: Case Study: Long Duration Battery Energy Storage
Case Study Australian First Battery Trial - Long Duration Battery Energy Storage Project Overview Verbrec was engaged in the trial of two different battery storage technologies, both of which are being trialled for the first time in Australia. Each battery installation will be a 5MW/ 50MWhs BESS (Ba
Slide 25: Asset Management
Verbrec Business Units Asset Management VERBREC ASSET MANAGEMENT KEY DRIVERS GROWTH INITIATIVES Specialising in working with owners and ▪ Support key relationship clients ▪ Target key areas of growth in Gas operators to provide asset management through long term panel contracts Market Transition, El
Slide 26: Case Study: Hydrogen to Green Ammonia RAM Study
Case Study Hydrogen to Green Ammonia RAM Study Project Overview Project’s objective was to consider the feasibility of converting the client's Urea facility (nitrogen-based fertilisers) into the production of industrial scale Green Ammonia. Verbrec was tasked by the client to develop a Reliability,
Slide 27: Infrastructure Services
Verbrec Business Units Infrastructure Services VERBREC INFRASTRUCTURE SERVICES KEY DRIVERS GROWTH INITIATIVES Providing full life-cycle services for project delivery from inception ▪ Securing multi-year operations ▪ Target new asset classes and through procurement, construction and maintenance contr
Slide 28: Case Study: Shoalhaven Starches Bomaderry Gas Pipeline
Case Study Shoalhaven Starches Bomaderry Gas Pipeline Project Overview Verbrec Infrastructure Services has been engaged to deliver operation and maintenance services for the 6km SSBGP from the Eastern Gas Pipeline (EGP) tie in, through to the new cogeneration plant, powering the Bomaderry food produ
Slide 29: Competency Training
Verbrec Business Units Competency Training VERBREC INDUSTRY TRAINING KEY DRIVERS GROWTH INITIATIVES Through the trade name, Competency ▪ Blend of Business to Business and ▪ Target key areas of growth in Gas Training provides a range of hazardous Business to Consumer revenue Market Transition, Electr
Slide 30: Case Study: Accredited IECEx Certifier
Case Study Accredited IECEX Certifier with International Reach Project Overview Competency Training is an accredited IECEx Certification Body within the IECEx Certification of Personnel Competencies. Through partnerships with several international organisations, Competency Training delivers certific
Slide 31: StacksOn
Verbrec Business Units StacksOn STACKSON KEY DRIVERS GROWTH INITIATIVES The digital twin of choice for smarter and ▪ Diverse Revenue generation ▪ Expand StacksOn throughout the more efficient stockyards. through a blend of software Western Australian Iron Ore Market license fees, ongoing support Sta
Slide 32: Case Study: BHP Ship Tonnes Faster
Case Study BHP Ship Tonnes Faster - Improving Operational Efficiency Project Overview BHP Iron Ore are successfully using StacksOn across their entire WA operations, both at the mine site and Ports, with significant savings per annum. BHP wanted to speed up their train loading times, increase their y
Slide 33: Verbrec Financials & Outlook
Verbrec Financials & Outlook Throughout the half year ended 31 December 2024, Verbrec undertook pivotal activities to establish a new foundation of profitability and growth
Slide 34: Financial Commentary
H1 FY2024 Financial Commentary H1 H1 Change FY2024 FY2023 to PCP H1 FY2024 H1 FY2024 Revenue $50.0 m $59.1 m ($9.1 m) REVENUE BY COMMENTARY SOURCE Gross Profit $17.4 m $15.1 m $2.4 m 2% ▪ We are focused on growth 11% incl. revenue, margins Gross Margin 34.9 % 25.5 % 9.4 % • Operational review and EB
Slide 35: Commitment Checklist
H1 FY2024 Commitment Checklist STATUS Sale of non-profitable training business resulting in annualised EBITDA savings of $2.0 million Review of projects including high risk construction activities resulting in annualised EBITDA savings of up to $1.0 million Operational review and reduction in overhe
Slide 36: Financial Highlights
H1 FY2024 Financial Highlights 35.00% 10.00% $50.00 30.00% 8.00% $40.00 25.00% 20.00% 6.00% $30.00 15.00% 4.00% $20.00 10.00% 2.00% $10.00 5.00% 0.00% 0.00% $0.00 H1 FY2023 H1 FY2024 H1 FY2023 H1 FY2024 H1 FY2023 H1 FY2024 GROSS MARGIN EBITDA MARGIN COST OF SALES Gross Profits increased from $15.1 m
Slide 37: Outlook & Summary
Verbrec Outlook & Summary OUTLOOK SUMMARY ▪ Improved financial position and ▪ Increasing capability via foundations established for onboarding, partnering and profitability and growth acquisition to serve the growing energy transition market ▪ Continued focus on improving margins ▪ Invest in high pe
Slide 38: Investor Relations & Media Enquiries
Investor Relations & Media Enquiries Joel Voss Company Secretary Investors@verbrec.com Company Enquiries Mark Read Chief Executive Officer Mark.Read@verbrec.com