Dug Technology Ltd · ASX:DUG
Dug Technology — Investor Presentation (June 2021)
32 slides from Dug Technology's investor presentation, June 2021
Slide 1: DUG Technology Ltd Investor Presentation
DUG Technology Ltd ASX Code ‘DUG’ Investor Presentation June 2021
Slide 2: DUG in a nutshell
DUG in a nutshell DUG is… o software o big compute o big data o numerical algorithms o services Delivered through… o 4 global offices and high-performance computing centres o 29 petaflops of compute and 35 petabytes of storage o c.300 staff Delivered to… o 200 customers o 48 countries 2
Slide 3: DUG’s global footprint and capacity
DUG’s global footprint and capacity 3
Slide 4: Recent ASX announcements
Recent ASX announcements 31 May Settlement of patent litigation with PGS Australia Pty Ltd 26 May Trading update 25 May Media release – DUG Technology plan to build world’s first carbon-free high-performance computing data centre in Geraldton 24 May DUG Cool U.S. Patent Grant 17 May CSIRO signs on f
Slide 5: Application software
Application software o DUG Insight is a modern, intuitive and interactive software suite allowing random access, processing and visualisation of “Big Data”. o Modules sit within a single interpretation / visualisation system, streamlining the user experience. o All software has been thoroughly teste
Slide 6: Numerical and AI software
Numerical and AI software o DUG’s goal: To make its clients successful on DUG’s HPC. o Background 1. Software writing used to be a much simpler affair as each CPU only ran a single compute task at a time. Hence most scientific compute programs were simple and logical in nature and could be written d
Slide 7: HPC is vital for research
HPC is vital for research “All areas of contemporary research require access to advanced computing capabilities such as big data, data science and HPC.” Prof. Andrew Rohl, Head of School of Electrical Engineering, Computing and Mathematical Sciences, Curtin University “At one end we have an innovati
Slide 8: HPCaaS outlook
HPCaaS outlook o CSO measures the HPC market as c.US$151bn in 2019 and forecast it to grow c.25% per year from 2019 to 2026 for a predicted market size of c.US$719bn o DUG’s HPC team completed 18 proof of concepts during H1 FY21, with 7 currently underway, outside of the O&G industry o Industries ev
Slide 9: HPC - carbon footprint
HPC - carbon footprint HPC is a huge energy consumer and traditionally has a large carbon footprint. DUG plans to be carbon free in the near- to mid-term, with its new HPC campus “Astronomers know all too well how precious and unique the environment of our planet is. Yet the size of our carbon footp
Slide 10: Orange is the new green!
Orange is the new green! o DUG Cool – patented technology. o A reduction of c.51% in facility energy use compared to conventional computer rooms; o Significantly reduced hardware failure rates, thereby extending the useful life of computers and reducing maintenance CAPEX; o Streamlined modular syste
Slide 11: Precedents – facilitating access to commercial cloud providers
Precedents – facilitating access to commercial cloud providers o HPC is traditionally provided by government/public facilities. o Precedents exist for HPC being increasingly provided by commercial facilities: United Kingdom o In February 2021, the UK Met Office announced a move to the Cloud with a £
Slide 12: DUG’s goal is to build a world-class HPC campus in Narngulu
DUG’s goal is to build a world-class HPC campus in Narngulu o Complete Data Hall 1 in Q2 2022 HPC Petaflop Chart 180 o “Triple green” 160 Data Hall 1 o DUG’s patented “greenest computer room in the world” technology potentially 200 PF o Renewable energy (solar and wind) 140 o Hydrogen “battery” Futu
Slide 13: Why Mid-West and why in Geraldton?
Why Mid-West and why in Geraldton? o World-leading renewable energy resources in both wind and solar o Strong desire for duplicate fibre connections o Need space for renewable power generation (wind and solar) o 3.5 msec from Perth (latency) – so readily accessible throughout Australia and Asia o Re
Slide 14: Capital model
Capital model Deployment Potential Economic Scenario - Geraldton Data Hall 1 @ 200 PF * USD'm o Long lead time data centre infrastructure built upfront o Compute deployed opportunistically / JIT as demand dictates Revenue 224 o Additional compute deployed at 90% utilisation EBIT 139 o Low maintenanc
Slide 15: Revenue model
Revenue model Revenue transition to higher margin product lines o “Big data” storage, processing and visualisation software o Use case – resources, radio astronomy and beyond o Opportunities in medical o Recurring revenue - annual lease o EBITDA margin 53% o Super reliable, green compute cycles and
Slide 16: Sales force
Sales force DUG is increasing its sales capacity: o Training of existing sales force (c.16 people globally) in new product lines o Shifting sales force to an account management structure with product champions for support o Added regional sales leaders o Adding new sales people into all offices as w
Slide 17: Success – Equinor case study
Success – Equinor case study o Equinor is a c. US$60bn market cap energy company o They are known as an early adopter of quality, innovative new technology o After an exhaustive evaluation period Equinor signed on to DUG McCloud and now: o Use the DUG Insight software suite in multiple offices o Use
Slide 18: Industry diversification case study – Harry Perkins Institute
Industry diversification case study – Harry Perkins Institute o Landmark medical research client signed in October 2020, validating DUG’s industry expansion strategy o The Harry Perkins Institute of Medical Research is one of Australia’s leading medical research institutes investigating diseases aff
Slide 19: Industry diversification case study – SKA
Industry diversification case study – SKA The Square Kilometre Array (SKA) project is an international effort to build the world’s largest radio telescope, with sites in Western Australia and South Africa. With a multi-billion dollar budget SKA represents a huge leap forward in both engineering and
Slide 20: Staying connected
Staying connected www.dug.com/dug-blog www.facebook.com/TeamDUG/ www.linkedin.com/company/teamdug www.twitter.com/team_dug investor@dug.com +61 (0)8 9287 4100 20
Slide 21: Appendix: H1 FY21 Financials
Appendix H1 FY21 Financials
Slide 22: H1 FY21 highlights
H1 FY21 highlights o DUG listed on ASX in August 2020 o Revenue at US$24.2m with EBITDA of US$4.2m o DUG Insight Software revenue growth 12% year-on-year o HPCaaS revenue growth 86% half-on-half o Committed compute and storage revenue up 213% half-on-half o Margin improvements in Software and HPCaaS
Slide 23: Software performance
Software performance o DUG Insight revenue increased by 12% yoy o Growth has been driven by new licensing deals as part of DUG McCloud contract awards o Actively pursuing opportunities to grow DUG’s software suite: o Working in conjunction with Professor Steven Tingay, WA Scientist of the Year (2020
Slide 24: HPCaaS performance
HPCaaS performance o HPCaaS revenue up 86% Key HPCaaS signings H1 FY21: hoh o Equinor o Committed Compute and o Harry Perkins Storage revenue up 213% hoh o INPEX o Non O&G revenue up 168% o UWA School of Population hoh and Global Health o US$1.1m contracted o Optic Earth revenue from Feb-21 to Jun-2
Slide 25: Services performance
Services performance o Sustainable business with oil price recovery and stabilisation Brent Crude Price Per Barrel US$ o Revenue growth of 7% hoh o Increasing levels of activity and proposals – industry is waking up o Redundancies implemented in Dec-20 reduced headcount by c. 10% to right size this
Slide 26: DUG performance
DUG performance o Strong performance in midst of current economic turmoil o Revenue of US$24.2m down year-on-year, due to diminishing revenue from the Polarcus On Board Processing (OBP) deal and falling Services revenue. Revenue excluding government grants is up 15% half-on-half, with revenue growth
Slide 27: Profit and loss
Profit and loss o DUG has increased its focus on Software and has successfully broadened to include HPCaaS. All provided through our DUG McCloud platform. o HPCaaS revenue up 86% half-on-half and DUG Insight revenue up 12% year-on-year o Pre-COVID, year-on-year revenue comparison reflects the impact
Slide 28: Balance sheet
Balance sheet o Fixed assets reflect the net book value of compute, storage, network and data room infrastructure o DUG builds long-lead time data centre infrastructure upfront, with short lead-time items (compute and storage) added just-in-time as demand dictates o US$5.5m invested in H1 FY21 to in
Slide 29: Cashflow
Cashflow o Underlying operations are cash generative o Invested US$5.5m in increasing compute, storage and networking capacity in the Houston facility o Net IPO proceeds of $16.6m after payment of transaction fees 29
Slide 30: Segment profit and loss
Segment profit and loss dug External customers 22.8 3.3 1.3 18.20 - 19.8 2.1 07 17.0 = - 25.3 46 08 199 - Inter-segment - - 8.5 - (8.5) - - 6.0 - (6.0) - - 47 - (4.7) Government grants 1.4 0.3 0.2 09 - 28 06 0.2 20 - 15 02 0.2 11 - Total revenue 24.2 3.6 10.0 19.1 (8.5)[ 22.6 27 6.9 19.0 (6.0)| 26.8
Slide 31: Disclaimer
Disclaimer This presentation has been prepared by DUG Technology Ltd ("DUG") based on information available as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision. Reliance sh
Slide 32: Reach for the Sky
Reach for the Sky