Verbrec Ltd · ASX:VBC
Verbrec — FY2023 Earnings Presentation
40 slides from Verbrec's earnings presentation, Sep 6, 2023
Slide 1: Verbrec
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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: Agenda
Agenda 1. Corporate Profile 2. Introduction to your new CEO 3. FY2023 Results 4. Key Messages for FY2024 5. Project and Product Highlight Engineering a digitised, net zero 6. Strategic Initiatives & Long Term Growth carbon future. Verbrec Investor Presentation 2023
Slide 4: Corporate Profile
Corporate Profile Topics 1. Corporate Snapshot 2. Corporate Profile Verbrec Investor Presentation 2023
Slide 5: Corporate Snapshot
Corporate Snapshot Capital Structure ASX code VBC Market Cap (as at 1 September 2023) $26.6m Share price (as at 1 September 2023) $0.12 Shares on issue 221.5m Top 5 Shareholders Brian O’Sullivan 31.3% Thorney Investment Group 11.2% Candyblossom/Bloemhof P/L 9.9% GFNA Bartley Family 8.1% Forager Fund
Slide 6: Who is Verbrec
Who is Verbrec is a leading Engineering, Asset Management, Infrastructure, and Training Verbrec services provider, operating across the entire asset life-cycle. Our experienced team is recognised for its responsiveness and agility. We operate across multiple regions, including Australia, New Zealand
Slide 7: At a glance
Verbrec Safety At a glance Zero Harm, Always LTIFR MTIFR TRIFR FY16 1.14 1.14 2.28 FY17 0 2.39 3.59 FY18 0 1.45 4.35 500+ 3 FY19 FY20 0 0 0 0 0 0 TEAM MEMBERS CORE MARKETS ENERGY MINING INFRASTRUCTURE FY21 0 0 0 FY22 0 4.35 8.70 FY23 0 1.20 6.02 30+ 1 Through strong relationships built on 466 77 7 t
Slide 8: Our Geographical Footprint
Our Geographical Footprint Verbrec Investors Presentation 2023
Slide 9: Introduction to your new CEO
Introduction to your new CEO Topics 1. My Personal Journey 2. My Approach & Observations So Far Verbrec Investors Presentation 2023
Slide 10: My Personal Journey
Introduction to your new CEO My Personal Journey • New CEO Mark Read commenced 13 March 2023 • Over 30 Years experience across publicly listed and privately held engineering services companies, nationally and internationally • I look forward to delivering on the next stage of Verbrec’s evolution • T
Slide 11: My Approach & Observations So Far
Introduction to your new CEO My Approach & Observations So Far • There were some immediate actions that needed to take place soon after my appointment • We have a strong and capable team who deliver for our clients • We need to simplify operations and refocus our efforts on leveraging existing clien
Slide 12: FY2023 Results
FY2023 Results Topics 1. FY2023 Results Summary 2. Commentary on Results 3. The Impact of One-Off’s 4. Necessary Actions Taken Verbrec Investors Presentation 2023
Slide 13: FY2023 Results Summary
FY2023 Results Summary Impact Poor FY2023 Performing FY2023 FY2022 Statutory Projects One-Off’s Underlying Underlying Revenue ($) 118.2m - - 118.2m 121.4m Gross Profit ($) 30.4m 3.5m 0.0m 33.9m 42.1m EBITDAI ($) (0.7m) 3.5m 1.5m 4.3m 10.1m EBITDAI Margin (%) (0.6%) 3.0% 1.3% 3.7% 8.3%
Slide 14: FY2023 Results Summary
FY2023 Results Summary FY2023 FY2022 Change to PCP Sales, General & Admin Costs ($) (31.6m) (33.0m) 1.4m Net Cash Position ($) (2.3m) 5.7m (8.0m) * Cash on hand less borrowings Closing Cash Position ($) 4.5m 6.4m (1.9m)
Slide 15: Commentary on Results
Commentary on Results • Margins suffered throughout the period due to: o Economic slowdown in key areas o Skills Shortage and constrained labour market o Increase in cost base due to inflationary effects, increase in costs generally, particularly costs of maintaining talent within the business in or
Slide 16: The Impact of Legacy & One-off's
The Impact of Legacy & One-off’s • The final Legacy Project was terminated in January 2023 • The final Legacy Project is still negatively impacting the company, by way of legal costs in the pursuit of a recovery of outstanding fees owing from Service Stream Utilities to Verbrec • In addition, there
Slide 17: Necessary Actions Taken
Necessary Actions Taken • Actions needed to be taken during FY2023 and subsequent with the aim of producing more consistent results • Appointment of several new management personnel • Immediate action was taken to reduce overhead burdens, including a reduction in head-count and the closure of unprof
Slide 18: Key Messages for FY2024
Key Messages for FY2024 Topics 1. Simplify, Protect the Core 2. Client Focus 3. Organic Growth and Risk Mitigation Verbrec Investors Presentation 2023
Slide 19: Key Messages for FY2024: Simplify, Protect the Core
Key Messages for FY2024 Simplify, Protect the Core • Verbrec, by virtue of the pedigree of its historical brands, LogiCamms, OSD and Competency Training, has market leading capabilities • Management have acted with intent to limit distractions and re-focus the team on Verbrec’s core competencies • I
Slide 20: Key Messages for FY2024: Client Focus
Key Messages for FY2024 Client Focus • Reintroduction of Key Account Managers to ensure that we ‘know our client’ and meet consistent standards of excellence in the delivery of our products and services • Leveraging client relationships by understanding their business drivers, pipeline of work and l
Slide 21: Key Messages for FY2024: Organic Growth and Risk Mitigation
Key Messages for FY2024 Organic Growth and Risk Mitigation • 12 Key Clients generates approximately 40% of our Revenue • Improve our organic growth, with existing clients, underpinned by 42 Master Services Agreements (up 7 since last period) and 11 Operations and Maintenance Agreements (up 2 since l
Slide 22: Project and Product Highlight
Project and Product Highlight Long Duration Battery Energy Pre-feasibility Study Of Mid- Storage Concept Studies West Shared Infrastructure Verbrec Supporting Construction of Australia’s Gobe End of Field Life First LNG Import Terminal New Seawater Desalination Plant Project In South Energy Efficien
Slide 23: StacksOn - a Verbrec Product
StacksOn - a Verbrec Product Our Software Solutions group has developed the StacksOn stockpile simulation used across WAIO for grade control and throughput optimisation. StacksOn equips the client with full visibility over stock-pile grade inside inventories with visualisations and reclaim predictio
Slide 24: Focus on Growing License Revenues
Focus on Growing License Revenues • The StacksOn product was developed organically over many years and the costs of that development have been expensed and thus, it has minimal carrying value on Verbrec’s balance sheet • StacksOn was commercialised in 2021 when management determined that StacksOn so
Slide 25: Client Feedback
Client Feedback Laura Tyler, BHP Chief Technical Officer, World Mining Congress 2023 “So our digital factories got to work and came up with the Product Variability program, which we’ve been using at West Australian Iron Ore. The technology used a Grade Adjustment Model that uses data sources to capt
Slide 26: Interest in the Product
Interest in the Product • Board have been approached throughout FY2023 by parties interested in acquiring StacksOn • Indicative offers and discussions suggest a multiple of 6x to 8x annual license revenues • Expected StacksOn licensing revenues for FY2024 is forecasted to be $1.06 million • The Dire
Slide 27: Strategic Initiatives & Long Term Growth
Strategic Initiatives & Long Term Growth Topics 1. Expand Key Accounts & Leverage Recurring Revenues 2. Industry Investment & Growth into the Renewables Market 3. Realise the Benefits of Actions Taken 4. Targeted Acquisitions & Restoring the Dividend Verbrec Investors Presentation 2023
Slide 28: Expand Key Accounts and Leverage Recurring Revenues
Strategic Initiatives & Long Term Growth Expand Key Accounts and Leverage Recurring Revenues Major Clients • Key Accounts bring increased revenue, stronger relationships, higher customer satisfaction, cross-selling opportunities, strategic partnerships, competitive advantage and long-term stability
Slide 29: Growth into the Renewables Market
Strategic Initiatives & Long Term Growth Growth into the Renewables Market • Follow the trend, and leverage our core competencies to increase our market share in strategically attractive areas, such as, batteries, renewable generation, connection modelling, transmission and distribution. • Verbrec i
Slide 30: Realise the Benefit of the Actions Taken
Positioning Strategic Initiatives for Long-Term & LongGrowth Term Growth Realise the Benefit of the Actions Taken • Improve cash position by continuing to take measures as required in FY2024 in order to close the gap between statutory and underlying EBITDAI and return to profitability, including: •
Slide 31: Targeted Acquisitions & Restoring the Dividend
Positioning Strategic Initiatives for Long-Term & LongGrowth Term Growth Targeted Acquisitions & Restoring the Dividend When the cash position is improved and the ongoing actions are further progressed, when prudent to do so… • Return to strategic M&A by targeting acquisitions which fit our client’s
Slide 32: Concluding Remarks and Q&A
Concluding Remarks and Q&A Verbrec Investor Presentation 2023
Slide 33: Verbrec contact details
OSverbrec evolution engineered +61 7 3058 7000 verbrec.com Through strong relationships built on trust, we transform assets and people. “Transforming assets for a sustainable and smarter future”
Slide 34: Appendix: Project and Product Highlight
Appendix: Project and Product Highlight Topics 1. Long Duration Battery Energy Storage Concept Studies 2. Verbrec Supporting Construction of Australia’s First LNG Import Terminal 3. New Seawater Desalination Plant Project In South Australia 4. Pre-feasibility Study Of Mid-West Shared Infrastructure
Slide 35: Australian First Battery Trial
Project and Product Highlight Australian First Battery Trial – Long Duration Battery Energy Storage Concept Studies Verbrec has been 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
Slide 36: Verbrec Supporting Construction of Australia's First LNG Import Terminal
Project and Product Highlight Verbrec Supporting Construction of Australia’s First LNG Import Terminal Verbrec is supporting a major energy distributor’s construction of Australia’s first LNG import and regasification terminal located at Port Kembla New South Wales. The terminal will consist of a pe
Slide 37: New Seawater Desalination Plant Project In South Australia
Project and Product Highlight New Seawater Desalination Plant Project In South Australia Verbrec has been engaged to deliver the electrical, instrumentation and controls engineering, relating to the supply, manufacture, installation and commissioning of the new Penneshaw Desalination Plant 2 and new
Slide 38: Gobe End of Field Life
Project and Product Highlight Gobe End of Field Life Verbrec delivered a FEED study for a major oil an gas company, together with several sub-contractors and specialists to consider the end-of-life decommissioning and rehabilitation of a conventional oil and gas field in PNG. The Study considered de
Slide 39: Pre-feasibility Study Of Mid-West Shared Infrastructure
Project and Product Highlight Pre-feasibility Study Of Mid-West Shared Infrastructure Awarded by the Australian Gas Infrastructure Group (AGIG), the study currently underway, will develop a costing model associated with the development of infrastructure for the export of iron ore, from the Yilgarn r
Slide 40: Energy Efficiency Study of Beach's NZ Operations
Project and Product Highlight Energy Efficiency Study of Beach’s NZ Operations Beach is the operator of the Kupe Natural Gas Processing Plant which produces gas from the Kupe Field, situated approximately 30 km offshore of New Zealand’s North Island. Kupe is critical to the country’s energy infrastr