Verbrec Ltd · ASX:VBC
Verbrec — Investor Presentation (May 2024)
40 slides from Verbrec's investor presentation, May 3, 2024
Slide 1: ASX Announcement: Verbrec Investor Roadshow and Presentation
ASX Announcement 3 May 2024 Verbrec Investor Roadshow and Presentation Verbrec Limited (ASX : VBC) (Verbrec or the Company) a leading engineering, project, training and mining technology service provider that supports customers across Australia, New Zealand, Papua New Guinea and beyond is pleased to
Slide 2: About Verbrec Limited
Authorised for release by the Board of Directors of Verbrec Limited. Company Enquiries Investor Relations Media Enquiries Mark Read Joel Voss Joel Voss Chief Executive Officer Company Secretary Company Secretary Mark.Read@verbrec.com Investors@verbrec.com Investors@verbrec.com About Verbrec Limited
Slide 3: Enabling a sustainable future for our Clients and their Customers
For personal use only Enabling a sustainable future for our Clients and their Customers 1
Slide 4: 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 For personal use o
Slide 5: Recognised Partner for a Sustainable Future
For personal use only Recognised Partner for a Sustainable Future Through strong relationships, built on trust Verbrec enables a sustainable future for our Clients and their Customers.
Slide 6: Verbrec Overview
Verbrec Overview Structured for Profitable Growth through the Energy Transition in Australia, NZ, PNG and the Pacific Islands For personal use only 4 Divisions across an Well-Positioned to Asset Lifecycle from 3 Core Markets are capture the Growing Growing Margins & Initial Concepts to critical for
Slide 7: Enabling the Evolving Energy Landscape: Our Capabilities
Enabling the Evolving Energy Landscape Our Capabilities For personal use only 3 CORE MARKETS ENERGY MINING INFRASTRUCTURE 400 TEAM MEMBERS 3 TRANSITION MARKETS GAS MARKET SUSTAINABLE ELECTRIFICATION / TRANSITION MINING ENERGY STORAGE
Slide 8: Turn Key Services for the Full Asset Lifecycle
Turn Key Services for the Full Asset Lifecycle For personal use only 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 Ope
Slide 9: The Verbrec Advantage
The Verbrec Advantage For personal use only 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 enabl
Slide 10: Our valued Relationship Clients
Our valued Relationship Clients For personal use only Infrastructure & Defence Mining & Minerals 12 KEY ACCOUNTS 43 MULTI-YEAR PANEL AGREEMENTS Energy & Utilities Energy & Utilities 12 MULTI-YEAR OPERATIONS CONTRACTS
Slide 11: The three pillars of our Growth Strategy
The three pillars of our Growth Strategy For personal use only 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 & incr
Slide 12: Renewed Strategy & Sustainability Growth Focus Areas
For personal use only Renewed Strategy & Sustainability Growth Focus Areas
Slide 13: Our Strategy
The Evolving Energy Landscape Our Strategy For personal use only 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
Slide 14: Our Focus
The Evolving Energy Landscape Our Focus For personal use only 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 commoditi
Slide 15: Market Opportunity: Energy Transition Australia
The Evolving Energy Landscape Market Opportunity For personal use only 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 t
Slide 16: Market Opportunity
The Evolving Energy Landscape Market Opportunity 70 18 200 16 For personal use only 60 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, technologi
Slide 17: Electrification & Energy Storage
Electrification & Energy Storage Market Opportunity 1 Demand 2 Sustainability Drivers For personal use only ▪ 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 pr
Slide 18: Gas Market Transition
Gas Market Transition Market Opportunity 1 Demand 2 Sustainability Drivers For personal use only ▪ 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
Slide 19: Sustainable Mining
Sustainable Mining Market Opportunity 1 Demand 2 Sustainability Drivers For personal use only ▪ 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, wh
Slide 20: Verbrec is already Capturing the Opportunity
Verbrec is already Capturing the Opportunity 17% 31% For personal use only 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 Mi
Slide 21: From mid-tier engineering provider to Recognised Partner
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 For personal use only Pre-feasibility Study Of Mid-West Shared Infrastructure
Slide 22: Verbrec Business Units
For personal use only 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 23: Verbrec Business Units: Engineering
Verbrec Business Units Engineering For personal use only 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 A
Slide 24: Snapper Point EPC – Transformative Sustainable Project
Case Study Snapper Point EPC – Transformative Sustainable Project For personal use only 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 (P
Slide 25: Broadlands Biogas Upgrade
Case Study Broadlands Biogas Upgrade For personal use only 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 include
Slide 26: Australian First Battery Trial - Long Duration Battery Energy Storage
Case Study Australian First Battery Trial - Long Duration Battery Energy Storage For personal use only 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
Slide 27: Verbrec Business Units: Asset Management
Verbrec Business Units Asset Management For personal use only 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
Slide 28: Hydrogen to Green Ammonia RAM Study
Case Study Hydrogen to Green Ammonia RAM Study For personal use only 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 d
Slide 29: Verbrec Business Units: Infrastructure Services
Verbrec Business Units Infrastructure Services For personal use only 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
Slide 30: Shoalhaven Starches Bomaderry Gas Pipeline
Case Study Shoalhaven Starches Bomaderry Gas Pipeline For personal use only 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 th
Slide 31: Verbrec Business Units: Competency Training
Verbrec Business Units Competency Training For personal use only 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 Mar
Slide 32: Accredited IECEx Certifier with International Reach
Case Study Accredited IECEX Certifier with International Reach For personal use only Project Overview Competency Training is an accredited IECEx Certification Body within the IECEx Certification of Personnel Competencies. Through partnerships with several international organisations, Competency Trai
Slide 33: Verbrec Business Units: StacksOn
Verbrec Business Units StacksOn For personal use only 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 fee
Slide 34: BHP Ship Tonnes Faster - Improving Operational Efficiency
Case Study BHP Ship Tonnes Faster - Improving Operational Efficiency For personal use only 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 t
Slide 35: Verbrec Financials & Outlook
For personal use only 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 36: H1 FY2024 Financial Commentary
H1 FY2024 Financial Commentary H1 H1 Change FY2024 FY2023 to PCP H1 FY2024 For personal use only 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 % • Ope
Slide 37: H1 FY2024 Commitment Checklist
H1 FY2024 Commitment Checklist STATUS For personal use only 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 a
Slide 38: H1 FY2024 Financial Highlights
H1 FY2024 Financial Highlights 35.00% 10.00% $50.00 For personal use only 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
Slide 39: Outlook & Summary
Verbrec Outlook & Summary For personal use only 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 margi
Slide 40: Investor Relations & Media Enquiries
For personal use only Investor Relations & Media Enquiries Joel Voss Company Secretary Investors@verbrec.com Company Enquiries Mark Read Chief Executive Officer Mark.Read@verbrec.com