Slide 1: H1FY22 Results Presentation
DURATEC LIMITED H1FY22 RESULTS PRESENTATION 28 FEBRUARY 2022
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Duratec Limited (ACN 141 614 075) ("Duratec", "Duratec Group" and the "Company"). The information contained in this presentation is for information purposes only. TThe information contained in this presentation is not investment
Slide 3: Duratec Overview
Duratec Overview Leading Australian engineering, construction and remediation contractor • Specialist technical expertise upgrading and extending the life and use of infrastructure in multiple market segments • Key Business Drivers: • Aged infrastructure, • Poor original construction (defects), • As
Slide 4: H1FY22 Summary
H1FY22 Summary First half involved operating challenges – but work on hand will drive stronger H2FY22 & FY23 results • Challenging H1FY22 • COVID-19 created logistical challenges in delivering projects, especially in NSW, Victoria and ACT • Wage/salary pressures and rising costs of materials and fre
Slide 5: Corporate Snapshot
Corporate Snapshot National leader with experienced board and management Capital Structure Share Price and Volume ASX Code DUR 0.6 9,000,000 8,000,000 Shares on issue 240.4m 0.5 7,000,000 Volume (M shares) Share price as at 23 February 2022 33.0c 0.4 6,000,000 Last Price (cps) Market capitalisation
Slide 6: Financial Results
Financial Results
Slide 7: H1FY22 Financial Results
HIFY22 Financial Results COVID impacted result in H1FY22, but strong work on hand and pipeline supporting strong H2FY22 & FY23 EPS Revenue1 EBITDA NPAT 0.29 cents per share $130.9m $5.0m $0.7m Dividend 0.50 cents per share Up 5.5% from PCP Margin 3.5% Margin 0.6% fully franked Order Book Tendered St
Slide 8: H1FY22 Financial Result
H1FY22 Financial Result COVID impacted result H1FY22 H1FY21 Variance • Financial performance adversely affected by COVID-19 project shut Revenue $130.9m $124.1m 5.5% downs on the east coast • Revenue up but lower margins due to: Reported EBITDA $4.6m $8.9m (48.0%) • COVID-19 related project producti
Slide 9: Revenue by Region
Revenue by Region1 Continued business diversification H1FY22 revenue up 5.5% compared to PCP Western Region1 $140 124.1 130.9 • Revenue steady compared to previous periods $120 111.6 • Several major projects were completed and revenue growth impacted by lull $100 63.2 70.0 49.6 prior to start of new
Slide 10: Revenue by Operating Segment
Revenue by Operating Segment Continued business diversification H1FY22 revenue up 5.5% compared to PCP Operating Segment $140 $130.9 • Defence: $124.1 $120 $111.6 $16.6 • Revenue increased by 19% compared with previous period with strong $27.1 $17.0 $27.0 $100 contributions from QLD and ACT $15.3 $2
Slide 11: DDR Australia Pty Ltd (DDR)
DDR Australia Pty Ltd (DDR) Continuing significant contributor DDR Revenue ($m) (100% of business) Equity accounted investment 49% owned by Duratec Provides meaningful work and training opportunities to Aboriginal and Total Revenue Torres Straits people $29.0 Leadership team strengthened by key appo
Slide 12: Operational Highlights
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Slide 13: H1FY22 Operational Highlights
H1FY22 Operational Highlights Strengthened the strategic platform for growth Two lost time injuries (LTI’s) from relatively minor hand and leg injury incidents Safe & Sustainable Operations Management of subcontractors and continuing hand safety campaigns are the focus Key market segments remain ver
Slide 14: H1FY22 Projects Delivery
H1FY22 Projects Delivery Key sector and project overview Core Service Offerings H1FY22 Projects Defence HMAS Cerberus building works, Duntroon heritage and air conditioning building works, Wagga RAAF base fuel station demolition, RAAF Point Cook refurbishment works, DEJV Armaments Wharf extension wo
Slide 15: Dedicated Defence Division
Dedicated Defence Division Key growth area with significant pipeline of opportunities • Market leader & incumbent provider • National coverage and strong local relationships • High barrier to entry, however, our base experience and presence increases opportunity Total Defence funding Model by Catego
Slide 16: HSECQ Overview
HSECQ Overview Working towards ZERO HARM Two Lost Time Injuries (LTI) recorded in H1FY22 • programs and initiatives are focusing on these risks Mental Health First Aid Training continuing to better equip team leaders Maintained federal Safety Accreditation Ongoing updating of Critical Control System
Slide 17: Market and Operational Outlook Summary
Market and Operational Outlook Summary Strong activity across key sectors supported by high work on hand Defence • Market forecast to be strong based on sustainment spending forecast to increase from circa $13b to circa $24b by FY30. DUR strategically well positioned to capitalise on opportunities M
Slide 18: Recap of recent major project awards
Recap of recent major project awards Strong platform for H2FY22 and FY23 growth • In line with strategic plans recent major project awards including: • Central Park Building façade recladding, $63m; • DEJV - HMAS Stirling, Oxley Wharf Extension, $53m; • Western Sydney International Airport, aviation
Slide 19: Outlook
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Slide 20: Orderbook and Pipeline
Orderbook and Pipeline Diversified across industry sector and geographies and growing Orderbook1,3 Tendered2 Identified Opportunities2 12% 20% 22% 35% 12% 4% $450.4m Excluding MSA’s of $550.9m $1.6b circa $40m pa 14% 53% 59% 17% 23% 29% Up from $113.1m at 24 February 2021 Down from $567.0m at 31 Jan
Slide 21: Review of Work on Hand
Review of Work on Hand Platform for continued growth – supported by pipeline • Defence and Energy showing strong growth • Current work on hand supported by recent major contract awards previously noted Work on hand $m 450.4 Sector 31-Jul-20 24-Feb-21 16-Aug-21 05-Jan-22 $m Defence 72.5 62.5 110.1 26
Slide 22: Positive Business Outlook
Positive Business Outlook Strategically well positioned for growth in H2FY22 & FY23 • A financial forecast is not provided due to uncertainties surrounding impact of COVID-19 but a strong H2FY22 is anticipated based on the work on hand and the pipeline of opportunities • Historically high work on ha
Slide 23: Appendices & Case Studies
APPENDICES & CASE STUDIES
Slide 24: Appendix - Financial Information Reconciliation
Appendix 1 - Financial Information Reconciliation Reconciliation of Statutory Reported results to Normalised results % Change % Change Reported EBITDA Reconciliation (#039;000) H1FY22 H1FY21 '21 Normalised EBIT – Reconciliation ($’000) H1FY22 H1FY21 '21 Profit before income tax 1,061 6,162 EBIT 1,430 6
Slide 25: Case Studies
Case Studies
Slide 26: Department of Defence – HMAS Stirling Armament Wharf Extension
Department of Defence – HMAS Stirling Armament Wharf Extension Marine construction completed Scope • Stage 1: A 156m long wharf extension to the existing Armament Wharf comprising a reinforced concrete wharf deck supported by steel driven piles, a berthing dolphin and two mooring dolphins. In additi
Slide 27: Central Park Project - Perth
Central Park Project - Perth Building & Facade refurbishment underway Scope • Full facade enhancement by way of removal of circa 26,000sqm of facade panels from the spandrel, columns, parapets and lift overrun zones. • Replacement of all facade panels introducing tonal colour variations of metallic