Verbrec Ltd · ASX:VBC
Verbrec — FY2022 Earnings Presentation
23 slides from Verbrec's earnings presentation, Aug 30, 2022
Slide 1: FY22 Results Presentation
FY22 Results Presentation August 2022
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: Executive Summary
Executive Summary 1. Key Messages 2. Corporate Profile 3. FY22 Results 4. Strategic Initiatives and Growth Strategy 5. Appendix Demolition and rehabilitation of the Gobe Oil & Gas field, PNG Page 3
Slide 4: 1. Key Messages
1. Key Messages evolution engineered
Slide 5: Key Messages
Key Messages FY22, a year of transition and delivering on our Purpose ▪ A transitional year, moving from legacy project impacts to record, higher margin work-in-hand, as evidenced by • 32.1% increase in Gross Profit to $35.4m Infrastructure Services • 900% increase in EBITDAI1 to $3.0m • $4.3m impro
Slide 6: 2. Corporate Profile
2. Corporate Profile evolution engineered
Slide 7: About Verbrec
About Verbrec 3 Industries 1 Purpose Through strong relationships built on trust we transform assets and people Transforming assets for a sustainable and smarter future Resources Energy Infrastructure 16 Locations 863 Team Members 3 Services ▪ Asset ▪ High Risk ▪ Pipeline & Management ▪ Hazardous Ar
Slide 8: Core Markets
Core Markets Verbrec provides services across diversified markets each undergoing significant transformation and creating substantial opportunities. Labour shortages are also creating opportunities for labour forces to retrain via Verbrec’s training business. Mining & Minerals Infrastructure Energy
Slide 9: 3. FY22 Results
3. FY22 Results evolution engineered
Slide 10: Safety Performance
Safety Performance Safety Performance 10 8 6 4 2 0 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY22 LTIFR MTIFR TRIFR ▪ Outstanding LTIFR performance, increase in medical treatment and recordable work injuries • Business evolving with acquisitions of EIM and Site Skills, changed safety risk profile. Strong
Slide 11: FY22 Operating Highlights
FY22 Operating Highlights Zero harm 0 nil lost time injury Revenue $121.4m for FY22 up 24.6% from PCP Work-in-hand $77.4m at historically high levels One Meaningful Purpose 1 investment in energy transformation evident, 55% of FY22 revenue from Energy Increase in contract value $6.7m including miles
Slide 12: FY22 Financial Performance
FY22 Financial Performance Change 24.6% increase in Revenue FY22 FY21 to PCP 32.1% increase in Gross Profit Revenue ($) 121.4m 97.4m 24.0m 900% increase in EBITDA Gross Profit ($) 35.4m 26.8m 8.6m Results consistent with record work-in-hand; full year impact of EIM and Site Skill’s Gross Margin % 29
Slide 13: FY22 Margin Analysis
FY22 Margin Analysis FY22 margin improvement plan executed (source FY21 results investor presentation) Review of our project delivery systems ✓ Revamped project delivery system conducted, recommendations being implemented implemented by taskforce Tighter controls over pricing and bid ✓ Risk pricing
Slide 14: Underlying Results Confirm Rebound
Underlying Results Confirm Rebound Margins improving after add back of three poor performing legacy projects Mitigating impacts of Legacy Projects $m’s H1FY21 H2FY21 H1FY22 H2FY22 ▪ 2 of 3 legacy poor performing projects completed during FY22 $70.00 ▪ Successfully pursued claims on 2 of 60.6 60.8 th
Slide 15: Cash Analysis
Cash Analysis Investment in growth and repayment of debt Cash Movement FY21 to FY22 ($m) ▪ Rebound in operating cash flow, significant improvement in 2HFY22 • Full year $3.1m inflow, as compared to ($1.6m) outflow in FY21 • Exceptional cashflow performance, full-year EBITDA to OCFBIT conversion of 1
Slide 16: 4. Strategic Initiatives & Growth Strategy
4. Strategic Initiatives & Growth Strategy Page 16
Slide 17: Delivering on our Growth Strategy
Delivering on our Growth Strategy Growth focussed on expanding existing capabilities in key markets whilst at same time adding scale and increasing exposure to recurring and non-project revenues 01 02 03 Maximise returns from core business Expand existing Capabilities in Key Markets Improve our sust
Slide 18: Key Growth Drivers
Key Growth Drivers Organic Growth Significant investment in our key markets particularly in relation to Energy and Digital transformations ▪ Three-pronged energy strategy supporting clients Revenue by Industry Sector • Provide Today’s Energy Needs • Transform Infrastructure To Process And Transport
Slide 19: Outlook
Outlook Our expertise in control systems, grid connections and pipelines, uniquely positions Verbrec to play an important role in transforming Correlation between Work-in-hand assets for a more sustainable and smarter future. and Revenue ($m's) ▪ Work in hand remains at historical highs, as of Augus
Slide 20: 5. Appendix
5. Appendix evolution engineered
Slide 21: Corporate Snapshot
Corporate Snapshot Share Price Performance1 Capital Structure ASX code VBC Market Cap (as at 25 August 2022) $26.6m Share price (as at 25 August 2022) $0.12 Shares on issue 221.5m Cash (as at 30 June 2022) $6.4m Net Cash Position2 (as at 30 June 2022) $5.7m Top 5 Shareholders Brian O’Sullivan 31.3%
Slide 22: Board of Directors
Board of Directors Philip Campbell Brian O’Sullivan Linton Burns Matthew Morgan Sarah Zeljko Non-Executive Chairman Non-Executive Director Managing Director Non-Executive Director Non-Executive Director Phillip joined Verbrec in October 2019 As the former founder and Chairman Linton has over 25 year
Slide 23: OQverbrec
OQverbrec