Dug Technology Ltd · ASX:DUG
Dug Technology — Investor Presentation (October 2024)
34 slides from Dug Technology's investor presentation, Oct 17, 2024
Slide 1: DUG Technology: Equity Raise | Accelerating Growth
DUG Technology Equity Raise | Accelerating Growth October 2024 dug.com 1
Slide 2: Contents
Contents 1 Highlights 3 2 Equity Raising Overview 5 3 Recent Highlights & Outlook 9 4 Operational overview 12 Appendix A Key Risks 22 Appendix B International Offer Restrictions 26 Appendix C Disclaimer 29 dug.com 2
Slide 3: What We Do
What We Do High Performance Geo-Services Geo-Software Computing (HPC) o Elastic Multi-parameter Full Waveform Inversion (MP-FWI) o DUG Insight. A data analytics software o DUG HPCaaS o Acoustic MP-FWI package for the Oil & Gas industry o Powerful, bare-metal compute and o Conventional seismic proces
Slide 4: Investment Highlights
Investment Highlights Track record: 21-year revenue growth story including in a declining exploration market. Well positioned to take advantage of any lift in global oil & gas exploration spend over the next 3 years. Growing verticals: Services, Software and HPC segments have grown YoY coming out of
Slide 5: Equity Raising Overview
Equity Raising Overview dug.com 5
Slide 6: Use of funds | Capital raising to accelerate DUG's growth
Use of funds | Capital raising to accelerate DUG’s growth DUG has identified 3 key levers for near-term growth Use of funds (A$m) o Elastic MP-FWI projects are imminent with several of DUG’s key clients o DUG has built long lead-time data centres (DC), and is now seeking to expand moderate lead-time
Slide 7: Offer Summary
Offer Summary ~A$35.0 million equity raising o ~A$30.0 million non-underwritten placement comprising: ‒ A$30.0 million unconditional placement (“Tranche 1”) of approximately 15.8 million new fully paid ordinary shares (“New Shares”) under ASX Listing Rule 7.1 Offer Size and Structure ‒ A$0.2 million
Slide 8: Indicative Timetable
Indicative Timetable Event Indicative Date1 Trading halt commences and Offer opens Wednesday, 16 October 2024 Record date of the SPP Wednesday, 16 October 2024 Trading halt lifted and announcement of results of Offer Thursday, 17 October 2024 Opening date of the SPP Friday, 25 October 2024 Settlemen
Slide 9: Recent Highlights & Outlook
Recent Highlights & Outlook dug.com 9
Slide 10: Recent Highlights
Recent Highlights o FY24 results demonstrated outstanding organic growth, driven by the Services segment o MP-FWI Imaging uptake is gathering pace with 33% of FY24 revenue delivered through MP-FWI Imaging projects. Companies continue to be excited with continued improvement in imaging results. DUG h
Slide 11: Q1-FY25 trading update and outlook
Q1-FY25 trading update and outlook o Trading update Q1-FY25 ‒ Revenue of ~US$14m, with Q1 wins sufficient to maintain the order book of US$35.4m at 30 September 2024 ‒ EBITDA margin expected in the range of 18-19%, driven by seasonally lower revenue and margin sales mix, and additional investment in
Slide 12: Operational Overview
Operational Overview Five groups of Adacen customers (who deliver solutions to a number of DoD and government agencies) visited the prototype DUG Nomad at the Adacen Data Center in Silver Spring, Maryland. Adacen is our channel partner in the US. dug.com 12
Slide 13: MP-FWI Imaging: A decade of R&D delivering
MP-FWI Imaging: A decade of R&D delivering Conventional imaging o DUG has invested in R&D for close to a decade to develop MP-FWI imaging for the oil & gas industry. o DUG is the only vendor (that we are aware of) offering production ready MP-FWI imaging to the oil & gas industry. DUG believes it is
Slide 14: MP-FWI Imaging: Future of seismic data processing & imaging
MP-FWI Imaging: Future of seismic data processing & imaging o MP-FWI imaging can completely replace traditional seismic processing & imaging (P&I) ‒ It produces all the traditional P&I outputs. ‒ Since the outputs are derived in the kernel of the inversion, based on physical principles, they are acc
Slide 15: MP-FWI: Proven technology
MP-FWI: Proven technology “MP-FWI has improved the deep imaging “Results from a shallow water to a point where we are now able to environment indicate that MP-FWI generate a new structural and fault from raw shots provides useful interpretation that is consistent with the information for AVA analysi
Slide 16: Elastic MP-FWI Imaging: A seismic shift in the industry
Elastic MP-FWI Imaging: A seismic shift in the industry o DUG is continuing to undertake R&D on MP-FWI imaging. DUG Conventional imaging debuted Elastic MP-FWI Imaging at the IMAGE ‘24 conference in August with an incredible reception. o Elastic MP-FWI Imaging is major technological advancement as i
Slide 17: DC infrastructure: Capitalising on technological leadership
DC infrastructure: Capitalising on technological leadership It is now time to capitalise on the technology-leapfrogging opportunity that has been created. o Accelerated growth opportunities are coming on the back of elastic MP-FWI imaging. o DUG’s capital strategy is: a. Build long lead-time data ce
Slide 18: DUG Nomad: A high-density, modular data centre
DUG Nomad: A high-density, modular data centre o DUG Nomad has been designed to be plug-and-play, rugged, and low-maintenance. DUG has talked to clients about many different edge locations: ‒ On a seismic acquisition crew in the Saudi Arabian desert. ‒ In the car park of a major Oil & Gas company wh
Slide 19: DUG Nomad: Capitalising on momentum
DUG Nomad: Capitalising on momentum o DUG Nomad was soft-launched in 2023 to gauge market appetite. ‒ Two prototypes have been produced. One is now in Australia, and the other in the US for conferences and customer demonstrations. ‒ Actively engaging in conversations with energy sector clients acros
Slide 20: Middle East: The groundwork is set
Middle East: The groundwork is set o DUG has had a presence on the ground in the Middle East since January 2024. o Prior to this time DUG had a significant business in the region based on opportunities presented to and serviced out of our Houston and London offices. DUG’s traditional P&I technology
Slide 21: Global footprint
Global footprint U Kuala Lumpur 36 PF comp. 37 PB storage 3 PF compute 6 PB storage o > TO KUALA LUMPUR TO HOUSTON DUG global network Connection to AARNet PF double-precision petaflops BRUCE 6 PF compute 9 PB storar PB _ petabytes of storage ©) DUG HPC locations @ OU project locations dug.com 21
Slide 22: Key Risks
Key Risks dug.com 22
Slide 23: Key Risks
Key Risks Vertical & New Market Expansion As the company expands into new international markets and pursues vertical integration by adding new stages of the supply chain or offering additional services, there are risks that delays in product development or market adoption could hinder the generation
Slide 24: Key Risks
Key Risks Cyber Security and Data Privacy Cyber security is one of DUG’s highest priorities; safeguarding client data and maintaining system integrity is of utmost importance. As a provider of analytical software and big-data services, the company is exposed to significant cybersecurity threats, inc
Slide 25: Key Risks
Key Risks Intellectual Property DUG holds patents and has patents pending to support key innovations, including the innovative immersion cooling system, and software solutions. There is a risk of competitors, customers, or third parties copying DUG's intellectual property in countries with less prot
Slide 26: International Offer Restrictions
International Offer Restrictions dug.com 26
Slide 27: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 28: International Offer Restrictions
International Offer Restrictions United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 20
Slide 29: Disclaimer
Disclaimer dug.com 29
Slide 30: Disclaimer
Disclaimer This presentation is dated 18 October 2024 and has been prepared by DUG Technology Ltd (the “Company” or “DUG”) in relation to a proposed placement of fully paid ordinary shares ("New Shares") in the Company to certain institutional and professional investors in Australia, New Zealand, Ho
Slide 31: Disclaimer
Disclaimer This presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of the Company. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on
Slide 32: Disclaimer
Disclaimer Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including risks associated with investments in private and publi
Slide 33: Disclaimer
Disclaimer To the maximum extent permitted by law, DUG and its Beneficiaries: (a) expressly disclaim any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of or reliance on information contained in this presentation
Slide 34: dug.com contact details
dug.com facebook.com/TeamDUG linkedin.com/company/teamdug twitter.com/Team_DUG youtube.com/dugtechnology info@dug.com +618 9287 4100 dug.com 34
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