Dug Technology Ltd · ASX:DUG
Dug Technology — Investor Presentation (February 2022)
36 slides from Dug Technology's investor presentation, Feb 23, 2022
Slide 1: DUG Technology Ltd Investor Presentation February 2022
DUG Technology Ltd Investor Presentation February 2022
Slide 2: Highlights
Highlights o 46% increase in HPCaaS revenue (compared to H1 FY21) during a period of historic market uncertainty. o DUG has completed a significant restructure of the Services business line to increase operational performance which is already having impact. o The Company’s restructure has created ma
Slide 3: Corporate Summary
Corporate Summary Corporate Structure Substantial Shareholders Shares on Issue 118,123,387 Mr Matthew Lamont 20.4% Share Price (as at 18 February 2022) A$0.60 Perennial Value Management 14.9% Market Capitalisation (as at 18 February 2022) A$70.9m Mr Philip Imperial Schwan 6.1% Cash at Bank (as at 31
Slide 4: DUG Overview
DUG Overview SALES AREAS BUSINESS LINES DELIVERY PLATFORM MILITARY & SPACE SOFTWARE • Analytic software development • Algorithms and optimisation INDUSTRIALS • Data processing and visualization • DUG Insight in 36 countries RESOURCES HIGH-PERFORMANCE COMPUTING (HPCaaS) • Collaborative & client-focus
Slide 5: Revenue Model
Revenue Model DUG is targeting and achieving recurring revenue growth within its Software and HPC Business Lines o SaaS desktop application. o SaaS high-powered computing algorithms. o Recurring revenue. o DUG Insight growth of 10% in CY21. o HPCaaS is sold via two main models: o Recurring storage a
Slide 6: DUG's Global Footprint & Capacity
DUG’s Global Footprint & Capacity BUBBA WON THE 2019 ENTERPRISE DATA CENTRE DESIGN AWARD 6
Slide 7: Software
U “insight's a cracking piece of software!” “Karoon has invested in DUG Insight because we believe it to be the best solution for exploration requiring visualisation.” KAROON ENERGY BRETT wooDs RIALTO ENERGY LTD “1 can't imagine another piece of software where this would be so painless.” APACHE CORP
Slide 8: DUG Software Introduction
DUG Software Introduction o DUG’s software revolves around big data analysis; loading, random access storage, fusion, transfer, mining, signal processing and visualisation. o Secure data transfer, be it locally, nationally or internationally with compression and encryption options. o Signal processi
Slide 9: DUG Insight Software Overview
DUG Insight Software Overview DUG Insight workstation licenses for seismic interpretation o Client retention rates are very high year to date (> 95%) with a number of new clients also signing up and existing clients adding new modules. o Key growth areas are small to mid size companies and also cons
Slide 10: DUG Wave – Full Waveform Inversion
DUG Wave – Full Waveform Inversion DUG has developed breakthrough technology to reinvent the 3D seismic imaging process. o DUG’s industry-leading FWI research has delivered a breakthrough in seismic processing and imaging. o At high-frequencies, DUG’s simultaneous model- building and imaging FWI sol
Slide 11: DUG Wave – Full Waveform Inversion
DUG Wave – Full Waveform Inversion Conventional imaging – 9 months turnaround – ~20x more man time Conventional velocity model FWI imaging – 4 weeks turnaround – ~7x more computer time FWI velocity model BEX MC3D data courtesy of Multi-Client Resources 11
Slide 12: HPCaaS
HPCaaS 12
Slide 13: DUG HPCaaS Introduction
DUG HPCaaS Introduction High-performance computing as a service is more than just buying hardware. A true HPCaaS solution is: o Client-focussed: flexible provision of compute and storage that clients need to run their particular workloads. o An extremely reliable compute environment, which is up and
Slide 14: Third-party HPCaaS Revenue & Signings
Third-party HPCaaS Revenue & Signings The Company continues to build momentum 600 450 300 150 US$’000 14
Slide 15: Geraldton Project Update
Geraldton Project Update DUG has received planning approval and the Company is progressing through early-stage design and remedial activities at its HPC Geraldton Project in Western Australia KEMP ST GATE FEN1 SITE LEGEND DENOTES EXTENT OF BUILDING DENOTES EXTENT OF FUTURE BUILDING GENERAL NOTES FEN
Slide 16: For example - The SKA Project
For example - The SKA Project o The Square Kilometre Array (SKA) Project is one of the largest international scientific research projects in history. o The Murchison Widefield Array (MWA) telescope had amassed a backlog of data that was being processed using the Pawsey Supercomputing Centre. o DUG H
Slide 17: HPC Example - The Harry Perkins Institute of Medical Research
HPC Example - The Harry Perkins Institute of Medical Research The Harry Perkins Institute of Medical Research (“Perkins”) applies bioinformatics - a rapidly evolving field combining biology, computer science and mathematics - to tackle chronic diseases including cancer and rare genetic disorders. “W
Slide 18: DUG Has Signed Austal!
DUG Has Signed Austal! “DUG is an ideal partner for Austal, not only as an Australian-based high- performance computing service provider but one of the greenest in the world. Austal will be running computational analysis through DUG to improve the efficiency of our vessel designs and reduce their GH
Slide 19: Services
Services Traditional processing and imaging DUG Wave - FWI imaging Field data 1.3 km Deghosting Designature Field data Demultiple FWI Regularisation Model building Kirchhoff 1.9 km migration 19
Slide 20: DUG Services Introduction
DUG Services Introduction o Seismic data are used by resource companies to site exploration and production wells, and to monitor geological conditions (such as fluid movement) in the subsurface. o This is DUG’s traditional business, where over the last 18 years, significant intellectual property has
Slide 21: Services Business Line Restructure
Services Business Line Restructure A full review of the business line was completed in the The restructure was implemented in months Oct-21 and first quarter of H1 FY2022 and focused on: Nov-21 and the Company experienced significant improvement in Dec-21 and Jan-22: 1. Office space 1. Office space:
Slide 22: DUG's Security Journey
DUG’s Security Journey
Slide 23: Security Accreditation Progress
Security Accreditation Progress DUG has identified multiple business opportunities which require DUG to become formally accredited DUG hired a Chief Security Officer (CSO) and an Information Security Officer (ISO) in Q2 FY22 to improve the Company’s security and management systems, with the aim to a
Slide 24: Bryce Solomon – DUG CSO
Bryce Solomon – DUG CSO Born and bred in Perth, Bryce Solomon joined the Royal Australian Air Force (RAAF) in 1999. In the RAAF, he was an F/A-18 Classic Hornet pilot, Joint Terminal Attack Controller (JTAC), Hawk Qualified Flying Instructor (QFI), and F/A-18F Super Hornet QFI and Flight Commander.
Slide 25: DUG's Defence Progress
DUG’s Defence Progress DUG Shooting for Defence Engagement 1 Identified alignment with Australian SICPs, STaRShots, NGTF, and multiple Defence projects 2 Identified alignment with US CETs 3 DUG has received significant interest from numerous Australian Government Department counterparties 4 Submitte
Slide 26: DUG's Defence Progress – Ancillary Notes
DUG’s Defence Progress – Ancillary Notes o Sovereign Industry Capability Priorities (SICPs): Sovereign Industrial Capability Priorities are capabilities that are critical to Defence and must be developed or supported by Australian industry. This means Australia must have access to, or control over t
Slide 27: Financials
Financials
Slide 28: Software Performance
Software Performance Revenue and R&D Concessions The Software business line has continued its strong growth during a period (US$'m) of significant market turbulence. DUG Insight OBP R&D Concessions Inter-segment 0.3 o The flagship DUG Insight offering achieved significant growth in the 0.5 0.3 0.5 p
Slide 29: HPCaaS Performance
HPCaaS Performance The HPCaaS business line continues to build momentum with new client Revenue and R&D Concessions signings across diverse sales areas and record third party revenue reported in (US$'m) Third Party Inter-segment R&D Concessions January 2022. o The Company achieved 46% growth in thir
Slide 30: Services Performance
Services Performance Revenue and R&D Concessions (US$'m) The Services business line has shown signs of recovery after Covid-19 and Services R&D Concessions oil price uncertainty reduced customer demand for O&G services 0.9 o Although revenue declined by 32% YoY, earnings stabilised during H1 FY22 co
Slide 31: Profit and Loss
Profit and Loss Improving market conditions and restructure deliver USD'm US$'m Restated % Change % Change significant impact on H1 FY22 results. H1 FY21 H2 FY21 H1 FY22 1 HoH YoY Revenue and R&D Concessions o DUG generated 1.9% HoH growth in total revenue Software - Insight 2.3 2.3 2.8 20.2% 20.9%
Slide 32: Balance Sheet
Balance Sheet Debt repayment and restructuring strengthens net asset position. US$'m 30-Jun-21 31-Dec-21 1 Current Assets Cash and cash equivalents 10.0 11.2 o Cash balance in H1 FY22 - US$11.2m (FY21: US$10.0m). Trade and other receivables 5.9 6.3 Other 1.8 2.3 o The Company exercised a 5-year brea
Slide 33: Cashflow
Cashflow Net cash generated in H1 FY22 with return to positive operating cash generation expected in H2 FY22 US$'m H1 FY21 H2 FY21 H1 FY22 1 o Underlying cash utilised by operations (excluding one off restructure costs), amounted to US$1.5m in H1 FY22. Statutory net cash flow generated utilised in o
Slide 34: Marketing
Reliable, flexible and cost-effective on the outside. The power to save the world within! Our ‘DUG Cool’ immersion-cooling technology can help achieve your carbon reduction goals. By submerging our high-performance computing (HPC) hardware in an environmentally friendly dielectric fluid we reduce ou
Slide 35: Staying Connected
Staying Connected www.dug.com/dug-blog www.facebook.com/TeamDUG/ www.linkedin.com/company/teamdug www.twitter.com/team_dug investor@dug.com ( +61 (0)8 9287 4100 35
Slide 36: Disclaimer
Disclaimer This presentation has been prepared by DUG Technology Ltd ("DUG") based on information available as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision. Reliance sh
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