Slide 1: FY21 Results Presentation
DUG Technology Ltd FY21 Results Presentation 31 AUGUST 2021
Slide 2: 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
Slide 3: FY21 highlights
FY21 highlights o Revenue of US$41.4m. o Underlying EBITDA of US$2.0m. o DUG Insight software revenue growth of 4% and deferred revenue growth of 9%. o Third party HPCaaS revenue growth of 145%. o Defined “Sales Areas” to add structure and focus to the sales force. o Having executed many contracts i
Slide 4: DUG from a helicopter
DUG from a helicopter DELIVERY SALES AREAS BUSINESS LINES PLATFORM MILITARY & SPACE SOFTWARE • Analytic software development • Algorithms and optimisation INDUSTRIALS • Scientific data processing and viz • DUG Insight in 36 countries RESOURCES HIGH-PERFORMANCE • Collaborative & client- COMPUTING (HP
Slide 5: Revenue model
Revenue model Revenue transition to higher margin product lines o SaaS desktop application o SaaS algorithms on HPC FOCUS o Recurring revenue. o Growth in FY21 of 4.4%. BUSINESS LINES o HPCaaS is sold under two main models: o Recurring storage and compute under a committed revenue model. For example
Slide 6: DUG’s global footprint & capacity
DUG’s global footprint & capacity 6
Slide 7: High-performance computing (HPC)
High-performance computing (HPC)
Slide 8: HPC is used everywhere
HPC is used everywhere “All areas of contemporary research require access to advanced computing capabilities such as big data, data science and HPC.” Professor Andrew Rohl, Head of the School of Electrical Engineering, Computing and Mathematical Sciences, Curtin University. HIGH-PERFORMANCE COMPUTIN
Slide 9: Precedents for HPC transition
Precedents for HPC transition o HPC is traditionally provided by government / public facilities o Pawsey and NCI for example. o Precedents exist for HPC being increasingly provided by commercial facilities: United Kingdom o In February 2021, the UK Met Office announced a move to the Cloud with a £1.
Slide 10: Third party HPCaaS revenue & signings
Third party HPCaaS revenue & signings US$’000 20 21 IPO RIL RIL R R 9 E E Y Y V V T T G G Y Y Y T T C C FEB FEB JUN JUN MA MA MA MA SEP SEP JUL JUL JUL NO NO 01 OC OC AU AU 20 20 DE DE AP AP E2 JAN JAN JUN Momentum continues to build with increasing diversity of sales areas 10
Slide 11: HPCaaS deployment of capital
HPCaaS deployment of capital o Long lead time data centre infrastructure is built upfront. HPC CAPACITY IN DOUBLE-PRECISION PETAFLOPS (PF) o Short lead time infrastructure and compute is deployed just-in- time (JIT) as demand dictates. 50 100 PF UPDATED PLANS PAWSEY BEYOND NCI CAPACITY UP TO 400 PF
Slide 12: 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 13: For example - The Harry Perkins Institute of Medical Research
For 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 14: 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 15: “Climate positive” is not just a marketing term
“Climate positive” is not just a marketing term o HPC is traditionally a big energy consumer with a big carbon footprint. o Science-aware professionals (aka clients!) are acutely aware of this. “Astronomers know all too well how precious and unique the environment of our planet is. Yet the size of o
Slide 16: The greenest power is the power you don’t use
The greenest power is the power you don’t use o DUG already offers arguably the greenest computing solution on the planet thanks to the patented DUG Cool immersion technology. A BIG DEAL! o Reduces power consumption by 51%! o 85% less synthetic refrigerants (man-made fluorinated gases). o Power-usag
Slide 17: A green-innovation investment
A green-innovation investment Solar and wind-generated power is inexpensive (especially in Geraldton). But in Geraldton, on average, there are 6 hours a day when the sun isn’t shining and the wind isn’t blowing. What to do then? Hydrogen Energy Storage Systems are one very green solution. The econom
Slide 18: Location matters
Location matters Why does DUG need another data centre in Geraldton when Houston still has capacity? o Australian HPCaaS clients’ data must remain in Australia – sovereign data security. o The Perth data centre is nearly at capacity. o Geraldton will provide climate-positive HPCaaS; the implications
Slide 19: FY21 results
FY21 results
Slide 20: EY, our new auditor
EY, our new auditor o EY have taken a much more conservative approach. o The impact of the restatement on the FY20 profit and loss is to increase revenue by US$0.2m and EBITDA by US$1.0m. o Following a review of the opening balance sheet, restatements have been made to prior periods. o Differing int
Slide 21: Software performance
Software performance o DUG Insight revenue increased by 4.4% YOY. Revenue (US#039;m) o Following reassessment of the revenue standard software is now being DUG Insight Polarcus OBP R&D Concessions COVID Relief recognised over time, instead of point in time. This removes the cyclicity 0.2 0.6 from previ
Slide 22: HPCaaS performance
HPCaaS performance o Explosive third party revenue growth, with increased momentum in H2: Revenue (US#039;m) o HPCaaS revenue up 145% YOY Third Party Inter-segment R&D Concessions COVID Relief 0.4 o Committed compute up 1537% YOY o Storage revenue up 97% YOY 0.3 0.3 0.2 17.3 0.2 o Key HPCaaS signings a
Slide 23: Services performance
Services performance Revenue (US#039;m) Services R&D Concessions COVID Relief o Revenue in this business line reflects a lingering COVID shadow. 1.0 o Services are slowly returning to normal but have been unpredictable. 2.0 1.7 o Headcount has reduced during the financial year from 188 to 164. 38.0 0.9
Slide 24: FY21 profit and loss
FY21 profit and loss Restated Restated Change o Total Income US$41.4m (FY20 US$49.6m). USD'm FY20 H1 FY21 H2 FY21 FY21 YOY o Software – DUG Insight growth 4% YOY Revenue Software - Insight 4.5 2.3 2.4 4.7 0.2 o HPCaaS growth 145% YOY with strong performance in H2 FY21 Software - OBP 1.8 0.3 0.2 0.5
Slide 25: FY21 balance sheet
FY21 balance sheet Restated USD'm FY20 FY21 o Cash balance FY21 - US$10.0m (FY20: US$12.0m). Current Assets Cash and Cash Equivalents 12.0 10.0 o US$17.8m of current loans and borrowings at FY21 Trade and Other Receivables 7.2 6.0 Other 1.7 1.8 represents the term debt facility with CBA. Total Curre
Slide 26: FY21 cash flow
FY21 cash flow o Underlying cash utilised in operations in FY21 amounted to Restated USD'm FY20 FY21 US$0.6m and excludes non-recurring cash for redundancies and legal and settlement fees related to PGS. Statutory net cash flow generated from /(utilised in) operations 6.3 (2.8) o US$6.0m has been in
Slide 27: Investment highlights
Investment highlights o We live in a world of ever-increasing data needs and usage. o DUG delivers Big Data Solutions to industry and government. o With 30 PF of very green, very reliable HPC across a global footprint, DUG is taking non-oil & gas McCloud to the world. o Plans have been announced for
Slide 28: 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 28
Slide 29: Marketing
‘eliable, 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 our
Slide 30: About DUG
About DUG o DUG is an ASX listed technology company, headquartered in Australia, that specialises in analytical software development and reliable, green, high-performance computing (HPC). The company is built on a strong foundation of applied science and a history of converting research into practic
Slide 31: Corporate summary
Corporate summary Corporate Structure Board & Management Shares on Issue1 99,473,544 Wayne Martin AC QC Non-Executive Chairman Share Price (as at 26 August 2021) A$1.165 Matthew Lamont Ph.D. Managing Director 12 Month Liquidity (volume of shares traded) 32,930,678 Louise Bower Non-Executive Director
Slide 32: Reach for the Sky
Reach for the Sky