Bhagwan Marine Ltd. · ASX:BWN
Bhagwan Marine — H1 2025 Earnings Presentation
37 slides from Bhagwan Marine's earnings presentation, Feb 28, 2025
Slide 1: Bhagwan Marine
S BHAGWAN" marine
Slide 2: 1H25 Results Presentation
1H25 Results Presentation 28 FEBRUARY 2025 2
Slide 3: Important Notice and Disclaimer
I M P O RTA N T N OT I C E A N D D I S C L A I M E R Authorisation of Release: This ASX Announcement has been approved for and therefore may not be comparable to similarly titled measures presented This presentation contains statements that are subject to risk factors release by the Board of Bhagwan
Slide 4: Presentation overview
Presentation overview 1. Company Overview 2. 1H25 Highlights 3. 1H25 Financial Performance 4. FY25 Outlook & Growth Opportunities 5. Appendix 4
Slide 5: Company Overview
Company Overview 5 | bhagwanmarine.com
Slide 6: Bhagwan Marine at a Glance
B H AG WA N M A R I N E AT A G L A N C E Supplied by fit for Operating under Bhagwan delivers purpose owned and stringent compliance and a strong four core services leased vessels safety culture 100 C. OFFSHORE PORT SUBSEA NEARSHORE SERVICES SERVICES SERVICES SERVICES VESSELS Powered by a strong wor
Slide 7: Australia's Largest ASX Listed Marine Services Company
A U S T R A L I A’ S L A R G E S T A S X L I S T E D M A RI N E S E RV I C E S CO M PA N Y Bhagwan Marine is a leading Listing Date 30 July 2024 ASX Code BWN marine solutions provider Share Price at 31 December 2024 $0.63 operating in the oil & gas, Shares on Issue 275.2m resources, civil constructi
Slide 8: Why Bhagwan
WHY BHAGWAN KEY STRENGTHS Founded in 2000 with extensive Founder led with a strong culture Largest listed Australian marine experience and capabilities. of service delivery and operational services company. excellence. Strong demand for services within Diversified revenue streams with a Large divers
Slide 9: 1H25 Highlights
1H25 Highlights 9 bhagwanmarine.com arine
Slide 10: 1H25 Operational Highlights
1 H 2 5 O P E R AT I O N A L H I G H L I G H T S DELIVERIN G O N GRO W T H ST RAT EGY MAINTAINED DIVERSIFIED GROWTH EXPANSION WITHIN NEW SAFETY FOCUS WITHIN CORE BUSINESS GROWTH SECTORS LTIFR1 0.89 - improved from 0.90 in 1H24. Strong performance across all industries Proven decommissioning expertis
Slide 11: 1H25 Financial Highlights
1H25 FINANCIAL HIGHLIGHTS STRONG CORE BUSINESS PERFORMANCE INCREASING CONTRIBUTIONS FROM GROWTH SECTORS 154.1M 27.3M 21.0M 11.5M RECORD RECORD NET CASH FROM NET REVENUE EBITDA1 OPERATIONS DEBT2 Up 41% on 1H24 Up 32% on 1H24 Up 64% on 1H24 30 June 2024 $81.4m $109.5m $20.6m $12.8m Proceeds from IPO a
Slide 12: 1H25 Financial Performance
1H25 Financial Performance 12
Slide 13: Record Revenue & Earnings
RECORD REVENUE & EARNINGS REVENUE UP 41% AND PRO FORMA EBITDA UP 32% ON 1H24 • Strong trend of revenue and earnings NET REVENUE PRO FORMA EBITDA2 growth • Strong performance across all 27.3 industries and areas of operation – 154.1 notably offshore and subsea • Oil & gas decommissioning project 20.6
Slide 14: Strong Performance Within Core Business
STRONG PERFORMANCE WITHIN CORE BUSINESS FULL & HALF YEAR PRO FORMA EBITDA BREAKDOWN SUMMARY Decommissioning 268.7 154.1 revenue • Decommissioning project Core revenue 26.4 65.4 contributed $91.9m in revenue and Gross Profit $9.9m in EBITDA (11% margin) over Administrative FY24 and 1H25 Expense & Oth
Slide 15: Cash Conversion
CASH CONVERSION ST RO N G O PERAT IN G CA SH F LO W Statutory Cash Flow 1H25 1H24 Change • 64% increase in operating cash flow from: $ Million Actual Actual % o Higher EBITDA o Lower interest charges Statutory EBITDA 26.6 21.0 27% o Strong focus on working capital Interest and finance costs (0.5) (4
Slide 16: Capital Expenditure
C A P I TA L E X P E N D I T U R E DISC IPLIN ED A PPROAC H TO CA PITA L A LLO CAT IO N • 10-year dry docking and capability upgrade of largest vessel ($6.7m). $2.8m growth and $3.9m sustaining capex Capital Expenditure Detail 1H25 1H24 • New tug for Dampier Port operations $ Million Actual Actual •
Slide 17: Delevered Balance Sheet
DELEVERED BALANCE SHEET ABILITY TO PURSUE ORGANIC AND ACQUISITIVE GROWTH OPPORTUNITIES Statutory Balance Sheet 1H25 FY24 Change • Focus on working capital management $ Million Actual Actual % • Net debt to equity ratio 7% including operating leases Net working capital 4.8 2.8 71% • Net financial ass
Slide 18: 1H25 Outlook & Growth Opportunities
1H25 Outlook & Growth Opportunities 18
Slide 19: Positive Long Term Industry Outlook
POSITIVE LONG TERM INDUSTRY OUTLOOK S U P P LY D E M A N D I M B A L A N C E E X P E C T E D T O S U P P O R T H I G H E R R AT E S OSV GLOBAL UTILISATION OSV RATE INDEX Data at start AHTS 4,000+ BHP PSV > 1,000 DWT Jan 2005 = 100 AHTS PSV 110% 190 90% 70% 140 50% 90 30% 40 2013 2014 2015 2016 2017
Slide 20: Building for a Strong FY25
BUILDING FOR A STRONG FY25 INCREASING DEMAND ACROSS ALL REGIONS AND SECTORS Western Australia: Expansion and diversification opportunities within the larger vessel market. Increasing enquiries emerging for defence sector services at the Henderson Marine Precinct Northern Territory: Ongoing contracts
Slide 21: Compelling Growth Segments
COMPELLING GROWTH SEGMENTS L EV E RAG I N G E X P E RI E N C E A N D CA PA B I L I T I E S W I T H I N CO RE B U S I N E S S Decommissioning Offshore Wind Defence Maintenance Larger Vessel Market • Maturing of Australia’s • Early stage growing market • Renewed focus on marine • Ageing offshore asset
Slide 22: Commercial Completion of Large Decommissioning Project in 2Q25
COMMERCIAL COMPLETION OF C A S E S T U D Y: LARGE DECOMMISSIONING PROJECT IN 2Q25 Large-scale offshore decommissioning project in the northwest of Australia with multi-national oil & gas company 9 platforms at depths of up to 20m • First offshore decommissioning project for Bhagwan as a Tier 1 provi
Slide 23: Strong Outlook for Decommissioning
STRONG OUTLOOK FOR DECOMMISSIONING PROVEN EXPERIENCE STRENGTHENS BHAGWAN’S POSITION IN THIS SECTOR NORTHERN TERRITORY AND WESTERN AUSTRALIA POTENTIAL DECOMMISSIONING PIPELINE 35 6,076 km 483 Platforms Pipelines and Subsea lifts Static umbilicals 11 120 548 Floating Flexible Wells to be NT facilities
Slide 24: Strong Outlook for Defence
STRONG OUTLOOK FOR DEFENCE B H AGWA N H A S A ST RAT EGIC PRESEN C E IN K EY DEF EN C E H U B S FAC I L I T Y AT HENDERSON MARINE P R E C I N C T, W A 24
Slide 25: Innovation: Investing in the Future
I N N OVAT I O N : I N V E ST I N G I N T H E F U T U R E C A S E S T U D Y: • First vessel capable of remote operation in Australia of this size 26m inspection vessel • Vessel significantly enhances safety and reduces operational costs Remotely operated with ROV system • Commenced paid trial in 2Q2
Slide 26: FY25 Outlook & Focus Areas
FY25 OUTLOOK & FOCUS AREAS DRIVIN G ST RAT EGIC PRIO RIT IES Safety and service Ongoing contracts with Diversified opportunities Increasing enquiries delivery major global energy with the subsea sector emerging for defence companies in the sector services at the Northern Territory Henderson Marine P
Slide 27: Summary – Building for a Strong FY25
SUMMARY – BUILDING FOR A STRONG FY25 FOCU SED ON DELIVERIN G SU STAIN ABLE EARN IN GS GROWTH FOR SHAREHOLDERS RECORD HALF YEARLY REVENUE AND EARNINGS STRONG PERFORMANCE WITHIN CORE BUSINESS AND VERY STRONG PIPELINE FOR TENDERING ACTIVITY EXPANSION WITHIN NEW GROWTH SECTORS AND FUTURE OPPORTUNITIES C
Slide 28: Appendix
Appendix BHAGWAN® 28 marine
Slide 29: Board and Management
Board and Management BHAGWAN" 29 | bhagwanmarine.com marine
Slide 30: Bhagwan Board
BHAGWAN BOARD Anthony Wooles Loui Kannikoski Tracey Horton AO Andrew Wackett Chairman and Managing Director and Independent Executive Director Non-Executive Director Chief Executive Officer Non-Executive Director Finance Appointed Chair on 8 March 2012 Founded and managed Appointed as Independent Ap
Slide 31: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Kerren Kannikoski Cheryl Williams Daniel Shields Grant Bedford General Manager, CFO and Company General Manager, General Manager Corporate Services Secretary QHSE Commercial Co-founder of the business Joined in 2018 Joined in 2024 Joined in 2023 and commenced in 2000 Expe
Slide 32: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Peter Carmichael Kevin Clifford Gregory Standish Tom Kannikoski Luke Morand General Manager, General Manager, General Manager, General Manager, General Manager, Corporate and Strategic East Coast Operations Subsea West Coast Operations Northern Territory Development Joine
Slide 33: Detailed Profit and Loss
D E TA I L E D P R O F I T A N D LO S S Pro Forma Profit and Loss H1 FY25 H1 FY24 Change $ Million Pro Forma Pro Forma % Gross revenue 163.3 109.5 49% Pass through revenue (9.2) - Net revenue 154.1 109.5 41% Net cost of sales (110.5) (74.7) 48% Gross profit 43.7 34.8 26% Administrative expense (16.4
Slide 34: Reconciliation of Statutory EBITDA to Pro Forma EBITDA
R E C O N C I L I AT I O N O F STAT U TO RY E B I T DA TO P R O F O R M A E B I T DA • Administrative expense was increased in Reconciliation of Statutory EBITDA to Pro Forma EBITDA H1 FY25 H1 FY24 Change 1H24 by $0.6m to reflect the estimated $ Million Actual Actual % extra costs that Bhagwan would
Slide 35: Reconciliation of Statutory NPAT to Pro Forma NPAT
R E C O N C I L I AT I O N O F STAT U TO RY N PAT TO P R O F O R M A N PAT Reconciliation of Statutory NPAT to Pro Forma NPAT H1 FY25 H1 FY24 Change $ Million Actual Actual % Statutory NPAT 8.8 4.4 102% Less: Additional administrative expenses - (0.6) Add: Transaction costs 0.7 0.2 Add: Finance cost
Slide 36: Bhagwan Marine
BHAGWAN™ marine
Slide 37: Level 3, St Georges Terrace
Level 3, 251 St Georges Terrace Perth WA 6000 T +61 8 94242300 E investor.relations@bhagwanmarine.com