Slide 1: 1H FY23 Results Presentation
DURATEC LIMITED 1H FY23 RESULTS PRESENTATION 28 FEBRUARY 2023
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by Duratec Limited (ACN 141 614 075) ("Duratec", "Duratec Group" and the "Company"). The information contained in this presentation is for information purposes only. TThe information contained in this presentation is not investment
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT National leader with experienced board and management Capital Structure Share Price and Volume – 12 months ASX code DUR 5,000,000 $0.90 4,500,000 $0.80 Shares on issue 243.7m 4,000,000 $0.70 Volume (M shares) 3,500,000 Close Price ($) $0.60 Share price as at 27 February 2023 72.0c
Slide 4: Business Overview
BUSINESS OVERVIEW Leading Australian engineering, construction and remediation contractor What we do: Specialist technical expertise in upgrading and extending the life and use of infrastructure in multiple market segments. Key business drivers: • Aged infrastructure • Poor original construction (de
Slide 5: Business History
BUSINESS HISTORY Duratec’s Historic Growth $460m Average Annual FY23 Guidance $420m Growth Rate 32% Over 12 years 5 1H FY23 Financial Results - 28 February 2023
Slide 6: Financial Results
Financial Results Suewrec
Slide 7: 1H FY23 Financial Highlights
1H FY23 FINANCIAL HIGHLIGHTS Continuing to deliver strong growth Normalised Revenue1 NPAT Cash EBITDA² $228.5m $16.2m $7.8m $60.4m up 75% from PCP Margin 3.4% up 66% from PCP Margin 7.1% Interim Dividend Order Book Tendered EPS 3.25 cents per share 1.0 cent per share $529m $654m up 983% from PCP ful
Slide 8: 1H FY23 Financial Results
1H FY23 FINANCIAL RESULTS Building on a strong 2H FY22 result • Revenue of $228.5m¹, up 75% on the prior comparative period (PCP). 1H FY23 2H FY22 1H FY22 (PCP) PCP Movement PCP Movement • Normalised EBITDA² of $16.2m, up 238% on PCP. #039;000 #039;000 #039;000 #039;000 % • NPAT of $7.8m, up 981% on PCP. Revenu
Slide 9: Revenue by Region
REVENUE BY REGION Consistent growth in both regions Western Region1 Revenue by Region • Strong revenue growth experienced in the Western Region with an increase on PCP of 78% and an increase of 17% on 2H FY22. • Major contributors to 1H FY23 growth were: ▪ Central Park - Facade Refurbishment project
Slide 10: Revenue by Operating Segment
REVENUE BY OPERATING SEGMENT Major project awards provide strong contribution All operating segments have improved on PCP and 2H FY22 results. Revenue by Segment Defence • Significant revenue growth experienced with an increase on PCP of 104% and an increase of 40% on 2H FY22. 23.2 • Strong performa
Slide 11: EBITDA Performance
EBITDA PERFORMANCE Strong orderbook and quality revenue, driving a more stable underlying EBITDA performance Defence Half Yearly EBITDA Trend The Defence segment provided a significant contribution for the 1H FY23, as a result of 7.1% 18.0 9.0% strong revenue. Gross margin (GM) remained in line with
Slide 12: Operational Update
Operational Update
Slide 13: 1H FY23 Projects Delivered
1H FY23 PROJECTS DELIVERED Key sector and project overview Core Service Offerings 1H FY23 Projects Defence Oakey Swimming Pool Refurbishment, HMAS Albatross Childcare Centre, RAAF Richmond Hanger Refurbishment, Simpson Barracks Mess Refurbishment, RAAF Edinburgh Aviation Medicine Refurbishment, HMAS
Slide 14: HSECQ Overview
HSECQ OVERVIEW Working towards best practice • No Lost Time Injury (LTI) recorded in 1H FY23. • Safety Culture Committee is well established in the business and initiatives are being rolled out throughout the business. • Mental Health First Aid Training continues to be rolled out to better equip tea
Slide 15: Operational Update
OPERATIONAL UPDATE Strong activity across key segments Defence • Segment continued to perform well through 1H and strong contribution to the overall results. • Continued focus on diversified service offering. • Business' strategy of having several large-scale, longer-duration projects is being execu
Slide 16: DDR Australia Pty Ltd (DDR)
DDR AUSTRALIA PTY LTD (DDR) Significant contributor in FY22 • Equity accounted investment owned by Duratec (49%) and Hutcheson & Co Holdings Pty Ltd (51%). • Provides meaningful work and training opportunities to Aboriginal and Torres Strait Islander peoples. • Delivered $22.5m in Supply Nation-cert
Slide 17: Wilson's Pipe Fabrication Pty Ltd (WPF)
WILSON’S PIPE FABRICATION PTY LTD (WPF) High levels of enquiry and strong growth forecast 1H FY23 Highlights • Acquisition of 100% of Wilson’s Pipe Fabrication (WPF) on 20 October 2022. • Acquisition has given Duratec access to maintenance and remediation opportunities within the oil and gas market
Slide 18: Outlook
Outlook
Slide 19: Order Book and Pipeline
ORDER BOOK AND PIPELINE Diversified across industry sector and geographies, and growing Order Book Tenders Pipeline $529 $654 $2.04 million million billion Up from $450m Up from $550m Up from $1.6b at 24 February 2022 at 24 February 2022 at 24 February 2022 Defence Buildings & Facades Mining & Indus
Slide 20: Outlook & Guidance
OUTLOOK & GUIDANCE Platform for continued growth – supported by pipeline Outlook • Strong orderbook through an ability to efficiently capitalise on new opportunities. • Tenders remain stable at $654m, with good levels of enquiry across all market segments. • Geographic distribution supports Duratec’
Slide 21: Appendix
Appendix
Slide 22: RAFF Base Tindal - Aviation Re-fuelling Facility
RAFF Base Tindal - Aviation Re-fuelling Facility About Tindal • Located 15 kilometres outside of Katherine in the Northern Territory, RAAF Base Tindal (Tindal) is one of Australia’s most important Defence sites. Due to its northern location, Tindal operates as a strategic Air Force base, protecting
Slide 23: Central Park - Facade Refurbishment
Central Park - Facade Refurbishment Completed in 1992, Central Park has long been recognised as one of Perth’s most iconic buildings for its stature as well as its place within the business community. The building comprises of 51 levels with breathtaking views – stretching from Perth’s world-famous
Slide 24: Western Sydney International Airport - Fuel Hydrant Main
Western Sydney International Airport - Fuel Hydrant Main Western Sydney International (Nancy-Bird Walton) Airport further fuels Duratec’s growth in the energy sector Works are underway at Sydney’s new airport, which is due to open in 2026. Duratec’s delivery of fuel transformation infrastructure to